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H 181

CREDIT UNIONS – Amends existing law to provide that a credit union shall deliver articles of incorporation to the Secretary of State.

68th Legislature, 1st Regular Session (2025)

Credit unions must file endorsed articles of incorporation with the Idaho Secretary of State for filing, centralizing charter records and fees, effective July 1, 2025.

Reported Signed by Governor on March 19, 2025 Session Law Chapter 108 Effective: 07/01/2025
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Bill Summary · H 181

Summary: Idaho House Bill 181 (H 181) – CREDIT UNIONS

Overview

  • Bill number & title: H 181, "Credit Unions – Amends existing law to provide that a credit union shall deliver articles of incorporation to the Secretary of State."
  • Purpose: Clarifies and standardizes the filing process for credit unions by requiring delivery of the articles of incorporation to the Idaho Secretary of State (SOS) in addition to existing steps.
  • Status and timing: Reported and signed by the Governor on March 19, 2025. Enacted as Session Law Chapter 108. Effective July 1, 2025 (emergency provision).
  • Introduced: February 10, 2025.

What the bill does (Key Provisions)

  • Amendment to 26-2105 Idaho Code (Organization):

    • Credit union organizers (seven or more Idaho residents with a common bond) must:
    • File an application and execute articles of incorporation (name with “credit union,” perpetual term, par value of shares at least $5, names/addresses of subscribers and shares subscribed).
    • Adopt bylaws.
    • Forward the application materials (including the articles of incorporation and bylaws) to the director.
    • Delivery to SOS added: The credit union shall deliver one copy of the endorsed articles of incorporation (together with any required filing fee) to the Secretary of State for filing.
    • Other existing steps remain:
    • The director endorses the articles, returns copies to applicants for filing at the county recorder and with the department of finance.
    • The director may investigate the application to determine fitness under statutory objectives; approval or denial based on these rules.
    • If approved, the director issues three original charters; the department of finance retains one original copy of the articles and bylaws, and the other copies go to the county recorder and for the credit union’s files.
    • The director’s authority and the requirement to prepare standard forms for articles of incorporation and bylaws remain in place.

  • Emergency/Effective Date: The act contains an emergency clause, making it effective on July 1, 2025.

Fiscal and Administrative Impact

  • Fiscal note: Positive de minimis impact to the state from new SOS registration income (filing fees).
  • Administratively: Idaho credit unions must register with the Secretary of State and file both original and amended articles of incorporation with SOS and pay the applicable filing fees, in addition to existing filing requirements.

Who Is Affected

  • Primary entities: Idaho credit unions governed by the Idaho Credit Union Act (Chapter 26, Title 26).
  • Affected parties: Credit union organizers and existing credit unions, as well as the Idaho Secretary of State (new filing activity) and the Department of Finance (retains original copies as part of its records).

Practical Implications

  • Brings consistency to the chartering process by adding SOS filing as a formal step.
  • Minor administrative burden and cost to credit unions (filing fees) offset by official, centralized filing with SOS.
  • Potentially increases transparency and accessibility of charter documents through SOS records.

Procedural Timeline (Legislative History Snapshot)

  • Introduced: Feb 10, 2025
  • Passed House: Feb–Mar 2025 (various readings; 64-0-6 vote noted in Feb 24 step)
  • Passed Senate: Mid-March 2025 (confirmed; enrolled)
  • Signed by Governor: March 19, 2025
  • Effective date: July 1, 2025 (emergency)

This summary presents the bill’s substantive changes, affected parties, and practical effects for readers seeking a clear understanding of H 181.

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

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