SB520: Bill Text

SB520,13,16 220.285 (1) Any state bank, trust company bank, licensee under ss. 138.09, 138.12, 138.14, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, or 224.725 or ch. 217 may cause any or all records kept by such bank, licensee, or registered person 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 bank, may thereafter dispose of the original record. A licensee, or registered person may thereafter dispose of the original record after first obtaining the written consent of the division. This section, excepting that part of it which requires written consent of the division, is applicable to national banking associations insofar as it does not contravene federal law.

SB520,21 Section 21. 227.01 (13) (intro.) of the statutes is amended to read:

SB520,13,24 227.01 (13) (intro.) "Rule" means a regulation, standard, statement of policy, or general order of general application which has the effect of law and which is issued by an agency to implement, interpret, or make specific legislation enforced or administered by the agency or to govern the organization or procedure of the agency. "Rule" includes a modification of a rule under s. 227.265. "Rule" does not include, and s. 227.10 does not apply to, any action or inaction of an agency, whether it would otherwise meet the definition under this subsection, which:

SB520,22 Section 22. 227.01 (13) (yv) of the statutes is created to read:

SB520,14,1 227.01 (13) (yv) Relates to any determination or list under s. 186.118.

SB520,23 Section 23. 227.11 (2) (intro.) of the statutes is amended to read:

SB520,14,4 227.11 (2) (intro.) Rule-making authority is expressly conferred on an agency as follows:

SB520,24 Section 24. 227.265 of the statutes is created to read:

SB520,14,10 227.265 Repeal or modification of rules. If a bill to repeal or modify a rule is enacted, the procedures under ss. 227.114 to 227.21 and 227.26 do not apply. Instead, the legislative reference bureau shall publish the repeal or modification in the Wisconsin administrative code and register as required under s. 35.93, and the repeal or modification shall take effect as provided in s. 227.22.

SB520,25 Section 25. 227.27 (2) of the statutes is amended to read:

SB520,14,17 227.27 (2) The code shall be prima facie evidence in all courts and proceedings as provided by s. 889.01, but this does not preclude reference to or, in case of a discrepancy, control over a rule filed with the legislative reference bureau or the secretary of state under s. 227.20 or modified under s. 227.265, and the certified copy of a rule shall also and in the same degree be prima facie evidence in all courts and proceedings.

SB520,26 Section 26. DFI-Bkg 9.01 of the administrative code is repealed and recreated to read:

SB520,14,24 DFI-Bkg 9.01 Retention of records; destruction of records. (1) Each bank shall retain its records in a manner consistent with prudent business practices and in accordance with this chapter and other applicable state or federal laws, rules, and regulations. The record retention system utilized must be able to accurately produce such records.

SB520,15,4 (2) Except where a retention period is required by state or federal laws, rules, or regulations, a bank may destroy its records subject to the considerations set forth in sub. (1). In the destruction of records, the bank shall take reasonable precautions to assure the confidentiality of information in the records.

SB520,27 Section 27. DFI-Bkg 41.01 (intro.) of the administrative code is amended to read:

SB520,15,9 DFI-Bkg 41.01 License fee. (intro.) Except as provided in s. DFI-Bkg 47.04, the The following nonrefundable fees shall be submitted with an application for a license or renewal of a license under subch. III of ch. 224, Stats.:

SB520,28 Section 28. Chapter DFI-Bkg 47 of the administrative code is repealed.

SB520,29 Section 29. DFI-CU 54.05 (2) (b) 3. of the administrative code is amended to read:

SB520,15,14 DFI-CU 54.05 (2) (b) 3. A final title letter report showing the status of the current lien.

SB520,30 Section 30. DFI-CU 57.01 of the administrative code is amended to read:

SB520,15,24 DFI-CU 57.01 Retention of records. Each credit union shall retain its records in a manner consistent with prudent business practices and in accordance with this chapter and other applicable state or federal laws, rules, and regulations. The record retention system utilized must be able to accurately produce accurate and verifiable records and include an index to the retained forms. Each credit union shall retain its records for at least the minimum period specified in the January 1996 edition of the technical publication of the Financial Managers Society, Inc. of Chicago, Illinois, titled "Financial Institutions Record Retention Manual." such records.

SB520,31 Section 31. DFI-CU 57.01 (note) of the administrative code is repealed.

