Amendment SA1-SSA1-AB133

AB133-SSA1-SA1,315,10 186.113 (1m) (a) (intro.) Establish Before the effective date of this paragraph .... [revisor inserts date], establish limited services offices outside this state to serve any member of the credit union if all of the following requirements are met:

AB133-SSA1-SA1, s. 2308pp Section 2308pp. 186.113 (6) (b) and (c) of the statutes are amended to read:

AB133-SSA1-SA1,315,14 186.113 (6) (b) Act as trustees or custodians of member tax deferred retirement funds, individual retirement accounts, medical savings accounts or other employe benefit accounts or funds permitted by federal law to be deposited in a credit union.

AB133-SSA1-SA1,315,16 (c) Act as a depository for member-deferred member qualified and nonqualified deferred compensation funds as permitted by federal law.

AB133-SSA1-SA1, s. 2308pr Section 2308pr. 186.113 (24) of the statutes is created to read:

AB133-SSA1-SA1,315,19 186.113 (24) Funeral trusts. Accept deposits made by members for the purpose of funding burial agreements by trusts created pursuant to s. 445.125.

AB133-SSA1-SA1, s. 2308pt Section 2308pt. 186.113 (25) of the statutes is created to read:

AB133-SSA1-SA1,315,23 186.113 (25) Sell or purchase assets. Discount or sell any of its assets and, with the prior approval of the office of credit unions, purchase assets of another lender or seller.

AB133-SSA1-SA1, s. 2308pv Section 2308pv. 186.114 of the statutes is created to read:

AB133-SSA1-SA1,316,5 186.114. Federal and other powers. (1) Exercise of federal credit union powers by Wisconsin credit union. (a) In general. Subject to the limitations in this subsection, a credit union may exercise all powers that may be exercised, directly or indirectly through a credit union service organization, by a federally chartered credit union or by an affiliate of such an institution.

AB133-SSA1-SA1,316,8 (b) Required notification for exercise of a federal power. A credit union shall give 60 days' prior written notice to the office of credit unions of the credit union's intention to exercise a power under this subsection.

AB133-SSA1-SA1,316,12 (c) Exercise of federal powers through a credit union service organization. The office of credit unions may require that certain powers exercisable by credit unions under this subsection be exercised through a credit union service organization with appropriate safeguards to limit the risk exposure of the credit union.

AB133-SSA1-SA1,316,17 (2) Exercise of other service and incidental activity powers. (a) Necessary or convenient powers. Unless otherwise prohibited or limited by this chapter, a credit union may exercise all powers necessary or convenient to effect the purposes for which the credit union is organized or to further the businesses in which the credit union is lawfully engaged.

AB133-SSA1-SA1,316,25 (b) Reasonably related powers. Subject to any applicable state or federal regulatory or licensing requirements, a credit union may engage, directly or indirectly through a credit union service organization, in activities reasonably related or incident to the purposes of the credit union. Activities reasonably related or incident to the purposes of the credit union are those activities that are part of the business of credit unions, or closely related to the business of credit unions, or convenient and useful to the business of credit unions, or reasonably related or incident to the operation of credit unions or are financial in nature.

AB133-SSA1-SA1,317,3 (c) Notice requirement. A credit union shall give 60 days' prior written notice to the office of credit unions of the credit union's intention to engage in an activity under this subsection.

AB133-SSA1-SA1,317,10 (d) Standards for denial. The office of credit unions may deny the authority of a credit union to engage in an activity under this subsection if the office of credit unions determines that the activity is not an activity reasonably related or incident to the purposes of the credit union, that the credit union is not well-capitalized or adequately capitalized, that the credit union is the subject of an enforcement action or that the credit union does not have satisfactory management expertise for the proposed activity.

AB133-SSA1-SA1,317,12 (e) Other activities approved by the office of credit unions. A credit union may engage in any other activity that is approved by rule of the office of credit unions.

AB133-SSA1-SA1,317,17 (f) Activities provided through a subsidiary. A credit union may engage in activities under this subsection, directly or indirectly through a credit union service organization, unless the office of credit unions determines that an activity must be conducted through a credit union service organization with appropriate safeguards to limit the risk exposure of the credit union.

