SB121: Bill Text

SB121,40,10 5. Consumer services.

SB121,40,11 6. Real estate-related services, including real estate brokerage services.

SB121,40,12 7. Insurance and related services, other than insurance underwriting.

SB121,40,13 8. Securities brokerage.

SB121,40,14 9. Investment advice.

SB121,40,15 10. Securities and bond underwriting.

SB121,40,16 11. Mutual fund activities.

SB121,40,17 12. Financial consulting.

SB121,40,18 13. Tax planning and preparation.

SB121,40,19 14. Community development and charitable activities.

SB121,40,20 15. Debt cancellation contracts.

SB121,40,22 16. Any activities that are reasonably related or incident to activities under subds. 1. to 15., as determined by rule of the division under par. (b).

SB121,41,7 (b) An activity that is authorized by statute or regulation for financial institutions to engage in as of the effective date of this paragraph .... [revisor inserts date], is an activity that is reasonably related to or incident to the purposes of a universal bank. An activity permitted under the Bank Holding Company Act is an activity that is reasonably related to or incident to the purposes of a universal bank. The division may, by rule, expand the list of activities under par. (a) 1. to 15. that are reasonably related or incident to the purposes of a universal bank and, by rule, may establish which activities under par. (a) 16. are reasonably related or incident to the activities under par. (a) 1. to 15. Any activity approved by rule of the division under this paragraph shall be authorized for all universal banks.

SB121,41,10 (3) Notice requirement. A universal bank shall give 60 days' prior written notice to the division of the universal bank's intention to engage in an activity under this section.

SB121,41,18 (4) Standards for denial. The division may deny the authority of a universal bank to engage in an activity under this section, other than those activities described in sub. (2) (a) 1. to 15., if the division determines that the activity is not an activity reasonably related or incident to the purposes of a universal bank. The division may deny the authority of a universal bank to engage in an activity under this section if the division determines that the universal bank is not well-capitalized, that the universal bank is the subject of an enforcement action, or that the universal bank does not have satisfactory management expertise for the proposed activity.

SB121,41,22 (5) Insurance intermediation. A universal bank, or an officer or salaried employee of a universal bank, may obtain a license as an insurance intermediary, if otherwise qualified. A universal bank may not, directly or indirectly through a subsidiary, engage in the business of underwriting insurance.

SB121,41,24 (6) Other activities approved by the division. A universal bank may engage in any other activity that is approved by rule of the division.

SB121,42,4 (7) Activities provided through a subsidiary. A universal bank may engage in an activity under this section, directly or indirectly through a subsidiary, unless the division determines that the activity must be conducted through a subsidiary with appropriate safeguards to limit the risk exposure of the universal bank.

SB121,42,10 (8) Limitations on investments through subsidiaries. The amount of the investment in any one subsidiary that engages in an activity under this section may not exceed 20% of capital or, if approved by the division, a higher percentage authorized by the division. The aggregate investment in all subsidiaries that engage in an activity under this subsection may not exceed 50% of capital or, if approved by the division, a higher percentage authorized by the division.

SB121,42,13 (9) Ownership of subsidiaries. A subsidiary that engages in an activity under this section may be owned jointly, with one or more other financial institutions, individuals, or entities.

SB121,42,15 222.0415 Trust powers. Subject to rules of the division, a universal bank may exercise trust powers in accordance with s. 221.0316.

SB121, s. 41 Section 41. 227.245 of the statutes is created to read:

SB121,42,20 227.245 Permanent rules; exemptions. (1) Promulgation of universal banking rules. Except as provided in subs. (2) and (3), the division of banking may promulgate a rule under s. 222.0413 (2) (b) without complying with the notice, hearing, and publication procedures under this chapter.

SB121,43,2 (2) Filing and publication. The division of banking shall file a rule described under sub. (1) as provided in s. 227.20. At the time that the rule is filed, the division of banking shall mail a copy of the rule to the chief clerk of each house and to each member of the legislature, shall publish in the official state newspaper a class 1 notice under ch. 985 containing a copy of the rule, and shall take any other step it considers feasible to make the rule known to persons who will be affected by the rule.

SB121,43,4 (3) Effective date. A rule described under sub. (1) takes effect as provided under s. 227.22.

SB121, s. 42 Section 42. Nonstatutory provisions.

SB121,43,17 (1) Emergency rules; universal banking. Except as otherwise provided in this subsection, using the procedure under section 227.24 of the statutes, the division of banking may promulgate rules authorized under chapter 222 of the statutes, as created by this act, for the period before permanent rules become effective, but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b), and (3) of the statutes, the division of banking is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection. This subsection does not apply to the promulgation of rules under section 222.0413 (2) (b) of the statutes, as created by this act.

SB121, s. 43 Section 43. Effective dates. This act takes effect on the day after publication, except as follows:

SB121,43,22 (1) Universal banking. The treatment of sections 220.04 (9) (a) 2., 220.14 (5), 222.0101, 222.0103 to 222.0411, 222.0413 (1), (2) (a), and (3) to (9), and 222.0415 of the statutes takes effect on the first day of the 3rd month beginning after publication.

SB121,43,23 (End)