Date of enactment: April 4, 2024
2023 Senate Bill 668 Date of publication*: April 5, 2024
2023 WISCONSIN ACT 267
AN ACT to repeal 138.09 (7) (b), (bm) and (bn), 138.09 (7) (e) 2., 138.09 (7) (gm) 1. and 2., 138.12 (14), 218.04
(3) (c), 218.04 (8), 224.72 (7) (bm), 224.725 (5) (a) 1. and 2. and 224.725 (5) (b); to renumber 138.09 (1a) and
218.0161; to renumber and amend 138.09 (1d), 138.09 (1m) (a), 218.0114 (4), 218.0114 (17), 218.04 (1) (b), 218.04
(13), 224.72 (7) (am), 224.725 (5) (a) (intro.), 224.728 (title), 224.728 (1), 224.728 (2), 224.728 (3), 224.728 (4) and
224.728 (5); to amend 49.857 (1) (d) 12., 71.05 (6) (a) 28., 73.0301 (1) (d) 6., 100.315 (1), 108.227 (1) (e) 6., 138.09
(1m) (b) 1. (intro.), 138.09 (2), 138.09 (3) (c), 138.09 (3) (d), 138.09 (3) (e) 1. a. and f., 138.09 (3) (f), 138.09 (6),
138.09 (7) (c) 2. and 4., 138.09 (7) (e) 3., 138.09 (7) (g) (intro.), 138.09 (7) (i) (intro.), 1. and 2., 138.09 (7) (k), 138.12
(3) (b), 138.12 (4) (am) 1., 138.12 (5) (b), 138.14 (4) (a) 1. (intro.), 138.14 (6) (a), 138.14 (6) (b) 1. b., 138.14 (7)
(d), 138.14 (8) (c), 138.14 (9) (a) 4., 138.14 (14) (c) 1., 138.14 (14) (m), 138.14 (15) (title), 186.113 (22) (title), 214.04
(20), 215.13 (41) (title), 218.0111 (2), 218.0114 (5) (b), 218.0114 (13) (a), 218.0114 (20) (c), 218.0116 (1) (am),
218.0161 (title), 218.0162, 218.02 (2) (a) 1. (intro.), 218.02 (5) (a) and (b), 218.02 (6) (a) (intro.), 218.02 (6) (a) 1.,
218.02 (9) (title), 218.02 (9) (a) (intro.), 218.02 (9) (c), 218.04 (1) (a), 218.04 (2) (a) and (b), 218.04 (3) (a) 1. (intro.),
218.04 (3) (b), 218.04 (4) (a), 218.04 (4) (am) 1., 218.04 (5) (a) (intro.), 1., 2., 3. and 4., 218.04 (5) (c), 218.04 (6)
(title), 218.04 (6) (b), 218.04 (6) (c) (intro.) and 2., 218.04 (7) (title), 218.04 (7) (a), 218.04 (9g) (c), 218.04 (9m)
(e), 218.04 (10) (b), 218.04 (13) (title), 218.05 (3) (a) 2., 218.05 (3) (c), 218.05 (10) (a) and (c), 218.05 (11) (intro.),
218.05 (12) (title), 218.05 (12) (a) 1., 220.02 (2) (c), 220.02 (3), 220.06 (1m), 224.71 (7), 224.71 (13g) (b), 224.71
(18), 224.72 (2) (am), 224.72 (7) (title), 224.725 (1), 224.725 (1r) (a) 5., 224.725 (1r) (c) 1., 224.725 (1r) (c) 2. d.,
224.725 (2) (a), 224.725 (2) (c) (intro.) and 2. (intro.), 224.725 (5) (title), 224.74 (1) (a), 224.74 (2) (b), 224.755 (3)
(a), (c) and (d), 224.755 (4) (b) 1., 224.77 (1) (a), 224.77 (9), 321.60 (1) (a) 12., 422.202 (3) (c) and 946.79 (1) (a);
to repeal and recreate 138.09 (3) (b), 138.12 (3) (c), 138.12 (5) (a) 2., 138.14 (5) (c), chapter 217, 218.02 (5) (c),
218.04 (6) (a), 218.04 (10) (a) and 218.05 (14) (a); and to create 138.09 (1c) (a) 3., 4., 5. and 6., 138.09 (1c) (b), 138.09
(1g) (a), (b), (d), (e), (f), (g), (h) and (i), 138.09 (1m) (b) 2. c., 138.09 (1m) (d) and (e), 138.09 (3) (cm), 138.09 (3)
(e) 3., 138.09 (3) (g), 138.09 (4) (a) 4., 138.09 (4) (e), 138.09 (7) (i) 4., 138.12 (1) (cm) and (dm), 138.12 (3) (d) 2.
c., 138.12 (3) (f), (g) and (h), 138.12 (5r), 138.14 (1) (br), (jm) and (m), 138.14 (4) (a) 1g., 1m. and 1r., 138.14 (4)
(a) 2. c., 138.14 (15) (c), 218.0101 (24m) and (37m), 218.0114 (4g) and (4m), 218.0114 (17) (b), 218.0114 (21g) (b)
3., 218.0114 (25), 218.0161 (2), 218.02 (1) (e) and (f), 218.02 (2) (a) 2. c., 218.02 (2) (d), (e) and (f), 218.02 (6) (a)
5., 218.02 (9) (d), 218.04 (1) (b) 2. and 3., 218.04 (1) (em) and (h), 218.04 (3) (a) 1g., 1m. and 1r., 218.04 (3) (a) 2.
c., 218.04 (4) (ap) and (c), 218.04 (5) (a) 6., 218.04 (9), 218.04 (13) (b), 218.05 (1) (e) and (f), 218.05 (3) (am) 2.
c., 218.05 (3) (d), (e) and (f), 218.05 (12) (a) 4., 218.05 (12) (f), 224.35 (1g), 224.35 (1m) (bm), 224.35 (1r), (6), (7)
and (8), 224.55, 224.72 (2) (c) 2. c. and 224.725 (2) (b) 1. c. of the statutes; relating to: the licensing and regulation
by the Department of Financial Institutions of consumer lenders, payday lenders, money transmitters, sales finance
companies, collection agencies, mortgage bankers and mortgage brokers, adjustment service companies, community
* 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 267 2023 Senate Bill 668
currency exchanges, and insurance premium finance companies; the Nationwide Multistate Licensing System and
Registry; requiring the Department of Financial Institutions to implement a section 529A ABLE savings account
program; modifying and repealing rules promulgated by the Department of Financial Institutions; and granting rule−
making authority.
The people of the state of Wisconsin, represented in
senate and assembly, do enact as follows:
SECTION 1. 49.857 (1) (d) 12. of the statutes is
amended to read:
49.857 (1) (d) 12. A license or certificate of registra-
tion issued under ss. 138.09, 138.12, 138.14, 217.06
217.05, 218.0101 to 218.0163, 218.02, 218.04, 218.05,
224.72, 224.725, 224.93 or subch. IV of ch. 551.
SECTION 1m. 71.05 (6) (a) 28. of the statutes is
amended to read:
71.05 (6) (a) 28. Upon the termination of an account
as described under s. 16.643 or 224.55, any amount in the
account that is returned to an account owner’s estate.
SECTION 2. 73.0301 (1) (d) 6. of the statutes is
amended to read:
73.0301 (1) (d) 6. A license or certificate of registra-
tion issued by the department of financial institutions, or
a division of it, under ss. 138.09, 138.12, 138.14, 202.12
to 202.14, 202.22, 217.06 217.05, 218.0101 to 218.0163,
218.02, 218.04, 218.05, 224.72, 224.725, 224.93 or
under subch. IV of ch. 551.
SECTION 3. 100.315 (1) of the statutes is amended to
read:
100.315 (1) In this section, “check” has the meaning
given in s. 217.02 (2) means any check, draft, money
order, traveler’s check, personal money order, or other
instrument for the transmission or payment of money.
SECTION 4. 108.227 (1) (e) 6. of the statutes is
amended to read:
108.227 (1) (e) 6. A license or certificate of registra-
tion issued by the department of financial institutions, or
a division of it, under ss. 138.09, 138.12, 138.14, 202.12
to 202.14, 202.22, 217.06 217.05, 218.0101 to 218.0163,
218.02, 218.04, 218.05, 224.72, 224.725, 224.93 or
under subch. IV of ch. 551.
SECTION 5. 138.09 (1a) of the statutes is renumbered
138.09 (1c) (a).
SECTION 6. 138.09 (1c) (a) 3., 4., 5. and 6. of the
statutes are created to read:
138.09 (1c) (a) 3. An individual or entity who, in con-
nection with a securitization, private placement, collat-
eral financing, or other type of investment or financing
transaction, lends against or purchases consumer loans or
any portion of the outstanding balances of consumer
loans, if the following apply:
a. The consumer loans are serviced by a licensee
under this section, either directly or through a contracted
party.
b. The books and records for the consumer loans are
maintained by a licensee under this section.
4. Special purpose vehicles.
5. Collection agencies licensed under s. 218.04.
6. Payment processors.
SECTION 7. 138.09 (1c) (b) of the statutes is created
to read:
138.09 (1c) (b) This section applies to any person
who takes an assignment for sale, in whole or in part, of
a consumer loan with a finance charge in excess of 18 per-
cent per year, without regard to whether the loan was
originally made by an entity listed under par. (a) 1.
SECTION 8. 138.09 (1d) of the statutes is renumbered
138.09 (1g) (intro.) and amended to read:
138.09 (1g) (intro.) In this section, “division” :
(c) “Division” means the division of banking.
SECTION 9. 138.09 (1g) (a), (b), (d), (e), (f), (g), (h)
and (i) of the statutes are created to read:
138.09 (1g) (a) “Business” includes any of the fol-
lowing activities:
1. To make a consumer loan that has a finance charge
in excess of 18 percent per year. A person makes a con-
sumer loan within the meaning of this section if the per-
son is named as the lender in the consumer loan agree-
ment.
2. To take an assignment, in whole or in part, of a con-
sumer loan in which a customer is being assessed a
finance charge in excess of 18 percent per year.
3. Except as provided in sub. (3) (cm), to directly col-
lect payments from, or enforce rights against, a customer
relating to a consumer loan in which a customer is being
assessed a finance charge in excess of 18 percent per year.
(b) “Consumer loan” means a loan made by any per-
son to a customer that is payable in installments or for
which a finance charge is or may be imposed, and
includes transactions pursuant to an open−end credit
plan, as defined in s. 421.301 (27), other than a seller
credit card, as defined in s. 421.301 (41).
(d) “Licensee,” except in sub. (3) (e) 1. g., means a
person licensed under this section.
(e) “Nationwide multistate licensing system and reg-
istry” has the meaning given in s. 224.35 (1g) (b).
(f) “Payment processor” means a person who facili-
tates the purchase of, or payment of a bill for, a good or
service through a clearance and settlement system by
agreement with the licensee. Payment processor does not
include a collection agency, as defined in s. 218.04 (1)
(a), a debt collector, as defined in s. 427.103 (3), or any
person who directly performs any of the activities set
forth in par. (a).
(g) Except in sub. (9) (a), “service” or “servicing”
means collecting or receiving payments of principal, − 3 − 2023 Wisconsin Act 267 2023 Senate Bill 668
interest, and other amounts on consumer loans and
undertaking other tasks related to the administration of
consumer loans, including negotiating a modification or
extension of consumer loans, under the direction and
control of the licensee.
(h) “Special purpose vehicle” means an entity that,
in connection with a securitization, private placement,
collateral financing, or other type of investment or
financing transaction, is administered by a duly chartered
financial institution under a management agreement for
the purpose of purchasing, making loans against, or pool-
ing receivables, general intangibles, and other financial
assets, including consumer loans or the outstanding bal-
ances of consumer loans.
(i) “Unique identifier” has the meaning given in s.
224.35 (1g) (e).
SECTION 10. 138.09 (1m) (a) of the statutes is renum-
bered 138.09 (1m) (a) 1. and amended to read:
138.09 (1m) (a) 1. Before any person may do busi-
ness under this section, charge the interest authorized by
sub. (7), or assess a finance charge on a consumer loan in
excess of 18 percent per year, that person shall first obtain
a license from the division.
2. Applications for a license shall be in writing and
upon forms provided for this purpose made in the form
and manner prescribed by the division.
3. An applicant at the time of making an application
shall pay to the division a nonrefundable $300 fee for
investigating the application and a $500 annual license
fee for the period terminating on the last day of the cur-
rent calendar year. If the cost of the investigation exceeds
$300, the applicant shall upon demand of the division pay
to the division the amount by which the cost of the inves-
tigation exceeds the nonrefundable fee.
SECTION 11. 138.09 (1m) (b) 1. (intro.) of the statutes
is amended to read:
138.09 (1m) (b) 1. (intro.) Except as provided in par.
(c), an application under par. (a) 2. for a license shall con-
tain the following:
SECTION 12. 138.09 (1m) (b) 2. c. of the statutes is
created to read:
138.09 (1m) (b) 2. c. The division may disclose infor-
mation to the nationwide multistate licensing system and
registry as provided in s. 224.35.
SECTION 13. 138.09 (1m) (d) and (e) of the statutes
are created to read:
138.09 (1m) (d) The division shall utilize the nation-
wide multistate licensing system and registry, and the
provisions of s. 224.35 shall apply, with respect to appli-
cants and licensees under this section.
(e) An applicant or licensee under this section shall
register with, and maintain a valid unique identifier
issued by, the nationwide multistate licensing system and
registry.
SECTION 14. 138.09 (2) of the statutes is amended to
read:
138.09 (2) The division may also require the appli-
cant to file with the division, and to maintain in force, a
bond in which the applicant shall be the obligor, in a sum
not to exceed $5,000 with one or more corporate sureties
licensed to do business in Wisconsin, whose liability as
such sureties shall not exceed the sum of $5,000 in the
aggregate, to be approved by the division and filed in a
form and manner acceptable to the division, and such
bond shall run to the state of Wisconsin for the use of the
state and of any person or persons who may have a cause
of action against the obligor of the bond under the provi-
sions of this section. Such bonds shall be conditioned that
the obligor will conform to and abide by each and every
provision of this section, and will pay to the state or to any
person or persons any and all moneys that may become
due or owing to the state or to such person or persons from
the obligor under and by virtue of the provisions of this
chapter.
SECTION 15. 138.09 (3) (b) of the statutes is repealed
and recreated to read:
138.09 (3) (b) A license may be renewed or reinstated
as provided in s. 224.35 (7). A license that is not renewed
or reinstated by the end of the reinstatement period pro-
vided in s. 224.35 (7) shall be deemed to have expired on
December 31 of the year immediately preceding the rein-
statement period, unless the initial license date is between
November 1 and December 31, in which instance the ini-
tial license term shall run through December 31 of the fol-
lowing year.
SECTION 16. 138.09 (3) (c) of the statutes is amended
to read:
138.09 (3) (c) Such A license shall not be assignable
and shall permit operation under it only at or from the
location specified in the license at which location all
loans shall be consummated, but this provision shall not
prevent the licensee from making loans under this section
which are not initiated or consummated by face to face
contact away from the licensed location if permitted by
the division in writing or by rule or at an auction sale con-
ducted or clerked by a licensee.
SECTION 17. 138.09 (3) (cm) of the statutes is created
to read:
138.09 (3) (cm) Notwithstanding par. (c), a licensee
may contract with a person that is not licensed under this
section to service a consumer loan on behalf of the
licensee. The licensee is responsible for violations of this
section committed by the contracted party with respect to
the servicing of that loan, except where the contracted
party holds a license issued by the division that would
subject it to regulatory discipline for violations of this
section. The licensee’s responsibility for the contracted
party, as set forth in this paragraph, does not create a pri-
vate right of action against the licensee.
SECTION 18. 138.09 (3) (d) of the statutes is amended
to read: − 4 −2023 Wisconsin Act 267 2023 Senate Bill 668
138.09 (3) (d) A separate license shall be required for
each place of business maintained by the licensee.
Whenever a licensee shall change the address of its place
of business to another location within the same city, vil-
lage or town the licensee shall at once give written notice
thereof to the division, which shall replace the original
license with an amended license showing the new
address, provided the location meets with the require-
ments of par. (e) or to the nationwide multistate licensing
system and registry, as directed by the division, in a form
and manner acceptable to the division. No change in the
place of business of a licensee to a different city, village
or town shall be permitted under the same license.
SECTION 19. 138.09 (3) (e) 1. a. and f. of the statutes
are amended to read:
138.09 (3) (e) 1. a. A business engaged in making
loans for business or agricultural purposes or exceeding
$25,000 in principal amount, except that all such loans
having terms of 49 months or more are subject to sub. (7)
(gm) 2. or 4 .
f. A seller of checks money transmitter business
under ch. 217.
SECTION 20. 138.09 (3) (e) 3. of the statutes is created
to read:
138.09 (3) (e) 3. Any licensee operating under this
section shall keep the records affecting loans made pur-
suant to this section separate and distinct from the records
of any other business of the licensee.
SECTION 21. 138.09 (3) (f) of the statutes is amended
to read:
138.09 (3) (f) Every Each licensee shall make an
annual report to the division for each calendar year on or
before March 15 of the following year. The report shall
include business transacted by the licensee under the pro-
visions of this section and shall give all reasonable and
relevant information that the division may require. The
reports shall be made in the form and manner prescribed
by the division. Any licensee operating under this section
shall keep the records affecting loans made pursuant to
this section separate and distinct from the records of any
other business of the licensee and submit financial state-
ments as provided in s. 224.35 (8).
SECTION 22. 138.09 (3) (g) of the statutes is created
to read:
138.09 (3) (g) Each licensee shall keep current and
accurate all material information on file with the division
and the nationwide multistate licensing system and reg-
istry as provided in s. 224.35 (6).
SECTION 23. 138.09 (4) (a) 4. of the statutes is created
to read:
138.09 (4) (a) 4. The licensee has made a material
misstatement, or knowingly omitted a material fact, in an
application for a license or in information furnished to the
division or the nationwide multistate licensing system
and registry.
SECTION 24. 138.09 (4) (e) of the statutes is created
to read:
138.09 (4) (e) The division may report any enforce-
ment action, any violation of this section or of an admin-
istrative rule or order, or other relevant information to the
nationwide multistate licensing system and registry.
Except as provided in s. 224.35 (4) (b) and (c), these
reports to the nationwide multistate licensing system and
registry shall be confidential and are not subject to public
copying or inspection under s. 19.35 (1).
SECTION 25. 138.09 (6) of the statutes is amended to
read:
138.09 (6) (a) Except as provided in par. (b), the The
licensee shall keep such books and records in the
licensee’s place of business at a licensed location, or
accessible from a licensed location, as in the opinion of
the division will enable the division to determine whether
the provisions of this chapter are being observed. Every
such licensee shall preserve the records of final entry
used in such business, including cards used in the card
system, if any, for a period of at least 2 years after the
making of any loan recorded therein.
(b) A licensee may keep the books and records speci-
fied in par. (a) at a single location inside or outside of this
state if the books and records are kept at a location
licensed under this section. If any books and records are
not located within this state, the licensee, upon request of
the division, shall promptly deliver such information to
any location within this state specified by the division.
The licensee shall organize the books and records by the
place of business licensed location where the records
originated and shall keep the books and records separate
from other records for business conducted at that loca-
tion. Actual costs incurred by the division to examine
books and records maintained outside of this state shall
be paid by the licensee.
SECTION 26. 138.09 (7) (b), (bm) and (bn) of the
statutes are repealed.
SECTION 27. 138.09 (7) (c) 2. and 4. of the statutes are
amended to read:
138.09 (7) (c) 2. For the purpose of computing inter-
est under this section, whether at the maximum rate or
less, a day shall be considered one−thirtieth of a month
when such computation is made for a fraction of a month.