SB520,32 Section 32. DFI-CU 57.03 of the administrative code is amended to read:

SB520,16,7 DFI-CU 57.03 Destruction of records. Except where a longer retention period is required by other state or federal laws, rules, and or regulations, a credit union may destroy its records at the end of the applicable minimum retention period determined under subject to the considerations set forth in s. DFI-CU 57.01. In the destruction of records, the credit union shall take reasonable precautions to assure the confidentiality of information in the records.

SB520,33 Section 33. DFI-CU 59.03 (1) of the administrative code is amended to read:

SB520,16,12 DFI-CU 59.03 (1) The institutional security must have at least a "AA" rating by fitch investors service of New York City, or a comparable rating service be rated by a nationally recognized statistical rating organization in one of its 2 highest rating categories.

SB520,34 Section 34. DFI-CU 59.03 (6) of the administrative code is renumbered DFI-CU 59.03 (6) (a) and amended to read:

SB520,16,17 DFI-CU 59.03 (6) (a) An individual credit union may not invest more than $50,000 $100,000, subject to adjustment under par. (b), in securities issued by any one individual institution without the prior approval of the director of credit unions.

SB520,35 Section 35. DFI-CU 59.03 (6) (b) of the administrative code is created to read:

SB520,16,21 DFI-CU 59.03 (6) (b) 1. In this paragraph, "consumer price index" means the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor.

SB520,17,10 2. On July 1 of each even-numbered year beginning on July 1, 2016, the legislative fiscal bureau shall make a calculation of the percentage difference between the consumer price index for the 12-month period ending on December 31 of the preceding year and the consumer price index for the 12-month period ending on December 31 of the year that is 2 years before the preceding year and, if this percentage difference is a positive number, shall make a calculation of the dollar amount specified under par. (a) as adjusted by this percentage difference, rounded to the nearest multiple of $1,000. The legislative fiscal bureau shall notify the legislative reference bureau of these calculated amounts, and the legislative reference bureau shall publish these calculated amounts in the Wisconsin Administrative Register. If the calculated percentage difference is a positive number, then on the effective date of the Wisconsin Administrative Register, the amount under par. (a) is adjusted to reflect the calculated adjusted amount, as published.

SB520,36 Section 36. DFI-CU 60.01 (title) of the administrative code is amended to read:

SB520,17,13 DFI-CU 60.01 (title) Definitions Definition.

SB520,37 Section 37. DFI-CU 60.01 (1) of the administrative code is repealed.

SB520,38 Section 38. DFI-CU 60.01 (2) of the administrative code is renumbered DFI-CU 60.01 and amended to read:

SB520,17,20 DFI-CU 60.01 "Passbook In this chapter, "passbook savings account" means any book, statement of account, or similar record in which a running account of all moneys paid in or withdrawn by a credit union member on a savings account are recorded.

SB520,39 Section 39. DFI-CU 60.03 of the administrative code is amended to read:

SB520,17,25 DFI-CU 60.03 Certificates of deposit Time deposits. (1) The board of directors shall establish the policy with regard to maturities and minimum denominations for each classification of certificates of time deposit. This policy shall be reviewed from time to time as conditions require.

SB520,18,4 (2) (a) At least 10 days prior to the maturity of a certificate of time deposit, the credit union shall provide the holder written notice which sets forth the terms and options available to the holder with regard to continuation or renewal of the certificate time deposit.

SB520,18,10 (b) If the credit union elects not to renew a certificate of time deposit, the credit union shall send the holder a clear notice of this intent at least 10 days prior to the maturity of the certificate time deposit. If a member is duly notified of the intention not to renew, it shall be optional with the credit union whether dividends will continue to be paid after maturity on certificates of deposit time deposits not surrendered at maturity date.

SB520,18,13 (3) At the option of the credit union, additional deposits may be permitted to certificate of time deposit accounts without extending the original maturity of the certificate time deposit.

SB520,18,15 (4) The information contained in s. DFI-CU 60.06 shall be disclosed on all certificates of deposit time deposits or accompanying disclosure forms.

SB520,40 Section 40. DFI-CU 60.05 (1) and (2) of the administrative code are amended to read:

SB520,19,2 DFI-CU 60.05 (1) The board of directors shall establish the policy with regard to the penalties for early withdrawal from certificate of time deposit accounts or passbook savings accounts with stated maturities. Early withdrawal penalties may be enforced up to the maximum permitted by the depository institutions deregulation committee for similar types of accounts held in banks and savings and loan associations. If early withdrawal penalties are enforced by a credit union, these penalties shall be applied in a consistent manner to all accounts of a similar classification. This policy shall state the conditions under which penalties may be waived or modified.

