AB133-ASA1-AA2,398,15 4(4) Profit-participation projects. A universal bank may take equity positions
5in profit-participation projects, including projects funded through loans from the
6universal bank, in an aggregate amount not to exceed 20% of capital. The division
7may suspend the investment authority under this subsection. If the division
8suspends the investment authority under this subsection, the division may specify
9how outstanding investments under this subsection shall be treated by the universal
10bank or its subsidiary. Among the factors that the division may consider in
11suspending authority under this subsection are the universal bank's capital
12adequacy, asset quality, earnings quantity, earnings quality, adequacy of liquidity
13and sensitivity to market risk and the ability of the universal bank's management.
14This subsection does not authorize a universal bank, directly or indirectly through
15a subsidiary, to engage in the business of underwriting insurance.
AB133-ASA1-AA2,398,18 16(5) Debt investments. A universal bank may invest in bonds, notes, obligations
17and liabilities described under s. 222.0403 (3) to (7), subject to the limitations under
18those subsections.
AB133-ASA1-AA2,398,20 19(6) Certain liabilities. This section does not limit investment in the
20liabilities described in s. 222.0403 (8).
AB133-ASA1-AA2,398,22 21(7) Certain investments. A universal bank may invest without limitation in
22any of the following:
AB133-ASA1-AA2,398,2523 (a) Business development corporations. Stocks or obligations of a corporation
24organized for business development by this state or by the United States or by an
25agency of this state or the United States.
AB133-ASA1-AA2,399,2
1(b) Urban renewal investment corporations. Obligations of an urban renewal
2investment corporation organized under the laws of this state or of the United States.
AB133-ASA1-AA2,399,73 (c) Certain bank insurance companies. An equity interest in an insurance
4company or an insurance holding company organized to provide insurance for
5universal banks and for persons affiliated with universal banks, solely to the extent
6that this ownership is a prerequisite to obtaining directors' and officers' insurance
7or blanket bond insurance for the universal bank through the company.
AB133-ASA1-AA2,399,118 (d) Certain remote service unit corporations. Shares of stock, whether
9purchased or otherwise acquired, in a corporation acquiring, placing and operating
10remote service units under s. 214.04 (21) or 215.13 (46) or bank communications
11terminals under s. 221.0303 (2).
AB133-ASA1-AA2,399,1312 (e) Service corporations. Equity or debt securities or instruments of a service
13corporation subsidiary of the universal bank.
AB133-ASA1-AA2,399,1414 (f) Federal funds. Advances of federal funds.
AB133-ASA1-AA2,399,1815 (g) Certain risk management financial products. With the prior written
16approval of the division, financial futures transactions, financial options
17transactions, forward commitments or other financial products for the purpose of
18reducing, hedging or otherwise managing its interest rate risk exposure.
AB133-ASA1-AA2,399,2019 (h) Certain fiduciaries. A subsidiary organized to exercise corporate fiduciary
20powers under ch. 112.
AB133-ASA1-AA2,399,2421 (i) Agricultural credit corporations. An agricultural credit corporation. Unless
22a universal bank owns at least 80% of the stock of the agricultural credit corporation,
23a universal bank may not invest more than 20% of the universal bank's capital in the
24agricultural credit corporation.
AB133-ASA1-AA2,400,3
1(j) Deposit accounts and insured obligations. Deposit accounts or insured
2obligations of any financial institution, the accounts of which are insured by a deposit
3insurance corporation.
AB133-ASA1-AA2,400,94 (k) Certain federal obligations. Obligations of, or obligations that are fully
5guaranteed by, the United States and stocks or obligations of any federal reserve
6bank, federal home loan bank, the Student Loan Marketing Association, the
7Government National Mortgage Association, the Federal National Mortgage
8Association, the Federal Home Loan Mortgage Corporation or the Federal Deposit
9Insurance Corporation.
AB133-ASA1-AA2,400,1010 (L) Other investments. Any other investment authorized by the division.