Loan contracts providing for installments payable at
monthly intervals may provide for a first period between
the date of the contract and the first installment due date
of not more than 45 days and not less than 15 days. Where
the first period is greater or lesser than one month, inter-
est may be charged only for each day in the first period,
at a rate not to exceed one−thirtieth of the interest which
would be applicable to a first installment period of one
month, but such first period may be considered a monthly
interval for purposes of determining rebates. Where the
first period is greater than one month, any additional − 5 − 2023 Wisconsin Act 267 2023 Senate Bill 668
interest charge shall be earned and may be added to and
collected at the time of the first installment payment.
4. If 2 installments or parts thereof of a precomputed
loan are not paid on or before the 10th day after their
scheduled or deferred due dates, a licensee may elect to
convert the loan from a precomputed loan to one in which
the interest is computed on unpaid balances actually out-
standing. In this event the licensee shall make a rebate
pursuant to the provisions on rebate upon prepayment as
of the due date of an unpaid installment, and thereafter
may charge interest from the due date as provided in
subd. 3. or by par. (b) 2. and no further delinquency or
deferral charges shall be made. The rate of interest may
equal but not exceed the annual percentage rate of
finance charge which was disclosed to the borrower
when the loan was made. The rate of interest shall be
computed on actual unpaid balances of the contract as
reduced by the rebate for the time that such balances are
actually outstanding from the due date as of which the
rebate was made until the contract is fully paid.
SECTION 28. 138.09 (7) (e) 2. of the statutes is
repealed.
SECTION 29. 138.09 (7) (e) 3. of the statutes is
amended to read:
138.09 (7) (e) 3. Notwithstanding subds. subd. 1. and
2., delinquency charges on precomputed consumer loans
shall be governed by s. 422.203.
SECTION 30. 138.09 (7) (g) (intro.) of the statutes is
amended to read:
138.09 (7) (g) (intro.) Except as provided in par.
(gm), upon Upon prepayment in full by cash, renewal,
refinancing or otherwise, the borrower shall be entitled to
a rebate of the unearned interest as provided in this para-
graph. If the combined rebate of interest and credit insur-
ance premiums otherwise required is less than $1, no
rebate need be made. The refunds shall be determined as
follows:
SECTION 31. 138.09 (7) (gm) 1. and 2. of the statutes
are repealed.
SECTION 31m. 138.09 (7) (i) (intro.), 1. and 2. of the
statutes are amended to read:
138.09 (7) (i) (intro.) In addition to interest, the
licensee may charge all of the following:
1. The additional charges allowed in s. 422.202
whether or not the loan is a consumer loan;.
2. An amount sufficient to cover the fee for filing the
termination statement required by s. 409.513 on loans
secured by merchandise other than a motor vehicle, a
manufactured home, or a boat; and.
SECTION 31o. 138.09 (7) (i) 4. of the statutes is cre-
ated to read:
138.09 (7) (i) 4. A nonrefundable prepaid finance
charge on a consumer loan, which is earned by the
licensee when charged, subject to the following:
a. If the amount financed is $500 or less, the prepaid
finance charge may not exceed 10 percent of the amount
financed or $50, whichever is less.
b. If the amount financed is more than $500 but does
not exceed $1,000, the prepaid finance charge may not
exceed 7.5 percent of the amount financed or $75, which-
ever is less.
c. If the amount financed exceeds $1,000, the prepaid
finance charge may not exceed 5 percent of the amount
financed or $175, whichever is less.
d. Notwithstanding subd. 4. a. to c., a prepaid finance
charge assessed on a consumer loan that is secured pri-
marily by an interest in real property, in a mobile home,
as defined in s. 101.91 (10), or in a manufactured home,
as defined in s. 101.91 (2), including a refinancing or loan
consolidation, may not exceed 2 percent of the amount
financed.
e. If a licensee charges a prepaid finance charge on
a consumer loan in which the amount financed does not
exceed $1,000 that is prepaid from the proceeds of a new
loan made by the same licensee within 4 months after the
prior loan, then the licensee shall reduce any prepaid
finance charge on the new loan by the amount of the pre-
paid finance charge on the prior loan.
f. If a licensee charges a prepaid finance charge on a
consumer loan in which the amount financed exceeds
$1,000 that is prepaid from the proceeds of a new loan
made by the same licensee within 6 months after the prior
loan, then the licensee shall reduce any prepaid finance
charge on the new loan by the amount of the prepaid
finance charge on the prior loan.
SECTION 32. 138.09 (7) (k) of the statutes is amended
to read:
138.09 (7) (k) All consumer loans as defined in s.
421.301 (12) shall be governed by chs. 421 to 427, but to
the extent that chs. 421 to 427 are inconsistent with this
section, this section shall govern.
SECTION 33. 138.12 (1) (cm) and (dm) of the statutes
are created to read:
138.12 (1) (cm) “Nationwide multistate licensing
system and registry” has the meaning given in s. 224.35
(1g) (b).
(dm) “Unique identifier” has the meaning given in s.
224.35 (1g) (e).
SECTION 34. 138.12 (3) (b) of the statutes is amended
to read:
138.12 (3) (b) A license issued under this section
expires on December 31 of the calendar year in which the
initial license term began, unless the initial license date
is between November 1 and December 31, in which
instance the initial license term shall run through Decem-
ber 31 of the following year. The annual license fee is
$500 and shall be paid to the division in a form and man-
ner acceptable to the division. Licenses may be renewed − 6 −2023 Wisconsin Act 267 2023 Senate Bill 668
May 1 of each year upon payment of the annual fee or
reinstated as provided in s. 224.35 (7).
SECTION 35. 138.12 (3) (c) of the statutes is repealed
and recreated to read:
138.12 (3) (c) A licensee shall make an annual report
and submit financial statements as provided in s. 224.35
(8).
SECTION 36. 138.12 (3) (d) 2. c. of the statutes is cre-
ated to read:
138.12 (3) (d) 2. c. The division may disclose infor-
mation to the nationwide multistate licensing system and
registry as provided in s. 224.35.
SECTION 37. 138.12 (3) (f), (g) and (h) of the statutes
are created to read:
138.12 (3) (f) The division shall utilize the nation-
wide multistate licensing system and registry, and the
provisions of s. 224.35 shall apply, with respect to appli-
cants and licensees under this section.
(g) An applicant or licensee under this section shall
register with, and maintain a valid unique identifier
issued by, the nationwide multistate licensing system and
registry.
(h) Each licensee shall keep current and accurate all
material information on file with the division and the
nationwide multistate licensing system and registry as
provided in s. 224.35 (6).
SECTION 38. 138.12 (4) (am) 1. of the statutes is
amended to read:
138.12 (4) (am) 1. An applicant shall pay to the divi-
sion a nonrefundable $300 license investigation fee and
a $500 annual license fee for the period ending on the
next April 30 December 31.
SECTION 39. 138.12 (5) (a) 2. of the statutes is
repealed and recreated to read:
138.12 (5) (a) 2. The licensee made a material mis-
statement, or knowingly omitted a material fact, in an
application for a license or in information furnished to the
division or the nationwide multistate licensing system
and registry.
SECTION 40. 138.12 (5) (b) of the statutes is amended
to read:
138.12 (5) (b) Before the division revokes, suspends
or refuses to renew the license of any premium finance
company on any ground other than failure to timely
renew or reinstate the license as provided in s. 224.35 (7),
the division shall give the company an opportunity to be
fully heard and to introduce evidence in the company’s
behalf. In lieu of revoking or suspending the license for
any of the causes enumerated in this subsection, after
hearing, the division may subject the premium finance
company to a penalty of not more than $200 for each
offense when in the division’s judgment the division
finds that the public interest would not be harmed by the
continued operation of such company. The amount of
any penalty under this paragraph shall be paid by the
company to the division for the use of the state. At any
hearing under this subsection, the division may adminis-
ter oaths to witnesses. Anyone testifying falsely, after
having been administered the oath, shall be subject to the
penalty of perjury.
SECTION 41. 138.12 (5r) of the statutes is created to
read:
138.12 (5r) REPORTING VIOLATIONS. The division
may report any enforcement action, any violation of this
section or of an administrative rule or order, or other rele-
vant information to the nationwide multistate licensing
system and registry. Except as provided in s. 224.35 (4)
(b) and (c), these reports to the nationwide multistate
licensing system and registry shall be confidential and
are not subject to public copying or inspection under s.
19.35 (1).
SECTION 42. 138.12 (14) of the statutes is repealed.
SECTION 43. 138.14 (1) (br), (jm) and (m) of the
statutes are created to read:
138.14 (1) (br) “Customer identification number”
means a unique number assigned to a customer in a man-
ner specified by the division, or by the database provider
acting at the direction of the division.
(jm) “Nationwide multistate licensing system and
registry” has the meaning given in s. 224.35 (1g) (b).
(m) “Unique identifier” has the meaning given in s.
224.35 (1g) (e).
SECTION 44. 138.14 (4) (a) 1. (intro.) of the statutes
is amended to read:
138.14 (4) (a) 1. (intro.) Application Subject to subd.
1g., application for licenses under sub. (5) shall be made
to the division in writing in the form and manner pre-
scribed by the division and shall include all of the follow-
ing:
SECTION 45. 138.14 (4) (a) 1g., 1m. and 1r. of the
statutes are created to read:
138.14 (4) (a) 1g. The division shall utilize the
nationwide multistate licensing system and registry, and
the provisions of s. 224.35 shall apply, with respect to
applicants and licensees under this section.
1m. An applicant or licensee under this section shall
register with, and maintain a valid unique identifier
issued by, the nationwide multistate licensing system and
registry.
1r. Each licensee shall keep current and accurate all
material information on file with the division and the
nationwide multistate licensing system and registry as
provided in s. 224.35 (6).
SECTION 46. 138.14 (4) (a) 2. c. of the statutes is cre-
ated to read:
138.14 (4) (a) 2. c. The division may disclose infor-
mation to the nationwide multistate licensing system and
registry as provided in s. 224.35.
SECTION 47. 138.14 (5) (c) of the statutes is repealed
and recreated to read:
138.14 (5) (c) A license may be renewed or reinstated
as provided in s. 224.35 (7). A license that is not renewed − 7 − 2023 Wisconsin Act 267 2023 Senate Bill 668
or reinstated by the end of the reinstatement period pro-
vided in s. 224.35 (7) shall be deemed to have expired on
December 31 of the year immediately preceding the rein-
statement period, unless the initial license date is between
November 1 and December 31, in which instance the ini-
tial license term shall run through December 31 of the fol-
lowing year.
SECTION 48. 138.14 (6) (a) of the statutes is amended
to read:
138.14 (6) (a) Whenever a licensee changes the
address of its place of business to another location within
the same city, village, or town, the licensee shall give
written notice thereof, in a form and manner prescribed
by the division, to the division within 10 business days of
the relocation and the division shall replace the original
license with an amended license showing the new
address. If so directed by the division, the licensee shall
provide any notice required under this subsection to the
nationwide multistate licensing system and registry as
provided in s. 224.35. No change in the place of business
of a licensee to a different city, village, or town is permit-
ted under the same license.
SECTION 49. 138.14 (6) (b) 1. b. of the statutes is
amended to read:
138.14 (6) (b) 1. b. A seller of checks money trans-
mitter business under ch. 217.
SECTION 50. 138.14 (7) (d) of the statutes is amended
to read:
138.14 (7) (d) A licensee shall make an annual report
to the division for each calendar year on or before March
15 of the following year. The report shall include busi-
ness transacted by the licensee under this section and
shall give all reasonable and relevant information that the
division may require, including the information required
for the division’s reports under par. (e). The reports shall
be made in the form and manner prescribed by the divi-
sion and submit financial statements as provided in s.
224.35 (8).
SECTION 51. 138.14 (8) (c) of the statutes is amended
to read:
138.14 (8) (c) The division shall have the same power
to conduct hearings, take testimony, and secure evidence
as is provided in ss. 217.17 and 217.18 powers granted
under s. 217.11.
SECTION 52. 138.14 (9) (a) 4. of the statutes is
amended to read:
138.14 (9) (a) 4. That the licensee made a material
misstatement, or knowingly omitted a material fact, in an
application for a license or in information furnished to the
division or the nationwide multistate licensing system
and registry.
SECTION 53. 138.14 (14) (c) 1. of the statutes is
amended to read:
138.14 (14) (c) 1. Allow a licensee accessing the
database to check a customer’s unique identification
number that is assigned to the customer in a manner spec-
ified by the division customer identification number. A
customer’s unique customer identification number may
not be based on the customer’s social security number.
SECTION 54. 138.14 (14) (m) of the statutes is
amended to read:
138.14 (14) (m) Before entering into a payday loan,
a licensee shall submit to the database provider the cus-
tomer’s name; unique customer identification number
that is assigned in a manner specified by the division;
address; driver license number or other method of state
identification; the amount of the transaction; the cus-
tomer’s check number, if applicable; the date of the trans-
action; the maturity date of the loan; and any other infor-
mation reasonably required by the division, in a format
approved by the division.
SECTION 55. 138.14 (15) (title) of the statutes is
amended to read:
138.14 (15) (title) PENALTIES; REPORTING VIOLATIONS.
SECTION 56. 138.14 (15) (c) of the statutes is created
to read:
138.14 (15) (c) The division may report any enforce-
ment action, any violation of this section or of an admin-
istrative rule or order, or other relevant information to the
nationwide multistate licensing system and registry.
Except as provided in s. 224.35 (4) (b) and (c), these
reports to the nationwide multistate licensing system and
registry shall be confidential and are not subject to public
copying or inspection under s. 19.35 (1).
SECTION 57. 186.113 (22) (title) of the statutes is
amended to read:
186.113 (22) (title) COMMUNITY CURRENCY
EXCHANGE AND SELLER OF CHECKS MONEY TRANSMITTER.
SECTION 58. 214.04 (20) of the statutes is amended
to read:
214.04 (20) Upon receiving approval from the divi-
sion, to act as an authorized agent for its customers in the
business and functions under ch. 217. A savings bank
that applies to function as a seller of checks money trans-
mitter shall meet the application requirements under ch.
217. The division may not charge a license or investiga-
tion fee for an application under this subsection. The
seller of checks money transmitter function of a savings
bank shall be under the jurisdiction and supervision of the
division. The division shall enforce ch. 217 as it applies
to savings banks. The division shall determine what
records shall be maintained and shall require the segrega-
tion of funds that are necessary for a savings bank to oper-
ate as a seller of checks money transmitter under this sub-
section and ch. 217.
SECTION 59. 215.13 (41) (title) of the statutes is
amended to read:
215.13 (41) (title) SELLER OF CHECKS MONEY TRANS-
MITTER.
SECTION 60. Chapter 217 of the statutes is repealed
and recreated to read:
CHAPTER 217 − 8 −2023 Wisconsin Act 267 2023 Senate Bill 668
MONEY TRANSMITTERS
217.01 Short title. This chapter may be cited as the
“Model Money Transmission Modernization Law.”
217.02 Definitions. In this chapter:
(1) “Acting in concert” means persons knowingly
acting together with a common goal of jointly acquiring
control of a licensee, whether or not pursuant to an
express agreement.
(2) “Authorized delegate” means a person a licensee
designates to engage in money transmission on behalf of
the licensee.
(3) “Average daily money transmission liability”
means the amount of a licensee’s outstanding money
transmission obligations at the end of each day in a given
period of time, added together, and divided by the total
number of days in the given period of time. For purposes
of calculating average daily money transmission liability
under this chapter for any licensee required to do so, the
given period of time shall be the quarters ending March
31, June 30, September 30, and December 31.
(4) “Bank Secrecy Act” means the Bank Secrecy Act,
31 USC 5311 et seq., and its implementing regulations.
(5) “Closed loop stored value” means stored value
that is redeemable by the issuer only for goods or services
provided by the issuer or its affiliate or franchisees of the
issuer or its affiliate, except to the extent required by
applicable law to be redeemable in cash for its cash value.
(6) (a) “Control” means any of the following:
1. The power to vote, directly or indirectly, at least 25
percent of the outstanding voting shares or voting inter-
ests of a licensee or person in control of a licensee.
2. The power to elect or appoint a majority of key
individuals or executive officers, managers, directors,
trustees, or other persons exercising managerial authority
of a licensee or person in control of a licensee.
3. The power to exercise, directly or indirectly, a con-
trolling influence over the management or policies of a
licensee or person in control of a licensee.
(b) A person is presumed to exercise a controlling
influence within the meaning of par. (a) 3. if the person
holds the power to vote, directly or indirectly, at least 10
percent of the outstanding voting shares or voting inter-
ests of a licensee or person in control of a licensee. A per-
son presumed to exercise a controlling influence under
this paragraph may rebut the presumption of control by
showing that the person is a passive investor.
(c) For purposes of determining the percentage of a
person controlled by any other person, the person’s inter-
est shall be aggregated with the interest of any other
immediate family member, including the person’s
spouse, parents, children, siblings, mothers−in−law,
fathers−in−law, sons−in−law, daughters−in−law, broth-
ers−in−law, sisters−in−law, and any other person who
shares the person’s home.
(7) “Division” means the division of banking.
(8) “Eligible rating” means a credit rating of any of
the 3 highest rating categories provided by an eligible rat-
ing service, whereby each category may include rating
category modifiers such as “plus” or “minus” for S&P, or
the equivalent for any other eligible rating service. Long−
term credit ratings are deemed eligible if the rating is
equal to A− or higher by S&P, or the equivalent from any
other eligible rating service. Short−term credit ratings are
deemed eligible if the rating is equal to or higher than
A−2 or SP−2 by S&P, or the equivalent from any other eli-
gible rating service. If ratings differ among eligible rating
services, the highest rating applies when determining
whether a security bears an eligible rating.
(9) “Eligible rating service” means any nationally
recognized statistical rating organization as defined by
the U.S. Securities and Exchange Commission, and any
other organization designated by the division.
(10) “Federally insured depository financial institu-
tion” means a bank, credit union, savings and loan associ-
ation, trust company, savings association, savings bank,
industrial bank, or industrial loan company organized
under the laws of the United States or any state of the
United States, when such bank, credit union, savings and
loan association, trust company, savings association, sav-
ings bank, industrial bank, or industrial loan company
has federally insured deposits.
(11) “In this state” includes, with respect to a money
transmission transaction, all of the following:
(a) A transaction requested in person at a physical
location within the geographic boundaries of this state.
(b) A transaction requested by telephone or elec-
tronic means by a resident of this state, if information
provided by the person requesting the transaction, or
other records of the provider of money transmission,
indicate that the person’s physical address or principal
place of business is located within the geographic bound-
aries of this state.
(12) “Key individual” means any individual ulti-
mately responsible for establishing or directing policies
and procedures of a licensee, such as an executive officer,
manager, director, or trustee.
(13) “Licensee” means a person licensed under this
chapter.
(14) “Material litigation” means litigation that,
according to U.S. generally accepted accounting princi-
ples, is significant to a person’s financial health and
would be required to be disclosed in the person’s annual
audited financial statements, report to shareholders, or
similar records.
(15) “Monetary value” means a medium of
exchange, whether or not redeemable in money.
(16) “Money” means a medium of exchange that is
authorized or adopted by the United States or a foreign
government. “Money” includes a monetary unit of − 9 − 2023 Wisconsin Act 267 2023 Senate Bill 668
account established by an intergovernmental organiza-
tion or by agreement between 2 or more governments.
(17) “Money transmission” means any of the follow-
ing:
(a) Selling or issuing payment instruments to a per-
son located in this state.
(b) Selling or issuing stored value to a person located
in this state.
(c) Receiving money for transmission from a person
located in this state.
(18) “MSB−accredited state” means a state that has
an agency that is accredited by the Conference of State
Bank Supervisors and Money Transmitter Regulators
Association for money transmission licensing and super-
vision.
(19) “Multistate licensing process” means any agree-
ment among state regulators relating to coordinated pro-
cessing of applications for money transmission licenses,
applications for the acquisition of control of a licensee,
control determinations, or notice and information
requirements for a change of key individuals.
(20) “Nationwide multistate licensing system and
registry” has the meaning given in s. 224.35 (1g) (b).
(21) (a) “Outstanding money transmission obliga-
tions” includes all of the following:
1. Any payment instrument or stored value issued or
sold by a licensee to a person located in the United States
or reported as sold by an authorized delegate of the
licensee to a person that is located in the United States
that has not yet been paid or refunded by or for the
licensee, or reported and delivered to the secretary of rev-
enue as provided under ch. 177.
