Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB668 Compare Versions

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1	1	LRB-5025/1
2	2	ARG:wlj
3	3	2023 - 2024 LEGISLATURE
4	4	2023 SENATE BILL 668
5	5	November 9, 2023 - Introduced by Senators KNODL and WANGGAARD, cosponsored
6	6	by Representatives O'CONNOR, MURPHY and MACCO. Referred to Committee on
7	7	Shared Revenue, Elections and Consumer Protection.
8	8	AN ACT to repeal 138.09 (7) (b), (bm) and (bn), 138.09 (7) (e) 2., 138.09 (7) (gm)
9	9	1. and 2., 138.12 (14), 218.04 (3) (c), 218.04 (8), 224.72 (7) (bm), 224.725 (5) (a)
10	10	1. and 2. and 224.725 (5) (b); to renumber 138.09 (1a) and 218.0161; to
11	11	renumber and amend 138.09 (1d), 138.09 (1m) (a), 218.0114 (4), 218.0114
12	12	(17), 218.04 (1) (b), 218.04 (13), 224.72 (7) (am), 224.725 (5) (a) (intro.), 224.728
13	13	(title), 224.728 (1), 224.728 (2), 224.728 (3), 224.728 (4) and 224.728 (5); to
14	14	amend 49.857 (1) (d) 12., 73.0301 (1) (d) 6., 100.315 (1), 108.227 (1) (e) 6., 138.09
15	15	(1m) (b) 1. (intro.), 138.09 (2), 138.09 (3) (c), 138.09 (3) (d), 138.09 (3) (e) 1. a. and
16	16	f., 138.09 (3) (f), 138.09 (6), 138.09 (7) (c) 2. and 4., 138.09 (7) (e) 3., 138.09 (7)
17	17	(g) (intro.), 138.09 (7) (k), 138.12 (3) (b), 138.12 (4) (am) 1., 138.12 (5) (b), 138.14
18	18	(4) (a) 1. (intro.), 138.14 (6) (a), 138.14 (6) (b) 1. b., 138.14 (7) (d), 138.14 (8) (c),
19	19	138.14 (9) (a) 4., 138.14 (14) (c) 1., 138.14 (14) (m), 138.14 (15) (title), 186.113
20	20	(22) (title), 214.04 (20), 215.13 (41) (title), 218.0111 (2), 218.0114 (5) (b),
21	21	218.0114 (13) (a), 218.0114 (20) (c), 218.0116 (1) (am), 218.0161 (title), 218.0162,
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36	36	ARG:wlj
37	37	SENATE BILL 668
38	38	218.02 (2) (a) 1. (intro.), 218.02 (5) (a) and (b), 218.02 (6) (a) (intro.), 218.02 (6)
39	39	(a) 1., 218.02 (9) (title), 218.02 (9) (a) (intro.), 218.02 (9) (c), 218.04 (1) (a), 218.04
40	40	(2) (a) and (b), 218.04 (3) (a) 1. (intro.), 218.04 (3) (b), 218.04 (4) (a), 218.04 (4)
41	41	(am) 1., 218.04 (5) (a) (intro.), 1., 2., 3. and 4., 218.04 (5) (c), 218.04 (6) (title),
42	42	218.04 (6) (b), 218.04 (6) (c) (intro.) and 2., 218.04 (7) (title), 218.04 (7) (a), 218.04
43	43	(9g) (c), 218.04 (9m) (e), 218.04 (10) (b), 218.04 (13) (title), 218.05 (3) (a) 2.,
44	44	218.05 (3) (c), 218.05 (10) (a) and (c), 218.05 (11) (intro.), 218.05 (12) (title),
45	45	218.05 (12) (a) 1., 220.02 (2) (c), 220.02 (3), 220.06 (1m), 224.71 (7), 224.71 (13g)
46	46	(b), 224.71 (18), 224.72 (2) (am), 224.72 (7) (title), 224.725 (1), 224.725 (1r) (a)
47	47	5., 224.725 (1r) (c) 1., 224.725 (1r) (c) 2. d., 224.725 (2) (a), 224.725 (2) (c) (intro.)
48	48	and 2. (intro.), 224.725 (5) (title), 224.74 (1) (a), 224.74 (2) (b), 224.755 (3) (a),
49	49	(c) and (d), 224.755 (4) (b) 1., 224.77 (1) (a), 224.77 (9), 321.60 (1) (a) 12., 422.202
50	50	(3) (c) and 946.79 (1) (a); to repeal and recreate 138.09 (3) (b), 138.12 (3) (c),
51	51	138.12 (5) (a) 2., 138.14 (5) (c), chapter 217, 218.02 (5) (c), 218.04 (6) (a), 218.04
52	52	(10) (a) and 218.05 (14) (a); and to create 138.09 (1c) (a) 3., 4., 5. and 6., 138.09
53	53	(1c) (b), 138.09 (1g) (a), (b), (d), (e), (f), (g), (h) and (i), 138.09 (1m) (b) 2. c., 138.09
54	54	(1m) (d) and (e), 138.09 (3) (cm), 138.09 (3) (e) 3., 138.09 (3) (g), 138.09 (4) (a)
55	55	4., 138.09 (4) (e), 138.12 (1) (cm) and (dm), 138.12 (3) (d) 2. c., 138.12 (3) (f), (g)
56	56	and (h), 138.12 (5r), 138.14 (1) (br), (jm) and (m), 138.14 (4) (a) 1g., 1m. and 1r.,
57	57	138.14 (4) (a) 2. c., 138.14 (15) (c), 218.0101 (24m) and (37m), 218.0114 (4g) and
58	58	(4m), 218.0114 (17) (b), 218.0114 (21g) (b) 3., 218.0114 (25), 218.0161 (2), 218.02
59	59	(1) (e) and (f), 218.02 (2) (a) 2. c., 218.02 (2) (d), (e) and (f), 218.02 (6) (a) 5., 218.02
60	60	(9) (d), 218.04 (1) (b) 2. and 3., 218.04 (1) (em) and (h), 218.04 (3) (a) 1g., 1m. and
61	61	1r., 218.04 (3) (a) 2. c., 218.04 (4) (ap) and (c), 218.04 (5) (a) 6., 218.04 (9), 218.04
62	62	(13) (b), 218.05 (1) (e) and (f), 218.05 (3) (am) 2. c., 218.05 (3) (d), (e) and (f),
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87	87	25 - 3 -2023 - 2024 Legislature
88	88	LRB-5025/1
89	89	ARG:wlj
90	90	SENATE BILL 668
91	91	218.05 (12) (a) 4., 218.05 (12) (f), 224.35 (1g), 224.35 (1m) (bm), 224.35 (1r), (6),
92	92	(7) and (8), 224.72 (2) (c) 2. c. and 224.725 (2) (b) 1. c. of the statutes; relating
93	93	to: the licensing and regulation by the Department of Financial Institutions of
94	94	consumer lenders, payday lenders, money transmitters, sales finance
95	95	companies, collection agencies, mortgage bankers and mortgage brokers,
96	96	adjustment service companies, community currency exchanges, and insurance
97	97	premium finance companies; the Nationwide Multistate Licensing System and
98	98	Registry; modifying and repealing rules promulgated by the Department of
99	99	Financial Institutions; and granting rule-making authority.
100	100	Analysis by the Legislative Reference Bureau
101	101	This bill makes changes related to the Department of Financial Institutions'
102	102	regulation of collection agencies, consumer lenders, and sellers of checks and
103	103	standardizes certain DFI administrative procedures related to these and other
104	104	licensed financial services providers.
105	105	Nationwide Multistate Licensing System and Registry
106	106	The bill authorizes DFI to utilize the Nationwide Multistate Licensing System
107	107	and Registry to administer its licensing functions, and standardizes certain
108	108	administrative procedures, with respect to the following: consumer lenders; payday
109	109	lenders; collection agencies; sales finance companies; money transmitters (currently
110	110	known as sellers of checks); mortgage bankers and mortgage brokers; adjustment
111	111	service companies; community currency exchanges; and insurance premium finance
112	112	companies (collectively, licensed financial services providers). The NMLSR is a
113	113	multistate system developed and operated for the licensing and registration of
114	114	persons in financial services industries.
115	115	Under current law, DFI participates in the NMLSR (formerly known as the
116	116	Nationwide Mortgage Licensing System and Registry) only with respect to the
117	117	licensing of mortgage loan originators and certain other functions related to
118	118	mortgage loan originators, mortgage bankers, and mortgage brokers. Current law
119	119	allows DFI to establish relationships or contracts with the NMLSR or other entities
120	120	designated by the NMLSR to collect and maintain records and process transaction
121	121	or other fees related to mortgage loan originators, mortgage bankers, and mortgage
122	122	brokers. With respect to licensing mortgage loan originators, DFI may require that
123	123	an applicant submit any form, fee, or other information directly to the NMLSR and
124	124	may authorize the NMLSR to perform functions related to the licensing of mortgage
125	125	loan originators. DFI may also provide to the NMLSR information relating to
126	126	mortgage loan originator licensing or responsibilities. DFI may also rely on the
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135	135	9 - 4 -2023 - 2024 Legislature LRB-5025/1
136	136	ARG:wlj
137	137	SENATE BILL 668
138	138	NMLSR to establish application or reporting deadlines for mortgage loan originators
139	139	and other requirements related to mortgage loan originators. DFI may also use the
140	140	NMLSR as an agent for requesting and distributing information, including to other
141	141	governmental agencies. In general, information that is confidential or privileged
142	142	when it is provided to the NMLSR remains confidential or privileged.
143	143	The bill expands DFI's participation in the NMLSR and requires DFI to utilize
144	144	the NMLSR with respect to the licensing and regulation of licensed financial services
145	145	providers, including requiring applicants and licensees to provide information
146	146	directly to the NMLSR and to comply with application and reporting deadlines
147	147	established by the NMLSR. These applicants and licensees must register with, and
148	148	maintain a unique identifier issued by, the NMLSR. The bill provides DFI with
149	149	authority relating to the NMLSR that is additional to the NMLSR authority
150	150	described above. DFI may require an applicant or licensee to submit identity
151	151	information, a credit report, an investigative background report, fingerprints for
152	152	identity verification or a criminal history check, or other personal or professional
153	153	history information. DFI may report to the NMLSR enforcement actions against or
154	154	violations by licensed financial services providers, which generally must be kept
155	155	confidential.
156	156	The bill standardizes the license renewal process and renewal period for
157	157	licensed financial services providers and specifies that the renewal application and
158	158	related materials or information must be submitted through the NMLSR or as
159	159	directed by DFI. The bill specifies reasons for which DFI may deny renewal of a
160	160	license and allows an expired license to be reinstated within two months after the
161	161	license expires.
162	162	The bill requires licensed financial services providers to keep current and
163	163	accurate all material information on file with DFI and the NMLSR. If the
164	164	information changes in any material respect, the licensed financial services provider
165	165	must notify DFI and the NMLSR of the change within 10 days after the change. The
166	166	bill also requires most licensed financial services providers to submit annual reports
167	167	and financial statements through the NMLSR or as directed by DFI.
168	168	Collection agencies
169	169	The bill makes various changes relating to DFI's licensing and regulation of
170	170	collection agencies and their employees.
171	171	Under current law, a person may not operate as a collection agency unless the
172	172	person is licensed as a collection agency by DFI. A “collection agency" is defined as
173	173	a person engaging in the business of collecting or receiving for payment for others
174	174	of any account, bill, or other indebtedness, but the definition also contains specific
175	175	exceptions, including those for attorneys, banks, express companies, health care
176	176	billing companies, insurers, and real estate brokers and salespersons. A collection
177	177	agency is subject to regulation by DFI and to certain laws regulating its operations.
178	178	Also under current law, a “collector" or “solicitor" is defined as a person
179	179	employed by a collection agency to collect or receive payment, or to solicit the
180	180	receiving or collecting of payment, for others of any account, bill, or other
181	181	indebtedness outside of the collection agency office or the person's home. A collector
182	182	or solicitor must hold a separate license as a collector or solicitor, which must state - 5 -2023 - 2024 Legislature
183	183	LRB-5025/1
184	184	ARG:wlj
185	185	SENATE BILL 668
186	186	the name of the collector's or solicitor's employer. The collector or solicitor must carry
187	187	this license as a means of identification whenever the collector or solicitor is engaged
188	188	in business.
189	189	The bill makes numerous statutory changes related to the licensing and
190	190	regulation of collection agencies and their employees, including the following:
191	191	1. The bill eliminates the requirement that a collector or solicitor hold a license
192	192	separate from the license of the collection agency that employs the collector or
193	193	solicitor. The bill also changes the definition of collector or solicitor to any person
194	194	who, on behalf of a licensed collection agency, does any of the following: 1) collects,
195	195	or attempts to collect, for others any account, bill, or other indebtedness; 2) receives
196	196	payment for others of any account, bill, or other indebtedness; or 3) solicits any
197	197	account, bill, or other indebtedness for collection by the collection agency. In
198	198	addition, the bill specifies that a collection agency is responsible for, and must
199	199	supervise the acts of, its collectors and solicitors and any other person who acts on
200	200	its behalf.
201	201	2. The bill changes the definition of a collection agency by adding exceptions
202	202	for mortgage bankers licensed by DFI and credit unions and by deleting the
203	203	exception for express companies. Accordingly, under the bill, licensed mortgage
204	204	bankers and credit unions are not regulated as collection agencies.
205	205	3. The bill specifies that a separate collection agency license is required for each
206	206	place of business maintained by the collection agency from which the collection
207	207	agency or its collectors or solicitors engage in the business of collecting or receiving
208	208	payments for others of any account, bill, or other indebtedness of a person located in
209	209	this state. The bill also specifies that, if an employee of a licensed collection agency
210	210	works from the employee's residence, a collection agency license is not required for
211	211	the employee's residence, but the employee's resident address may not be presented
212	212	to the public as a location or office of the collection agency and collection agency
213	213	records may not be maintained at the employee's residence.
214	214	4. As described above, the bill requires DFI to use the NMLSR in the licensing
215	215	and regulation of collection agencies. The bill also modifies license renewal and
216	216	reporting procedures for collection agencies to conform to the standardized
217	217	procedures applicable to all licensed financial services providers that use the
218	218	NMLSR. This change includes changing the collection agency licensing year to a
219	219	calendar year.
220	220	5. The bill specifies that the annual license fee applies for each place of business
221	221	that is required to be separately licensed. The bill also specifies that if an applicant
222	222	for an initial collection agency license fails to complete the application within 60 days
223	223	after DFI provides written notice that it is incomplete, the application is considered
224	224	abandoned, although the applicant may submit a new application.
225	225	6. The bill expands the reasons that DFI may suspend or revoke a collection
226	226	agency license to include the following: the collection agency has violated DFI's rules
227	227	related to collection agencies; and the collection agency has made a material
228	228	misstatement, or knowingly omitted a material fact, in an application for a license
229	229	or in information furnished to DFI or the NMLSR. - 6 -2023 - 2024 Legislature LRB-5025/1
230	230	ARG:wlj
231	231	SENATE BILL 668
232	232	7. The bill specifies that a collection agency must deposit and maintain in its
233	233	trust account money due to a claimant or forwarder within 48 hours after collection,
234	234	while current law requires the money to be deposited promptly.
235	235	8. The bill specifies that a collection agency may forward printed collection
236	236	notices to a debtor that are unsigned.
237	237	9. The bill creates statutory provisions relating to collectors or solicitors that
238	238	are similar to provisions that currently appear in DFI's rules. A collector or solicitor
239	239	may use an alias in oral or written communications with a debtor, but the alias must
240	240	include a first and last name and the collector or solicitor may not have more than
241	241	one alias. A collector or solicitor may only change an alias for good cause and if DFI
242	242	is first notified of the change.
243	243	10. The bill modifies current law provisions relating to a collection agency's
244	244	change of business location. The bill requires a collection agency to give written
245	245	notice to DFI at least 30 days prior to changing its business location, but deletes the
246	246	requirement that the collection agency obtain approval from DFI.
247	247	11. The bill gives DFI discretion to determine whether to report to the district
248	248	attorney for prosecution violations of law relating to a collection agency.
249	249	The bill also modifies and repeals various DFI rules related to collection
250	250	agencies, including the following:
251	251	1. The bill prohibits, with an exception, a licensed collection agency from
252	252	contracting for or assessing a fee, commission, or other charge to a creditor for
253	253	returning any account to the creditor that is not in the actual process of collection.
254	254	2. The bill requires a licensed collection agency's trust checking account to be
255	255	identified as a “trust account.” For the purpose of determining that funds are
256	256	maintained in a trust account sufficient to pay creditors or forwarders, amounts
257	257	collected by a third party, but not yet deposited into the trust account, are not
258	258	considered trust funds. Third-party payment processors may not be given authority
259	259	to withdraw funds from a collection agency's trust account.
260	260	3. The bill requires a licensed collection agency, in the records that it must keep
261	261	at its office, to maintain a list of all collectors and solicitors employed by the collection
262	262	agency that includes specified information about each collector or solicitor.
263	263	4. The bill includes the following requirements related to a licensed collection
264	264	agency's use of a trade name (commonly referred to as a “doing business as” or “d/b/a”
265	265	designation): 1) a licensed collection agency may not conduct business under a name
266	266	other than a name listed on its license; 2) before using a trade name, the collection
267	267	agency must obtain approval of the use of the trade name from DFI; and 3) the trade
268	268	name may not include a corporate identifier.
269	269	5. The bill specifies that, in attempting to collect an alleged account, bill, or
270	270	other indebtedness, a licensed collection agency may not violate any federal or state
271	271	statute, rule, or regulation that relates to practice as a collection agency.
272	272	6. The bill defines “terminated,” for purposes related to the termination of a
273	273	collection agency license, to include a license that is surrendered, revoked, or
274	274	expired. - 7 -2023 - 2024 Legislature
275	275	LRB-5025/1
276	276	ARG:wlj
277	277	SENATE BILL 668
278	278	7. The bill specifies that a collection agency must enter into a written
279	279	agreement with the creditor not only before accepting accounts for collection from the
280	280	creditor but also before earning or collecting a fee or commission.
281	281	8. The bill includes restrictions on the ability of a collection agency and its client
282	282	to modify the meaning of the defined term “actual process of collection” for purposes
283	283	of a collection agency's duty upon receiving a written request from a creditor or
284	284	forwarder for the return of an account not in the actual process of collection.
285	285	9. The bill changes the date by which a licensed collection agency must provide
286	286	a remittance statement and remit money due to creditors or forwarders, establishing
287	287	the deadline as the last day of the month following the close of the month during
288	288	which the collection was effected instead of 30 days from the close of the month
289	289	during which the collection was effected.
290	290	10. The bill repeals a rule relating to the use of an alias by a collector or solicitor,
291	291	but incorporates similar provisions into the statutes.
292	292	11. The bill makes other changes to DFI's rules to retain consistency with the
293	293	statutory changes in the bill.
294	294	Licensed lenders
295	295	The bill makes various changes relating to DFI's licensing and regulation of
296	296	certain consumer lenders.
297	297	Under current law, a lender other than a bank, savings bank, savings and loan
298	298	association, credit union, or any of its affiliates (financial institution) generally must
299	299	obtain a license from DFI to assess a finance charge for a consumer loan that is
300	300	greater than 18 percent per year. This type of lender is generally referred to as a
301	301	“licensed lender." A “consumer loan” is not defined in provisions governing licensed
302	302	lenders, but the Wisconsin Consumer Act (WCA) defines a consumer loan as a loan
303	303	made to an individual for personal, family, or household purposes that is payable in
304	304	installments or for which a finance charge may be imposed and includes most
305	305	transactions under an open-end credit plan such as most credit card debt.
