Bill Text: IA SSB1099 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to matters under the purview of the credit union division of the department of commerce.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-02-07 - Subcommittee recommends amendment and passage. []. [SSB1099 Detail]
Download: Iowa-2023-SSB1099-Introduced.html
Senate
Study
Bill
1099
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
BROWN)
A
BILL
FOR
An
Act
relating
to
matters
under
the
purview
of
the
credit
1
union
division
of
the
department
of
commerce.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1104XC
(3)
90
es/rn
S.F.
_____
Section
1.
Section
12C.16,
subsection
1,
paragraph
b,
1
subparagraph
(1),
unnumbered
paragraph
1,
Code
2023,
is
amended
2
to
read
as
follows:
3
The
credit
union
may
deposit,
maintain,
pledge
and
assign
4
for
the
benefit
of
the
public
officer
in
the
manner
provided
5
in
this
chapter
,
securities
approved
by
the
public
officer,
6
the
market
value
of
which
is
not
less
than
one
hundred
ten
one
7
hundred
percent
of
the
total
deposits
of
public
funds
placed
8
by
that
public
officer
in
the
credit
union
,
less
the
amount
9
of
deposits
that
are
federally
insured
.
The
securities
shall
10
consist
of
any
of
the
following:
11
Sec.
2.
Section
12C.16,
subsection
1,
paragraph
b,
12
subparagraph
(1),
subparagraph
division
(d),
Code
2023,
is
13
amended
to
read
as
follows:
14
(d)
To
the
extent
of
the
guarantee,
loans,
obligations,
or
15
nontransferable
Nontransferable
letters
of
credit
upon
which
16
the
payment
of
principal
and
interest
is
fully
secured
or
17
guaranteed
by
the
United
States
of
America
,
or
an
agency
or
18
instrumentality
of
the
United
States
of
America,
a
corporate
19
central
credit
union
organized
under
section
533.213
the
20
national
cooperative
bank,
the
federal
home
loan
bank
,
or
a
21
any
corporate
credit
union
whose
activities
are
subject
to
22
regulation
by
the
national
credit
union
administration
,
and
the
23
rating
of
any
one
of
such
credit
unions
remains
within
the
two
24
highest
classifications
of
prime
established
by
at
least
one
25
of
the
standard
rating
services
approved
by
the
superintendent
26
of
banking
by
rule
pursuant
to
chapter
17A
and
whose
capital
27
level
remains
well-capitalized
pursuant
to
12
C.F.R.
pt.
704,
28
or
any
other
entity
approved
by
the
treasurer
of
state
.
The
29
treasurer
of
state
shall
may
adopt
rules
pursuant
to
chapter
30
17A
to
implement
this
section
.
31
Sec.
3.
Section
533.205,
subsection
8,
Code
2023,
is
amended
32
to
read
as
follows:
33
8.
A
credit
union
director
shall
not
receive
compensation
34
for
service
as
a
director.
However,
a
director
may
be
35
-1-
LSB
1104XC
(3)
90
es/rn
1/
5
S.F.
_____
reimbursed
Subject
to
its
bylaws,
a
credit
union
may
provide
1
compensation
to
directors
for
their
service
and
reimburse
2
directors
for
reasonable
expenses
directly
related
to
such
3
service.
4
Sec.
4.
Section
533.206,
Code
2023,
is
amended
to
read
as
5
follows:
6
533.206
Meetings
of
the
board.
7
1.
The
board
of
directors
shall
hold
at
least
six
regular
8
board
meetings
each
calendar
year.
No
more
than
one
regular
9
meeting
shall
be
held
in
any
one
calendar
month,
nor
shall
10
a
credit
union
go
longer
than
two
consecutive
months
without
11
holding
a
board
meeting.
If
a
credit
union
has
an
individual
12
rating
of
a
four
or
five,
or
a
composite
rating
of
three,
four,
13
or
five
under
the
Iowa
regulatory
risk
rating
system,
the
board
14
shall
meet
monthly.
15
2.
With
respect
to
a
newly
chartered
credit
union,
the
board
16
of
directors
shall
meet
not
less
frequently
than
monthly
during
17
each
of
the
first
five
years
of
the
credit
union’s
existence.
18
3.
Unless
the
bylaws
provide
otherwise,
the
board
of
19
directors
may
permit
any
and
all
directors
to
participate
in
20
all
except
one
meeting
per
year
of
the
board
of
directors
21
through
the
use
of
any
means
of
communication
by
which
all
22
directors
participating
in
the
meeting
may
simultaneously
hear
23
each
other
and
communicate
during
the
meeting.
A
director
24
participating
in
a
meeting
by
this
means
is
deemed
to
be
25
present
at
the
meeting.
26
Sec.
5.
Section
533.210,
subsections
1
and
2,
Code
2023,
are
27
amended
to
read
as
follows:
28
1.
The
board
of
directors
may
expel
any
a
member
of
a
state
29
credit
union
who
has
failed
to
do
either
engaged
in
any
of
the
30
following:
31
a.
Carry
Failing
to
carry
out
the
member’s
obligations
to
32
the
state
credit
union.
33
b.
Comply
Failing
to
comply
with
the
state
credit
union’s
34
bylaws
or
policies.
35
-2-
LSB
1104XC
(3)
90
es/rn
2/
5
S.F.
_____
c.
