Bill Text: IA HSB118 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to state credit union examinations and board meetings called by the superintendent of credit unions, and providing penalties.
Spectrum: Committee Bill
Status: (N/A - Dead) 2017-02-22 - Committee report, recommending passage. H.J. 453. [HSB118 Detail]
Download: Iowa-2017-HSB118-Introduced.html
House
Study
Bill
118
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
COMMERCE/CREDIT
UNION
DIVISION
BILL)
A
BILL
FOR
An
Act
relating
to
state
credit
union
examinations
and
board
1
meetings
called
by
the
superintendent
of
credit
unions,
and
2
providing
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
533.113,
Code
2017,
is
amended
to
read
1
as
follows:
2
533.113
Examinations.
3
1.
The
superintendent
may
do
any
or
all
of
the
following:
4
a.
Make
or
cause
to
be
made
an
examination
of
a
credit
5
union
whenever
the
superintendent
believes
such
examination
is
6
necessary
or
advisable,
but
in
no
event
less
frequently
than
7
once
during
each
twenty-four-month
period.
8
b.
Make
or
cause
to
be
made
such
limited
examinations
at
9
such
times
and
with
such
frequency
as
the
superintendent
deems
10
necessary
and
advisable
to
determine
the
condition
of
any
state
11
credit
union
and
whether
any
person
has
violated
the
provisions
12
of
this
chapter
.
13
c.
Make
or
cause
to
be
made
an
examination
of
any
14
corporation
or
credit
union
service
organization
in
which
a
15
state
credit
union
owns
shares
or
has
made
an
investment.
16
d.
Make
or
cause
to
be
made
an
examination
of
any
person
17
having
business
transactions
or
a
relationship
with
any
18
state
credit
union
when
such
examination
is
deemed
necessary
19
and
advisable
in
order
to
determine
whether
the
capital
of
20
the
state
credit
union
is
impaired
or
whether
the
safety
of
21
its
deposits,
its
financial
information
or
accounts,
or
its
22
computer
systems
or
computer
networks,
is
imperiled.
23
e.
Accept,
in
lieu
of
the
examination
of
a
state
credit
24
union,
or
any
corporation
or
credit
union
service
organization
25
in
which
a
state
credit
union
owns
shares
or
has
made
an
26
investment,
or
of
any
person
having
business
transactions
or
a
27
relationship
with
any
state
credit
union,
an
examination
report
28
prepared
by
a
federal
regulatory
authority.
29
f.
Accept,
in
lieu
of
the
examination
of
a
state
credit
30
union,
an
audit
report
conducted
by
a
certified
public
31
accounting
firm
selected
from
a
list
of
firms
previously
32
approved
by
the
superintendent.
The
cost
of
the
audit
shall
be
33
paid
by
the
state
credit
union.
34
g.
Accept,
in
lieu
of
the
examination
of
an
out-of-state
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credit
union
which
also
conducts
business
in
this
state,
an
1
examination
report
prepared
by
a
state
or
federal
regulatory
2
authority.
3
h.
Retain,
at
the
examinee’s
expense,
accountants,
4
investigators,
and
other
experts
as
reasonably
necessary
to
5
assist
in
the
conduct
of
the
examination.
Any
person
so
6
retained
shall
serve
in
a
purely
advisory
capacity
at
the
7
direction
of
the
superintendent.
8
2.
A
state
credit
union
and
all
of
its
officers
and
agents
9
shall
give
to
the
representatives
of
the
superintendent
free
10
and
unimpeded
access
to
all
books,
papers,
securities,
records,
11
and
other
sources
of
information
under
their
control.
12
3.
a.
A
report
of
examination
shall
be
forwarded
to
the
13
chairperson
of
a
state
credit
union
within
thirty
days
after
14
the
completion
of
the
examination.
Within
thirty
days
of
the
15
receipt
of
this
report,
a
meeting
of
the
directors
shall
be
16
called
by
the
state
credit
union
to
consider
matters
contained
17
in
the
report
and
the
action
taken
shall
be
set
forth
in
the
18
minutes
of
the
board.
19
b.
The
report
of
examination
of
any
affiliate
or
of
any
20
person
examined
as
provided
in
this
subsection
shall
not
be
21
transmitted
by
the
superintendent
to
any
such
affiliate
or
22
person
or
to
the
board
of
directors
of
any
state
credit
union
23
unless
authorized
or
requested
by
such
affiliate
or
person.
