AB2: Bill Text

AB2,13,21 186.07 (3m) Written consent in lieu of meeting. (a) Unless the articles of incorporation or bylaws provide otherwise, any action required or permitted by this chapter to be authorized at a board of directors' meeting may be authorized without a meeting if that action is authorized by all directors and is evidenced by one or more written statements, signed by each director, describing and consenting to the action. Such an action has the same effect as an action authorized by unanimous vote at a meeting at which all directors are present and may be described as such in any document.

AB2,13,24 (b) Any action authorized under par. (a) is effective when the last director signs the statement evidencing his or her consent, unless the statement specifies a different effective date.

AB2,14,2 (c) A credit union shall retain all statements signed by its directors under par. (a).

AB2, s. 11 Section 11. 186.11 (4) (title) of the statutes is amended to read:

AB2,14,5 186.11 (4) (title) Investment in credit union service corporations organizations.

AB2, s. 12 Section 12. 186.11 (4) (a) of the statutes is renumbered 186.11 (4) (a) (intro.) and amended to read:

AB2,14,12 186.11 (4) (a) (intro.) A Unless the office of credit unions approves a higher percentage, a credit union may invest not more than 1.5% of its total assets in the capital shares or obligations of a credit union service corporation organizations that, in the opinion of the office of credit unions, are sufficiently bonded and insured and that satisfy all of the following:

AB2,14,14 2. Are organized primarily to provide goods and services to credit unions, credit union organizations and credit union members.

AB2, s. 13 Section 13. 186.11 (4) (a) 1. of the statutes is created to read:

AB2,14,18 186.11 (4) (a) 1. Are corporations, limited partnerships, limited liability companies, or other entities that are permitted under the laws of this state and that are approved by the office of credit unions.

AB2, s. 14 Section 14. 186.11 (4) (b) of the statutes is repealed and recreated to read:

AB2,14,21 186.11 (4) (b) A credit union service organization under par. (a) may provide any of the following services related to the routine daily operations of credit unions:

AB2,14,24 1. Checking and currency services, check cashing services, money order services, savings bond services, traveler's check services, and services regarding the purchase and sale of U.S. mint commemorative coins.

AB2,15,4 2. Clerical, professional, and management services, including, but not limited to, accounting, courier, credit analysis, facsimile transmission and copying, internal credit union audit, locator, management and personnel training and support, marketing, research, and supervisory committee audit services.

AB2,15,5 3. Consumer mortgage loan origination services.

AB2,15,9 4. Electronic transaction services, including, but not limited to, remote terminal, credit and debit card, data processing, electronic fund transfer, electronic income tax filing, payment item processing, wire transfer, and Internet financial services.

AB2,15,13 5. Tax preparation services, services regarding the development and administration of individual retirement accounts, Keogh plans, deferred compensation plans, and other personnel benefit plans, and financial counseling services, including, but not limited to, estate planning.

AB2,15,16 6. Fixed asset services, including, but not limited to, the management, development, sale, or lease of fixed assets and the sale, lease, or servicing of computer hardware or software.

AB2,15,19 7. Insurance brokerage or agency services, including, but not limited to, providing vehicle warranty programs, providing group insurance purchasing programs, and acting as an agent for the sale of insurance.

AB2,15,21 8. Services with regard to the leasing of real property owned by the credit union service organization or personal property.

AB2,15,24 9. Loan support services, including, but not limited to, debt collection and loan processing, servicing, and sales services and services regarding the sale of repossessed collateral.

AB2,16,3 10. Record retention, security, and disaster recovery services, including, but not limited to, alarm monitoring, data storage and retrieval, and record storage services and providing forms and supplies.

AB2,16,4 11. Securities brokerage services.

AB2,16,5 12. Shared credit union branch operations.

AB2,16,6 13. Student loan origination services.

AB2,16,7 14. Travel agency services.

AB2,16,10 15. Trust and other fiduciary services, including, but not limited to, acting as an administrator for prepaid legal services plans or acting as a trustee, guardian, conservator, estate administrator, or in any other fiduciary capacity.

AB2,16,11 16. Real estate brokerage services.

AB2, s. 15 Section 15. 186.11 (4) (bd) and (bh) of the statutes are created to read:

AB2,16,21 186.11 (4) (bd) The office of credit unions may expand the list of services under par. (b) that are related to the routine daily operations of credit unions. Any service approved under this paragraph shall be authorized for all credit union service organizations under par. (a). A credit union may file a written request with the office of credit unions to exercise its authority under this paragraph and may include, along with the request, a description of any proposed service and an explanation of how that service is related to the routine daily operations of credit unions. Within 60 days after receiving a request under this paragraph, the office of credit unions shall approve or disapprove the request.

AB2,17,3 (bh) A credit union service organization under par. (a) may provide any service described under par. (b) or approved under par. (bd) through an investment by the credit union service organization in a third-party service provider. The amount that a credit union service organization may invest in a third-party service provider under this paragraph may not exceed the amount necessary to obtain the applicable services, or a greater amount if necessary for the credit union service organization to obtain the services at a reduced cost.

AB2, s. 16 Section 16. 186.11 (4) (c) of the statutes is amended to read:

AB2,17,6 186.11 (4) (c) A credit union service corporation organization may be subject to audit by the office of credit unions.

AB2, s. 17 Section 17. 186.113 (1) of the statutes is amended to read:

AB2,17,13 186.113 (1) Branch offices. If the need and necessity exist and with With the approval of the office of credit unions, establish branch offices inside this state or no more than 25 miles or outside of this state. Permanent records may be maintained at branch offices established under this subsection. In this subsection, the term "branch office" does not include a remote terminal, a limited services office, or a service center.

