Authorized activities and operations of credit unions, automated teller machines of financial institutions, and repealing rules promulgated by the Department of Financial Institutions

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 chartered credit unions unless otherwise noted by an OCU general order within this 30-day period; 2) with respect to item 2., above, OCU specifies the activity, power, product, or service that may be undertaken, exercised, or offered by a credit union by OCU guidance, not OCU rule; and 3) item 3., above, is repealed.

Credit union property Under current law, a credit union may purchase, hold, and dispose of property as necessary for or incidental to its operations.

This bill specifies that a credit union may purchase, lease, hold, and convey certain real estate, including real estate conveyed to the credit union in satisfaction of a debt or foreclosed real estate, subject to guidance by the OCU and a five-year limit on holding the real estate.

Off-site ATMs Under current law, a bank, savings bank, savings and loan association, or credit union (collectively, financial institution) may acquire, place, and operate, or participate in the acquisition, placement, and operation of, at locations away from the financial institution, what is variously referred to as customer bank communications terminals, remote terminals, or remote service units, in accordance with rules established by OCU and DFI's Division of Banking (division). These devices are terminals or other facilities that are not located at a financial institution and through which customers and financial institutions may engage in electronic transactions that are incidental to the conduct of the business of financial institutions (collectively, off-site ATMs).

Under current rules of OCU and the division, a financial institution must provide advance written notice to OCU or the division before acquiring, placing, or operating an off-site ATM. This bill repeals these rules.

Current statutes provide that OCU or the division may, by order, authorize the installation and operation of an off-site ATM in a mobile facility, after notice and hearing upon the proposed service stops of the mobile facility. This bill repeals these provisions.

Vacancy on board of directors Current law allows the board of directors of a credit union to remove a director.

Within 60 days after the date of removal of a director, the board of directors must appoint a director to fill the vacancy. This bill requires a credit union's board of directors to fill any vacancy, including a vacancy resulting from removal of a director, within 90 days.

Nonmember loan participation Under current law, a credit union may make loans to members upon terms approved by the credit committee, loan officer, or board of directors.

This bill specifies that a credit union may allow nonmember loan participation as a joint applicant, co-obligor, cosigner, co-borrower, surety, or guarantor.

Supplemental capital This bill specifies that credit unions may issue or offer supplemental forms of capital approved by OCU.

Charges for credit union examinations Current law generally requires OCU to conduct, at least once every 18 months, examinations of credit unions in which OCU examines the credit union's records and accounts. OCU must charge the credit union for the cost of the examination and the credit union must pay the charge on the day on which the examination is completed.

The bill requires the credit union to pay the charge within 30 days of the completion of OCU's examination.