A bill for an act relating to interest on state moneys invested in depository time certificates of deposit.

This bill changes the minimum interest rate for Iowa state funds invested in bank certificates of deposit (CDs). It requires these investments to earn interest at no less than half the federal funds rate published by the Federal Reserve Bank of New York, replacing the current system where the state treasurer sets the minimum rate. The policy directly affects how state money is invested in CDs by state agencies and other public bodies. This ensures state funds earn a rate tied to a national benchmark, rather than a rate set by the treasurer.