SB520,19,5 (2) Penalties imposed for early withdrawal from certificate of time deposit accounts or passbook savings accounts with maturities may be deducted from the principal amount of the certificate time deposit or account balance.

SB520,41 Section 41. DFI-CU 60.06 of the administrative code is amended to read:

SB520,19,13 DFI-CU 60.06 Credit union dissolution. The liability for dividends declared by the board of directors on certificate of time deposit accounts and passbook savings accounts shall terminate without penalty to the credit union upon the credit union entering an involuntary dissolution procedure, or if the director shall take possession of the credit union under s. 186.235 (11), Stats. Upon dissolution, the director shall determine the priority of payout of the various classifications of savings.

SB520,42 Section 42. DFI-CU 61 (title) of the administrative code is amended to read:

SB520,19,18 DFI-CU 61 (title) CREDIT UNION PURCHASE OR ACQUISITION OF CONDITIONAL SALES CONTRACTS OR SIMILAR INSTRUMENTS EXECUTED BY CREDIT UNION MEMBERS INTERESTS IN CREDIT SALES TRANSACTIONS

SB520,43 Section 43. DFI-CU 61.01 (1) of the administrative code is renumbered DFI-CU 61.01 and amended to read:

SB520,20,2 DFI-CU 61.01 Limitations. Subject to the following minimum requirements, credit unions with assets of $1,000,000 or more may purchase or acquire conditional sales contracts or similar instruments executed interests in credit sales transactions entered into by their members. Credit unions with assets of less than $1,000,000 may do so subject to the following minimum requirements, only with the prior, written approval of the director.

SB520,44 Section 44. DFI-CU 61.02 (1) and (2) of the administrative code are amended to read:

SB520,20,11 DFI-CU 61.02 (1) The maximum interest rate (finance charge) chargeable to the member-borrower by a seller on a conditional sales contract or similar instrument sold to in a credit sales transaction involving a credit union shall not exceed that permitted by s. 422.201, Stats. On such contracts In such transactions, neither the seller nor the credit union, in the aggregate, may directly benefit by interest charges, including "Time Price Differential", processing or service fees by an amount in excess of that permitted by s. 422.201, Stats.

SB520,20,16 (2) The interest rate or finance charges on conditional sales contracts and similar instruments in credit sales transactions and on all loans shall be calculated and applied on a simple interest basis on the unpaid balance. "Add-on" or "Discount" interest rates on purchased contracts interests in these transactions and on other credit union loans are not permitted.

SB520,45 Section 45. DFI-CU 61.03 (1), (2) and (3) of the administrative code are amended to read:

SB520,20,22 DFI-CU 61.03 (1) Subject to the discretion of the board of directors a portion of interest charges (finance charges) on purchased contracts interests in credit sales transactions may be shared by the credit union with the seller subject, however, to s. DFI-CU 61.02.

SB520,21,2 (2) When interest income (finance charges) is shared with the seller, on contracts interests in credit sales transactions purchased with recourse, the credit union shall establish as a liability on its records, a dealer reserve. This reserve shall be adjusted and negotiated with the seller at least annually on the basis of the interest which has been accrued or earned.

SB520,21,6 (3) On contracts interests in credit sales transactions purchased without recourse, the shared interest (finance charges) paid to the seller must be set up as a deferred charge and applied at least semi-annually to the income received on those contracts interests.

SB520,46 Section 46. DFI-CU 61.04 of the administrative code is amended to read:

SB520,21,12 DFI-CU 61.04 Dealer financial statements. Credit unions purchasing member contracts interests in credit sales transactions made with recourse must secure annual sworn financial statements from each participating seller until the purchased contracts interests have been paid. These sworn financial statements are to be retained by the credit union for review by departmental examiners.

SB520,47 Section 47. Chapter DFI-CU 65 of the administrative code is repealed.

SB520,48 Section 48. DFI-CU 66.02 (2) (note) of the administrative code is repealed.

SB520,49 Section 49. DFI-CU 67.01 of the administrative code is amended to read:

SB520,21,19 DFI-CU 67.01 Purpose. The director may accept an audit report of a certified public accountant who is not an employee of the credit union in lieu of all or a portion of the routine examination which is made by or caused to be made by the director as required by s. 186.235 (16), Stats.

