AB 478

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 to credit unions

or affect provisions of the Wisconsin Consumer Act.

The 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