AB504: Bill Text

AB504,25 Section 25. 220.04 (9) (f) 2. of the statutes is amended to read:

AB504,12,14 220.04 (9) (f) 2. An official or regulated entity who violates an order issued under par. (d) shall, for each violation, forfeit not more than $1,000 per day for each day the violation continues. Assessment of a forfeiture under this subdivision shall commence on the latest of 10 days after the date of delivery of the order or, if an appeal is taken under s. 220.035, 10 days after the date of the decision of the banking institutions review board.

AB504,26 Section 26. 220.04 (12) of the statutes is amended to read:

AB504,13,8 220.04 (12) If the division has information that causes the division to believe that any bank, trust company bank, or any other person subject in whole or in part to supervision or control by the division, or any officer, employee, member, or manager thereof, has violated any law, rule, or order that subjects the person to prosecution for a criminal offense or to a penalty, the division shall bring such information to the attention of the banking institutions review board, with the division's recommendation in writing as to action to be taken. The banking institutions review board shall, if in its judgment probable cause exists for believing that a criminal offense has been committed, or a penalty incurred, call the facts and information to the attention of the attorney general whose duty it shall be to cause prosecution or other action to be instituted if, in the attorney general's judgment, the facts warrant. This subsection does not prevent the institution of any prosecution by any district attorney of this state with or without any advice or act on the part of the attorney general. This subsection does not preclude the division, in any case where the division deems it important to act immediately, from causing any arrest and prosecution where the division is satisfied that there is reason to believe the offense has been committed and that prosecution should be immediately commenced.

AB504,27 Section 27. 220.05 (2) of the statutes is amended to read:

AB504,13,15 220.05 (2) On or before July 15 of each year, each state bank and trust company bank shall pay to the division an annual assessment for the maintenance of the functions of the division in an amount to be determined by the banking institutions review board, but which shall not exceed 8 cents per $1,000 of resources, or part thereof, for the first $5,000,000 and shall not exceed 6 cents per $1,000, or part thereof, for all resources over $5,000,000.

AB504,28 Section 28. 220.06 (1m) of the statutes is amended to read:

AB504,14,11 220.06 (1m) No division employee may examine a bank or licensee in which that person is interested as a stockholder, officer, or employee. No division employee may examine a bank or licensee located in the same village, city , or county with any bank or licensee in which that person is so interested. Employees in the division, and each member and employee of the banking institutions review board, shall keep secret all facts and information obtained in the course of examinations or from reports not under s. 221.1002 (1) filed by a bank or licensee with the division, except so far as the public duty of the person requires reporting upon or taking special action regarding the affairs of any bank or licensee, and except when called as a witness in any criminal proceeding or trial in a court of justice. The division may furnish to the federal deposit insurance corporation, to a federal home loan bank, or to any regulatory authority for state or federal financial institutions, insurance, or securities a copy of any examination made of any such bank or licensee or of any report made by such bank or licensee and may give access to and disclose to the corporation or to any regulatory authority for state or federal financial institutions, insurance, or securities any information possessed by the division, or to a federal home loan bank any information created by the division, with reference to the conditions or affairs of any such insured bank or licensee if the regulatory authority agrees to treat all information received with the same degree of confidentiality as applies to reports of examination that are in the custody of the division.

AB504,29 Section 29. 220.06 (2) of the statutes is amended to read:

AB504,14,18 220.06 (2) If any employee in the division or any member of the banking institutions review board or any employee thereof discloses the name of any debtor of any bank or licensee, or anything relative to the private account or transactions of such bank or licensee, or any fact obtained in the course of any examination of any bank or licensee, except as herein provided, that person is guilty of a Class I felony and shall be subject, upon conviction, to forfeiture of office or position.

AB504,30 Section 30. 220.07 (2) of the statutes is amended to read:

AB504,15,3 220.07 (2) Review of order. In any case where the division has made an order requiring capital to be made good, the bank may within 10 days after the making of said order secure a review of same by the banking institutions review board by filing with the division a statement requesting such review and stating the grounds of objection to the order of the division. Said board shall promptly conduct a hearing thereon after affording reasonable notice to the bank and shall affirm, modify, or set aside the order of the division. No such review or hearing shall extend the time for compliance with the order of the division unless the banking institutions review board shall so direct.

