Amendment JR2 AA1-ASA1-AB1

AB1-ASA1-AA1,208,6 (h) Certain fiduciaries. A subsidiary organized to exercise corporate fiduciary powers under ch. 112.

AB1-ASA1-AA1,208,10 (i) Agricultural credit corporations. An agricultural credit corporation. Unless a universal bank owns at least 80% of the stock of the agricultural credit corporation, a universal bank may not invest more than 20% of the universal bank's capital in the agricultural credit corporation.

AB1-ASA1-AA1,208,13 (j) Deposit accounts and insured obligations. Deposit accounts or insured obligations of any financial institution, the accounts of which are insured by a deposit insurance corporation.

AB1-ASA1-AA1,208,19 (k) Certain federal obligations. Obligations of, or obligations that are fully guaranteed by, the United States and stocks or obligations of any federal reserve bank, federal home loan bank, the Student Loan Marketing Association, the Government National Mortgage Association, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or the Federal Deposit Insurance Corporation.

AB1-ASA1-AA1,208,20 (L) Other investments. Any other investment authorized by the division.

AB1-ASA1-AA1,208,23 (8) Investments in other financial institutions. In addition to the authority granted under ss. 222.0307 and 222.0409, and subject to the limitations of sub. (2), a universal bank may invest in other financial institutions.

AB1-ASA1-AA1,209,2 (9) Investments through subsidiaries. A universal bank may make investments under this section, directly or indirectly through a subsidiary, unless the division determines that an investment shall be made through a subsidiary with appropriate safeguards to limit the risk exposure of the universal bank.

AB1-ASA1-AA1,209,5 222.0407 Universal bank purchase of its own stock. (1) In general. A universal bank may hold or purchase not more than 10% of its capital stock, notes, or debentures, except as provided in sub. (2) or (3).

AB1-ASA1-AA1,209,7 (2) Division approval. A universal bank may hold or purchase more than 10% of its capital stock, notes, or debentures, if approved by the division.

AB1-ASA1-AA1,209,19 (3) Additional authority. A universal bank may hold or purchase more than 10% of its capital stock, notes, or debentures if the purchase is necessary to prevent loss upon a debt previously contracted in good faith. Stock, notes, or debentures held or purchased under this subsection may not be held by the universal bank for more than 6 months if the stock, notes, or debentures can be sold for the amount of the claim of the universal bank against the holder of the debt previously contracted. The universal bank shall either sell the stock, notes, or debentures within 12 months of acquisition under this subsection or shall cancel the stock, notes, or debentures. Cancellation of the stock, notes, or debentures reduces the amount of the universal bank's capital stock, notes, or debentures. If the reduction reduces the universal bank's capital below the minimum level required by the division, the universal bank shall increase its capital to the amount required by the division.

AB1-ASA1-AA1,209,25 (4) Loans secured by capital, surplus, or deposits. A universal bank may not loan any part of its capital, surplus, or deposits on its own capital stock, notes, or debentures as collateral security, except that a universal bank may make a loan secured by its own capital stock, notes, or debentures to the same extent that the universal bank may make a loan secured by the capital stock, notes, and debentures of a holding company for the universal bank.

AB1-ASA1-AA1,210,5 222.0409 Stock in bank-owned banks. With the approval of the division, a universal bank may acquire and hold stock in one or more banks chartered under s. 221.1202 or national banks chartered under 12 USC 27 (b) or in one or more holding companies wholly owning such a bank. Aggregate investments under this section may not exceed 10% of the universal bank's capital.

AB1-ASA1-AA1,210,10 222.0411 General deposit powers. (1) In general. A universal bank may set eligibility requirements for, and establish the types and terms of, deposits that the universal bank solicits and accepts. The terms set under this subsection may include minimum and maximum amounts that the universal bank may accept and the frequency and computation method of paying interest.

AB1-ASA1-AA1,210,13 (2) Pledge of security for deposits. Subject to the limitations of s. 221.0324 that are applicable to banks, a universal bank may pledge its assets as security for deposits.

AB1-ASA1-AA1,210,16 (3) Securitization of assets. With the approval of the division, a universal bank may securitize its assets for sale to the public. The division may establish procedures governing the exercise of authority granted under this subsection.

