S.F. _____ H.F. _____ Section 1. Section 7A.4, Code 2016, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 5. Superintendent of credit unions. 3 Sec. 2. Section 533.113, subsection 1, paragraph d, Code 4 2016, is amended to read as follows: 5 d. Make or cause to be made an examination of any person 6 having business transactions or a relationship with any state 7 credit union , upon application to and order of the district 8 court of Polk county, when such examination is deemed necessary 9 and advisable in order to determine whether the capital of 10 the state credit union is impaired or whether the safety of 11 its deposits , its financial information or accounts, or its 12 computer systems or computer networks, is imperiled. 13 Sec. 3. Section 533.114, subsection 2, paragraphs b and c, 14 Code 2016, are amended to read as follows: 15 b. A summary of the assets, liabilities, and capital 16 structures of all state credit unions , and a summary of the 17 volume of consumer installment credit outstanding per state 18 credit union, as of December 31 of the year for which the 19 report is made. 20 c. A statement of the receipts and disbursements of funds 21 of the superintendent during the calendar fiscal year ending 22 on the preceding December 31 June 30 of the year for which the 23 report is made and of the funds on hand on that December 31, 24 including an estimate of the disbursements of credit union 25 division funds for consumer credit protection during the year 26 for which the report is made June 30 . 27 Sec. 4. NEW SECTION . 533.115A Conducting business outside 28 of state. 29 If a state credit union has an office and conducts business 30 in another state having laws or regulations allowing credit 31 unions to exercise additional powers, the state credit union 32 may request permission from the superintendent to exercise such 33 additional powers while operating in the other state with only 34 the resident members of that other state. 35 -1- LSB 5187DP (4) 86 gh/rj 1/ 5

S.F. _____ H.F. _____ Sec. 5. NEW SECTION . 533.201A Change in place of business. 1 1. A state credit union shall notify the superintendent 2 of any change in its principal place of business within ten 3 days of the change. A state credit union shall also file an 4 application to relocate an office as provided by rule. 5 2. A state credit union changing its principal place of 6 business shall review and amend its articles of incorporation, 7 if necessary. 8 Sec. 6. Section 533.205, Code 2016, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 9. Penalties. The superintendent may 11 impose a penalty, after notice in writing and opportunity for 12 a hearing, for a violation of this section. If a state credit 13 union fails to satisfactorily resolve the matter within sixty 14 days from receipt of such notice, the superintendent may impose 15 a penalty against the state credit union in an amount not to 16 exceed one hundred dollars per day per violation for each day 17 that the violation remains unresolved. 18 Sec. 7. Section 533.301, subsection 25, Code 2016, is 19 amended to read as follows: 20 25. Engage in any activity authorized by the superintendent 21 which would be permitted if the state credit union were 22 federally chartered and which is consistent with state law . 23 Sec. 8. NEW SECTION . 533.331 Data breach —— duty to notify. 24 1. In accordance with 12 C.F.R. pt. 748, Appendix B, a state 25 credit union shall maintain an information security response 26 program that includes procedures for notifying the credit union 27 division as soon as possible after the credit union becomes 28 aware of an incident involving unauthorized access to or use of 29 sensitive member information that would permit access to the 30 member’s account, as further detailed in 12 C.F.R. pt. 748. 31 2. State credit unions that experience an information 32 security breach may be subject to chapter 715C. 33 Sec. 9. Section 533.401, subsection 1, Code 2016, is amended 34 to read as follows: 35 -2- LSB 5187DP (4) 86 gh/rj 2/ 5

S.F. _____ H.F. _____ 1. With the approval of the superintendent and the national 1 credit union administration , a state credit union may merge 2 with another credit union under the existing certificate of 3 approval of the other credit union if the merger is pursuant 4 to a plan agreed upon by a majority of the board of directors 5 of each credit union joining in the merger and the merger 6 is approved by the affirmative vote of a majority of the 7 members of the merging credit union according to the provisions 8 of section 533.203 . At least twenty days’ notice shall be 9 provided between the sending of notice and the scheduled 10 conclusion of the vote. 11 Sec. 10. REPEAL. Sections 533.327 and 533.328, Code 2016, 12 are repealed. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill modifies several provisions that relate to the 17 credit union division. 18 The bill amends Code section 7A.4 by adding the 19 superintendent of credit unions to the list of officials 20 required to submit an annual report to the governor. 21 The bill amends Code section 533.113(1) by eliminating the 22 need for the superintendent to apply to and seek an order from 23 the district court of Polk county in order to examine any 24 person having business transactions or a relationship with any 25 state credit union when capital is impaired or deposit safety 26 is at issue. The bill also adds the safety of a credit union’s 27 financial information or accounts, and computer systems or 28 computer networks, as grounds for such an examination. 29 The bill amends Code section 533.114(2)(b) by eliminating 30 the need for the superintendent to include a summary of the 31 volume of consumer installment credit outstanding per state 32 credit union in the superintendent’s annual report. 33 The bill amends Code section 533.114(2)(c) by changing 34 the date that the superintendent is required to provide a 35 -3- LSB 5187DP (4) 86 gh/rj 3/ 5

S.F. _____ H.F. _____ statement of the receipts and disbursements of funds of the 1 superintendent and of the remaining funds on hand, to the end 2 of the fiscal year. 3 The bill creates new Code section 533.115A to require credit 4 unions that operate in another state which has laws that give 5 credit unions additional powers to request permission from 6 the superintendent to exercise those additional powers while 7 operating in the other state with only the resident members of 8 that other state. 9 The bill creates new Code section 533.201A to require a state 10 credit union to notify the superintendent of any change to 11 its principal place of business and to file an application to 12 relocate an office as provided by rule. The bill also provides 13 that a credit union shall review and amend its articles of 14 incorporation after such a change if necessary. 15 The bill amends Code section 533.205 authorizing penalties 16 for any violation of that Code section, which pertains to 17 the duties of the board of directors of a credit union. The 18 superintendent may impose a penalty of not more than $100 19 per day per violation for each day that the violation is 20 unresolved, after notice and an opportunity for a hearing and a 21 60-day period for resolving the violation. 22 The bill amends Code section 533.301(25), which relates to 23 the power of a state credit union to engage in any activity 24 which would be permitted if the state credit union was 25 federally chartered, by eliminating the requirement that the 26 federally chartered activity must be consistent with state law. 27 The bill creates new Code section 533.331 to specify that 28 a state credit union shall maintain an information security 29 response program, including notification procedures, in the 30 event of a data breach and in accordance with federal law. 31 The bill also states that state credit unions that experience 32 a security breach may be subject to the provisions of Code 33 chapter 715C, which relates to criminal penalties for personal 34 information security breach protection. 35 -4- LSB 5187DP (4) 86 gh/rj 4/ 5

S.F. _____ H.F. _____ The bill amends Code section 533.401(1) to require the 1 approval of the national credit union administration, in 2 addition to the superintendent, for a state credit union to 3 merge with a federal or another state’s credit union. 4 The bill repeals Code section 533.327, regarding a change 5 in a credit union’s place of business. The language from 6 this section is modified and incorporated into new Code 7 section 533.201A. The bill also repeals Code section 533.328, 8 regarding credit unions conducting business outside of the 9 state. The language from this section is incorporated into new 10 Code section 533.115A. 11 -5- LSB 5187DP (4) 86 gh/rj 5/ 5