306	306	The bill makes numerous changes related to the licensing and regulation of
307	307	licensed lenders, including the following:
308	308	1. The bill creates a definition of consumer loan for purposes of licensed lenders
309	309	that is similar to the WCA definition of consumer loan.
310	310	2. The bill specifies that provisions governing licensed lenders apply to any
311	311	person who takes an assignment for sale, in whole or in part, of a consumer loan with
312	312	a finance charge in excess of 18 percent per year, without regard to whether the loan
313	313	was originally made by a financial institution. The bill also specifies that provisions
314	314	governing licensed lenders do not apply to collection agencies, payment processors,
315	315	and certain persons involved in investment or financing transactions.
316	316	3. The bill specifies that the following activities are doing business that require
317	317	a person to be licensed as a licensed lender: a) making a consumer loan that has a
318	318	finance charge in excess of 18 percent per year; b) taking an assignment of a
319	319	consumer loan in which a customer is assessed a finance charge in excess of 18
320	320	percent per year; or c) directly collecting payments from or enforcing rights against
321	321	a customer relating to a consumer loan in which a customer is assessed a finance
322	322	charge in excess of 18 percent per year. - 8 -2023 - 2024 Legislature LRB-5025/1
323	323	ARG:wlj
324	324	SENATE BILL 668
325	325	4. The bill specifies that a licensed lender may contract with a person that is
326	326	not a licensed lender to service a consumer loan on behalf of the licensed lender, but
327	327	the licensed lender generally is responsible for violations of law committed by the
328	328	contracted party with respect to the servicing of the consumer loan. “Service” is
329	329	defined to include collecting or receiving payments of principal, interest, and other
330	330	amounts on consumer loans and undertaking other tasks related to the
331	331	administration of consumer loans under the direction and control of the licensed
332	332	lender.
333	333	5. As described above, the bill requires DFI to use the NMLSR in the licensing
334	334	and regulation of licensed lenders. The bill also modifies license renewal and
335	335	reporting procedures for licensed lenders to conform to the standardized procedures
336	336	applicable to all licensed financial services providers that use the NMLSR.
337	337	6. The bill provides as an additional basis for DFI to suspend or revoke a license
338	338	that the licensed lender has made a material misstatement, or knowingly omitted
339	339	a material fact, in an application for a license or in information furnished to DFI or
340	340	the NMLSR.
341	341	7. The bill eliminates provisions related to consumer loan interest rates that
342	342	apply to certain loans entered into before specified dates, the latest being August 1,
343	343	1987.
344	344	8. The bill removes a provision of current law that, subject to exceptions, all
345	345	loans must be consummated at the licensed location, but does not change the
346	346	requirement that a licensed lender operate only from its licensed location.
347	347	9. The bill requires a licensed lender to keep its loan records separate and
348	348	distinct from the records of any other business of the licensed lender. The bill also
349	349	requires a licensed lender, upon DFI's request, to promptly deliver books and records
350	350	located outside Wisconsin to a location within Wisconsin specified by DFI.
351	351	Sellers of checks and money transmitters
352	352	The bill repeals provisions of current law governing the licensing and
353	353	regulation of sellers of checks, which are persons engaged in the business of selling
354	354	and issuing checks, transmitting money, or receiving money for transmission. The
355	355	bill replaces these provisions with provisions governing the licensing and regulation
356	356	of money transmitters, titled the Model Money Transmission Modernization Law.
357	357	The bill generally requires that a person be licensed by DFI in order to engage
358	358	in the business of money transmission or advertise, solicit, or hold itself out as
359	359	providing money transmission (money transmitter). However, certain persons and
360	360	transactions are exempt from this license requirement, including federally insured
361	361	financial institutions, government agencies, registered securities broker-dealers,
362	362	agents of a payee that collect and process payments on behalf of the payee if certain
363	363	conditions are satisfied, electronic funds transfers of governmental benefits by
364	364	government contractors, employees and authorized delegates of licensed money
365	365	transmitters if certain conditions are satisfied, and any other person exempted by
366	366	DFI, as long as the exempt person does not engage in money transmission outside
367	367	the scope of the exemption. “Money transmission” means 1) selling or issuing
368	368	payment instruments to a person located in this state; 2) selling or issuing stored
369	369	value to a person located in this state; or 3) receiving money for transmission from - 9 -2023 - 2024 Legislature
370	370	LRB-5025/1
371	371	ARG:wlj
372	372	SENATE BILL 668
373	373	a person located in this state. “Money transmission” includes payroll processing
374	374	services. A “payment instrument” is, with specified exceptions such as stored value,
375	375	a written or electronic check, money order, traveler's check, or other written or
376	376	electronic instrument for the transmission or payment of money or monetary value,
377	377	whether or not negotiable. “Stored value” means monetary value representing a
378	378	claim against the issuer that is evidenced by an electronic or digital record and is
379	379	intended and accepted for use as a means of redemption for money or monetary value
380	380	or payment for goods or services.
381	381	Under the bill, an application for a money transmitter license must be made to
382	382	DFI through the NMLSR. The application must include specified information and
383	383	be accompanied by an application fee. DFI must promptly notify an applicant when
384	384	its application is complete and must then investigate the applicant's financial
385	385	condition and responsibility, financial and business experience, character, and
386	386	general fitness. DFI must issue a money transmitter license to the applicant, valid
387	387	for a calendar year, if the applicant satisfies certain requirements, including
388	388	requirements related to the applicant's financial security and that the applicant's
389	389	financial condition and responsibility, financial and business experience,
390	390	competence, character, and general fitness, and the competence, experience,
391	391	character, and general fitness of persons in control of the applicant, indicate that it
392	392	is in the interest of the public to permit the applicant to engage in money
393	393	transmission. DFI must approve or deny an application within 120 days after the
394	394	date the application is complete, unless DFI for good cause extends the review period.
395	395	DFI may deny a license application for the same reasons it may suspend a license
396	396	(discussed below). If DFI denies an application, DFI must provide specific reasons
397	397	for the denial in a written notice. An issued license may be renewed annually, upon
398	398	payment of the applicable renewal fee, in accordance with the standardized renewal
399	399	procedures under the bill for all licensed financial services providers.
400	400	The bill allows DFI, after complaint, notice, and hearing, to suspend, revoke,
401	401	or refuse renewal of a license for specified reasons, including that the licensee no
402	402	longer meets a requirement for initial granting of the license; the licensee made a
403	403	material misstatement, or knowingly omitted a material fact, in the application for
404	404	the license or in information furnished to DFI or the NMLSR; the licensee has
405	405	engaged in unsafe or unsound practices in connection with, or fraudulent or
406	406	deceptive conduct or gross negligence relating to, the business of money
407	407	transmission; or the licensee has violated a law or DFI order applicable to money
408	408	transmission.
409	409	Under the bill, a person or group seeking to acquire control of a licensed money
410	410	transmitter must apply to DFI, in cooperation with the licensed money transmitter,
411	411	and obtain DFI's written approval before acquiring control. “Control” means, among
412	412	other powers, the power to vote at least 25 percent of the outstanding shares of the
413	413	licensed money transmitter, to elect a majority of its officers, or to exercise controlling
414	414	influence over its management or policies. The process and criteria for DFI's
415	415	approval to acquire control of a licensed money transmitter are mostly similar to that
416	416	for issuance of a money transmitter license. The bill specifies various circumstances
417	417	under which DFI's approval is not required, although notice may be required to DFI - 10 -2023 - 2024 Legislature LRB-5025/1
418	418	ARG:wlj
419	419	SENATE BILL 668
420	420	after the acquisition of control. A licensed money transmitter, upon adding or
421	421	replacing a key individual, must also provide notice of the change to DFI along with
422	422	certain information. A “key individual” is an individual ultimately responsible for
423	423	establishing or directing policies and procedures of the licensed money transmitter,
424	424	such as an officer. DFI may issue a notice of disapproval of a key individual if DFI
425	425	finds that the competence, experience, character, or integrity of the individual
426	426	indicates that it is not in the interest of the public or the customers of the licensed
427	427	money transmitter to permit the individual to be a key individual of the licensed
428	428	money transmitter.
429	429	The bill allows a licensed money transmitter to conduct business through an
430	430	authorized delegate. An “authorized delegate” is defined as a person designated by
431	431	a licensed money transmitter to engage in money transmission on behalf of the
432	432	licensed money transmitter. An authorized delegate of a licensed money transmitter
433	433	is not required to hold a money transmitter license if the delegate acts within the
434	434	scope of authority conferred by a written contract with the licensed money
435	435	transmitter. Before a licensed money transmitter may conduct business through an
436	436	authorized delegate or allow a person to act as an authorized delegate, the licensed
437	437	money transmitter must 1) adopt written policies and procedures reasonably
438	438	designed to ensure that its authorized delegate complies with applicable state and
439	439	federal law; 2) conduct a reasonable risk-based background investigation sufficient
440	440	for the licensed money transmitter to determine whether the authorized delegate
441	441	will likely comply with applicable state and federal law; and 3) enter into a written
442	442	agreement with the authorized delegate containing specified terms, including
443	443	appointing the authorized delegate with the authority to conduct money
444	444	transmission on behalf of the licensed money transmitter; requiring the authorized
445	445	delegate to fully comply with applicable law pertaining to money transmission; and
446	446	establishing certain requirements pertaining to the relationship between the
447	447	licensed money transmitter and the authorized delegate and the duties of the
448	448	authorized delegate. An application for a money transmitter license must include
449	449	a list of the applicant's proposed authorized delegates and a sample contract for these
450	450	authorized delegates. An authorized delegate of a licensed money transmitter holds
451	451	in trust for the benefit of the licensed money transmitter all money net of fees
452	452	received from money transmission. An authorized delegate may not use a
453	453	subdelegate to conduct money transmission on behalf of a licensed money
454	454	transmitter. DFI may suspend or revoke the designation of an authorized delegate
455	455	under specified circumstances.
456	456	The bill imposes various other requirements on licensed money transmitters,
457	457	including requiring a licensed money transmitter to 1) forward all money received
458	458	for transmission in accordance with the terms of the agreement between the licensed
459	459	money transmitter and the sender, subject to limited exceptions; 2) refund to the
460	460	sender any money received for transmission within 10 days of receipt of the sender's
461	461	written request for a refund unless the money was forwarded within 10 days of the
462	462	date on which the money was received for transmission or unless various other
463	463	circumstances apply; 3) provide the sender a receipt, for money received for
464	464	transmission, containing specified information, subject to certain exceptions; 4) - 11 -2023 - 2024 Legislature
465	465	LRB-5025/1
466	466	ARG:wlj
467	467	SENATE BILL 668
468	468	submit a quarterly report of condition; 5) submit annually audited financial
469	469	information that contains specified information and meet certain standards; 6)
470	470	submit a quarterly report of authorized delegates; 7) report certain events to DFI,
471	471	including the filing of a bankruptcy petition, a proceeding to suspend or revoke its
472	472	license in another state, or that the licensed money transmitter, a key individual, or
473	473	an authorized delegate has been charged with or convicted of a felony; 8) maintain
474	474	specified records for at least three years and make these records available to DFI
475	475	upon written request; 9) maintain a tangible net worth of more than $100,000 or an
476	476	amount determined by formula, whichever is greater, although DFI may exempt a
477	477	licensed money transmitter from this requirement; 10) maintain a surety bond or
478	478	other form of security acceptable to DFI in a minimum amount of $100,000 or an
479	479	amount determined by formula, whichever is greater; and 11) maintain a certain
480	480	minimum value of permissible investments, specified by investment category, which,
481	481	if certain events occur such as the filing of a petition for bankruptcy, are held in trust
482	482	for the benefit of those whose money is outstanding.
483	483	The bill provides DFI with various powers relating to the regulation of money
484	484	transmitters, including investigatory and enforcement powers. Among these
485	485	powers, DFI may investigate the business of a licensed money transmitter and
486	486	examine its books, accounts, or records and those of its authorized delegates, and the
487	487	cost of the examination must be paid by the licensed money transmitter. DFI may
488	488	issue subpoenas and take testimony. DFI may also accept an audit report made by
489	489	a third-party for a licensed money transmitter and incorporate the audit report in
490	490	any report of examination or investigation. DFI may also take possession of an
491	491	insolvent licensed money transmitter under specified circumstances.
492	492	Payday lenders
493	493	The bill makes changes relating to DFI's licensing and regulation of payday
494	494	lenders. As described above, the bill requires DFI to use the NMLSR in the licensing
495	495	and regulation of payday lenders. The bill also modifies license renewal and
496	496	reporting procedures for payday lenders to conform to the standardized procedures
497	497	applicable to all licensed financial services providers that use the NMLSR. The bill
498	498	also modifies as a basis for DFI to suspend or revoke a license, in addition to a
499	499	material misstatement, that the payday lender knowingly omitted a material fact in
500	500	an application or information furnished to DFI or the NMLSR.
501	501	Sales finance companies
502	502	The bill makes changes relating to DFI's licensing and regulation of sales
503	503	finance companies, which are companies that acquire motor vehicle installment
504	504	sales contracts or consumer leases originated by a motor vehicle dealer. As described
505	505	above, the bill requires DFI to use the NMLSR in the licensing and regulation of sales
506	506	finance companies. The bill also modifies license renewal procedures and creates
507	507	reporting procedures for sales finance companies to conform to the standardized
508	508	procedures applicable to all licensed financial services providers that use the
509	509	NMLSR. The bill modifies as a basis for DFI to suspend or revoke a license, in
510	510	addition to a material misstatement, that the sales finance company knowingly
511	511	omitted a material fact in an application or information furnished to DFI or the - 12 -2023 - 2024 Legislature LRB-5025/1
512	512	ARG:wlj
513	513	SENATE BILL 668
514	514	NMLSR. The bill requires a sales finance company to give DFI notice within 10 days
515	515	of a change of location.
516	516	Adjustment service companies
517	517	The bill makes changes relating to DFI's licensing and regulation of adjustment
518	518	service companies, which are companies that, for a fee, assist debtors in prorating
519	519	the income of the debtor to the debtor's creditors or assume the debtor's obligations
520	520	by purchasing the accounts of the debtor. As described above, the bill requires DFI
521	521	to use the NMLSR in the licensing and regulation of adjustment service companies.
522	522	The bill also modifies license renewal and reporting procedures for adjustment
523	523	service companies to conform to the standardized procedures applicable to all
524	524	licensed financial services providers that use the NMLSR. The bill provides as an
525	525	additional basis for DFI to revoke a license that the adjustment service company has
526	526	made a material misstatement, or knowingly omitted a material fact, in an
527	527	application for a license or in information furnished to DFI or the NMLSR.
528	528	Community currency exchanges
529	529	The bill makes changes relating to DFI's licensing and regulation of community
530	530	currency exchanges, also called check cashers, which cash checks for individuals for
531	531	a fee. As described above, the bill requires DFI to use the NMLSR in the licensing
532	532	and regulation of community currency exchanges. The bill also modifies license
533	533	renewal and reporting procedures for community currency exchanges to conform to
534	534	the standardized procedures applicable to all licensed financial services providers
535	535	that use the NMLSR. The bill provides as an additional basis for DFI to revoke a
536	536	license that the community currency exchange has made a material misstatement,
537	537	or knowingly omitted a material fact, in an application for a license or in information
538	538	furnished to DFI or the NMLSR. The bill eliminates a requirement that a community
539	539	currency exchange's license be conspicuously posted at its place of business.
540	540	Insurance premium finance companies
541	541	The bill makes changes relating to DFI's licensing and regulation of insurance
542	542	premium finance companies, which are companies that loan money to an insured to
543	543	finance the payment of insurance premiums. As described above, the bill requires
544	544	DFI to use the NMLSR in the licensing and regulation of insurance premium finance
545	545	companies. The bill also modifies license renewal procedures and creates reporting
546	546	procedures for insurance premium finance companies to conform to the standardized
547	547	procedures applicable to all licensed financial services providers that use the
548	548	NMLSR. The bill also provides as an additional basis for DFI to suspend or revoke
549	549	a license that the insurance premium finance company has made a material
550	550	misstatement, or knowingly omitted a material fact, in an application for a license
551	551	or in information furnished to DFI or the NMLSR. - 13 -2023 - 2024 Legislature
552	552	LRB-5025/1
553	553	ARG:wlj
554	554	SENATE BILL 668
555	555	For further information see the state fiscal estimate, which will be printed as
556	556	an appendix to this bill.
557	557	The people of the state of Wisconsin, represented in senate and assembly, do
558	558	enact as follows:
559	559	SECTION 1. 49.857 (1) (d) 12. of the statutes is amended to read:
560	560	49.857 (1) (d) 12. A license or certificate of registration issued under ss. 138.09,
561	561	138.12, 138.14, 217.06 217.05, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72,
562	562	224.725, 224.93 or subch. IV of ch. 551.
563	563	SECTION 2. 73.0301 (1) (d) 6. of the statutes is amended to read:
564	564	73.0301 (1) (d) 6. A license or certificate of registration issued by the
565	565	department of financial institutions, or a division of it, under ss. 138.09, 138.12,
566	566	138.14, 202.12 to 202.14, 202.22, 217.06 217.05, 218.0101 to 218.0163, 218.02,
567	567	218.04, 218.05, 224.72, 224.725, 224.93 or under subch. IV of ch. 551.
568	568	SECTION 3. 100.315 (1) of the statutes is amended to read:
569	569	100.315 (1) In this section, “check" has the meaning given in s. 217.02 (2) means
570	570	any check, draft, money order, traveler's check, personal money order, or other
571	571	instrument for the transmission or payment of money.
572	572	SECTION 4. 108.227 (1) (e) 6. of the statutes is amended to read:
573	573	108.227 (1) (e) 6. A license or certificate of registration issued by the
574	574	department of financial institutions, or a division of it, under ss. 138.09, 138.12,
575	575	138.14, 202.12 to 202.14, 202.22, 217.06 217.05, 218.0101 to 218.0163, 218.02,
576	576	218.04, 218.05, 224.72, 224.725, 224.93 or under subch. IV of ch. 551.
577	577	SECTION 5. 138.09 (1a) of the statutes is renumbered 138.09 (1c) (a).
578	578	SECTION 6. 138.09 (1c) (a) 3., 4., 5. and 6. of the statutes are created to read:
579	579	1
580	580	2
581	581	3
582	582	4
583	583	5
584	584	6
585	585	7
586	586	8
587	587	9
588	588	10
589	589	11
590	590	12
591	591	13
592	592	14
593	593	15
594	594	16
595	595	17
596	596	18
597	597	19
598	598	20 - 14 -2023 - 2024 Legislature LRB-5025/1
599	599	ARG:wlj
600	600	SECTION 6 SENATE BILL 668
601	601	138.09 (1c) (a) 3. An individual or entity who, in connection with a
602	602	securitization, private placement, collateral financing, or other type of investment
603	603	or financing transaction, lends against or purchases consumer loans or any portion
604	604	of the outstanding balances of consumer loans, if the following apply:
605	605	a. The consumer loans are serviced by a licensee under this section, either
606	606	directly or through a contracted party.
607	607	b. The books and records for the consumer loans are maintained by a licensee
608	608	under this section.
609	609	4. Special purpose vehicles.
610	610	5. Collection agencies licensed under s. 218.04.
611	611	6. Payment processors.