AB1-ASA1-AA1,211,5 (4) Safe deposit powers. A universal bank may take and receive, from any individual or corporation for safekeeping and storage, gold and silver plate, jewelry, money, stocks, securities, and other valuables or personal property, and may rent out the use of safes or other receptacles upon its premises for such compensation as may be agreed upon. A universal bank has a lien for its charges on any property taken or received by it for safekeeping. If the lien is not paid within 2 years from the date the lien accrues, or if property is not called for by the person depositing the property, or by his or her representative or assignee, within 2 years from the date the lien accrues, the universal bank may sell the property at public auction. A universal bank shall provide the same notice for a sale under this subsection that is required by law for sales of personal property on execution. After retaining from the proceeds of the sale all of the liens and charges due the bank and the reasonable expenses of the sale, the universal bank shall pay the balance to the person depositing the property, or to his or her representative or assignee.

AB1-ASA1-AA1,211,11 222.0413 Necessary or convenient powers, reasonably related or incidental activities, and other approved activities. (1) Necessary or convenient powers. Unless otherwise prohibited or limited by this chapter, a universal bank may exercise all powers necessary or convenient to effect the purposes for which the universal bank is organized or to further the businesses in which the universal bank is lawfully engaged.

AB1-ASA1-AA1,211,21 (2) Reasonably related and incidental activities. (a) Subject to any applicable state or federal regulatory or licensing requirements, a universal bank may engage, directly or indirectly through a subsidiary, in activities reasonably related or incident to the purposes of the universal bank. Activities reasonably related or incident to the purposes of the universal bank are those activities that are part of the business of financial institutions, or closely related to the business of financial institutions, or convenient and useful to the business of financial institutions, or reasonably related or incident to the operation of financial institutions, or financial in nature. Activities that are reasonably related or incident to the purposes of a universal bank include the following:

AB1-ASA1-AA1,211,22 1. Business and professional services.

AB1-ASA1-AA1,211,23 2. Data processing.

AB1-ASA1-AA1,211,24 3. Courier and messenger services.

AB1-ASA1-AA1,211,25 4. Credit-related activities.

AB1-ASA1-AA1,212,1 5. Consumer services.

AB1-ASA1-AA1,212,2 6. Real estate-related services, including real estate brokerage services.

AB1-ASA1-AA1,212,3 7. Insurance and related services, other than insurance underwriting.

AB1-ASA1-AA1,212,4 8. Securities brokerage.

AB1-ASA1-AA1,212,5 9. Investment advice.

AB1-ASA1-AA1,212,6 10. Securities and bond underwriting.

AB1-ASA1-AA1,212,7 11. Mutual fund activities.

AB1-ASA1-AA1,212,8 12. Financial consulting.

AB1-ASA1-AA1,212,9 13. Tax planning and preparation.

AB1-ASA1-AA1,212,10 14. Community development and charitable activities.

AB1-ASA1-AA1,212,11 15. Debt cancellation contracts.

AB1-ASA1-AA1,212,13 16. Any activities that are reasonably related or incident to activities under subds. 1. to 15., as determined by rule of the division under par. (b).

AB1-ASA1-AA1,212,23 (b) An activity that is authorized by statute or regulation for financial institutions to engage in as of the effective date of this paragraph .... [revisor inserts date], is an activity that is reasonably related to or incident to the purposes of a universal bank. An activity permitted under the Bank Holding Company Act is an activity that is reasonably related to or incident to the purposes of a universal bank. The division may, by rule, expand the list of activities under par. (a) 1. to 15. that are reasonably related or incident to the purposes of a universal bank and, by rule, may establish which activities under par. (a) 16. are reasonably related or incident to the activities under par. (a) 1. to 15. Any activity approved by rule of the division under this paragraph shall be authorized for all universal banks.

AB1-ASA1-AA1,213,3 (3) Notice requirement. A universal bank shall give 60 days' prior written notice to the division of the universal bank's intention to engage in an activity under this section.

AB1-ASA1-AA1,213,11 (4) Standards for denial. The division may deny the authority of a universal bank to engage in an activity under this section, other than those activities described in sub. (2) (a) 1. to 15., if the division determines that the activity is not an activity reasonably related or incident to the purposes of a universal bank. The division may deny the authority of a universal bank to engage in an activity under this section if the division determines that the universal bank is not well-capitalized, that the universal bank is the subject of an enforcement action, or that the universal bank does not have satisfactory management expertise for the proposed activity.

AB1-ASA1-AA1,213,15 (5) Insurance intermediation. A universal bank, or an officer or salaried employee of a universal bank, may obtain a license as an insurance intermediary, if otherwise qualified. A universal bank may not, directly or indirectly through a subsidiary, engage in the business of underwriting insurance.

