Amendment SSA1-SB274

SB274-SSA1,3,22 (c) Membership of individuals. Notwithstanding s. 186.02 (2) (b), membership in an enhanced credit union may be open to any of the following:

SB274-SSA1,4,2 1. Individuals that reside or are employed within a well-defined neighborhood, community, rural district or multicounty region, unless the office of credit unions determines that it is impractical for a particular enhanced credit union to serve the area in which the individuals reside or are employed.

SB274-SSA1,4,6 2. Employes of related industries or employes of industries that operate at least one facility within a well-defined neighborhood or urban, suburban or rural community, the limits of which are not determined by any arbitrary physical standard.

SB274-SSA1,4,16 (d) Membership of organizations. Notwithstanding s. 186.02 (2) (d), an organization or association of individuals, the majority of the directors, owners or members of which are eligible for membership, may be admitted to membership in an enhanced credit union in the same manner and under the same conditions as individuals. Notwithstanding s. 186.02 (2) (d), an organization or association that has a business location within any geographic limits of an enhanced credit union's field of membership or an organization or association that, in the ordinary course of business, provides goods and services to credit unions, credit union organizations or persons who are eligible for membership in the enhanced credit union may be admitted to membership.

SB274-SSA1,4,20 (e) Membership of family members. As determined under an enhanced credit union's by-laws and notwithstanding s. 186.02 (2) (c), members of the immediate family of an individual who is qualified to be admitted to membership in the enhanced credit union may be admitted to membership.

SB274-SSA1,5,7 (f) Investment in credit union service organizations. Unless the office of credit unions approves a higher percentage, an enhanced credit union may invest not more than 1.5% of its total assets in the capital shares or obligations of credit union service organizations that are organized to provide goods and services, in the ordinary course of business, to credit unions, credit union organizations and credit union members and that are corporations, limited partnerships, limited liability companies or other entities permitted under the laws of this state and approved by the office of credit unions. A credit union service organization under this paragraph may be subject to audit by the office of credit unions. A credit union service organization under this paragraph may provide, in addition to all of the goods and services that a credit union service corporation may provide under s. 186.11 (4) (b), any of the following:

SB274-SSA1,5,8 1. Electronic transaction services.

SB274-SSA1,5,10 2. Management, development, sale or lease of fixed assets and sale, lease or servicing of computer hardware or software.

SB274-SSA1,5,11 3. Securities brokerage services.

SB274-SSA1,5,12 4. Travel agency services.

SB274-SSA1,5,17 (g) Branch offices. Notwithstanding s. 186.113 (1), an enhanced credit union, with the approval of the office of credit unions, may establish branch offices inside or outside of this state. Permanent records may be maintained at branch offices established under this paragraph. In this paragraph, "branch office" does not include a remote terminal, a limited services office or a service center.

SB274-SSA1,5,21 (h) Limited services offices. An enhanced credit union may not establish a limited services office under s. 186.113 (1m), except that this paragraph does not apply to a limited services office that is established before the effective date of this paragraph .... [revisor inserts date].

SB274-SSA1,5,23 (i) Trust services and related deposits. Notwithstanding s. 186.113 (6) (b) and (c), an enhanced credit union may do any of the following:

SB274-SSA1,6,3 1. Act as a trustee or custodian 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.

SB274-SSA1,6,5 2. Act as a depository for member qualified and nonqualified deferred compensation funds as permitted by federal law.

SB274-SSA1,6,8 (j) Conditional sales contracts. Notwithstanding par. (k), an enhanced credit union may purchase or acquire conditional sales contracts or similar instruments executed by credit union members.

SB274-SSA1,6,11 (k) Purchase of certain assets. Subject to ss. 186.31 and 186.41, an enhanced credit union, with the prior approval of the office of credit unions, may purchase any of the following assets of another lender or seller:

SB274-SSA1,6,12 1. Loans and lines of credit.

SB274-SSA1,6,13 2. Liens and security interests.

SB274-SSA1,6,14 3. Leases.

SB274-SSA1,6,15 4. Conditional sales contracts.

SB274-SSA1,6,16 5. Investments, as permitted under s. 186.11 (1) to (3).

SB274-SSA1,6,20 (4) Community reinvestment. (a) Required information. An enhanced credit union shall prepare a community credit needs statement for filing with the office of credit unions under par. (b) and shall post a community credit needs notice indicating the enhanced credit union's numerical rating under par. (d) 1.