612	612	SECTION 7. 138.09 (1c) (b) of the statutes is created to read:
613	613	138.09 (1c) (b) This section applies to any person who takes an assignment for
614	614	sale, in whole or in part, of a consumer loan with a finance charge in excess of 18
615	615	percent per year, without regard to whether the loan was originally made by an
616	616	entity listed under par. (a) 1.
617	617	SECTION 8. 138.09 (1d) of the statutes is renumbered 138.09 (1g) (intro.) and
618	618	amended to read:
619	619	138.09 (1g) (intro.) In this section, “division":
620	620	(c) “Division” means the division of banking.
621	621	SECTION 9. 138.09 (1g) (a), (b), (d), (e), (f), (g), (h) and (i) of the statutes are
622	622	created to read:
623	623	138.09 (1g) (a) “Business” includes any of the following activities:
624	624	1
625	625	2
626	626	3
627	627	4
628	628	5
629	629	6
630	630	7
631	631	8
632	632	9
633	633	10
634	634	11
635	635	12
636	636	13
637	637	14
638	638	15
639	639	16
640	640	17
641	641	18
642	642	19
643	643	20
644	644	21
645	645	22
646	646	23 - 15 -2023 - 2024 Legislature
647	647	LRB-5025/1
648	648	ARG:wlj
649	649	SECTION 9
650	650	SENATE BILL 668
651	651	1. To make a consumer loan that has a finance charge in excess of 18 percent
652	652	per year. A person makes a consumer loan within the meaning of this section if the
653	653	person is named as the lender in the consumer loan agreement.
654	654	2. To take an assignment, in whole or in part, of a consumer loan in which a
655	655	customer is being assessed a finance charge in excess of 18 percent per year.
656	656	3. Except as provided in sub. (3) (cm), to directly collect payments from, or
657	657	enforce rights against, a customer relating to a consumer loan in which a customer
658	658	is being assessed a finance charge in excess of 18 percent per year.
659	659	(b) “Consumer loan” means a loan made by any person to a customer that is
660	660	payable in installments or for which a finance charge is or may be imposed, and
661	661	includes transactions pursuant to an open-end credit plan, as defined in s. 421.301
662	662	(27), other than a seller credit card, as defined in s. 421.301 (41).
663	663	(d) “Licensee," except in sub. (3) (e) 1. g., means a person licensed under this
664	664	section.
665	665	(e) “Nationwide multistate licensing system and registry” has the meaning
666	666	given in s. 224.35 (1g) (b).
667	667	(f) “Payment processor” means a person who facilitates the purchase of, or
668	668	payment of a bill for, a good or service through a clearance and settlement system by
669	669	agreement with the licensee. Payment processor does not include a collection agency,
670	670	as defined in s. 218.04 (1) (a), a debt collector, as defined in s. 427.103 (3), or any
671	671	person who directly performs any of the activities set forth in par. (a).
672	672	(g) Except in sub. (9) (a), “service” or “servicing” means collecting or receiving
673	673	payments of principal, interest, and other amounts on consumer loans and
674	674	undertaking other tasks related to the administration of consumer loans, including
675	675	1
676	676	2
677	677	3
678	678	4
679	679	5
680	680	6
681	681	7
682	682	8
683	683	9
684	684	10
685	685	11
686	686	12
687	687	13
688	688	14
689	689	15
690	690	16
691	691	17
692	692	18
693	693	19
694	694	20
695	695	21
696	696	22
697	697	23
698	698	24 - 16 -2023 - 2024 Legislature LRB-5025/1
699	699	ARG:wlj
700	700	SECTION 9 SENATE BILL 668
701	701	negotiating a modification or extension of consumer loans, under the direction and
702	702	control of the licensee.
703	703	(h) “Special purpose vehicle” means an entity that, in connection with a
704	704	securitization, private placement, collateral financing, or other type of investment
705	705	or financing transaction, is administered by a duly chartered financial institution
706	706	under a management agreement for the purpose of purchasing, making loans
707	707	against, or pooling receivables, general intangibles, and other financial assets,
708	708	including consumer loans or the outstanding balances of consumer loans.
709	709	(i) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).
710	710	SECTION 10. 138.09 (1m) (a) of the statutes is renumbered 138.09 (1m) (a) 1.
711	711	and amended to read:
712	712	138.09 (1m) (a) 1. Before any person may do business under this section, charge
713	713	the interest authorized by sub. (7), or assess a finance charge on a consumer loan in
714	714	excess of 18 percent per year, that person shall first obtain a license from the division.
715	715	2. Applications for a license shall be in writing and upon forms provided for this
716	716	purpose made in the form and manner prescribed by the division.
717	717	3. An applicant at the time of making an application shall pay to the division
718	718	a nonrefundable $300 fee for investigating the application and a $500 annual license
719	719	fee for the period terminating on the last day of the current calendar year. If the cost
720	720	of the investigation exceeds $300, the applicant shall upon demand of the division
721	721	pay to the division the amount by which the cost of the investigation exceeds the
722	722	nonrefundable fee.
723	723	SECTION 11. 138.09 (1m) (b) 1. (intro.) of the statutes is amended to read:
724	724	138.09 (1m) (b) 1. (intro.) Except as provided in par. (c), an application under
725	725	par. (a) 2. for a license shall contain the following:
726	726	1
727	727	2
728	728	3
729	729	4
730	730	5
731	731	6
732	732	7
733	733	8
734	734	9
735	735	10
736	736	11
737	737	12
738	738	13
739	739	14
740	740	15
741	741	16
742	742	17
743	743	18
744	744	19
745	745	20
746	746	21
747	747	22
748	748	23
749	749	24
750	750	25 - 17 -2023 - 2024 Legislature
751	751	LRB-5025/1
752	752	ARG:wlj
753	753	SECTION 12
754	754	SENATE BILL 668
755	755	SECTION 12. 138.09 (1m) (b) 2. c. of the statutes is created to read:
756	756	138.09 (1m) (b) 2. c. The division may disclose information to the nationwide
757	757	multistate licensing system and registry as provided in s. 224.35.
758	758	SECTION 13. 138.09 (1m) (d) and (e) of the statutes are created to read:
759	759	138.09 (1m) (d) The division shall utilize the nationwide multistate licensing
760	760	system and registry, and the provisions of s. 224.35 shall apply, with respect to
761	761	applicants and licensees under this section.
762	762	(e) An applicant or licensee under this section shall register with, and maintain
763	763	a valid unique identifier issued by, the nationwide multistate licensing system and
764	764	registry.
765	765	SECTION 14. 138.09 (2) of the statutes is amended to read:
766	766	138.09 (2) The division may also require the applicant to file with the division,
767	767	and to maintain in force, a bond in which the applicant shall be the obligor, in a sum
768	768	not to exceed $5,000 with one or more corporate sureties licensed to do business in
769	769	Wisconsin, whose liability as such sureties shall not exceed the sum of $5,000 in the
770	770	aggregate, to be approved by the division and filed in a form and manner acceptable
771	771	to the division, and such bond shall run to the state of Wisconsin for the use of the
772	772	state and of any person or persons who may have a cause of action against the obligor
773	773	of the bond under the provisions of this section. Such bonds shall be conditioned that
774	774	the obligor will conform to and abide by each and every provision of this section, and
775	775	will pay to the state or to any person or persons any and all moneys that may become
776	776	due or owing to the state or to such person or persons from the obligor under and by
777	777	virtue of the provisions of this chapter.
778	778	SECTION 15. 138.09 (3) (b) of the statutes is repealed and recreated to read:
779	779	1
780	780	2
781	781	3
782	782	4
783	783	5
784	784	6
785	785	7
786	786	8
787	787	9
788	788	10
789	789	11
790	790	12
791	791	13
792	792	14
793	793	15
794	794	16
795	795	17
796	796	18
797	797	19
798	798	20
799	799	21
800	800	22
801	801	23
802	802	24 - 18 -2023 - 2024 Legislature LRB-5025/1
803	803	ARG:wlj
804	804	SECTION 15 SENATE BILL 668
805	805	138.09 (3) (b) A license may be renewed or reinstated as provided in s. 224.35
806	806	(7). A license that is not renewed or reinstated by the end of the reinstatement period
807	807	provided in s. 224.35 (7) shall be deemed to have expired on December 31 of the year
808	808	immediately preceding the reinstatement period, unless the initial license date is
809	809	between November 1 and December 31, in which instance the initial license term
810	810	shall run through December 31 of the following year.
811	811	SECTION 16. 138.09 (3) (c) of the statutes is amended to read:
812	812	138.09 (3) (c) Such A license shall not be assignable and shall permit operation
813	813	under it only at or from the location specified in the license at which location all loans
814	814	shall be consummated, but this provision shall not prevent the licensee from making
815	815	loans under this section which are not initiated or consummated by face to face
816	816	contact away from the licensed location if permitted by the division in writing or by
817	817	rule or at an auction sale conducted or clerked by a licensee.
818	818	SECTION 17. 138.09 (3) (cm) of the statutes is created to read:
819	819	138.09 (3) (cm) Notwithstanding par. (c), a licensee may contract with a person
820	820	that is not licensed under this section to service a consumer loan on behalf of the
821	821	licensee. The licensee is responsible for violations of this section committed by the
822	822	contracted party with respect to the servicing of that loan, except where the
823	823	contracted party holds a license issued by the division that would subject it to
824	824	regulatory discipline for violations of this section. The licensee's responsibility for
825	825	the contracted party, as set forth in this paragraph, does not create a private right
826	826	of action against the licensee.
827	827	SECTION 18. 138.09 (3) (d) of the statutes is amended to read:
828	828	138.09 (3) (d) A separate license shall be required for each place of business
829	829	maintained by the licensee. Whenever a licensee shall change the address of its place
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854	854	25 - 19 -2023 - 2024 Legislature
855	855	LRB-5025/1
856	856	ARG:wlj
857	857	SECTION 18
858	858	SENATE BILL 668
859	859	of business to another location within the same city, village or town the licensee shall
860	860	at once give written notice thereof to the division, which shall replace the original
861	861	license with an amended license showing the new address, provided the location
862	862	meets with the requirements of par. (e) or to the nationwide multistate licensing
863	863	system and registry, as directed by the division, in a form and manner acceptable to
864	864	the division. No change in the place of business of a licensee to a different city, village
865	865	or town shall be permitted under the same license.
866	866	SECTION 19. 138.09 (3) (e) 1. a. and f. of the statutes are amended to read:
867	867	138.09 (3) (e) 1. a. A business engaged in making loans for business or
868	868	agricultural purposes or exceeding $25,000 in principal amount, except that all such
869	869	loans having terms of 49 months or more are subject to sub. (7) (gm) 2. or 4.
870	870	f. A seller of checks money transmitter business under ch. 217.
871	871	SECTION 20. 138.09 (3) (e) 3. of the statutes is created to read:
872	872	138.09 (3) (e) 3. Any licensee operating under this section shall keep the records
873	873	affecting loans made pursuant to this section separate and distinct from the records
874	874	of any other business of the licensee.
875	875	SECTION 21. 138.09 (3) (f) of the statutes is amended to read:
876	876	138.09 (3) (f) Every Each licensee shall make an annual report to the division
877	877	for each calendar year on or before March 15 of the following year. The report shall
878	878	include business transacted by the licensee under the provisions of this section and
879	879	shall give all reasonable and relevant information that the division may require. The
880	880	reports shall be made in the form and manner prescribed by the division. Any
881	881	licensee operating under this section shall keep the records affecting loans made
882	882	pursuant to this section separate and distinct from the records of any other business
883	883	of the licensee and submit financial statements as provided in s. 224.35 (8).
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909	909	ARG:wlj
910	910	SECTION 22 SENATE BILL 668
911	911	SECTION 22. 138.09 (3) (g) of the statutes is created to read:
912	912	138.09 (3) (g) Each licensee shall keep current and accurate all material
913	913	information on file with the division and the nationwide multistate licensing system
914	914	and registry as provided in s. 224.35 (6).
915	915	SECTION 23. 138.09 (4) (a) 4. of the statutes is created to read:
916	916	138.09 (4) (a) 4. The licensee has made a material misstatement, or knowingly
917	917	omitted a material fact, in an application for a license or in information furnished to
918	918	the division or the nationwide multistate licensing system and registry.
919	919	SECTION 24. 138.09 (4) (e) of the statutes is created to read:
920	920	138.09 (4) (e) The division may report any enforcement action, any violation
921	921	of this section or of an administrative rule or order, or other relevant information to
922	922	the nationwide multistate licensing system and registry. Except as provided in s.
923	923	224.35 (4) (b) and (c), these reports to the nationwide multistate licensing system and
924	924	registry shall be confidential and are not subject to public copying or inspection
925	925	under s. 19.35 (1).
926	926	SECTION 25. 138.09 (6) of the statutes is amended to read:
927	927	138.09 (6) (a) Except as provided in par. (b), the The licensee shall keep such
928	928	books and records in the licensee's place of business at a licensed location, or
929	929	accessible from a licensed location, as in the opinion of the division will enable the
930	930	division to determine whether the provisions of this chapter are being observed.
931	931	Every such licensee shall preserve the records of final entry used in such business,
932	932	including cards used in the card system, if any, for a period of at least 2 years after
933	933	the making of any loan recorded therein.
934	934	(b) A licensee may keep the books and records specified in par. (a) at a single
935	935	location inside or outside of this state if the books and records are kept at a location
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960	960	25 - 21 -2023 - 2024 Legislature
961	961	LRB-5025/1
962	962	ARG:wlj
963	963	SECTION 25
964	964	SENATE BILL 668
965	965	licensed under this section. If any books and records are not located within this state,
966	966	the licensee, upon request of the division, shall promptly deliver such information
967	967	to any location within this state specified by the division. The licensee shall organize
968	968	the books and records by the place of business licensed location where the records
969	969	originated and shall keep the books and records separate from other records for
970	970	business conducted at that location. Actual costs incurred by the division to examine
971	971	books and records maintained outside of this state shall be paid by the licensee.
972	972	SECTION 26. 138.09 (7) (b), (bm) and (bn) of the statutes are repealed.
973	973	SECTION 27. 138.09 (7) (c) 2. and 4. of the statutes are amended to read:
974	974	138.09 (7) (c) 2. For the purpose of computing interest under this section,
975	975	whether at the maximum rate or less, a day shall be considered one-thirtieth of a
976	976	month when such computation is made for a fraction of a month. Loan contracts
977	977	providing for installments payable at monthly intervals may provide for a first period
978	978	between the date of the contract and the first installment due date of not more than
979	979	45 days and not less than 15 days. Where the first period is greater or lesser than
980	980	one month, interest may be charged only for each day in the first period, at a rate not
981	981	to exceed one-thirtieth of the interest which would be applicable to a first
982	982	installment period of one month, but such first period may be considered a monthly
983	983	interval for purposes of determining rebates. Where the first period is greater than
984	984	one month, any additional interest charge shall be earned and may be added to and
985	985	collected at the time of the first installment payment.
986	986	4. If 2 installments or parts thereof of a precomputed loan are not paid on or
987	987	before the 10th day after their scheduled or deferred due dates, a licensee may elect
988	988	to convert the loan from a precomputed loan to one in which the interest is computed
989	989	on unpaid balances actually outstanding. In this event the licensee shall make a
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1014	1014	25 - 22 -2023 - 2024 Legislature LRB-5025/1
1015	1015	ARG:wlj
1016	1016	SECTION 27 SENATE BILL 668
1017	1017	rebate pursuant to the provisions on rebate upon prepayment as of the due date of
1018	1018	an unpaid installment, and thereafter may charge interest from the due date as
1019	1019	provided in subd. 3. or by par. (b) 2. and no further delinquency or deferral charges
1020	1020	shall be made. The rate of interest may equal but not exceed the annual percentage
1021	1021	rate of finance charge which was disclosed to the borrower when the loan was made.
1022	1022	The rate of interest shall be computed on actual unpaid balances of the contract as
1023	1023	reduced by the rebate for the time that such balances are actually outstanding from
1024	1024	the due date as of which the rebate was made until the contract is fully paid.
1025	1025	SECTION 28. 138.09 (7) (e) 2. of the statutes is repealed.
1026	1026	SECTION 29. 138.09 (7) (e) 3. of the statutes is amended to read:
1027	1027	138.09 (7) (e) 3. Notwithstanding subds. subd. 1. and 2., delinquency charges
1028	1028	on precomputed consumer loans shall be governed by s. 422.203.
1029	1029	SECTION 30. 138.09 (7) (g) (intro.) of the statutes is amended to read:
1030	1030	138.09 (7) (g) (intro.) Except as provided in par. (gm), upon Upon prepayment
1031	1031	in full by cash, renewal, refinancing or otherwise, the borrower shall be entitled to
1032	1032	a rebate of the unearned interest as provided in this paragraph. If the combined
1033	1033	rebate of interest and credit insurance premiums otherwise required is less than $1,
1034	1034	no rebate need be made. The refunds shall be determined as follows:
1035	1035	SECTION 31. 138.09 (7) (gm) 1. and 2. of the statutes are repealed.
1036	1036	SECTION 32. 138.09 (7) (k) of the statutes is amended to read:
1037	1037	138.09 (7) (k) All consumer loans as defined in s. 421.301 (12) shall be governed
1038	1038	by chs. 421 to 427, but to the extent that chs. 421 to 427 are inconsistent with this
1039	1039	section, this section shall govern.
1040	1040	SECTION 33. 138.12 (1) (cm) and (dm) of the statutes are created to read:
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1064	1064	24 - 23 -2023 - 2024 Legislature
1065	1065	LRB-5025/1
1066	1066	ARG:wlj
1067	1067	SECTION 33
1068	1068	SENATE BILL 668
1069	1069	138.12 (1) (cm) “Nationwide multistate licensing system and registry” has the
1070	1070	meaning given in s. 224.35 (1g) (b).
1071	1071	(dm) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).
1072	1072	SECTION 34. 138.12 (3) (b) of the statutes is amended to read:
1073	1073	138.12 (3) (b) A license issued under this section expires on December 31 of the
1074	1074	calendar year in which the initial license term began, unless the initial license date
1075	1075	is between November 1 and December 31, in which instance the initial license term
1076	1076	shall run through December 31 of the following year. The annual license fee is $500
1077	1077	and shall be paid to the division in a form and manner acceptable to the division.
1078	1078	Licenses may be renewed May 1 of each year upon payment of the annual fee or
1079	1079	reinstated as provided in s. 224.35 (7).
1080	1080	SECTION 35. 138.12 (3) (c) of the statutes is repealed and recreated to read:
1081	1081	138.12 (3) (c) A licensee shall make an annual report and submit financial
1082	1082	statements as provided in s. 224.35 (8).
1083	1083	SECTION 36. 138.12 (3) (d) 2. c. of the statutes is created to read:
1084	1084	138.12 (3) (d) 2. c. The division may disclose information to the nationwide
1085	1085	multistate licensing system and registry as provided in s. 224.35.
1086	1086	SECTION 37. 138.12 (3) (f), (g) and (h) of the statutes are created to read:
1087	1087	138.12 (3) (f) The division shall utilize the nationwide multistate licensing
1088	1088	system and registry, and the provisions of s. 224.35 shall apply, with respect to
1089	1089	applicants and licensees under this section.
1090	1090	(g) An applicant or licensee under this section shall register with, and maintain
1091	1091	a valid unique identifier issued by, the nationwide multistate licensing system and
1092	1092	registry.
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1116	1116	24 - 24 -2023 - 2024 Legislature LRB-5025/1
1117	1117	ARG:wlj
1118	1118	SECTION 37 SENATE BILL 668
1119	1119	(h) Each licensee shall keep current and accurate all material information on
1120	1120	file with the division and the nationwide multistate licensing system and registry as
1121	1121	provided in s. 224.35 (6).
