HF 356 (LSB 1200HV (1) 88)

HOUSE FILE 356

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO HSB 106)

A BILL FOR

An Act relating to procedural requirements for the merger of state credit unions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 533.401, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  Prior to the sending of notice of balloting for the membership vote on a merger, a merging credit union shall submit to the superintendent all materials to be included in the notice at least fifteen days before the notice is sent to the members. The superintendent shall review and approve the materials to be included in the notice at least ten days before the notice is sent to the members. The superintendent may direct any materials to be included in the notice of balloting sent to members.
    Sec. 2.  Section 533.401, subsection 3, Code 2019, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0a.  All materials included in the notice of balloting for the membership vote on the merger were reviewed and approved by the superintendent pursuant to subsection 1A.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Current law provides that a state credit union may merge with another credit union if the merger is pursuant to a plan agreed upon by a majority of the board of directors of each credit union joining in the merger and the merger is approved by a majority vote of the members of the merging credit union. A merging credit union must provide notice of balloting for the vote to the members of the merging credit union entitled to vote on the merger at least 20 days prior to the scheduled vote.
   This bill provides that prior to the sending of notice of balloting for the membership vote on a merger, a merging credit union shall submit to the superintendent of credit unions all materials included in the notice at least 15 days before the notice is sent to the members. The superintendent shall review and approve the materials to be included in the notice at least 10 days before the notice is sent to the members. The superintendent may direct any materials to be included in the notice. The bill provides that the superintendent must review and approve all materials included in the notice as provided in the bill, along with other procedural requirements set forth in Code section 533.401(3), in order to approve a merger.