Bills · 2019-2020 Regular Session
Relating to: authorized activities and operations of credit unions, automated teller machines of financial institutions, and repealing rules promulgated by the Department of Financial Institutions.
Administrative rules Banking division of Credit union Credit unions office of Financial institution Financial institutions, department of — Administrative rules
- Introduced, stopped here
- Passes Assembly, not reached
- Passes Senate, not reached
- Governor signs, not reached
- Law, not reached
Unfamiliar terms? Glossary
What this bill does
Plain-language analysis by the nonpartisan Legislative Reference Bureau
This bill makes various changes related to the authorized activities and
operations of credit unions. The bill also repeals certain administrative rules related
to the placement or operation of automated teller machines (ATMs) by financial
institutions.
Under current law, the Office of Credit Unions (OCU) in the Department of
Financial Institutions regulates credit unions in this state. Current law specifies
various authorized activities and powers of credit unions.
Parity with federally chartered credit unions
Current law includes the following provisions relating to parity between
federally chartered and state chartered credit unions:
1. OCU must establish, by rule, a list of activities and powers incidental to the
business of a credit union that are authorized for federally chartered credit unions
as of April 18, 2014. A credit union chartered under Wisconsin law (Wisconsin
chartered credit union) may engage in any activity or exercise any power listed by
OCU, in addition to exercising any other power authorized for the credit union. After
April 18, 2014, if any additional activity or power incidental to the business of a credit
union becomes authorized for federally chartered credit unions, OCU must make a
determination, within 30 days after the activity or power becomes authorized, as to
whether the activity or power should also be authorized for Wisconsin chartered
credit unions. In making this determination, OCU must consider specified factors
and, if OCU determines that the activity or power authorized for federally chartered
credit unions should also be authorized for Wisconsin chartered credit unions, OCU
must, by rule, add the activity or power to the list. An OCU rule that includes an
activity or power in the list is exempt from most administrative rule-making
requirements, but deleting an activity or power from the list or modifying the activity
or power on the list requires OCU to go through the normal rule-making process.
2. A credit union may undertake any activity, exercise any power, or offer any
financially related product or service that any other provider of financial products
or services may undertake, exercise, or provide or that OCU finds to be financially
related if OCU has specified, by rule, the activity, power, product, or service as one
that may be undertaken, exercised, or offered by a credit union.
3. OCU may, by rule, authorize credit unions to exercise any power under the
notice, disclosure, or procedural requirements governing federally chartered credit
unions or to make any loan or investment or exercise any right, power, or privilege
of federally chartered credit unions permitted under federal law, if the credit union
review board approves. Such a rule may not restrict powers granted credit unions
or affect provisions of the Wisconsin Consumer Act.
This bill makes the following changes to these provisions: 1) with respect to
item 1., above, 30 days after an activity or power becomes authorized for federally
chartered credit unions, the activity or power also becomes authorized for Wisconsin