2. Any money received for transmission by a licensee
or an authorized delegate in the United States from a per-
son located in the United States that has not been received
by the payee or refunded to the sender, or escheated in
accordance with applicable abandoned property laws.
(b) For purposes of this subsection, “in the United
States” includes any state, territory, or possession of the
United States, any U.S. military installation that is
located in a foreign country, the District of Columbia, and
the Commonwealth of Puerto Rico.
(22) (a) “Passive investor” means a person who
meets all of the following criteria:
1. The person does not have the power to elect a
majority of key individuals or executive officers, man-
agers, directors, trustees, or other persons exercising
managerial authority of a person in control of a licensee.
2. The person is not employed by, and does not have
any managerial duties of, a licensee or a person in control
of a licensee.
3. The person does not have the power to exercise,
either directly or indirectly, a controlling influence over
the management or policies of a licensee or person in con-
trol of a licensee.
(b) A passive investor may demonstrate satisfaction
of the criteria of par. (a) by completing an attestation or
other document, in a form and manner prescribed by the
division, confirming that each of those criteria is met.
(23) “Payment instrument” means a written or elec-
tronic check, draft, money order, traveler’s check, or
other written or electronic instrument for the transmis-
sion or payment of money or monetary value, whether or
not negotiable. “Payment instrument” does not include
stored value or any instrument that is redeemable by the
issuer only for goods or services provided by the issuer
or its affiliate or franchisees of the issuer or its affiliate,
except to the extent required by applicable law to be
redeemable in cash for its cash value. “Payment instru-
ment” also does not include any instrument that is not
sold to the public and is issued and distributed as part of
a loyalty, rewards, or promotional program.
(25) “Person” includes individuals, general partner-
ships, limited partnerships, limited liability companies,
corporations, trusts, associations, joint stock corpora-
tions, and other bodies politic or corporate.
(26) “Receiving money for transmission” or “money
received for transmission” means receiving money or
monetary value in the United States for transmission
within or outside the United States by electronic or other
means.
(27) “Stored value” means monetary value repre-
senting a claim against the issuer evidenced by an elec-
tronic or digital record, and that is intended and accepted
for use as a means of redemption for money or monetary
value or payment for goods or services. “Stored value”
includes prepaid access, as defined in 31 CFR 1010.100.
Notwithstanding the foregoing, “stored value” does not
include a payment instrument or closed loop stored
value, or stored value not sold to the public but issued and
distributed as part of a loyalty, rewards, or promotional
program.
(28) “Tangible net worth” means the aggregate assets
of a licensee excluding all intangible assets, less liabili-
ties, as determined in accordance with U.S. generally
accepted accounting principles.
(29) “Unique identifier” has the meaning given in s.
224.35 (1g) (e).
217.03 Exemptions. (1) This chapter does not apply
to any of the following:
(a) An operator of a payment system to the extent that
it provides processing, clearing, or settlement services,
between or among persons exempted by this section or
licensees, in connection with wire transfers, credit card
transactions, debit card transactions, stored−value trans-
actions, automated clearing house transfers, or similar
funds transfers.
(b) A person appointed as an agent of a payee to col-
lect and process a payment from a payor to the payee for
goods or services, other than money transmission itself, − 10 −2023 Wisconsin Act 267 2023 Senate Bill 668
provided to the payor by the payee, if all the following are
true:
1. There exists a written agreement between the
payee and the agent directing the agent to collect and
process payments from payors on the payee’s behalf.
2. The payee holds the agent out to the public as
accepting payments for goods or services on the payee’s
behalf.
3. Payment for the goods and services is treated as
received by the payee upon receipt by the agent, so that
the payor’s obligation is extinguished and there is no risk
of loss to the payor if the agent fails to remit the funds to
the payee.
(c) A person who acts as an intermediary by process-
ing payments between an entity that has directly incurred
an outstanding money transmission obligation to a sender
and the sender’s designated recipient, if all the following
are true:
1. The entity is licensed, or is exempt from licensing
requirements, under this chapter.
2. The entity provides a receipt, electronic record, or
other written confirmation to the sender identifying the
entity as the provider of money transmission in the trans-
action.
3. The entity bears sole responsibility to satisfy the
outstanding money transmission obligation to the sender,
including the obligation to make the sender whole in con-
nection with any failure to transmit the funds to the
sender’s designated recipient.
(d) The United States or a department, agency, or
instrumentality thereof, or its agent.
(e) Money transmission by the U.S. postal service or
an agent of the U.S. postal service.
(f) A state, county, city, or any other governmental
agency or governmental subdivision or instrumentality
of a state, or its agent.
(g) A federally insured depository financial institu-
tion, bank holding company, office of an international
banking corporation, foreign bank that establishes a fed-
eral branch pursuant to the International Bank Act, 12
USC 3102, corporation organized pursuant to the Bank
Service Corporation Act, 12 USC 1861 to 1867, or corpo-
ration organized under the Edge Act, 12 USC 611 to 633.
(h) Electronic funds transfer of governmental bene-
fits for a federal, state, county, or governmental agency
by a contractor on behalf of the United States or a depart-
ment, agency, or instrumentality thereof, or on behalf of
a state or governmental subdivision, agency, or instru-
mentality thereof.
(i) A board of trade designated as a contract market
under the federal Commodity Exchange Act, 7 USC 1 to
25, or a person that, in the ordinary course of business,
provides clearance and settlement services for a board of
trade to the extent of its operation as or for such a board.
(j) A registered futures commission merchant under
the federal commodities laws to the extent of its opera-
tion as such a merchant.
(k) A person registered as a securities broker−dealer
under federal or state securities laws to the extent of its
operation as such a broker−dealer.
(L) An individual employed by a licensee, authorized
delegate, or any person exempted from the licensing
requirements of this chapter when acting within the scope
of employment and under the supervision of the licensee,
authorized delegate, or exempted person as an employee
and not as an independent contractor.
(m) A person expressly appointed as a 3rd−party ser-
vice provider to or agent of an entity exempt under par.
(g), solely to the extent that all of the following are true:
1. The service provider or agent is engaging in money
transmission on behalf of and pursuant to a written agree-
ment with the exempt entity that sets forth the specific
functions that the service provider or agent is to perform.
2. The exempt entity assumes all risk of loss and all
legal responsibility for satisfying the outstanding money
transmission obligations owed to a purchaser or holder of
the outstanding money transmission obligations upon
receipt of the purchaser’s or holder’s money or monetary
value by the service provider or agent.
(n) A person exempted by written determination of
the division, if the division finds the exemption to be in
the public interest and that the regulation of the person is
not necessary for the purposes of this chapter.
(o) 1. A person that delivers wages or salaries on
behalf of employers to employees or facilitates the pay-
ment of payroll taxes to state and federal agencies, makes
payments relating to employee benefit plans, makes dis-
tributions of other authorized deductions from employ-
ees’ wages or salaries, or transmits other funds on behalf
of an employer in connection with transactions related to
employees.
2. Notwithstanding subd. 1., a person described in
subd. 1. that offers money transmission services or pro-
vides stored value cards directly to individual consumers
shall comply with this chapter to the extent of that activ-
ity.
(2) The division may require that any person claim-
ing to be exempt from licensing requirements under this
chapter provide information and documentation to the
division demonstrating that the person qualifies for any
claimed exemption.
217.04 Participation in the nationwide multistate
licensing system and registry; networked supervi-
sion; confidentiality. (1) PARTICIPATION IN THE NATION-
WIDE MULTISTATE LICENSING SYSTEM AND REGISTRY. The
division shall utilize the nationwide multistate licensing
system and registry, and the provisions of s. 224.35 shall
apply, with respect to applicants and licensees under this − 11 − 2023 Wisconsin Act 267 2023 Senate Bill 668
chapter. An applicant or licensee under this chapter shall
register with, and maintain a valid unique identifier
issued by, the nationwide multistate licensing system and
registry.
(2) NETWORKED SUPERVISION. To efficiently and
effectively administer and enforce this chapter and to
minimize regulatory burden, the division may do any of
the following:
(a) Participate in multistate supervisory processes
established between states and coordinated through the
Conference of State Bank Supervisors, Money Transmit-
ter Regulators Association, and affiliates and successors
thereof for all licensees that hold licenses in this state and
other states.
(b) Enter into agreements or relationships with other
government officials or federal and state regulatory agen-
cies and regulatory associations, including organizations
the membership of which is made up of state or federal
governmental agencies, to standardize methods or proce-
dures or share resources, records or related information
obtained under this chapter.
(c) Enter into agreements or relationships with the
nationwide multistate licensing system and registry, or
other entities designated by the nationwide multistate
licensing system and registry, to collect and maintain
records, coordinate multistate licensing processes and
supervision processes, process fees, and facilitate com-
munication with licensees or other persons subject to this
chapter.
(d) Utilize nationwide multistate licensing system
and registry forms, processes, and functionalities in
accordance with this chapter.
(e) Waive or modify any requirement, and establish
new requirements by rule or order, as reasonably neces-
sary to participate in the nationwide multistate licensing
system and registry.
(f) Accept a licensing, examination, or investigation
report made by another state or federal government
agency or official, or a report prepared by an independent
accounting firm.
(g) Accept the investigation results or control deter-
mination of another state, if the other state has sufficient
staffing and expertise and meets minimum standards.
(h) Conduct examinations in conjunction with exam-
inations conducted by representatives of other state agen-
cies or agencies of another state or of the federal govern-
ment.
(i) Utilize multistate record production standards and
examination procedures when such standards and proce-
dures will reasonably achieve the purposes of this chap-
ter.
(j) Participate in nationwide protocols for licensing
cooperation and coordination among state regulators if
these protocols are consistent with this chapter.
(k) Implement this chapter in a manner that facilitates
uniformity with respect to licensing, supervision, report-
ing, and regulation of licensees that are licensed in multi-
ple jurisdictions.
(3) CONFIDENTIALITY. (a) Section 220.06 applies to
this chapter.
(b) The division may not disclose information
received under s. 217.05 (3) (b) 2. to any person except
as follows:
1. The division may disclose the applicant’s social
security number or federal employer identification num-
ber to the department of revenue for the sole purpose of
requesting certifications under s. 73.0301 and to the
department of workforce development for the sole pur-
pose of requesting certifications under s. 108.227.
2. The division may disclose the applicant’s social
security number to the department of children and fami-
lies in accordance with a memorandum of understanding
under s. 49.857.
3. The division may disclose information to the
nationwide multistate licensing system and registry as
provided in s. 224.35.
217.05 License requirements. (1) LICENSE
REQUIRED. A person may not engage in the business of
money transmission or advertise, solicit, or hold itself out
as providing money transmission unless the person is
licensed under this chapter. This subsection does not
apply to an authorized delegate of a person licensed
under this chapter acting within the scope of authority
conferred by a written contract with the licensee, or to a
person who is exempt pursuant to s. 217.03 and does not
engage in money transmission outside the scope of the
exemption.
(2) LICENSE NOT TRANSFERABLE. A license issued
under this section is not transferable or assignable.
(3) APPLICATION FOR LICENSE. (a) An applicant for
a license shall apply in a form and manner prescribed by
the division and submit a $1,000 nonrefundable applica-
tion fee.
(b) The applicant shall provide all of the following
information to the division:
1. The legal name and residential and business
addresses of the applicant and any fictitious or trade
name used by the applicant in conducting its business.
2. The applicant’s federal employer identification
number or social security number, as applicable. If an
applicant who is an individual does not have a social
security number, the applicant, as a condition of applying
for or applying to renew a license, shall submit a state-
ment made or subscribed under oath or affirmation to the
division that the applicant does not have a social security
number. The form of the statement shall be prescribed by
the department of children and families.
3. A list of any criminal convictions of the applicant
and any material litigation in which the applicant has
been involved in the 10−year period next preceding the
submission of the application. − 12 −2023 Wisconsin Act 267 2023 Senate Bill 668
4. A description of any money transmission previ-
ously provided by the applicant and the money transmis-
sion that the applicant seeks to provide in this state.
5. A list of the applicant’s proposed authorized dele-
gates and the locations in this state where the applicant
and its authorized delegates propose to engage in money
transmission.
6. A list of other states in which the applicant is
licensed to engage in money transmission and any license
revocations, suspensions, or other disciplinary action
taken against the applicant in another state.
7. Information concerning any bankruptcy or
receivership proceedings affecting the applicant or a per-
son in control of the applicant.
8. A sample form of contract for authorized dele-
gates, if applicable.
9. A sample form of each payment instrument or
stored value, as applicable.
10. The name and address of any federally insured
depository financial institution through which the appli-
cant plans to conduct money transmission.
11. A copy of audited financial statements of the
applicant for the most recent fiscal year and for the
2−year period next preceding the submission of the appli-
cation or, if acceptable to the division, certified unaudited
financial statements for the most recent fiscal year or
another period acceptable to the division.
12. A certified copy of unaudited financial state-
ments of the applicant for the most recent fiscal quarter.
13. A copy of the surety bond or other form of secu-
rity required by s. 217.10 (2).
14. Any other information the division or the nation-
wide multistate licensing system and registry reasonably
requires with respect to the applicant.
(c) If the applicant is a corporation, limited liability
company, partnership, or other legal entity, the applicant
shall provide all of the following information to the divi-
sion, in addition to the information required under par.
(b):
1. The date of the applicant’s incorporation or forma-
tion and state or country of incorporation or formation.
2. A certificate of good standing from the state or
country in which the applicant is incorporated or formed,
if applicable.
3. A brief description of the structure or organization
of the applicant, including each parent or subsidiary of
the applicant and whether each parent or subsidiary is
publicly traded.
4. The legal name, any fictitious or trade name, all
business and residential addresses, and the employment,
as applicable, in the 10−year period next preceding the
submission of the application, of each key individual and
person in control of the applicant.
5. A list of any criminal convictions and material liti-
gation in which a person in control of the applicant that
is not an individual has been involved in the 10−year
period next preceding the submission of the application.
6. If the applicant is a publicly traded corporation, a
copy of the most recent report filed with the U.S. Securi-
ties and Exchange Commission under section 13 of the
Securities Exchange Act of 1934, 15 USC 78m.
7. If the applicant is a wholly owned subsidiary of a
publicly traded corporation, one of the following as
applicable:
a. If the parent corporation is publicly traded in the
United States, a copy of the parent corporation’s audited
financial statements for the most recent fiscal year or a
copy of the parent corporation’s most recent report filed
under section 13 of the Securities Exchange Act of 1934,
15 USC 78m.
b. If the parent corporation is publicly traded outside
the United States, a copy of similar documentation filed
with the regulator of the parent corporation’s domicile
outside the United States.
8. The name and address of the applicant’s registered
agent in this state.
(d) The division may waive one or more require-
ments of par. (b) or (c) or permit an applicant to submit
other information in lieu of the required information.
(4) INFORMATION REQUIREMENTS FOR CERTAIN INDI-
VIDUALS. (a) Any individual in control of a licensee or
applicant, any individual that seeks to acquire control of
a licensee, and each key individual shall provide all of the
following items to the division through the nationwide
multistate licensing system and registry as provided in s.
224.35 (2):
1. The individual’s fingerprints for submission to the
federal bureau of investigation and the division for pur-
poses of a national criminal history background check
unless the person currently resides outside of the United
States and has resided outside the United States for the
last 10 years.
2. Personal history and experience in a form and
manner prescribed by the division, to include all of the
following:
a. An independent credit report from a consumer
reporting agency. This requirement shall be waived if the
individual does not have a social security number.
b. Information related to any criminal convictions or
pending charges.
c. Information related to any regulatory or adminis-
trative action and any civil litigation involving claims of
fraud, misrepresentation, conversion, mismanagement
of funds, breach of fiduciary duty, or breach of contract.
3. Any other information the division or the nation-
wide multistate licensing system and registry reasonably
requires with respect to the individual.
(b) If the individual has resided outside the United
States at any time in the last 10 years, the individual shall
also provide an investigative background report prepared − 13 − 2023 Wisconsin Act 267 2023 Senate Bill 668
by an independent search firm that meets all of the fol-
lowing requirements:
1. The search firm has sufficient knowledge and
resources and employs accepted and reasonable method-
ologies in conducting its research for the background
report.
2. The search firm is not affiliated with, and does not
have an interest with, the individual it is researching.
3. The background report is written in the English
language and contains, at a minimum, all of the following
information:
a. If available in the individual’s current jurisdiction
of residency, a comprehensive credit report, or any equiv-
alent information obtained or generated by the indepen-
dent search firm to accomplish such report, including a
search of the court data in the countries, provinces, states,
cities, towns, and contiguous areas where the individual
resided and worked.
b. Criminal records information for the past 10 years,
including felonies, misdemeanors, or similar convictions
for violations of law in the countries, provinces, states,
cities, towns, and contiguous areas where the individual
resided and worked.
c. Employment history.
d. Media history, including an electronic search of
national and local publications, wire services, and busi-
ness applications.
e. Financial services−related regulatory history,
including money transmission, securities, banking,
insurance, and mortgage−related industries.
(5) ISSUANCE OF LICENSE. (a) When an application for
an original license under this section appears to include
all the items and address all the matters that are required,
the application is complete. The division shall promptly
notify the applicant in a record of the date on which the
application is determined to be complete.
(b) If an applicant fails to complete the application
for a new license or for a change in control of a license
within 60 days after the division provides written notice
that the application is incomplete, the application is
deemed abandoned and the application fee shall not be
refunded. An applicant whose application is deemed
abandoned under this paragraph may reapply as provided
in this section.
(c) A determination by the division that an applica-
tion is complete and is accepted for processing means
only that the application, on its face, appears to include
all of the items, including the criminal background check
response from the federal bureau of investigation, and
address all of the matters that are required, and is not an
assessment of the substance of the application or of the
sufficiency of the information provided.
(d) When an application is filed and considered com-
plete under this section, the division shall investigate the
applicant’s financial condition and responsibility, finan-
cial and business experience, character, and general fit-
ness. The division may conduct an on−site investigation
of the applicant, the reasonable cost of which the appli-
cant shall pay. If the applicant utilizes a multistate licens-
ing process, the division may accept the investigation
results of another state.
(e) The division shall issue a license to an applicant
under this section if the division finds all of the following:
1. The applicant has satisfied all applicable require-
ments of this section.
2. The applicant’s financial statements demonstrate
a sufficient net worth to meet the requirements of s.
217.10 (1).
3. The applicant has submitted a surety bond or other
permitted form of security that meets the requirements s.
217.10 (2).
4. The financial condition and responsibility, finan-
cial and business experience, competence, character, and
general fitness of the applicant, and the competence,
experience, character, and general fitness of the key indi-
viduals and persons in control of the applicant, indicate
that it is in the interest of the public to permit the applicant
to engage in money transmission.
5. The applicant has not been certified under s.
73.0301 by the department of revenue to be liable for
delinquent taxes.
6. The applicant has not been certified under s.
108.227 by the department of workforce development to
be liable for delinquent unemployment insurance contri-
butions.
7. If the applicant is an individual, the applicant has
not failed to comply, after appropriate notice, with a sub-
poena or warrant issued by the department of children
and families or a county child support agency under s.
59.53 (5) and related to paternity or child support pro-
ceedings and is not delinquent in making court−ordered
payments of child or family support, maintenance, birth
expenses, medical expenses or other expenses related to
the support of a child or former spouse, as provided in a
memorandum of understanding entered into under s.
49.857.
(f) The division shall approve or deny an application
within 120 days after the application’s completion date.
The division may for good cause extend the review
period. Unless the review period has been extended, an
application that is not approved or denied within 120
days after the completion date is deemed approved.