1122	1122	SECTION 38. 138.12 (4) (am) 1. of the statutes is amended to read:
1123	1123	138.12 (4) (am) 1. An applicant shall pay to the division a nonrefundable $300
1124	1124	license investigation fee and a $500 annual license fee for the period ending on the
1125	1125	next April 30 December 31.
1126	1126	SECTION 39. 138.12 (5) (a) 2. of the statutes is repealed and recreated to read:
1127	1127	138.12 (5) (a) 2. The licensee made a material misstatement, or knowingly
1128	1128	omitted a material fact, in an application for a license or in information furnished to
1129	1129	the division or the nationwide multistate licensing system and registry.
1130	1130	SECTION 40. 138.12 (5) (b) of the statutes is amended to read:
1131	1131	138.12 (5) (b) Before the division revokes, suspends or refuses to renew the
1132	1132	license of any premium finance company on any ground other than failure to timely
1133	1133	renew or reinstate the license as provided in s. 224.35 (7), the division shall give the
1134	1134	company an opportunity to be fully heard and to introduce evidence in the company's
1135	1135	behalf. In lieu of revoking or suspending the license for any of the causes enumerated
1136	1136	in this subsection, after hearing, the division may subject the premium finance
1137	1137	company to a penalty of not more than $200 for each offense when in the division's
1138	1138	judgment the division finds that the public interest would not be harmed by the
1139	1139	continued operation of such company. The amount of any penalty under this
1140	1140	paragraph shall be paid by the company to the division for the use of the state. At
1141	1141	any hearing under this subsection, the division may administer oaths to witnesses.
1142	1142	Anyone testifying falsely, after having been administered the oath, shall be subject
1143	1143	to the penalty of perjury.
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1168	1168	25 - 25 -2023 - 2024 Legislature
1169	1169	LRB-5025/1
1170	1170	ARG:wlj
1171	1171	SECTION 41
1172	1172	SENATE BILL 668
1173	1173	SECTION 41. 138.12 (5r) of the statutes is created to read:
1174	1174	138.12 (5r) REPORTING VIOLATIONS. The division may report any enforcement
1175	1175	action, any violation of this section or of an administrative rule or order, or other
1176	1176	relevant information to the nationwide multistate licensing system and registry.
1177	1177	Except as provided in s. 224.35 (4) (b) and (c), these reports to the nationwide
1178	1178	multistate licensing system and registry shall be confidential and are not subject to
1179	1179	public copying or inspection under s. 19.35 (1).
1180	1180	SECTION 42. 138.12 (14) of the statutes is repealed.
1181	1181	SECTION 43. 138.14 (1) (br), (jm) and (m) of the statutes are created to read:
1182	1182	138.14 (1) (br) “Customer identification number” means a unique number
1183	1183	assigned to a customer in a manner specified by the division, or by the database
1184	1184	provider acting at the direction of the division.
1185	1185	(jm) “Nationwide multistate licensing system and registry” has the meaning
1186	1186	given in s. 224.35 (1g) (b).
1187	1187	(m) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).
1188	1188	SECTION 44. 138.14 (4) (a) 1. (intro.) of the statutes is amended to read:
1189	1189	138.14 (4) (a) 1. (intro.) Application Subject to subd. 1g., application for licenses
1190	1190	under sub. (5) shall be made to the division in writing in the form and manner
1191	1191	prescribed by the division and shall include all of the following:
1192	1192	SECTION 45. 138.14 (4) (a) 1g., 1m. and 1r. of the statutes are created to read:
1193	1193	138.14 (4) (a) 1g. The division shall utilize the nationwide multistate licensing
1194	1194	system and registry, and the provisions of s. 224.35 shall apply, with respect to
1195	1195	applicants and licensees under this section.
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1219	1219	ARG:wlj
1220	1220	SECTION 45 SENATE BILL 668
1221	1221	1m. An applicant or licensee under this section shall register with, and
1222	1222	maintain a valid unique identifier issued by, the nationwide multistate licensing
1223	1223	system and registry.
1224	1224	1r. Each licensee shall keep current and accurate all material information on
1225	1225	file with the division and the nationwide multistate licensing system and registry as
1226	1226	provided in s. 224.35 (6).
1227	1227	SECTION 46. 138.14 (4) (a) 2. c. of the statutes is created to read:
1228	1228	138.14 (4) (a) 2. c. The division may disclose information to the nationwide
1229	1229	multistate licensing system and registry as provided in s. 224.35.
1230	1230	SECTION 47. 138.14 (5) (c) of the statutes is repealed and recreated to read:
1231	1231	138.14 (5) (c) A license may be renewed or reinstated as provided in s. 224.35
1232	1232	(7). A license that is not renewed or reinstated by the end of the reinstatement period
1233	1233	provided in s. 224.35 (7) shall be deemed to have expired on December 31 of the year
1234	1234	immediately preceding the reinstatement period, unless the initial license date is
1235	1235	between November 1 and December 31, in which instance the initial license term
1236	1236	shall run through December 31 of the following year.
1237	1237	SECTION 48. 138.14 (6) (a) of the statutes is amended to read:
1238	1238	138.14 (6) (a) Whenever a licensee changes the address of its place of business
1239	1239	to another location within the same city, village, or town, the licensee shall give
1240	1240	written notice thereof, in a form and manner prescribed by the division, to the
1241	1241	division within 10 business days of the relocation and the division shall replace the
1242	1242	original license with an amended license showing the new address. If so directed by
1243	1243	the division, the licensee shall provide any notice required under this subsection to
1244	1244	the nationwide multistate licensing system and registry as provided in s. 224.35. No
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1269	1269	LRB-5025/1
1270	1270	ARG:wlj
1271	1271	SECTION 48
1272	1272	SENATE BILL 668
1273	1273	change in the place of business of a licensee to a different city, village, or town is
1274	1274	permitted under the same license.
1275	1275	SECTION 49. 138.14 (6) (b) 1. b. of the statutes is amended to read:
1276	1276	138.14 (6) (b) 1. b. A seller of checks money transmitter business under ch. 217.
1277	1277	SECTION 50. 138.14 (7) (d) of the statutes is amended to read:
1278	1278	138.14 (7) (d) A licensee shall make an annual report to the division for each
1279	1279	calendar year on or before March 15 of the following year. The report shall include
1280	1280	business transacted by the licensee under this section and shall give all reasonable
1281	1281	and relevant information that the division may require, including the information
1282	1282	required for the division's reports under par. (e). The reports shall be made in the
1283	1283	form and manner prescribed by the division and submit financial statements as
1284	1284	provided in s. 224.35 (8).
1285	1285	SECTION 51. 138.14 (8) (c) of the statutes is amended to read:
1286	1286	138.14 (8) (c) The division shall have the same power to conduct hearings, take
1287	1287	testimony, and secure evidence as is provided in ss. 217.17 and 217.18 powers
1288	1288	granted under s. 217.11.
1289	1289	SECTION 52. 138.14 (9) (a) 4. of the statutes is amended to read:
1290	1290	138.14 (9) (a) 4. That the licensee made a material misstatement, or knowingly
1291	1291	omitted a material fact, in an application for a license or in information furnished to
1292	1292	the division or the nationwide multistate licensing system and registry.
1293	1293	SECTION 53. 138.14 (14) (c) 1. of the statutes is amended to read:
1294	1294	138.14 (14) (c) 1. Allow a licensee accessing the database to check a customer's
1295	1295	unique identification number that is assigned to the customer in a manner specified
1296	1296	by the division customer identification number. A customer's unique customer
1297	1297	identification number may not be based on the customer's social security number.
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1299	1299	2
1300	1300	3
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1323	1323	ARG:wlj
1324	1324	SECTION 54 SENATE BILL 668
1325	1325	SECTION 54. 138.14 (14) (m) of the statutes is amended to read:
1326	1326	138.14 (14) (m) Before entering into a payday loan, a licensee shall submit to
1327	1327	the database provider the customer's name; unique customer identification number
1328	1328	that is assigned in a manner specified by the division; address; driver license number
1329	1329	or other method of state identification; the amount of the transaction; the customer's
1330	1330	check number, if applicable; the date of the transaction; the maturity date of the loan;
1331	1331	and any other information reasonably required by the division, in a format approved
1332	1332	by the division.
1333	1333	SECTION 55. 138.14 (15) (title) of the statutes is amended to read:
1334	1334	138.14 (15) (title) PENALTIES; REPORTING VIOLATIONS.
1335	1335	SECTION 56. 138.14 (15) (c) of the statutes is created to read:
1336	1336	138.14 (15) (c) The division may report any enforcement action, any violation
1337	1337	of this section or of an administrative rule or order, or other relevant information to
1338	1338	the nationwide multistate licensing system and registry. Except as provided in s.
1339	1339	224.35 (4) (b) and (c), these reports to the nationwide multistate licensing system and
1340	1340	registry shall be confidential and are not subject to public copying or inspection
1341	1341	under s. 19.35 (1).
1342	1342	SECTION 57. 186.113 (22) (title) of the statutes is amended to read:
1343	1343	186.113 (22) (title) COMMUNITY CURRENCY EXCHANGE AND SELLER OF CHECKS
1344	1344	MONEY TRANSMITTER .
1345	1345	SECTION 58. 214.04 (20) of the statutes is amended to read:
1346	1346	214.04 (20) Upon receiving approval from the division, to act as an authorized
1347	1347	agent for its customers in the business and functions under ch. 217. A savings bank
1348	1348	that applies to function as a seller of checks money transmitter shall meet the
1349	1349	application requirements under ch. 217. The division may not charge a license or
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1375	1375	LRB-5025/1
1376	1376	ARG:wlj
1377	1377	SECTION 58
1378	1378	SENATE BILL 668
1379	1379	investigation fee for an application under this subsection. The seller of checks money
1380	1380	transmitter function of a savings bank shall be under the jurisdiction and
1381	1381	supervision of the division. The division shall enforce ch. 217 as it applies to savings
1382	1382	banks. The division shall determine what records shall be maintained and shall
1383	1383	require the segregation of funds that are necessary for a savings bank to operate as
1384	1384	a seller of checks money transmitter under this subsection and ch. 217.
1385	1385	SECTION 59. 215.13 (41) (title) of the statutes is amended to read:
1386	1386	215.13 (41) (title) SELLER OF CHECKS MONEY TRANSMITTER .
1387	1387	SECTION 60. Chapter 217 of the statutes is repealed and recreated to read:
1388	1388	CHAPTER 217
1389	1389	MONEY TRANSMITTERS
1390	1390	217.01 Short title. This chapter may be cited as the “Model Money
1391	1391	Transmission Modernization Law."
1392	1392	217.02 Definitions. In this chapter:
1393	1393	(1) “Acting in concert" means persons knowingly acting together with a
1394	1394	common goal of jointly acquiring control of a licensee, whether or not pursuant to an
1395	1395	express agreement.
1396	1396	(2) “Authorized delegate” means a person a licensee designates to engage in
1397	1397	money transmission on behalf of the licensee.
1398	1398	(3) “Average daily money transmission liability” means the amount of a
1399	1399	licensee's outstanding money transmission obligations at the end of each day in a
1400	1400	given period of time, added together, and divided by the total number of days in the
1401	1401	given period of time. For purposes of calculating average daily money transmission
1402	1402	liability under this chapter for any licensee required to do so, the given period of time
1403	1403	shall be the quarters ending March 31, June 30, September 30, and December 31.
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1429	1429	ARG:wlj
1430	1430	SECTION 60 SENATE BILL 668
1431	1431	(4) “Bank Secrecy Act” means the Bank Secrecy Act, 31 USC 5311 et seq., and
1432	1432	its implementing regulations.
1433	1433	(5) “Closed loop stored value” means stored value that is redeemable by the
1434	1434	issuer only for goods or services provided by the issuer or its affiliate or franchisees
1435	1435	of the issuer or its affiliate, except to the extent required by applicable law to be
1436	1436	redeemable in cash for its cash value.
1437	1437	(6) (a) “Control” means any of the following:
1438	1438	1. The power to vote, directly or indirectly, at least 25 percent of the outstanding
1439	1439	voting shares or voting interests of a licensee or person in control of a licensee.
1440	1440	2. The power to elect or appoint a majority of key individuals or executive
1441	1441	officers, managers, directors, trustees, or other persons exercising managerial
1442	1442	authority of a licensee or person in control of a licensee.
1443	1443	3. The power to exercise, directly or indirectly, a controlling influence over the
1444	1444	management or policies of a licensee or person in control of a licensee.
1445	1445	(b) A person is presumed to exercise a controlling influence within the meaning
1446	1446	of par. (a) 3. if the person holds the power to vote, directly or indirectly, at least 10
1447	1447	percent of the outstanding voting shares or voting interests of a licensee or person
1448	1448	in control of a licensee. A person presumed to exercise a controlling influence under
1449	1449	this paragraph may rebut the presumption of control by showing that the person is
1450	1450	a passive investor.
1451	1451	(c) For purposes of determining the percentage of a person controlled by any
1452	1452	other person, the person's interest shall be aggregated with the interest of any other
1453	1453	immediate family member, including the person's spouse, parents, children, siblings,
1454	1454	mothers-in-law, fathers-in-law, sons-in-law, daughters-in-law, brothers-in-law,
1455	1455	sisters-in-law, and any other person who shares the person's home.
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1481	1481	LRB-5025/1
1482	1482	ARG:wlj
1483	1483	SECTION 60
1484	1484	SENATE BILL 668
1485	1485	(7) “Division” means the division of banking.
1486	1486	(8) “Eligible rating” means a credit rating of any of the 3 highest rating
1487	1487	categories provided by an eligible rating service, whereby each category may include
1488	1488	rating category modifiers such as “plus” or “minus” for S&P, or the equivalent for any
1489	1489	other eligible rating service. Long-term credit ratings are deemed eligible if the
1490	1490	rating is equal to A- or higher by S&P, or the equivalent from any other eligible rating
1491	1491	service. Short-term credit ratings are deemed eligible if the rating is equal to or
1492	1492	higher than A-2 or SP-2 by S&P, or the equivalent from any other eligible rating
1493	1493	service. If ratings differ among eligible rating services, the highest rating applies
1494	1494	when determining whether a security bears an eligible rating.
1495	1495	(9) “Eligible rating service” means any nationally recognized statistical rating
1496	1496	organization as defined by the U.S. Securities and Exchange Commission, and any
1497	1497	other organization designated by the division.
1498	1498	(10) “Federally insured depository financial institution” means a bank, credit
1499	1499	union, savings and loan association, trust company, savings association, savings
1500	1500	bank, industrial bank, or industrial loan company organized under the laws of the
1501	1501	United States or any state of the United States, when such bank, credit union,
1502	1502	savings and loan association, trust company, savings association, savings bank,
1503	1503	industrial bank, or industrial loan company has federally insured deposits.
1504	1504	(11) “In this state” includes, with respect to a money transmission transaction,
1505	1505	all of the following:
1506	1506	(a) A transaction requested in person at a physical location within the
1507	1507	geographic boundaries of this state.
1508	1508	(b) A transaction requested by telephone or electronic means by a resident of
1509	1509	this state, if information provided by the person requesting the transaction, or other
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1534	1534	25 - 32 -2023 - 2024 Legislature LRB-5025/1
1535	1535	ARG:wlj
1536	1536	SECTION 60 SENATE BILL 668
1537	1537	records of the provider of money transmission, indicate that the person's physical
1538	1538	address or principal place of business is located within the geographic boundaries of
1539	1539	this state.
1540	1540	(12) “Key individual” means any individual ultimately responsible for
1541	1541	establishing or directing policies and procedures of a licensee, such as an executive
1542	1542	officer, manager, director, or trustee.
1543	1543	(13) “Licensee” means a person licensed under this chapter.
1544	1544	(14) “Material litigation” means litigation that, according to U.S. generally
1545	1545	accepted accounting principles, is significant to a person's financial health and would
1546	1546	be required to be disclosed in the person's annual audited financial statements,
1547	1547	report to shareholders, or similar records.
1548	1548	(15) “Monetary value” means a medium of exchange, whether or not
1549	1549	redeemable in money.
1550	1550	(16) “Money” means a medium of exchange that is authorized or adopted by the
1551	1551	United States or a foreign government. “Money” includes a monetary unit of account
1552	1552	established by an intergovernmental organization or by agreement between 2 or
1553	1553	more governments.
1554	1554	(17) (a) “Money transmission” means any of the following:
1555	1555	1. Selling or issuing payment instruments to a person located in this state.
1556	1556	2. Selling or issuing stored value to a person located in this state.
1557	1557	3. Receiving money for transmission from a person located in this state.
1558	1558	(b) “Money transmission” includes payroll processing services.
1559	1559	(18) “MSB-accredited state” means a state that has an agency that is
1560	1560	accredited by the Conference of State Bank Supervisors and Money Transmitter
1561	1561	Regulators Association for money transmission licensing and supervision.
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1586	1586	25 - 33 -2023 - 2024 Legislature
1587	1587	LRB-5025/1
1588	1588	ARG:wlj
1589	1589	SECTION 60
1590	1590	SENATE BILL 668
1591	1591	(19) “Multistate licensing process” means any agreement among state
1592	1592	regulators relating to coordinated processing of applications for money transmission
1593	1593	licenses, applications for the acquisition of control of a licensee, control
1594	1594	determinations, or notice and information requirements for a change of key
1595	1595	individuals.
1596	1596	(20) “Nationwide multistate licensing system and registry” has the meaning
1597	1597	given in s. 224.35 (1g) (b).
1598	1598	(21) (a) “Outstanding money transmission obligations” includes all of the
1599	1599	following:
1600	1600	1. Any payment instrument or stored value issued or sold by a licensee to a
1601	1601	person located in the United States or reported as sold by an authorized delegate of
1602	1602	the licensee to a person that is located in the United States that has not yet been paid
1603	1603	or refunded by or for the licensee, or reported and delivered to the secretary of
1604	1604	revenue as provided under ch. 177.
1605	1605	2. Any money received for transmission by a licensee or an authorized delegate
1606	1606	in the United States from a person located in the United States that has not been
1607	1607	received by the payee or refunded to the sender, or escheated in accordance with
1608	1608	applicable abandoned property laws.
1609	1609	(b) For purposes of this subsection, “in the United States” includes any state,
1610	1610	territory, or possession of the United States, any U.S. military installation that is
1611	1611	located in a foreign country, the District of Columbia, and the Commonwealth of
1612	1612	Puerto Rico.
1613	1613	(22) (a) “Passive investor” means a person who meets all of the following
1614	1614	criteria:
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1639	1639	ARG:wlj
1640	1640	SECTION 60 SENATE BILL 668
1641	1641	1. The person does not have the power to elect a majority of key individuals or
1642	1642	executive officers, managers, directors, trustees, or other persons exercising
1643	1643	managerial authority of a person in control of a licensee.
1644	1644	2. The person is not employed by, and does not have any managerial duties of,
1645	1645	a licensee or a person in control of a licensee.
1646	1646	3. The person does not have the power to exercise, either directly or indirectly,
1647	1647	a controlling influence over the management or policies of a licensee or person in
1648	1648	control of a licensee.
1649	1649	(b) A passive investor may demonstrate satisfaction of the criteria of par. (a)
1650	1650	by completing an attestation or other document, in a form and manner prescribed by
1651	1651	the division, confirming that each of those criteria is met.
