Date of enactment: March 21, 2024
2023 Senate Bill 773 Date of publication*: March 22, 2024
2023 WISCONSIN ACT 128
AN ACT to repeal 138.052 (7e) and (7m), 138.056 (6) and 215.21 (2); to renumber and amend 186.11 (2); to amend
34.08 (2), 38.20 (2) (e), 67.12 (12) (a), 138.052 (12) (a), 186.07 (7), 186.113 (15) (a), 186.118 (3) (a) (intro.), 186.235
(14) (c), 214.04 (21) (b), 215.13 (39), 215.13 (46) (a) 1., 215.21 (15), 221.0303 (2), 941.38 (1) (b) 21., 946.82 (4)
and 969.08 (10) (b); and to create 186.11 (2) (b) and (c), 186.113 (26), 227.01 (13) (yu) and 943.825 of the statutes;
relating to: authorized activities and operations of credit unions; the lending area of savings and loan associations;
automated teller machines; residential mortgage loans and variable rate loans; payments for public deposit losses in
failed financial institutions; promissory notes of certain public bodies; repealing rules promulgated by the Depart-
ment of Financial Institutions; providing an exemption from rule−making procedures; and providing a penalty.
The people of the state of Wisconsin, represented in
senate and assembly, do enact as follows:
SECTION 1. 34.08 (2) of the statutes is amended to
read:
34.08 (2) Payments under sub. (1) shall be made in
the order in which satisfactory proofs of loss are received
by the division of banking. The payment made to any
public depositor for all losses of the public depositor in
any individual public depository may not exceed
$400,000 $1,000,000 above the amount of deposit insur-
ance provided by an agency of the United States at the
public depository that experienced the loss. Upon a satis-
factory proof of loss, the division of banking shall direct
the department of administration to draw its warrant
payable from the appropriation under s. 20.144 (1) (a)
and the secretary of administration shall pay the warrant
under s. 16.401 (4) in favor of the public depositor that
has submitted the proof of loss.
SECTION 2. 38.20 (2) (e) of the statutes is amended
to read:
38.20 (2) (e) The district purchasing property under
this subsection may, with approval of the city council or
village board involved, pay the purchase price by issuing
and delivering directly to the city or village the general
obligation promissory notes or the notes of the district
under s. 67.12 (12), except that no referendum may be
held and the 10−year 20−year limitation on such notes
shall be inapplicable to such notes issued under this para-
graph. Such notes shall mature and be payable at such
times, in such amounts and at such rate of interest as will
amortize and pay when due the principal and interest on
the outstanding obligations of the city or village for tech-
nical college purposes. All such notes, upon execution
and delivery to the city or village, shall in all respects be
held and considered as an authorized investment under s.
66.0603 (1m) or 67.11 (2) and (3) of the debt service fund
created for payment of the city or village obligations
issued for technical college purposes and shall be offset
against city or village indebtedness in computing legal
debt limit to the same extent as other authorized invest-
* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 128 2023 Senate Bill 773
ments of the debt service fund and such notes may be sold
and hypothecated. If the offset against city or village
indebtedness under this paragraph is determined to be
invalid in any respect, such city or village immediately
may require the district issuing the promissory notes to
such city or village to comply with pars. (c) and (d) to the
extent necessary to cure such invalidity.
SECTION 3. 67.12 (12) (a) of the statutes, as affected
by 2023 Wisconsin Act 6, is amended to read:
67.12 (12) (a) Any municipality may issue promis-
sory notes as evidence of indebtedness for any public
purpose, as defined in s. 67.04 (1) (b), including but not
limited to paying any general and current municipal
expense, and refunding any municipal obligations,
including interest on them. Each note, plus interest if any,
shall be repaid within 10 years after the original date of
the note, except that notes issued under this section for
purposes of ss. 119.498, 281.58, 281.59, 281.61, and
292.72 and s. 281.60, 2021 stats., issued to raise funds to
pay a portion of the capital costs of a metropolitan sewer-
age district, or issued by a 1st class city or a county having
a population of 750,000 or more, to pay unfunded prior
service liability with respect to an employee retirement
system, shall be repaid within 20 years after the original
date of the note.
SECTION 4. 138.052 (7e) and (7m) of the statutes are
repealed.
SECTION 5. 138.052 (12) (a) of the statutes is
amended to read:
138.052 (12) (a) Any lender violating sub. (2) (b),
(5), (5m) (b) 1., (6), (7), (7e), (7m) or (7s), or an escrow
agent, as defined in sub. (5m) (a), violating sub. (5m) (b)
2., is liable to the borrower for $500 plus actual damages,
costs and reasonable attorney fees.
SECTION 6. 138.056 (6) of the statutes is repealed.
