LRBa1597/1
ARG:wlj:rs
2013 - 2014 LEGISLATURE
SENATE AMENDMENT 1,
TO SENATE BILL 520
February 3, 2014 - Offered by Senator Lasee.
SB520-SA1,1,11 At the locations indicated, amend the bill as follows:
SB520-SA1,1,2 21. Page 1, line 6: delete "procedures and" and substitute "procedures,".
SB520-SA1,1,4 32. Page 1, line 8: after "Institutions" insert ", providing an exemption from
4rule-making procedures, and requiring the exercise of rule-making authority".
SB520-SA1,1,5 53. Page 10, line 14: delete "or (3) (b)." and substitute "(a) or (3) (b) 1.".
SB520-SA1,1,6 64. Page 10, line 15: delete lines 15 to 18 and substitute:
SB520-SA1,1,10 7"(2) (a) The office of credit unions shall promulgate a rule establishing a list
8of activities and powers incidental to the business of a credit union that are
9authorized for federally chartered credit unions as of the effective date of this
10paragraph .... [LRB inserts date].
SB520-SA1,2,211 (b) The office of credit unions shall submit the proposed rule under par. (a) to
12the legislative reference bureau in an electronic format approved by the legislative

1reference bureau, and the legislative reference bureau shall publish the proposed
2rule in the notice section of the Wisconsin administrative register under s. 35.93.
SB520-SA1,2,83 (c) Sections 227.114 (4) and (6), 227.115, 227.135, 227.137, 227.14 (2) (a) 6., (2g),
4(4), and (4m), 227.15, 227.16, 227.17, 227.18, 227.185, 227.19, and 227.30 do not
5apply to the office of credit unions in promulgating a rule under par. (a) or to any rule
6promulgated by the office of credit unions under par. (a). Guidelines prescribed by
7executive order of the governor do not apply to the office of credit unions in
8promulgating a rule under par. (a).".
SB520-SA1,2,9 95. Page 10, line 21: after "(2)" insert "(a)".
SB520-SA1,2,10 106. Page 11, line 10: delete lines 10 to 13 and substitute:
SB520-SA1,2,15 11"(b) 1. The office of credit unions shall promulgate a rule adding an activity or
12power to the list of activities and powers established under sub. (2) (a) if the office
13of credit unions determines under par. (a) that the activity or power authorized for
14federally chartered credit unions should also be authorized for credit unions
15organized under s. 186.02.
SB520-SA1,2,1916 2. The office of credit unions shall submit the proposed rule under subd. 1. to
17the legislative reference bureau in an electronic format approved by the legislative
18reference bureau, and the legislative reference bureau shall publish the proposed
19rule in the notice section of the Wisconsin administrative register under s. 35.93.
SB520-SA1,3,220 3. Sections 227.114 (4) and (6), 227.115, 227.135, 227.137, 227.14 (2) (a) 6., (2g),
21(4), and (4m), 227.15, 227.16, 227.17, 227.18, 227.185, 227.19, and 227.30 do not
22apply to the office of credit unions in promulgating a rule under subd. 1. or to any rule
23promulgated by the office of credit unions under subd. 1. Guidelines prescribed by

1executive order of the governor do not apply to the office of credit unions in
2promulgating a rule under subd. 1.
SB520-SA1,3,5 3(4) The office of credit unions shall publish and maintain on the department
4of financial institutions' Internet site the list of activities and powers under sub. (2)
5(a).
SB520-SA1,3,8 6(5) If the office of credit unions promulgates a rule listing an activity or power
7as provided in sub. (2) (a) or (3) (b) 1., subs. (2) (b) and (c) and (3) (b) 2. and 3. do not
8apply to any subsequent rule modifying or eliminating the listed activity or power.".
SB520-SA1,3,9 97. Page 13, line 25: delete that line.
SB520-SA1,3,10 108. Page 14, line 1: delete that line.
SB520-SA1,3,11 119. Page 14, line 2: before that line insert:
SB520-SA1,3,12 12" Section 22m. 227.10 (2m) of the statutes is amended to read:
SB520-SA1,3,1913 227.10 (2m) No agency may implement or enforce any standard, requirement,
14or threshold, including as a term or condition of any license issued by the agency,
15unless that standard, requirement, or threshold is explicitly required or explicitly
16permitted by statute or by a rule that has been promulgated in accordance with this
17subchapter, except as provided in s. 186.118 (2) (c) and (3) (b) 3. The governor, by
18executive order, may prescribe guidelines to ensure that rules are promulgated in
19compliance with this subchapter.".
SB520-SA1,3,20 2010. Page 14, line 4: after that line insert:
SB520-SA1,3,21 21" Section 23d. 227.14 (2) (a) 8. of the statutes is amended to read:
SB520-SA1,4,222 227.14 (2) (a) 8. The place where comments on the proposed rule should be
23submitted and the deadline for submitting those comments, if the deadline is known
24at the time the proposed rule is submitted to the legislative council staff under s.

