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
1An Act to repeal 186.235 (16) (b), 186.41 (1) (d), 186.41 (6) (b) and 186.41 (8);
2to renumber 186.41 (6) (a);
to renumber and amend 109.09 (2) (c), 186.02
3(2) (d), 186.11 (4) (a), 186.113 (11), 186.235 (16) (a), 186.41 (1) (a) and 186.41 (1)
4(c);
to amend 93.01 (1m), 109.01 (1r), 186.01 (2), 186.02 (2) (a) 1., 186.02 (2) (b)
52., 186.02 (2) (c), 186.06 (4), 186.11 (4) (title), 186.11 (4) (c), 186.113 (1), 186.113
6(1m) (a) (intro.), 186.113 (6) (b) and (c), 186.22 (12m), 186.235 (7) (a) (intro.),
7186.36, 186.41 (title), 186.41 (2) and (3), 186.41 (4) (intro.), (a) to (d) and (f),
8186.41 (5) (a), (b), (c) and (cr), 220.04 (9) (a) 2. and 409.617 (1) (c);
to repeal and
9recreate 186.11 (4) (b) and 186.17 (1); and
to create 109.09 (2) (c) 2., 109.09 (2)
10(c) 3., 186.02 (2) (b) 2m., 186.02 (2) (d) 2., 186.07 (3m), 186.11 (4) (a) 1., 186.11
11(4) (bd) and (bh), 186.113 (11) (b), 186.113 (24), 186.113 (25), 186.20, 186.235 (7)
12(c), 186.235 (7m), 186.235 (16m), 186.45, 186.80, 220.14 (5) and chapter 222 of
13the statutes;
relating to: credit union membership, powers, operation, and
1regulation; the application of agriculture, trade, and consumer protection
2statutes to credit unions; the creation of a new type of financial institution; the
3powers of and requirements applicable to the new type of financial institution;
4the discharge of governmental liens under the Uniform Commercial Code; the
5priority of certain wage claim liens over a prior lien of a commercial lending
6institution; providing an exemption from emergency rule procedures; granting
7rule-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
8Section
1. 93.01 (1m) of the statutes is amended to read:
AB2-SSA1,2,179
93.01
(1m) "Business" includes any business, except that of banks, savings
10banks,
credit unions, savings and loan associations
, and insurance companies.
11"Business" includes public utilities and telecommunications carriers to the extent
12that their activities, beyond registration, notice
, and reporting activities, are not
13regulated by the public service commission and includes public utility and
14telecommunications carrier methods of competition or trade and advertising
15practices that are exempt from regulation by the public service commission under s.
16196.195, 196.196, 196.202, 196.203, 196.219
, or 196.499 or by other action of the
17commission.
AB2-SSA1, s. 2
18Section
2. 109.01 (1r) of the statutes is amended to read:
AB2-SSA1,3,219
109.01
(1r) "Employee" means any person employed by an employer, except
20that "employee" does not include an officer or director of a corporation, a member or
21manager of a limited liability company, a partner of a partnership or a joint venture
22or, the owner of a sole proprietorship
, an independent contractor, or a person
23employed in a managerial, executive, or commissioned sales capacity or in a capacity
1in which the person is privy to confidential matters involving the
2employer-employee relationship.
AB2-SSA1, s. 3
3Section
3. 109.09 (2) (c) of the statutes is renumbered 109.09 (2) (c) 1. and
4amended to read:
AB2-SSA1,3,155
109.09
(2) (c) 1. A lien under par. (a) takes precedence over all other debts,
6judgments, decrees, liens
, or mortgages against the employer, except a lien of a
7financial institution, as defined in s. 69.30 (1) (b), that originates before the lien
8under par. (a) takes effect commercial lending institution as provided in subd. 2. and
93. or a lien under s. 292.31 (8) (i) or 292.81
, regardless of whether those other debts,
10judgments, decrees, liens, or mortgages originate before or after the lien under par.
11(a) takes effect. A lien under par. (a) may be enforced in the manner provided in ss.
12779.09 to 779.12, 779.20
, and 779.21, insofar as those provisions are applicable. The
13lien ceases to exist if the department of workforce development or the employee does
14not bring an action to enforce the lien within the period prescribed in s. 893.44 for
15the underlying wage claim.