SECTION 7. 186.07 (7) of the statutes is amended to
read:
186.07 (7) VACANCIES. Within 60 90 days after the
date of a removal vacancy on the board of directors, the
board of directors shall appoint a director to fill the
vacancy. The appointee shall serve until a successor is
elected at the next annual membership meeting.
SECTION 8. 186.11 (2) of the statutes is renumbered
186.11 (2) (a) and amended to read:
186.11 (2) (a) A Subject to pars. (b) and (c), a credit
union may purchase, hold, and dispose of property as
necessary for or incidental to its operations.
SECTION 9. 186.11 (2) (b) and (c) of the statutes are
created to read:
186.11 (2) (b) Subject to guidance issued by the
office of credit unions, a credit union may purchase,
lease, hold, and convey the following types of real estate:
1. Real estate conveyed to the credit union in satisfac-
tion of debts previously contracted in the course of the
credit union’s business.
2. Real estate purchased at sale on judgments,
decrees, or mortgage foreclosures under securities held
by the credit union, but a credit union may not bid at a sale
a larger amount than is necessary to satisfy its debts and
costs.
3. Subject to the approval of the office of credit
unions, real estate acquired or held by the credit union for
any other purpose.
(c) Real estate acquired under par. (b) may not be held
for more than 5 years, unless an extension is granted by
the office of credit unions.
SECTION 10. 186.113 (15) (a) of the statutes is
amended to read:
186.113 (15) (a) Directly or indirectly, acquire, place,
and operate, or participate in the acquisition, placement,
and operation of, at locations other than its offices,
remote terminals, in accordance with rules established by
the office of credit unions. The rules shall provide that
any remote terminal shall be available for use, on a
nondiscriminatory basis, by any state or federal credit
union which has its principal place of business in this
state, by any other credit union obtaining the consent of
a state or federal credit union which has its principal place
of business in this state and is using the terminal and by
all members designated by a credit union using the termi-
nal. This subsection does not authorize a credit union
which has its principal place of business outside the state
to conduct business as a credit union in this state. The
remote terminals also shall be available for use, on a
nondiscriminatory basis, by any state or national bank,
state or federal savings bank or state or federal savings
and loan association, whose home office is located in this
state, if the bank, savings bank or savings and loan associ-
ation requests to share its use, subject to the joint rules
established under s. 221.0303 (2). The office of credit
unions by order may authorize the installation and opera-
tion of a remote terminal in a mobile facility, after notice
and hearing upon the proposed service stops of the
mobile facility.
SECTION 11. 186.113 (26) of the statutes is created to
read:
186.113 (26) SUPPLEMENTAL CAPITAL. In addition to
the rights of credit unions under other law, issue or other-
wise offer supplemental forms of capital in the form and
with the conditions, including those related to the safety
and soundness of the proposed use of the capital and the
overall condition of the credit union, approved by the
office of credit unions. This approval shall be in writing
and obtained prior to the issuance of the supplemental
capital.
SECTION 12. 186.118 (3) (a) (intro.) of the statutes is
amended to read:
186.118 (3) (a) (intro.) After April 18, 2014, if any
activity or power incidental to the business of a credit
union that is not listed under sub. (2) (a) becomes autho- − 3 − 2023 Wisconsin Act 128 2023 Senate Bill 773
rized for federally chartered credit unions, within 30 60
days after the activity or power becomes authorized the
office of credit unions shall make a determination as to
whether the activity or power should also be authorized
for credit unions organized under s. 186.02. In making
this determination, the office of credit unions shall con-
sider the degree to which the following apply with
respect to the activity or power:
SECTION 13. 186.235 (14) (c) of the statutes is
amended to read:
186.235 (14) (c) In addition to the annual assessment,
each credit union shall be charged for the cost of every
examination made. The examination charge shall
include the prorated amount of salaries and expenses of
all examiners and other employees actively engaged in
the examination, the salaries and expenses of any other
person whose services are required in connection with
the examination and any examination report and any
other expenses which may be directly attributable to the
examination. The examination charge shall be paid on
within 30 days of the day on which the examination is
completed.
SECTION 14. 214.04 (21) (b) of the statutes is
amended to read:
214.04 (21) (b) The rules of the division shall provide
that any remote service unit shall be available for use, on
a nondiscriminatory basis, by any state or federal savings
bank which has its principal place of business in this state,
by any other state or federal savings bank obtaining the
consent of a state or federal savings bank that has its prin-
cipal place of business in this state and is using the termi-
nal and by all customers designated by a savings bank
using the unit. This paragraph does not authorize a sav-
ings bank which has its principal place of business out-
side this state to conduct business as a savings bank in this
state. A remote service unit shall be available for use, on
a nondiscriminatory basis, by any credit union, state or
national bank or state or federal savings and loan associa-
tion, whose home office is located in this state, if the
credit union, bank or savings and loan association
requests to share its use, subject to joint rules established
by the division and the office of credit unions. The divi-
sion by order may authorize the installation and operation
of a remote service unit in a mobile facility, after notice
and hearing upon the proposed service stops of the
mobile facility.