24
c.
All
reports
of
examinations,
including
any
copies
of
25
such
reports
in
the
possession
of
any
person
other
than
the
26
superintendent
or
employee
of
the
credit
union
division,
27
including
any
state
credit
union,
agency,
or
institution
28
to
which
any
report
of
such
examination
may
be
furnished
29
under
this
section,
or
section
533.108
or
533.325,
shall
be
30
confidential
communications,
shall
not
be
subject
to
subpoena
31
from
any
person
except
as
provided
in
section
533.108,
32
subsection
2,
paragraph
“b”
,
and
shall
not
be
published,
shared,
33
or
made
public
in
any
way
by
any
person
without
the
written
34
authorization
of
the
credit
union
division
and
the
execution
of
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a
confidentiality
agreement
between
all
of
the
parties
pursuant
1
to
section
533.108,
subsection
1,
paragraph
“d”
.
2
d.
All
reports
of
examinations,
including
any
copies
of
3
such
reports
in
the
possession
of
any
person
other
than
the
4
superintendent
or
employee
of
the
credit
union
division,
shall
5
remain
the
exclusive
property
of
the
credit
union
division.
6
4.
a.
Whenever
the
superintendent
deems
it
necessary
7
and
advisable,
the
superintendent
may
notify
the
board
of
8
directors
of
a
state
credit
union
that
a
meeting
will
be
held
9
at
a
place
and
time
and
manner
as
the
superintendent
directs.
10
The
superintendent’s
notice
may
disclose
the
purpose
of
the
11
meeting.
12
b.
The
superintendent
may
present
to
the
board
at
the
13
meeting
any
item
the
superintendent
desires
to
bring
to
the
14
attention
of
the
board,
including
but
not
limited
to
any
report
15
of
an
examination
required
or
allowed
by
this
chapter
,
any
16
conclusions
or
projections
drawn
by
the
superintendent,
any
17
recommendations
made
relative
to
a
report
of
an
examination,
18
and
any
other
matters
concerning
the
operation
and
condition
of
19
the
state
credit
union.
20
c.
The
state
credit
union
shall
cause
the
matters
presented
21
at
the
meeting
to
be
recorded
in
the
minutes
of
the
meeting.
22
d.
Each
member
of
the
board
of
directors
shall
furnish
23
the
superintendent
a
statement
on
forms
supplied
by
the
24
superintendent
that
the
member
is
familiar
with
the
matters
25
presented
by
the
superintendent.
26
5.
4.
The
superintendent
may
require
any
of
the
following
27
state
credit
unions
to
submit
to
an
additional
examination
28
or
to
an
independent
audit
performed
by
a
certified
public
29
accounting
firm
as
provided
in
subsection
1
,
paragraph
“f”
,
at
30
the
expense
of
the
state
credit
union:
31
a.
A
state
credit
union
where
the
records
are
inadequate.
32
b.
A
state
credit
union
in
which
the
books
have
not
been
33
balanced
as
of
the
end
of
the
month
not
less
than
thirty
days
34
previously.
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c.
A
state
credit
union
whose
affairs
are
in
an
unfavorable
1
condition.
2
6.
5.
The
superintendent
may
furnish
a
copy
of
the
3
examination
report
and
materials
relating
to
any
or
all
4
examinations
made
of
any
state
credit
union
and
any
affiliate
5
of
a
state
credit
union
to
any
or
all
of
the
following,
6
including
any
official
or
supervising
examiner
of
any
office
7
or
regulatory
authority:
8
a.
The
national
credit
union
administration.
9
b.
The
federal
deposit
insurance
corporation.
10
c.
The
federal
reserve
system.
11
d.
The
office
of
the
comptroller
of
the
currency.
12
e.
The
federal
home
loan
bank.
13
f.
Financial
institution
regulatory
authorities
of
other
14
states.
15
g.
The
financial
crimes
enforcement
network
of
the
United
16
States
department
of
the
treasury.
17
7.
If
the
superintendent
concludes
that
a
state
18
credit
union’s
affairs
are
in
an
unfavorable
condition,
19
the
superintendent
may
direct
the
state
credit
union
to
20
consider
consolidation,
dissolution,
or
any
other
form
of
21
reorganization.
22
6.
The
superintendent
may
impose
a
penalty,
after
notice
23
in
writing
and
opportunity
for
a
hearing,
for
a
violation
of
24
this
section.