AB2-SSA1, s. 4
16Section
4. 109.09 (2) (c) 2. of the statutes is created to read:
AB2-SSA1,4,217
109.09
(2) (c) 2. Except as provided in this subdivision, a lien under par. (a) does
18not take precedence over a lien of a commercial lending institution against the
19employer that originates before the lien under par. (a) takes effect. Subject to subd.
203., a lien under par. (a) takes precedence over a lien of a commercial lending
21institution against the employer that originates before the lien under par. (a) takes
22effect only to the extent that the lien under par. (a) is for unpaid wages of $3,000 or
23less earned by an employee within the 6 months preceding the date on which the
24employee files the wage claim under sub. (1) or brings the action under s. 109.03 (5)
1or the date on which the department receives the wage claim under s. 109.10 (4) (a),
2whichever is applicable.
AB2-SSA1, s. 5
3Section
5. 109.09 (2) (c) 3. of the statutes is created to read:
AB2-SSA1,4,164
109.09
(2) (c) 3. Notwithstanding subd. 2., a lien of a financial institution, as
5defined in s. 69.30 (1) (b), that exists on the day before the effective date of this
6subdivision .... [revisor inserts date], and that originates before a lien under par. (a)
7takes effect takes precedence over the lien under par. (a), and a lien of a financial
8institution for any amount advanced by the financial institution after a lien under
9par. (a) takes effect under a contract entered into before the effective date of this
10subdivision .... [revisor inserts date], including any extension or renewal of such a
11contract, takes precedence over the lien under par. (a). Notwithstanding subd. 2., a
12lien under par. (a) that exists on the day before the effective date of this subdivision
13.... [revisor inserts date], takes precedence over a lien of a commercial lending
14institution that is not a financial institution, as defined in 69.30 (1) (b), regardless
15of whether the lien of the commercial lending institution originates before or after
16the lien under par. (a) takes effect.
AB2-SSA1, s. 6
17Section
6. 186.01 (2) of the statutes is amended to read:
AB2-SSA1,4,2218
186.01
(2) "Credit union" means
, except as specifically provided under ss.
19186.41 (1) and 186.45 (1), a cooperative, nonprofit corporation, incorporated under
20this chapter to encourage thrift among its members, create a source of credit at a fair
21and reasonable cost
, and provide an opportunity for its members to improve their
22economic and social conditions.
AB2-SSA1, s. 7
23Section
7. 186.02 (2) (a) 1. of the statutes is amended to read:
AB2-SSA1,4,2524
186.02
(2) (a) 1. The conditions
of residence or occupation which qualify persons 25that determine eligibility for membership.
AB2-SSA1, s. 8
1Section
8. 186.02 (2) (b) 2. of the statutes is amended to read:
AB2-SSA1,5,92
186.02
(2) (b) 2.
Residents Except as otherwise provided in this subdivision,
3individuals who reside or are employed within
a well-defined
neighborhood,
4community or rural district and contiguous neighborhoods and communities. If the
5office of credit unions, subsequent to a credit union merger, determines that it would
6be inappropriate under the circumstances to require members of the credit union
7that results from the merger to reside or be employed in contiguous neighborhoods
8and communities, the requirement that these neighborhoods and communities be
9contiguous does not apply.
AB2-SSA1, s. 9
10Section
9. 186.02 (2) (b) 2m. of the statutes is created to read:
AB2-SSA1,5,1211
186.02
(2) (b) 2m. Individuals who reside or are employed within well-defined
12and contiguous rural districts or multicounty regions.
AB2-SSA1, s. 10
13Section
10. 186.02 (2) (c) of the statutes is amended to read:
AB2-SSA1,5,1814
186.02
(2) (c) Members of the immediate family of all qualified persons are
15eligible for membership.
In this paragraph, "members of the immediate family"
16include the wife, husband, parents, stepchildren and children of a member whether
17living together in the same household or not and any other relatives of the member
18or spouse of a member living together in the same household as the member.
AB2-SSA1, s. 11
19Section
11. 186.02 (2) (d) of the statutes is renumbered 186.02 (2) (d) 1. and
20amended to read:
AB2-SSA1,5,2421
186.02
(2) (d) 1.
