3. Description of the existing policies relevant to the rule, new policies proposed to be included in the rule, and an analysis of policy alternatives:
With regard to mobile branches, the proposed rule serves the existing policies of (1)
expanding opportunities for consumers and businesses to obtain banking services, and (2) maintaining parity among depository financial institutions across charter types with regard to authorized activities. The alternative of not allowing state-chartered banks to utilize mobile branches is contrary to those policies and creates a needless inconsistency with state credit union law, which does not limit credit unions to permanent branches; with state law that applies to savings banks and savings and loan associations, which also does not limit such entities to permanent branches; and with federal law governing national banks, which may also utilize mobile and intermittent branches.
The proposed changes to collection agency rules serve the policies of clarifying the law for licensees in a manner consistent with both current industry practices and the need for continued regulatory supervision to protect the public.
The remainder of the proposed rules foster compliance with existing statutory policies requiring the elimination of obsolete rules, correction of cross-reference errors, elimination of conflicts with current statutes, and modification of existing rules to ensure consistency with current drafting conventions.
4. Detailed explanation of statutory authority for the rule (including the statutory citation and language):
With regard to state banks, the Division “by rule may, with the approval of the banking institutions review board, authorize state banks to . . . exercise any right, power, or privilege permitted national banks under federal law, regulation, or interpretation.” See Wis. Stat., s. 220.04 (8). The Division will seek the approval of the review board before submitting to the Legislature any rule promulgated under this statutory provision. With regard to savings and loan associations, the Division is required, subject to the approval of the review board, to “issue orders prescribing reasonable rules for conducting the business of associations, subject to the requirements of ch. 227.” See Wis. Stat., s. 215.02 (7) (a). The Division will seek the approval of the review board before submitting to the Legislature any rule promulgated under this statutory provision. With regard to savings banks, the Division is required to “promulgate rules” to supervise such institutions. See Wis. Stat., s. 214.715 (1) (d). With regard to collection agencies, the Division has the duty and authority to “make all necessary or proper orders, rules and regulations for the administration and enforcement of this section.” See Wis. Stat., s. 218.04 (7) (d). All other proposed amendments are non-substantive and seek to ensure that rules the Division administers are compliant with Wis. Stat., s. 227.14 (1), which requires that in drafting administrative rules “an agency shall adhere substantially to the form and style used by the legislative reference bureau in the preparation of bill drafts and the form and style specified in the manual prepared by the legislative council staff and the legislative reference bureau under s. 227.15 (7),” and with Wis. Stat., s. 227.29 (1), which directs agencies to address rules that are “unauthorized,” “obsolete or that have been rendered unnecessary,” or “duplicative of, superseded by, or in conflict with another rule, a state statute, a federal statute or regulation, or a ruling of a court of competent jurisdiction.” 5. Estimate of amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule:
75-150 hours
6. List with description of all entities that may be affected by the proposed rule:
The proposed changes relating to mobile and intermittent branches would affect state banks chartered under Wis. Stat., ch. 221. The proposed clarifications relating to collection agencies would affect collection agencies licensed with the Division under Wis. Stat., ch. 218, subch. III. The other proposed changes concern drafting style and the removal of obsolete provisions or cross-references, which are nonsubstantive in nature. 7. Summary and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule:
Branching by state-chartered financial institutions is generally a matter of state law, and there are no federal rules governing whether state-chartered banks, savings banks, or savings and loan associations may utilize mobile or intermittent branches. Federal regulations do govern national banks, however, and — unlike Wis. Admin. Code DFI-Bkg 8.01 (1) — those federal regulations define a branch bank to include “a seasonal agency described in 12 U.S.C. 36(c), a mobile facility, a temporary facility, or an intermittent facility.” 12 C.F.R. § 5.30 (d) (1) (i) 8. Anticipated economic impact of implementing the rule (note if the rule is likely to have a significant economic impact on small businesses):
These proposed rules would not have an immediate or measurable economic impact upon the Division or its licensees. While the availability of mobile branches may provide some economic benefit to the banks and customers who utilize them, those benefits are dependent on several variables and the Division is unable to estimate them in advance.
Contact Person:
Kim Swissdorf
Acting Administrator, Division of Banking
Wisconsin Department of Financial Institutions
PO Box 8861
Madison, WI 53708-8861