SB520,50 Section 50. DFI-CU 67.02 (2) of the administrative code is amended to read:

SB520,21,22 DFI-CU 67.02 (2) "Accountant" means a certified public accountant who is not an employee of the credit union and is licensed in the state of Wisconsin.

SB520,51 Section 51. DFI-CU 67.03 (8) of the administrative code is amended to read:

SB520,21,25 DFI-CU 67.03 (8) The credit union is operating in accordance with regular generally accepted credit union accounting principles.

SB520,52 Section 52. DFI-CU 67.04 (3) and (3) (note) of the administrative code are repealed.

SB520,53 Section 53. DFI-CU 67.04 (4) of the administrative code is amended to read:

SB520,22,8 DFI-CU 67.04 (4) The credit union requesting the director to accept an audit by an accountant shall pay to the director the current hourly examination fee established by s. 186.235 (14) (c), Stats., for the review and analysis of the audit report, and management report and the special report on the forms supplied by the director.

SB520,54 Section 54. DFI-CU 67.05 (1) of the administrative code is amended to read:

SB520,22,12 DFI-CU 67.05 (1) The director will analyze and review or cause to have analyzed or reviewed the reports and worksheets required by s. DFI-CU 67.04 (2) and (3) and determine if they satisfy s. DFI-CU 67.03.

SB520,55 Section 55. DFI-CU 68.02 (note) of the administrative code is repealed.

SB520,56 Section 56. DFI-CU 68.03 (2) of the administrative code is amended to read:

SB520,22,17 DFI-CU 68.03 (2) "Authorized depository financial institution" means any bank insured by the federal deposit insurance corporation or savings and loan association insured by the federal savings and loan deposit insurance corporation.

SB520,57 Section 57. DFI-CU 68.06 (2) of the administrative code is amended to read:

SB520,22,25 DFI-CU 68.06 (2) Authorized depository financial institutions. A credit union may invest in deposit accounts of any authorized depository financial institution, provided the aggregate investment per institution shall not exceed the greater of the deposit insurance limit under federal deposit insurance corporation or federal savings and loan insurance corporation or 1/2 the unimpaired balance of the credit union's regular reserve unless the director of credit unions approves investment by the credit union exceeding this amount.

SB520,58 Section 58. Chapter DFI-CU 70 of the administrative code is repealed.

SB520,59 Section 59. DFI-CU 72.12 and 72.13 of the administrative code are repealed.

SB520,60 Section 60. Chapter DFI-CU 74 of the administrative code is repealed.

SB520,61 Section 61. DFI-SL 6.01 of the administrative code is amended to read:

SB520,23,12 DFI-SL 6.01 Destruction of records. Except where a longer retention period is required by another state or federal agency having jurisdiction over the association, the division authorizes the destruction of records at the end of the applicable minimum retention period determined under laws, rules, or regulations, an association may destroy its records subject to the considerations set forth in s. DFI-SL 6.03. In the destruction of records, the association shall take reasonable precautions should be taken to assure the confidentiality of members' accounts information in the records.

SB520,62 Section 62. DFI-SL 6.03 of the administrative code is amended to read:

SB520,23,21 DFI-SL 6.03 Records retention requirements. Each association shall retain its records in a manner consistent with prudent business practices and in accordance with this chapter and the other applicable state or federal laws, rules or , and regulations of state or federal agencies. Each association shall retain its records for the minimum period specified in the technical publication of the Financial Managers Society, Inc. of Chicago, Illinois, titled "Records Retention Guidelines" and dated July 1986. The record retention system utilized must be able to accurately produce such records.

SB520,63 Section 63. DFI-SB 6.01 of the administrative code is amended to read:

SB520,24,5 DFI-SB 6.01 Retention of records. Each savings bank shall retain its records in a manner consistent with prudent business practices and in accordance with this chapter and the other applicable state or federal laws, rules of state agencies, and regulations of federal agencies. Each savings bank shall retain its records for the minimum period specified in the technical publication of the Financial Managers Society, Inc. of Chicago, Illinois, titled "Records Retention Guidelines" and dated 1992. The record retention system utilized must be able to accurately produce such records.

SB520,64 Section 64. DFI-SB 6.01 (second note) of the administrative code is repealed.

SB520,65 Section 65. DFI-SB 6.03 of the administrative code is amended to read: