The Wisconsin Senate passed a bill Wednesday regarding the regulation of credit unions that had previously received the support of the Wisconsin Credit Union League.
The legislation, Senate Bill 690, amended portions of the state statute on credit unions. The Wisconsin Credit Union League hailed the bill, saying in a press release that it helps "to streamline, clarify and make more transparent the regulations affecting our 150 state-chartered credit unions."
"We appreciate the overwhelming support of Wisconsin lawmakers, particularly the bill's lead author, and Assembly Financial Institutions Committee Chair Rep. Dave Craig (R-Town of Vernon), and Senate author Sen. Rick Gudex," the League's president and chief executive Brett Thompson said in the release. "Rep. Craig's leadership and Sen. Gudex's efforts allowed the bill to move smoothly and quickly through the legislature with unanimous, bipartisan support."
The legislation made a host of statutory changes regarding treatment of credit unions including:
- Requiring credit unions to maintain sufficient reserves in order to meet withdrawals, commitments and loan demand and at the level required by the National Credit Union Administration.
- Allowing credit unions to submit the results of an examination conducted by the NCUA in lieu of a separate exam from the Department of Financial Institutions' Office of Credit Unions.
- Removing limits on the amount a credit union can make in donations.
- Creating provisions for director conflict of interest transactions.
- Creating a procedure for how groups of members can inspect and copy non-confidential portions of a credit union's accounting books, records and meeting minutes.
- Allowing confidential examination reports to be sent to credit unions' attorneys, independent certified public accountants and other consults who have agreed in writing to maintaining confidentiality.
- Allowing expelled credit union members to petition the institution's board for reconsideration.
- Repealing provisions that authorized ten or more credit unions to form a Credit Union Finance Corporation and that limited the value of buildings used for credit union operations.
The bill also changed certain administrative rules. For instance, credit unions in Wisconsin can now provide written notice when an ATM is placed at a location beyond a branch office, rather than needing to obtain express or implied approval ahead of time. Loan officers at credit unions also are no longer subject to the prohibition against preferential treatment regarding loan transactions that director, executive officers and credit committee members are.
The bill had previously received unanimous approval from the state assembly in February. Republican Gov. Scott Walker is expected to sign the bill into law, the Wisconsin Credit Union League said.