AB133-SSA1-SA1,317,22 (3) Rule-making authority. The office of credit unions may promulgate rules to administer this section. The rules may impose limitations or conditions on the exercise of powers under this section if the office of credit unions determines that the limits or conditions are necessary for the protection of depositors, members, investors or the public.

AB133-SSA1-SA1, s. 2308px Section 2308px. 186.115 (1) of the statutes is amended to read:

AB133-SSA1-SA1,318,5 186.115 (1) Scope of authority. Subject to any regulatory approval required by law and subject to sub. (2), a credit union, directly or through a subsidiary, may undertake any activity, exercise any power or offer any financially related product or service in this state that any other provider of financial products or services may undertake, exercise or provide or that the office of credit unions finds to be financially related. The authority granted under this subsection is in addition to any power or authority granted to a credit union under s. 186.114 (1) and (2) (a) and (b).

AB133-SSA1-SA1, s. 2308sc Section 2308sc. 186.235 (7) (a) (intro.) of the statutes is amended to read:

AB133-SSA1-SA1,318,10 186.235 (7) (a) (intro.) Employes of the office of credit unions and members of the review board shall keep secret all the facts and information obtained in the course of examinations, or contained in any report provided by a credit union other than a call report, except in any of the following situations:

AB133-SSA1-SA1, s. 2308sf Section 2308sf. 186.235 (7) (c) of the statutes is created to read:

AB133-SSA1-SA1,318,17 186.235 (7) (c) If any person mentioned in par. (a) discloses any information about the private account or transactions of a credit union or any information obtained in the course of an examination of a credit union, except as provided in pars. (a) and (b), that person may be required to forfeit his or her office or position and may be fined not less than $100 nor more than $1,000 or imprisoned for not less than 6 months nor more than 3 years or both.

AB133-SSA1-SA1, s. 2308sh Section 2308sh. 186.235 (7m) of the statutes is created to read:

AB133-SSA1-SA1,318,21 186.235 (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.

AB133-SSA1-SA1, s. 2308sj Section 2308sj. 186.235 (16) (a) of the statutes is renumbered 186.235 (16).

AB133-SSA1-SA1, s. 2308sL Section 2308sL. 186.235 (16) (b) of the statutes is repealed.

AB133-SSA1-SA1, s. 2308sn Section 2308sn. 186.36 of the statutes is amended to read:

AB133-SSA1-SA1,319,4 186.36 Sale of insurance in credit unions. Any officer or employe of a credit union, when acting as an agent for the sale of insurance on behalf of the credit union, shall pay all commissions received from the sale of credit life insurance or credit accident and sickness insurance to the credit union.

AB133-SSA1-SA1, s. 2308sp Section 2308sp. 186.41 (title) of the statutes is amended to read:

AB133-SSA1-SA1,319,7 186.41 (title) Interstate acquisition acquisitions and merger mergers of credit unions.

AB133-SSA1-SA1, s. 2308sr Section 2308sr. 186.41 (1) (a) of the statutes is renumbered 186.41 (1) (bm) and amended to read:

AB133-SSA1-SA1,319,11 186.41 (1) (bm) "In-state Wisconsin credit union" means a credit union having its principal office located in this state.

AB133-SSA1-SA1, s. 2308st Section 2308st. 186.41 (1) (c) of the statutes is renumbered 186.41 (1) (am) and amended to read:

AB133-SSA1-SA1,319,16 186.41 (1) (am) "Regional Out-of-state credit union" means a state or federal credit union that has its, the principal office of which is located in one of the regional states a state other than this state.

AB133-SSA1-SA1, s. 2308sv Section 2308sv. 186.41 (1) (d) of the statutes is repealed.

AB133-SSA1-SA1, s. 2308sx Section 2308sx. 186.41 (2) and (3) of the statutes are amended to read:

AB133-SSA1-SA1,319,20 186.41 (2) In-state Wisconsin credit union. (a) An in-state A Wisconsin credit union may do any of the following:

AB133-SSA1-SA1,319,22 1. Acquire an interest in, or some or all of the assets and liabilities of, one or more regional out-of-state credit unions.