Organizations and associations An organization or association 22of individuals, the majority of
whom the directors, owners, or members of which are
23eligible for membership, may be admitted to membership in the same manner and
24under the same conditions as individuals.
AB2-SSA1, s. 12
25Section
12. 186.02 (2) (d) 2. of the statutes is created to read:
AB2-SSA1,6,3
1186.02
(2) (d) 2. An organization or association that has a business location
2within any geographic limits of the credit union's field of membership may be
3admitted to membership.
AB2-SSA1, s. 13
4Section
13. 186.06 (4) of the statutes is amended to read:
AB2-SSA1,6,75
186.06
(4) Fiscal year. The fiscal year of every credit union shall end at the
6close of business on December 31
and the credit union shall, at least semiannually,
7transfer funds as provided in s. 186.17.
AB2-SSA1, s. 14
8Section
14. 186.07 (3m) of the statutes is created to read:
AB2-SSA1,6,169
186.07
(3m) Written consent in lieu of meeting. (a) Unless the articles of
10incorporation or bylaws provide otherwise, any action required or permitted by this
11chapter to be authorized at a board of directors' meeting may be authorized without
12a meeting if that action is authorized by all directors and is evidenced by one or more
13written statements, signed by each director, describing and consenting to the action.
14Such an action has the same effect as an action authorized by unanimous vote at a
15meeting at which all directors are present and may be described as such in any
16document.
AB2-SSA1,6,1917
(b) Any action authorized under par. (a) is effective when the last director signs
18the statement evidencing his or her consent, unless the statement specifies a
19different effective date.
AB2-SSA1,6,2120
(c) A credit union shall retain all statements signed by its directors under par.
21(a).
AB2-SSA1, s. 15
22Section
15. 186.11 (4) (title) of the statutes is amended to read:
AB2-SSA1,6,2423
186.11
(4) (title)
Investment in credit union service corporations
24organizations.
AB2-SSA1, s. 16
1Section
16. 186.11 (4) (a) of the statutes is renumbered 186.11 (4) (a) (intro.)
2and amended to read:
AB2-SSA1,7,73
186.11
(4) (a) (intro.)
A Unless the office of credit unions approves a higher
4percentage, a credit union may invest not more than 1.5% of its total assets in the
5capital shares or obligations of
a credit union service
corporation organizations that,
6in the opinion of the office of credit unions, are sufficiently bonded and insured and
7that satisfy all of the following:
AB2-SSA1,7,9
82. Are organized primarily to provide goods and services to credit unions, credit
9union organizations and credit union members.
AB2-SSA1, s. 17
10Section
17. 186.11 (4) (a) 1. of the statutes is created to read:
AB2-SSA1,7,1311
186.11
(4) (a) 1. Are corporations, limited partnerships, limited liability
12companies, or other entities that are permitted under the laws of this state and that
13are approved by the office of credit unions.
AB2-SSA1, s. 18
14Section
18. 186.11 (4) (b) of the statutes is repealed and recreated to read:
AB2-SSA1,7,1615
186.11
(4) (b) A credit union service organization under par. (a) may provide
16any of the following services related to the routine daily operations of credit unions:
AB2-SSA1,7,1917
1. Checking and currency services, check cashing services, money order
18services, savings bond services, traveler's check services, and services regarding the
19purchase and sale of U.S. mint commemorative coins.
AB2-SSA1,7,2320
2. Clerical, professional, and management services, including, but not limited
21to, accounting, courier, credit analysis, facsimile transmission and copying, internal
22credit union audit, locator, management and personnel training and support,
23marketing, research, and supervisory committee audit services.
AB2-SSA1,7,2424
3. Consumer mortgage loan origination services.
AB2-SSA1,8,4
14. Electronic transaction services, including, but not limited to, remote
2terminal, credit and debit card, data processing, electronic fund transfer, electronic
3income tax filing, payment item processing, wire transfer, and Internet financial
4services.
AB2-SSA1,8,85
5. Tax preparation services, services regarding the development and
6administration of individual retirement accounts, Keogh plans, deferred
7compensation plans, and other personnel benefit plans, and financial counseling
8services, including, but not limited to, estate planning.
