AB150: Bill Text

AB150,1794,24 214.735 Examination report. Upon completion of an examination, the commissioner department shall provide an examination report to the board of directors of the savings bank or other entity examined. Each director shall read the report and shall sign an affidavit affirming that the director has read and understands the report. The affidavits shall be retained by the savings bank or entity examined and may be examined by the commissioner department.

AB150, s. 5428 Section 5428. 214.74 (title) of the statutes is amended to read:

AB150,1795,1 214.74 (title) Orders of the commissioner department.

AB150, s. 5429 Section 5429. 214.74 (1) of the statutes is amended to read:

AB150,1795,9 214.74 (1) If the affairs of the savings bank, savings bank subsidiary, service corporation or affiliate or savings bank holding company are not being conducted in accordance with this chapter, the commissioner department may require the directors, officers and employes to take necessary corrective action. If the necessary corrective action is not taken, the commissioner department may issue an order to the directors of the entity, to be served personally or by certified mail, specifying a date for the performance of the corrective action.

AB150, s. 5430 Section 5430. 214.74 (2) of the statutes is amended to read:

AB150,1795,20 214.74 (2) If the order contains a finding that the business of the savings bank or savings bank holding company is being conducted in a fraudulent, illegal, unsafe or unsound manner or that the violation or the continuance of the practice to be corrected may cause insolvency, substantial dissipation of assets or earnings or the impairment of capital, the savings bank or savings bank holding company shall comply with the order immediately, unless the order is modified or withdrawn by the commissioner department or modified or terminated by a court. Notwithstanding sub. (3), the commissioner department may apply to the circuit court in the county in which the home office of the savings bank or savings bank holding company is located for enforcement of an order.

AB150, s. 5431 Section 5431. 214.74 (3) of the statutes is amended to read:

AB150,1796,4 214.74 (3) If a hearing before the review board has not been requested within 20 days after service of an order, the commissioner department may, at any time within 90 days after the date specified in the order for an action to be taken or discontinued, commence an action in the circuit court of the county in which the home office of the savings bank or savings bank holding company is located to compel the directors, officers or employes to take required corrective action. If a hearing is requested pursuant to s. 214.78, the commissioner department may institute suit within 90 days after a determination by the review board.

AB150, s. 5432 Section 5432. 214.74 (4) of the statutes is amended to read:

AB150,1796,7 214.74 (4) This section is in addition to the enforcement authority of the commissioner department under subch. XII.

AB150, s. 5433 Section 5433. 214.745 of the statutes is amended to read:

AB150,1796,15 214.745 (title) Commissioner's Department's notice to members or stockholders. The commissioner department may prepare a statement of the condition of the savings bank, affiliate, savings bank subsidiary, service corporation or savings bank holding company and may mail the statement to the members or stockholders or may publish the statement as a class 1 notice under ch. 985. The expense of a mailing or publication shall be paid by the savings bank, affiliate, savings bank subsidiary, service corporation or savings bank holding company.

AB150, s. 5434 Section 5434. 214.75 (1) of the statutes is amended to read:

AB150,1796,22 214.75 (1) A savings bank shall maintain books and records, as required by the commissioner department, in accordance with generally accepted accounting principles and the requirements of its deposit insurance corporation. All books and records shall be current, complete, organized and accessible to the commissioner, the commissioner's department's agents and examiners and to the savings bank's auditors and accountants.

AB150, s. 5435 Section 5435. 214.75 (2) of the statutes is amended to read:

AB150,1797,6 214.75 (2) A savings bank employing an outside data processing service shall inform the commissioner department at the initiation, renewal or changing of a contract for data processing services with an outside data processing service. The contract shall be submitted to the commissioner department at least 60 days before its implementation. The contract shall provide that the records maintained shall at all times be available for examination and audit by the commissioner department. A savings bank shall implement internal control and security measures for its data processing activities.

AB150, s. 5436 Section 5436. 214.75 (3) of the statutes is amended to read:

AB150,1797,10 214.75 (3) The commissioner department may examine any data processing center that provides data processing or related services to a savings bank as often as the commissioner department examines the savings bank it serves.

AB150, s. 5437 Section 5437. 214.75 (4) of the statutes is amended to read:

AB150,1797,19 214.75 (4) The commissioner department shall by rule prescribe periods of time for which savings banks must retain records and after the expiration of which, the savings bank may destroy those records. Liability may not accrue against the savings bank, the commissioner department or this state for destruction of records according to rules of the commissioner department promulgated under this subsection. In an action in which records of the savings bank may be called in question or demanded, a showing of the expiration of the retention period shall be sufficient excuse for failure to produce the records.

