Amendment ASA1-SB274

LRBs0436/3

RJM:kmg&wlj:jf

1999 - 2000 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 1999 SENATE BILL 274

March 28, 2000 - Offered by Committee on Financial Institutions.

SB274-ASA1,2,2 An Act to repeal 186.235 (16) (b), 186.41 (1) (d), 186.41 (6) (b) and 186.41 (8); to renumber 186.235 (16) (a) and 186.41 (6) (a); to renumber and amend 186.02 (2) (d), 186.11 (4) (a), 186.41 (1) (a) and 186.41 (1) (c); to amend 93.01 (1m), 186.01 (2), 186.02 (2) (a) 1., 186.02 (2) (b) 2., 186.02 (2) (c), 186.11 (4) (title), 186.11 (4) (b) (intro.) and 1., 186.11 (4) (c), 186.113 (1), 186.113 (1m) (a) (intro.), 186.113 (6) (b) and (c), 186.235 (7) (a) (intro.), 186.36, 186.41 (title), 186.41 (2) and (3), 186.41 (4) (intro.), (a) to (d) and (f), 186.41 (5) (a), (b), (c) and (cr) and 220.04 (9) (a) 2.; and to create 186.02 (2) (b) 2m., 186.02 (2) (d) 2., 186.11 (4) (a) 1., 186.113 (24), 186.20, 186.235 (7) (c), 186.235 (7m), 186.235 (16m), 186.45, 186.80, 220.14 (5), chapter 222 and 227.245 of the statutes; relating to: credit union membership, powers and operation; the application of agriculture, trade and consumer protection statutes to credit unions; the creation of a new type of financial institution; the powers of and requirements applicable to the new type of financial institution; providing an exemption from emergency rule procedures; granting rule-making authority; and providing a penalty.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB274-ASA1, s. 1 Section 1. 93.01 (1m) of the statutes is amended to read:

SB274-ASA1,2,12 93.01 (1m) "Business" includes any business, except that of banks, savings banks, credit unions, savings and loan associations and insurance companies. "Business" includes public utilities and telecommunications carriers to the extent that their activities, beyond registration, notice and reporting activities, are not regulated by the public service commission and includes public utility and telecommunications carrier methods of competition or trade and advertising practices that are exempt from regulation by the public service commission under s. 196.195, 196.196, 196.202, 196.203, 196.219 or 196.499 or by other action of the commission.

SB274-ASA1, s. 2 Section 2. 186.01 (2) of the statutes is amended to read:

SB274-ASA1,2,18 186.01 (2) "Credit union" means, except as specifically provided under ss. 186.41 (1) and 186.45 (1), a cooperative, nonprofit corporation, incorporated under this chapter to encourage thrift among its members, create a source of credit at a fair and reasonable cost and provide an opportunity for its members to improve their economic and social conditions.

SB274-ASA1, s. 3 Section 3. 186.02 (2) (a) 1. of the statutes is amended to read:

SB274-ASA1,2,21 186.02 (2) (a) 1. The conditions of residence or occupation which qualify persons that determine eligibility for membership.

SB274-ASA1, s. 4 Section 4. 186.02 (2) (b) 2. of the statutes is amended to read:

SB274-ASA1,3,8 186.02 (2) (b) 2. Residents Except as otherwise provided in this subdivision, individuals who reside or are employed within a well-defined neighborhood, community or rural district and contiguous neighborhoods and communities. If the office of credit unions, subsequent to a credit union merger, determines that it would be inappropriate under the circumstances to require members of the credit union that results from the merger to reside or be employed in contiguous neighborhoods and communities, the requirement that these neighborhoods and communities be contiguous does not apply.

SB274-ASA1, s. 5 Section 5. 186.02 (2) (b) 2m. of the statutes is created to read:

SB274-ASA1,3,11 186.02 (2) (b) 2m. Individuals who reside or are employed within well-defined and contiguous rural districts or multicounty regions.

SB274-ASA1, s. 6 Section 6. 186.02 (2) (c) of the statutes is amended to read:

SB274-ASA1,3,17 186.02 (2) (c) Members of the immediate family of all qualified persons are eligible for membership. In this paragraph, "members of the immediate family" include the wife, husband, parents, stepchildren and children of a member whether living together in the same household or not and any other relatives of the member or spouse of a member living together in the same household as the member.

SB274-ASA1, s. 7 Section 7. 186.02 (2) (d) of the statutes is renumbered 186.02 (2) (d) 1. and amended to read:

SB274-ASA1,3,23 186.02 (2) (d) 1. Organizations and associations An organization or association of individuals, the majority of whom the directors, owners or members of which are eligible for membership, may be admitted to membership in the same manner and under the same conditions as individuals.

SB274-ASA1, s. 8 Section 8. 186.02 (2) (d) 2. of the statutes is created to read:

SB274-ASA1,4,3 186.02 (2) (d) 2. An organization or association that has its principal business location within any geographic limits of the credit union's field of membership may be admitted to membership.