AB133-ASA1-AA2,400,13 11(8) Investments in other financial institutions. In addition to the authority
12granted under ss. 222.0307 and 222.0409, and subject to the limitations of sub. (2),
13a universal bank may invest in other financial institutions.
AB133-ASA1-AA2,400,17 14(9) Investments through subsidiaries. A universal bank may make
15investments under this section, directly or indirectly through a subsidiary, unless
16the division determines that an investment shall be made through a subsidiary with
17appropriate safeguards to limit the risk exposure of the universal bank.
AB133-ASA1-AA2,400,20 18222.0407 Universal bank purchase of its own stock. (1) In general. A
19universal bank may hold or purchase not more than 10% of its capital stock, notes
20or debentures, except as provided in sub. (2) or (3).
AB133-ASA1-AA2,400,22 21(2) Division approval. A universal bank may hold or purchase more than 10%
22of its capital stock, notes or debentures, if approved by the division.
AB133-ASA1-AA2,401,9 23(3) Additional authority. A universal bank may hold or purchase more than
2410% of its capital stock, notes or debentures if the purchase is necessary to prevent
25loss upon a debt previously contracted in good faith. Stock, notes or debentures held

1or purchased under this subsection may not be held by the universal bank for more
2than 6 months if the stock, notes or debentures can be sold for the amount of the claim
3of the universal bank against the holder of the debt previously contracted. The
4universal bank shall either sell the stock, notes or debentures within 12 months of
5acquisition under this subsection or shall cancel the stock, notes or debentures.
6Cancellation of the stock, notes or debentures reduces the amount of the universal
7bank's capital stock, notes or debentures. If the reduction reduces the universal
8bank's capital below the minimum level required by the division, the universal bank
9shall increase its capital to the amount required by the division.
AB133-ASA1-AA2,401,15 10(4) Loans secured by capital, surplus or deposits. A universal bank may not
11loan any part of its capital, surplus or deposits on its own capital stock, notes or
12debentures as collateral security, except that a universal bank may make a loan
13secured by its own capital stock, notes or debentures to the same extent that the
14universal bank may make a loan secured by the capital stock, notes and debentures
15of a holding company for the universal bank.
AB133-ASA1-AA2,401,20 16222.0409 Stock in bank-owned banks. With the approval of the division,
17a universal bank may acquire and hold stock in one or more banks chartered under
18s. 221.1202 or national banks chartered under 12 USC 27 (b) or in one or more
19holding companies wholly owning such a bank. Aggregate investments under this
20section may not exceed 10% of the universal bank's capital.
AB133-ASA1-AA2,401,25 21222.0411 General deposit powers. (1) In general. A universal bank may
22set eligibility requirements for, and establish the types and terms of, deposits that
23the universal bank solicits and accepts. The terms set under this subsection may
24include minimum and maximum amounts that the universal bank may accept and
25the frequency and computation method of paying interest.
AB133-ASA1-AA2,402,3
1(2) Pledge of security for deposits. Subject to the limitations of s. 221.0324
2that are applicable to banks, a universal bank may pledge its assets as security for
3deposits.
AB133-ASA1-AA2,402,6 4(3) Securitization of assets. With the approval of the division, a universal
5bank may securitize its assets for sale to the public. The division may establish
6procedures governing the exercise of authority granted under this subsection.
AB133-ASA1-AA2,402,20 7(4) Safe deposit powers. A universal bank may take and receive, from any
8individual or corporation for safekeeping and storage, gold and silver plate, jewelry,
9money, stocks, securities, and other valuables or personal property; and rent out the
10use of safes or other receptacles upon its premises upon such compensation as may
11be agreed upon. A universal bank has a lien for its charges on any property taken
12or received by it for safekeeping. If the lien is not paid within 2 years from the date
13the lien accrues, or if property is not called for by the person depositing the property,
14or by his or her representative or assignee, within 2 years from the date the lien
15accrues, the universal bank may sell the property at public auction. A universal bank
16shall provide the same notice for a sale under this subsection that is required by law
17for sales of personal property on execution. After retaining from the proceeds of the
18sale all of the liens and charges due the bank and the reasonable expenses of the sale,
19the universal bank shall pay the balance to the person depositing the property, or to
20his or her representative or assignee.