1652	1652	(23) “Payment instrument” means a written or electronic check, draft, money
1653	1653	order, traveler's check, or other written or electronic instrument for the transmission
1654	1654	or payment of money or monetary value, whether or not negotiable. “Payment
1655	1655	instrument” does not include stored value or any instrument that is redeemable by
1656	1656	the issuer only for goods or services provided by the issuer or its affiliate or
1657	1657	franchisees of the issuer or its affiliate, except to the extent required by applicable
1658	1658	law to be redeemable in cash for its cash value. “Payment instrument” also does not
1659	1659	include any instrument that is not sold to the public and is issued and distributed
1660	1660	as part of a loyalty, rewards, or promotional program.
1661	1661	(24) “Payroll processing services” means receiving money for transmission
1662	1662	pursuant to a contract with a person to deliver wages or salaries, make payment of
1663	1663	payroll taxes to state and federal agencies, make payments relating to employee
1664	1664	benefit plans, or make distributions of other authorized deductions from wages or
1665	1665	salaries. “Payroll processing services” does not include an employer performing
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1691	1691	LRB-5025/1
1692	1692	ARG:wlj
1693	1693	SECTION 60
1694	1694	SENATE BILL 668
1695	1695	payroll processing services on its own behalf or on behalf of its affiliate, or a
1696	1696	professional employer organization subject to regulation under ch. 202.
1697	1697	(25) “Person” includes individuals, general partnerships, limited
1698	1698	partnerships, limited liability companies, corporations, trusts, associations, joint
1699	1699	stock corporations, and other bodies politic or corporate.
1700	1700	(26) “Receiving money for transmission” or “money received for transmission”
1701	1701	means receiving money or monetary value in the United States for transmission
1702	1702	within or outside the United States by electronic or other means.
1703	1703	(27) “Stored value” means monetary value representing a claim against the
1704	1704	issuer evidenced by an electronic or digital record, and that is intended and accepted
1705	1705	for use as a means of redemption for money or monetary value or payment for goods
1706	1706	or services. “Stored value” includes prepaid access, as defined in 31 CFR 1010.100.
1707	1707	Notwithstanding the foregoing, “stored value” does not include a payment
1708	1708	instrument or closed loop stored value, or stored value not sold to the public but
1709	1709	issued and distributed as part of a loyalty, rewards, or promotional program.
1710	1710	(28) “Tangible net worth” means the aggregate assets of a licensee excluding
1711	1711	all intangible assets, less liabilities, as determined in accordance with U.S. generally
1712	1712	accepted accounting principles.
1713	1713	(29) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).
1714	1714	217.03 Exemptions. (1) This chapter does not apply to any of the following:
1715	1715	(a) An operator of a payment system to the extent that it provides processing,
1716	1716	clearing, or settlement services, between or among persons exempted by this section
1717	1717	or licensees, in connection with wire transfers, credit card transactions, debit card
1718	1718	transactions, stored-value transactions, automated clearing house transfers, or
1719	1719	similar funds transfers.
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1745	1745	ARG:wlj
1746	1746	SECTION 60 SENATE BILL 668
1747	1747	(b) A person appointed as an agent of a payee to collect and process a payment
1748	1748	from a payor to the payee for goods or services, other than money transmission itself,
1749	1749	provided to the payor by the payee, if all the following are true:
1750	1750	1. There exists a written agreement between the payee and the agent directing
1751	1751	the agent to collect and process payments from payors on the payee's behalf.
1752	1752	2. The payee holds the agent out to the public as accepting payments for goods
1753	1753	or services on the payee's behalf.
1754	1754	3. Payment for the goods and services is treated as received by the payee upon
1755	1755	receipt by the agent, so that the payor's obligation is extinguished and there is no risk
1756	1756	of loss to the payor if the agent fails to remit the funds to the payee.
1757	1757	(c) A person who acts as an intermediary by processing payments between an
1758	1758	entity that has directly incurred an outstanding money transmission obligation to
1759	1759	a sender and the sender's designated recipient, if all the following are true:
1760	1760	1. The entity is licensed, or is exempt from licensing requirements, under this
1761	1761	chapter.
1762	1762	2. The entity provides a receipt, electronic record, or other written confirmation
1763	1763	to the sender identifying the entity as the provider of money transmission in the
1764	1764	transaction.
1765	1765	3. The entity bears sole responsibility to satisfy the outstanding money
1766	1766	transmission obligation to the sender, including the obligation to make the sender
1767	1767	whole in connection with any failure to transmit the funds to the sender's designated
1768	1768	recipient.
1769	1769	(d) The United States or a department, agency, or instrumentality thereof, or
1770	1770	its agent.
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1795	1795	LRB-5025/1
1796	1796	ARG:wlj
1797	1797	SECTION 60
1798	1798	SENATE BILL 668
1799	1799	(e) Money transmission by the U.S. postal service or an agent of the U.S. postal
1800	1800	service.
1801	1801	(f) A state, county, city, or any other governmental agency or governmental
1802	1802	subdivision or instrumentality of a state, or its agent.
1803	1803	(g) A federally insured depository financial institution, bank holding company,
1804	1804	office of an international banking corporation, foreign bank that establishes a
1805	1805	federal branch pursuant to the International Bank Act, 12 USC 3102, corporation
1806	1806	organized pursuant to the Bank Service Corporation Act, 12 USC 1861 to 1867, or
1807	1807	corporation organized under the Edge Act, 12 USC 611 to 633.
1808	1808	(h) Electronic funds transfer of governmental benefits for a federal, state,
1809	1809	county, or governmental agency by a contractor on behalf of the United States or a
1810	1810	department, agency, or instrumentality thereof, or on behalf of a state or
1811	1811	governmental subdivision, agency, or instrumentality thereof.
1812	1812	(i) A board of trade designated as a contract market under the federal
1813	1813	Commodity Exchange Act, 7 USC 1 to 25, or a person that, in the ordinary course of
1814	1814	business, provides clearance and settlement services for a board of trade to the extent
1815	1815	of its operation as or for such a board.
1816	1816	(j) A registered futures commission merchant under the federal commodities
1817	1817	laws to the extent of its operation as such a merchant.
1818	1818	(k) A person registered as a securities broker-dealer under federal or state
1819	1819	securities laws to the extent of its operation as such a broker-dealer.
1820	1820	(L) An individual employed by a licensee, authorized delegate, or any person
1821	1821	exempted from the licensing requirements of this chapter when acting within the
1822	1822	scope of employment and under the supervision of the licensee, authorized delegate,
1823	1823	or exempted person as an employee and not as an independent contractor.
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1849	1849	ARG:wlj
1850	1850	SECTION 60 SENATE BILL 668
1851	1851	(m) A person expressly appointed as a 3rd-party service provider to or agent
1852	1852	of an entity exempt under par. (g), solely to the extent that all of the following are
1853	1853	true:
1854	1854	1. The service provider or agent is engaging in money transmission on behalf
1855	1855	of and pursuant to a written agreement with the exempt entity that sets forth the
1856	1856	specific functions that the service provider or agent is to perform.
1857	1857	2. The exempt entity assumes all risk of loss and all legal responsibility for
1858	1858	satisfying the outstanding money transmission obligations owed to a purchaser or
1859	1859	holder of the outstanding money transmission obligations upon receipt of the
1860	1860	purchaser's or holder's money or monetary value by the service provider or agent.
1861	1861	(n) A person exempted by written determination of the division, if the division
1862	1862	finds the exemption to be in the public interest and that the regulation of the person
1863	1863	is not necessary for the purposes of this chapter.
1864	1864	(2) The division may require that any person claiming to be exempt from
1865	1865	licensing requirements under this chapter provide information and documentation
1866	1866	to the division demonstrating that the person qualifies for any claimed exemption.
1867	1867	217.04 Participation in the nationwide multistate licensing system and
1868	1868	registry; networked supervision; confidentiality. (1) PARTICIPATION IN THE
1869	1869	NATIONWIDE MULTISTATE LICENSING SYSTEM AND REGISTRY. The division shall utilize the
1870	1870	nationwide multistate licensing system and registry, and the provisions of s. 224.35
1871	1871	shall apply, with respect to applicants and licensees under this chapter. An applicant
1872	1872	or licensee under this chapter shall register with, and maintain a valid unique
1873	1873	identifier issued by, the nationwide multistate licensing system and registry.
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1897	1897	LRB-5025/1
1898	1898	ARG:wlj
1899	1899	SECTION 60
1900	1900	SENATE BILL 668
1901	1901	(2) NETWORKED SUPERVISION. To efficiently and effectively administer and
1902	1902	enforce this chapter and to minimize regulatory burden, the division may do any of
1903	1903	the following:
1904	1904	(a) Participate in multistate supervisory processes established between states
1905	1905	and coordinated through the Conference of State Bank Supervisors, Money
1906	1906	Transmitter Regulators Association, and affiliates and successors thereof for all
1907	1907	licensees that hold licenses in this state and other states.
1908	1908	(b) Enter into agreements or relationships with other government officials or
1909	1909	federal and state regulatory agencies and regulatory associations, including
1910	1910	organizations the membership of which is made up of state or federal governmental
1911	1911	agencies, to standardize methods or procedures or share resources, records or related
1912	1912	information obtained under this chapter.
1913	1913	(c) Enter into agreements or relationships with the nationwide multistate
1914	1914	licensing system and registry, or other entities designated by the nationwide
1915	1915	multistate licensing system and registry, to collect and maintain records, coordinate
1916	1916	multistate licensing processes and supervision processes, process fees, and facilitate
1917	1917	communication with licensees or other persons subject to this chapter.
1918	1918	(d) Utilize nationwide multistate licensing system and registry forms,
1919	1919	processes, and functionalities in accordance with this chapter.
1920	1920	(e) Waive or modify any requirement, and establish new requirements by rule
1921	1921	or order, as reasonably necessary to participate in the nationwide multistate
1922	1922	licensing system and registry.
1923	1923	(f) Accept a licensing, examination, or investigation report made by another
1924	1924	state or federal government agency or official, or a report prepared by an
1925	1925	independent accounting firm.
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1951	1951	ARG:wlj
1952	1952	SECTION 60 SENATE BILL 668
1953	1953	(g) Accept the investigation results or control determination of another state,
1954	1954	if the other state has sufficient staffing and expertise and meets minimum
1955	1955	standards.
1956	1956	(h) Conduct examinations in conjunction with examinations conducted by
1957	1957	representatives of other state agencies or agencies of another state or of the federal
1958	1958	government.
1959	1959	(i) Utilize multistate record production standards and examination procedures
1960	1960	when such standards and procedures will reasonably achieve the purposes of this
1961	1961	chapter.
1962	1962	(j) Participate in nationwide protocols for licensing cooperation and
1963	1963	coordination among state regulators if these protocols are consistent with this
1964	1964	chapter.
1965	1965	(k) Implement this chapter in a manner that facilitates uniformity with respect
1966	1966	to licensing, supervision, reporting, and regulation of licensees that are licensed in
1967	1967	multiple jurisdictions.
1968	1968	(3) CONFIDENTIALITY. (a) Section 220.06 applies to this chapter.
1969	1969	(b) The division may not disclose information received under s. 217.05 (3) (b)
1970	1970	2. to any person except as follows:
1971	1971	1. The division may disclose the applicant's social security number or federal
1972	1972	employer identification number to the department of revenue for the sole purpose of
1973	1973	requesting certifications under s. 73.0301 and to the department of workforce
1974	1974	development for the sole purpose of requesting certifications under s. 108.227.
1975	1975	2. The division may disclose the applicant's social security number to the
1976	1976	department of children and families in accordance with a memorandum of
1977	1977	understanding under s. 49.857.
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1979	1979	2
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2003	2003	LRB-5025/1
2004	2004	ARG:wlj
2005	2005	SECTION 60
2006	2006	SENATE BILL 668
2007	2007	3. The division may disclose information to the nationwide multistate licensing
2008	2008	system and registry as provided in s. 224.35.
2009	2009	217.05 License requirements. (1) LICENSE REQUIRED. A person may not
2010	2010	engage in the business of money transmission or advertise, solicit, or hold itself out
2011	2011	as providing money transmission unless the person is licensed under this chapter.
2012	2012	This subsection does not apply to an authorized delegate of a person licensed under
2013	2013	this chapter acting within the scope of authority conferred by a written contract with
2014	2014	the licensee, or to a person who is exempt pursuant to s. 217.03 and does not engage
2015	2015	in money transmission outside the scope of the exemption.
2016	2016	(2) LICENSE NOT TRANSFERABLE. A license issued under this section is not
2017	2017	transferable or assignable.
2018	2018	(3) APPLICATION FOR LICENSE. (a) An applicant for a license shall apply in a form
2019	2019	and manner prescribed by the division and submit a $1,000 nonrefundable
2020	2020	application fee.
2021	2021	(b) The applicant shall provide all of the following information to the division:
2022	2022	1. The legal name and residential and business addresses of the applicant and
2023	2023	any fictitious or trade name used by the applicant in conducting its business.
2024	2024	2. The applicant's federal employer identification number or social security
2025	2025	number, as applicable. If an applicant who is an individual does not have a social
2026	2026	security number, the applicant, as a condition of applying for or applying to renew
2027	2027	a license, shall submit a statement made or subscribed under oath or affirmation to
2028	2028	the division that the applicant does not have a social security number. The form of
2029	2029	the statement shall be prescribed by the department of children and families.
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2053	2053	ARG:wlj
2054	2054	SECTION 60 SENATE BILL 668
2055	2055	3. A list of any criminal convictions of the applicant and any material litigation
2056	2056	in which the applicant has been involved in the 10-year period next preceding the
2057	2057	submission of the application.
2058	2058	4. A description of any money transmission previously provided by the
2059	2059	applicant and the money transmission that the applicant seeks to provide in this
2060	2060	state.
2061	2061	5. A list of the applicant's proposed authorized delegates and the locations in
2062	2062	this state where the applicant and its authorized delegates propose to engage in
2063	2063	money transmission.
2064	2064	6. A list of other states in which the applicant is licensed to engage in money
2065	2065	transmission and any license revocations, suspensions, or other disciplinary action
2066	2066	taken against the applicant in another state.
2067	2067	7. Information concerning any bankruptcy or receivership proceedings
2068	2068	affecting the applicant or a person in control of the applicant.
2069	2069	8. A sample form of contract for authorized delegates, if applicable.
2070	2070	9. A sample form of each payment instrument or stored value, as applicable.
2071	2071	10. The name and address of any federally insured depository financial
2072	2072	institution through which the applicant plans to conduct money transmission.
2073	2073	11. A copy of audited financial statements of the applicant for the most recent
2074	2074	fiscal year and for the 2-year period next preceding the submission of the application
2075	2075	or, if acceptable to the division, certified unaudited financial statements for the most
2076	2076	recent fiscal year or another period acceptable to the division.
2077	2077	12. A certified copy of unaudited financial statements of the applicant for the
2078	2078	most recent fiscal quarter.
2079	2079	13. A copy of the surety bond or other form of security required by s. 217.10 (2).
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2106	2106	ARG:wlj
2107	2107	SECTION 60
2108	2108	SENATE BILL 668
2109	2109	14. Any other information the division or the nationwide multistate licensing
2110	2110	system and registry reasonably requires with respect to the applicant.
2111	2111	(c) If the applicant is a corporation, limited liability company, partnership, or
2112	2112	other legal entity, the applicant shall provide all of the following information to the
2113	2113	division, in addition to the information required under par. (b):
2114	2114	1. The date of the applicant's incorporation or formation and state or country
2115	2115	of incorporation or formation.
2116	2116	2. A certificate of good standing from the state or country in which the applicant
2117	2117	is incorporated or formed, if applicable.
2118	2118	3. A brief description of the structure or organization of the applicant, including
2119	2119	each parent or subsidiary of the applicant and whether each parent or subsidiary is
2120	2120	publicly traded.
2121	2121	4. The legal name, any fictitious or trade name, all business and residential
2122	2122	addresses, and the employment, as applicable, in the 10-year period next preceding
2123	2123	the submission of the application, of each key individual and person in control of the
2124	2124	applicant.
2125	2125	5. A list of any criminal convictions and material litigation in which a person
2126	2126	in control of the applicant that is not an individual has been involved in the 10-year
2127	2127	period next preceding the submission of the application.
2128	2128	6. If the applicant is a publicly traded corporation, a copy of the most recent
2129	2129	report filed with the U.S. Securities and Exchange Commission under section 13 of
2130	2130	the Securities Exchange Act of 1934, 15 USC 78m.
2131	2131	7. If the applicant is a wholly owned subsidiary of a publicly traded corporation,
2132	2132	one of the following as applicable:
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2157	2157	ARG:wlj
2158	2158	SECTION 60 SENATE BILL 668
2159	2159	a. If the parent corporation is publicly traded in the United States, a copy of
2160	2160	the parent corporation's audited financial statements for the most recent fiscal year
2161	2161	or a copy of the parent corporation's most recent report filed under section 13 of the
2162	2162	Securities Exchange Act of 1934, 15 USC 78m.
2163	2163	b. If the parent corporation is publicly traded outside the United States, a copy
2164	2164	of similar documentation filed with the regulator of the parent corporation's domicile
2165	2165	outside the United States.
2166	2166	8. The name and address of the applicant's registered agent in this state.
2167	2167	(d) The division may waive one or more requirements of par. (b) or (c) or permit
2168	2168	an applicant to submit other information in lieu of the required information.
2169	2169	(4) INFORMATION REQUIREMENTS FOR CERTAIN INDIVIDUALS. (a) Any individual in
2170	2170	control of a licensee or applicant, any individual that seeks to acquire control of a
2171	2171	licensee, and each key individual shall provide all of the following items to the
2172	2172	division through the nationwide multistate licensing system and registry as
2173	2173	provided in s. 224.35 (2):
2174	2174	1. The individual's fingerprints for submission to the federal bureau of
2175	2175	investigation and the division for purposes of a national criminal history background
2176	2176	check unless the person currently resides outside of the United States and has
2177	2177	resided outside the United States for the last 10 years.
2178	2178	2. Personal history and experience in a form and manner prescribed by the
2179	2179	division, to include all of the following:
2180	2180	a. An independent credit report from a consumer reporting agency. This
2181	2181	requirement shall be waived if the individual does not have a social security number.
2182	2182	b. Information related to any criminal convictions or pending charges.
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2207	2207	LRB-5025/1
2208	2208	ARG:wlj
2209	2209	SECTION 60
2210	2210	SENATE BILL 668
2211	2211	c. Information related to any regulatory or administrative action and any civil
2212	2212	litigation involving claims of fraud, misrepresentation, conversion, mismanagement
2213	2213	of funds, breach of fiduciary duty, or breach of contract.
2214	2214	3. Any other information the division or the nationwide multistate licensing
2215	2215	system and registry reasonably requires with respect to the individual.
2216	2216	(b) If the individual has resided outside the United States at any time in the
2217	2217	last 10 years, the individual shall also provide an investigative background report
2218	2218	prepared by an independent search firm that meets all of the following requirements:
2219	2219	1. The search firm has sufficient knowledge and resources and employs
2220	2220	accepted and reasonable methodologies in conducting its research for the
2221	2221	background report.
2222	2222	2. The search firm is not affiliated with, and does not have an interest with, the
2223	2223	individual it is researching.
2224	2224	3. The background report is written in the English language and contains, at
2225	2225	a minimum, all of the following information:
2226	2226	a. If available in the individual's current jurisdiction of residency, a
2227	2227	comprehensive credit report, or any equivalent information obtained or generated
2228	2228	by the independent search firm to accomplish such report, including a search of the
2229	2229	court data in the countries, provinces, states, cities, towns, and contiguous areas
2230	2230	where the individual resided and worked.