(g) The division shall issue a formal written notice of
the denial of a license application within 30 days of the
decision to deny the application. The division shall set
forth in the notice of denial the specific reasons for the
denial of the application. An applicant whose application
is denied by the division under this section may request
a hearing under s. 227.44 within 30 days after the date of
denial. The division may appoint a hearing examiner
under s. 227.46 to conduct the hearing. − 14 −2023 Wisconsin Act 267 2023 Senate Bill 668
(h) The initial license term shall begin on the day the
application is approved. The license shall expire on
December 31 of the year in which the license term began,
unless the initial license date is between November 1 and
December 31, in which instance the initial license term
shall run through December 31 of the following year.
(6) RENEWAL OF LICENSE AND ANNUAL FEE. (a) A
license may be renewed or reinstated as provided in s.
224.35 (7).
(b) No more than 60 days before license expiration,
a licensee shall pay an annual renewal fee on the basis of
its volume of money transmission in this state, as follows:
1. For a volume of $10,000,000 or less of money
transmitted in the prior calendar year, $500.
2. For a volume of $10,000,001 to $100,000,000 of
money transmitted in the prior calendar year, $1,000.
3. For a volume of $100,000,001 to $1,000,000,000
of money transmitted in the prior calendar year, $2,000.
4. For a volume greater than $1,000,000,000 of
money transmitted in the prior calendar year, $4,000.
(7) REVOCATION, SUSPENSION, OR REFUSAL TO RENEW
A LICENSE. (a) The division may, after a complaint,
notice, and hearing, deny an application or suspend,
revoke, or refuse to renew a license issued under this sec-
tion if the division finds any of the following:
1. The applicant or licensee failed to comply with an
order of the division, any provision of this chapter or rule
promulgated under this chapter, or any other state or fed-
eral law applicable to money transmission.
2. The applicant or licensee failed to cooperate with
an investigation, examination, or other request for infor-
mation by the division.
3. The applicant or licensee engaged in unsafe or
unsound practices in connection with the business of
money transmission.
4. The applicant or licensee made a material misstate-
ment, or knowingly omitted a material fact, in an applica-
tion for a license or in information furnished to the divi-
sion or the nationwide multistate licensing system and
registry.
5. The applicant or licensee engaged in any fraudu-
lent or deceptive conduct or gross negligence relating to
the business of money transmission.
6. A federal or state administrative order has been
entered against the applicant or licensee for violation of
any rule or regulation applicable to the conduct of the per-
son’s money transmission business.
7. The licensee no longer meets a requirement for ini-
tial granting of a license.
8. The licensee is financially unable to perform the
licensee’s obligations or has willfully failed without rea-
sonable cause to provide for payment of obligations.
9. The licensee failed to employ reasonable measures
to ensure that an authorized delegate complies with all
orders of the division, this chapter, and all rules promul-
gated under this chapter, and all other applicable state or
federal law.
10. The financial responsibility, character, reputa-
tion, experience, and general fitness of the applicant or
licensee, or a key individual or person in control thereof,
indicate that it is not in the public interest to permit the
applicant or licensee to provide money transmission in
this state.
11. The licensee failed to remove an authorized dele-
gate after receiving notice from the division that the
authorized delegate has failed to comply with an order of
the division, any provision of this chapter, any rule pro-
mulgated under this chapter, or any other applicable state
or federal law.
(b) The division shall restrict or suspend a license
issued to an individual if the individual fails to comply,
after appropriate notice, with a subpoena or warrant
issued by the department of children and families or a
county child support agency under s. 59.53 (5) and
related to paternity or child support proceedings or is
delinquent in making court−ordered payments of child or
family support, maintenance, birth expenses, medical
expenses, or other expenses related to the support of a
child or former spouse, as provided in a memorandum of
understanding entered into under s. 49.857. A licensee
whose license is restricted or suspended under this para-
graph is entitled to a notice and hearing only as provided
in a memorandum of understanding entered into under s.
49.857 and is not entitled to any other notice or hearing
under this chapter.
(c) The division shall revoke any license issued under
this section if the department of revenue certifies under
s. 73.0301 that the licensee is liable for delinquent taxes.
A licensee whose license is revoked under this paragraph
for delinquent taxes is entitled to a notice under s.
73.0301 (2) (b) 1. b. and hearing under s. 73.0301 (5) (a)
but is not entitled to any other notice or hearing under this
chapter.
(d) The division shall revoke any license issued
under this section if the department of workforce devel-
opment certifies under s. 108.227 that the licensee is
liable for delinquent unemployment insurance contribu-
tions. A licensee whose license is revoked under this
paragraph for delinquent unemployment insurance con-
tributions is entitled to a notice under s. 108.227 (2) (b)
1. b. and hearing under s. 108.227 (5) (a) but is not enti-
tled to any other notice or hearing under this chapter.
217.06 Acquisition of control; change of key indi-
vidual. (1) ACQUISITION OF CONTROL. (a) Any person,
or group of persons acting in concert, seeking to acquire
control of a licensee shall obtain the written approval of
the division prior to acquiring control. An individual is
not deemed to acquire control of a licensee and is not sub-
ject to the requirements under this subsection when that − 15 − 2023 Wisconsin Act 267 2023 Senate Bill 668
individual becomes a key individual in the ordinary
course of business.
(b) A person, or group of persons acting in concert,
seeking to acquire control of a licensee shall, in coopera-
tion with the licensee, submit an application in a form and
manner prescribed by the division. The application shall
include the information required by s. 217.05 (4) for any
new key individuals who have not previously completed
the requirements of s. 217.05 (4) for a licensee. Upon
request, the division may permit an applicant under this
section to submit information required in the application
without using the nationwide multistate licensing system
and registry.
(c) When an application under this subsection
appears to include all the items and address all the matters
that are required, the application is complete. The divi-
sion shall promptly notify the applicant in a record of the
date on which the application is determined to be com-
plete.
(d) A determination by the division that an applica-
tion is complete and is accepted for processing means
only that the application, on its face, appears to include
all the items and address all the matters that are required,
and is not an assessment of the substance of the applica-
tion or of the sufficiency of the information provided.
(e) When an application is filed and considered com-
plete under this subsection, the division shall investigate
the financial condition and responsibility, financial and
business experience, character, and general fitness of the
person, or group of persons acting in concert, seeking to
acquire control. If the applicant utilizes a multistate
licensing process, the division may accept the investiga-
tion results of another state.
(f) The division shall approve an acquisition of con-
trol under this subsection if the division finds all of the
following:
1. The applicant has satisfied all applicable require-
ments of this subsection.
2. The financial condition and responsibility, finan-
cial and business experience, competence, character, and
general fitness of the person, or group of persons acting
in concert, seeking to acquire control, and the compe-
tence, experience, character, and general fitness of the
key individuals and persons who would be in control of
the licensee after the acquisition of control, indicate that
it is in the interest of the public to permit the person, or
group of persons acting in concert, to control the licensee.
(g) The division shall approve or deny the application
within 60 days after the completion date. The division
may for good cause extend the review period. Unless the
review period has been extended, an application that is
not approved or denied within 60 days after the comple-
tion date is deemed approved.
(h) The division shall issue a formal written notice of
the denial of a license application within 30 days of the
decision to deny the application. The division shall set
forth in the notice of denial the specific reasons for the
denial of the application. An applicant whose application
is denied by the division under this section may request
a hearing under s. 227.44 within 30 days after the date of
denial. The division may appoint a hearing examiner
under s. 227.46 to conduct the hearing.
(i) The requirements of pars. (a) and (b) do not apply
to any of the following:
1. A person who acts as a proxy for the sole purpose
of voting at a designated meeting of the shareholders or
holders of voting shares or voting interests of a licensee
or a person in control of a licensee.
2. A person who acquires control of a licensee by
devise or descent.
3. A person who acquires control of a licensee as a
personal representative, custodian, guardian, conserva-
tor, or trustee, or as an officer appointed by a court of
competent jurisdiction or by operation of law.
4. A person who is exempt under s. 217.03 (1) (g).
5. A person exempted from the requirements of this
section by written determination of the division, if the
division finds this exemption to be in the public interest.
6. A public offering of securities of a licensee or a
person in control of a licensee.
7. An internal reorganization of a person in control
of the licensee if the ultimate person in control of the
licensee remains the same.
8. A person who has complied with and received
approval to engage in money transmission under this
chapter or was identified as a person in control in a prior
application filed with and approved by the division or by
an MSB−accredited state pursuant to a multistate licens-
ing process, if all the following conditions are satisfied:
a. The person has not had a license revoked or sus-
pended, and has not controlled a licensee that has had a
license revoked or suspended while the person was in
control of the licensee, within the previous 5 years.
b. If the person is a licensee, the person is well−man-
aged and received at least a satisfactory rating for compli-
ance at its most recent examination by an MSB−accred-
ited state, if a rating was given.
c. The licensee to be acquired and the person acquir-
ing control, if the person acquiring control is a licensee,
are each projected to meet the requirements of s. 217.10
after the acquisition of control is completed.
d. The licensee to be acquired and the person acquir-
ing control, if the person acquiring control is a licensee,
will not implement any material changes to their respec-
tive business plans as a result of the acquisition of control.
e. The person acquiring control, in cooperation with
the licensee, provides notice of the acquisition and attests
to the conditions of subd. 8. a. to d. in a form and manner
prescribed by the division. If the notice is not disap-
proved within 30 days after the date on which the notice
was determined by the division to be complete, the notice
is deemed approved. − 16 −2023 Wisconsin Act 267 2023 Senate Bill 668
(j) A person who is exempt from the requirements of
pars. (a) and (b) pursuant to par. (i) 2., 3., 4., 6., or 7. shall,
in cooperation with the licensee, notify the division
within 15 days after the acquisition of control. Notice
shall be provided by updating the licensee’s record
through the nationwide multistate licensing system and
registry or in any other manner acceptable to the division.
(k) Before filing an application for approval to
acquire control of a licensee, a person may request in
writing a determination from the division as to whether
the person would be considered a person in control of a
licensee upon consummation of a proposed transaction.
If the division determines that the person would not be a
person in control of a licensee, the person is not subject
to the requirements of pars. (a) and (b).
(2) CHANGE OF KEY INDIVIDUALS. (a) Upon adding or
replacing any key individual, a licensee shall do all of the
following:
1. No later than 15 days after the effective date of the
key individual’s appointment, provide notice of the
change in a manner acceptable to the division.
2. No later than 45 days after the effective date of the
individual’s appointment, provide the information
required by s. 217.05 (4).
(b) The division may issue a notice of disapproval of
a key individual if it finds that the competence, experi-
ence, character, or integrity of the individual indicates
that it is not in the interest of the public or the customers
of the licensee to permit the individual to be a key indi-
vidual of the licensee. The notice of disapproval shall
contain a statement of the basis for disapproval. An
applicant whose application is denied by the division
under this subsection may request a hearing under s.
227.44 within 30 days after the date of denial. The divi-
sion may appoint a hearing examiner under s. 227.46 to
conduct the hearing.
(c) If the notice of the change is not disapproved
within 90 days after the date on which the requirements
of par. (a) were determined to be complete, the key indi-
vidual is deemed approved.
217.07 Reporting and records. (1) REPORT OF CON-
DITION. Each licensee shall submit a report of condition
no later than 45 days after the end of each calendar quar-
ter, unless a longer period is authorized by the division.
The report of condition shall include all of the following:
(a) Financial information at the licensee level.
(b) Nationwide and state−specific money transmis-
sion transaction information in every jurisdiction in the
United States in which the licensee is licensed to engage
in money transmission.
(c) A permissible investments report.
(d) Transaction destination country reporting for
money received for transmission, if applicable. This
requirement applies only to a report of condition submit-
ted within 45 days of the end of the 4th calendar quarter.
(e) Any other information the division reasonably
requires with respect to the licensee.
(2) AUDITED FINANCIALS. (a) Each licensee shall sub-
mit audited financial information no later than 90 days
after the end of each fiscal year, unless a longer period is
authorized by the division. The submission shall include
an audited financial statement of the licensee for the fis-
cal year prepared in accordance with U.S. generally
accepted accounting principles, together with any other
information the division may reasonably require with
respect to the licensee.
(b) The audited financial statement shall be prepared
by an independent certified public accountant or inde-
pendent public accountant satisfactory to the division and
shall be accompanied by a certificate of opinion that is
satisfactory to the division. If the certificate of opinion
is qualified, the division may order the licensee to take
any action the division finds necessary to enable the inde-
pendent certified public accountant or independent pub-
lic accountant to remove the qualification.
(3) REPORT OF AUTHORIZED DELEGATES. Each licensee
shall submit a report of authorized delegates no later than
45 days after the end of each calendar quarter, unless a
longer period is authorized by the division. The report of
authorized delegates shall include all of the following, if
applicable:
(a) Contact information for each authorized delegate
of the licensee, including each authorized delegate’s
legal name, any fictitious or trade name, employer identi-
fication number, principal provider identifier, physical
address, mailing address, primary contact person, tele-
phone number, email address, start date as the licensee’s
authorized delegate, and end date, if any.
(b) Information concerning each authorized dele-
gate’s business in other states, including whether any
court or regulatory authority has prohibited the autho-
rized delegate from acting as an authorized delegate in
any jurisdiction.
(c) Any other information the division reasonably
requires with respect to the licensee’s authorized dele-
gates.
(4) REPORTS OF CERTAIN EVENTS. (a) A licensee shall
file a report with the division within one business day
after the licensee has reason to know of the occurrence of
any of the following events:
1. The filing of a petition by or against the licensee
under the U.S. Bankruptcy Code, 11 USC 101 to 110, for
bankruptcy or reorganization.
2. The filing of a petition by or against the licensee
for receivership, the commencement of any other judicial
or administrative proceeding for its dissolution or reorga-
nization, or the making of a general assignment for the
benefit of its creditors. − 17 − 2023 Wisconsin Act 267 2023 Senate Bill 668
3. The commencement of a proceeding to revoke or
suspend its license in a state or country in which the
licensee engages in business or is licensed.
(b) A licensee shall file a report with the division
within 3 business days after the licensee has reason to
know that the licensee or a key individual, person in con-
trol, or authorized delegate of the licensee has been
charged with or convicted of a felony.
(5) BANK SECRECY ACT REPORTS. A licensee and an
authorized delegate shall comply with all federal cur-
rency reporting, record keeping, and suspicious activity
reporting requirements as set forth in the Bank Secrecy
Act and other federal and state laws pertaining to money
laundering.
(6) RECORDS. (a) A licensee shall maintain all of the
following records for at least 3 years:
1. A record of each outstanding money transmission
obligation sold.
2. A general ledger posted at least monthly contain-
ing all asset, liability, capital, income, and expense
accounts.
3. Bank statements and bank reconciliation records.
4. Records of outstanding money transmission obli-
gations.
5. Records of each money transmission obligation
paid within the 3−year period.
6. A list of the last−known names and addresses of all
the licensee’s authorized delegates.
7. Any other records the division requires to be main-
tained by order or rule.
(b) Upon written request of the division to inspect
any record specified in par. (a), the licensee shall
promptly make the record available to the division. A
licensee shall maintain the records specified in par. (a) in
a location and manner that ensures the licensee can make
the records available to the division no later than 7 busi-
ness days after the division’s written request.
217.08 Authorized delegates. (1) Before a licensee
is authorized to conduct business through an authorized
delegate or allows a person to act as the licensee’s autho-
rized delegate, the licensee shall do all of the following:
(a) Adopt, and update as necessary, written policies
and procedures reasonably designed to ensure that the
licensee’s authorized delegates comply with applicable
state and federal law.
(b) Conduct a reasonable risk−based background
investigation sufficient for the licensee to determine
whether the authorized delegate has complied and will
likely comply with applicable state and federal law.
(c) Enter into a signed written agreement that does all
of the following:
1. Appoints the authorized delegate for the licensee
with the authority to conduct money transmission on
behalf of the licensee.
2. Sets forth the nature and scope of the relationship
between the licensee and the authorized delegate and the
respective rights and responsibilities of the parties.
3. Requires the authorized delegate to fully comply
with all applicable state and federal laws, rules, and regu-
lations pertaining to money transmission, including rele-
vant provisions of the Bank Secrecy Act and federal and
state laws pertaining to money laundering.
4. Requires the authorized delegate to remit and han-
dle money and monetary value in accordance with the
terms of the agreement.
5. Imposes a trust for the benefit of the licensee on
money and monetary value net of fees received for
money transmission.
6. Requires the authorized delegate to prepare and
maintain records as required by this chapter and applica-
ble rules.
7. States the authorized delegate’s consent to exami-
nation or investigation by the division.
8. States that the licensee is subject to regulation by
the division, and that, as part of that regulation, the divi-
sion may suspend or revoke an authorized delegate desig-
nation or require the licensee to terminate an authorized
delegate designation.
9. Acknowledges the authorized delegate’s receipt of
the written policies and procedures required under par.
(a).
(2) An authorized delegate of a licensee holds in trust
for the benefit of the licensee all money net of fees
received from money transmission. If any authorized
delegate commingles any funds received from money
transmission with any other funds or property owned or
controlled by the authorized delegate, all commingled
funds and other property shall be considered held in trust
in favor of the licensee in an amount equal to the amount
of money net of fees received from money transmission.
(3) An authorized delegate may not use a subdelegate
to conduct money transmission on behalf of a licensee.
(4) A person shall not engage in the business of
money transmission on behalf of a person not licensed
under this chapter or not exempt pursuant to s. 217.03.
A person violating this subsection shall be jointly and
severally liable with the unlicensed and nonexempt per-
son for engaging in the business of money transmission
without a license.
(5) If a licensee’s license is suspended, revoked, sur-
rendered, or expired, the licensee shall, within 5 business
days, provide documentation to the division that the
licensee has notified all applicable authorized delegates
of the licensee of the suspension, revocation, surrender,
or expiration of the license. Upon receiving notice of the
suspension, revocation, surrender, or expiration of a
license, an authorized delegate shall immediately cease − 18 −2023 Wisconsin Act 267 2023 Senate Bill 668
to provide money transmission as an authorized delegate
of the applicable licensee.
(6) The division may, by written order, suspend or
revoke the designation of an authorized delegate if the
division finds any of the following:
(a) The authorized delegate failed to comply with an
order of the division, any provision of this chapter, any
rule promulgated under this chapter, or any other state or
federal law applicable to money transmission.
(b) The authorized delegate failed to cooperate with
an investigation, examination, or other request for infor-
mation by the division.
(c) The authorized delegate engaged in unsafe or
unsound practices in connection with the business of
money transmission.
(d) The authorized delegate made a material mis-
statement, or knowingly omitted a material fact, in an
application for a license or in information furnished to the
division or the nationwide multistate licensing system
and registry.
(e) The authorized delegate engaged in any fraudu-
lent or deceptive conduct or gross negligence relating to
the business of money transmission.
(f) A federal or state administrative order has been
entered against the authorized delegate for violation of
any rule or regulation applicable to the conduct of the per-
son’s money transmission business.
(g) The financial responsibility, character, reputa-
tion, experience, and general fitness of the authorized
delegate indicate that it is not in the public interest to per-
mit the applicant or licensee to provide money transmis-
sion in this state.
217.09 Timely transmission; refunds; receipts
and other disclosures. (1) TIMELY TRANSMISSION. A
licensee shall forward all money received for transmis-
sion in accordance with the terms of the agreement
between the licensee and the sender, unless the licensee
has a reasonable belief, or a reasonable basis to believe,
that the sender is a victim of fraud or that the transaction
relates to a crime or violation of law, rule, or regulation.
If a licensee fails to forward money received for trans-
mission in accordance with this subsection, the licensee
shall state the reason for the failure in response to any
inquiries by the sender unless providing the response
would violate applicable state or federal law.
(2) REFUNDS. (a) Except as provided in par. (b), a
licensee shall refund to the sender any money received
for transmission within 10 days of receipt of the sender’s
written request for a refund.
(b) Paragraph (a) does not apply if any of the follow-
ing circumstances exist:
1. The money was forwarded within 10 days of the
date on which the money was received for transmission.
2. Instructions were given committing an equivalent
amount of money to the person designated by the sender
within 10 days of the date on which the money was
received for transmission.
3. The agreement between the licensee and the sender
instructs the licensee to forward the money at a time that
is beyond 10 days of the date on which the money was
received for transmission. If funds have not yet been for-
warded in accordance with the terms of the agreement
between the licensee and the sender, the licensee shall
issue a refund in accordance with the other provisions of
this section.
