Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB1052 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 SENATE BILL 1052
5	5	February 21, 2024 - Introduced by LAW REVISION COMMITTEE. Referred to
6	6	Committee on Senate Organization.
7	7	*AUTHORS SUBJECT TO CHANGE*
8	8	AN ACT to repeal 422.402 and 422.421 (8); to renumber and amend 140.17;
9	9	to amend 140.02 (1) (e), 140.02 (2) (a), 140.02 (3), 140.02 (4) (b), 140.02 (6) (a),
10	10	428.202 (2) (d) 1. and 551.406 (3) (a) 2.; and to create 140.17 (2m) and (3) of the
11	11	statutes; relating to: updating an obsolete reference to the National
12	12	Association of Securities Dealers, Inc.; eliminating an obsolete provision in the
13	13	Wisconsin Consumer Act; updating a cross-reference to a federal law definition
14	14	of high-cost mortgage; information included on a notary public's stamp and
15	15	clarifying terminology and removing statutory duplication relating to notaries
16	16	public (suggested as remedial legislation by the Department of Financial
17	17	Institutions).
18	18	Analysis by the Legislative Reference Bureau
19	19	This bill updates an obsolete reference to the National Association of Securities
20	20	Dealers, Inc., (NASD) in the Wisconsin Uniform Securities Law. In 2007, NASD
21	21	consolidated with another organization, and the survivor organization changed its
22	22	name to the Financial Industry Regulatory Authority, Inc., commonly known as
23	23	FINRA. FINRA operates under U.S. Securities and Exchange Commission oversight
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35	35	SENATE BILL 1052
36	36	and is responsible for, among other things, regulating securities firms that do
37	37	business with the public, including with respect to professional training, testing, and
38	38	licensing of registered persons. The bill changes the statutory reference from NASD
39	39	to FINRA.
40	40	The bill also eliminates an obsolete provision in the Wisconsin Consumer Act.
41	41	Current law restricts a merchant's ability to require balloon payments in certain
42	42	consumer credit transactions. However, current law specifies that those restrictions
43	43	do not apply to a transaction entered into on or after November 1, 1984. The bill
44	44	eliminates those restrictions.
45	45	The bill also updates a cross-reference to federal law in a Wisconsin law
46	46	regulating high cost mortgage lending. The Wisconsin statute defines “covered loan”
47	47	by, among other things, a cross-reference to a definition under federal law for
48	48	“high-cost mortgage.” The federal law provision was renumbered and amended in
49	49	2010, resulting in the cross-reference in Wisconsin law becoming outdated. The bill
50	50	changes the cross-reference to refer to the current federal law definition.
51	51	Additionally, the bill clarifies the information to be included on a notary public's
52	52	stamp. The bill also clarifies certain terms and removes statutory duplication
53	53	relating to notaries public.
54	54	Under current law, the Department of Financial Institutions issues
55	55	commissions to notaries public. A notary public's notarial act must be evidenced by
56	56	a certificate to which an official stamp is affixed or embossed if the notarial act
57	57	relates to a tangible record or is attached to or logically associated with if the notarial
58	58	act relates to an electronic record. An “official stamp” is defined as a physical image
59	59	affixed to or embossed on a tangible record or an electronic image attached to or
60	60	logically associated with an electronic record. Current law specifies that the official
61	61	stamp of a notary public must include the notary public's name, jurisdiction,
62	62	commission expiration date if applicable, and other information required by DFI.
63	63	Current law also requires a notary public applicant to provide to DFI an
64	64	impression of his or her official seal or an imprint of his or her official rubber stamp.
65	65	Except with respect to an “official stamp,” the seal or rubber stamp may include only
66	66	the following: “Notary Public," “State of Wisconsin," and the name of the notary.
67	67	Except when a notary public properly uses an “official stamp,” the notary public must
68	68	attest certain instruments by a clear impression of his or her seal or imprint of his
69	69	or her rubber stamp, along with a written or stamped date of the notary public's
70	70	commission expiration or statement that the commission is permanent.
