AB1032: Bill Text

AB1032,4,2 186.07 (7) Vacancies. Within 60 90 days after the date of a removal vacancy on the board of directors, the board of directors shall appoint a director to fill the vacancy. The appointee shall serve until a successor is elected at the next annual membership meeting.

AB1032,2 Section 2. 186.098 (1) of the statutes is amended to read:

AB1032,4,8 186.098 (1) Loan approval. The credit union may make loans to members upon terms approved by the credit committee, loan officer, or board of directors. The credit union may also permit a nonmember to participate in an obligation or extension of credit to a member as a joint applicant, co-obligor, cosigner, co-borrower, surety, or guarantor.

AB1032,3 Section 3. 186.11 (2) of the statutes is renumbered 186.11 (2) (a) and amended to read:

AB1032,4,12 186.11 (2) (a) A Subject to pars. (b) and (c), a credit union may purchase, hold, and dispose of property as necessary for or incidental to its operations.

AB1032,4 Section 4. 186.11 (2) (b) and (c) of the statutes are created to read:

AB1032,4,15 186.11 (2) (b) Subject to guidance issued by the office of credit unions, a credit union may purchase, lease, hold, and convey the following types of real estate:

AB1032,4,17 1. Real estate conveyed to the credit union in satisfaction of debts previously contracted in the course of the credit union's business.

AB1032,4,20 2. Real estate purchased at sale on judgments, decrees, or mortgage foreclosures under securities held by the credit union, but a credit union may not bid at a sale a larger amount than is necessary to satisfy its debts and costs.

AB1032,4,22 3. Subject to the approval of the office of credit unions, real estate acquired or held by the credit union for any other purpose.

AB1032,4,24 (c) Real estate acquired under par. (b) may not be held for more than 5 years, unless an extension is granted by the office of credit unions.

AB1032,5 Section 5. 186.113 (15) (a) of the statutes is amended to read:

AB1032,5,18 186.113 (15) (a) Directly or indirectly, acquire, place, and operate, or participate in the acquisition, placement, and operation of, at locations other than its offices, remote terminals, in accordance with rules established by the office of credit unions. The rules shall provide that any remote terminal shall be available for use, on a nondiscriminatory basis, by any state or federal credit union which has its principal place of business in this state, by any other credit union obtaining the consent of a state or federal credit union which has its principal place of business in this state and is using the terminal and by all members designated by a credit union using the terminal. This subsection does not authorize a credit union which has its principal place of business outside the state to conduct business as a credit union in this state. The remote terminals also shall be available for use, on a nondiscriminatory basis, by any state or national bank, state or federal savings bank or state or federal savings and loan association, whose home office is located in this state, if the bank, savings bank or savings and loan association requests to share its use, subject to the joint rules established under s. 221.0303 (2). The office of credit unions by order may authorize the installation and operation of a remote terminal in a mobile facility, after notice and hearing upon the proposed service stops of the mobile facility.

AB1032,6 Section 6 . 186.113 (26) of the statutes is created to read:

AB1032,5,22 186.113 (26) Supplemental capital. Issue or otherwise offer supplemental forms of capital in such form and with such conditions as are approved by the office of credit unions.

AB1032,7 Section 7. 186.115 (2) of the statutes is amended to read:

AB1032,6,6 186.115 (2) Rules Guidance. The activities, powers, products , and services that may be undertaken, exercised, or offered by credit unions under sub. (1) are limited to those specified by rule of guidance issued by the office of credit unions. The office of credit unions may direct any credit union to cease any activity, the exercise of any power, or the offering of any product or service authorized by rule this guidance. Among the factors that the office of credit unions may consider in so directing a credit union are the credit union's net worth, assets, management rating and liquidity ratio and its ratio of net worth to assets.

AB1032,8 Section 8 . 186.118 (1) of the statutes is amended to read:

AB1032,6,11 186.118 (1) In addition to any activity or power authorized under ss. 186.098, 186.11, 186.113, 186.114, and 186.115, and 186.235 (21), a credit union organized under s. 186.02 may engage in any activity or exercise any power that is listed by the office of credit unions under sub. (2) (a) or, (3) (b) 1., or (3m) (b) 1.