Being
physically
or
verbally
abusive
to
credit
union
1
members
or
staff.
2
d.
Committing
fraud,
attempted
fraud,
or
other
illegal
3
conduct
that
a
member
has
been
convicted
of
in
relation
to
the
4
credit
union.
5
2.
A
member
of
a
state
credit
union
may
be
expelled
by
a
6
majority
vote
of
the
board
of
directors
at
a
regular
or
special
7
meeting
of
the
board.
8
a.
An
expelled
member
may
request
a
hearing
before
the
9
membership
of
the
state
credit
union
superintendent
,
which
10
shall
be
held
within
sixty
ninety
days
of
an
expelled
member’s
11
request.
12
b.
At
the
hearing,
the
membership
superintendent
may
13
reinstate
the
expelled
member
by
majority
vote,
upon
terms
and
14
conditions
prescribed
at
the
hearing
if
the
credit
union
fails
15
to
prove
the
member
was
noncompliant
with
the
obligations
in
16
this
section
.
17
Sec.
6.
Section
533.304,
subsection
2,
Code
2023,
is
amended
18
to
read
as
follows:
19
2.
A
state
credit
union
may
invest
in
either
any
of
the
20
following
to
the
extent
that
the
total
investments
under
this
21
section
shall
not
be
more
than
five
percent
of
the
state
credit
22
union’s
assets:
23
a.
Shares
or
equity
interests
in
venture
capital
funds
that
24
agree
to
invest
an
amount
equal
to
at
least
fifty
percent
of
25
the
state
credit
union’s
investment
in
small
businesses
having
26
their
principal
offices
within
this
state
and
having
either
27
more
than
one-half
of
their
assets
within
this
state
or
more
28
than
one-half
of
their
employees
employed
within
this
state.
29
b.
Shares
or
equity
interests
in
small
businesses
having
30
their
principal
offices
within
this
state
and
having
either
31
more
than
one-half
of
their
assets
within
this
state
or
more
32
than
one-half
of
their
employees
employed
within
this
state.
A
33
state
credit
union
shall
not
invest
in
more
than
twenty
percent
34
of
the
total
capital
and
surplus
of
any
one
small
business
35
-3-
LSB
1104XC
(3)
90
es/rn
3/
5
S.F.
_____
under
this
paragraph.
1
c.
Any
other
investment
instrument
as
authorized
by
the
2
superintendent.
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
This
bill
relates
to
matters
under
the
purview
of
the
credit
7
union
division
of
the
department
of
commerce.
8
The
bill
modifies
the
amount
of
securities
that
a
credit
9
union
may
manage
for
the
benefit
of
a
public
officer
from
110
10
percent
to
100
percent
of
the
total
deposits
of
public
funds,
11
less
the
amount
of
deposits
that
are
federally
insured.
12
The
bill
provides
that
a
public
officer
shall
obtain
13
security
for
a
deposit
in
excess
of
the
amount
federally
14
insured
by
acquiring
a
nontransferable
letter
of
credit
15
from
the
United
States,
an
agency
or
instrumentality
of
the
16
United
States,
a
national
cooperative
bank,
federal
home
loan
17
bank,
any
corporate
credit
union
whose
capital
level
remains
18
well-capitalized,
or
any
other
entity
approved
by
the
treasurer
19
of
the
state.
20
The
bill
modifies
language
to
allow
a
credit
union
director
21
compensation
subject
to
the
bylaws
of
a
credit
union.
Current
22
law
does
not
allow
compensation
to
a
credit
union
director
for
23
service.
24
The
bill
requires
credit
union
boards
to
hold
regular
25
meetings.
A
credit
union
with
an
individual
rating
of
a
four
26
or
five,
or
a
composite
rating
of
three,
four,
or
five
under
27
the
Iowa
regulatory
risk
rating
system
is
required
to
meet
28
monthly.
A
new
credit
union
is
required
to
meet
monthly
for
29
the
first
five
years.
30
The
bill
expands
activity
that
may
constitute
expulsion
from
31
a
credit
union
to
include
failing
to
participate
in
the
affairs
32
of
the
credit
union,
being
physically
abusive
to
a
credit
union
33
member
or
staff,
being
verbally
abusive
to
a
credit
union
34
member
or
staff,
or
committing
fraud,
attempted
fraud,
or
other
35
-4-
LSB
1104XC
(3)
90
es/rn
4/
5
S.F.
_____
illegal
conduct
resulting
in
a
conviction
in
relation
to
the
1
credit
union.
2
The
bill
modifies
the
expulsion
hearing
procedure.
A
member
3
may
request
a
hearing
before
the
credit
union
superintendent,
4
which
shall
occur
90
days
after
the
member’s
request.
The
5
superintendent
of
credit
unions
may
reinstate
the
expelled
6
member
if
the
credit
union
fails
to
prove
the
member
was
7
noncompliant
with
the
requirements
of
Code
section
533.205.
8
Current
law
provides
that
the
membership
of
a
credit
union
may
9
reinstate
an
expelled
member
by
majority
vote
upon
the
terms
10
and
conditions
prescribed
at
the
hearing.
11
The
bill
provides
that
a
credit
union
may
invest
in
12
investment
instruments
as
authorized
by
the
superintendent.
13
-5-
LSB
1104XC
(3)
90
es/rn
5/
5