AB150, s. 5438 Section 5438. 214.75 (5) (a) of the statutes is amended to read:

AB150,1798,4 214.75 (5) (a) A savings bank may cause records kept by the savings bank to be recorded, copied or reproduced by any photostatic, photographic or miniature photographic process or by optical imaging if the process employed correctly, accurately and permanently copies, reproduces or forms a medium for copying, reproducing or recording the original record on a film or other durable material. A savings bank may thereafter dispose of the original record after obtaining the written consent of the commissioner department. This subsection, except that part requiring written consent of the commissioner department, is applicable to federal savings banks if it does not contravene federal law.

AB150, s. 5439 Section 5439. 214.755 (1) (intro.) of the statutes is amended to read:

AB150,1798,10 214.755 (1) (intro.) The commissioner, employes Employes of the office of the commissioner department and members of the review board may not disclose information gathered by examination of or obtained through reports from a savings bank or from a state or federal financial institution regulatory authority except to any of the following:

AB150, s. 5440 Section 5440. 214.76 (1) of the statutes is amended to read:

AB150,1798,17 214.76 (1) At least once in each year and not more than 12 months after its last audit, a savings bank shall cause its books, records and accounts to be audited by an independent certified public accountant not connected with the savings bank. The certified public accountant shall conduct the audit to produce a certified financial statement. The commissioner department may require additional information to be included in an audit report.

AB150, s. 5441 Section 5441. 214.76 (3) of the statutes is amended to read:

AB150,1798,25 214.76 (3) A copy of the audit report, including a balance sheet of the savings bank on the date of the audit and a statement of income and expenses of the savings bank during the year ending with the date of the audit and the written summary prepared for the board of directors shall be filed with the commissioner department within 60 days after the date on which the savings bank received the audit report. The commissioner department may, for good cause shown, extend the filing date for up to 60 additional days.

AB150, s. 5442 Section 5442. 214.76 (4) of the statutes is amended to read:

AB150,1799,9 214.76 (4) The audit report filed with the commissioner department shall be certified by the accountant conducting the audit. If a savings bank fails to cause an audit to be made, the commissioner department shall order an audit to be made by an independent certified public accountant at the savings bank's expense. Instead of the audit required under sub. (1), the commissioner department may accept an audit or portion of an audit made exclusively for a deposit insurance corporation or for a financial regulator of another state if the home office of the savings bank is located in that state.

AB150, s. 5443 Section 5443. 214.76 (5) (a) (intro.) of the statutes is amended to read:

AB150,1799,14 214.76 (5) (a) (intro.) Annually, no later than February 1, a savings bank shall file with the commissioner department a report of its activities of the preceding calendar year, upon forms prescribed by the commissioner department. The report shall include all of the following:

AB150, s. 5444 Section 5444. 214.76 (5) (a) 3. of the statutes is amended to read:

AB150,1799,17 214.76 (5) (a) 3. Any other information that the commissioner department requires.

AB150, s. 5445 Section 5445. 214.76 (5) (b) of the statutes is amended to read:

AB150,1799,25 214.76 (5) (b) A savings bank shall include with its annual report a copy of a statement of condition and operations as of the end of the savings bank's most recent fiscal year, which shall be available to the public. The savings bank shall publish a printed statement containing such information as the commissioner department requires as a class 1 notice under ch. 985 in each municipality in which the savings bank operates an office. Proof of publication shall be furnished to the commissioner department within 60 days after the date of the report.

AB150, s. 5446 Section 5446. 214.765 (1) of the statutes is amended to read:

AB150,1800,10 214.765 (1) A violation of subch. VI or VII or s. 214.34, 214.59 or 214.76, or the failure to comply with recommendations of an examination report of the commissioner department within 60 days after the date of issuance of the report or within any other period the commissioner department specifies, shall be considered an unsafe and unsound practice and creates an unsafe and unsound condition in the savings bank. A savings bank or a person affiliated with a savings bank who violates these provisions shall be subject to a forfeiture under s. 214.935 and to other enforcement powers of the commissioner department under this subchapter, subch. XII and rules of the commissioner department.