71	71	The bill makes various changes to reconcile a substantive inconsistency, to
72	72	create consistency in the use of terms, and to eliminate statutory duplication. The
73	73	bill specifies that the “official stamp” of a notary public may, but is not required to,
74	74	include the notary public's commission expiration date if applicable. Because the
75	75	definition of “official stamp” includes what is elsewhere referred to in current law as
76	76	a seal or rubber stamp, the bill harmonizes these terms, consistently adopting the
77	77	term “official stamp.” Finally, the bill clarifies current law by eliminating
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81	81	SENATE BILL 1052
82	82	For further information, see the NOTES provided by the Law Revision
83	83	Committee of the Joint Legislative Council.
84	84	The people of the state of Wisconsin, represented in senate and assembly, do
85	85	enact as follows:
86	86	LAW REVISION COMMITTEE PREFATORY NOTE: This bill is a remedial legislation
87	87	proposal, requested by the Department of Financial Institutions and introduced by the
88	88	Law Revision Committee under s. 13.83 (1) (c) 4. and 5., stats. After careful consideration
89	89	of the various provisions of the bill, the Law Revision Committee has determined that this
90	90	bill makes minor substantive changes in the statutes, and that these changes are
91	91	desirable as a matter of public policy.
92	92	SECTION 1. 140.02 (1) (e) of the statutes is amended to read:
93	93	140.02 (1) (e) The qualified applicant shall file his or her signature, post-office
94	94	address, and an impression of his or her official seal, or imprint on a tangible record
95	95	of his or her official rubber stamp, with the department.
96	96	NOTE: This SECTION replaces a reference to a notary public's seal or rubber stamp
97	97	with a reference to the notary public's official stamp, which is defined to include both a
98	98	seal and rubber stamp.
99	99	SECTION 2. 140.02 (2) (a) of the statutes is amended to read:
100	100	140.02 (2) (a) Except as provided in par. (am), any United States resident who
101	101	is licensed to practice law in this state is entitled to a permanent commission as a
102	102	notary public upon application to the department and payment of a $50 fee. The
103	103	application shall include a certificate of good standing from the supreme court, the
104	104	signature and post-office address of the applicant and an impression of the
105	105	applicant's official seal, or imprint on a tangible record of the applicant's official
106	106	rubber stamp.
107	107	NOTE: This SECTION replaces a reference to a notary public's seal or rubber stamp
108	108	with a reference to the notary public's official stamp, which is defined to include both a
109	109	seal and rubber stamp.
110	110	SECTION 3. 140.02 (3) of the statutes is amended to read:
111	111	140.02 (3) NOTARIAL SEAL OR OFFICIAL STAMP. (a) Except as authorized in s.
112	112	137.19, and except as provided in s. 140.17, every Every notary public shall provide
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129	129	SECTION 3 SENATE BILL 1052
130	130	an engraved official seal which makes a distinct and legible impression or official
131	131	rubber stamp which makes a distinct and legible imprint on paper. The impression
132	132	of the seal or the imprint of the rubber stamp shall state only the following: “Notary
133	133	Public," “State of Wisconsin" and the name of the notary. But any notarial seal in use
134	134	on August 1, 1959, shall be considered in compliance stamp that satisfies the
135	135	requirements under s. 140.17.
136	136	(b) The impression or imprint of the notarial seal upon any instrument or
137	137	writing official stamp on a tangible record, or the impression upon wafer, wax, or
138	138	other adhesive substance and affixed to any instrument or writing or embossed on
139	139	a tangible record, shall be deemed an affixation or embossing of the seal, and the
140	140	imprint of the notarial rubber stamp upon any instrument or writing shall be deemed
141	141	an affixation of the rubber official stamp under s. 140.15 (2).
142	142	NOTE: This SECTION replaces the requirements for a notary public's official seal that
143	143	creates an impression or rubber stamp imprint with a stamp that may, but need not,
144	144	include the expiration date of the notary public's commission and establishes that the
145	145	imprint of an official stamp on a tangible record constitutes an embossment of an official
146	146	notary public seal.