AB133-SSA1-SA1,319,23 2. Merge with one or more regional out-of-state credit unions.

AB133-SSA1-SA1,320,2 (b) An in-state A Wisconsin credit union proposing any action under par. (a) shall provide the office of credit unions a copy of any original application seeking approval by a federal agency or by an agency of the regional another state and of any supplemental material or amendments filed in connection with any application.

AB133-SSA1-SA1,320,4 (3) Regional Out-of-state credit unions. Except as provided in sub. (4), a regional an out-of-state credit union may do any of the following:

AB133-SSA1-SA1,320,6 (a) Acquire an interest in, or some or all of the assets of, one or more in-state Wisconsin credit unions.

AB133-SSA1-SA1,320,7 (b) Merge with one or more in-state Wisconsin credit unions.

AB133-SSA1-SA1, s. 2308vc Section 2308vc. 186.41 (4) (intro.), (a) to (d) and (f) of the statutes are amended to read:

AB133-SSA1-SA1,320,11 186.41 (4) Limitations. (intro.) A regional An out-of-state credit union may not take any action under sub. (3) until all of the following conditions have been met:

AB133-SSA1-SA1,320,15 (a) The office of credit unions finds that the statutes of the regional state in which the regional out-of-state credit union has its principal office permit in-state Wisconsin credit unions to both acquire regional out-of-state credit union assets and merge with one or more regional out-of-state credit unions in the regional that state.

AB133-SSA1-SA1,320,18 (b) The office of credit unions has not disapproved the acquisition of in-state Wisconsin credit union assets or the merger with the in-state Wisconsin credit union under sub. (5).

AB133-SSA1-SA1,321,2 (c) The office of credit unions gives a class 3 notice, under ch. 985, in the official state newspaper, of the application to take an action under sub. (3) and of the opportunity for a hearing and, if at least 25 residents of this state petition for a hearing within 30 days of the final notice or if the office of credit unions on its own motion calls for a hearing within 30 days of the final notice, the office of credit unions holds a public hearing on the application, except that a hearing is not required if the office of credit unions finds that an emergency exists and that the proposed action under sub. (3) is necessary and appropriate to prevent the probable failure of an in-state a Wisconsin credit union that is closed or in danger of closing.

AB133-SSA1-SA1,321,6 (d) The office of credit unions is provided a copy of any original application seeking approval by a federal agency of the acquisition of in-state Wisconsin credit union assets or of the merger with an in-state a Wisconsin credit union and of any supplemental material or amendments filed with the application.

AB133-SSA1-SA1,321,9 (f) With regard to an acquisition of assets of an in-state a Wisconsin credit union that is chartered on or after May 9, 1986, the in-state Wisconsin credit union has been in existence for at least 5 years before the date of acquisition.

AB133-SSA1-SA1, s. 2308vf Section 2308vf. 186.41 (5) (a), (b), (c) and (cr) of the statutes are amended to read:

AB133-SSA1-SA1,321,15 186.41 (5) (a) Considering the financial and managerial resources and future prospects of the applicant and of the in-state Wisconsin credit union concerned, the action would be contrary to the best interests of the members of the in-state Wisconsin credit union.

AB133-SSA1-SA1,321,18 (b) The action would be detrimental to the safety and soundness of the applicant or of the in-state Wisconsin credit union concerned, or to a subsidiary or affiliate of the applicant or of the in-state Wisconsin credit union.

AB133-SSA1-SA1,321,23 (c) Because the applicant, its executive officers or directors have not established a record of sound performance, efficient management, financial responsibility and integrity, the action would be contrary to the best interests of the creditors, members or other customers of the applicant or of the in-state Wisconsin credit union or contrary to the best interests of the public.

AB133-SSA1-SA1,322,2 (cr) The applicant has failed to propose to provide adequate and appropriate services of the type contemplated by the community reinvestment act of 1977 in the community in which the in-state Wisconsin credit union which the applicant proposes to acquire or merge with is located.