AB1032,9 Section 9 . 186.118 (3) (a) (intro.) of the statutes is amended to read:

AB1032,6,20 186.118 (3) (a) (intro.) After April 18, 2014, and before the effective date of this paragraph .... [LRB inserts date], if any activity or power incidental to the business of a credit union that is not listed under sub. (2) (a) becomes authorized for federally chartered credit unions, within 30 days after the activity or power becomes authorized the office of credit unions shall make a determination as to whether the activity or power should also be authorized for credit unions organized under s. 186.02. In making this determination, the office of credit unions shall consider the degree to which the following apply with respect to the activity or power:

AB1032,10 Section 10 . 186.118 (3m) of the statutes is created to read:

AB1032,7,5 186.118 (3m) (a) On or after the effective date of this paragraph .... [LRB inserts date], if any activity or power incidental to the business of a credit union that is not listed under sub. (2) (a) or (3) (b) 1. becomes authorized for federally chartered credit unions, 30 days after the activity or power becomes authorized the activity or power shall also be authorized for credit unions organized under s. 186.02 unless otherwise noted by general order of the office of credit unions within this 30-day period. In making the determination whether to issue such a general order, the office of credit unions shall consider the degree to which the following apply with respect to the activity or power:

AB1032,7,7 1. It is necessary, convenient, or useful for effectively carrying out the mission or business of a credit union.

AB1032,7,9 2. It is the functional equivalent or logical outgrowth of activities or powers that are part of the mission or business of a credit union.

AB1032,7,12 3. It involves risks similar in nature to those already assumed as part of the business of the credit union and it is not likely to be detrimental to the overall safety and soundness of the credit union.

AB1032,7,16 (b) 1. The office of credit unions shall promulgate a rule adding an activity or power to the list of activities and powers established under subs. (2) (a) and (3) (b) 1. unless the office of credit unions has issued a general order otherwise as provided in par. (a).

AB1032,7,20 2. The office of credit unions shall submit the proposed rule under subd. 1. to the legislative reference bureau in an electronic format approved by the legislative reference bureau, and the legislative reference bureau shall publish the proposed rule in the notice section of the Wisconsin administrative register under s. 35.93.

AB1032,8,2 3. Sections 227.114 (4) and (6), 227.115, 227.135, 227.137, 227.14 (2) (a) 6., (2g), (4), and (4m), 227.15, 227.16, 227.17, 227.18, 227.185, 227.19, and 227.30 do not apply to the office of credit unions in promulgating a rule under subd. 1. or to any rule promulgated by the office of credit unions under subd. 1. Guidelines prescribed by executive order of the governor do not apply to the office of credit unions in promulgating a rule under subd. 1.

AB1032,11 Section 11 . 186.118 (4) of the statutes is amended to read:

AB1032,8,6 186.118 (4) The office of credit unions shall publish and maintain on the department of financial institutions' Internet site the list of activities and powers under sub. subs. (2) (a) , (3) (b) 1., and (3m) (b) 1.

AB1032,12 Section 12 . 186.118 (5) of the statutes is amended to read:

AB1032,8,11 186.118 (5) If the office of credit unions promulgates a rule listing an activity or power as provided in sub. (2) (a) or, (3) (b) 1., or (3m) (b) 1., subs. (2) (b) and (c) and, (3) (b) 2. and 3., and (3m) (b) 2. and 3. do not apply to any subsequent rule modifying or eliminating the listed activity or power.

AB1032,13 Section 13. 186.235 (14) (c) of the statutes is amended to read:

AB1032,8,20 186.235 (14) (c) In addition to the annual assessment, each credit union shall be charged for the cost of every examination made. The examination charge shall include the prorated amount of salaries and expenses of all examiners and other employees actively engaged in the examination, the salaries and expenses of any other person whose services are required in connection with the examination and any examination report and any other expenses which may be directly attributable to the examination. The examination charge shall be paid on within 30 days of the day on which the examination is completed.

AB1032,14 Section 14. 186.235 (21) of the statutes is repealed.

AB1032,15 Section 15. 214.04 (21) (b) of the statutes is amended to read:

AB1032,9,12 214.04 (21) (b) The rules of the division shall provide that any remote service unit shall be available for use, on a nondiscriminatory basis, by any state or federal savings bank which has its principal place of business in this state, by any other state or federal savings bank obtaining the consent of a state or federal savings bank that has its principal place of business in this state and is using the terminal and by all customers designated by a savings bank using the unit. This paragraph does not authorize a savings bank which has its principal place of business outside this state to conduct business as a savings bank in this state. A remote service unit shall be available for use, on a nondiscriminatory basis, by any credit union, state or national bank or state or federal savings and loan association, whose home office is located in this state, if the credit union, bank or savings and loan association requests to share its use, subject to joint rules established by the division of banking, the office of credit unions and the division. The division by order may authorize the installation and operation of a remote service unit in a mobile facility, after notice and hearing upon the proposed service stops of the mobile facility.