4. The refund request concerns a transaction that the
licensee has not completed because the licensee has a rea-
sonable belief, or a reasonable basis to believe, that the
sender is a victim of fraud or that the transaction relates
to a crime or violation of law, rule, or regulation.
5. The refund request does not include sufficient
information to enable the licensee to identify the sender
or, in the event the sender has multiple transactions out-
standing, the particular transaction to be refunded.
6. The money received for transmission is subject to
the federal remittance rule, 12 CFR 1005, subpart B.
7. The money was received for transmission pursuant
to a written agreement between the licensee and payee to
process payments for goods or services provided by the
payee.
(3) RECEIPTS. (a) Except as provided in par. (b), a
licensee or its authorized delegate shall provide the
sender a receipt for money received for transmission.
The receipt shall be in English and in the language princi-
pally used by the licensee or authorized delegate to
advertise, solicit, or negotiate transactions conducted in
person, electronically, or by phone, if other than English,
and shall include all the following information, as appli-
cable:
1. The name of the sender.
2. The name of the designated recipient.
3. The date of the transaction.
4. The unique transaction or identification number.
5. The licensee’s name, business address, and cus-
tomer service telephone number.
6. The amount of the transaction in U.S. dollars.
7. Any fee charged by the licensee to the sender for
the transaction.
8. Any taxes collected by the licensee from the sender
for the transaction.
(b) Paragraph (a) does not apply if any of the follow-
ing circumstances exist:
1. The money received for transmission is subject to
the federal remittance rule, 12 CFR 1005, subpart B.
2. The money received for transmission is not pri-
marily for personal, family, or household purposes.
3. The money is received for transmission pursuant
to a written agreement between the licensee and payee to
process payments for goods or services provided by the
payee. − 19 − 2023 Wisconsin Act 267 2023 Senate Bill 668
217.10 Prudential standards. (1) NET WORTH. A
licensee shall maintain at all times a tangible net worth in
excess of the greater of $100,000 or the sum of the fol-
lowing: 3 percent of the licensee’s first $100,000,000 in
total assets, plus 2 percent of any additional assets up to
$1,000,000,000, plus 0.5 percent of any additional assets
over $1,000,000,000. The division may exempt an appli-
cant or licensee from this requirement, in whole or in part,
if the division finds the exemption to be in the public
interest.
(2) SURETY BOND. A licensee shall at all times main-
tain a surety bond or other form of security acceptable to
the division. The minimum required amount of the secu-
rity shall be the greater of $100,000 or an amount equal
to 100 percent of the licensee’s average daily money
transmission liability in this state calculated for the most
recently completed 3−month period, up to $500,000. A
licensee that maintains security of at least $500,000 is not
required to calculate its average daily money transmis-
sion liability in this state.
(3) PERMISSIBLE INVESTMENTS. (a) A licensee shall
maintain at all times permissible investments that have a
market value computed in accordance with U.S. gener-
ally accepted accounting principles of not less than the
aggregate amount of all of the licensee’s outstanding
money transmission obligations.
(b) The following are permissible investments for
purposes of par. (a):
1. Cash, including demand deposits, savings
deposits, and funds in such accounts held for the benefit
of the licensee’s customers, maintained in a federally
insured depository financial institution.
2. Cash equivalents, including automated clearing
house items in transit to the licensee, automated clearing
house items or international wires in transit to a payee,
cash in transit via armored car, cash in smart safes, cash
in licensee−owned locations, debit card or credit card−
funded transmission receivables owed by any bank, and
money market mutual funds rated “AAA” by S&P, or the
equivalent from any eligible rating service.
3. Certificates of deposit or senior debt obligations of
a federally insured depository financial institution.
4. An obligation of the United States or a commis-
sion, agency, or instrumentality thereof.
5. An obligation of a state or a governmental subdivi-
sion, agency, or instrumentality thereof.
6. An obligation that is guaranteed fully as to princi-
pal and interest by the United States.
7. The amount of the security provided under sub. (2)
that exceeds the average daily money transmission liabil-
ity in this state.
8. The full drawable amount of a standby letter of
credit that meets all the following requirements:
a. It is irrevocable, unconditional, and unqualified.
b. It is issued by a federally insured depository finan-
cial institution; a foreign bank authorized under federal
law to maintain a federal agency or federal branch office
in a state; or a foreign bank that is authorized under the
law of a state to maintain a branch that is regulated, super-
vised, and examined by federal or state authorities having
regulatory authority over banks, credit unions, and trust
companies if the foreign bank or its parent company
bears an eligible rating.
c. It identifies the division or its agent as the stated
beneficiary.
d. It states an issue date and expiration date.
e. It automatically extends for one year, without a
written amendment, upon each expiration date unless the
issuer of the letter of credit notifies the division at least
60 days prior to any expiration date that the irrevocable
letter of credit will not be extended. Notice shall be pro-
vided by certified or registered mail or courier mail or
other receipted means.
f. It provides that the issuer of the letter of credit will
honor, at sight, a presentation made by the beneficiary to
the issuer of the original letter of credit and any amend-
ments thereto.
g. It provides that the issuer of the letter of credit will
honor, at sight, a written statement by the beneficiary that
a petition for bankruptcy, reorganization, receivership, or
dissolution has been filed by or against the licensee; the
licensee’s assets have been seized pursuant to an emer-
gency order issued on the ground that the licensee is, or
is at risk of becoming, insolvent; or the beneficiary has
received notice of expiration or nonextension of a letter
of credit and the licensee failed to demonstrate to the sat-
isfaction of the beneficiary that the licensee will maintain
the minimum permissible investments required in par. (a)
upon the expiration or nonextension of the letter of credit.
h. It stipulates that the beneficiary may obtain funds
up to the amount of the letter of credit no later than 7 days
after presenting a written statement by the beneficiary
that any of the events specified in subd. 8. g. has occurred.
i. It does not reference other agreements or provide
for any security interest in the licensee.
9. Receivables payable to a licensee from its autho-
rized delegates in the ordinary course of business that are
less than 7 days old, subject to the following limitations:
a. Receivables payable to a licensee from its autho-
rized delegates may not exceed 50 percent of the aggre-
gate value of the licensee’s total permissible investments.
b. Receivables payable to a licensee from a single
authorized delegate may not exceed 10 percent of the
aggregate value of the licensee’s total permissible invest-
ments.
10. a. Subject to the limitations in subd. 10. b., a
short−term investment of 6 months or less that bears an
eligible rating; commercial paper that bears an eligible
rating; a bill, note, bond, or debenture that bears an eligi-
ble rating; a U.S. tri−party repurchase agreement collat-
eralized at 100 percent or more with federal government
or agency securities, municipal bonds, or other securi- − 20 −2023 Wisconsin Act 267 2023 Senate Bill 668
ties that bear an eligible rating; a money market mutual
fund rated less than “AAA” and equal to or higher than
“A−” by S&P, or the equivalent from any other eligible
rating service; or a mutual fund or other investment fund
composed exclusively of the investments listed in
subds. 1. to 6.
b. The investments specified in subd. 10. a. may not
in the aggregate exceed 50 percent of the aggregate value
of the licensee’s total permissible investments. No single
category of investment under subd. 10. a. may exceed 20
percent of the aggregate value of the licensee’s total per-
missible investments. The division may limit the extent
to which a specific investment maintained by a licensee
within a class of permissible investments may be consid-
ered a permissible investment.
11. Cash, including demand deposits, savings
deposits, and funds in such accounts held for the benefit
of the licensee’s customers, maintained at a foreign
depository institution, subject to the following limita-
tions:
a. The licensee must have obtained at least a satisfac-
tory rating in its most recent examination under this chap-
ter.
b. The foreign depository institution must bear an eli-
gible rating, be registered under the Foreign Account Tax
Compliance Act, and not be located in a country that is
subject to sanctions from the office of foreign assets con-
trol in the U.S. treasury department or designated a high−
risk or noncooperative jurisdiction by the Financial
Action Task Force established at the G7 summit in Paris
on July 14, 1989.
c. Cash maintained at a foreign depository institution
may not exceed 10 percent of the aggregate value of the
licensee’s total permissible investments.
12. Any other investment authorized as a permissible
investment by rule or written determination of the divi-
sion.
(c) Permissible investments, even if commingled
with other assets of the licensee, are held in trust for the
benefit of the purchasers and holders of the licensee’s
outstanding money transmission obligations on an equi-
table basis in the event of insolvency, the filing of a peti-
tion by or against the licensee for bankruptcy or reorgani-
zation, the filing of a petition by or against the licensee
for receivership, the commencement of any other judicial
or administrative proceeding for the licensee’s dissolu-
tion or reorganization, or an action by a creditor against
the licensee who is not a beneficiary of the trust. Permis-
sible investments held in trust pursuant to this section are
not subject to attachment, levy of execution, or sequestra-
tion, except for a beneficiary of the trust. Any statutory
trust established hereunder shall be terminated upon
extinguishment of all the licensee’s outstanding money
transmission obligations.
(d) Following the issuance of a notice of expiration
or nonextension of a letter of credit under par. (b) 8. e.,
and no later than 15 days prior to the expiration date of
the letter of credit, the licensee shall demonstrate to the
satisfaction of the division that the licensee will continue
to comply with sub. (1) after the letter of credit expires.
If the licensee fails to do so, the division may draw on the
letter of credit up to an amount necessary to meet the
licensee’s requirements under sub. (1), which shall be
offset against the licensee’s outstanding money transmis-
sion obligations. The drawn funds shall be held in trust
by the division or its agent for the benefit of the pur-
chasers and holders of the licensee’s outstanding money
transmission obligations.
217.11 Powers of the division. In addition to the
powers granted in other sections of this chapter or other
applicable law, the division may do any of the following:
(1) Investigate, at any time, the business and examine
the books, accounts, records, and files used in the busi-
ness of every licensee or authorized delegate of a
licensee. The cost of each examination shall be paid by
each licensee so examined within 30 days after demand
by the division.
(2) Issue subpoenas and take testimony of any person
in relation to any matter within the division’s powers and
require the person to produce records regarding any mat-
ter related to the condition or business of a person
engaged in activity regulated under this chapter.
(3) Require any person to provide written reports or
answers to questions, in a form and manner acceptable to
the division, concerning any matter related to the condi-
tion or business of a person engaged in activity regulated
under this chapter.
(4) Use, contract for, or employ analytical systems,
methods, or software to examine or investigate any per-
son subject to this chapter.
(5) Accept an audit report made by an independent
certified public accountant or other qualified 3rd−party
auditor for an applicant or licensee and incorporate the
audit report in any report of examination or investigation.
(6) Promulgate rules or issue orders to administer,
enforce, or carry out the purposes of this chapter, includ-
ing such rules or orders as may be necessary to protect the
public from oppressive or deceptive practices of
licensees and to prevent evasions of this chapter.
(7) Take possession of any insolvent licensee under
the circumstances and utilizing the procedures pre-
scribed in s. 218.04 (9m), so far as applicable.
(8) Enter into a consent order at any time with a per-
son to resolve a matter arising under this chapter or any
rule promulgated under this chapter.
SECTION 61. 218.0101 (24m) and (37m) of the
statutes are created to read:
218.0101 (24m) “Nationwide multistate licensing
system and registry” has the meaning given in s. 224.35
(1g) (b).
(37m) “Unique identifier” has the meaning given in
s. 224.35 (1g) (e). − 21 − 2023 Wisconsin Act 267 2023 Senate Bill 668
SECTION 62. 218.0111 (2) of the statutes is amended
to read:
218.0111 (2) Either licensor under sub. (1) shall,
upon request, furnish the other licensor with any infor-
mation it may have, including such information as may
be available to the division of banking through the
nationwide multistate licensing system and registry, in
respect to any licensee or applicant for license or any
transaction in which such a licensee or applicant may be
a party or be interested. No license shall be issued under
s. 218.0114 (14) (a) and (g) until both licensors have
approved the application. The suspension or revocation
of either the license issued under s. 218.0114 (14) (a) or
(g) shall automatically suspend or revoke the other
license. Any suspension or revocation shall be certified
by the licensor ordering it to the other licensor.
SECTION 63. 218.0114 (4) of the statutes is renum-
bered 218.0114 (4) (a) and amended to read:
218.0114 (4) (a) Application for a license under this
section shall be made to the licensor, at such time, in such
form and with such information as the licensor shall
require and shall be accompanied by the required fees.
The division of banking shall utilize the nationwide mul-
tistate licensing system and registry, and the provisions
of s. 224.35 shall apply, with respect to sales finance com-
pany applicants and licensees, other than motor vehicle
dealers.
(b) An applicant for a sales finance company license,
other than a motor vehicle dealer, shall pay to the division
of banking a nonrefundable $300 investigation fee in
addition to the license fee under sub. (16). If the cost of
an investigation exceeds $300, the applicant shall, upon
demand of the division of banking, pay the amount by
which the cost of the investigation exceeds the nonre-
fundable fee. A licensee is not required to pay an investi-
gation fee for the renewal of a license.
(c) The licensor may require the applicant to provide
information relating to any pertinent matter that is com-
mensurate with the safeguarding of the public interest in
the locality in which the applicant proposes to engage in
business, except that information relating to the appli-
cant’s solvency and financial standing may not be
required for motor vehicle dealers except as provided in
sub. (20) (a). The information provided may be consid-
ered by the licensor in determining the fitness of the
applicant to engage in business as set forth in ss.
218.0101 to 218.0163.
SECTION 64. 218.0114 (4g) and (4m) of the statutes
are created to read:
218.0114 (4g) A sales finance company, other than
a motor vehicle dealer, shall keep current and accurate all
material information on file with the division of banking
and the nationwide multistate licensing system and reg-
istry as provided in s. 224.35 (6).
(4m) A sales finance company, other than a motor
vehicle dealer, shall submit financial statements as pro-
vided in s. 224.35 (8).
SECTION 65. 218.0114 (5) (b) of the statutes is
amended to read:
218.0114 (5) (b) A sales finance company or an
applicant for a sales finance company license shall pro-
vide and maintain in force a bond or irrevocable letter of
credit of in a form acceptable to the division of banking
in an amount that is not less than $25,000 issued by a
surety company licensed to do business in this state or a
federally insured financial institution, as defined in s.
705.01 (3). The bond or letter of credit shall be payable
to the state of Wisconsin for the use of the state and of any
person who sustains a loss because of an act of a sales
finance company that constitutes grounds for the suspen-
sion or revocation of a license under ss. 218.0101 to
218.0163.
SECTION 66. 218.0114 (13) (a) of the statutes is
amended to read:
218.0114 (13) (a) Licenses A license described in
sub. (16) expire expires on December 31 of the calendar
year for which the licenses are granted in which the initial
license term began, unless the initial license date is
between November 1 and December 31, in which
instance the initial license term shall run through Decem-
ber 31 of the following year. A license may be renewed
or reinstated as provided in s. 224.35 (7).
SECTION 67. 218.0114 (17) of the statutes is renum-
bered 218.0114 (17) (a) and amended to read:
218.0114 (17) (a) The licenses of dealers, manufac-
turers, factory branches, distributors, and distributor
branches and sales finance companies shall specify the
location of the office or branch and must be conspicu-
ously displayed at that location. In case the location of
the office or branch is changed, the licensor shall endorse
the change of location on the license, without charge, if
the new location is within the same municipality as the
previous location. A change of location to another
municipality shall require a new license, except for sales
finance companies.
SECTION 68. 218.0114 (17) (b) of the statutes is cre-
ated to read:
218.0114 (17) (b) A sales finance company, other
than a motor vehicle dealer, shall give written notice to
the division of banking, in a form and manner acceptable
to the division of banking, within 10 days of any change
of location of the office or branch specified in the license.
SECTION 69. 218.0114 (20) (c) of the statutes is
amended to read:
218.0114 (20) (c) An applicant or licensee furnishing
information under par. (a) may designate the information
as a trade secret, as defined in s. 134.90 (1) (c), or as con-
fidential business information. The licensor shall notify − 22 −2023 Wisconsin Act 267 2023 Senate Bill 668
the applicant or licensee providing the information 15
days before any information designated as a trade secret
or as confidential business information is disclosed to the
legislature, a state agency, as defined in s. 13.62 (2), a
local governmental unit, as defined in s. 605.01 (1), or
any other person. The applicant or licensee furnishing
the information may seek a court order limiting or pro-
hibiting the disclosure, in which case the court shall
weigh the need for confidentiality of the information
against the public interest in the disclosure. A designa-
tion under this paragraph does not prohibit the disclosure
of a person’s name or address, of the name or address of
a person’s employer or of financial information that
relates to a person when requested under s. 49.22 (2m) by
the department of children and families or a county child
support agency under s. 59.53 (5). A designation under
this paragraph does not prohibit the disclosure of sales
finance company application information to the nation-
wide multistate licensing system and registry, but, except
as provided in s. 224.35 (4) (b) and (c), this information
shall remain confidential and is not subject to public
copying or inspection under s. 19.35 (1).
SECTION 70. 218.0114 (21g) (b) 3. of the statutes is
created to read:
218.0114 (21g) (b) 3. The division of banking may
disclose information to the nationwide multistate licens-
ing system and registry as provided in s. 224.35.
SECTION 71. 218.0114 (25) of the statutes is created
to read:
218.0114 (25) A sales finance company, other than
a motor vehicle dealer, shall register with, and maintain
a valid unique identifier issued by, the nationwide multi-
state licensing system and registry.
SECTION 72. 218.0116 (1) (am) of the statutes is
amended to read:
218.0116 (1) (am) Material Making a material mis-
statement, or knowingly omitting a material fact, in an
application for a license or, in the case of a sales finance
company other than a motor vehicle dealer, in informa-
tion furnished to the nationwide multistate licensing sys-
tem and registry.
SECTION 73. 218.0161 (title) of the statutes is
amended to read:
218.0161 (title) Penalties; reporting violations.
SECTION 74. 218.0161 of the statutes is renumbered
218.0161 (1).
SECTION 75. 218.0161 (2) of the statutes is created to
read:
218.0161 (2) The division of banking may report any
enforcement action, any violation of this chapter or of an
administrative rule or order, or other relevant informa-
tion to the nationwide multistate licensing system and
registry. Except as provided in s. 224.35 (4) (b) and (c),
these reports to the nationwide multistate licensing sys-
tem and registry shall be confidential and are not subject
to public copying or inspection under s. 19.35 (1).
SECTION 76. 218.0162 of the statutes is amended to
read:
218.0162 Commencement of action. Upon the
request of the licensor, the department of justice or the
district attorney may commence an action in the name of
the state to recover a forfeiture under s. 218.0161. An
action under s. 218.0161 (1) shall be commenced within
3 years after the occurrence of the unlawful act or practice
which is the subject of the action.
SECTION 77. 218.02 (1) (e) and (f) of the statutes are
created to read:
218.02 (1) (e) “Nationwide multistate licensing sys-
tem and registry” has the meaning given in s. 224.35 (1g)
(b).
(f) “Unique identifier” has the meaning given in s.
224.35 (1g) (e).
SECTION 78. 218.02 (2) (a) 1. (intro.) of the statutes
is amended to read:
218.02 (2) (a) 1. (intro.) Each adjustment service
company shall apply to the division for a license to
engage in such business. Application for a separate
license for each office of a company to be operated under
this section shall be made to the division in writing, under
oath, in a form to be prescribed by and manner acceptable
to the division. The division may issue more than one
license to the same licensee. Except as provided in subd.
3., an application for a license under this section shall
include the following:
SECTION 79. 218.02 (2) (a) 2. c. of the statutes is cre-
ated to read:
218.02 (2) (a) 2. c. The division may disclose infor-
mation to the nationwide multistate licensing system and
registry as provided in s. 224.35.
SECTION 80. 218.02 (2) (d), (e) and (f) of the statutes
are created to read:
218.02 (2) (d) The division shall utilize the nation-
wide multistate licensing system and registry, and the
provisions of s. 224.35 shall apply, with respect to appli-
cants and licensees under this section.
