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HSB 95

A bill for an act relating to requirements for, and regular meetings of, the board of directors of a state bank.

2025-2026 Regular Session

HSB 95 mandates Iowa state banks to have at least five directors, with three being local residents, and requires nine annual meetings to enhance governance and accountability.

Committee report approving bill, renumbered as HF 311.
#banks #financialinstitutions #meetings
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Bill Summary · HSB 95

Summary of HSB 95 (Renumbered as HF 311)

Purpose and Intent

HSB 95 is a proposed legislative bill aimed at updating the requirements for the board of directors of state banks in Iowa. The bill seeks to ensure that the governance of state banks is conducted effectively by establishing clear guidelines for board composition and meeting frequency.

Key Provisions

The bill introduces the following significant changes to the existing law:

  1. Board Composition:

    • The board of directors must consist of five or more directors who are 18 years of age or older.
    • At least three directors must be residents of Iowa and citizens of the United States.

  2. Meeting Requirements:

    • The board is required to hold at least nine regular meetings each calendar year.
    • No more than one regular meeting may occur in any single calendar month.
    • At least one meeting must be held in each quarter of the calendar year.
    • Directors may participate in meetings through remote communication, allowing them to be considered present even if not physically in attendance.

Affected Parties

This bill primarily affects:
- State Banks operating in Iowa, which will need to adjust their governance practices to comply with the new requirements.
- Board Members of state banks, who will need to ensure they meet the residency and citizenship criteria.
- Regulatory Bodies overseeing state banks, as they will need to enforce the updated meeting and composition requirements.

Legislative Timeline

  • Introduced: January 28, 2025
  • Referred to Commerce: January 28, 2025
  • Subcommittee Meeting: January 29, 2025
  • Subcommittee Recommendation: February 3, 2025
  • Committee Vote: February 6, 2025 (22 Yeas, 1 Nay, 2 Excused)
  • Committee Report Approving Bill: February 10, 2025 (Renumbered as HF 311)

Conclusion

HSB 95 aims to enhance the governance of state banks in Iowa by establishing clear requirements for board composition and meeting frequency. By ensuring that a majority of board members are residents and citizens, the bill seeks to promote local oversight and accountability in the banking sector. The requirement for regular meetings and the allowance for remote participation are intended to facilitate better communication and decision-making within the boards.

Compiled from official sources — confirm details with the bill’s official record.

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