Amendment SSA1-AB2

LRBs0071/1

RJM&GMM:cjs:rs

2003 - 2004 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 1, TO 2003 ASSEMBLY BILL 2

June 16, 2003 - Offered by Committee on Agriculture, Financial Institutions and Insurance.

AB2-SSA1,2,7 An Act to repeal 186.235 (16) (b), 186.41 (1) (d), 186.41 (6) (b) and 186.41 (8); to renumber 186.41 (6) (a); to renumber and amend 109.09 (2) (c), 186.02 (2) (d), 186.11 (4) (a), 186.113 (11), 186.235 (16) (a), 186.41 (1) (a) and 186.41 (1) (c); to amend 93.01 (1m), 109.01 (1r), 186.01 (2), 186.02 (2) (a) 1., 186.02 (2) (b) 2., 186.02 (2) (c), 186.06 (4), 186.11 (4) (title), 186.11 (4) (c), 186.113 (1), 186.113 (1m) (a) (intro.), 186.113 (6) (b) and (c), 186.22 (12m), 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), 220.04 (9) (a) 2. and 409.617 (1) (c); to repeal and recreate 186.11 (4) (b) and 186.17 (1); and to create 109.09 (2) (c) 2., 109.09 (2) (c) 3., 186.02 (2) (b) 2m., 186.02 (2) (d) 2., 186.07 (3m), 186.11 (4) (a) 1., 186.11 (4) (bd) and (bh), 186.113 (11) (b), 186.113 (24), 186.113 (25), 186.20, 186.235 (7) (c), 186.235 (7m), 186.235 (16m), 186.45, 186.80, 220.14 (5) and chapter 222 of the statutes; relating to: credit union membership, powers, operation, and regulation; 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; the discharge of governmental liens under the Uniform Commercial Code; the priority of certain wage claim liens over a prior lien of a commercial lending 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:

AB2-SSA1, s. 1 Section 1. 93.01 (1m) of the statutes is amended to read:

AB2-SSA1,2,17 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.

AB2-SSA1, s. 2 Section 2. 109.01 (1r) of the statutes is amended to read:

AB2-SSA1,3,2 109.01 (1r) "Employee" means any person employed by an employer, except that "employee" does not include an officer or director of a corporation, a member or manager of a limited liability company, a partner of a partnership or a joint venture or, the owner of a sole proprietorship , an independent contractor, or a person employed in a managerial, executive, or commissioned sales capacity or in a capacity in which the person is privy to confidential matters involving the employer-employee relationship.

AB2-SSA1, s. 3 Section 3. 109.09 (2) (c) of the statutes is renumbered 109.09 (2) (c) 1. and amended to read:

AB2-SSA1,3,15 109.09 (2) (c) 1. A lien under par. (a) takes precedence over all other debts, judgments, decrees, liens, or mortgages against the employer, except a lien of a financial institution, as defined in s. 69.30 (1) (b), that originates before the lien under par. (a) takes effect commercial lending institution as provided in subd. 2. and 3. or a lien under s. 292.31 (8) (i) or 292.81, regardless of whether those other debts, judgments, decrees, liens, or mortgages originate before or after the lien under par. (a) takes effect. A lien under par. (a) may be enforced in the manner provided in ss. 779.09 to 779.12, 779.20, and 779.21, insofar as those provisions are applicable. The lien ceases to exist if the department of workforce development or the employee does not bring an action to enforce the lien within the period prescribed in s. 893.44 for the underlying wage claim.

AB2-SSA1, s. 4 Section 4. 109.09 (2) (c) 2. of the statutes is created to read:

AB2-SSA1,4,2 109.09 (2) (c) 2. Except as provided in this subdivision, a lien under par. (a) does not take precedence over a lien of a commercial lending institution against the employer that originates before the lien under par. (a) takes effect. Subject to subd. 3., a lien under par. (a) takes precedence over a lien of a commercial lending institution against the employer that originates before the lien under par. (a) takes effect only to the extent that the lien under par. (a) is for unpaid wages of $3,000 or less earned by an employee within the 6 months preceding the date on which the employee files the wage claim under sub. (1) or brings the action under s. 109.03 (5) or the date on which the department receives the wage claim under s. 109.10 (4) (a), whichever is applicable.

AB2-SSA1, s. 5 Section 5. 109.09 (2) (c) 3. of the statutes is created to read:

AB2-SSA1,4,16 109.09 (2) (c) 3. Notwithstanding subd. 2., a lien of a financial institution, as defined in s. 69.30 (1) (b), that exists on the day before the effective date of this subdivision .... [revisor inserts date], and that originates before a lien under par. (a) takes effect takes precedence over the lien under par. (a), and a lien of a financial institution for any amount advanced by the financial institution after a lien under par. (a) takes effect under a contract entered into before the effective date of this subdivision .... [revisor inserts date], including any extension or renewal of such a contract, takes precedence over the lien under par. (a). Notwithstanding subd. 2., a lien under par. (a) that exists on the day before the effective date of this subdivision .... [revisor inserts date], takes precedence over a lien of a commercial lending institution that is not a financial institution, as defined in 69.30 (1) (b), regardless of whether the lien of the commercial lending institution originates before or after the lien under par. (a) takes effect.