AB1-ASA1-AA1,213,17 (6) Other activities approved by the division. A universal bank may engage in any other activity that is approved by rule of the division.

AB1-ASA1-AA1,213,21 (7) Activities provided through a subsidiary. A universal bank may engage in an activity under this section, directly or indirectly through a subsidiary, unless the division determines that the activity must be conducted through a subsidiary with appropriate safeguards to limit the risk exposure of the universal bank.

AB1-ASA1-AA1,214,2 (8) Limitations on investments through subsidiaries. The amount of the investment in any one subsidiary that engages in an activity under this section may not exceed 20% of capital or, if approved by the division, a higher percentage authorized by the division. The aggregate investment in all subsidiaries that engage in an activity under this subsection may not exceed 50% of capital or, if approved by the division, a higher percentage authorized by the division.

AB1-ASA1-AA1,214,5 (9) Ownership of subsidiaries. A subsidiary that engages in an activity under this section may be owned jointly, with one or more other financial institutions, individuals, or entities.

AB1-ASA1-AA1,214,7 222.0415 Trust powers. Subject to rules of the division, a universal bank may exercise trust powers in accordance with s. 221.0316.".

AB1-ASA1-AA1,214,8 224. Page 180, line 20: after that line insert:

AB1-ASA1-AA1,214,9 " Section 359j. 227.245 of the statutes is created to read:

AB1-ASA1-AA1,214,13 227.245 Permanent rules; exemptions. (1) Promulgation of universal banking rules. Except as provided in subs. (2) and (3), the division of banking may promulgate a rule under s. 222.0413 (2) (b) without complying with the notice, hearing, and publication procedures under this chapter.

AB1-ASA1-AA1,214,19 (2) Filing and publication. The division of banking shall file a rule described under sub. (1) as provided in s. 227.20. At the time that the rule is filed, the division of banking shall mail a copy of the rule to the chief clerk of each house and to each member of the legislature, shall publish in the official state newspaper a class 1 notice under ch. 985 containing a copy of the rule, and shall take any other step it considers feasible to make the rule known to persons who will be affected by the rule.

AB1-ASA1-AA1,214,21 (3) Effective date. A rule described under sub. (1) takes effect as provided under s. 227.22.".

AB1-ASA1-AA1,214,22 225. Page 180, line 20: after that line insert:

AB1-ASA1-AA1,214,23 " Section 362m. 230.08 (2) (e) 8. of the statutes is amended to read:

AB1-ASA1-AA1,214,24 230.08 (2) (e) 8. Natural resources — 7 6.".

AB1-ASA1-AA1,215,1 226. Page 180, line 25: after that line insert:

AB1-ASA1-AA1,215,2 " Section 365c. 230.08 (2) (yr) of the statutes is repealed.".

AB1-ASA1-AA1,215,3 227. Page 181, line 15: after that line insert:

AB1-ASA1-AA1,215,4 " Section 365j. 231.01 (4m) of the statutes is amended to read:

AB1-ASA1-AA1,215,9 231.01 (4m) "Educational facility" means a facility used for education by a regionally accredited, private, postsecondary educational institution that is described in section 501 (c) (3) of the Internal Revenue Code, as defined in s. 71.22 (4), and that is exempt from federal taxation under section 501 (a) of the Internal Revenue Code.".

AB1-ASA1-AA1,215,10 228. Page 182, line 9: after that line insert:

AB1-ASA1-AA1,215,11 " Section 367p. 250.01 (6g) of the statutes is created to read:

AB1-ASA1-AA1,215,14 250.01 (6g) "Public health authority" means the department, if the governor declares under s. 166.03 (1) (b) 1. a state of emergency related to public health and designates the department as the lead state agency to respond to that emergency.

AB1-ASA1-AA1, s. 367q Section 367q. 250.01 (6r) of the statutes is created to read:

AB1-ASA1-AA1,215,16 250.01 (6r) "Public health emergency" has the meaning given in s. 166.02 (7).

AB1-ASA1-AA1, s. 367r Section 367r. 250.03 (3) of the statutes is created to read:

AB1-ASA1-AA1,215,23 250.03 (3) (a) No later than 90 days after a state of emergency relating to public health is declared and the department is designated under s. 166.03 (1) (b) 1. as the lead state agency to respond to that emergency and no later than 90 days after the termination of this state of emergency relating to public health, the department shall submit to the legislature under s. 13.172 (2) and to the governor a report on all of the following:

AB1-ASA1-AA1,215,24 1. The emergency powers used by the public health authority or its agents.