(e) An applicant or licensee under this section shall
register with, and maintain a valid unique identifier
issued by, the nationwide multistate licensing system and
registry.
(f) Each licensee shall keep current and accurate all
material information on file with the division and the
nationwide multistate licensing system and registry as
provided in s. 224.35 (6).
SECTION 81. 218.02 (5) (a) and (b) of the statutes are
amended to read:
218.02 (5) (a) Every A license issued shall state the
address of the office at which the business is to be con-
ducted, the name of the licensee, and if the licensee is a
partnership, limited liability company or association, the
names of the members thereof, and if a corporation the
date and place of its incorporation. Such license shall be − 23 − 2023 Wisconsin Act 267 2023 Senate Bill 668
kept conspicuously posted in the office of the licensee and
under this section shall not be transferable or assignable.
(b) Whenever a licensee shall contemplate a change
of the licensee’s place of business to another location
within the same city, village, or town, the licensee shall
give written notice thereof to the division, in a form and
manner acceptable to the division, which shall attach to
the license the division’s authorization of such removal,
specifying the date thereof and the new location. Such
authorization shall be authority for the operation of such
business under the same license at the specified new loca-
tion. No change in the place of business of a licensee to
a location outside of the original city, village, or town
shall be permitted under the same license. If so directed
by the division, the licensee shall provide any notice
required under this subsection to the nationwide multi-
state licensing system and registry as provided in s.
224.35.
SECTION 82. 218.02 (5) (c) of the statutes is repealed
and recreated to read:
218.02 (5) (c) A license issued under this section
expires on December 31 of the calendar year in which the
initial license term began, unless the initial license date
is between November 1 and December 31, in which
instance the initial license term shall run through Decem-
ber 31 of the following year. A license may be renewed
or reinstated as provided in s. 224.35 (7).
SECTION 83. 218.02 (6) (a) (intro.) of the statutes is
amended to read:
218.02 (6) (a) (intro.) The division, after complaint,
notice and hearings as provided in s. 217.19 hearing, shall
revoke any license in the following cases:
SECTION 84. 218.02 (6) (a) 1. of the statutes is
amended to read:
218.02 (6) (a) 1. If the licensee has failed to pay the
annual license fee or to maintain in effect the bond
required under the provisions of this section;
SECTION 85. 218.02 (6) (a) 5. of the statutes is created
to read:
218.02 (6) (a) 5. If the licensee made a material mis-
statement, or knowingly omitted a material fact, in an
application for a license or in information furnished to the
division or the nationwide multistate licensing system
and registry.
SECTION 86. 218.02 (9) (title) of the statutes is
amended to read:
218.02 (9) (title) RULES AND REPORTS; FEES; ENFORCE-
MENT; REPORTING VIOLATIONS.
SECTION 87. 218.02 (9) (a) (intro.) of the statutes is
amended to read:
218.02 (9) (a) (intro.) A licensee shall make an
annual report and submit financial statements as pro-
vided in s. 224.35 (8). The division may make such rules
and require such further reports as the division deems
necessary for the enforcement of this section. Sections
217.17, 217.18 and 217.21 (1) and (2) The licensee shall
keep such books and records as will enable the division
to determine whether licensees are in compliance with
this section and any rules or orders issued thereunder.
The powers granted under s. 217.11 apply to and are
available for the purposes of this section. This paragraph
does not apply to any of the following:
SECTION 88. 218.02 (9) (c) of the statutes is amended
to read:
218.02 (9) (c) The division shall investigate, ascer-
tain and determine whether this chapter or the lawful
orders issued hereunder are being violated and for such
purposes the division shall have all of the powers con-
ferred by ss. 217.17 and 217.18 granted under s. 217.11.
The division shall report all violations to the district attor-
ney of the proper county for prosecution.
SECTION 89. 218.02 (9) (d) of the statutes is created
to read:
218.02 (9) (d) The division may report any enforce-
ment action, any violation of this section or of an admin-
istrative rule or order, or other relevant information to the
nationwide multistate licensing system and registry.
Except as provided in s. 224.35 (4) (b) and (c), these
reports to the nationwide multistate licensing system and
registry shall be confidential and are not subject to public
copying or inspection under s. 19.35 (1).
SECTION 90. 218.04 (1) (a) of the statutes is amended
to read:
218.04 (1) (a) “Collection agency” means any person
engaging in the business of collecting or receiving for
payment for others of any account, bill, or other indebted-
ness. “Collection agency” does not include attorneys at
law authorized to practice in this state and resident
herein, banks, express companies, credit unions, health
care billing companies, state savings banks, state savings
and loan associations, insurers and their agents, trust
companies, mortgage bankers licensed and operating
under subch. III of ch. 224, district attorneys acting under
s. 971.41, persons contracting with district attorneys
under s. 971.41 (5), real estate brokers, and real estate
salespersons.
SECTION 91. 218.04 (1) (b) of the statutes is renum-
bered 218.04 (1) (b) (intro.) and amended to read:
218.04 (1) (b) (intro.) “Collector” or “solicitor”
means any person employed by a collection agency to
collect or receive payment or to solicit the receiving or
collecting of payment who, on behalf of a collection
agency licensed under this section, does any of the fol-
lowing:
1. Collects, or attempts to collect, for others of any
account, bill, or other indebtedness outside of the office
or the person’s home.
SECTION 92. 218.04 (1) (b) 2. and 3. of the statutes
are created to read:
218.04 (1) (b) 2. Receives payment for others of any
account, bill, or other indebtedness. − 24 −2023 Wisconsin Act 267 2023 Senate Bill 668
3. Solicits any account, bill, or other indebtedness for
collection by the collection agency.
SECTION 93. 218.04 (1) (em) and (h) of the statutes
are created to read:
218.04 (1) (em) “Nationwide multistate licensing
system and registry” has the meaning given in s. 224.35
(1g) (b).
(h) “Unique identifier” has the meaning given in s.
224.35 (1g) (e).
SECTION 94. 218.04 (2) (a) and (b) of the statutes are
amended to read:
218.04 (2) (a) Except as provided in par. (b), a person
may not operate as a collection agency or as a collector
or solicitor in this state without first having obtained a
license as required by this section.
(b) A nonresident of this state is not required to obtain
a collection agency license if that person conducts collec-
tion business agency activity with state residents solely
by means of interstate telecommunications or interstate
mail.
SECTION 95. 218.04 (3) (a) 1. (intro.) of the statutes
is amended to read:
218.04 (3) (a) 1. (intro.) Application for licenses
under the provisions of this section shall be made to the
division in writing, under oath, on a form to be prescribed
by in a form and manner acceptable to the division. All
licenses shall expire on June 30 next following their date
of issue. Except as provided in subd. 3., an application
for a license under this section shall include the follow-
ing:
SECTION 96. 218.04 (3) (a) 1g., 1m. and 1r. of the
statutes are created to read:
218.04 (3) (a) 1g. The division shall utilize the
nationwide multistate licensing system and registry, and
the provisions of s. 224.35 shall apply, with respect to
applicants and licensees under this section.
1m. An applicant or licensee under this section shall
register with, and maintain a valid unique identifier
issued by, the nationwide multistate licensing system and
registry.
1r. Each licensee shall keep current and accurate all
material information on file with the division and the
nationwide multistate licensing system and registry as
provided in s. 224.35 (6).
SECTION 97. 218.04 (3) (a) 2. c. of the statutes is cre-
ated to read:
218.04 (3) (a) 2. c. The division may disclose infor-
mation to the nationwide multistate licensing system and
registry as provided in s. 224.35.
SECTION 98. 218.04 (3) (b) of the statutes is amended
to read:
218.04 (3) (b) At the time of making application,
every applicant for a collection agency license shall pay
a nonrefundable fee of $1,000 to the division for investi-
gating the application, unless the applicant is already
licensed under this section, and the sum of $200 as an
annual license fee for each place of business that is
required to be separately licensed under sub. (4) (a). If
the cost of investigation exceeds $1,000, the applicant
shall, upon demand of the division, pay the excess cost.
No investigation fee is required on the renewal of a
license.
SECTION 99. 218.04 (3) (c) of the statutes is repealed.
SECTION 100. 218.04 (4) (a) of the statutes is
amended to read:
218.04 (4) (a) Except as provided in par. (am), upon
the filing of such a license application and the payment
of such fee the applicable fees, the division shall make an
investigation, and if the division finds that the character
and general fitness and the financial responsibility of the
applicant, and the members thereof if the applicant is a
partnership, limited liability company or association, and
the officers and directors thereof if the applicant is a cor-
poration, warrant the belief that the business will be oper-
ated in compliance with this section the division shall
thereupon issue a license to said the applicant. Such A
license is not assignable and, except as provided in par.
(ap), shall permit operation under it only at or from the
location specified in the license, except that an employee
of a licensed collection agency may work from the
employee’s home if the employee complies with all of the
same requirements under this section and the division’s
rules that would apply if the employee were working
within the licensed office and except that a licensed col-
lector or solicitor may work outside the licensed office of
a collection agency. A nonresident of this state may, upon
complying with all other provisions of this section,
secure a collection agency license provided the nonresi-
dent maintains an active office in this state. Except as
provided in par. (ap), a separate license is required for
each place of business maintained by the licensee from
which the licensee or its collectors or solicitors engage in
the business of collecting or receiving payments for oth-
ers of any account, bill, or other indebtedness of a person
located in this state.
SECTION 101. 218.04 (4) (am) 1. of the statutes is
amended to read:
218.04 (4) (am) 1. The applicant fails to provide any
application information required under sub. (3) (a) 1. by
the division.
SECTION 102. 218.04 (4) (ap) and (c) of the statutes
are created to read:
218.04 (4) (ap) An employee of a licensed collection
agency may work from the employee’s residence. An
employee’s resident address may not be presented to the
public as a location or office of the collection agency,
through advertising or other means of communication.
No physical records of the collection agency may be
maintained at an employee’s residence. A separate
license under par. (4) (a) is not required for a residence
that meets the requirements of this paragraph. − 25 − 2023 Wisconsin Act 267 2023 Senate Bill 668
(c) If an applicant fails to complete the application for
an initial license within 60 days after the division pro-
vides written notice of the incomplete application, the
application is considered abandoned and the investiga-
tion fee shall not be refunded. An applicant whose appli-
cation is abandoned under this paragraph may reapply to
obtain a new license.
SECTION 103. 218.04 (5) (a) (intro.), 1., 2., 3. and 4.
of the statutes are amended to read:
218.04 (5) (a) (intro.) The division may suspend or
revoke any license issued under this section if the divi-
sion finds that any of the following applies:
1. The licensee has violated any of the provisions of
this section, rules promulgated under this section, or any
lawful order of the division made thereunder; under this
section.
2. Any fact or condition exists which, if it had existed
at the time of the original application for such the license,
would have warranted the division in refusing to issue
such the license;.
3. The licensee has failed to pay the annual license fee
or to maintain in effect the bond required under sub. (3)
(d);.
4. The licensee has failed to remit money due to any
and all claimants or forwarders within 30 days from on
or before the last day of the month following the close of
the month during which the collection was effected; or.
SECTION 104. 218.04 (5) (a) 6. of the statutes is cre-
ated to read:
218.04 (5) (a) 6. The licensee has made a material
misstatement, or knowingly omitted a material fact, in an
application for a license or in information furnished to the
division or the nationwide multistate licensing system
and registry.
SECTION 105. 218.04 (5) (c) of the statutes is
amended to read:
218.04 (5) (c) In the event of the death of a licensee,
if the licensee is an individual, or of the partners, if the
licensee is a partnership who is a sole proprietor, the
license of the agency shall terminate as of the date of
death of said the licensee, except the division may rein-
state a license if the estate of the former licensee signifies
to the division within 45 days its intention to continue the
business of the agency.
SECTION 106. 218.04 (6) (title) of the statutes is
amended to read:
218.04 (6) (title) LICENSES; POSTING; CHANGES OF
LOCATION; RENEWAL; DISCONTINUED OPERATIONS.
SECTION 107. 218.04 (6) (a) of the statutes is repealed
and recreated to read:
218.04 (6) (a) If a licensee intends to change the
address of its place of business to another location, the
licensee shall give written notice of the change, in a form
and manner prescribed by the division, at least 30 days
prior to the relocation.
SECTION 108. 218.04 (6) (b) of the statutes is
amended to read:
218.04 (6) (b) Every licensee applying for a renewal
of a license shall, on or before the first day of June, pay
in advance to the division the annual license fee. A
license may be renewed or reinstated as provided in s.
224.35 (7). A license that is not renewed or reinstated by
the end of the reinstatement period provided in s. 224.35
(7) shall be deemed to have expired on December 31 of
the year immediately preceding the reinstatement period,
unless the initial license date is between November 1 and
December 31, in which instance the initial license term
shall run through December 31 of the following year.
SECTION 109. 218.04 (6) (c) (intro.) and 2. of the
statutes are amended to read:
218.04 (6) (c) (intro.) Before discontinuing operating
as a collection agency under the provisions of this sec-
tion, every licensee shall furnish the division with proof
in a form to be determined by the division and approved
by the advisory committee that all of the following are
satisfied:
2. All Wisconsin client accounts have been returned
to the claimants or forwarders.
SECTION 110. 218.04 (7) (title) of the statutes is
amended to read:
218.04 (7) (title) POWERS OF DIVISION; ADVISORY COM-
MITTEES.
SECTION 111. 218.04 (7) (a) of the statutes is
amended to read:
218.04 (7) (a) To issue any general or special order
in execution of or supplementary to this chapter, includ-
ing such orders as may be necessary to protect the public
from oppressive or deceptive practices of licensees and
to prevent evasions of this chapter.
SECTION 112. 218.04 (8) of the statutes is repealed.
SECTION 113. 218.04 (9) of the statutes is created to
read:
218.04 (9) COLLECTORS AND SOLICITORS; ALIASES;
UNSIGNED NOTICES. (a) A collection agency is responsi-
ble for, and shall supervise the acts of, its collectors and
solicitors and any other person who otherwise acts on
behalf of the collection agency.
(b) In any oral or written communication with a
debtor, any collector or solicitor may use a separate alias.
This alias shall include a first and last name. No collector
or solicitor may have more than one alias. A collector or
solicitor may not change an alias unless for good cause
and the division is first notified of the change. Collectors
or solicitors employed by a licensee may not use the same
alias.
(c) A licensee may forward printed collection notices
to a debtor that are unsigned.
SECTION 114. 218.04 (9g) (c) of the statutes is
amended to read: − 26 −2023 Wisconsin Act 267 2023 Senate Bill 668
218.04 (9g) (c) Promptly Within 48 hours after col-
lection, a licensee shall deposit and maintain in the trust
account sufficient funds to pay all money due any
claimant or forwarder. A licensee may not use the trust
account for any other purpose.
SECTION 115. 218.04 (9m) (e) of the statutes is
amended to read:
218.04 (9m) (e) The division shall cause notice to be
given by publication of a class 3 notice, under ch. 985, if
no action has been commenced under par. (f), calling on
all persons who may have claims against such licensee,
to present the same to the division, and make legal proof
thereof at a place and within a time, to be therein speci-
fied. The division may mail a similar notice to all persons
whose names appear as claimants or forwarders upon the
books and records of the licensee or as may appear in the
records of the division on the sworn reports required to
be furnished the division according to the provisions of
sub. (10). Any claimant or forwarder whose portion of
the collection or collections has not been properly remit-
ted shall file a claim which shall be considered as a pre-
ferred claim for the amount actually due the claimant or
forwarder after deducting any commission or fee that
may be due and owing the licensee. If the division doubts
the justice and validity of any claim, the division may
reject the same and serve notice of such rejection upon
the claimant either by mail or personally. An affidavit of
the service of such notice, which shall be prima facie evi-
dence thereof, shall be filed with the division. An action
upon a claim so rejected must be brought in the circuit
court for the county wherein the licensee is located within
30 days after such service of such notice of rejection of
claim has been filed. Claims presented after the expira-
tion of the time fixed in the notice to the claimants or for-
warders shall be entitled to receive only liquidating divi-
dends declared after presentation, unless otherwise
ordered by the court. The court may fix a date after which
all claims shall be barred.
SECTION 116. 218.04 (10) (a) of the statutes is
repealed and recreated to read:
218.04 (10) (a) A licensee shall make an annual
report and submit financial statements as provided in s.
224.35 (8).
SECTION 117. 218.04 (10) (b) of the statutes is
amended to read:
218.04 (10) (b) The division shall require the licensee
to keep such books and records in the licensee’s place of
business as will enable the division to determine whether
the provisions of this section are being complied with.
Every such licensee shall preserve the records of final
entry used in such business for a period of at least 6 years
after final remittance is made on any account placed with
the licensee for collection or after any account has been
returned to the claimant on which one or more payments
have been paid.
SECTION 118. 218.04 (13) (title) of the statutes is
amended to read:
218.04 (13) (title) ENFORCEMENT; REPORTING VIOLA-
TIONS.
SECTION 119. 218.04 (13) of the statutes is renum-
bered 218.04 (13) (a) and amended to read:
218.04 (13) (a) The division shall have the duty,
power, jurisdiction and authority to investigate, ascertain
and determine whether this section or the lawful orders
issued hereunder are being violated and for such pur-
poses the division shall have all the powers conferred by
subs. (4) and (5). The If warranted, the division shall
report all violations to the district attorney of the proper
county for prosecution.
SECTION 120. 218.04 (13) (b) of the statutes is cre-
ated to read:
218.04 (13) (b) The division may report any enforce-
ment action, any violation of this section or of an admin-
istrative rule or order, or other relevant information to the
nationwide multistate licensing system and registry.
Except as provided in s. 224.35 (4) (b) and (c), these
reports to the nationwide multistate licensing system and
registry shall be confidential and are not subject to public
copying or inspection under s. 19.35 (1).
SECTION 121. 218.05 (1) (e) and (f) of the statutes are
created to read:
218.05 (1) (e) “Nationwide multistate licensing sys-
tem and registry” has the meaning given in s. 224.35 (1g)
(b).
(f) “Unique identifier” has the meaning given in s.
224.35 (1g) (e).
SECTION 122. 218.05 (3) (a) 2. of the statutes is
amended to read:
218.05 (3) (a) 2. The county and municipality, with
street and number, if any, where the community currency
exchange is to be conducted; and
SECTION 123. 218.05 (3) (am) 2. c. of the statutes is
created to read:
218.05 (3) (am) 2. c. The division may disclose infor-
mation to the nationwide multistate licensing system and
registry as provided in s. 224.35.
SECTION 124. 218.05 (3) (c) of the statutes is
amended to read:
218.05 (3) (c) Before any license is issued to a com-
munity currency exchange the applicant shall file annu-
ally with and have approved by the division a surety bond
in a form acceptable to the division in the principal sum
of $5,000, issued by an insurer authorized to do business
in this state. The bond shall run to the state of Wisconsin
and shall be for the benefit of any creditors of the commu-
nity currency exchange for any liability incurred for any
sum due to any payee of any check, draft or money order
left with the community currency exchange for collec-
tion, and also for any penalties that may be imposed
under this section. If the division finds at any time the − 27 − 2023 Wisconsin Act 267 2023 Senate Bill 668
bond is insecure or exhausted or otherwise doubtful, an
additional bond in like amount to be approved by the divi-
sion shall be filed by the licensee within 30 days after
written demand by the division.
SECTION 125. 218.05 (3) (d), (e) and (f) of the statutes
are created to read:
218.05 (3) (d) The division shall utilize the nation-
wide multistate licensing system and registry, and the
provisions of s. 224.35 shall apply, with respect to appli-
cants and licensees under this section.
(e) An applicant or licensee under this section shall
register with, and maintain a valid unique identifier
issued by, the nationwide multistate licensing system and
registry.
(f) Each licensee shall keep current and accurate all
material information on file with the division and the
nationwide multistate licensing system and registry as
provided in s. 224.35 (6).