2231	2231	b. Criminal records information for the past 10 years, including felonies,
2232	2232	misdemeanors, or similar convictions for violations of law in the countries, provinces,
2233	2233	states, cities, towns, and contiguous areas where the individual resided and worked.
2234	2234	c. Employment history.
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2259	2259	ARG:wlj
2260	2260	SECTION 60 SENATE BILL 668
2261	2261	d. Media history, including an electronic search of national and local
2262	2262	publications, wire services, and business applications.
2263	2263	e. Financial services-related regulatory history, including money
2264	2264	transmission, securities, banking, insurance, and mortgage-related industries.
2265	2265	(5) ISSUANCE OF LICENSE. (a) When an application for an original license under
2266	2266	this section appears to include all the items and address all the matters that are
2267	2267	required, the application is complete. The division shall promptly notify the
2268	2268	applicant in a record of the date on which the application is determined to be
2269	2269	complete.
2270	2270	(b) If an applicant fails to complete the application for a new license or for a
2271	2271	change in control of a license within 60 days after the division provides written notice
2272	2272	that the application is incomplete, the application is deemed abandoned and the
2273	2273	application fee shall not be refunded. An applicant whose application is deemed
2274	2274	abandoned under this paragraph may reapply as provided in this section.
2275	2275	(c) A determination by the division that an application is complete and is
2276	2276	accepted for processing means only that the application, on its face, appears to
2277	2277	include all of the items, including the criminal background check response from the
2278	2278	federal bureau of investigation, and address all of the matters that are required, and
2279	2279	is not an assessment of the substance of the application or of the sufficiency of the
2280	2280	information provided.
2281	2281	(d) When an application is filed and considered complete under this section, the
2282	2282	division shall investigate the applicant's financial condition and responsibility,
2283	2283	financial and business experience, character, and general fitness. The division may
2284	2284	conduct an on-site investigation of the applicant, the reasonable cost of which the
2285	2285	1
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2310	2310	ARG:wlj
2311	2311	SECTION 60
2312	2312	SENATE BILL 668
2313	2313	applicant shall pay. If the applicant utilizes a multistate licensing process, the
2314	2314	division may accept the investigation results of another state.
2315	2315	(e) The division shall issue a license to an applicant under this section if the
2316	2316	division finds all of the following:
2317	2317	1. The applicant has satisfied all applicable requirements of this section.
2318	2318	2. The applicant's financial statements demonstrate a sufficient net worth to
2319	2319	meet the requirements of s. 217.10 (1).
2320	2320	3. The applicant has submitted a surety bond or other permitted form of
2321	2321	security that meets the requirements s. 217.10 (2).
2322	2322	4. The financial condition and responsibility, financial and business
2323	2323	experience, competence, character, and general fitness of the applicant, and the
2324	2324	competence, experience, character, and general fitness of the key individuals and
2325	2325	persons in control of the applicant, indicate that it is in the interest of the public to
2326	2326	permit the applicant to engage in money transmission.
2327	2327	5. The applicant has not been certified under s. 73.0301 by the department of
2328	2328	revenue to be liable for delinquent taxes.
2329	2329	6. The applicant has not been certified under s. 108.227 by the department of
2330	2330	workforce development to be liable for delinquent unemployment insurance
2331	2331	contributions.
2332	2332	7. If the applicant is an individual, the applicant has not failed to comply, after
2333	2333	appropriate notice, with a subpoena or warrant issued by the department of children
2334	2334	and families or a county child support agency under s. 59.53 (5) and related to
2335	2335	paternity or child support proceedings and is not delinquent in making
2336	2336	court-ordered payments of child or family support, maintenance, birth expenses,
2337	2337	1
2338	2338	2
2339	2339	3
2340	2340	4
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2343	2343	7
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2361	2361	ARG:wlj
2362	2362	SECTION 60 SENATE BILL 668
2363	2363	medical expenses or other expenses related to the support of a child or former spouse,
2364	2364	as provided in a memorandum of understanding entered into under s. 49.857.
2365	2365	(f) The division shall approve or deny an application within 120 days after the
2366	2366	application's completion date. The division may for good cause extend the review
2367	2367	period. Unless the review period has been extended, an application that is not
2368	2368	approved or denied within 120 days after the completion date is deemed approved.
2369	2369	(g) The division shall issue a formal written notice of the denial of a license
2370	2370	application within 30 days of the decision to deny the application. The division shall
2371	2371	set forth in the notice of denial the specific reasons for the denial of the application.
2372	2372	An applicant whose application is denied by the division under this section may
2373	2373	request a hearing under s. 227.44 within 30 days after the date of denial. The
2374	2374	division may appoint a hearing examiner under s. 227.46 to conduct the hearing.
2375	2375	(h) The initial license term shall begin on the day the application is approved.
2376	2376	The license shall expire on December 31 of the year in which the license term began,
2377	2377	unless the initial license date is between November 1 and December 31, in which
2378	2378	instance the initial license term shall run through December 31 of the following year.
2379	2379	(6) RENEWAL OF LICENSE AND ANNUAL FEE. (a) A license may be renewed or
2380	2380	reinstated as provided in s. 224.35 (7).
2381	2381	(b) No more than 60 days before license expiration, a licensee shall pay an
2382	2382	annual renewal fee on the basis of its volume of money transmission in this state, as
2383	2383	follows:
2384	2384	1. For a volume of $10,000,000 or less of money transmitted in the prior
2385	2385	calendar year, $500.
2386	2386	2. For a volume of $10,000,001 to $100,000,000 of money transmitted in the
2387	2387	prior calendar year, $1,000.
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2415	2415	SECTION 60
2416	2416	SENATE BILL 668
2417	2417	3. For a volume of $100,000,001 to $1,000,000,000 of money transmitted in the
2418	2418	prior calendar year, $2,000.
2419	2419	4. For a volume greater than $1,000,000,000 of money transmitted in the prior
2420	2420	calendar year, $4,000.
2421	2421	(7) REVOCATION, SUSPENSION, OR REFUSAL TO RENEW A LICENSE. (a) The division
2422	2422	may, after a complaint, notice, and hearing, deny an application or suspend, revoke,
2423	2423	or refuse to renew a license issued under this section if the division finds any of the
2424	2424	following:
2425	2425	1. The applicant or licensee failed to comply with an order of the division, any
2426	2426	provision of this chapter or rule promulgated under this chapter, or any other state
2427	2427	or federal law applicable to money transmission.
2428	2428	2. The applicant or licensee failed to cooperate with an investigation,
2429	2429	examination, or other request for information by the division.
2430	2430	3. The applicant or licensee engaged in unsafe or unsound practices in
2431	2431	connection with the business of money transmission.
2432	2432	4. The applicant or licensee made a material misstatement, or knowingly
2433	2433	omitted a material fact, in an application for a license or in information furnished to
2434	2434	the division or the nationwide multistate licensing system and registry.
2435	2435	5. The applicant or licensee engaged in any fraudulent or deceptive conduct or
2436	2436	gross negligence relating to the business of money transmission.
2437	2437	6. A federal or state administrative order has been entered against the
2438	2438	applicant or licensee for violation of any rule or regulation applicable to the conduct
2439	2439	of the person's money transmission business.
2440	2440	7. The licensee no longer meets a requirement for initial granting of a license.
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2466	2466	SECTION 60 SENATE BILL 668
2467	2467	8. The licensee is financially unable to perform the licensee's obligations or has
2468	2468	willfully failed without reasonable cause to provide for payment of obligations.
2469	2469	9. The licensee failed to employ reasonable measures to ensure that an
2470	2470	authorized delegate complies with all orders of the division, this chapter, and all
2471	2471	rules promulgated under this chapter, and all other applicable state or federal law.
2472	2472	10. The financial responsibility, character, reputation, experience, and general
2473	2473	fitness of the applicant or licensee, or a key individual or person in control thereof,
2474	2474	indicate that it is not in the public interest to permit the applicant or licensee to
2475	2475	provide money transmission in this state.
2476	2476	11. The licensee failed to remove an authorized delegate after receiving notice
2477	2477	from the division that the authorized delegate has failed to comply with an order of
2478	2478	the division, any provision of this chapter, any rule promulgated under this chapter,
2479	2479	or any other applicable state or federal law.
2480	2480	(b) The division shall restrict or suspend a license issued to an individual if the
2481	2481	individual fails to comply, after appropriate notice, with a subpoena or warrant
2482	2482	issued by the department of children and families or a county child support agency
2483	2483	under s. 59.53 (5) and related to paternity or child support proceedings or is
2484	2484	delinquent in making court-ordered payments of child or family support,
2485	2485	maintenance, birth expenses, medical expenses, or other expenses related to the
2486	2486	support of a child or former spouse, as provided in a memorandum of understanding
2487	2487	entered into under s. 49.857. A licensee whose license is restricted or suspended
2488	2488	under this paragraph is entitled to a notice and hearing only as provided in a
2489	2489	memorandum of understanding entered into under s. 49.857 and is not entitled to
2490	2490	any other notice or hearing under this chapter.
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2517	2517	SECTION 60
2518	2518	SENATE BILL 668
2519	2519	(c) The division shall revoke any license issued under this section if the
2520	2520	department of revenue certifies under s. 73.0301 that the licensee is liable for
2521	2521	delinquent taxes. A licensee whose license is revoked under this paragraph for
2522	2522	delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and hearing under
2523	2523	s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this chapter.
2524	2524	(d) The division shall revoke any license issued under this section if the
2525	2525	department of workforce development certifies under s. 108.227 that the licensee is
2526	2526	liable for delinquent unemployment insurance contributions. A licensee whose
2527	2527	license is revoked under this paragraph for delinquent unemployment insurance
2528	2528	contributions is entitled to a notice under s. 108.227 (2) (b) 1. b. and hearing under
2529	2529	s. 108.227 (5) (a) but is not entitled to any other notice or hearing under this chapter.
2530	2530	217.06 Acquisition of control; change of key individual. (1) ACQUISITION
2531	2531	OF CONTROL. (a) Any person, or group of persons acting in concert, seeking to acquire
2532	2532	control of a licensee shall obtain the written approval of the division prior to
2533	2533	acquiring control. An individual is not deemed to acquire control of a licensee and
2534	2534	is not subject to the requirements under this subsection when that individual
2535	2535	becomes a key individual in the ordinary course of business.
2536	2536	(b) A person, or group of persons acting in concert, seeking to acquire control
2537	2537	of a licensee shall, in cooperation with the licensee, submit an application in a form
2538	2538	and manner prescribed by the division. The application shall include the
2539	2539	information required by s. 217.05 (4) for any new key individuals who have not
2540	2540	previously completed the requirements of s. 217.05 (4) for a licensee. Upon request,
2541	2541	the division may permit an applicant under this section to submit information
2542	2542	required in the application without using the nationwide multistate licensing
2543	2543	system and registry.
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2570	2570	SECTION 60 SENATE BILL 668
2571	2571	(c) When an application under this subsection appears to include all the items
2572	2572	and address all the matters that are required, the application is complete. The
2573	2573	division shall promptly notify the applicant in a record of the date on which the
2574	2574	application is determined to be complete.
2575	2575	(d) A determination by the division that an application is complete and is
2576	2576	accepted for processing means only that the application, on its face, appears to
2577	2577	include all the items and address all the matters that are required, and is not an
2578	2578	assessment of the substance of the application or of the sufficiency of the information
2579	2579	provided.
2580	2580	(e) When an application is filed and considered complete under this subsection,
2581	2581	the division shall investigate the financial condition and responsibility, financial and
2582	2582	business experience, character, and general fitness of the person, or group of persons
2583	2583	acting in concert, seeking to acquire control. If the applicant utilizes a multistate
2584	2584	licensing process, the division may accept the investigation results of another state.
2585	2585	(f) The division shall approve an acquisition of control under this subsection
2586	2586	if the division finds all of the following:
2587	2587	1. The applicant has satisfied all applicable requirements of this subsection.
2588	2588	2. The financial condition and responsibility, financial and business
2589	2589	experience, competence, character, and general fitness of the person, or group of
2590	2590	persons acting in concert, seeking to acquire control, and the competence,
2591	2591	experience, character, and general fitness of the key individuals and persons who
2592	2592	would be in control of the licensee after the acquisition of control, indicate that it is
2593	2593	in the interest of the public to permit the person, or group of persons acting in concert,
2594	2594	to control the licensee.
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2621	2621	SECTION 60
2622	2622	SENATE BILL 668
2623	2623	(g) The division shall approve or deny the application within 60 days after the
2624	2624	completion date. The division may for good cause extend the review period. Unless
2625	2625	the review period has been extended, an application that is not approved or denied
2626	2626	within 60 days after the completion date is deemed approved.
2627	2627	(h) The division shall issue a formal written notice of the denial of a license
2628	2628	application within 30 days of the decision to deny the application. The division shall
2629	2629	set forth in the notice of denial the specific reasons for the denial of the application.
2630	2630	An applicant whose application is denied by the division under this section may
2631	2631	request a hearing under s. 227.44 within 30 days after the date of denial. The
2632	2632	division may appoint a hearing examiner under s. 227.46 to conduct the hearing.
2633	2633	(i) The requirements of pars. (a) and (b) do not apply to any of the following:
2634	2634	1. A person who acts as a proxy for the sole purpose of voting at a designated
2635	2635	meeting of the shareholders or holders of voting shares or voting interests of a
2636	2636	licensee or a person in control of a licensee.
2637	2637	2. A person who acquires control of a licensee by devise or descent.
2638	2638	3. A person who acquires control of a licensee as a personal representative,
2639	2639	custodian, guardian, conservator, or trustee, or as an officer appointed by a court of
2640	2640	competent jurisdiction or by operation of law.
2641	2641	4. A person who is exempt under s. 217.03 (1) (g).
2642	2642	5. A person exempted from the requirements of this section by written
2643	2643	determination of the division, if the division finds this exemption to be in the public
2644	2644	interest.
2645	2645	6. A public offering of securities of a licensee or a person in control of a licensee.
2646	2646	7. An internal reorganization of a person in control of the licensee if the
2647	2647	ultimate person in control of the licensee remains the same.
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2674	2674	SECTION 60 SENATE BILL 668
2675	2675	8. A person who has complied with and received approval to engage in money
2676	2676	transmission under this chapter or was identified as a person in control in a prior
2677	2677	application filed with and approved by the division or by an MSB-accredited state
2678	2678	pursuant to a multistate licensing process, if all the following conditions are
2679	2679	satisfied:
2680	2680	a. The person has not had a license revoked or suspended, and has not
2681	2681	controlled a licensee that has had a license revoked or suspended while the person
2682	2682	was in control of the licensee, within the previous 5 years.
2683	2683	b. If the person is a licensee, the person is well-managed and received at least
2684	2684	a satisfactory rating for compliance at its most recent examination by an
2685	2685	MSB-accredited state, if a rating was given.
2686	2686	c. The licensee to be acquired and the person acquiring control, if the person
2687	2687	acquiring control is a licensee, are each projected to meet the requirements of s.
2688	2688	217.10 after the acquisition of control is completed.
2689	2689	d. The licensee to be acquired and the person acquiring control, if the person
2690	2690	acquiring control is a licensee, will not implement any material changes to their
2691	2691	respective business plans as a result of the acquisition of control.
2692	2692	e. The person acquiring control, in cooperation with the licensee, provides
2693	2693	notice of the acquisition and attests to the conditions of subd. 8. a. to d. in a form and
2694	2694	manner prescribed by the division. If the notice is not disapproved within 30 days
2695	2695	after the date on which the notice was determined by the division to be complete, the
2696	2696	notice is deemed approved.
2697	2697	(j) A person who is exempt from the requirements of pars. (a) and (b) pursuant
2698	2698	to par. (i) 2., 3., 4., 6., or 7. shall, in cooperation with the licensee, notify the division
2699	2699	within 15 days after the acquisition of control. Notice shall be provided by updating
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2727	2727	SECTION 60
2728	2728	SENATE BILL 668
2729	2729	the licensee's record through the nationwide multistate licensing system and
2730	2730	registry or in any other manner acceptable to the division.
2731	2731	(k) Before filing an application for approval to acquire control of a licensee, a
2732	2732	person may request in writing a determination from the division as to whether the
2733	2733	person would be considered a person in control of a licensee upon consummation of
2734	2734	a proposed transaction. If the division determines that the person would not be a
2735	2735	person in control of a licensee, the person is not subject to the requirements of pars.
2736	2736	(a) and (b).
2737	2737	(2) CHANGE OF KEY INDIVIDUALS. (a) Upon adding or replacing any key
2738	2738	individual, a licensee shall do all of the following:
2739	2739	1. No later than 15 days after the effective date of the key individual's
2740	2740	appointment, provide notice of the change in a manner acceptable to the division.
2741	2741	2. No later than 45 days after the effective date of the individual's appointment,
2742	2742	provide the information required by s. 217.05 (4).
2743	2743	(b) The division may issue a notice of disapproval of a key individual if it finds
2744	2744	that the competence, experience, character, or integrity of the individual indicates
2745	2745	that it is not in the interest of the public or the customers of the licensee to permit
2746	2746	the individual to be a key individual of the licensee. The notice of disapproval shall
2747	2747	contain a statement of the basis for disapproval. An applicant whose application is
2748	2748	denied by the division under this subsection may request a hearing under s. 227.44
2749	2749	within 30 days after the date of denial. The division may appoint a hearing examiner
2750	2750	under s. 227.46 to conduct the hearing.
2751	2751	(c) If the notice of the change is not disapproved within 90 days after the date
2752	2752	on which the requirements of par. (a) were determined to be complete, the key
2753	2753	individual is deemed approved.
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2780	2780	SECTION 60 SENATE BILL 668
2781	2781	217.07 Reporting and records. (1) REPORT OF CONDITION. Each licensee shall
2782	2782	submit a report of condition no later than 45 days after the end of each calendar
2783	2783	quarter, unless a longer period is authorized by the division. The report of condition
2784	2784	shall include all of the following:
2785	2785	(a) Financial information at the licensee level.
2786	2786	(b) Nationwide and state-specific money transmission transaction information
2787	2787	in every jurisdiction in the United States in which the licensee is licensed to engage
2788	2788	in money transmission.
2789	2789	(c) A permissible investments report.
2790	2790	(d) Transaction destination country reporting for money received for
2791	2791	transmission, if applicable. This requirement applies only to a report of condition
2792	2792	submitted within 45 days of the end of the 4th calendar quarter.
2793	2793	(e) Any other information the division reasonably requires with respect to the
2794	2794	licensee.
2795	2795	(2) AUDITED FINANCIALS. (a) Each licensee shall submit audited financial
2796	2796	information no later than 90 days after the end of each fiscal year, unless a longer
2797	2797	period is authorized by the division. The submission shall include an audited
2798	2798	financial statement of the licensee for the fiscal year prepared in accordance with
2799	2799	U.S. generally accepted accounting principles, together with any other information
2800	2800	the division may reasonably require with respect to the licensee.
2801	2801	(b) The audited financial statement shall be prepared by an independent
2802	2802	certified public accountant or independent public accountant satisfactory to the
2803	2803	division and shall be accompanied by a certificate of opinion that is satisfactory to
2804	2804	the division. If the certificate of opinion is qualified, the division may order the
2805	2805	licensee to take any action the division finds necessary to enable the independent
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2833	2833	SECTION 60
2834	2834	SENATE BILL 668
2835	2835	certified public accountant or independent public accountant to remove the
2836	2836	qualification.