AB504,31 Section 31. 220.08 (1) of the statutes is amended to read:

AB504,16,14 220.08 (1) Whenever it shall appear to the division that any bank or banking corporation to which this chapter is applicable has violated its charter or any law of the state, or is conducting its business in an unsafe or unauthorized manner, or if the capital of any such bank or banking corporation is impaired, or if any such bank or banking corporation shall refuse to submit its books, papers, and concerns to the inspection of any examiner, or if any officer thereof shall refuse to be examined upon oath touching the concerns of any such bank or banking corporation, or if any such bank or banking corporation shall suspend payment of its obligations, or if from any examination or report provided for by this chapter the division shall have reason to conclude that such bank or banking corporation is in an unsound or unsafe condition to transact the business for which it is organized, or that it is unsafe and inexpedient for it to continue business, or if any such bank or banking corporation shall neglect or refuse to observe an order of the division, specified in s. 220.07, or if the division shall find that the management of the bank or the manner in which the work of any of its officers or employees is done, if continued, is such as to endanger the safety or solvency of the bank and the division shall have made written recommendations for change in management or officers and employees and such recommendation shall not have been complied with after the expiration of a reasonable time therefor fixed by the division, the division may take possession of the property and business of such bank or banking corporation, and retain such possession until such bank or banking corporation shall resume business, or its affairs be finally liquidated as herein provided. Whenever facts have come to the attention of the division which cause the division to believe that it may be necessary or advisable to take possession of a bank, or if the division has reasonable cause to believe that any of the grounds for taking possession of a bank, specified in this section, exist, the division shall bring the matter to the attention of the banking institutions review board, reporting to them in writing the situation and the division's recommendation as to action to be taken. The banking institutions review board shall promptly consider the matter and promptly decide whether or not the division should take possession of the bank. If the review board decides that the division should take possession, the division shall forthwith take possession as hereinbefore provided. If at any time the division is confronted with an emergency situation where in the division's opinion it is imperative in order to protect the public or for other reasons that possession of the bank be at once taken, the division may do so forthwith without referring the matter to the banking institutions review board.

AB504,32 Section 32. 220.08 (3a) of the statutes is amended to read:

AB504,16,22 220.08 (3a) That in addition to the authority conferred by sub. (3), the division with the approval of the banking institutions review board may, for purposes of collection or liquidation, sell, assign, convey, and transfer or approve the sale, assignment, conveyance, and transfer of the assets of a closed bank or bank operating under a stabilization and readjustment agreement to any other bank or trust company under such terms and conditions as the division may deem for the best interests of the depositors and unsecured creditors of such bank.

AB504,33 Section 33. 220.08 (9) of the statutes is amended to read:

AB504,17,16 220.08 (9) Whenever any such bank or banking corporation, of whose property and business the division has taken possession, as aforesaid, deems itself aggrieved thereby, it may, at any time within 10 days after such taking possession, apply to the circuit court for the county in which such bank or banking corporation is located to enjoin further proceedings; and said court, after citing the division to show cause why further proceedings should not be enjoined and hearing the allegations and proofs of the parties and determining the facts may, upon the merits dismiss such application or enjoin the division from further proceedings, and direct the division to surrender such business and property to such bank or banking corporation. Said bank or banking corporation may, if it desires so to do, within 10 days after taking possession apply to the banking institutions review board to review the action of the division in taking possession. The banking institutions review board shall act speedily on such application. Within 10 days after notice of the decision of the banking institutions review board, said bank or banking corporation may apply to said circuit court of the county in which such bank or banking corporation is located to enjoin further proceedings. The proceedings on such application shall be on notice to the division and shall be the same as where the application to the court is made as above provided without application to the review board.

AB504,34 Section 34. 220.085 of the statutes is amended to read:

AB504,17,22 220.085 Federal aid to banks. On approval of the banking institutions review board, any state bank or trust company, or the receiver of any insolvent or delinquent state bank or trust company, may take advantage of any act that may be enacted by the congress of the United States for the relief of any state banks or trust companies.

AB504,35 Section 35. 221.0202 (5) of the statutes is amended to read:

AB504,18,8 221.0202 (5) Decision. After completing the investigation under sub. (4), the division shall make a written report to the banking institutions review board stating the results of the investigation and the division's recommendation. The board shall consider the matter, conduct any necessary hearing, and promptly make its decision approving or disapproving the application. The decision shall be final except pursuant to s. 220.035 (1) and (3). If the application is approved, the division shall endorse on each of the original applications the word “Approved". If the application is disapproved, the division shall endorse the word “Disapproved". One of the duplicate originals shall be filed in the division's office and one shall be returned by mail to the applicants.

AB504,36 Section 36. 221.0205 of the statutes is amended to read:

AB504,18,15 221.0205 Capital stock. Immediately following a bank's organization under this chapter, the division shall determine the required capital of the bank, subject to review by the banking institutions review board. In addition to the required capital stock, a contingent fund and paid-in surplus each in an amount equal to at least 25 percent of the aggregate amount of the capital stock, shall be subscribed at the time the subscription list of shareholders is prepared by the incorporators.