AB133-ASA1-AA2,402,25 21222.0413 Other service and incidental activity powers. (1) Necessary
22or convenient powers.
Unless otherwise prohibited or limited by this chapter, a
23universal bank may exercise all powers necessary or convenient to effect the
24purposes for which the universal bank is organized or to further the businesses in
25which the universal bank is lawfully engaged.
AB133-ASA1-AA2,403,10
1(2) Reasonably related powers. (a) Subject to any applicable state or federal
2regulatory or licensing requirements, a universal bank may engage, directly or
3indirectly through a subsidiary, in activities reasonably related or incident to the
4purposes of the universal bank. Activities reasonably related or incident to the
5purposes of the universal bank are those activities that are part of the business of
6financial institutions, or closely related to the business of financial institutions, or
7convenient and useful to the business of financial institutions, or reasonably related
8or incident to the operation of financial institutions or are financial in nature.
9Activities that are reasonably related or incident to the purposes of a universal bank
10include the following:
AB133-ASA1-AA2,403,1111 1. Business and professional services.
AB133-ASA1-AA2,403,1212 2. Data processing.
AB133-ASA1-AA2,403,1313 3. Courier and messenger services.
AB133-ASA1-AA2,403,1414 4. Credit-related activities.
AB133-ASA1-AA2,403,1515 5. Consumer services.
AB133-ASA1-AA2,403,1616 6. Real estate-related services, including real estate brokerage services.
AB133-ASA1-AA2,403,1717 7. Insurance and related services, other than insurance underwriting.
AB133-ASA1-AA2,403,1818 8. Securities brokerage.
AB133-ASA1-AA2,403,1919 9. Investment advice.
AB133-ASA1-AA2,403,2020 10. Securities and bond underwriting.
AB133-ASA1-AA2,403,2121 11. Mutual fund activities.
AB133-ASA1-AA2,403,2222 12. Financial consulting.
AB133-ASA1-AA2,403,2323 13. Tax planning and preparation.
AB133-ASA1-AA2,403,2424 14. Community development and charitable activities.
AB133-ASA1-AA2,403,2525 15. Debt cancellation contracts.
AB133-ASA1-AA2,404,2
116. Any activities reasonably related or incident to activities under subds. 1.
2to 15.
AB133-ASA1-AA2,404,103 (b) An activity that is authorized by statute or regulation for financial
4institutions to engage in as of the effective date of this paragraph .... [revisor inserts
5date], is an activity that is reasonably related to or incident to the purposes of a
6universal bank. An activity permitted under the Bank Holding Company Act is an
7activity that is reasonably related to or incident to the purposes of a universal bank.
8The list of activities reasonably related or incident to the purposes of a universal
9bank may be expanded by the division. Any additional activity approved by the
10division shall be authorized for all universal banks.
AB133-ASA1-AA2,404,13 11(3) Notice requirement. A universal bank shall give 60 days' prior written
12notice to the division of the universal bank's intention to engage in an activity under
13this section.
AB133-ASA1-AA2,404,20 14(4) Standards for denial. The division may deny the authority of a universal
15bank to engage in an activity under this section, other than those activities described
16in sub. (2) (a) 1. to 16., if the division determines that the activity is not an activity
17reasonably related or incident to the purposes of a universal bank, that the financial
18institution is not well-capitalized or adequately capitalized, that the financial
19institution is the subject of an enforcement action or that the financial institution
20does not have satisfactory management expertise for the proposed activity.
AB133-ASA1-AA2,404,24 21(5) Insurance intermediation. A universal bank, or an officer or salaried
22employe of a universal bank, may obtain a license as an insurance intermediary, if
23otherwise qualified. A universal bank may not, directly or indirectly through a
24subsidiary, engage in the business of underwriting insurance.