2837	2837	(3) REPORT OF AUTHORIZED DELEGATES. Each licensee shall submit a report of
2838	2838	authorized delegates no later than 45 days after the end of each calendar quarter,
2839	2839	unless a longer period is authorized by the division. The report of authorized
2840	2840	delegates shall include all of the following, if applicable:
2841	2841	(a) Contact information for each authorized delegate of the licensee, including
2842	2842	each authorized delegate's legal name, any fictitious or trade name, employer
2843	2843	identification number, principal provider identifier, physical address, mailing
2844	2844	address, primary contact person, telephone number, email address, start date as the
2845	2845	licensee's authorized delegate, and end date, if any.
2846	2846	(b) Information concerning each authorized delegate's business in other states,
2847	2847	including whether any court or regulatory authority has prohibited the authorized
2848	2848	delegate from acting as an authorized delegate in any jurisdiction.
2849	2849	(c) Any other information the division reasonably requires with respect to the
2850	2850	licensee's authorized delegates.
2851	2851	(4) REPORTS OF CERTAIN EVENTS. (a) A licensee shall file a report with the division
2852	2852	within one business day after the licensee has reason to know of the occurrence of any
2853	2853	of the following events:
2854	2854	1. The filing of a petition by or against the licensee under the U.S. Bankruptcy
2855	2855	Code, 11 USC 101 to 110, for bankruptcy or reorganization.
2856	2856	2. The filing of a petition by or against the licensee for receivership, the
2857	2857	commencement of any other judicial or administrative proceeding for its dissolution
2858	2858	or reorganization, or the making of a general assignment for the benefit of its
2859	2859	creditors.
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2885	2885	ARG:wlj
2886	2886	SECTION 60 SENATE BILL 668
2887	2887	3. The commencement of a proceeding to revoke or suspend its license in a state
2888	2888	or country in which the licensee engages in business or is licensed.
2889	2889	(b) A licensee shall file a report with the division within 3 business days after
2890	2890	the licensee has reason to know that the licensee or a key individual, person in
2891	2891	control, or authorized delegate of the licensee has been charged with or convicted of
2892	2892	a felony.
2893	2893	(5) BANK SECRECY ACT REPORTS. A licensee and an authorized delegate shall
2894	2894	comply with all federal currency reporting, record keeping, and suspicious activity
2895	2895	reporting requirements as set forth in the Bank Secrecy Act and other federal and
2896	2896	state laws pertaining to money laundering.
2897	2897	(6) RECORDS. (a) A licensee shall maintain all of the following records for at least
2898	2898	3 years:
2899	2899	1. A record of each outstanding money transmission obligation sold.
2900	2900	2. A general ledger posted at least monthly containing all asset, liability,
2901	2901	capital, income, and expense accounts.
2902	2902	3. Bank statements and bank reconciliation records.
2903	2903	4. Records of outstanding money transmission obligations.
2904	2904	5. Records of each money transmission obligation paid within the 3-year
2905	2905	period.
2906	2906	6. A list of the last-known names and addresses of all the licensee's authorized
2907	2907	delegates.
2908	2908	7. Any other records the division requires to be maintained by order or rule.
2909	2909	(b) Upon written request of the division to inspect any record specified in par.
2910	2910	(a), the licensee shall promptly make the record available to the division. A licensee
2911	2911	shall maintain the records specified in par. (a) in a location and manner that ensures
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2936	2936	25 - 59 -2023 - 2024 Legislature
2937	2937	LRB-5025/1
2938	2938	ARG:wlj
2939	2939	SECTION 60
2940	2940	SENATE BILL 668
2941	2941	the licensee can make the records available to the division no later than 7 business
2942	2942	days after the division's written request.
2943	2943	217.08 Authorized delegates. (1) Before a licensee is authorized to conduct
2944	2944	business through an authorized delegate or allows a person to act as the licensee's
2945	2945	authorized delegate, the licensee shall do all of the following:
2946	2946	(a) Adopt, and update as necessary, written policies and procedures reasonably
2947	2947	designed to ensure that the licensee's authorized delegates comply with applicable
2948	2948	state and federal law.
2949	2949	(b) Conduct a reasonable risk-based background investigation sufficient for
2950	2950	the licensee to determine whether the authorized delegate has complied and will
2951	2951	likely comply with applicable state and federal law.
2952	2952	(c) Enter into a signed written agreement that does all of the following:
2953	2953	1. Appoints the authorized delegate for the licensee with the authority to
2954	2954	conduct money transmission on behalf of the licensee.
2955	2955	2. Sets forth the nature and scope of the relationship between the licensee and
2956	2956	the authorized delegate and the respective rights and responsibilities of the parties.
2957	2957	3. Requires the authorized delegate to fully comply with all applicable state and
2958	2958	federal laws, rules, and regulations pertaining to money transmission, including
2959	2959	relevant provisions of the Bank Secrecy Act and federal and state laws pertaining
2960	2960	to money laundering.
2961	2961	4. Requires the authorized delegate to remit and handle money and monetary
2962	2962	value in accordance with the terms of the agreement.
2963	2963	5. Imposes a trust for the benefit of the licensee on money and monetary value
2964	2964	net of fees received for money transmission.
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2966	2966	2
2967	2967	3
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2988	2988	24 - 60 -2023 - 2024 Legislature LRB-5025/1
2989	2989	ARG:wlj
2990	2990	SECTION 60 SENATE BILL 668
2991	2991	6. Requires the authorized delegate to prepare and maintain records as
2992	2992	required by this chapter and applicable rules.
2993	2993	7. States the authorized delegate's consent to examination or investigation by
2994	2994	the division.
2995	2995	8. States that the licensee is subject to regulation by the division, and that, as
2996	2996	part of that regulation, the division may suspend or revoke an authorized delegate
2997	2997	designation or require the licensee to terminate an authorized delegate designation.
2998	2998	9. Acknowledges the authorized delegate's receipt of the written policies and
2999	2999	procedures required under par. (a).
3000	3000	(2) An authorized delegate of a licensee holds in trust for the benefit of the
3001	3001	licensee all money net of fees received from money transmission. If any authorized
3002	3002	delegate commingles any funds received from money transmission with any other
3003	3003	funds or property owned or controlled by the authorized delegate, all commingled
3004	3004	funds and other property shall be considered held in trust in favor of the licensee in
3005	3005	an amount equal to the amount of money net of fees received from money
3006	3006	transmission.
3007	3007	(3) An authorized delegate may not use a subdelegate to conduct money
3008	3008	transmission on behalf of a licensee.
3009	3009	(4) A person shall not engage in the business of money transmission on behalf
3010	3010	of a person not licensed under this chapter or not exempt pursuant to s. 217.03. A
3011	3011	person violating this subsection shall be jointly and severally liable with the
3012	3012	unlicensed and nonexempt person for engaging in the business of money
3013	3013	transmission without a license.
3014	3014	(5) If a licensee's license is suspended, revoked, surrendered, or expired, the
3015	3015	licensee shall, within 5 business days, provide documentation to the division that the
3016	3016	1
3017	3017	2
3018	3018	3
3019	3019	4
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3040	3040	25 - 61 -2023 - 2024 Legislature
3041	3041	LRB-5025/1
3042	3042	ARG:wlj
3043	3043	SECTION 60
3044	3044	SENATE BILL 668
3045	3045	licensee has notified all applicable authorized delegates of the licensee of the
3046	3046	suspension, revocation, surrender, or expiration of the license. Upon receiving notice
3047	3047	of the suspension, revocation, surrender, or expiration of a license, an authorized
3048	3048	delegate shall immediately cease to provide money transmission as an authorized
3049	3049	delegate of the applicable licensee.
3050	3050	(6) The division may, by written order, suspend or revoke the designation of an
3051	3051	authorized delegate if the division finds any of the following:
3052	3052	(a) The authorized delegate failed to comply with an order of the division, any
3053	3053	provision of this chapter, any rule promulgated under this chapter, or any other state
3054	3054	or federal law applicable to money transmission.
3055	3055	(b) The authorized delegate failed to cooperate with an investigation,
3056	3056	examination, or other request for information by the division.
3057	3057	(c) The authorized delegate engaged in unsafe or unsound practices in
3058	3058	connection with the business of money transmission.
3059	3059	(d) The authorized delegate made a material misstatement, or knowingly
3060	3060	omitted a material fact, in an application for a license or in information furnished to
3061	3061	the division or the nationwide multistate licensing system and registry.
3062	3062	(e) The authorized delegate engaged in any fraudulent or deceptive conduct or
3063	3063	gross negligence relating to the business of money transmission.
3064	3064	(f) A federal or state administrative order has been entered against the
3065	3065	authorized delegate for violation of any rule or regulation applicable to the conduct
3066	3066	of the person's money transmission business.
3067	3067	(g) The financial responsibility, character, reputation, experience, and general
3068	3068	fitness of the authorized delegate indicate that it is not in the public interest to
3069	3069	permit the applicant or licensee to provide money transmission in this state.
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3094	3094	25 - 62 -2023 - 2024 Legislature LRB-5025/1
3095	3095	ARG:wlj
3096	3096	SECTION 60 SENATE BILL 668
3097	3097	217.09 Timely transmission; refunds; receipts and other disclosures.
3098	3098	(1) TIMELY TRANSMISSION. A licensee shall forward all money received for
3099	3099	transmission in accordance with the terms of the agreement between the licensee
3100	3100	and the sender, unless the licensee has a reasonable belief, or a reasonable basis to
3101	3101	believe, that the sender is a victim of fraud or that the transaction relates to a crime
3102	3102	or violation of law, rule, or regulation. If a licensee fails to forward money received
3103	3103	for transmission in accordance with this subsection, the licensee shall state the
3104	3104	reason for the failure in response to any inquiries by the sender unless providing the
3105	3105	response would violate applicable state or federal law.
3106	3106	(2) REFUNDS. (a) Except as provided in par. (b), a licensee shall refund to the
3107	3107	sender any money received for transmission within 10 days of receipt of the sender's
3108	3108	written request for a refund.
3109	3109	(b) Paragraph (a) does not apply if any of the following circumstances exist:
3110	3110	1. The money was forwarded within 10 days of the date on which the money
3111	3111	was received for transmission.
3112	3112	2. Instructions were given committing an equivalent amount of money to the
3113	3113	person designated by the sender within 10 days of the date on which the money was
3114	3114	received for transmission.
3115	3115	3. The agreement between the licensee and the sender instructs the licensee
3116	3116	to forward the money at a time that is beyond 10 days of the date on which the money
3117	3117	was received for transmission. If funds have not yet been forwarded in accordance
3118	3118	with the terms of the agreement between the licensee and the sender, the licensee
3119	3119	shall issue a refund in accordance with the other provisions of this section.
3120	3120	4. The refund request concerns a transaction that the licensee has not
3121	3121	completed because the licensee has a reasonable belief, or a reasonable basis to
3122	3122	1
3123	3123	2
3124	3124	3
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3146	3146	25 - 63 -2023 - 2024 Legislature
3147	3147	LRB-5025/1
3148	3148	ARG:wlj
3149	3149	SECTION 60
3150	3150	SENATE BILL 668
3151	3151	believe, that the sender is a victim of fraud or that the transaction relates to a crime
3152	3152	or violation of law, rule, or regulation.
3153	3153	5. The refund request does not include sufficient information to enable the
3154	3154	licensee to identify the sender or, in the event the sender has multiple transactions
3155	3155	outstanding, the particular transaction to be refunded.
3156	3156	6. The money received for transmission is subject to the federal remittance rule,
3157	3157	12 CFR 1005, subpart B.
3158	3158	7. The money was received for transmission pursuant to a written agreement
3159	3159	between the licensee and payee to process payments for goods or services provided
3160	3160	by the payee.
3161	3161	(3) RECEIPTS. (a) Except as provided in par. (b), a licensee or its authorized
3162	3162	delegate shall provide the sender a receipt for money received for transmission. The
3163	3163	receipt shall be in English and in the language principally used by the licensee or
3164	3164	authorized delegate to advertise, solicit, or negotiate transactions conducted in
3165	3165	person, electronically, or by phone, if other than English, and shall include all the
3166	3166	following information, as applicable:
3167	3167	1. The name of the sender.
3168	3168	2. The name of the designated recipient.
3169	3169	3. The date of the transaction.
3170	3170	4. The unique transaction or identification number.
3171	3171	5. The licensee's name, business address, and customer service telephone
3172	3172	number.
3173	3173	6. The amount of the transaction in U.S. dollars.
3174	3174	7. Any fee charged by the licensee to the sender for the transaction.
3175	3175	8. Any taxes collected by the licensee from the sender for the transaction.
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3177	3177	2
3178	3178	3
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3200	3200	25 - 64 -2023 - 2024 Legislature LRB-5025/1
3201	3201	ARG:wlj
3202	3202	SECTION 60 SENATE BILL 668
3203	3203	(b) Paragraph (a) does not apply if any of the following circumstances exist:
3204	3204	1. The money received for transmission is subject to the federal remittance rule,
3205	3205	12 CFR 1005, subpart B.
3206	3206	2. The money received for transmission is not primarily for personal, family,
3207	3207	or household purposes.
3208	3208	3. The money is received for transmission pursuant to a written agreement
3209	3209	between the licensee and payee to process payments for goods or services provided
3210	3210	by the payee.
3211	3211	4. The money is received for transmission in the performance of payroll
3212	3212	processing services.
3213	3213	(4) DISCLOSURES FOR PAYROLL PROCESSING SERVICES. A licensee that provides
3214	3214	payroll processing services shall make paystubs or equivalent documentation
3215	3215	available to employees and shall issue reports to clients detailing client payroll
3216	3216	obligations in advance of the payroll funds being deducted from an account. These
3217	3217	requirements do not apply if the licensee's client designates the intended recipients
3218	3218	to the licensee and is responsible for providing the disclosures required by this
3219	3219	paragraph.
3220	3220	217.10 Prudential standards. (1) NET WORTH. A licensee shall maintain at
3221	3221	all times a tangible net worth in excess of the greater of $100,000 or the sum of the
3222	3222	following: 3 percent of the licensee's first $100,000,000 in total assets, plus 2 percent
3223	3223	of any additional assets up to $1,000,000,000, plus 0.5 percent of any additional
3224	3224	assets over $1,000,000,000. The division may exempt an applicant or licensee from
3225	3225	this requirement, in whole or in part, if the division finds the exemption to be in the
3226	3226	public interest.
3227	3227	1
3228	3228	2
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3250	3250	24 - 65 -2023 - 2024 Legislature
3251	3251	LRB-5025/1
3252	3252	ARG:wlj
3253	3253	SECTION 60
3254	3254	SENATE BILL 668
3255	3255	(2) SURETY BOND. A licensee shall at all times maintain a surety bond or other
3256	3256	form of security acceptable to the division. The minimum required amount of the
3257	3257	security shall be the greater of $100,000 or an amount equal to 100 percent of the
3258	3258	licensee's average daily money transmission liability in this state calculated for the
3259	3259	most recently completed 3-month period, up to $500,000. A licensee that maintains
3260	3260	security of at least $500,000 is not required to calculate its average daily money
3261	3261	transmission liability in this state.
3262	3262	(3) PERMISSIBLE INVESTMENTS. (a) A licensee shall maintain at all times
3263	3263	permissible investments that have a market value computed in accordance with U.S.
3264	3264	generally accepted accounting principles of not less than the aggregate amount of all
3265	3265	of the licensee's outstanding money transmission obligations.
3266	3266	(b) The following are permissible investments for purposes of par. (a):
3267	3267	1. Cash, including demand deposits, savings deposits, and funds in such
3268	3268	accounts held for the benefit of the licensee's customers, maintained in a federally
3269	3269	insured depository financial institution.
3270	3270	2. Cash equivalents, including automated clearing house items in transit to the
3271	3271	licensee, automated clearing house items or international wires in transit to a payee,
3272	3272	cash in transit via armored car, cash in smart safes, cash in licensee-owned
3273	3273	locations, debit card or credit card-funded transmission receivables owed by any
3274	3274	bank, and money market mutual funds rated “AAA" by S&P, or the equivalent from
3275	3275	any eligible rating service.
3276	3276	3. Certificates of deposit or senior debt obligations of a federally insured
3277	3277	depository financial institution.
3278	3278	4. An obligation of the United States or a commission, agency , or
3279	3279	instrumentality thereof.
3280	3280	1
3281	3281	2
3282	3282	3
3283	3283	4
3284	3284	5
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3304	3304	25 - 66 -2023 - 2024 Legislature LRB-5025/1
3305	3305	ARG:wlj
3306	3306	SECTION 60 SENATE BILL 668
3307	3307	5. An obligation of a state or a governmental subdivision, agency, or
3308	3308	instrumentality thereof.
3309	3309	6. An obligation that is guaranteed fully as to principal and interest by the
3310	3310	United States.
3311	3311	7. The amount of the security provided under sub. (2) that exceeds the average
3312	3312	daily money transmission liability in this state.
3313	3313	8. The full drawable amount of a standby letter of credit that meets all the
3314	3314	following requirements:
3315	3315	a. It is irrevocable, unconditional, and unqualified.
3316	3316	b. It is issued by a federally insured depository financial institution; a foreign
3317	3317	bank authorized under federal law to maintain a federal agency or federal branch
3318	3318	office in a state; or a foreign bank that is authorized under the law of a state to
3319	3319	maintain a branch that is regulated, supervised, and examined by federal or state
3320	3320	authorities having regulatory authority over banks, credit unions, and trust
3321	3321	companies if the foreign bank or its parent company bears an eligible rating.
3322	3322	c. It identifies the division or its agent as the stated beneficiary.
3323	3323	d. It states an issue date and expiration date.
3324	3324	e. It automatically extends for one year, without a written amendment, upon
3325	3325	each expiration date unless the issuer of the letter of credit notifies the division at
3326	3326	least 60 days prior to any expiration date that the irrevocable letter of credit will not
3327	3327	be extended. Notice shall be provided by certified or registered mail or courier mail
3328	3328	or other receipted means.
3329	3329	f. It provides that the issuer of the letter of credit will honor, at sight, a
3330	3330	presentation made by the beneficiary to the issuer of the original letter of credit and
3331	3331	any amendments thereto.
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3333	3333	2
3334	3334	3
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3356	3356	25 - 67 -2023 - 2024 Legislature
3357	3357	LRB-5025/1
3358	3358	ARG:wlj
3359	3359	SECTION 60
3360	3360	SENATE BILL 668
3361	3361	g. It provides that the issuer of the letter of credit will honor, at sight, a written
3362	3362	statement by the beneficiary that a petition for bankruptcy, reorganization,
3363	3363	receivership, or dissolution has been filed by or against the licensee; the licensee's
3364	3364	assets have been seized pursuant to an emergency order issued on the ground that
3365	3365	the licensee is, or is at risk of becoming, insolvent; or the beneficiary has received
3366	3366	notice of expiration or nonextension of a letter of credit and the licensee failed to
3367	3367	demonstrate to the satisfaction of the beneficiary that the licensee will maintain the
3368	3368	minimum permissible investments required in par. (a) upon the expiration or
3369	3369	nonextension of the letter of credit.
3370	3370	h. It stipulates that the beneficiary may obtain funds up to the amount of the
3371	3371	letter of credit no later than 7 days after presenting a written statement by the
3372	3372	beneficiary that any of the events specified in subd. 8. g. has occurred.
3373	3373	i. It does not reference other agreements or provide for any security interest in
3374	3374	the licensee.