1227.15 or, for a rule promulgated under s. 186.118 (2) (a) or (3) (b) 1., submitted as
2provided in s. 186.118 (2) (b) or (3) (b) 2
.
SB520-SA1,23t 3Section 23t. 227.20 (3) (c) of the statutes is amended to read:
SB520-SA1,4,54 227.20 (3) (c) That all of the rule-making procedures required by this chapter
5were complied with, except as provided in s. 186.118 (2) (c) or (3) (b) 3.".
SB520-SA1,4,6 611. Page 17, line 21: after "60.03" insert "(title) and (1)".
SB520-SA1,4,7 712. Page 17, line 21: delete "is" and substitute "are".
SB520-SA1,4,9 813. Page 17, line 22: delete "Time deposits" and substitute "Term share
9accounts
".
SB520-SA1,4,11 1014. Page 17, line 24: delete "time deposit" and substitute "deposit term share
11account
".
SB520-SA1,4,12 1215. Page 18, line 1: delete lines 1 to 10 and substitute:
SB520-SA1,4,13 13" Section 39g. DFI-CU 60.03 (2) of the administrative code is repealed.
SB520-SA1,39r 14Section 39r. DFI-CU 60.03 (3) and (4) of the administrative code are amended
15to read:".
SB520-SA1,4,17 1616. Page 18, line 12: on lines 12 and 19, delete "time deposit" and substitute
17"deposit term share".
SB520-SA1,4,19 1817. Page 18, line 13: delete "time deposit" and substitute "term share
19account
".
SB520-SA1,4,21 2018. Page 18, line 15: delete "time deposits" and substitute "term share
21accounts
".
SB520-SA1,5,3 2219. Page 18, line 20: delete the material beginning with "Early" and ending
23with "associations." on line 23 and substitute "Early withdrawal penalties may be

1enforced up to the maximum permitted by the depository institutions deregulation
2committee for similar types of accounts held in banks and savings and loan
3associations
.".
SB520-SA1,5,5 420. Page 19, line 3: on lines 3 and 8, delete "time deposit" and substitute
5"deposit term share".
SB520-SA1,5,6 621. Page 19, line 5: delete "time deposit or" and substitute "or".
SB520-SA1,5,8 722. Page 21, line 15: delete the material beginning with that line and ending
8with page 22, line 12, and substitute:
SB520-SA1,5,9 9" Section 49m. Chapter DFI-CU 67 of the administrative code is repealed.".
SB520-SA1,5,10 1023. Page 23, line 3: delete that line and substitute:
SB520-SA1,5,12 11" Section 60d. Chapter DFI-CU 74 (title) of the administrative code is
12amended to read:
SB520-SA1,5,13 13Chapter DFI-CU 74
SB520-SA1,5,18 14INCIDENTAL POWERS ACTIVITY
15 AUTHORITY PARITY WITH FEDERAL
16 CREDIT UNIONS -
DEBT CANCELLATION
17 CONTRACTS AND DEBT SUSPENSION
18 AGREEMENTS
SB520-SA1,60h 19Section 60h. DFI-CU 74.01 of the administrative code is repealed.
SB520-SA1,60j 20Section 60j. DFI-CU 74.02 (7) of the administrative code is repealed.
SB520-SA1,60p 21Section 60p. DFI-CU 74.03 of the administrative code is amended to read:
SB520-SA1,6,2 22DFI-CU 74.03 Debt cancelation contracts and debt suspension
23agreements.
A credit union may provide debt cancellation contracts and debt

1suspension agreements as an incidental powers activity in the same manner and to
2the same extent that the products are provided by federally-chartered credit unions
.
SB520-SA1,60t 3Section 60t. DFI-CU 74.09 of the administrative code is amended to read:
SB520-SA1,6,17 4DFI-CU 74.09 Safety and soundness. A credit union shall manage the risks
5associated with debt cancellation contracts and debt suspension agreements in
6accordance with safety and soundness principles. A credit union shall establish and
7maintain effective risk management and control processes over its debt cancellation
8contracts and debt suspension agreements. The processes include appropriate
9recognition and financial reporting of income, expenses, assets and liabilities, and
10appropriate treatment of all expected and unexpected losses associated with the
11products. A credit union shall assess the adequacy of its internal control and risk
12mitigation activities in view of the nature and scope of its debt cancellation contract
13and debt suspension agreement programs. The director may limit, restrict or
14prohibit a credit union from utilizing any incidental power providing debt
15cancellation contracts and debt suspension agreements
if examination results
16indicate that the credit union is conducting its business in an unauthorized or unsafe
17manner or is violating any of the provisions of this chapter.".
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