AB504,37 Section 37. 221.0324 (9) of the statutes is amended to read:

AB504,18,23 221.0324 (9) Pledges to and loans from the federal home loan bank. Notwithstanding sub. (3), a bank that is a member of the federal home loan bank may borrow money from the federal home loan bank for a term not to exceed 20 years and may pledge bank assets having a value that does not exceed 2 times the amount of the loan as collateral to secure the loan. Total assets pledged under this subsection may not exceed 4 times the amount of the bank's capital or any other extension of credit from the federal home loan bank.

AB504,38 Section 38. 221.0702 (3) of the statutes is amended to read:

AB504,19,12 221.0702 (3) Role of division. After consultation with the banking institutions review board, the division may make recommendations to any bank within this state as to the advisability of consolidation or merger with other banks and may make recommendations as to terms for consolidation or merger of banks in order to avoid a condition of oversupply of banks in any community or area of the state. The division may also, if requested so to do, act as mediator or arbitrator to fix any of the terms of any such consolidation or merger. The board of directors of any bank organized under the laws of this state may use a reasonable amount of the assets of the bank toward assisting in bringing about a consolidation or merger of banks or to aid in reorganization or in avoiding the closing of a bank, if the board considers it to be in the interests of safe banking and the maintenance of credit and banking facilities in the county in which the bank is located.

AB504,39 Section 39. 221.1006 of the statutes is amended to read:

AB504,19,17 221.1006 Fees for certified copies. If a certified copy of a record filed in the division is lawfully required to be furnished by the division, the division may assess a reasonable fee as determined by the banking institutions review board. These fees shall be deposited in the general fund.

AB504,40 Section 40. 223.01 of the statutes is amended to read:

AB504,19,25 223.01 Trust company banks, capital. Trust company banks may be organized pursuant to ch. 221 and shall be subject to all the provisions, requirements, and liabilities of chs. 220 and 221, so far as applicable, except that trust company banks may not accept deposits other than trust deposits and except as otherwise hereinafter provided. The division may, with the approval of the banking institutions review board, establish minimum capital requirements for a trust company bank.

AB504,41 Section 41. 224.46 of the statutes is created to read:

AB504,20,3 224.46 Independent data processing servicers. (1) Definitions. In this section:

AB504,20,4 (a) “Financial institution" has the meaning given in s. 214.01 (1) (jn).

AB504,20,10 (b) “Independent data processing servicer" means an entity that provides to a financial institution electronic data processing services, but not including the exchange of data and settlement of funds between 2 or more unaffiliated financial institutions resulting from transactions involving remote terminals under s. 186.113 (15), remote service units under s. 214.04 (21) or 215.13 (46), or customer bank communications terminals under s. 221.0303 (2).

AB504,20,13 (c) “Interface agreement" means a written agreement specifying the terms and conditions under which an interface of communications, data, or systems between independent data processing servicers shall be accomplished.

AB504,20,24 (2) Ownership of financial institution data. If a financial institution transfers or otherwise makes available to an independent data processing servicer any data from the financial institution's records, this data shall remain the property of the financial institution. The independent data processing servicer has no right, title, or interest in, or claim to legal ownership of, the data. The transfer of the data by the financial institution authorizes the independent data processing servicer only to exercise temporary control of the data for the limited purpose of performing the contracted services requested by the financial institution. This subsection also applies with respect to an independent data processing servicer that receives a financial institution's data under an interface agreement or other agreement with another independent data processing servicer.

AB504,21,4 (3) Contract disclosures by independent data processing servicers. No independent data processing servicer may enter into a contract with a financial institution, or renew or amend such a contract, unless the contract discloses, in separate contract provisions, all of the following:

AB504,21,6 (a) All fees or charges, including any fee schedule, that the independent data processing servicer may impose on the financial institution.

AB504,21,8 (b) Any formula or other grounds that the independent data processing servicer may apply or rely upon to terminate the contract.

AB504,42 Section 42 . 224.725 (1) of the statutes is amended to read:

AB504,21,17 224.725 (1) License required. Except as provided in sub. subs. (1m) and (1r), an individual may not regularly engage in the business of a mortgage loan originator with respect to a residential mortgage loan, or use the title “mortgage loan originator," advertise, or otherwise portray himself or herself as a mortgage loan originator in this state, unless the individual has been issued by the division, and thereafter maintains, a license under this section. Each licensed mortgage loan originator shall register with, and maintain a valid unique identifier issued by, the nationwide mortgage licensing system and registry.