AB2-SSA1, s. 6 Section 6. 186.01 (2) of the statutes is amended to read:

AB2-SSA1,4,22 186.01 (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.

AB2-SSA1, s. 7 Section 7. 186.02 (2) (a) 1. of the statutes is amended to read:

AB2-SSA1,4,25 186.02 (2) (a) 1. The conditions of residence or occupation which qualify persons that determine eligibility for membership.

AB2-SSA1, s. 8 Section 8. 186.02 (2) (b) 2. of the statutes is amended to read:

AB2-SSA1,5,9 186.02 (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.

AB2-SSA1, s. 9 Section 9. 186.02 (2) (b) 2m. of the statutes is created to read:

AB2-SSA1,5,12 186.02 (2) (b) 2m. Individuals who reside or are employed within well-defined and contiguous rural districts or multicounty regions.

AB2-SSA1, s. 10 Section 10. 186.02 (2) (c) of the statutes is amended to read:

AB2-SSA1,5,18 186.02 (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.

AB2-SSA1, s. 11 Section 11. 186.02 (2) (d) of the statutes is renumbered 186.02 (2) (d) 1. and amended to read:

AB2-SSA1,5,24 186.02 (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.

AB2-SSA1, s. 12 Section 12. 186.02 (2) (d) 2. of the statutes is created to read:

AB2-SSA1,6,3 186.02 (2) (d) 2. An organization or association that has a business location within any geographic limits of the credit union's field of membership may be admitted to membership.

AB2-SSA1, s. 13 Section 13. 186.06 (4) of the statutes is amended to read:

AB2-SSA1,6,7 186.06 (4) Fiscal year. The fiscal year of every credit union shall end at the close of business on December 31 and the credit union shall, at least semiannually, transfer funds as provided in s. 186.17.

AB2-SSA1, s. 14 Section 14. 186.07 (3m) of the statutes is created to read:

AB2-SSA1,6,16 186.07 (3m) Written consent in lieu of meeting. (a) Unless the articles of incorporation or bylaws provide otherwise, any action required or permitted by this chapter to be authorized at a board of directors' meeting may be authorized without a meeting if that action is authorized by all directors and is evidenced by one or more written statements, signed by each director, describing and consenting to the action. Such an action has the same effect as an action authorized by unanimous vote at a meeting at which all directors are present and may be described as such in any document.

AB2-SSA1,6,19 (b) Any action authorized under par. (a) is effective when the last director signs the statement evidencing his or her consent, unless the statement specifies a different effective date.

AB2-SSA1,6,21 (c) A credit union shall retain all statements signed by its directors under par. (a).

AB2-SSA1, s. 15 Section 15. 186.11 (4) (title) of the statutes is amended to read:

AB2-SSA1,6,24 186.11 (4) (title) Investment in credit union service corporations organizations.

AB2-SSA1, s. 16 Section 16. 186.11 (4) (a) of the statutes is renumbered 186.11 (4) (a) (intro.) and amended to read:

AB2-SSA1,7,7 186.11 (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, in the opinion of the office of credit unions, are sufficiently bonded and insured and that satisfy all of the following:

AB2-SSA1,7,9 2. Are organized primarily to provide goods and services to credit unions, credit union organizations and credit union members.

AB2-SSA1, s. 17 Section 17. 186.11 (4) (a) 1. of the statutes is created to read:

AB2-SSA1,7,13 186.11 (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.

AB2-SSA1, s. 18 Section 18. 186.11 (4) (b) of the statutes is repealed and recreated to read:

AB2-SSA1,7,16 186.11 (4) (b) A credit union service organization under par. (a) may provide any of the following services related to the routine daily operations of credit unions:

AB2-SSA1,7,19 1. Checking and currency services, check cashing services, money order services, savings bond services, traveler's check services, and services regarding the purchase and sale of U.S. mint commemorative coins.

AB2-SSA1,7,23 2. Clerical, professional, and management services, including, but not limited to, accounting, courier, credit analysis, facsimile transmission and copying, internal credit union audit, locator, management and personnel training and support, marketing, research, and supervisory committee audit services.

AB2-SSA1,7,24 3. Consumer mortgage loan origination services.

AB2-SSA1,8,4 4. Electronic transaction services, including, but not limited to, remote terminal, credit and debit card, data processing, electronic fund transfer, electronic income tax filing, payment item processing, wire transfer, and Internet financial services.

AB2-SSA1,8,8 5. Tax preparation services, services regarding the development and administration of individual retirement accounts, Keogh plans, deferred compensation plans, and other personnel benefit plans, and financial counseling services, including, but not limited to, estate planning.