AB150: Bill Text Engrossed

AB150-engrossed,1790,5 214.72 (3) Within 30 days after commencing employment as a financial regulator and at least once each year, each financial regulator, for himself or herself and covering his or her immediate family, shall complete a written, sworn report disclosing the nature of all business relationships with savings banks on forms prescribed by the commissioner department. Each report shall be reviewed by the commissioner department, except that the commissioner's secretary's and deputy commissioner's secretary's report shall be reviewed by the review board. The reviewers shall determine if any business relationship is or appears improper and, if so, may direct the termination of that business relationship within a reasonable, prescribed time period.

AB150-engrossed, s. 5421 Section 5421. 214.725 (1) of the statutes is amended to read:

AB150-engrossed,1790,14 214.725 (1) At least once every 18 months and more often if necessary, the commissioner division shall examine the books, records, operations and affairs of a savings bank. In the course of the examination, the commissioner division may also examine in the same manner any entity, company or individual that the commissioner division determines may have a relationship with the savings bank or a savings bank holding company, savings bank subsidiary, service corporation or affiliate of the savings bank, if the relationship may adversely affect the affairs, activities and safety and soundness of the savings bank.

AB150-engrossed, s. 5422 Section 5422. 214.725 (2) of the statutes is amended to read:

AB150-engrossed,1790,21 214.725 (2) The commissioner division shall consider it to be necessary to conduct an examination more often than every 18 months if a required report from a savings bank indicates a material change in financial condition or a material violation of a state or federal law, of a federal regulation or of a rule of the commissioner division. If that condition is grounds for taking custody of the savings bank under s. 214.76, the examination shall be initiated within 10 business days.

AB150-engrossed, s. 5423 Section 5423. 214.725 (3) (f) of the statutes is amended to read:

AB150-engrossed,1790,24 214.725 (3) (f) Any other matter the commissioner division considers to be appropriate.

AB150-engrossed, s. 5424 Section 5424. 214.725 (4) of the statutes is amended to read:

AB150-engrossed,1791,7 214.725 (4) If a savings bank, its savings bank holding company or any of its savings bank subsidiaries or service corporations has not been audited at least once in the 12 months before the commissioner's division's examination, the commissioner division shall order an audit of the entity's books and records to be made by an independent certified public accountant, selected by the commissioner division, who has experience in financial institution audits. The cost of the audit shall be paid for by the entity being audited.

AB150-engrossed, s. 5425 Section 5425. 214.725 (5) of the statutes is amended to read:

AB150-engrossed,1791,12 214.725 (5) The commissioner, employes Employes of the office of the commissioner division or other designated agents may administer oaths and examine and take and preserve testimony under oath as to anything in the affairs or ownership of the savings bank or the entity examined.

AB150-engrossed, s. 5426 Section 5426. 214.725 (7) of the statutes is amended to read:

AB150-engrossed,1791,16 214.725 (7) If a savings bank fails to submit to an examination, the commissioner division shall report that failure to the attorney general, who shall institute proceedings to revoke its certificate of incorporation.

AB150-engrossed, s. 5427 Section 5427. 214.735 of the statutes is amended to read:

AB150-engrossed,1791,23 214.735 Examination report. Upon completion of an examination, the commissioner division shall provide an examination report to the board of directors of the savings bank or other entity examined. Each director shall read the report and shall sign an affidavit affirming that the director has read and understands the report. The affidavits shall be retained by the savings bank or entity examined and may be examined by the commissioner division.

AB150-engrossed, s. 5428 Section 5428. 214.74 (title) of the statutes is amended to read:

AB150-engrossed,1791,25 214.74 (title) Orders of the commissioner division.

AB150-engrossed, s. 5429 Section 5429. 214.74 (1) of the statutes is amended to read:

AB150-engrossed,1792,8 214.74 (1) If the affairs of the savings bank, savings bank subsidiary, service corporation or affiliate or savings bank holding company are not being conducted in accordance with this chapter, the commissioner division may require the directors, officers and employes to take necessary corrective action. If the necessary corrective action is not taken, the commissioner division may issue an order to the directors of the entity, to be served personally or by certified mail, specifying a date for the performance of the corrective action.

AB150-engrossed, s. 5430 Section 5430. 214.74 (2) of the statutes is amended to read:

AB150-engrossed,1792,19 214.74 (2) If the order contains a finding that the business of the savings bank or savings bank holding company is being conducted in a fraudulent, illegal, unsafe or unsound manner or that the violation or the continuance of the practice to be corrected may cause insolvency, substantial dissipation of assets or earnings or the impairment of capital, the savings bank or savings bank holding company shall comply with the order immediately, unless the order is modified or withdrawn by the commissioner division or modified or terminated by a court. Notwithstanding sub. (3), the commissioner division may apply to the circuit court in the county in which the home office of the savings bank or savings bank holding company is located for enforcement of an order.