AB504,43 Section 43. 224.725 (1r) of the statutes is created to read:

AB504,21,25 224.725 (1r) Employment transition; temporary authority. (a) An individual who was a registered mortgage loan originator immediately prior to becoming employed by, and who remains employed by, a mortgage banker or mortgage broker licensed under this subchapter and who has applied to the division for a mortgage loan originator license is considered to have temporary authority to act as a mortgage loan originator under this subchapter, for the period specified in par. (c), if all of the following apply:

AB504,22,2 1. The individual has not previously had an application for a mortgage loan originator license denied.

AB504,22,4 2. The individual has not previously had a mortgage loan originator license suspended or revoked in any governmental jurisdiction.

AB504,22,7 3. The individual has not been subject to, or served with, a cease and desist order in any governmental jurisdiction or by the director of the federal bureau of consumer financial protection under 12 USC 5113 (c).

AB504,22,9 4. The individual has not been convicted of any crime that disqualifies the individual under sub. (3) (b) from issuance of a license.

AB504,22,13 5. The individual was registered with the nationwide mortgage licensing system and registry as a loan originator during the one-year period immediately preceding the date on which the individual furnished the information required under sub. (2) (c).

AB504,22,18 (b) An individual who is licensed as a mortgage loan originator in another state, who is employed by a mortgage banker or mortgage broker licensed under this subchapter, and who has applied to the division for a mortgage loan originator license is considered to have temporary authority to act as a mortgage loan originator under this subchapter, for the period specified in par. (c), if all of the following apply:

AB504,22,19 1. The individual meets the requirements of par. (a) 1. to 4.

AB504,22,22 2. The individual was licensed in another state during the 30-day period immediately preceding the date on which the individual furnished the information required under sub. (2) (c).

AB504,23,3 (c) 1. The period during which an individual described in par. (a) or (b) is considered to have temporary authority to act as a mortgage loan originator under this subchapter shall begin on the date on which the individual furnishes to the nationwide mortgage licensing system and registry the information required under sub. (2) (c) in connection with the application for a mortgage loan originator license under this subchapter.

AB504,23,5 2. The period that begins under subd. 1. shall end on the earliest of the following:

AB504,23,7 a. The date on which the individual withdraws the application for a mortgage loan originator license.

AB504,23,9 b. The date on which the division denies, or issues a notice of intent to deny, the application for a mortgage loan originator license.

AB504,23,11 c. The date on which the division grants to the individual a mortgage loan originator license.

AB504,23,14 d. If the individual's application is listed on the nationwide mortgage licensing system and registry as incomplete, the date that is 120 days after the date on which the individual applied for a mortgage loan originator license.

AB504,23,18 (d) 1. Any person employing an individual who is considered to have temporary authority to act as a mortgage loan originator under this subsection shall be subject to the requirements of this subchapter to the same extent as if that individual were a licensed mortgage loan originator.

AB504,23,23 2. Any individual who is considered to have temporary authority to act as a mortgage loan originator under this subsection and who engages in any activity described in s. 224.71 (6) (c) and (d) shall be subject to the requirements of this subchapter to the same extent as if the individual were a licensed mortgage loan originator.

AB504,44 Section 44. 227.52 (3) of the statutes is amended to read:

AB504,24,4 227.52 (3) Those decisions of the division of banking that are subject to review, prior to any judicial review, by the banking institutions review board, and decisions of the division of banking relating to savings banks or savings and loan associations, but no other institutions subject to the jurisdiction of the division of banking.

AB504,45 Section 45. 227.53 (1) (a) 1. of the statutes is amended to read:

AB504,24,13 227.53 (1) (a) 1. Proceedings for review shall be instituted by serving a petition therefor personally or by certified mail upon the agency or one of its officials, and filing the petition in the office of the clerk of circuit court for the county where the judicial review proceedings are to be held. If the agency whose decision is sought to be reviewed is the tax appeals commission, the banking institutions review board, or the credit union review board, or the savings institutions review board, the petition shall be served upon both the agency whose decision is sought to be reviewed and the corresponding named respondent, as specified under par. (b) 1. to 4.

AB504,46 Section 46. 227.53 (1) (b) 2. of the statutes is repealed.

AB504,47 Section 47. 227.53 (1) (b) 4. of the statutes is amended to read:

AB504,24,19 227.53 (1) (b) 4. The savings banking institutions review board, the division of banking, except if the petitioner is the division of banking, the prevailing parties before the savings banking institutions review board shall be the named respondents.