AB150, s. 5447 Section 5447. 214.765 (2) of the statutes is amended to read:

AB150,1800,15 214.765 (2) Continued violation of any provision in sub. (1) after the commissioner department issues an order to correct shall subject the members of the board of directors of the savings bank to removal from the board and to a permanent order of prohibition under s. 214.91.

AB150, s. 5448 Section 5448. 214.765 (3) of the statutes is amended to read:

AB150,1800,18 214.765 (3) The commissioner department shall promulgate rules to implement this section.

AB150, s. 5449 Section 5449. 214.772 (4) (a) 5. of the statutes is amended to read:

AB150,1800,21 214.772 (4) (a) 5. Any other information the commissioner department requires.

AB150, s. 5450 Section 5450. 214.772 (4) (b) (intro.) of the statutes is amended to read:

AB150,1801,3 214.772 (4) (b) (intro.) Upon receipt of a completed application and the required fee, the commissioner department may issue a certificate of authority. The certificate of authority may be subject to specific conditions that the commissioner department believes necessary to adequately safeguard the interests of the residents of this state. The commissioner department may not issue a certificate of authority to do business in this state unless all of the following conditions are met:

AB150, s. 5451 Section 5451. 214.772 (4) (b) 1. of the statutes is amended to read:

AB150,1801,8 214.772 (4) (b) 1. The foreign savings bank is in sound financial condition and entitled to public confidence, and the commissioner department is satisfied that the foreign savings bank will conduct its business in this state in accordance with the laws of this state.

AB150, s. 5452 Section 5452. 214.772 (4) (c) (intro.) of the statutes is amended to read:

AB150,1801,11 214.772 (4) (c) (intro.) The commissioner department may revoke a certificate of authority issued under this section if any of the following occurs:

AB150, s. 5453 Section 5453. 214.772 (4) (c) 2. of the statutes is amended to read:

AB150,1801,14 214.772 (4) (c) 2. The foreign savings bank refuses to permit the commissioner department to conduct an examination, or fails to pay applicable fees.

AB150, s. 5454 Section 5454. 214.772 (4) (c) 3. of the statutes is amended to read:

AB150,1801,18 214.772 (4) (c) 3. The commissioner department determines that the foreign savings bank is in an unsafe condition or that its continued operation in this state is otherwise inconsistent with the best interests of the residents of this state.

AB150, s. 5455 Section 5455. 214.772 (5) of the statutes is amended to read:

AB150,1802,2 214.772 (5) A foreign savings bank doing business in this state shall be examined by the commissioner department as provided under s. 214.725, audited under s. 214.76 and assessed fees as provided under s. 214.715 (1) (h), together with any out-of-state travel expenses incurred in the course of an examination or audit. The commissioner department may accept all or part of an examination or audit prepared on behalf of the regulatory authority responsible for the supervision of the foreign savings bank in the jurisdiction in which the foreign savings bank is organized.

AB150, s. 5456 Section 5456. 214.772 (6) of the statutes is amended to read:

AB150,1802,10 214.772 (6) A foreign savings bank doing business in this state shall maintain on file with the commissioner department the name and address of a person in this state who is authorized to receive legal process on behalf of the foreign savings bank. The commissioner department shall maintain a current record of each person so designated. The record of the commissioner department shall be conclusive evidence of the authority of the person whose name appears in the record to receive process on behalf of the foreign savings bank.

AB150, s. 5457 Section 5457. 214.772 (7) of the statutes is amended to read:

AB150,1802,19 214.772 (7) If the laws of another jurisdiction prohibit a savings bank from doing business in that jurisdiction, a foreign savings bank organized under the laws of that jurisdiction may not be authorized to do business in this state. If the laws of another jurisdiction require the posting of securities or impose other additional requirements as a condition of permitting a savings bank to do business in that jurisdiction, the commissioner department may impose similar requirements on a foreign savings bank organized under the laws of that jurisdiction before issuing the foreign savings bank a certificate of authority to do business in this state.

AB150, s. 5458 Section 5458. 214.775 (intro.) of the statutes is amended to read:

AB150,1802,24 214.775 Procedure upon the impairment of capital. (intro.) If the commissioner department finds from a report, examination or other source that a savings bank's capital is impaired, the commissioner department may do any of the following:

AB150, s. 5459 Section 5459. 214.78 (1) (a) of the statutes is amended to read:

AB150,1803,2 214.78 (1) (a) Advise the commissioner department on matters related to this chapter.