SB274-ASA1, s. 9 Section 9. 186.11 (4) (title) of the statutes is amended to read:

SB274-ASA1,4,6 186.11 (4) (title) Investment in credit union service corporations organizations.

SB274-ASA1, s. 10 Section 10. 186.11 (4) (a) of the statutes is renumbered 186.11 (4) (a) (intro.) and amended to read:

SB274-ASA1,4,12 186.11 (4) (a) (intro.) A Unless the office of credit unions approves a higher percentage, a credit union may invest not more than 1.5% of its total assets in the capital shares or obligations of a credit union service corporation organizations that satisfy all of the following:

SB274-ASA1,4,14 2. Are organized primarily to provide goods and services to credit unions, credit union organizations and credit union members.

SB274-ASA1, s. 11 Section 11. 186.11 (4) (a) 1. of the statutes is created to read:

SB274-ASA1,4,18 186.11 (4) (a) 1. Are corporations, limited partnerships, limited liability companies or other entities that are permitted under the laws of this state and that are approved by the office of credit unions.

SB274-ASA1, s. 12 Section 12. 186.11 (4) (b) (intro.) and 1. of the statutes are amended to read:

SB274-ASA1,4,21 186.11 (4) (b) (intro.) A credit union service corporation organization under par. (a) may provide goods and services including any of the following:

SB274-ASA1,5,2 1. Credit union operations services, including service centers, credit and debit card services, automated teller and remote terminal services, electronic transaction services, accounting systems, data processing, management training and support, payment item processing, record retention and storage, locator services, research, debt collection, credit analysis and loan servicing, coin and currency services and marketing and advertising services.

SB274-ASA1, s. 13 Section 13. 186.11 (4) (c) of the statutes is amended to read:

SB274-ASA1,5,5 186.11 (4) (c) A credit union service corporation organization may be subject to audit by the office of credit unions.

SB274-ASA1, s. 14 Section 14. 186.113 (1) of the statutes is amended to read:

SB274-ASA1,5,12 186.113 (1) Branch offices. If the need and necessity exist and with With the approval of the office of credit unions, establish branch offices inside this state or no more than 25 miles or outside of this state. Permanent records may be maintained at branch offices established under this subsection. In this subsection, the term "branch office" does not include a remote terminal, a limited services office or a service center.

SB274-ASA1, s. 15 Section 15. 186.113 (1m) (a) (intro.) of the statutes is amended to read:

SB274-ASA1,5,16 186.113 (1m) (a) (intro.) Establish Before the effective date of this paragraph .... [revisor inserts date], establish limited services offices outside this state to serve any member of the credit union if all of the following requirements are met:

SB274-ASA1, s. 16 Section 16. 186.113 (6) (b) and (c) of the statutes are amended to read:

SB274-ASA1,5,20 186.113 (6) (b) Act as trustees or custodians of member tax deferred retirement funds, individual retirement accounts, medical savings accounts or other employe benefit accounts or funds permitted by federal law to be deposited in a credit union.

SB274-ASA1,5,22 (c) Act as a depository for member-deferred member qualified and nonqualified deferred compensation funds as permitted by federal law.

SB274-ASA1, s. 17 Section 17. 186.113 (24) of the statutes is created to read:

SB274-ASA1,5,25 186.113 (24) Funeral trusts. Accept deposits made by members for the purpose of funding burial agreements by trusts created pursuant to s. 445.125.

SB274-ASA1, s. 18 Section 18. 186.20 of the statutes is created to read:

SB274-ASA1,6,4 186.20 Financial privacy. A credit union shall comply with any applicable requirements under 15 USC 6801 to 6803 and any applicable regulations prescribed by the national credit union administration under 15 USC 6804.

SB274-ASA1, s. 19 Section 19. 186.235 (7) (a) (intro.) of the statutes is amended to read:

SB274-ASA1,6,11 186.235 (7) (a) (intro.) Employes of the office of credit unions and members of the review board shall keep secret all the facts and information obtained in the course of examinations, except or contained in any report provided by a credit union other than any semiannual or quarterly financial report that is regularly filed with the office of credit unions. This requirement does not apply in any of the following situations:

SB274-ASA1, s. 20 Section 20. 186.235 (7) (c) of the statutes is created to read:

SB274-ASA1,6,18 186.235 (7) (c) If any person mentioned in par. (a) discloses any information about the private account or transactions of a credit union or any information obtained in the course of an examination of a credit union, except as provided in pars. (a) and (b), that person may be required to forfeit his or her office or position and may be fined not less than $100 nor more than $1,000 or imprisoned for not less than 6 months nor more than 3 years or both.

SB274-ASA1, s. 21 Section 21. 186.235 (7m) of the statutes is created to read: