STATEMENT OF PURPOSE
RS27250C1 / H0473
The purposes of this legislation are to grant authority to the Director to issue enforcement actions directly to a
credit union, provide for confidentiality of examination reports and other confidential information, and authorize
credit unions to act as a custodian or fiduciary for tax-advantaged savings plans. Specifically, amendments
are proposed to (1) reorganize and update provisions relating to examinations and investigation reports, and
to authorize the director to examine and investigate the affairs of a subsidiary of a credit union, credit union
service organization, and third-party service providers, (2) add a new section to provide for the confidentiality of
examination reports and confidential communication, provide for circumstances where disclosing confidential
information is authorized, and imposing penalties violations, (3) authorizes the Director to issue cease and
desist orders and suspension or removal orders directly to a credit union or affected person, and to prohibit
future employment by a credit union, (4) amend provisions authorizing the Director to appoint a receiver and
to outline the powers and duties of a receiver, (5) amend the provision relating to voluntary or involuntary
liquidation of a credit union to remove an outdated reference to the Idaho Credit Union League Stabilization
Fund, (6) amend provision of the act to allow state-chartered credit unions to act as a custodian or fiduciary to the
same extent as a federal credit union for the purpose of offering tax-advantaged savings plans, and (7) add new
sections authorizing the Director to call for a special meeting of the board of directors and to attend meetings
of the board. The proposed amendments relating to enforcement actions will provide for the Department of
Finance to meet national accreditation standards.
FISCAL NOTE
There will be no fiscal impact to the Idaho Department of Finance State Regulatory Fund (FIAA) associated
with this proposed legislation. The provisions of this proposed legislation specifically related to enforcement
powers of state-chartered credit unions will require no additional resources of the Idaho Department of Finance
and will have no impact on the Department of Finance's revenues.
Contact:
Richard Sherrick
Department of Finance
(208) 332-8040
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 02/10/2020, 9:35 AM


Statutes affected:
Bill Text: 26-2136, 26-2140, 26-2140A, 26-2140B, 26-2141, 26-2142, 26-2151, 26-2185
Engrossment 1: 26-2136, 26-2140, 26-2140A, 26-2140B, 26-2141, 26-2142, 26-2151, 26-2185