AB150, s. 5460 Section 5460. 214.78 (1) (b) of the statutes is amended to read:

AB150,1803,5 214.78 (1) (b) Review the acts, orders and determinations of the commissioner department.

AB150, s. 5461 Section 5461. 214.78 (1) (c) of the statutes is amended to read:

AB150,1803,8 214.78 (1) (c) Act on matters pertaining to this chapter that may be submitted to it by the commissioner department.

AB150, s. 5462 Section 5462. 214.78 (3) of the statutes is amended to read:

AB150,1803,15 214.78 (3) A person who subpoenaes a witness shall advance the fees and mileage of the witness. Witness fees shall be the same as fees under s. 814.67 (1) (b) and (c). The fees of witnesses who are called by the review board in the interests of the state shall be paid by the state upon presentation of proper vouchers approved by the chairperson of the review board and charged to the appropriation under s. 20.175 20.144 (1) (g).

AB150, s. 5463 Section 5463. 214.785 (1) of the statutes is amended to read:

AB150,1804,4 214.785 (1) Any interested person or a savings bank aggrieved by any act, order or determination of the commissioner department, which relates to savings banks may, within 20 days after receipt or service of a copy of the act, order or determination, file a written notice requesting the review board's review of the commissioner's department's act, order or determination. The sole review of the commissioner's department's decision shall be to determine if the commissioner department acted within the scope of the commissioner's department's authority, has not acted in an arbitrary or capricious manner and that the act, order or determination of the commissioner department is supported by substantial evidence in view of the entire record as submitted. The review of applications for new savings banks, branch offices or relocation of offices shall be based exclusively on the record and new evidence may not be taken by the review board. Applications under this subsection shall be considered and disposed of as speedily as possible.

AB150, s. 5464 Section 5464. 214.785 (2) of the statutes is amended to read:

AB150,1804,10 214.785 (2) A determination of the review board shall be subject to review under ch. 227. If an act, order or determination of the commissioner department is reversed or modified by the review board, the commissioner department shall be considered to be a person aggrieved and directly affected by the decision under s. 227.53 (1).

AB150, s. 5465 Section 5465. 214.82 (title) of the statutes is amended to read:

AB150,1804,13 214.82 (title) Commissioner's Department's authority to take custody and appoint a conservator or a receiver.

AB150, s. 5466 Section 5466. 214.82 (1) (intro.) of the statutes is amended to read:

AB150,1804,18 214.82 (1) (intro.) The commissioner department may take custody of and appoint a conservator for the property, liabilities, books, records, business and assets of a savings bank for any of the purposes under s. 214.825 if any of the following conditions exists:

AB150, s. 5467 Section 5467. 214.82 (1) (a) of the statutes is amended to read:

AB150,1804,21 214.82 (1) (a) The savings bank fails to produce an annual audited financial statement, after receiving one extension from the commissioner department.

AB150, s. 5468 Section 5468. 214.82 (1) (b) of the statutes is amended to read:

AB150,1805,3 214.82 (1) (b) The savings bank's books and records, after at least 2 consecutive notices from the commissioner department spanning at least 2 consecutive calendar quarters, are in an inaccurate and incomplete condition to the extent that the commissioner department is unable to determine the financial condition of the savings bank or the details or purpose of any transaction that may materially affect the savings bank's financial condition.

AB150, s. 5469 Section 5469. 214.82 (1) (e) of the statutes is amended to read:

AB150,1805,7 214.82 (1) (e) The savings bank has experienced substantial dissipation of assets due to a violation of a state or federal law, regulation, rule or order of the commissioner department or due to any unsafe or unsound practice.

AB150, s. 5470 Section 5470. 214.82 (1) (h) of the statutes is amended to read:

AB150,1805,11 214.82 (1) (h) The savings bank or its officers, directors or employes are violating a state or federal law, regulation, rule or supervisory order of the commissioner department or of another regulatory authority.

AB150, s. 5471 Section 5471. 214.82 (1) (j) of the statutes is amended to read:

AB150,1805,19 214.82 (1) (j) The directors, officers, trustees or liquidators have neglected, failed or refused to take any action that the commissioner department considers necessary for the protection of the savings bank, including production of an annual audited financial statement after an extension was granted, have continued to maintain the savings bank's books and records in an inaccurate and incomplete condition for 2 consecutive quarters after 2 notices from the commissioner department or have impeded or obstructed an examination.