AB133-SSA1-SA1, s. 2308vh Section 2308vh. 186.41 (6) (a) of the statutes is renumbered 186.41 (6).

AB133-SSA1-SA1, s. 2308vj Section 2308vj. 186.41 (6) (b) of the statutes is repealed.

AB133-SSA1-SA1, s. 2308vL Section 2308vL. 186.41 (8) of the statutes is repealed.

AB133-SSA1-SA1, s. 2308vn Section 2308vn. 186.45 of the statutes is created to read:

AB133-SSA1-SA1,322,8 186.45 Non-Wisconsin credit union, Wisconsin offices. (1) Definitions. In this section:

AB133-SSA1-SA1,322,10 (a) "Non-Wisconsin credit union" means a credit union organized under the laws of and with its principal office located in a state other than this state.

AB133-SSA1-SA1,322,11 (b) "Wisconsin credit union" has the meaning given in s. 186.41 (1) (bm).

AB133-SSA1-SA1,322,16 (2) Approval. A non-Wisconsin credit union may open an office and conduct business as a credit union in this state if the office of credit unions finds that Wisconsin credit unions are allowed to do business in the other state under conditions similar to those contained in this section and that all of the following apply to the non-Wisconsin credit union:

AB133-SSA1-SA1,322,18 (a) It is a credit union organized under laws similar to the credit union laws of this state.

AB133-SSA1-SA1,322,19 (b) It is financially solvent based upon national board ratings.

AB133-SSA1-SA1,322,20 (c) It has member savings insured with federal share insurance.

AB133-SSA1-SA1,322,22 (d) It is effectively examined and supervised by the credit union authorities of the state in which it is organized.

AB133-SSA1-SA1,322,24 (e) It has received approval from the credit union authorities of the state in which it is organized.

AB133-SSA1-SA1,323,2 (f) It has a need to place an office in this state to adequately serve its members in this state.

AB133-SSA1-SA1,323,4 (g) It meets all other relevant standards or qualifications established by the office of credit unions.

AB133-SSA1-SA1,323,6 (3) Requirements. A non-Wisconsin credit union shall agree to do all of the following:

AB133-SSA1-SA1,323,8 (a) Grant loans at rates not in excess of the rates permitted for Wisconsin credit unions.

AB133-SSA1-SA1,323,9 (b) Comply with this state's laws.

AB133-SSA1-SA1,323,10 (c) Designate and maintain an agent for the service of process in this state.

AB133-SSA1-SA1,323,14 (4) Records. As a condition of a non-Wisconsin credit union doing business in this state under this section, the office of credit unions may require copies of examination reports and related correspondence regarding the non-Wisconsin credit union.

AB133-SSA1-SA1, s. 2308vp Section 2308vp. 186.80 of the statutes is created to read:

AB133-SSA1-SA1,323,19 186.80 False statements. A person who knowingly publishes false reports or makes false statements about a credit union may be fined not less than $1,000 nor more than $5,000 or imprisoned for not less than one year nor more than 15 years or both.".

AB133-SSA1-SA1,323,20 969. Page 1179, line 21: after that line insert:

AB133-SSA1-SA1,323,21 " Section 2313m. 196.208 (5p) of the statutes is created to read:

AB133-SSA1-SA1,323,22 196.208 (5p) Toll-free calls answered by prisoners. (a) In this subsection:

AB133-SSA1-SA1,323,23 1. "Charitable organization" has the meaning given in s. 440.41 (1).

AB133-SSA1-SA1,323,24 2. "Prisoner" has the meaning given in s. 134.73 (1) (b).

AB133-SSA1-SA1,324,4 (b) If a prisoner is employed directly or indirectly by a charitable organization or toll-free service vendor to answer calls made to the charitable organization or toll-free service vendor, the prisoner shall do all of the following immediately upon answering a call:

AB133-SSA1-SA1,324,5 1. Identify himself or herself by name.

AB133-SSA1-SA1,324,6 2. State that he or she is a prisoner.

AB133-SSA1-SA1,324,8 3. Inform the calling party of the name of the correctional or detention facility in which he or she is a prisoner and the city and state in which the facility is located.