Wisconsin Senate Bill SB1052

Wisconsin 2023-2024 Regular Session

• Introduced: 2/21/24
• Refer: 2/21/24
• Failed: 4/15/24

Caption

Updating an obsolete reference to the National Association of Securities Dealers, Inc.; eliminating an obsolete provision in the Wisconsin Consumer Act; updating a cross-reference to a federal law definition of high-cost mortgage; information included on a notary public's stamp and clarifying terminology and removing statutory duplication relating to notaries public (suggested as remedial legislation by the Department of Financial Institutions).

Impact

The implications of SB 1052 on state law include the removal of obsolete stipulations that restrict merchants regarding balloon payments in consumer credit transactions and updates to the cross-references concerning high-cost mortgages aligning with current federal definitions. Moreover, the clarifications surrounding the requirements for notary public stamps are expected to harmonize existing laws, eliminating any confusion about the necessary components of these stamps, thus streamlining the notarial process in Wisconsin.

Summary

Senate Bill 1052 aims to update various provisions of Wisconsin law by repealing outdated references and eliminating unnecessary regulations. This bill was introduced as a response to potential discrepancies within existing statutes, particularly those surrounding notary public practices and the consumer credit laws in Wisconsin. A notable change includes the transition from referencing the National Association of Securities Dealers, Inc. (NASD) to the Financial Industry Regulatory Authority, Inc. (FINRA), which is critical since NASD has since amalgamated and rebranded itself, making the previous references obsolete.

Contention

While the bill is largely intended as a technical cleanup of the statutes, discussions on its merits raised some concerns regarding the impact of eliminating specific restrictions. Some stakeholders worry that without the prior limitations on certain consumer credit practices, there may be potential risks for consumers, particularly in high-cost lending contexts. However, proponents argue that these updates are essential for modernizing the legal framework and aiding financial institutions in following more current practices.