AB2, s. 18 Section 18. 186.113 (1m) (a) (intro.) of the statutes is amended to read:

AB2,17,17 186.113 (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:

AB2, s. 19 Section 19. 186.113 (6) (b) and (c) of the statutes are amended to read:

AB2,17,21 186.113 (6) (b) Act as trustees or custodians of member tax deferred retirement funds, individual retirement accounts, medical savings accounts, or other employee benefit accounts or funds permitted by federal law to be deposited in a credit union.

AB2,17,23 (c) Act as a depository for member-deferred member qualified and nonqualified deferred compensation funds as permitted by federal law.

AB2, s. 20 Section 20. 186.113 (11) of the statutes is renumbered 186.113 (11) (a) and amended to read:

AB2,18,1 186.113 (11) (a) Have Offer deposit accounts to members.

AB2, s. 21 Section 21. 186.113 (11) (b) of the statutes is created to read:

AB2,18,8 186.113 (11) (b) Offer deposit accounts to any person if the credit union satisfies the requirements specified in 12 CFR 701.34 (a) for designation as a low-income credit union and files a statement with the office of credit unions agreeing to be bound by requirements and conditions that are substantially identical to those imposed by the national board and the national credit union administration on federal credit unions designated under 12 CFR 701.34 (a).

AB2, s. 22 Section 22. 186.113 (24) of the statutes is created to read:

AB2,18,11 186.113 (24) Funeral trusts. Accept deposits made by members for the purpose of funding burial agreements by trusts created pursuant to s. 445.125.

AB2, s. 23 Section 23. 186.113 (25) of the statutes is created to read:

AB2,18,14 186.113 (25) Sale of insurance products. Sell insurance, annuities, and related products.

AB2, s. 24 Section 24. 186.17 (1) of the statutes is repealed and recreated to read:

AB2,18,18 186.17 (1) Regular reserves. A credit union shall establish and maintain a regular reserve account and shall transfer amounts to the regular reserve account as required by the national board.

AB2, s. 25 Section 25. 186.20 of the statutes is created to read:

AB2,18,22 186.20 Financial privacy. A credit union shall comply with any applicable requirements under 15 USC 6801 to 6803 and any applicable regulations prescribed by the national credit union administration under 15 USC 6804.

AB2, s. 26 Section 26. 186.22 (12m) of the statutes is amended to read:

AB2,18,25 186.22 (12m) Meetings of directors. Section 186.07 (3) and (3m) applies to a credit union finance corporation.

AB2, s. 27 Section 27. 186.235 (7) (a) (intro.) of the statutes is amended to read:

AB2,19,7 186.235 (7) (a) (intro.) Employees 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:

AB2, s. 28 Section 28. 186.235 (7) (c) of the statutes is created to read:

AB2,19,12 186.235 (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 is guilty of a Class I felony.

AB2, s. 29 Section 29. 186.235 (7m) of the statutes is created to read:

AB2,19,16 186.235 (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.

AB2, s. 30 Section 30. 186.235 (16) (a) of the statutes is renumbered 186.235 (16) and amended to read:

AB2,19,24 186.235 (16) Annual Periodic examination. At least once each year every 18 months, the office of credit unions shall examine the records and accounts of each credit union. For that purpose the office of credit unions shall have full access to, and may compel the production of, each credit union's records and accounts. They The office of credit unions may administer oaths to and examine each credit union's officers and agents.

AB2, s. 31 Section 31. 186.235 (16) (b) of the statutes is repealed.

AB2, s. 32 Section 32. 186.235 (16m) of the statutes is created to read:

AB2,20,3 186.235 (16m) Financial privacy examination. The office of credit unions shall examine a credit union to determine the credit union's compliance with s. 186.20.

AB2, s. 33 Section 33. 186.36 of the statutes is amended to read:

AB2,20,8 186.36 Sale of insurance in credit unions. Any officer or employee 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.

AB2, s. 34 Section 34. 186.41 (title) of the statutes is amended to read:

AB2,20,11 186.41 (title) Interstate acquisition acquisitions and merger mergers of credit unions.

AB2, s. 35 Section 35. 186.41 (1) (a) of the statutes is renumbered 186.41 (1) (bm) and amended to read:

AB2,20,15 186.41 (1) (bm) "In-state Wisconsin credit union" means a credit union having its principal office located in this state.

AB2, s. 36 Section 36. 186.41 (1) (c) of the statutes is renumbered 186.41 (1) (am) and amended to read:

AB2,20,20 186.41 (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.

AB2, s. 37 Section 37. 186.41 (1) (d) of the statutes is repealed.

AB2, s. 38 Section 38. 186.41 (2) and (3) of the statutes are amended to read:

AB2,20,24 186.41 (2) In-state Wisconsin credit union. (a) An in-state A Wisconsin credit union may do any of the following:

AB2,21,2 1. Acquire an interest in, or some or all of the assets and liabilities of, one or more regional out-of-state credit unions.

AB2,21,3 2. Merge with one or more regional out-of-state credit unions.

AB2,21,7 (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.

AB2,21,9 (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:

AB2,21,11 (a) Acquire an interest in, or some or all of the assets of, one or more in-state Wisconsin credit unions.

AB2,21,12 (b) Merge with one or more in-state Wisconsin credit unions.

AB2, s. 39 Section 39. 186.41 (4) (intro.), (a) to (d) and (f) of the statutes are amended to read:

AB2,21,16 186.41 (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:

AB2,21,20 (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.

AB2,21,23 (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).

AB2,22,7 (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.

AB2,22,11 (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.

AB2,22,14 (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.