A bill for an act relating to eligibility requirements for financial institutions in which public funds may be deposited.

SSB 1061 repeals Iowa Code section 12C.6A, which previously required financial institutions holding public funds to demonstrate local community commitment and mandated the treasurer of state to maintain an eligibility list. The bill removes requirements for institutions to submit annual reports, host public comment sessions, or prove local service commitment to qualify for public deposits. It also eliminates the process for challenging an institution's eligibility on these grounds. This change allows public funds to be deposited in any federally insured bank or savings association, regardless of location, without the prior community-focused eligibility checks. The bill directly affects state and local government entities that deposit public funds into financial institutions.