SB274-SSA1,7,2 (b) Filing. No later than March 1 of each year, an enhanced credit union shall file with the office of credit unions a community credit needs statement. In addition to the community credit needs statement, the office of credit unions may require an enhanced credit union to file additional information in making an assessment of the enhanced credit union under par. (c) and in considering an application of the enhanced credit union that is listed under par. (e).

SB274-SSA1,7,8 (c) Annual assessment. The office of credit unions shall assess annually an enhanced credit union's performance in helping to meet the credit needs of its community, consistent with safe and sound operation of the enhanced credit union. In making an assessment under this paragraph, the office of credit unions shall consider the enhanced credit union's community credit needs statement and all of the following:

SB274-SSA1,7,10 1. Activities conducted by the enhanced credit union to determine the credit needs of its community.

SB274-SSA1,7,12 2. The enhanced credit union's marketing efforts to make community members aware of the credit services offered by the enhanced credit union.

SB274-SSA1,7,15 3. Participation by the board of directors of the enhanced credit union in formulating the enhanced credit union's policies and reviewing the enhanced credit union's performance in helping to meet the credit needs of its community.

SB274-SSA1,7,20 4. Practices that the enhanced credit union, or an officer, employe or director of the enhanced credit union, engages in that are intended to discourage, or have the effect of discouraging, applications for the types of credit identified in any plan prepared by the enhanced credit union that specifies the enhanced credit union's goals for helping to meet the credit needs of its community.

SB274-SSA1,7,22 5. The geographic distribution of the enhanced credit union's credit applications, extensions and denials.

SB274-SSA1,7,23 6. Evidence of prohibited discriminatory or other illegal credit practices.

SB274-SSA1,7,25 7. The enhanced credit union's record of opening and closing branch offices and of providing services at branch offices.

SB274-SSA1,8,2 8. The enhanced credit union's participation in, and investments in, community development and redevelopment projects and programs.

SB274-SSA1,8,6 9. The enhanced credit union's origination, to members of its community, of residential mortgage loans, housing rehabilitation or improvement loans and small farm loans, and the enhanced credit union's purchase of these types of loans made by others to members of its community.

SB274-SSA1,8,9 10. The enhanced credit union's participation in government-insured, guaranteed or subsidized loan programs for housing, small businesses or small farms.

SB274-SSA1,8,12 11. The enhanced credit union's ability to meet the credit needs of its community based on the enhanced credit union's size and financial condition, local economic conditions or other factors.

SB274-SSA1,8,14 12. The geographic distribution and use of remote terminals under s. 186.113 (15) that are operated by the enhanced credit union.

SB274-SSA1,8,16 13. The enhanced credit union's participation in credit counseling services in its community.

SB274-SSA1,8,18 14. Any other factor that affects an enhanced credit union's performance in helping to meet the credit needs of its community.

SB274-SSA1,9,2 (d) Assessment report; confidentiality. 1. The office of credit unions shall prepare a written report summarizing the results of each assessment under par. (c). The office of credit unions shall provide the enhanced credit union that is the subject of the report with a copy of the report and, except as provided in subd. 2., shall make the report available for public inspection. The report shall include a numerical rating of the enhanced credit union's performance in helping to meet the credit needs of its community. The numerical rating shall use a 1 to 5 rating system, with one representing excellent performance and 5 representing unsatisfactory performance.

SB274-SSA1,9,7 2. The office of credit unions may not make available for public inspection under subd. 1. any statements obtained or made by the office of credit unions in the course of the assessment that, in the discretion of the office of credit unions, are too sensitive or speculative in nature to disclose to the public, or any personal financial information.

SB274-SSA1,9,11 (e) Use of assessment upon consideration of certain applications. The office of credit unions shall consider the assessment of an enhanced credit union under par. (c) whenever the office of credit unions considers any of the following applications from the enhanced credit union:

SB274-SSA1,9,12 1. An application to invest under s. 186.11 (1) (e).

SB274-SSA1,9,13 2. An application to establish a branch office under sub. (3) (g).

SB274-SSA1,9,15 3. An application to operate a remote terminal in a mobile facility under s. 186.113 (15) (a).

SB274-SSA1,9,16 4. An application to merge with a credit union under s. 186.31.

SB274-SSA1,9,18 5. An application to acquire or merge with an out-of-state credit union under s. 186.41 (2) (a).