AB150-engrossed, s. 5431 Section 5431. 214.74 (3) of the statutes is amended to read:

AB150-engrossed,1793,3 214.74 (3) If a hearing before the review board has not been requested within 20 days after service of an order, the commissioner division may, at any time within 90 days after the date specified in the order for an action to be taken or discontinued, commence an action in the circuit court of the county in which the home office of the savings bank or savings bank holding company is located to compel the directors, officers or employes to take required corrective action. If a hearing is requested pursuant to s. 214.78, the commissioner division may institute suit within 90 days after a determination by the review board.

AB150-engrossed, s. 5432 Section 5432. 214.74 (4) of the statutes is amended to read:

AB150-engrossed,1793,6 214.74 (4) This section is in addition to the enforcement authority of the commissioner division under subch. XII.

AB150-engrossed, s. 5433 Section 5433. 214.745 of the statutes is amended to read:

AB150-engrossed,1793,14 214.745 (title) Commissioner's Division's notice to members or stockholders. The commissioner division may prepare a statement of the condition of the savings bank, affiliate, savings bank subsidiary, service corporation or savings bank holding company and may mail the statement to the members or stockholders or may publish the statement as a class 1 notice under ch. 985. The expense of a mailing or publication shall be paid by the savings bank, affiliate, savings bank subsidiary, service corporation or savings bank holding company.

AB150-engrossed, s. 5434 Section 5434. 214.75 (1) of the statutes is amended to read:

AB150-engrossed,1793,21 214.75 (1) A savings bank shall maintain books and records, as required by the commissioner division, in accordance with generally accepted accounting principles and the requirements of its deposit insurance corporation. All books and records shall be current, complete, organized and accessible to the commissioner, the commissioner's division's agents and examiners and to the savings bank's auditors and accountants.

AB150-engrossed, s. 5435 Section 5435. 214.75 (2) of the statutes is amended to read:

AB150-engrossed,1794,5 214.75 (2) A savings bank employing an outside data processing service shall inform the commissioner division at the initiation, renewal or changing of a contract for data processing services with an outside data processing service. The contract shall be submitted to the commissioner division at least 60 days before its implementation. The contract shall provide that the records maintained shall at all times be available for examination and audit by the commissioner division. A savings bank shall implement internal control and security measures for its data processing activities.

AB150-engrossed, s. 5436 Section 5436. 214.75 (3) of the statutes is amended to read:

AB150-engrossed,1794,9 214.75 (3) The commissioner division may examine any data processing center that provides data processing or related services to a savings bank as often as the commissioner division examines the savings bank it serves.

AB150-engrossed, s. 5437 Section 5437. 214.75 (4) of the statutes is amended to read:

AB150-engrossed,1794,18 214.75 (4) The commissioner division shall by rule prescribe periods of time for which savings banks must retain records and after the expiration of which, the savings bank may destroy those records. Liability may not accrue against the savings bank, the commissioner division or this state for destruction of records according to rules of the commissioner division promulgated under this subsection. In an action in which records of the savings bank may be called in question or demanded, a showing of the expiration of the retention period shall be sufficient excuse for failure to produce the records.

AB150-engrossed, s. 5438 Section 5438. 214.75 (5) (a) of the statutes is amended to read:

AB150-engrossed,1795,3 214.75 (5) (a) A savings bank may cause records kept by the savings bank to be recorded, copied or reproduced by any photostatic, photographic or miniature photographic process or by optical imaging if the process employed correctly, accurately and permanently copies, reproduces or forms a medium for copying, reproducing or recording the original record on a film or other durable material. A savings bank may thereafter dispose of the original record after obtaining the written consent of the commissioner division. This subsection, except that part requiring written consent of the commissioner division, is applicable to federal savings banks if it does not contravene federal law.

AB150-engrossed, s. 5439 Section 5439. 214.755 (1) (intro.) of the statutes is amended to read:

AB150-engrossed,1795,9 214.755 (1) (intro.) The commissioner, employes Employes of the office of the commissioner division and members of the review board may not disclose information gathered by examination of or obtained through reports from a savings bank or from a state or federal financial institution regulatory authority except to any of the following:

AB150-engrossed, s. 5440 Section 5440. 214.76 (1) of the statutes is amended to read:

AB150-engrossed,1795,16 214.76 (1) At least once in each year and not more than 12 months after its last audit, a savings bank shall cause its books, records and accounts to be audited by an independent certified public accountant not connected with the savings bank. The certified public accountant shall conduct the audit to produce a certified financial statement. The commissioner division may require additional information to be included in an audit report.

