AB807: Bill Text

AB807,5,22 186.235 (7) (b) 3. Provide examination reports to a credit union's attorneys, independent certified public accountants, or other consultants or advisers who have agreed in writing to maintain the confidentiality of the reports.

AB807,12 Section 12. 186.235 (7m) of the statutes is amended to read:

AB807,6,4 186.235 (7m) Return of examination reports. Examination reports possessed by a credit union are confidential, remain the property of the office of credit unions, and shall be returned to the office of credit unions immediately upon request. This subsection does not prohibit a credit union from providing an examination report to its attorneys, independent certified public accountants, or other consultants or advisers who have agreed in writing to maintain the confidentiality of the report.

AB807,13 Section 13. 186.235 (16) of the statutes is renumbered 186.235 (16) (a) and amended to read:

AB807,6,12 186.235 (16) (a) At Except as provided in par. (b), at least once every 18 months, the office of credit unions shall examine the records and accounts of each credit union. For that purpose the office of credit unions shall have full access to, and may compel the production of, each credit union's records and accounts. The office of credit unions may administer oaths to and examine each credit union's officers and agents.

AB807,14 Section 14. 186.235 (16) (b) of the statutes is created to read:

AB807,6,16 186.235 (16) (b) In lieu of the examination under par. (a), the office of credit unions may accept an examination conducted by the national credit union administration.

AB807,15 Section 15. 186.70 (title) of the statutes is amended to read:

AB807,6,18 186.70 (title) Record search; members' inspection of records.

AB807,16 Section 16. 186.70 of the statutes is renumbered 186.70 (1) and amended to read:

AB807,7,6 186.70 (1) A credit union is entitled to reimbursement for expenses and costs incurred in searching for, reproducing and transporting books, papers, records and other data required to be produced by legal process, unless otherwise prohibited by law from collecting these expenses and costs or unless the person seeking the production is a government unit, as defined in s. 108.02 (17). The expenses and costs shall be paid by persons seeking such production. If a credit union is entitled to reimbursement under this section subsection, a credit union may not be required to produce books, papers, records and other data in response to legal process unless the expenses and costs, identified in an itemized invoice to be provided by the credit union, are paid or unless payment is tendered to the credit union in cash or by certified check or draft.

AB807,17 Section 17. 186.70 (2) of the statutes is created to read:

AB807,7,10 186.70 (2) (a) A group of members of a credit union has the right, upon submission of a petition to the credit union that satisfies the requirements under par. (b), to inspect and copy nonconfidential portions of all of the following:

AB807,7,11 1. The credit union's accounting books and records.

AB807,7,13 2. The credit union's minutes of the proceedings of the credit union's members, board of directors, and committees of directors.

AB807,8,6 (b) The petition under par. (a) shall describe the particular records to be inspected and state a proper purpose for the inspection, which must be a purpose related to the protection of the members' financial interests in the credit union. The petition shall state that the petitioners as a whole, or certain named petitioners, agree to pay the direct and reasonable costs associated with search and duplication of requested material. The petition shall also state that the inspection is not desired for any purpose other than the stated purpose; that the members signing the petition will not sell or offer for sale any information obtained from the credit union; and that the members signing the petition have not within 5 years immediately preceding the signature date sold or offered for sale any information acquired from the credit union or aided or abetted any person in procuring any information from the credit union for purposes of sale. The petition shall name one member, and one alternate member, who shall represent the petitioners on issues such as inspection procedures, costs, and potential disputes. At least one percent of the credit union's members, with a minimum of 20 members and a maximum of 500 members, must sign the petition. Each member who signs the petition must have been a member of the credit union for at least 180 days at the time the petitioners submit the petition to the credit union.

AB807,8,14 (c) 1. A credit union shall respond to petitioners within 14 days of receiving a petition under par. (b). In its response, a credit union shall inform petitioners either that it will provide inspection of the requested material and, if so, when, or, if a credit union is going to withhold all or part of the requested material, it shall inform petitioners what part of the requested material it intends to withhold and the reasons for withholding the requested material. As soon as possible after receiving a petition, a credit union shall schedule inspection and copying of nonconfidential requested material it determines petitioners may inspect and copy.

AB807,8,19 2. Inspection may be made in person or by agent or attorney and at any reasonable time. The credit union may, at its option, skip inspection and deliver copies of requested documents directly to the petitioners. Member inspection rights under this subsection are in addition to any other member inspection rights afforded by the credit union's charter or bylaws or other statutory provisions or rules.

AB807,8,22 3. If the credit union denies inspection because the petitioners have failed to obtain the minimum number of valid signatures, the credit union shall inform the petitioners which signatures were not valid and why.

AB807,8,24 (d) Members do not have the right to inspect any portion of the books, records, or minutes of a credit union if any of the following applies:

AB807,8,25 1. Statutory provisions or rules prohibit disclosure of that portion.

AB807,9,2 2. The publication of that portion could cause the credit union predictable and substantial financial harm.

AB807,9,4 3. That portion contains nonpublic personal information, as defined in 12 CFR 1016.3.

AB807,9,7 4. That portion contains information about credit union employees or officials the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.

AB807,9,10 (e) A credit union may charge petitioners the direct and reasonable costs associated with search and duplication. The credit union may not charge for other costs, including indirect costs or attorney fees.

AB807,9,17 (f) In the event of a dispute between a credit union and its members concerning a petition for inspection or the associated costs, either party may submit the dispute to the director of the office of credit unions. The director, after obtaining the views of both parties, shall direct the credit union either to withhold the disputed materials or to make them available for member inspection and copying. The director may place conditions upon release. The decision of the director is a final agency decision and is not appealable to the credit union review board.

AB807,18 Section 18. DFI-CU 63.03 of the administrative code is amended to read:

AB807,9,25 DFI-CU 63.03 Advance notice and approval required. Each credit union proposing to engage in an activity authorized under s. 186.113 (15), Stats., or proposing to change the place or manner in which it engages in such an activity, shall file with the director an application a written notice containing such information as the director may from time to time prescribe. If the director regularly receives information on additions, deletions or changes in locations of remote terminals from a supplier, a credit union is excused from filing an application a written notice merely to change the place at which it offers the services. No credit union may commence any such activity unless the place and manner in which the activity is conducted has been approved by the director in writing or the director does not take written objection to the credit union's completed application within 30 days after it has been filed until the credit union has filed the written notice under this section. A credit union may not commence or continue to engage in any activity authorized under s. 186.113 (15), Stats., if, in the opinion of the director, the activity is beyond the financial or management capabilities of the credit union, would result in unfair competition among financial institutions, or is otherwise in violation of this chapter.

AB807,19 Section 19. DFI-CU 69.02 of the administrative code is amended to read:

AB807,10,13 DFI-CU 69.02 Definition. In this chapter, "official" means any director, executive officer, loan officer, credit committee member or internal auditor of a credit union.

AB807,10,14 (End)