Iowa House Bill HSB35

Iowa 2023-2024 Regular Session

• Introduced: 1/17/23
• Refer: 1/17/23

Caption

A bill for an act relating to matters under the purview of the credit union division of the department of commerce.(See HF 131.)

Impact

In terms of governance, the bill modifies regulations regarding the board of directors of credit unions, allowing for the compensation of directors as per the credit union's bylaws, in contrast to current law which prohibits compensation. Additionally, it mandates credit unions to hold regular meetings, ensuring boards meet at least six times a year, with increased frequency based on performance ratings. This change aims to enhance accountability and allow for more structured oversight within credit unions.

Summary

House Study Bill 35 focuses on updating regulations pertaining to the credit union division of the Iowa Department of Commerce. The bill proposes changes to how credit unions manage public funds, specifically adjusting the requirement for securities management from 110% to 100% of total deposits that are not federally insured. This aims to clarify the expectations for credit unions in securing deposits that exceed federally insured amounts, potentially making it easier for public officers to manage these funds effectively.

Contention

Another notable aspect of HSB35 is its expansion of grounds for expulsion of credit union members. New provisions include failure to participate in credit union affairs and committing abusive acts towards members or staff. The bill also modifies the expulsion hearing process, allowing expelled members the right to appeal their expulsion to the superintendent of credit unions, which introduces an additional layer of due process not previously emphasized in Iowa law. These changes have sparked discussions regarding the balance between maintaining order within credit unions and ensuring fair treatment of members.