If
a
state
credit
union
fails
to
satisfactorily
25
resolve
the
matter
within
sixty
days
from
receipt
of
such
26
notice,
the
superintendent
may
impose
a
penalty
against
the
27
state
credit
union
in
an
amount
not
to
exceed
one
hundred
28
dollars
per
day
per
violation
for
each
day
that
the
violation
29
remains
unresolved.
30
Sec.
2.
NEW
SECTION
.
533.113A
Meetings
of
the
board
called
31
by
superintendent.
32
1.
Whenever
the
superintendent
deems
it
necessary
and
33
advisable,
the
superintendent
may
notify
the
board
of
directors
34
of
a
state
credit
union
that
a
meeting
will
be
held
at
a
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place
and
time
and
manner
as
the
superintendent
directs.
1
The
superintendent’s
notice
may
disclose
the
purpose
of
the
2
meeting.
3
2.
The
superintendent
may
present
to
the
board
at
the
4
meeting
any
item
the
superintendent
desires
to
bring
to
the
5
attention
of
the
board,
including
but
not
limited
to
any
report
6
of
an
examination
required
or
allowed
by
this
chapter,
any
7
conclusions
or
projections
drawn
by
the
superintendent,
any
8
recommendations
made
relative
to
a
report
of
an
examination,
9
and
any
other
matters
concerning
the
operation
and
condition
of
10
the
state
credit
union.
11
3.
Each
member
of
a
board
of
directors
required
to
hold
a
12
meeting
with
the
superintendent
pursuant
to
this
section
shall
13
furnish
a
statement
to
the
superintendent,
on
forms
supplied
by
14
the
superintendent,
that
the
member
acknowledges
the
matters
15
presented
by
the
superintendent.
16
4.
A
state
credit
union
required
to
hold
a
meeting
with
the
17
superintendent
pursuant
to
this
section
shall
cause
the
matters
18
presented
at
such
meeting
to
be
recorded
in
the
minutes
of
the
19
meeting.
20
5.
If
the
superintendent
concludes
that
a
state
21
credit
union’s
affairs
are
in
an
unfavorable
condition,
22
the
superintendent
may
direct
the
state
credit
union
to
23
consider
consolidation,
dissolution,
or
any
other
form
of
24
reorganization.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
state
credit
union
examinations
and
29
board
meetings
called
by
the
superintendent.
30
The
bill
modifies
Code
section
533.113,
relating
to
the
31
examinations
of
state
credit
unions,
by
providing
that
the
32
reports
of
examinations,
including
any
copies
furnished
to
any
33
person
outside
of
the
credit
union
division,
are
confidential
34
communications,
are
not
subject
to
subpoena,
are
not
to
be
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published
or
made
public
by
any
person
without
the
credit
1
union
division’s
written
authorization
and
the
execution
of
a
2
confidentiality
agreement
between
all
of
the
parties,
and
are
3
the
exclusive
possession
of
the
credit
union
division.
The
4
bill
authorizes
penalties
for
any
violation
of
Code
section
5
533.113.
The
superintendent
may
impose
a
penalty
of
not
more
6
than
$100
per
day
per
violation
for
each
day
that
the
violation
7
is
unresolved,
after
notice
and
an
opportunity
for
a
hearing
8
and
a
60-day
period
for
resolving
the
violation.
9
The
bill
deletes
Code
section
533.113(4),
allowing
the
10
superintendent
to
call
a
meeting
of
the
board
of
directors
of
11
a
state
credit
union,
and
Code
section
533.113(7),
allowing
12
the
superintendent
to
direct
a
state
credit
union
to
consider
13
consolidation,
dissolution,
or
any
other
form
of
reorganization
14
if
the
superintendent
concludes
that
its
affairs
are
in
an
15
unfavorable
condition.
However,
the
language
from
these
16
sections
is
incorporated
into
new
Code
section
533.113A.
17
In
addition,
the
bill
requires
each
member
of
a
board
of
18
directors
required
to
hold
a
meeting
with
the
superintendent
19
under
new
Code
section
533.113A
to
furnish
a
statement
to
20
the
superintendent
that
the
member
acknowledges
the
matters
21
presented
at
the
meeting.
The
matters
presented
at
such
22
meeting
must
also
be
recorded
in
the
meeting
minutes.
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