AB1-ASA1-AA1,216,2 2. The expenses incurred by the public health authority and its agents in acting under the state of emergency related to public health.

AB1-ASA1-AA1, s. 367s Section 367s. 250.03 (3) (b) of the statutes is created to read:

AB1-ASA1-AA1,216,9 250.03 (3) (b) Biennially, beginning on July 1, 2002, after first consulting with the adjutant general, local health departments, health care providers, as defined in s. 146.81 (1), and law enforcement agencies, as defined in s. 165.77 (1) (b), the department shall submit to the legislature under s. 13.172 (2) and to the governor a report on the preparedness of the public health system to address public health emergencies.

AB1-ASA1-AA1, s. 367t Section 367t. 250.042 of the statutes is created to read:

AB1-ASA1-AA1,216,21 250.042 Powers and duties of the department as public health authority. (1) If the governor declares a state of emergency related to public health under s. 166.03 (1) (b) 1. and designates the department as the lead state agency to respond to that emergency, the department shall act as the public health authority during the period of the state of emergency. During the period of the state of emergency, the secretary may designate a local health department as an agent of the department and confer upon the local health department, acting under that agency, the powers and duties of the public health authority. The department may, from the appropriation under s. 20.435 (1) (e), reimburse a local health department for reasonable and necessary expenses in acting as an agent of the department if designated under this subsection.

AB1-ASA1-AA1,216,22 (2) As the public health authority, the department may do any of the following:

AB1-ASA1-AA1,217,2 (a) From the appropriation under s. 20.435 (1) (e), purchase, store, or distribute antitoxins, serums, vaccines, immunizing agents, antibiotics, and other pharmaceutical agents or medical supplies that the department determines are advisable to control a public health emergency.

AB1-ASA1-AA1,217,3 (b) Act as specified in s. 252.041.

AB1-ASA1-AA1,217,5 (3) (a) As the public health authority, the department shall inform state residents of all of the following:

AB1-ASA1-AA1,217,7 1. When a state of emergency related to public health has been declared or is terminated.

AB1-ASA1-AA1,217,8 2. How to protect themselves from a public health emergency.

AB1-ASA1-AA1,217,10 3. What actions the public health authority is taking to control a public health emergency.

AB1-ASA1-AA1,217,15 (b) The public health authority shall provide the information specified in par. (a) by all available and reasonable means calculated to inform the general public, including reasonable efforts to make the information accessible to individuals with disabilities and to provide the information in the primary languages of individuals who do not understand English.

AB1-ASA1-AA1,217,18 (c) As the public health authority, the department, to the extent possible, shall consult with local health departments, whether or not designated as agents of the department, and with individual health care providers.".

AB1-ASA1-AA1,217,19 229. Page 182, line 10: after that line insert:

AB1-ASA1-AA1,217,20 " Section 368d. 251.05 (3) (e) of the statutes is created to read:

AB1-ASA1-AA1,217,22 251.05 (3) (e) Act as agent of the department, if designated by the secretary under s. 250.042 (1).

AB1-ASA1-AA1, s. 368f Section 368f. 252.02 (title) of the statutes is amended to read:

AB1-ASA1-AA1,217,24 252.02 (title) Powers and duties of department.

AB1-ASA1-AA1, s. 368h Section 368h. 252.02 (7) of the statutes is created to read:

AB1-ASA1-AA1,218,4 252.02 (7) The department shall promulgate rules that specify medical conditions treatable by prescriptions or nonprescription drug products for which pharmacists and pharmacies must report under s. 440.142 (1).

AB1-ASA1-AA1, s. 368j Section 368j. 252.041 of the statutes is created to read:

AB1-ASA1-AA1,218,10 252.041 Compulsory vaccination during a state of emergency. (1) Except as provided in sub. (2), during the period under which the department is designated as the lead state agency, as specified in s. 250.042 (2), the department, as the public health authority, may do all of the following as necessary to address a public health emergency:

AB1-ASA1-AA1,218,13 (a) Order any individual to receive a vaccination unless the vaccination is reasonably likely to lead to serious harm to the individual or unless the individual, for reasons of religion or conscience, refuses to obtain the vaccination.

AB1-ASA1-AA1,218,15 (b) Isolate or quarantine, under s. 252.06, any individual who is unable or unwilling for reasons specified under sub. (1) to receive vaccination under par. (a).