AB133-ASA1-AA2,405,2
1(6) Other activities approved by the division. A universal bank may engage
2in any other activity that is approved by rule of the division.
AB133-ASA1-AA2,405,6 3(7) Activities provided through a subsidiary. A universal bank may engage
4in activities under this section, directly or indirectly through a subsidiary, unless the
5division determines that an activity must be conducted through a subsidiary with
6appropriate safeguards to limit the risk exposure of the universal bank.
AB133-ASA1-AA2,405,12 7(8) Limitations on investments through subsidiaries. The amount of the
8investment in any one subsidiary that engages in an activity under this section may
9not exceed 20% of capital or, if approved by the division, a higher percentage
10authorized by the division. The aggregate investment in all subsidiaries that engage
11in an activity under this subsection may not exceed 50% of capital or, if approved by
12the division, a higher percentage authorized by the division.
AB133-ASA1-AA2,405,15 13(9) Ownership of subsidiaries. A subsidiary that engages in an activity under
14this section may be owned jointly, with one or more other financial institutions,
15individuals or entities.
AB133-ASA1-AA2,405,17 16222.0415 Trust powers. Subject to rules of the division, a universal bank may
17exercise trust powers in accordance with s. 221.0316.
AB133-ASA1-AA2, s. 2347a 18Section 2347a. 223.105 (3) (a) of the statutes is amended to read:
AB133-ASA1-AA2,405,2519 223.105 (3) (a) To assure compliance with such rules as may be established
20under s. 220.04 (7) the division of banking, the office of credit unions and the division
21of savings and loan institutions shall, at least once every 18 months, examine the
22fiduciary operations of each organization which is under its respective jurisdiction
23and is subject to examination under sub. (2). If a particular organization subject to
24examination under sub. (2) is not otherwise under the jurisdiction of one of the
25foregoing agencies, such examination shall be conducted by the division of banking.
AB133-ASA1-AA2, s. 2348a
1Section 2348a. 223.105 (4) of the statutes is amended to read:
AB133-ASA1-AA2,406,112 223.105 (4) Notice of fiduciary operation. Except for those organizations
3licensed under ch. 221 or this chapter, any organization engaged in fiduciary
4operations as defined in this section shall, as required by rule, notify the division of
5banking, the office of credit unions or the division of savings and loan institutions of
6that fact, directing the notice to the agency then exercising regulatory authority over
7the organization or, if there is none, to the division of banking. Any organization
8which intends to engage in fiduciary operations shall, prior to engaging in such
9operations, notify the appropriate agency of this intention. The notifications
10required under this subsection shall be on forms and contain information required
11by the rules promulgated by the division of banking.
AB133-ASA1-AA2, s. 2349a 12Section 2349a. 223.105 (5) of the statutes is amended to read:
AB133-ASA1-AA2,406,1913 223.105 (5) Enforcement remedy. The division of banking or the division of
14savings and loan institutions or office of credit unions shall upon the failure of such
15organization to submit notifications or reports required under this section or
16otherwise to comply with the provisions of this section, or rules established by the
17division of banking under s. 220.04 (7), upon due notice, order such defaulting
18organization to cease and desist from engaging in fiduciary activities and may apply
19to the appropriate court for enforcement of such order.
AB133-ASA1-AA2, s. 2350a 20Section 2350a. 223.105 (6) of the statutes is amended to read:
AB133-ASA1-AA2,407,221 223.105 (6) Sunset. Except for an organization regulated by the office of credit
22unions or the division of savings and loan institutions or an organization authorized
23by the division of banking to operate as a bank or trust company under ch. 221 or this
24chapter, an organization may not begin activity as a fiduciary operation under this
25section after May 12, 1992. An organization engaged in fiduciary operations under

1this section on May 12, 1992, may continue to engage in fiduciary operations after
2that date.".
