Bill banning credit unions from buying banks eligible for Senate debate
Legislation that prohibits a credit union from purchasing an Iowa-chartered bank passed out of the Senate Commerce Committee last week and is now eligible for debate by the full Senate. CBI urges members to contact their Senator and urge them to support SF 530 when it comes up for debate.
The need for this legislation was brought about when Green State Credit Union purchased First American Bank in Fort Dodge in 2019 and completed the transaction without receiving the required approval from the Iowa Division of Banking (IDOB). CBI’s Board affirmed its support for this legislation at its January Board meeting, and CBI testified in favor of the legislation in a Senate subcommittee meeting on the bill. While prohibiting the purchase of a bank by a credit union, SF 530 would still allow for the sale or transfer of participations or real property assets.
The Senate version of legislation to create a central filing system relating to security interests in farm products was previously approved in Senate State Government Committee and is now SF 486. This bill has now been referred to the Senate Ways and Means Committee since it contains a fee for filings, which makes it eligible for action until the end of the session. CBI supports this legislation and urges members to contact their Senator and ask them to support SF 486.
The rewrite of much of the Division of Banking’s code section was introduced last week and quickly passed in Senate Commerce Committee. SF 566 has now been referred to the Senate Appropriations Committee, which makes it eligible for further action until the end of the session. CBI had input throughout the IDOB’s process to develop this legislation, and we support this modernization of the Iowa banking code.
Status of Legislative Session
We are now at the end of the 9th week of the legislative session, and getting closer to an April adjournment for the year. Majority Republicans have moved swiftly to pass priority legislation, including election reforms, mandates for schools to offer in-person learning, and efforts to expand access to child care. With a tentative adjournment date of April 30, lawmakers could decide to end the session earlier after passing next year’s budget. The Revenue Estimating Conference’s meeting next week will serve as a starting gun for work on the budget. Still on the agenda for this session are an array of potential tax relief bills pending in both chambers, as well as approving new election maps as part of the redistricting process.