147	147	SECTION 4. 140.02 (4) (b) of the statutes is amended to read:
148	148	140.02 (4) (b) Except as authorized in s. 137.19, and except when a notary
149	149	public properly uses an official stamp under s. 140.17, all certificates of
150	150	acknowledgments of deeds and other conveyances, or any written instrument
151	151	required or authorized by law to be acknowledged or sworn to before any notary
152	152	public, In addition to satisfying the applicable requirement under s. 140.15 (2), a
153	153	notary public who performs a notarial act within this state, shall be attested by a
154	154	clear impression of the official seal or imprint of the rubber stamp of said officer, and
155	155	in addition thereto shall be written or stamped shall include on the certificate either
156	156	the day, month, and year when the notary public's commission of said notary public
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181	181	SECTION 4
182	182	SENATE BILL 1052
183	183	will expire, expires or that such commission is permanent. This information may be
184	184	part of the official stamp affixed to or embossed on the certificate, written on the
185	185	certificate if it is a tangible record, or attached to or logically associated with the
186	186	certificate.
187	187	NOTE: This SECTION states that a notary public who performs a notarial act must
188	188	include a certificate that states the day, month, and year that notary public's commission
189	189	expires or that the commission is permanent and establishes that this information may
190	190	be part of the notary public's official stamp affixed to or embossed on the certificate,
191	191	written on the certificate if it is a tangible record, or attached to or otherwise logically
192	192	associated with the certificate.
193	193	SECTION 5. 140.02 (6) (a) of the statutes is amended to read:
194	194	140.02 (6) (a) The department may certify to the official qualifications of any
195	195	notary public and to the genuineness of the notary public's signature and seal or
196	196	rubber official stamp.
197	197	NOTE: This SECTION replaces a reference to a notary public's seal or rubber stamp
198	198	with a reference to the notary public's official stamp, which is defined to include both a
199	199	seal and rubber stamp.
200	200	SECTION 6. 140.17 of the statutes is renumbered 140.17 (1m), and 140.17 (1m)
201	201	(a), as renumbered, is amended to read:
202	202	140.17 (1m) (a) Include the notary public's name, jurisdiction, commission
203	203	expiration date if applicable, the words “Notary Public” and “State of Wisconsin,” and
204	204	other information required by the department.
205	205	NOTE: This SECTION replaces a requirement that the official stamp of a notary
206	206	public must include, in addition to the notary public's name and other information
207	207	required by the Department of Financial Institutions, the notary public's jurisdiction and
208	208	commission expiration date with a requirement that the official stamp include the words
209	209	“Notary Public” and “State of Wisconsin.”
210	210	SECTION 7. 140.17 (2m) and (3) of the statutes are created to read:
211	211	140.17 (2m) The official stamp of a notary public may include the notary
212	212	public's commission expiration date if applicable.
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230	230	SECTION 7 SENATE BILL 1052
231	231	(3) The official stamp of a notary public may not include information other than
232	232	the information required under sub. (1m) or permitted under sub. (2m).
233	233	NOTE: This SECTION establishes that the official stamp of a notary public may, but
234	234	need not, include the date that the notary public's commission expires and may not
235	235	include information that is not either required or expressly permitted in state law.
236	236	SECTION 8. 422.402 of the statutes is repealed.
237	237	NOTE: This SECTION repeals an obsolete restriction affecting certain transactions
238	238	entered into before November 1, 1984.
239	239	SECTION 9. 422.421 (8) of the statutes is repealed.
240	240	NOTE: This SECTION eliminates a statutory subsection that references another
241	241	statute repealed in this bill.
242	242	SECTION 10. 428.202 (2) (d) 1. of the statutes is amended to read:
243	243	428.202 (2) (d) 1. That the loan transaction, at the time that the loan is
244	244	consummated, is considered a mortgage under 15 USC 1602 (aa) (bb) and regulations
245	245	adopted thereunder, including 12 CFR 226.32.
246	246	NOTE: This SECTION updates a reference to a federal statute that was renumbered
247	247	and amended in 2010.
248	248	SECTION 11. 551.406 (3) (a) 2. of the statutes is amended to read:
249	249	551.406 (3) (a) 2. The date that approval of registration status is transmitted
250	250	by the administrator to the applicant through the central registration depository of
251	251	the National Association of Securities Dealers, Inc. Financial Industry Regulatory
252	252	Authority, Inc.
253	253	NOTE: This SECTION updates the name of the National Association of Securities
254	254	Dealers, Inc., to the Financial Industry Regulatory Authority, Inc.
255	255	(END)
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