AB150-engrossed, s. 5441 Section 5441. 214.76 (3) of the statutes is amended to read:

AB150-engrossed,1795,24 214.76 (3) A copy of the audit report, including a balance sheet of the savings bank on the date of the audit and a statement of income and expenses of the savings bank during the year ending with the date of the audit and the written summary prepared for the board of directors shall be filed with the commissioner division within 60 days after the date on which the savings bank received the audit report. The commissioner division may, for good cause shown, extend the filing date for up to 60 additional days.

AB150-engrossed, s. 5442 Section 5442. 214.76 (4) of the statutes is amended to read:

AB150-engrossed,1796,8 214.76 (4) The audit report filed with the commissioner division shall be certified by the accountant conducting the audit. If a savings bank fails to cause an audit to be made, the commissioner division shall order an audit to be made by an independent certified public accountant at the savings bank's expense. Instead of the audit required under sub. (1), the commissioner division may accept an audit or portion of an audit made exclusively for a deposit insurance corporation or for a financial regulator of another state if the home office of the savings bank is located in that state.

AB150-engrossed, s. 5443 Section 5443. 214.76 (5) (a) (intro.) of the statutes is amended to read:

AB150-engrossed,1796,13 214.76 (5) (a) (intro.) Annually, no later than February 1, a savings bank shall file with the commissioner division a report of its activities of the preceding calendar year, upon forms prescribed by the commissioner division. The report shall include all of the following:

AB150-engrossed, s. 5444 Section 5444. 214.76 (5) (a) 3. of the statutes is amended to read:

AB150-engrossed,1796,16 214.76 (5) (a) 3. Any other information that the commissioner division requires.

AB150-engrossed, s. 5445 Section 5445. 214.76 (5) (b) of the statutes is amended to read:

AB150-engrossed,1796,24 214.76 (5) (b) A savings bank shall include with its annual report a copy of a statement of condition and operations as of the end of the savings bank's most recent fiscal year, which shall be available to the public. The savings bank shall publish a printed statement containing such information as the commissioner division requires as a class 1 notice under ch. 985 in each municipality in which the savings bank operates an office. Proof of publication shall be furnished to the commissioner division within 60 days after the date of the report.

AB150-engrossed, s. 5446 Section 5446. 214.765 (1) of the statutes is amended to read:

AB150-engrossed,1797,9 214.765 (1) A violation of subch. VI or VII or s. 214.34, 214.59 or 214.76, or the failure to comply with recommendations of an examination report of the commissioner division within 60 days after the date of issuance of the report or within any other period the commissioner division specifies, shall be considered an unsafe and unsound practice and creates an unsafe and unsound condition in the savings bank. A savings bank or a person affiliated with a savings bank who violates these provisions shall be subject to a forfeiture under s. 214.935 and to other enforcement powers of the commissioner division under this subchapter, subch. XII and rules of the commissioner division.

AB150-engrossed, s. 5447 Section 5447. 214.765 (2) of the statutes is amended to read:

AB150-engrossed,1797,14 214.765 (2) Continued violation of any provision in sub. (1) after the commissioner division issues an order to correct shall subject the members of the board of directors of the savings bank to removal from the board and to a permanent order of prohibition under s. 214.91.

AB150-engrossed, s. 5448 Section 5448. 214.765 (3) of the statutes is amended to read:

AB150-engrossed,1797,17 214.765 (3) The commissioner division shall promulgate rules to implement this section.

AB150-engrossed, s. 5449 Section 5449. 214.772 (4) (a) 5. of the statutes is amended to read:

AB150-engrossed,1797,19 214.772 (4) (a) 5. Any other information the commissioner division requires.

AB150-engrossed, s. 5450 Section 5450. 214.772 (4) (b) (intro.) of the statutes is amended to read:

AB150-engrossed,1798,2 214.772 (4) (b) (intro.) Upon receipt of a completed application and the required fee, the commissioner division may issue a certificate of authority. The certificate of authority may be subject to specific conditions that the commissioner division believes necessary to adequately safeguard the interests of the residents of this state. The commissioner division may not issue a certificate of authority to do business in this state unless all of the following conditions are met:

AB150-engrossed, s. 5451 Section 5451. 214.772 (4) (b) 1. of the statutes is amended to read:

AB150-engrossed,1798,7 214.772 (4) (b) 1. The foreign savings bank is in sound financial condition and entitled to public confidence, and the commissioner division is satisfied that the foreign savings bank will conduct its business in this state in accordance with the laws of this state.

AB150-engrossed, s. 5452 Section 5452. 214.772 (4) (c) (intro.) of the statutes is amended to read:

AB150-engrossed,1798,10 214.772 (4) (c) (intro.) The commissioner division may revoke a certificate of authority issued under this section if any of the following occurs:

AB150-engrossed, s. 5453 Section 5453. 214.772 (4) (c) 2. of the statutes is amended to read:

AB150-engrossed,1798,13 214.772 (4) (c) 2. The foreign savings bank refuses to permit the commissioner division to conduct an examination, or fails to pay applicable fees.