SECTION 15. 215.13 (39) of the statutes is amended
to read:
215.13 (39) BRANCHES. Subject to the approval of the
division, any savings and loan association may establish
and maintain one or more branch offices within the nor-
mal lending area of the home office, as defined in s.
215.21 (2), in this state or in any one of the regional states,
as defined in s. 215.36 (1) (f). In the division’s approval,
the division may limit the powers of the branch. Savings
and loan associations may promote thrift in their local
schools by accepting payments in the school upon sav-
ings accounts of the teachers and pupils.
SECTION 16. 215.13 (46) (a) 1. of the statutes is
amended to read:
215.13 (46) (a) 1. Directly or indirectly, acquire,
place, and operate, or participate in the acquisition,
placement, and operation of, at locations other than its
home or branch offices, remote service units, in accord-
ance with rules established by the division. Remote ser-
vice units established in accordance with such rules are
not subject to sub. (36), (39), (40) or (47) or s. 215.03 (8).
The rules of the division shall provide that any such
remote service unit shall be available for use, on a nondis-
criminatory basis, by any state or federal savings and loan
association which has its principal place of business in
this state, by any other savings and loan association
obtaining the consent of a state or federal savings and
loan association which has its principal place of business
in this state and is using the terminal and by all customers
designated by a savings and loan association using the
unit. This paragraph does not authorize a savings and
loan association which has its principal place of business
outside this state to conduct business as a savings and
loan association in this state. The remote service units
also shall be available for use, on a nondiscriminatory
basis, by any credit union, state or national bank or state
or federal savings bank, whose home office is located in
this state, if the credit union, bank or savings bank
requests to share its use, subject to the joint rules estab-
lished under s. 221.0303 (2). The division by order may
authorize the installation and operation of a remote ser-
vice unit in a mobile facility, after notice and hearing
upon the proposed service stops of the mobile facility.
SECTION 17. 215.21 (2) of the statutes is repealed.
SECTION 18. 215.21 (15) of the statutes is amended
to read:
215.21 (15) PARTICIPATION LOANS. Any association
may participate with other lenders in mortgage loans of
any type that such association may otherwise make if the
real estate securing such loan is located within the United
States, subject to such rules as the division issues, includ-
ing the interest in participation loans to be retained by the
originator. The normal lending area, prescribed in sub.
(2), shall not apply to any association purchasing a partic-
ipating interest in such loan, provided the real estate
securing such loan is located within the United States.
SECTION 19. 221.0303 (2) of the statutes is amended
to read:
221.0303 (2) OPERATION AND ACQUISITION OF CUS-
TOMER BANK COMMUNICATIONS TERMINALS. A bank may,
directly or indirectly, acquire, place, and operate, or par-
ticipate in the acquisition, placement, and operation of, at
locations other than its main or branch offices, customer
bank communications terminals, in accordance with
rules established by the division. The rules of the divi-
sion shall provide that any such customer bank communi- − 4 −2023 Wisconsin Act 128 2023 Senate Bill 773
cations terminal shall be available for use, on a nondis-
criminatory basis, by any state or national bank and by all
customers designated by a bank using the terminal. This
subsection does not authorize a bank which has its princi-
pal place of business outside this state to conduct banking
business in this state. The customer bank communica-
tions terminals also shall be available for use, on a
nondiscriminatory basis, by any credit union, savings and
loan association, or savings bank, if the credit union, sav-
ings and loan association, or savings bank requests to
share its use, subject to rules jointly established by the
division of banking and the office of credit unions. The
division by order may authorize the installation and oper-
ation of a customer bank communications terminal in a
mobile facility, after notice and hearing upon the pro-
posed service stops of the mobile facility.
SECTION 20. 227.01 (13) (yu) of the statutes is cre-
ated to read:
227.01 (13) (yu) Relates to guidance issued by the
office of credit unions under s. 186.11 (2) (b).
SECTION 21. 941.38 (1) (b) 21. of the statutes is
amended to read:
941.38 (1) (b) 21. A crime under s. 943.81, 943.82,
943.825, 943.83, 943.85, 943.86, 943.87, 943.88,
943.89, or 943.90 or, if the victim is a financial institu-
tion, as defined in s. 943.80 (2), a crime under s. 943.84
(1) or (2).