AB133-ASA1-AA2,407,3 3895. Page 1193, line 20: delete lines 20 to 25.
AB133-ASA1-AA2,407,4 4896. Page 1194, line 1: delete lines 1 to 3.
AB133-ASA1-AA2,407,5 5897. Page 1194, line 9: after that line insert:
AB133-ASA1-AA2,407,6 6" Section 2353sm. 227.01 (13) (zu) of the statutes is created to read:
AB133-ASA1-AA2,407,77 227.01 (13) (zu) Establishes standards under subch. IX of ch. 254.".
AB133-ASA1-AA2,407,8 8898. Page 1194, line 9: after that line insert:
AB133-ASA1-AA2,407,9 9" Section 2353t. 227.01 (13) (ym) of the statutes is repealed.
AB133-ASA1-AA2, s. 2353u 10Section 2353u. 227.01 (13) (zi) of the statutes is repealed.".
AB133-ASA1-AA2,407,11 11899. Page 1194, line 10: delete lines 10 to 13.
AB133-ASA1-AA2,407,12 12900. Page 1194, line 13: after that line insert:
AB133-ASA1-AA2,407,13 13" Section 2355mm. 227.14 (1s) of the statutes is created to read:
AB133-ASA1-AA2,407,1814 227.14 (1s) Exception; preparation of certain rules based on federal food
15code.
Notwithstanding sub. (1), if the department of agriculture, trade and
16consumer protection or the department of health and family services prepares a
17proposed rule based on the model food code published by the federal food and drug
18administration, the proposed rule may be in the format of the model food code.".
AB133-ASA1-AA2,407,19 19901. Page 1194, line 20: after that line insert:
AB133-ASA1-AA2,407,20 20" Section 2357a. 227.52 (5) of the statutes is amended to read:
AB133-ASA1-AA2,407,2121 227.52 (5) Decisions of the division of savings and loan institutions.
AB133-ASA1-AA2, s. 2358a 22Section 2358a. 227.53 (1) (b) 4. of the statutes is amended to read:
AB133-ASA1-AA2,408,4
1227.53 (1) (b) 4. The savings and loan review board, the division of savings and
2loan
institutions, except if the petitioner is the division of savings and loan
3institutions, the prevailing parties before the savings and loan review board shall be
4the named respondents.
AB133-ASA1-AA2, s. 2359a 5Section 2359a. 227.53 (1) (b) 5. of the statutes is amended to read:
AB133-ASA1-AA2,408,96 227.53 (1) (b) 5. The savings bank review board, the division of savings and loan
7institutions, except if the petitioner is the division of savings and loan institutions,
8the prevailing parties before the savings bank review board shall be the named
9respondents.".
AB133-ASA1-AA2,408,10 10902. Page 1194, line 20: after that line insert:
AB133-ASA1-AA2,408,11 11" Section 2359f. 229.41 (8m) of the statutes is created to read:
AB133-ASA1-AA2,408,1212 229.41 (8m) "Labor organization" has the meaning given in s. 5.02 (8m).".
AB133-ASA1-AA2,408,13 13903. Page 1195, line 5: after that line insert:
AB133-ASA1-AA2,408,14 14" Section 2359j. 229.44 (4) (d) of the statutes is amended to read:
AB133-ASA1-AA2,408,1915 229.44 (4) (d) Enter into contracts. All contracts, the estimated costs of which
16exceed $30,000, are subject to s. 229.46 (8), except contracts subject to s. 229.46 (5)
17and contracts for personal or professional services,. The contracts shall be subject
18to bid and shall be awarded to the lowest qualified and competent bidder. The district
19may reject any bid that is submitted under this paragraph.
AB133-ASA1-AA2, s. 2359k 20Section 2359k. 229.46 (8) of the statutes is created to read:
AB133-ASA1-AA2,408,2321 229.46 (8) (a) The district shall ensure that the specifications for bids and
22contracts for construction projects entered into under this subchapter do not do any
23of the following:
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