LRB-5743/1

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2019 - 2020 LEGISLATURE

2019 Assembly BILL 1032

March 26, 2020 - Introduced by Representative Stafsholt, cosponsored by Senator Kooyenga. Referred to Committee on Rules.

AB1032,1,8 An Act to repeal 186.235 (21); to renumber and amend 186.11 (2); to amend 186.07 (7), 186.098 (1), 186.113 (15) (a), 186.115 (2), 186.118 (1), 186.118 (3) (a) (intro.), 186.118 (4), 186.118 (5), 186.235 (14) (c), 214.04 (21) (b), 215.13 (46) (a) 1., 221.0303 (2), 227.10 (2m), 227.14 (2) (a) 8., 227.20 (3) (c), 227.24 (1) (b) and 227.24 (1) (d); and to create 186.11 (2) (b) and (c), 186.113 (26), 186.118 (3m) and 227.01 (13) (yu) of the statutes; relating to: authorized activities and operations of credit unions, automated teller machines of financial institutions, and repealing rules promulgated by the Department of Financial Institutions.

Analysis by the Legislative Reference Bureau

This bill makes various changes related to the authorized activities and operations of credit unions. The bill also repeals certain administrative rules related to the placement or operation of automated teller machines (ATMs) by financial institutions.

Under current law, the Office of Credit Unions (OCU) in the Department of Financial Institutions regulates credit unions in this state. Current law specifies various authorized activities and powers of credit unions.

Parity with federally chartered credit unions

Current law includes the following provisions relating to parity between federally chartered and state chartered credit unions:

1. OCU must establish, by rule, a list of activities and powers incidental to the business of a credit union that are authorized for federally chartered credit unions as of April 18, 2014. A credit union chartered under Wisconsin law (Wisconsin chartered credit union) may engage in any activity or exercise any power listed by OCU, in addition to exercising any other power authorized for the credit union. After April 18, 2014, if any additional activity or power incidental to the business of a credit union becomes authorized for federally chartered credit unions, OCU must make a determination, within 30 days after the activity or power becomes authorized, as to whether the activity or power should also be authorized for Wisconsin chartered credit unions. In making this determination, OCU must consider specified factors and, if OCU determines that the activity or power authorized for federally chartered credit unions should also be authorized for Wisconsin chartered credit unions, OCU must, by rule, add the activity or power to the list. An OCU rule that includes an activity or power in the list is exempt from most administrative rule-making requirements, but deleting an activity or power from the list or modifying the activity or power on the list requires OCU to go through the normal rule-making process.

2. A credit union may undertake any activity, exercise any power, or offer any financially related product or service that any other provider of financial products or services may undertake, exercise, or provide or that OCU finds to be financially related if OCU has specified, by rule, the activity, power, product, or service as one that may be undertaken, exercised, or offered by a credit union.

3. OCU may, by rule, authorize credit unions to exercise any power under the notice, disclosure, or procedural requirements governing federally chartered credit unions or to make any loan or investment or exercise any right, power, or privilege of federally chartered credit unions permitted under federal law, if the credit union review board approves. Such a rule may not restrict powers granted credit unions or affect provisions of the Wisconsin Consumer Act.