SF 321 — A bill for an act relating to the investment and use of funds in the veterans trust fund. (Formerly SSB 1135.)

Senate File 321 - IntroducedReprinted SENATE FILE 321 BY COMMITTEE ON VETERANS AFFAIRS (SUCCESSOR TO SSB 1135) (As Amended and Passed by the Senate March 10, 2021) A BILL FOR An Act relating to the investment and use of funds in the veterans trust fund.

TLSBSF 1048SV321 (1)(2) 89 dg/rndg/rn/mb S.F.

Section 35A.13,12B.10, subsectionssubsection 16, and 3, Code 2021, areis amended toby readadding asthe follows:following new paragraph:

1.NEW PARAGRAPH .

An. veterans trust fund is created as a separate and distinct fund in the state treasury under the control of the commission.

MoneysInvestments inby the veterans trust fund mayestablished be invested by the treasurer of state in any investments authorized for the Iowa public employees’ retirement system in section 97B.7A.35A.13.

Sec.

2.

Section 12B.10C, subsection 4, Code 2021, is amended by adding the following new paragraph:

NEW PARAGRAPH.

k.

The veterans trust fund established in section 35A.13.

Sec.

Section 35A.13, subsection 3, Code 2021, is amended to read as follows:

3.

EXPLANATIONSec. The inclusion of this explanation does not constitute agreement with the explanation’s substance by the members of the general assembly.

This4. bill concerns the veterans trust fund.

TheSection bill35A.13, authorizesCode the2021, treasureris ofamended stateby toadding invest moneys in the trustfollowing fundnew insubsection: any investments authorized for the Iowa public employees’ retirement system in Code section 97B.7A.

TheNEW billSUBSECTION also. eliminates the ability to use moneys in the veterans trust fund for cash flow purposes in a fiscal year.

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a.

Notwithstanding subsection 4, moneys in the fund, except so much of the fund as may be necessary to be kept on hand for the making of disbursements under this section, shall be invested by the treasurer of state, in consultation with the commission, in any investments authorized for the Iowa public employees’ retirement system in section 97B.7A, including common stock, and subject to the requirements of chapters 12F, 12H, and 12J, and the earnings therefrom shall be credited to the fund.

The treasurer of state may execute contracts and agreements with investment advisors, consultants, and investment management and benefit consultant firms in the administration of investments of moneys SF 321 (2) 89 -1- dg/rn/mb 1/3 S.F.

321 in the fund.

b.

Investment management expenses shall be charged to the investment income of the fund and there is appropriated to the treasurer of state from the investment income of the fund an amount required for the investment management expenses.

c.

For purposes of this subsection, investment management expenses are limited to the following:

(1) Fees for investment advisors, consultants, and investment management and benefit consultant firms hired by the treasurer of state in administering the investments of the fund.

(2) Fees and costs for safekeeping fund assets.

(3) Costs for performance and compliance monitoring, and accounting for fund investments.

(4) Any other costs necessary to prudently invest or protect the assets of the fund.

d.

The commission and the treasurer of state, and their employees, are not personally liable for claims based upon an act or omission of the person performed in the discharge of the person’s duties concerning the veterans trust fund, except for acts or omissions which involve malicious or wanton misconduct.

Sec.

5.

Section 35A.13, subsection 4, Code 2021, is amended by striking the subsection and inserting in lieu thereof the following:

4.

a.

For each fiscal year that the balance of the trust fund on July 1 is below fifty million dollars, the interest and earnings on moneys in the fund and the first five hundred thousand dollars transferred pursuant to section 99G.39 from the lottery fund are appropriated to the commission to be used to achieve the purposes of subsection 6.