SB274-SSA1,9,21 (f) Assessment as basis for denial of application. The office of credit unions may use the assessment of an enhanced credit union under par. (c) as a basis for denying an application of the enhanced credit union that is listed under par. (e).

SB274-SSA1,9,25 (g) Hearing. The office of credit unions may hold a public hearing on an application of an enhanced credit union that is listed under par. (e) if the office of credit unions receives an objection to the application that is based on any of the factors used in making the assessment under par. (c).

SB274-SSA1,10,5 (5) Administration. The office of credit unions, with the approval of the credit union review board, shall promulgate rules for the efficient administration of this section. The rules shall include the form and content of a community credit needs statement and the form and content of, and acceptable manner of posting, a community credit needs notice under sub. (4) (a).

SB274-SSA1, s. 3 Section 3. 186.235 (7) (a) (intro.) of the statutes is amended to read:

SB274-SSA1,10,12 186.235 (7) (a) (intro.) Employes Except as provided in s. 186.1155 (4) (d) 1., 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, except or contained in any report provided by a credit union other than any semiannual or quarterly financial report that is regularly filed with the office of credit unions. This requirement does not apply in any of the following situations:

SB274-SSA1, s. 4 Section 4. 186.235 (7) (c) of the statutes is created to read:

SB274-SSA1,10,18 186.235 (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) and s. 186.1155 (4) (d) 1., that person may be required to forfeit not less than $100 nor more than $1,000.

SB274-SSA1, s. 5 Section 5. 186.235 (7m) of the statutes is created to read:

SB274-SSA1,10,22 186.235 (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.

SB274-SSA1, s. 6 Section 6. 186.235 (16) (a) of the statutes is renumbered 186.235 (16).

SB274-SSA1, s. 7 Section 7. 186.235 (16) (b) of the statutes is repealed.

SB274-SSA1, s. 8 Section 8. 186.36 of the statutes is amended to read:

SB274-SSA1,11,4 186.36 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.

SB274-SSA1, s. 9 Section 9. 186.41 (title) of the statutes is amended to read:

SB274-SSA1,11,7 186.41 (title) Interstate acquisition acquisitions and merger mergers of credit unions.

SB274-SSA1, s. 10 Section 10. 186.41 (1) (a) of the statutes is renumbered 186.41 (1) (bm) and amended to read:

SB274-SSA1,11,11 186.41 (1) (bm) "In-state Wisconsin credit union" means a credit union having its principal office located in this state.

SB274-SSA1, s. 11 Section 11. 186.41 (1) (c) of the statutes is renumbered 186.41 (1) (am) and amended to read:

SB274-SSA1,11,16 186.41 (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.

SB274-SSA1, s. 12 Section 12. 186.41 (1) (d) of the statutes is repealed.

SB274-SSA1, s. 13 Section 13. 186.41 (2) and (3) of the statutes are amended to read:

SB274-SSA1,11,20 186.41 (2) In-state Wisconsin credit union. (a) An in-state A Wisconsin credit union may do any of the following:

SB274-SSA1,11,22 1. Acquire an interest in, or some or all of the assets and liabilities of, one or more regional out-of-state credit unions.

SB274-SSA1,11,23 2. Merge with one or more regional out-of-state credit unions.

SB274-SSA1,12,2 (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.

SB274-SSA1,12,4 (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:

SB274-SSA1,12,6 (a) Acquire an interest in, or some or all of the assets of, one or more in-state Wisconsin credit unions.

SB274-SSA1,12,7 (b) Merge with one or more in-state Wisconsin credit unions.

SB274-SSA1, s. 14 Section 14. 186.41 (4) (intro.), (a) to (d) and (f) of the statutes are amended to read:

SB274-SSA1,12,11 186.41 (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:

SB274-SSA1,12,15 (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.

SB274-SSA1,12,18 (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).

SB274-SSA1,13,2 (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.

SB274-SSA1,13,6 (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.

SB274-SSA1,13,9 (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.

SB274-SSA1, s. 15 Section 15. 186.41 (5) (a), (b), (c) and (cr) of the statutes are amended to read:

SB274-SSA1,13,14 186.41 (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.

SB274-SSA1,13,17 (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.

SB274-SSA1,13,22 (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.

SB274-SSA1,14,2 (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.

SB274-SSA1, s. 16 Section 16. 186.41 (5m) of the statutes is amended to read:

SB274-SSA1,14,5 186.41 (5m) Branching not limited. This section does not limit branching authority under s. ss. 186.113 (1) and (1m) and 186.1155 (3) (g).