AB504,48 Section 48. 227.53 (1) (d) of the statutes is amended to read:

AB504,25,3 227.53 (1) (d) Except in the case of the tax appeals commission, the banking institutions review board, and the credit union review board, and the savings institutions review board, the agency and all parties to the proceeding before it shall have the right to participate in the proceedings for review. The court may permit other interested persons to intervene. Any person petitioning the court to intervene shall serve a copy of the petition on each party who appeared before the agency and any additional parties to the judicial review at least 5 days prior to the date set for hearing on the petition.

AB504,49 Section 49. 403.312 (2) (c) 1. of the statutes is amended to read:

AB504,25,8 403.312 (2) (c) 1. The claim becomes enforceable at the later of the time that the claim is asserted, or the 90th 14th day following the date of the check, in the case of a cashier's check or teller's check, or the 90th 14th day following the date of the acceptance, in the case of a certified check.

AB504,50 Section 50. 705.04 (2) (intro.) of the statutes is amended to read:

AB504,25,12 705.04 (2) (intro.) If Except as provided in s. 705.06 (2m), if the account is a P.O.D. account, on the death of the original payee or the survivor of 2 or more original payees, all of the following apply:

AB504,51 Section 51 . 705.04 (2g) of the statutes, as affected by 2019 Wisconsin Act 9, is amended to read:

AB504,25,22 705.04 (2g) Notwithstanding subs. (1) and (2) and s. 705.06 (2m), the department of health services may collect, from funds of a decedent that are held by the decedent immediately before death in a joint account or a P.O.D. account, an amount equal to the medical assistance that is recoverable under s. 49.496 (3) (a), an amount equal to aid under s. 49.68, 49.683, 49.685, or 49.785 that is recoverable under s. 49.682 (2) (a) or (am), or an amount equal to long-term community support services under s. 46.27, 2017 stats., that is recoverable under s. 46.27 (7g) (c) 1., 2017 stats., and that was paid on behalf of the decedent or the decedent's spouse.

AB504,52 Section 52. 705.06 (2m) of the statutes is created to read:

AB504,26,8 705.06 (2m) If a financial institution has any lien right, right to setoff, or security interest in a P.O.D. account resulting from the financial institution's loan or other extension of credit to an original payee, on the death of the original payee or the survivor of 2 or more original payees, the financial institution may retain control of all sums on deposit in the P.O.D. account to the extent necessary to exercise its lien right or right to setoff or to protect its security interest or may tender such sums to a court and seek a court determination, but shall pay any remaining balance of the sums on deposit to the P.O.D. beneficiary or beneficiaries as provided in s. 705.04 (2). This subsection applies notwithstanding any limitation on the rights of creditors under s. 705.07 (1).

AB504,53 Section 53. 705.06 (3) of the statutes is amended to read:

AB504,26,12 705.06 (3) The protection provided by this section subs. (1) and (2) shall have no bearing on the rights of parties or their successors in disputes concerning the beneficial ownership of funds in or withdrawn from an account.

AB504,54 Section 54. 812.18 (1) of the statutes is amended to read:

AB504,26,20 812.18 (1) From Subject to s. 812.19 (4), from the time of service upon the garnishee, the garnishee shall be liable to the creditor for the property then in the garnishee's possession or under his or her control belonging to the debtor or in which the debtor is interested to the extent of his or her right or interest therein and for all the garnishee's debts due or to become due to the debtor, except such as are exempt from execution, or are required by a court to be paid by the debtor as restitution under s. 973.20, but not in excess of the amount of the creditor's claim.

AB504,55 Section 55. 812.19 (4) of the statutes is created to read:

AB504,27,2 812.19 (4) If a garnishee is a financial institution, as defined in s. 214.01 (1) (jn), in possession of, or obligated with respect to, property subject to garnishment, the financial institution is liable for the surrender of that property only upon expiration of a reasonable time to comply with or respond to the garnishee summons and complaint.

AB504,56 Section 56. Nonstatutory provisions.

AB504,27,8 (1) Board membership; transition provision. On the effective date of this subsection, each member of the savings institutions review board under s. 15.185 (3), 2017 stats., serving an unexpired term on that board shall become a member of the banking institutions review board for a term that expires on the member's expiration date previously established for the savings institutions review board.

AB504,27,10 (2) Consolidation of banking review board and savings institutions review board; transfer provisions.

AB504,27,12 (a) Banking review board renamed. On the effective date of this paragraph, the banking review board is renamed the banking institutions review board.

AB504,27,15 (b) Tangible personal property. On the effective date of this paragraph, all tangible personal property, including records, of the savings institutions review board is transferred to the banking institutions review board.