AB1032,16 Section 16. 215.13 (46) (a) 1. of the statutes is amended to read:

AB1032,9,25 215.13 (46) (a) 1. Directly or indirectly, acquire, place, and operate, or participate in the acquisition, placement, and operation of, at locations other than its home or branch offices, remote service units, in accordance with rules established by the division. Remote service units established in accordance with such rules are not subject to sub. (36), (39), (40) or (47) or s. 215.03 (8). The rules of the division shall provide that any such remote service unit shall be available for use, on a nondiscriminatory basis, by any state or federal savings and loan association which has its principal place of business in this state, by any other savings and loan association obtaining the consent of a state or federal savings and loan association which has its principal place of business in this state and is using the terminal and by all customers designated by a savings and loan association using the unit. This paragraph does not authorize a savings and loan association which has its principal place of business outside this state to conduct business as a savings and loan association in this state. The remote service units also shall be available for use, on a nondiscriminatory basis, by any credit union, state or national bank or state or federal savings bank, whose home office is located in this state, if the credit union, bank or savings bank requests to share its use, subject to the joint rules established under s. 221.0303 (2). The division by order may authorize the installation and operation of a remote service unit in a mobile facility, after notice and hearing upon the proposed service stops of the mobile facility.

AB1032,17 Section 17. 221.0303 (2) of the statutes is amended to read:

AB1032,11,2 221.0303 (2) Operation and acquisition of customer bank communications terminals. A bank may, directly or indirectly, acquire, place, and operate, or participate in the acquisition, placement, and operation of, at locations other than its main or branch offices, customer bank communications terminals, in accordance with rules established by the division. The rules of the division shall provide that any such customer bank communications terminal shall be available for use, on a nondiscriminatory basis, by any state or national bank and by all customers designated by a bank using the terminal. This subsection does not authorize a bank which has its principal place of business outside this state to conduct banking business in this state. The customer bank communications terminals also shall be available for use, on a nondiscriminatory basis, by any credit union, savings and loan association, or savings bank, if the credit union, savings and loan association, or savings bank requests to share its use, subject to rules jointly established by the division of banking and the office of credit unions. The division by order may authorize the installation and operation of a customer bank communications terminal in a mobile facility, after notice and hearing upon the proposed service stops of the mobile facility.

AB1032,18 Section 18 . 227.01 (13) (yu) of the statutes is created to read:

AB1032,11,5 227.01 (13) (yu) Relates to guidance issued by the office of credit unions under s. 186.11 (2) (b) or 186.115 (2).

AB1032,19 Section 19 . 227.10 (2m) of the statutes is amended to read:

AB1032,11,13 227.10 (2m) No agency may implement or enforce any standard, requirement, or threshold, including as a term or condition of any license issued by the agency, unless that standard, requirement, or threshold is explicitly required or explicitly permitted by statute or by a rule that has been promulgated in accordance with this subchapter, except as provided in s. 186.118 (2) (c) and , (3) (b) 3., and (3m) (b) 3. The governor, by executive order, may prescribe guidelines to ensure that rules are promulgated in compliance with this subchapter.

AB1032,20 Section 20 . 227.14 (2) (a) 8. of the statutes is amended to read:

AB1032,11,19 227.14 (2) (a) 8. The place where comments on the proposed rule should be submitted and the deadline for submitting those comments, if the deadline is known at the time the proposed rule is submitted to the legislative council staff under s. 227.15 or, for a rule promulgated under s. 186.118 (2) (a) or, (3) (b) 1., or (3m) (b) 1., submitted as provided in s. 186.118 (2) (b) or, (3) (b) 2., or (3m) (b) 2.

AB1032,21 Section 21 . 227.20 (3) (c) of the statutes is amended to read:

AB1032,11,23 227.20 (3) (c) That all of the rule-making procedures required by this chapter were complied with, except as provided in s. 186.118 (2) (c) or, (3) (b) 3., or (3m) (b) 3.

AB1032,22 Section 22. 227.24 (1) (b) of the statutes is amended to read:

AB1032,12,3 227.24 (1) (b) An agency acting under s. 186.235 (21), 215.02 (18) or 220.04 (8) may promulgate a rule without complying with the notice, hearing and publication procedures under this chapter.

AB1032,23 Section 23. 227.24 (1) (d) of the statutes is amended to read:

AB1032,12,13 227.24 (1) (d) A rule promulgated under par. (b) takes effect upon publication in the official state newspaper or on any later date specified in the rule and remains in effect for one year or until it is suspended or the proposed rule corresponding to it is objected to by the joint committee for review of administrative rules, whichever is sooner. If a rule under par. (b) is suspended or a proposed rule under s. 186.235 (21), 215.02 (18) or 220.04 (8) is objected to by the joint committee for review of administrative rules, any person may complete any transaction entered into or committed to in reliance on that rule and shall have 45 days to discontinue other activity undertaken in reliance on that rule.

AB1032,24 Section 24 . DFI-Bkg 14.03 of the administrative code is repealed.

AB1032,25 Section 25 . DFI-CU 63.03 of the administrative code is repealed.

AB1032,26 Section 26 . DFI-SB 12.03 of the administrative code is repealed.

AB1032,27 Section 27 . DFI-SL 12.03 of the administrative code is repealed.

AB1032,12,18 (End)