SECTION 126. 218.05 (10) (a) and (c) of the statutes
are amended to read:
218.05 (10) (a) Such The license shall state the name
of the licensee and the address at which the business is to
be conducted. Such The license shall be kept conspicu-
ously posted in the place of business of the licensee and
shall not be transferable or assignable.
(c) Whenever a licensee shall wish to change the
licensee’s place of business to any location other than that
originally set forth in the license, the licensee shall give
written notice thereof to the division and if the change is
approved the division shall attach to the license, in writ-
ing, a rider stating the new address or location of the com-
munity currency exchange in a form and manner accepta-
ble to the division. If so directed by the division, the
licensee shall provide any notice required under this sub-
section to the nationwide multistate licensing system and
registry as provided in s. 224.35.
SECTION 127. 218.05 (11) (intro.) of the statutes is
amended to read:
218.05 (11) RENEWAL LICENSE EXPIRATION; RENEWAL;
REINSTATEMENT. (intro.) Every licensee shall, on or
before December 20, pay to the division the sum of $300
as an A license expires annually on December 31 of the
calendar year in which the initial license term began,
unless the initial license date is between November 1 and
December 31, in which instance the initial license term
shall run through December 31 of the following year.
The annual license fee for the next succeeding calendar
year and, at the same time, shall file with the division is
$300 and shall be paid to the division in a form and man-
ner acceptable to the division, together with the annual
bond and insurance policy or policies in the same amount
and of the same character as required by subs. (3) (c) and
(6). Licenses may be renewed and reinstated as provided
in s. 224.35 (7). The division may not renew a license
under this section if any of the following applies:
SECTION 128. 218.05 (12) (title) of the statutes is
amended to read:
218.05 (12) (title) REVOCATION; RESTRICTION AND
SUSPENSION; REPORTING VIOLATIONS.
SECTION 129. 218.05 (12) (a) 1. of the statutes is
amended to read:
218.05 (12) (a) 1. The licensee has failed to pay the
annual license fee or to maintain in effect the required
bond or insurance policy or policies or to comply with
any order, decision or finding of the division made pur-
suant to this section.
SECTION 130. 218.05 (12) (a) 4. of the statutes is cre-
ated to read:
218.05 (12) (a) 4. The licensee made a material mis-
statement, or knowingly omitted a material fact, in an
application for a license or in information furnished to the
division or the nationwide multistate licensing system
and registry.
SECTION 131. 218.05 (12) (f) of the statutes is created
to read:
218.05 (12) (f) The division may report any enforce-
ment action, any violation of this section or of an admin-
istrative rule or order, or other relevant information to the
nationwide multistate licensing system and registry.
Except as provided in s. 224.35 (4) (b) and (c), these
reports to the nationwide multistate licensing system and
registry shall be confidential and are not subject to public
copying or inspection under s. 19.35 (1).
SECTION 132. 218.05 (14) (a) of the statutes is
repealed and recreated to read:
218.05 (14) (a) A licensee shall make an annual
report and submit financial statements as provided in s.
224.35 (8).
SECTION 133. 220.02 (2) (c) of the statutes is
amended to read:
220.02 (2) (c) Sellers of checks Money transmitters
under ch. 217.
SECTION 134. 220.02 (3) of the statutes is amended
to read:
220.02 (3) It is the intent of sub. (2) to give the divi-
sion jurisdiction to enforce and carry out all laws relating
to banks or banking in this state, including those relating
to state banks, savings banks, savings and loan associa-
tions, and trust company banks, and also all laws relating
to small loan companies or other loan companies or agen-
cies, finance companies, insurance premium finance
companies, motor vehicle dealers, adjustment service
companies, community currency exchanges, mortgage
bankers, mortgage loan originators, mortgage brokers,
and collection agencies and those relating to sellers of
checks money transmitters under ch. 217, whether doing
business as corporations, individuals, or otherwise, but to
exclude laws relating to credit unions.
SECTION 135. 220.06 (1m) of the statutes is amended
to read: − 28 −2023 Wisconsin Act 267 2023 Senate Bill 668
220.06 (1m) No division employee may examine a
bank or licensee in which that person is interested as a
stockholder, officer, or employee. No division employee
may examine a bank or licensee located in the same vil-
lage, city, or county with any bank or licensee in which
that person is so interested. Employees in the division,
and each member and employee of the banking institu-
tions review board, shall keep secret all facts and infor-
mation obtained in the course of examinations or from
reports not under s. 221.1002 (1) filed by a bank or
licensee with the division, except so far as the public duty
of the person requires reporting upon or taking special
action regarding the affairs of any bank or licensee, and
except when called as a witness in any criminal proceed-
ing or trial in a court of justice. The division may furnish
to the federal deposit insurance corporation, to a federal
home loan bank, or to any regulatory authority for state
or federal financial institutions, insurance, or securities,
or to any organization the membership of which is made
up of regulatory authorities for state or federal financial
institutions, insurance, or securities, a copy of any exami-
nation made of any such bank or licensee or of any report
made by such bank or licensee and may give access to and
disclose to the corporation or, to any regulatory authority
for state or federal financial institutions, insurance, or
securities, or to any organization the membership of
which is made up of regulatory authorities for state or
federal financial institutions, insurance, or securities, any
information possessed by the division, or to a federal
home loan bank any information created by the division,
with reference to the conditions or affairs of any such
insured bank or licensee if the regulatory authority agrees
to treat all information received with the same degree of
confidentiality as applies to reports of examination that
are in the custody of the division.
SECTION 136. 224.35 (1g) of the statutes is created to
read:
224.35 (1g) DEFINITIONS. In this section:
(a) “Division” means the division of banking.
(b) “Nationwide multistate licensing system and reg-
istry” means the multistate system developed by the Con-
ference of State Bank Supervisors and the American
Association of Residential Mortgage Regulators and
owned and operated by the State Regulatory Registry,
LLC, or any successor or affiliate entity, for the licensing
and registration of persons in financial services indus-
tries.
(c) “Reinstatement period” means the period begin-
ning on the first day of January and ending on the last day
of February of the year following the expiration of a
license, or such other period prescribed by the division.
(d) “Renewal period” means the period beginning on
November 1 and ending on December 31, or such other
period prescribed by the division.
(e) “Unique identifier” means a number or other
identifier assigned by protocols established by the
nationwide multistate licensing system and registry.
SECTION 137. 224.35 (1m) (bm) of the statutes is cre-
ated to read:
224.35 (1m) (bm) The division may require an appli-
cant or licensee, or an individual with the power to direct
the management or policies of the applicant or licensee,
to submit an independent credit report from a consumer
reporting agency, an investigative background report
prepared by an independent search firm, fingerprints, or
any other personal or professional history information
deemed necessary by the division. The division may
require fingerprints for the purposes of identifying the
individual and to determine whether the individual has a
record of warrants, arrests, or convictions in any jurisdic-
tion. Fingerprints may be submitted, directly or as pro-
vided in s. 224.35 (2), to the federal bureau of investiga-
tion and any government agency or entity authorized to
receive this information for a state and national criminal
history record check.
SECTION 138. 224.35 (1r), (6), (7) and (8) of the
statutes are created to read:
224.35 (1r) APPLICABLE LICENSED ACTIVITIES. The
division shall utilize the nationwide multistate licensing
system and registry, as provided in this section, with
respect to applicants and licensees under ss. 138.09,
138.12, 138.14, 217.05, and 218.0114 except for motor
vehicle dealers within the meaning of ss. 218.0101 (23),
218.02, 218.04, 218.05, 224.72, and 224.725 and with
respect to applicants and registrants under s. 224.722.
(6) CHANGES TO INFORMATION. A licensee shall keep
current and accurate all material information on file with
the division and the nationwide multistate licensing sys-
tem and registry. If the information changes in any mate-
rial respect, the licensee must notify the division and the
nationwide multistate licensing system of the change
within 10 days after the change.
(7) LICENSE RENEWAL AND REINSTATEMENT. (a) Dur-
ing the renewal period, a licensee may renew a license by
submitting all of the following through the nationwide
multistate licensing system and registry or in such other
manner as directed by the division:
1. A renewal application, in a form and manner
acceptable to the division.
2. The annual fee required to maintain the license, if
applicable.
3. The bond or insurance information required to
maintain the license, if applicable.
4. Certification of the completion of continuing edu-
cation courses required to maintain the license, if appli-
cable.
(b) During the reinstatement period, a licensee may
reinstate a license by submitting all the items in par. (a) − 29 − 2023 Wisconsin Act 267 2023 Senate Bill 668
1. to 4., plus an additional nonrefundable fee of $100,
through the nationwide multistate licensing system and
registry or in such other manner as directed by the divi-
sion.
(c) After the reinstatement period, an expired license
may not be reinstated.
(d) The division may deny an application to renew a
license if any fact or condition exists that would warrant
revocation or suspension of the license.
(e) The renewal term is for a period of one year,
beginning January 1 of each year after the initial term.
(8) ANNUAL REPORTS AND FINANCIAL STATEMENTS. (a)
Applicability. Paragraphs (b) and (c) apply to licensees
under ss. 138.09, 138.12, 138.14, 218.02, 218.04, and
218.05. Licensees under s. 218.0114, except for motor
vehicle dealers within the meaning of s. 218.0101 (23),
must submit financial statements under par. (c), but they
are not required to submit annual reports under par. (b).
(b) Annual reports. Each licensee shall annually, on
or before March 31, submit through the nationwide mul-
tistate licensing system and registry or in such other man-
ner as directed by the division, a report giving such rea-
sonable and relevant information as the division may
require concerning the business transacted by the
licensee. This report shall be made in the form and man-
ner prescribed by the division.
(c) Financial statements. Each licensee shall annu-
ally, no later than 90 days following the end of its most
recently completed fiscal year, submit through the
nationwide multistate licensing system and registry or in
such other manner as directed by the division, a copy of
the licensee’s financial statements for that fiscal year.
The financial statements shall include a balance sheet and
income statement and shall be prepared in accordance
with generally accepted accounting principles.
SECTION 138m. 224.55 of the statutes is created to
read:
224.55 Support accounts for individuals with dis-
abilities. (1) DEFINITIONS. In this section:
(a) “ABLE account” means an account established
under an ABLE program.
(b) “ABLE program” means a qualified ABLE pro-
gram under section 529A of the Internal Revenue Code.
(2) DEPARTMENT TO ESTABLISH ABLE PROGRAM. (a)
Implementation directly or by agreement. The depart-
ment shall implement and administer an ABLE program,
either directly or by entering into a formal or informal
agreement with another state, or with an entity represent-
ing an alliance of states, to establish an ABLE program
or otherwise administer ABLE program services for the
residents of this state.
(b) Review of other states’ partnership programs.
The department shall review section 529A ABLE state
partnership programs offered by other states and, no later
than the first day of the 7th month beginning after the
effective date of this paragraph .... [LRB inserts date],
determine whether, as the best option for Wisconsin resi-
dents, the department will implement the ABLE program
under par. (a) directly or by entering into an agreement.
(c) Agreement terms. An agreement under par. (a)
may require the party contracting with the department, in
addition to providing any other services, to do any of the
following:
1. Develop and implement an ABLE program in
accordance with all requirements under section 529A of
the Internal Revenue Code, and modify this ABLE pro-
gram as necessary for participants in the ABLE program
to qualify for the federal income tax benefits or treatment
provided under section 529A of the Internal Revenue
Code and rules adopted under section 529A.
2. Engage the services of vendors on a contractual
basis for rendering professional and technical assistance
and advice in developing marketing plans and promo-
tional materials to publicize the ABLE program.
3. Work with organizations with expertise in support-
ing people with disabilities and their families in adminis-
tering the agreement and ensuring accessibility of the
ABLE program for people with disabilities.
4. Take any other action necessary to implement and
administer the ABLE program.
(d) Information about ABLE accounts. The depart-
ment shall include on its website information concerning
ABLE accounts, including current information on each
state that offers ABLE accounts, information on how res-
idents of this state may participate in those ABLE
accounts, and links to resources to provide information
about ABLE accounts in those states. The department
shall also provide such information in written materials
it prepares about ABLE accounts. The department shall
provide a link, on its website, to the website of the depart-
ment of agriculture, trade and consumer protection to
facilitate the filing of complaints related to ABLE
accounts.
(3) CONFIDENTIALITY. The department shall keep
confidential any personal and financial information
maintained by the department relating to an ABLE
account.
(4) FUNDING; RULES. (a) All expenses incurred by the
department under this section shall be paid from the
appropriation under s. 20.144 (1) (g).
(b) The department may promulgate rules to imple-
ment and administer this section.
SECTION 139. 224.71 (7) of the statutes is amended
to read:
224.71 (7) “Nationwide mortgage multistate licens-
ing system and registry” means the licensing and regis-
tration system developed and maintained by the Confer-
ence of State Bank Supervisors and the American
Association of Residential Mortgage Regulators for
licensed mortgage loan originators and mortgage loan
originators exempt from licensing under s. 224.725 (1m)
or, if this system is no longer maintained, any system − 30 −2023 Wisconsin Act 267 2023 Senate Bill 668
established by the secretary of the federal department of
housing and urban development under P.L. 110−289,
Title V, section 1509 has the meaning given in s. 224.35
(1g) (b).
SECTION 140. 224.71 (13g) (b) of the statutes is
amended to read:
224.71 (13g) (b) Registered with, and who maintains
a unique identifier through, the nationwide mortgage
multistate licensing system and registry.
SECTION 141. 224.71 (18) of the statutes is amended
to read:
224.71 (18) “Unique identifier” means a number or
other identifier assigned by protocols established by the
nationwide mortgage licensing system and registry has
the meaning given in s. 224.35 (1g) (e).
SECTION 142. 224.72 (2) (am) of the statutes is
amended to read:
224.72 (2) (am) Applicants for a mortgage banker or
mortgage broker license shall apply to the division, on
forms and in the manner prescribed by the division, and
shall pay the fee specified in rules promulgated under
sub. (8). The division shall utilize the nationwide multi-
state licensing system and registry, and the provisions of
s. 224.35 shall apply, with respect to mortgage bankers
and mortgage brokers. Forms prescribed by the division
under this paragraph may contain any content or require-
ment that the division, in its discretion, determines neces-
sary and these forms may be modified or updated as nec-
essary by the division to carry out the purposes of this
subchapter.
SECTION 143. 224.72 (2) (c) 2. c. of the statutes is cre-
ated to read:
224.72 (2) (c) 2. c. The division may disclose infor-
mation to the nationwide multistate licensing system and
registry as provided in s. 224.35.
SECTION 144. 224.72 (7) (title) of the statutes is
amended to read:
224.72 (7) (title) LICENSE RENEWAL AND REINSTATE-
MENT.
SECTION 145. 224.72 (7) (am) of the statutes is
renumbered 224.72 (7) and amended to read:
224.72 (7) A mortgage broker or mortgage banker
may apply to renew or reinstate a license issued under this
section by timely submitting, on forms and in the manner
prescribed by the division, a completed renewal applica-
tion and all required renewal fees. The division may not
renew a license issued under this section unless the divi-
sion finds that the mortgage broker or mortgage banker
continues to meet the minimum standards for license
issuance under this section as provided in s. 224.35 (7).
SECTION 146. 224.72 (7) (bm) of the statutes is
repealed.
SECTION 147. 224.725 (1) of the statutes is amended
to read:
224.725 (1) LICENSE REQUIRED. Except as provided
in subs. (1m) and (1r), an individual may not regularly
engage in the business of a mortgage loan originator with
respect to a residential mortgage loan, or use the title
“mortgage loan originator,” advertise, or otherwise por-
tray himself or herself as a mortgage loan originator in
this state, unless the individual has been issued by the
division, and thereafter maintains, a license under this
section. Each licensed mortgage loan originator shall
register with, and maintain a valid unique identifier
issued by, the nationwide mortgage multistate licensing
system and registry.
SECTION 148. 224.725 (1r) (a) 5. of the statutes is
amended to read:
224.725 (1r) (a) 5. The individual was registered
with the nationwide mortgage multistate licensing sys-
tem and registry as a loan originator during the one−year
period immediately preceding the date on which the indi-
vidual furnished the information required under sub. (2)
(c).
SECTION 149. 224.725 (1r) (c) 1. of the statutes is
amended to read:
224.725 (1r) (c) 1. The period during which an indi-
vidual described in par. (a) or (b) is considered to have
temporary authority to act as a mortgage loan originator
under this subchapter shall begin on the date on which the
individual furnishes to the nationwide mortgage multi-
state licensing system and registry the information
required under sub. (2) (c) in connection with the applica-
tion for a mortgage loan originator license under this sub-
chapter.
SECTION 150. 224.725 (1r) (c) 2. d. of the statutes is
amended to read:
224.725 (1r) (c) 2. d. If the individual’s application
is listed on the nationwide mortgage multistate licensing
system and registry as incomplete, the date that is 120
days after the date on which the individual applied for a
mortgage loan originator license.
SECTION 151. 224.725 (2) (a) of the statutes is
amended to read:
224.725 (2) (a) Applicants for a mortgage loan origi-
nator license shall apply to the division, on forms and in
the manner prescribed by the division, and shall pay the
fee specified in rules promulgated under sub. (8). The
division shall require utilize the nationwide multistate
licensing system and registry, and the provisions of s.
224.35 shall apply, with respect to mortgage loan origina-
tors to be licensed and registered through the nationwide
mortgage licensing system and registry. Forms pre-
scribed by the division under this paragraph may contain
any content or requirement that the division, in its discre-
tion, determines necessary and these forms may be modi-
fied or updated as necessary by the division to carry out
the purposes of this subchapter. − 31 − 2023 Wisconsin Act 267 2023 Senate Bill 668
SECTION 152. 224.725 (2) (b) 1. c. of the statutes is
created to read:
224.725 (2) (b) 1. c. The division may disclose infor-
mation to the nationwide multistate licensing system and
registry as provided in s. 224.35.
SECTION 153. 224.725 (2) (c) (intro.) and 2. (intro.)
of the statutes are amended to read:
224.725 (2) (c) (intro.) Any applicant for a license
under this section shall furnish to the nationwide mort-
gage multistate licensing system and registry informa-
tion concerning the applicant’s identity, including all of
the following:
2. (intro.) Personal history and experience in a form
prescribed by the nationwide mortgage multistate licens-
ing system and registry, including the submission of
authorization for the nationwide mortgage multistate
licensing system and registry and the division to obtain
all of the following:
SECTION 154. 224.725 (5) (title) of the statutes is
amended to read:
224.725 (5) (title) LICENSE RENEWAL AND REINSTATE-
MENT.
SECTION 155. 224.725 (5) (a) (intro.) of the statutes
is renumbered 224.725 (5) and amended to read:
224.725 (5) A mortgage loan originator may apply to
renew or reinstate a license issued under this section by
timely submitting, on forms and in the manner prescribed
by the division, a completed renewal application and all
required renewal fees. The division may not renew a
license issued under this section unless the division finds
that all of the following apply: as provided in s. 224.35
(7).
SECTION 156. 224.725 (5) (a) 1. and 2. of the statutes
are repealed.
SECTION 157. 224.725 (5) (b) of the statutes is
repealed.
SECTION 158. 224.728 (title) of the statutes is renum-
bered 224.35 (title) and amended to read:
224.35 (title) Nationwide mortgage multistate
licensing system and registry and cooperative
arrangements.
SECTION 159. 224.728 (1) of the statutes is renum-
bered 224.35 (1m) and amended to read:
224.35 (1m) PARTICIPATION. (a) The division shall
participate in the nationwide mortgage multistate licens-
ing system and registry. The division may establish rela-
tionships or contracts with the nationwide mortgage mul-
tistate licensing system and registry or other entities
designated by the nationwide mortgage multistate licens-
ing system and registry to collect and maintain records
and process transaction fees or other fees related to
licensees under this subchapter persons holding licenses
identified in sub. (1r). With respect to any form, fee, or
other information related to the initial issuance, transi-
tion, or renewal of a mortgage loan originator license
under this subchapter license identified in sub. (1r), the
division may require that any applicant submit such
form, fee, or other information directly to the nationwide
mortgage multistate licensing system and registry and
may authorize the nationwide mortgage multistate
licensing system and registry to perform any function
under this subchapter subch. III, s. 138.09, 138.12,
138.14, 218.0101 to 218.0163, 218.02, 218.04, or
218.05, or ch. 217 related to the licensing of mortgage
loan originators in this state any person with respect to a
license identified in sub. (1r).