SECTION 22. 943.825 of the statutes is created to read:
943.825 Interference with automated teller
machine. Whoever intentionally causes impairment or
interruption of use, in whole or in part, of an automated
teller machine or customer bank communications termi-
nal is guilty of a Class H felony.
SECTION 23. 946.82 (4) of the statutes, as affected by
2023 Wisconsin Act 10, is amended to read:
946.82 (4) “Racketeering activity” means any activ-
ity specified in 18 USC 1961 (1) in effect as of
April 27, 1982, or the attempt, conspiracy to commit, or
commission of any of the felonies specified in: chs. 945
and 961, subch. V of ch. 551, and ss. 49.49, 134.05,
139.44 (1), 180.0129, 181.0129, 185.825, 201.09 (2),
215.12, 221.0625, 221.0636, 221.0637, 221.1004,
553.41 (3) and (4), 553.52 (2), 940.01, 940.19 (4) to (6),
940.20, 940.201, 940.203, 940.21, 940.30, 940.302 (2),
940.305, 940.31, 941.20 (2) and (3), 941.26, 941.28,
941.298, 941.31, 941.32, 942.09, 943.01 (2), (2d), or
(2g), 943.011, 943.012, 943.013, 943.02, 943.03, 943.04,
943.05, 943.06, 943.10, 943.20 (3) (bf) to (e), 943.201,
943.203, 943.23 (2) and (3), 943.231 (1), 943.24 (2),
943.27, 943.28, 943.30, 943.32, 943.34 (1) (bf), (bm),
and (c), 943.38, 943.39, 943.40, 943.41 (8) (b) and (c),
943.50 (4) (bf), (bm), and (c) and (4m), 943.60, 943.70,
943.76, 943.81, 943.82, 943.825, 943.83, 943.84,
943.85, 943.86, 943.87, 943.88, 943.89, 943.90, 944.21
(5) (c) and (e), 944.32, 944.34, 945.03 (1m), 945.04
(1m), 945.05 (1), 945.08, 946.10, 946.11, 946.12,
946.13, 946.31, 946.32 (1), 946.48, 946.49, 946.61,
946.64, 946.65, 946.72, 946.76, 946.79, 947.015,
948.05, 948.051, 948.08, 948.12, and 948.30.
SECTION 24. 969.08 (10) (b) of the statutes, as
affected by 2023 Wisconsin Act 10, is amended to read:
969.08 (10) (b) “Serious crime” means any crime
specified in s. 943.23 (1m), 1999 stats., s. 943.23 (1r),
1999 stats., or s. 943.23 (1g), 2021 stats., or s. 346.62 (4),
940.01, 940.02, 940.03, 940.05, 940.06, 940.08, 940.09,
940.10, 940.19 (5), 940.195 (5), 940.198 (2) (a) or (c),
940.20, 940.201, 940.203, 940.204, 940.21, 940.225 (1)
to (3), 940.23, 940.24, 940.25, 940.29, 940.295 (3) (b)
1g., 1m., 1r., 2. or 3., 940.302 (2), 940.31, 941.20 (2) or
(3), 941.26, 941.30, 941.327, 943.01 (2) (c), 943.011,
943.013, 943.02, 943.03, 943.04, 943.06, 943.10,
943.231 (1), 943.30, 943.32, 943.81, 943.82, 943.825,
943.83, 943.85, 943.86, 943.87, 943.88, 943.89, 943.90,
946.01, 946.02, 946.43, 947.015, 948.02 (1) or (2),
948.025, 948.03, 948.04, 948.05, 948.051, 948.06,
948.07, 948.085, or 948.30 or, if the victim is a financial
institution, as defined in s. 943.80 (2), a crime under s.
943.84 (1) or (2).
SECTION 25. DFI−Bkg 14.03 of the administrative
code is repealed.
SECTION 26. DFI−SB 12.03 of the administrative
code is repealed.
SECTION 27. DFI−SL 12.03 of the administrative
code is repealed.
SECTION 28.0Initial applicability.
(1) PUBLIC DEPOSIT LOSSES. The treatment of s. 34.08
(2) first applies to losses, as defined in s. 34.01 (2), occur-
ring on the effective date of this subsection.
(2) RESIDENTIAL MORTGAGE LOANS AND VARIABLE
RATE LOANS. The treatment of ss. 138.052 (7e) and (7m)
and 138.056 (6) first applies to loans for which applica-
tions are received on the effective date of this subsection.
SECTION 29.0Effective dates. This act takes effect on
the day after publication, except as follows:
(1) ADMINISTRATIVE RULES. The repeal of sections
DFI−Bkg 14.03, DFI−SB 12.03, and DFI−SL 12.03 of
the administrative code takes effect as provided in s.
227.265.