House File 442 HOUSE FILE BY FORD Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to trust services provided by a credit union 2 service organization. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2831HH 80 5 rh/pj/5 PAG LIN 1 1 Section 1. NEW SECTION. 533.50 CREDIT UNION SERVICE 1 2 ORGANIZATION == TRUST SERVICES. 1 3 An organization, corporation, or association, the 1 4 membership or ownership of which is primarily confined or 1 5 restricted to credit unions or organizations of credit unions, 1 6 and which primarily provides services to credit unions, 1 7 organizations of credit unions, or credit union members, may 1 8 provide trust services and act in a fiduciary capacity as 1 9 approved by, and pursuant to rules adopted by, the 1 10 superintendent. The organization, corporation, or association 1 11 is subject to the state corporate income tax. 1 12 A credit union may participate in or receive trust services 1 13 from a service organization under this section, only if the 1 14 credit union has a policy of making cash or in=kind 1 15 contributions to local nonprofit groups or community 1 16 development projects which serve the needs of the community 1 17 and various population groups within the community in which 1 18 the credit union is located. The superintendent shall adopt 1 19 rules to administer this section. 1 20 This section only applies to trust services offered by 1 21 credit union service organizations. 1 22 EXPLANATION 1 23 This bill provides that an organization, corporation, or 1 24 association, the membership or ownership of which is primarily 1 25 confined or restricted to credit unions or organizations of 1 26 credit unions, and which primarily provides services to credit 1 27 unions, organizations of credit unions, or credit union 1 28 members, may provide trust services and act in a fiduciary 1 29 capacity as approved by, and pursuant to rules adopted by, the 1 30 superintendent. The bill provides that such organization, 1 31 corporation, or association is subject to the state corporate 1 32 income tax. 1 33 The bill further provides that a credit union may 1 34 participate in or receive trust services from a service 1 35 organization only if the credit union has a policy of making 2 1 cash or in=kind contributions to local nonprofit groups or 2 2 community development projects which serve the community and 2 3 various population groups within the community in which the 2 4 credit union is located. 2 5 The bill only applies to trust services offered by credit 2 6 union service organizations. 2 7 LSB 2831HH 80 2 8 rh/pj/5