(b) The division may require an applicant or licensee
to provide, and may provide to the nationwide mortgage
multistate licensing system and registry, any information
relating to an applicant for initial issuance or renewal of
a mortgage loan originator license identified in sub. (1r)
that the division and the nationwide mortgage multistate
licensing system and registry determine to be relevant to
the application or to any mortgage loan originator
responsibility administered or conducted through the
nationwide mortgage multistate licensing system and
registry related to the licensed activity.
(c) The division may rely on the nationwide mort-
gage multistate licensing system and registry to establish
any dates relating to application or reporting deadlines
for mortgage loan originators persons holding or apply-
ing for licenses identified in sub. (1r), to establish
requirements for amending or surrendering mortgage
loan originator licenses identified in sub. (1r), or to estab-
lish any other requirements applicable to mortgage loan
originators licensed under this subchapter persons hold-
ing licenses identified in sub. (1r) to the extent the
requirements are a condition of the state’s participation
in the nationwide mortgage multistate licensing system
and registry.
SECTION 160. 224.728 (2) of the statutes is renum-
bered 224.35 (2) and amended to read:
224.35 (2) CHANNELING INFORMATION. To reduce the
points of contact that the division may have to maintain,
and to facilitate compliance with the requirements under
s. 224.725 (2) (c) any requirement that an applicant pro-
vide identity information, including a social security
number or federal employer identification number, fin-
gerprints, credit reports, or other personal history, the
division may use the nationwide mortgage multistate
licensing system and registry as a channeling agent for
requesting and distributing information to and from any
source so directed by the division, including the federal
bureau of investigation, any state or federal department
of justice, or any other governmental agency.
SECTION 161. 224.728 (3) of the statutes is renum-
bered 224.35 (3) and amended to read:
224.35 (3) CHALLENGE PROCESS. The division shall
establish a process whereby mortgage loan originators
persons holding licenses identified in sub. (1r) may chal-
lenge information maintained by the nationwide mort- − 32 −2023 Wisconsin Act 267 2023 Senate Bill 668
gage multistate licensing system and registry on behalf of
the division.
SECTION 162. 224.728 (4) of the statutes is renum-
bered 224.35 (4), and 224.35 (4) (a) (intro.), (b) and (c),
as renumbered, are amended to read:
224.35 (4) (a) (intro.) If any information or material
is considered confidential or privileged under federal or
state law before it is provided or disclosed to the nation-
wide mortgage multistate licensing system and registry,
it shall continue to be confidential or privileged after it is
provided or disclosed to, and while maintained by, the
nationwide mortgage multistate licensing system and
registry, except to the extent federal or state law expressly
provides otherwise and except as provided in par. (c).
Confidential or privileged information or material under
this paragraph is not subject to any of the following:
(b) Confidential or privileged information or mate-
rial under par. (a) may be shared with any state or federal
regulatory agency having supervisory authority over
mortgage lending activities to which licenses identified
in sub. (1r) apply without losing any right or protection
of confidentiality or privilege under federal or state law.
(c) This subsection does not prohibit the nationwide
mortgage multistate licensing system and registry from
providing public access to information or material relat-
ing to the employment history of, and publicly adjudi-
cated disciplinary and enforcement actions against, mort-
gage loan originators persons holding licenses identified
in sub. (1r).
SECTION 163. 224.728 (5) of the statutes is renum-
bered 224.35 (5) and amended to read:
224.35 (5) COOPERATIVE ARRANGEMENTS. The divi-
sion may enter into cooperative, coordinating, or infor-
mation−sharing arrangements or agreements with other
governmental agencies or with associations representing
other governmental agencies, including the Conference
of State Bank Supervisors and the American Association
of Residential Mortgage Regulators.
SECTION 164. 224.74 (1) (a) of the statutes is
amended to read:
224.74 (1) (a) Mortgage call report. Each mortgage
banker, mortgage broker, and mortgage loan originator
licensed under this subchapter, and each registered entity,
shall submit to the nationwide mortgage multistate
licensing system and registry reports of condition, which
shall be in such form and contain such information as the
nationwide mortgage multistate licensing system and
registry may require.
SECTION 165. 224.74 (2) (b) of the statutes is
amended to read:
224.74 (2) (b) The division shall prepare a report for
each investigation or examination conducted under this
subsection. These reports, and correspondence regard-
ing these reports, are confidential, except that the divi-
sion may release these reports and correspondence in
connection with a disciplinary proceeding conducted by
the division, a liquidation proceeding, or a criminal
investigation or proceeding. In addition, any information
from these reports or correspondence may be provided to
the nationwide mortgage multistate licensing system and
registry and is not confidential to the extent specified in
s. 224.728 224.35 (4) (b) and (c).
SECTION 166. 224.755 (3) (a), (c) and (d) of the
statutes are amended to read:
224.755 (3) (a) No education course may count
toward the requirement under sub. (1) or (2) unless the
course has been reviewed and approved by the nation-
wide mortgage multistate licensing system and registry
based upon reasonable standards, including review and
approval of the course provider.
(c) Subject to any rule promulgated under s. 224.72
(7) (bm) or 224.725 (5) (b), if If an individual was previ-
ously registered as a loan originator under s. 224.72, 2007
stats., or previously licensed as a mortgage loan origina-
tor under s. 224.725, the division may not issue or renew
a mortgage loan originator license for the individual
under s. 224.725 unless the individual satisfies the
requirements under sub. (1) or (2) or demonstrates to the
division’s satisfaction that the individual has completed
all education requirements applicable to the individual in
the last year in which the individual’s license or registra-
tion was valid.
(d) Except as provided in any rule promulgated under
s. 224.72 (7) (bm) Unless expressly authorized by the
division, a licensed mortgage loan originator may receive
credit for a continuing education course only in the year
in which the course is taken and may not take the same
approved course in the same or successive years to meet
the requirements under sub. (2).
SECTION 167. 224.755 (4) (b) 1. of the statutes is
amended to read:
224.755 (4) (b) 1. No test may satisfy the requirement
under par. (a) unless the test is developed by the nation-
wide mortgage multistate licensing system and registry
and administered by a test provider approved by the
nationwide mortgage multistate licensing system and
registry based upon reasonable standards.
SECTION 168. 224.77 (1) (a) of the statutes is
amended to read:
224.77 (1) (a) Make a material misstatement, or
knowingly omit a material fact, in a license application
or in other information or reports furnished to the divi-
sion, to the nationwide mortgage multistate licensing
system and registry, or to any other governmental agency,
including failing to disclose a criminal conviction or any
disciplinary action taken by a state or federal regulatory
agency.
SECTION 169. 224.77 (9) of the statutes is amended
to read:
224.77 (9) REPORTING VIOLATIONS. The division shall
report regularly violations of this subchapter or of rules
promulgated under this subchapter, as well as enforce- − 33 − 2023 Wisconsin Act 267 2023 Senate Bill 668
ment actions and other relevant information, to the
nationwide mortgage multistate licensing system and
registry. Except as provided in s. 224.728 224.35 (4) (b)
and (c), these reports shall be confidential and are not
subject to public copying or inspection under s. 19.35 (1).
SECTION 170. 321.60 (1) (a) 12. of the statutes is
amended to read:
321.60 (1) (a) 12. A license or certificate of registra-
tion issued by the department of financial institutions, or
a division of it, under ss. 138.09, 138.12, 138.14, 202.13,
202.14, 217.06 217.05, 218.0101 to 218.0163, 218.02,
218.04, 218.05, 224.72, 224.725, or 224.93 or subch. IV
of ch. 551.
SECTION 171. 422.202 (3) (c) of the statutes is
amended to read:
422.202 (3) (c) A merchant may not, in the same
transaction, be subject to the penalty in s. 138.09 (9) (b),
218.0161 (1), or 425.305 and the penalty in s. 425.304,
based on the assessment of the same additional charges.
SECTION 172. 946.79 (1) (a) of the statutes is
amended to read:
946.79 (1) (a) “Financial institution” means a bank,
savings bank, savings and loan association, credit union,
loan company, sales finance company, insurance pre-
mium finance company, community currency exchange,
seller of checks money transmitter, insurance company,
trust company, securities broker−dealer, as defined in s.
551.102 (4), mortgage banker, mortgage broker, pawn-
broker, as defined in s. 134.71 (1) (e), telegraph company,
or dealer in precious metals, stones, or jewels.
SECTION 173. DFI−Bkg 74.01 (1) of the administra-
tive code is amended to read:
DFI−Bkg 74.01 (1) “Actual process of collection”
means regularly receiving payments at periodic intervals,
or debtor contacted within last 30 days and promise of
payment received, or an account referred for legal actions
where the collection agency has advanced legal costs. A
collection agency and its client may by written contract
agree to a different actual process of collection, but this
different actual process of collection must require more
effort on the part of the collection agency than merely
listing the account, inputting the account into its data-
base, writing one letter or making one call, or similar lev-
els of effort. This subsection first applies to contractual
relationships entered into between a collection agency
and its client after March 1, 1993.
SECTION 174. DFI−Bkg 74.01 (2) of the administra-
tive code is repealed.
SECTION 175. DFI−Bkg 74.01 (5m) of the adminis-
trative code is created to read:
DFI−Bkg 74.01 (5m) “Licensee” means a person
licensed under s. 218.04, Stats.
SECTION 176. DFI−Bkg 74.03 (title) of the adminis-
trative code is amended to read:
DFI−Bkg 74.03 (title) Office relocations and other
Other changes.
SECTION 177. DFI−Bkg 74.03 (1) of the administra-
tive code is repealed.
SECTION 178. DFI−Bkg 74.03 (2) of the administra-
tive code is amended to read:
DFI−Bkg 74.03 (2) OTHER CHANGES. A licensee shall
notify the division of any change to the information pro-
vided in the licensee’s renewal license application or pro-
vided in a previous notice of change filed by the licensee
with the division under this section. The notice shall be
in writing and, except in the case of a relocation, be
received by the division within 10 days after the change.
Each licensee shall keep current and accurate all material
information on file with the division and the nationwide
multistate licensing system and registry as provided in s.
224.35 (6), Stats. The licensee shall provide any addi-
tional information, data, and records regarding the a
change to the division within 20 days after the division
requests the information, data, or records. Any change
that is subject to the notice requirement shall be subject
to the approval of the division. In reviewing the change
or relocation, the division shall apply the same criteria as
the criteria for approval of an original license application.
Except in the case of a relocation, the division shall deter-
mine the cost of investigating and processing the change.
The licensee shall pay the division’s cost within 30 days
after the division demands payment. If so directed by the
division, the licensee shall provide any notice required
under this subsection to the nationwide multistate licens-
ing system and registry as provided in s. 224.35, Stats.
SECTION 179. DFI−Bkg 74.04 (1) (intro.) of the
administrative code is amended to read:
DFI−Bkg 74.04 (1) AGREEMENT WITH CREDITOR.
(intro.) Prior to accepting accounts for collection from a
creditor or earning or collecting a fee or commission, the
licensee shall enter into a written agreement with the
creditor. The agreement shall do all of the following:
SECTION 180. DFI−Bkg 74.05 (1) (intro.) of the
administrative code is amended to read:
DFI−Bkg 74.05 (1) REMITTANCE STATEMENT TO BE
FURNISHED EACH CREDITOR. (intro.) Licensee shall pro-
vide a remittance statement and remit any and all money
due to any and all creditors or forwarders within 30 days
from on or before the last day of the month following the
close of the month during which the collection was
effected as provided in s. 218.04 (5) (a) 4., Stats. The
remittance statement shall set forth all of the following:
SECTION 181. DFI−Bkg 74.06 of the administrative
code is renumbered DFI−Bkg 74.06 (2) and amended to
read:
DFI−Bkg 74.06 (2) Each licensee shall deposit in a
trust fund account in any approved financial institution
promptly after collection, sufficient funds to pay all mon-
eys due or owing all creditors or forwarders. The trust
fund account shall be used only for this purpose. A
licensee may maintain trust funds in an interest bearing − 34 −2023 Wisconsin Act 267 2023 Senate Bill 668
savings account or instrument provided it is identified as
a “trust account”. account.”
(3) Sufficient funds shall be maintained in the trust
account or trust accounts to pay all moneys due or owing
all creditors or forwarders. For the purpose of determin-
ing sufficient funds, amounts collected by a 3rd party, but
not yet deposited into the licensee’s trust account, are not
considered trust funds.
(4) Sufficient funds shall be maintained in or made
available to the trust checking account on which remit-
tance checks or electronic debits are drawn or made to
pay all checks and debits when presented.
(5) The licensee shall have sufficient documentation
from the trust account or trust accounts available to make
an adequate examination.
SECTION 182. DFI−Bkg 74.06 (1) of the administra-
tive code is created to read:
DFI−Bkg 74.06 (1) A licensee’s trust checking
account shall be identified as a “trust account.”
SECTION 183. DFI−Bkg 74.06 (6) of the administra-
tive code is created to read:
DFI−Bkg 74.06 (6) Third party payment processors
shall not be given authority to withdraw funds from the
licensee’s trust account or accounts.
SECTION 184. DFI−Bkg 74.07 (1) (j) of the adminis-
trative code is created to read:
DFI−Bkg 74.07 (1) (j) A roster of all collectors and
solicitors employed by the licensee. The list shall be
updated and accurate at all times and set forth all of the
following:
1. The individual’s first and last name, home address,
and indication of whether the individual works from the
individual’s residence.
2. The first and last name of any alias that is used by
the individual, the date the individual started to use the
alias, and, if applicable, the date the individual stopped
using the alias.
3. The date the individual was hired by the licensee.
4. The date the individual’s employment with the
licensee was terminated, if applicable.
SECTION 185. DFI−Bkg 74.10 (1) (c) of the adminis-
trative code is created to read:
DFI−Bkg 74.10 (1) (c) A licensee may not contract
for or assess a fee, commission, or any other charge to a
creditor for returning any account to the creditor that is
not in the actual process of collection, other than a con-
tracted fee for reasonable costs incurred by the licensee
for each account placed in error by the creditor.
SECTION 186. DFI−Bkg 74.10 (2) of the administra-
tive code is renumbered DFI−Bkg 74.10 (2) (b).
SECTION 187. DFI−Bkg 74.10 (2) (a) of the adminis-
trative code is created to read:
DFI−Bkg 74.10 (2) (a) In this subsection, “termi-
nated,” with respect to a license, includes a license that
is surrendered, revoked, or expired.
SECTION 188. DFI−Bkg 74.11 (10) of the administra-
tive code is created to read:
DFI−Bkg 74.11 (10) TRADE NAMES. (a) A licensee
may not conduct business in this state under any name or
names other than the name or names listed on the license.
(b) Before using any trade name, a licensee shall
obtain approval from the division for the use of the trade
name.
(c) A licensee may not conduct business in this state
using a trade name that includes a corporate identifier.
SECTION 189. DFI−Bkg 74.12 of the administrative
code is repealed.
SECTION 190. DFI−Bkg 74.14 of the administrative
code is repealed.
SECTION 191. DFI−Bkg 74.16 (9) of the administra-
tive code is amended to read:
DFI−Bkg 74.16 (9) Engage in other conduct which
that can reasonably be expected to threaten or harass the
debtor or a person related to the debtor including conduct
which violates.
(9g) Violate the Federal Fair Debt Collection Prac-
tices Act.
SECTION 192. DFI−Bkg 74.16 (9m) of the adminis-
trative code is created to read:
DFI−Bkg 74.16 (9m) Violate any federal or state
statute, rule, or regulation that relates to practice as a col-
lection agency.
SECTION 193. DFI−Bkg 75.01 (1m) of the adminis-
trative code is created to read:
DFI−Bkg 75.01 (1m) “Customer identification num-
ber” has the meaning given in s. 138.14 (1) (br), Stats.
SECTION 194. DFI−Bkg 75.08 (1) (c) 3. of the admin-
istrative code is amended to read:
DFI−Bkg 75.08 (1) (c) 3. Identify the name, address,
telephone number, and unique identification number of
the customer identification number.
SECTION 195. DFI−Bkg 75.08 (2) (a) 4. of the admin-
istrative code is amended to read:
DFI−Bkg 75.08 (2) (a) 4. Identify the name, address,
telephone number, and unique identification number of
the customer identification number.
SECTION 196.0Nonstatutory provisions.
(1) TRANSITION OF LICENSE INFORMATION.
(a) In this subsection:
1. “Division” means the division of banking in the
Department of Financial Institutions.
2. “Nationwide multistate licensing system and reg-
istry” has the meaning given in s. 224.35 (1g) (b).
(b) All persons holding a license under s. 138.09,
138.14, or 218.02 shall transition their license informa-
tion onto the nationwide multistate licensing system and
registry before January 31 of the year in which this para-
graph takes effect. The division may suspend the license
of any licensee subject to this paragraph that has not tran-
sitioned its license information onto the nationwide mul- − 35 − 2023 Wisconsin Act 267 2023 Senate Bill 668
tistate licensing system and registry by March 31 of the
year in which this paragraph takes effect.
(c) All persons holding a license under ch. 217 shall
transition their license information onto the nationwide
multistate licensing system and registry before March 31
of the year in which this paragraph takes effect. The divi-
sion may suspend the license of any licensee under ch.
217 that has not transitioned its license information onto
the nationwide multistate licensing system and registry
by March 31 of the year in which this paragraph takes
effect.
(d) All persons holding a license under s. 138.12 shall
transition their license information onto the nationwide
multistate licensing system and registry between January
2 of the year in which this paragraph takes effect and
March 31 of the year in which this paragraph takes effect.
The license of any licensee under s. 138.12 that has not
transitioned its license information onto the nationwide
multistate licensing system and registry by March 31 of
the year in which this paragraph takes effect will expire
on April 30 of the year in which this paragraph takes
effect, and such licensee will be required to apply for and
receive a new license to continue operating as an insur-
ance premium finance company in this state.
(e) All persons holding a license under s. 218.04 shall
transition their license information onto the nationwide
multistate licensing system and registry between March
1 of the year in which this paragraph takes effect and May
31 of the year in which this paragraph takes effect. The
license of any licensee under s. 218.04 that has not transi-
tioned its license information onto the nationwide multi-
state licensing system and registry by May 31 of the year
in which this paragraph takes effect will expire on June
30 of the year in which this paragraph takes effect, and
such licensee will be required to apply for and receive a
new license to continue operating as a collection agency
in this state.
(f) All persons holding a license under s. 218.0114,
except for motor vehicle dealers within the meaning of s.
218.0101 (23), or s. 218.05 shall transition their license
information onto the nationwide multistate licensing sys-
tem and registry before September 30 of the year in which
this paragraph takes effect. The division may suspend the
license of any licensee under s. 218.0114, except for
motor vehicle dealers within the meaning of s. 218.0101
(23), or s. 218.05 that has not transitioned its license
information onto the nationwide multistate licensing sys-
tem and registry by September 30 of the year in which
this paragraph takes effect.
(2) TRANSITION OF RENEWAL FEE DATES.
(a) In this subsection, “department” means the
Department of Financial Institutions.
(b) With regard to a license under s. 138.12 that
expires on April 30 of the year in which this paragraph
takes effect, the licensee shall pay to the department no
later than March 31 of that year a license fee equal to two−
thirds of the annual license fee specified under s. 138.12
(3) (b), to cover the period of May 1 through the new
December 31 license expiration date.
(c) With regard to a license under s. 218.04 that
expires on June 30 of the year in which this paragraph
takes effect, the licensee shall pay to the department no
later than June 1 of that year a license fee equal to one−
half of the annual license fee specified under s. 218.04 (3)
(b) to cover the period of July 1 through the new Decem-
ber 31 license expiration date.
SECTION 197.0Effective date.
(1) Notwithstanding s. 227.265, this act takes effect
on the first January 1 occurring at least 90 days after pub-
lication.