AB2-SSA1,8,119
6. Fixed asset services, including, but not limited to, the management,
10development, sale, or lease of fixed assets and the sale, lease, or servicing of computer
11hardware or software.
AB2-SSA1,8,1412
7. Insurance brokerage or agency services, including, but not limited to,
13providing vehicle warranty programs, providing group insurance purchasing
14programs, and acting as an agent for the sale of insurance.
AB2-SSA1,8,1615
8. Services with regard to the leasing of real property owned by the credit union
16service organization or personal property.
AB2-SSA1,8,1917
9. Loan support services, including, but not limited to, debt collection and loan
18processing, servicing, and sales services and services regarding the sale of
19repossessed collateral.
AB2-SSA1,8,2220
10. Record retention, security, and disaster recovery services, including, but
21not limited to, alarm monitoring, data storage and retrieval, and record storage
22services and providing forms and supplies.
AB2-SSA1,8,2323
11. Securities brokerage services.
AB2-SSA1,8,2424
12. Shared credit union branch operations.
AB2-SSA1,8,2525
13. Student loan origination services.
AB2-SSA1,9,1
114. Travel agency services.
AB2-SSA1,9,42
15. Trust and other fiduciary services, including, but not limited to, acting as
3an administrator for prepaid legal services plans or acting as a trustee, guardian,
4conservator, estate administrator, or in any other fiduciary capacity.
AB2-SSA1,9,55
16. Real estate brokerage services.
AB2-SSA1, s. 19
6Section
19. 186.11 (4) (bd) and (bh) of the statutes are created to read:
AB2-SSA1,9,157
186.11
(4) (bd) The office of credit unions may expand the list of services under
8par. (b) that are related to the routine daily operations of credit unions. Any service
9approved under this paragraph shall be authorized for all credit union service
10organizations under par. (a). A credit union may file a written request with the office
11of credit unions to exercise its authority under this paragraph and may include,
12along with the request, a description of any proposed service and an explanation of
13how that service is related to the routine daily operations of credit unions. Within
1460 days after receiving a request under this paragraph, the office of credit unions
15shall approve or disapprove the request.
AB2-SSA1,9,2216
(bh) A credit union service organization under par. (a) may provide any service
17described under par. (b) or approved under par. (bd) through an investment by the
18credit union service organization in a third-party service provider. The amount that
19a credit union service organization may invest in a third-party service provider
20under this paragraph may not exceed the amount necessary to obtain the applicable
21services, or a greater amount if necessary for the credit union service organization
22to obtain the services at a reduced cost.
AB2-SSA1, s. 20
23Section
20. 186.11 (4) (c) of the statutes is amended to read:
AB2-SSA1,9,2524
186.11
(4) (c) A
credit union service
corporation organization may be subject
25to audit by the office of credit unions.
AB2-SSA1, s. 21
1Section
21. 186.113 (1) of the statutes is amended to read:
AB2-SSA1,10,72
186.113
(1) Branch offices. If the need and necessity exist and with With the
3approval of the office of credit unions, establish branch offices inside
this state or no
4more than 25 miles or outside of this state. Permanent records may be maintained
5at branch offices established under this subsection. In this subsection, the term
6"branch office" does not include a remote terminal, a limited services office
, or a
7service center.
AB2-SSA1, s. 22
8Section
22. 186.113 (1m) (a) (intro.) of the statutes is amended to read:
AB2-SSA1,10,119
186.113
(1m) (a) (intro.)
Establish
Before the effective date of this paragraph
10.... [revisor inserts date], establish limited services offices outside this state to serve
11any member of the credit union if all of the following requirements are met:
AB2-SSA1, s. 23
12Section
23. 186.113 (6) (b) and (c) of the statutes are amended to read:
AB2-SSA1,10,1513
186.113
(6) (b) Act as trustees
or custodians of member tax deferred
retirement 14funds
, individual retirement accounts, medical savings accounts, or other employee
15benefit accounts or funds permitted by federal law to be deposited in a credit union.
AB2-SSA1,10,1716
(c) Act as a depository for
member-deferred member qualified and
17nonqualified deferred compensation funds as permitted by federal law.