AB150-engrossed, s. 5454 Section 5454. 214.772 (4) (c) 3. of the statutes is amended to read:

AB150-engrossed,1798,17 214.772 (4) (c) 3. The commissioner division determines that the foreign savings bank is in an unsafe condition or that its continued operation in this state is otherwise inconsistent with the best interests of the residents of this state.

AB150-engrossed, s. 5455 Section 5455. 214.772 (5) of the statutes is amended to read:

AB150-engrossed,1798,25 214.772 (5) A foreign savings bank doing business in this state shall be examined by the commissioner division as provided under s. 214.725, audited under s. 214.76 and assessed fees as provided under s. 214.715 (1) (h), together with any out-of-state travel expenses incurred in the course of an examination or audit. The commissioner division may accept all or part of an examination or audit prepared on behalf of the regulatory authority responsible for the supervision of the foreign savings bank in the jurisdiction in which the foreign savings bank is organized.

AB150-engrossed, s. 5456 Section 5456. 214.772 (6) of the statutes is amended to read:

AB150-engrossed,1799,8 214.772 (6) A foreign savings bank doing business in this state shall maintain on file with the commissioner division the name and address of a person in this state who is authorized to receive legal process on behalf of the foreign savings bank. The commissioner division shall maintain a current record of each person so designated. The record of the commissioner division shall be conclusive evidence of the authority of the person whose name appears in the record to receive process on behalf of the foreign savings bank.

AB150-engrossed, s. 5457 Section 5457. 214.772 (7) of the statutes is amended to read:

AB150-engrossed,1799,17 214.772 (7) If the laws of another jurisdiction prohibit a savings bank from doing business in that jurisdiction, a foreign savings bank organized under the laws of that jurisdiction may not be authorized to do business in this state. If the laws of another jurisdiction require the posting of securities or impose other additional requirements as a condition of permitting a savings bank to do business in that jurisdiction, the commissioner division may impose similar requirements on a foreign savings bank organized under the laws of that jurisdiction before issuing the foreign savings bank a certificate of authority to do business in this state.

AB150-engrossed, s. 5458 Section 5458. 214.775 (intro.) of the statutes is amended to read:

AB150-engrossed,1799,22 214.775 Procedure upon the impairment of capital. (intro.) If the commissioner division finds from a report, examination or other source that a savings bank's capital is impaired, the commissioner division may do any of the following:

AB150-engrossed, s. 5459 Section 5459. 214.78 (1) (a) of the statutes is amended to read:

AB150-engrossed,1799,25 214.78 (1) (a) Advise the commissioner division on matters related to this chapter.

AB150-engrossed, s. 5460 Section 5460. 214.78 (1) (b) of the statutes is amended to read:

AB150-engrossed,1800,3 214.78 (1) (b) Review the acts, orders and determinations of the commissioner division.

AB150-engrossed, s. 5461 Section 5461. 214.78 (1) (c) of the statutes is amended to read:

AB150-engrossed,1800,6 214.78 (1) (c) Act on matters pertaining to this chapter that may be submitted to it by the commissioner division.

AB150-engrossed, s. 5462 Section 5462. 214.78 (3) of the statutes is amended to read:

AB150-engrossed,1800,13 214.78 (3) A person who subpoenaes a witness shall advance the fees and mileage of the witness. Witness fees shall be the same as fees under s. 814.67 (1) (b) and (c). The fees of witnesses who are called by the review board in the interests of the state shall be paid by the state upon presentation of proper vouchers approved by the chairperson of the review board and charged to the appropriation under s. 20.175 20.144 (1) (g).

AB150-engrossed, s. 5463 Section 5463. 214.785 (1) of the statutes is amended to read:

AB150-engrossed,1801,2 214.785 (1) Any interested person or a savings bank aggrieved by any act, order or determination of the commissioner division, which relates to savings banks may, within 20 days after receipt or service of a copy of the act, order or determination, file a written notice requesting the review board's review of the commissioner's division's act, order or determination. The sole review of the commissioner's division's decision shall be to determine if the commissioner division acted within the scope of the commissioner's division's authority, has not acted in an arbitrary or capricious manner and that the act, order or determination of the commissioner division is supported by substantial evidence in view of the entire record as submitted. The review of applications for new savings banks, branch offices or relocation of offices shall be based exclusively on the record and new evidence may not be taken by the review board. Applications under this subsection shall be considered and disposed of as speedily as possible.

AB150-engrossed, s. 5464 Section 5464. 214.785 (2) of the statutes is amended to read:

AB150-engrossed,1801,8 214.785 (2) A determination of the review board shall be subject to review under ch. 227. If an act, order or determination of the commissioner division is reversed or modified by the review board, the commissioner division shall be considered to be a person aggrieved and directly affected by the decision under s. 227.53 (1).