3375	3375	9. Receivables payable to a licensee from its authorized delegates in the
3376	3376	ordinary course of business that are less than 7 days old, subject to the following
3377	3377	limitations:
3378	3378	a. Receivables payable to a licensee from its authorized delegates may not
3379	3379	exceed 50 percent of the aggregate value of the licensee's total permissible
3380	3380	investments.
3381	3381	b. Receivables payable to a licensee from a single authorized delegate may not
3382	3382	exceed 10 percent of the aggregate value of the licensee's total permissible
3383	3383	investments.
3384	3384	10. a. Subject to the limitations in subd. 10. b., a short-term investment of 6
3385	3385	months or less that bears an eligible rating; commercial paper that bears an eligible
3386	3386	1
3387	3387	2
3388	3388	3
3389	3389	4
3390	3390	5
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3392	3392	7
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3411	3411	ARG:wlj
3412	3412	SECTION 60 SENATE BILL 668
3413	3413	rating; a bill, note, bond, or debenture that bears an eligible rating; a U.S. tri-party
3414	3414	repurchase agreement collateralized at 100 percent or more with federal government
3415	3415	or agency securities, municipal bonds, or other securities that bear an eligible rating;
3416	3416	a money market mutual fund rated less than “AAA" and equal to or higher than “A-"
3417	3417	by S&P, or the equivalent from any other eligible rating service; or a mutual fund or
3418	3418	other investment fund composed exclusively of the investments listed in subds. 1. to
3419	3419	6.
3420	3420	b. The investments specified in subd. 10. a. may not in the aggregate exceed 50
3421	3421	percent of the aggregate value of the licensee's total permissible investments. No
3422	3422	single category of investment under subd. 10. a. may exceed 20 percent of the
3423	3423	aggregate value of the licensee's total permissible investments. The division may
3424	3424	limit the extent to which a specific investment maintained by a licensee within a
3425	3425	class of permissible investments may be considered a permissible investment.
3426	3426	11. Cash, including demand deposits, savings deposits, and funds in such
3427	3427	accounts held for the benefit of the licensee's customers, maintained at a foreign
3428	3428	depository institution, subject to the following limitations:
3429	3429	a. The licensee must have obtained at least a satisfactory rating in its most
3430	3430	recent examination under this chapter.
3431	3431	b. The foreign depository institution must bear an eligible rating, be registered
3432	3432	under the Foreign Account Tax Compliance Act, and not be located in a country that
3433	3433	is subject to sanctions from the office of foreign assets control in the U.S. treasury
3434	3434	department or designated a high-risk or noncooperative jurisdiction by the
3435	3435	Financial Action Task Force established at the G7 summit in Paris on July 14, 1989.
3436	3436	c. Cash maintained at a foreign depository institution may not exceed 10
3437	3437	percent of the aggregate value of the licensee's total permissible investments.
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3464	3464	ARG:wlj
3465	3465	SECTION 60
3466	3466	SENATE BILL 668
3467	3467	12. Any other investment authorized as a permissible investment by rule or
3468	3468	written determination of the division.
3469	3469	(c) Permissible investments, even if commingled with other assets of the
3470	3470	licensee, are held in trust for the benefit of the purchasers and holders of the
3471	3471	licensee's outstanding money transmission obligations on an equitable basis in the
3472	3472	event of insolvency, the filing of a petition by or against the licensee for bankruptcy
3473	3473	or reorganization, the filing of a petition by or against the licensee for receivership,
3474	3474	the commencement of any other judicial or administrative proceeding for the
3475	3475	licensee's dissolution or reorganization, or an action by a creditor against the licensee
3476	3476	who is not a beneficiary of the trust. Permissible investments held in trust pursuant
3477	3477	to this section are not subject to attachment, levy of execution, or sequestration,
3478	3478	except for a beneficiary of the trust. Any statutory trust established hereunder shall
3479	3479	be terminated upon extinguishment of all the licensee's outstanding money
3480	3480	transmission obligations.
3481	3481	(d) Following the issuance of a notice of expiration or nonextension of a letter
3482	3482	of credit under par. (b) 8. e., and no later than 15 days prior to the expiration date
3483	3483	of the letter of credit, the licensee shall demonstrate to the satisfaction of the division
3484	3484	that the licensee will continue to comply with sub. (1) after the letter of credit expires.
3485	3485	If the licensee fails to do so, the division may draw on the letter of credit up to an
3486	3486	amount necessary to meet the licensee's requirements under sub. (1), which shall be
3487	3487	offset against the licensee's outstanding money transmission obligations. The drawn
3488	3488	funds shall be held in trust by the division or its agent for the benefit of the
3489	3489	purchasers and holders of the licensee's outstanding money transmission
3490	3490	obligations.
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3515	3515	ARG:wlj
3516	3516	SECTION 60 SENATE BILL 668
3517	3517	217.11 Powers of the division. In addition to the powers granted in other
3518	3518	sections of this chapter or other applicable law, the division may do any of the
3519	3519	following:
3520	3520	(1) Investigate, at any time, the business and examine the books, accounts,
3521	3521	records, and files used in the business of every licensee or authorized delegate of a
3522	3522	licensee. The cost of each examination shall be paid by each licensee so examined
3523	3523	within 30 days after demand by the division.
3524	3524	(2) Issue subpoenas and take testimony of any person in relation to any matter
3525	3525	within the division's powers and require the person to produce records regarding any
3526	3526	matter related to the condition or business of a person engaged in activity regulated
3527	3527	under this chapter.
3528	3528	(3) Require any person to provide written reports or answers to questions, in
3529	3529	a form and manner acceptable to the division, concerning any matter related to the
3530	3530	condition or business of a person engaged in activity regulated under this chapter.
3531	3531	(4) Use, contract for, or employ analytical systems, methods, or software to
3532	3532	examine or investigate any person subject to this chapter.
3533	3533	(5) Accept an audit report made by an independent certified public accountant
3534	3534	or other qualified 3rd-party auditor for an applicant or licensee and incorporate the
3535	3535	audit report in any report of examination or investigation.
3536	3536	(6) Promulgate rules or issue orders to administer, enforce, or carry out the
3537	3537	purposes of this chapter, including such rules or orders as may be necessary to protect
3538	3538	the public from oppressive or deceptive practices of licensees and to prevent evasions
3539	3539	of this chapter.
3540	3540	(7) Take possession of any insolvent licensee under the circumstances and
3541	3541	utilizing the procedures prescribed in s. 218.04 (9m), so far as applicable.
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3567	3567	LRB-5025/1
3568	3568	ARG:wlj
3569	3569	SECTION 60
3570	3570	SENATE BILL 668
3571	3571	(8) Enter into a consent order at any time with a person to resolve a matter
3572	3572	arising under this chapter or any rule promulgated under this chapter.
3573	3573	SECTION 61. 218.0101 (24m) and (37m) of the statutes are created to read:
3574	3574	218.0101 (24m) “Nationwide multistate licensing system and registry" has the
3575	3575	meaning given in s. 224.35 (1g) (b).
3576	3576	(37m) “Unique identifier" has the meaning given in s. 224.35 (1g) (e).
3577	3577	SECTION 62. 218.0111 (2) of the statutes is amended to read:
3578	3578	218.0111 (2) Either licensor under sub. (1) shall, upon request, furnish the
3579	3579	other licensor with any information it may have, including such information as may
3580	3580	be available to the division of banking through the nationwide multistate licensing
3581	3581	system and registry, in respect to any licensee or applicant for license or any
3582	3582	transaction in which such a licensee or applicant may be a party or be interested.
3583	3583	No license shall be issued under s. 218.0114 (14) (a) and (g) until both licensors have
3584	3584	approved the application. The suspension or revocation of either the license issued
3585	3585	under s. 218.0114 (14) (a) or (g) shall automatically suspend or revoke the other
3586	3586	license. Any suspension or revocation shall be certified by the licensor ordering it to
3587	3587	the other licensor.
3588	3588	SECTION 63. 218.0114 (4) of the statutes is renumbered 218.0114 (4) (a) and
3589	3589	amended to read:
3590	3590	218.0114 (4) (a) Application for a license under this section shall be made to
3591	3591	the licensor, at such time, in such form and with such information as the licensor
3592	3592	shall require and shall be accompanied by the required fees. The division of banking
3593	3593	shall utilize the nationwide multistate licensing system and registry, and the
3594	3594	provisions of s. 224.35 shall apply, with respect to sales finance company applicants
3595	3595	and licensees, other than motor vehicle dealers.
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3621	3621	ARG:wlj
3622	3622	SECTION 63 SENATE BILL 668
3623	3623	(b) An applicant for a sales finance company license, other than a motor vehicle
3624	3624	dealer, shall pay to the division of banking a nonrefundable $300 investigation fee
3625	3625	in addition to the license fee under sub. (16). If the cost of an investigation exceeds
3626	3626	$300, the applicant shall, upon demand of the division of banking, pay the amount
3627	3627	by which the cost of the investigation exceeds the nonrefundable fee. A licensee is
3628	3628	not required to pay an investigation fee for the renewal of a license.
3629	3629	(c) The licensor may require the applicant to provide information relating to
3630	3630	any pertinent matter that is commensurate with the safeguarding of the public
3631	3631	interest in the locality in which the applicant proposes to engage in business, except
3632	3632	that information relating to the applicant's solvency and financial standing may not
3633	3633	be required for motor vehicle dealers except as provided in sub. (20) (a). The
3634	3634	information provided may be considered by the licensor in determining the fitness
3635	3635	of the applicant to engage in business as set forth in ss. 218.0101 to 218.0163.
3636	3636	SECTION 64. 218.0114 (4g) and (4m) of the statutes are created to read:
3637	3637	218.0114 (4g) A sales finance company, other than a motor vehicle dealer, shall
3638	3638	keep current and accurate all material information on file with the division of
3639	3639	banking and the nationwide multistate licensing system and registry as provided in
3640	3640	s. 224.35 (6).
3641	3641	(4m) A sales finance company, other than a motor vehicle dealer, shall submit
3642	3642	financial statements as provided in s. 224.35 (8).
3643	3643	SECTION 65. 218.0114 (5) (b) of the statutes is amended to read:
3644	3644	218.0114 (5) (b) A sales finance company or an applicant for a sales finance
3645	3645	company license shall provide and maintain in force a bond or irrevocable letter of
3646	3646	credit of in a form acceptable to the division of banking in an amount that is not less
3647	3647	than $25,000 issued by a surety company licensed to do business in this state or a
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3673	3673	LRB-5025/1
3674	3674	ARG:wlj
3675	3675	SECTION 65
3676	3676	SENATE BILL 668
3677	3677	federally insured financial institution, as defined in s. 705.01 (3). The bond or letter
3678	3678	of credit shall be payable to the state of Wisconsin for the use of the state and of any
3679	3679	person who sustains a loss because of an act of a sales finance company that
3680	3680	constitutes grounds for the suspension or revocation of a license under ss. 218.0101
3681	3681	to 218.0163.
3682	3682	SECTION 66. 218.0114 (13) (a) of the statutes is amended to read:
3683	3683	218.0114 (13) (a) Licenses A license described in sub. (16) expire expires on
3684	3684	December 31 of the calendar year for which the licenses are granted in which the
3685	3685	initial license term began, unless the initial license date is between November 1 and
3686	3686	December 31, in which instance the initial license term shall run through December
3687	3687	31 of the following year. A license may be renewed or reinstated as provided in s.
3688	3688	224.35 (7).
3689	3689	SECTION 67. 218.0114 (17) of the statutes is renumbered 218.0114 (17) (a) and
3690	3690	amended to read:
3691	3691	218.0114 (17) (a) The licenses of dealers, manufacturers, factory branches,
3692	3692	distributors, and distributor branches and sales finance companies shall specify the
3693	3693	location of the office or branch and must be conspicuously displayed at that location.
3694	3694	In case the location of the office or branch is changed, the licensor shall endorse the
3695	3695	change of location on the license, without charge, if the new location is within the
3696	3696	same municipality as the previous location. A change of location to another
3697	3697	municipality shall require a new license, except for sales finance companies.
3698	3698	SECTION 68. 218.0114 (17) (b) of the statutes is created to read:
3699	3699	218.0114 (17) (b) A sales finance company, other than a motor vehicle dealer,
3700	3700	shall give written notice to the division of banking, in a form and manner acceptable
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3725	3725	ARG:wlj
3726	3726	SECTION 68 SENATE BILL 668
3727	3727	to the division of banking, within 10 days of any change of location of the office or
3728	3728	branch specified in the license.
3729	3729	SECTION 69. 218.0114 (20) (c) of the statutes is amended to read:
3730	3730	218.0114 (20) (c) An applicant or licensee furnishing information under par. (a)
3731	3731	may designate the information as a trade secret, as defined in s. 134.90 (1) (c), or as
3732	3732	confidential business information. The licensor shall notify the applicant or licensee
3733	3733	providing the information 15 days before any information designated as a trade
3734	3734	secret or as confidential business information is disclosed to the legislature, a state
3735	3735	agency, as defined in s. 13.62 (2), a local governmental unit, as defined in s. 605.01
3736	3736	(1), or any other person. The applicant or licensee furnishing the information may
3737	3737	seek a court order limiting or prohibiting the disclosure, in which case the court shall
3738	3738	weigh the need for confidentiality of the information against the public interest in
3739	3739	the disclosure. A designation under this paragraph does not prohibit the disclosure
3740	3740	of a person's name or address, of the name or address of a person's employer or of
3741	3741	financial information that relates to a person when requested under s. 49.22 (2m) by
3742	3742	the department of children and families or a county child support agency under s.
3743	3743	59.53 (5). A designation under this paragraph does not prohibit the disclosure of
3744	3744	sales finance company application information to the nationwide multistate
3745	3745	licensing system and registry, but, except as provided in s. 224.35 (4) (b) and (c), this
3746	3746	information shall remain confidential and is not subject to public copying or
3747	3747	inspection under s. 19.35 (1).
3748	3748	SECTION 70. 218.0114 (21g) (b) 3. of the statutes is created to read:
3749	3749	218.0114 (21g) (b) 3. The division of banking may disclose information to the
3750	3750	nationwide multistate licensing system and registry as provided in s. 224.35.
3751	3751	SECTION 71. 218.0114 (25) of the statutes is created to read:
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3777	3777	LRB-5025/1
3778	3778	ARG:wlj
3779	3779	SECTION 71
3780	3780	SENATE BILL 668
3781	3781	218.0114 (25) A sales finance company, other than a motor vehicle dealer, shall
3782	3782	register with, and maintain a valid unique identifier issued by, the nationwide
3783	3783	multistate licensing system and registry.
3784	3784	SECTION 72. 218.0116 (1) (am) of the statutes is amended to read:
3785	3785	218.0116 (1) (am) Material Making a material misstatement, or knowingly
3786	3786	omitting a material fact, in an application for a license or, in the case of a sales finance
3787	3787	company other than a motor vehicle dealer, in information furnished to the
3788	3788	nationwide multistate licensing system and registry.
3789	3789	SECTION 73. 218.0161 (title) of the statutes is amended to read:
3790	3790	218.0161 (title) Penalties; reporting violations.
3791	3791	SECTION 74. 218.0161 of the statutes is renumbered 218.0161 (1).
3792	3792	SECTION 75. 218.0161 (2) of the statutes is created to read:
3793	3793	218.0161 (2) The division of banking may report any enforcement action, any
3794	3794	violation of this chapter or of an administrative rule or order, or other relevant
3795	3795	information to the nationwide multistate licensing system and registry. Except as
3796	3796	provided in s. 224.35 (4) (b) and (c), these reports to the nationwide multistate
3797	3797	licensing system and registry shall be confidential and are not subject to public
3798	3798	copying or inspection under s. 19.35 (1).
3799	3799	SECTION 76. 218.0162 of the statutes is amended to read:
3800	3800	218.0162 Commencement of action. Upon the request of the licensor, the
3801	3801	department of justice or the district attorney may commence an action in the name
3802	3802	of the state to recover a forfeiture under s. 218.0161. An action under s. 218.0161 (1)
3803	3803	shall be commenced within 3 years after the occurrence of the unlawful act or
3804	3804	practice which is the subject of the action.
3805	3805	SECTION 77. 218.02 (1) (e) and (f) of the statutes are created to read:
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3831	3831	ARG:wlj
3832	3832	SECTION 77 SENATE BILL 668
3833	3833	218.02 (1) (e) “Nationwide multistate licensing system and registry” has the
3834	3834	meaning given in s. 224.35 (1g) (b).
3835	3835	(f) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).
3836	3836	SECTION 78. 218.02 (2) (a) 1. (intro.) of the statutes is amended to read:
3837	3837	218.02 (2) (a) 1. (intro.) Each adjustment service company shall apply to the
3838	3838	division for a license to engage in such business. Application for a separate license
3839	3839	for each office of a company to be operated under this section shall be made to the
3840	3840	division in writing, under oath, in a form to be prescribed by and manner acceptable
3841	3841	to the division. The division may issue more than one license to the same licensee.
3842	3842	Except as provided in subd. 3., an application for a license under this section shall
3843	3843	include the following:
3844	3844	SECTION 79. 218.02 (2) (a) 2. c. of the statutes is created to read:
3845	3845	218.02 (2) (a) 2. c. The division may disclose information to the nationwide
3846	3846	multistate licensing system and registry as provided in s. 224.35.
3847	3847	SECTION 80. 218.02 (2) (d), (e) and (f) of the statutes are created to read:
3848	3848	218.02 (2) (d) The division shall utilize the nationwide multistate licensing
3849	3849	system and registry, and the provisions of s. 224.35 shall apply, with respect to
3850	3850	applicants and licensees under this section.
3851	3851	(e) An applicant or licensee under this section shall register with, and maintain
3852	3852	a valid unique identifier issued by, the nationwide multistate licensing system and
3853	3853	registry.
3854	3854	(f) Each licensee shall keep current and accurate all material information on
3855	3855	file with the division and the nationwide multistate licensing system and registry as
3856	3856	provided in s. 224.35 (6).
3857	3857	SECTION 81. 218.02 (5) (a) and (b) of the statutes are amended to read:
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3883	3883	LRB-5025/1
3884	3884	ARG:wlj
3885	3885	SECTION 81
3886	3886	SENATE BILL 668
3887	3887	218.02 (5) (a) Every A license issued shall state the address of the office at
3888	3888	which the business is to be conducted, the name of the licensee, and if the licensee
3889	3889	is a partnership, limited liability company or association, the names of the members
3890	3890	thereof, and if a corporation the date and place of its incorporation. Such license shall
3891	3891	be kept conspicuously posted in the office of the licensee and under this section shall
3892	3892	not be transferable or assignable.
3893	3893	(b) Whenever a licensee shall contemplate a change of the licensee's place of
3894	3894	business to another location within the same city, village, or town, the licensee shall
3895	3895	give written notice thereof to the division, in a form and manner acceptable to the
3896	3896	division, which shall attach to the license the division's authorization of such
3897	3897	removal, specifying the date thereof and the new location. Such authorization shall
3898	3898	be authority for the operation of such business under the same license at the specified
3899	3899	new location. No change in the place of business of a licensee to a location outside
3900	3900	of the original city, village, or town shall be permitted under the same license. If so
3901	3901	directed by the division, the licensee shall provide any notice required under this
3902	3902	subsection to the nationwide multistate licensing system and registry as provided in
3903	3903	s. 224.35.
3904	3904	SECTION 82. 218.02 (5) (c) of the statutes is repealed and recreated to read:
3905	3905	218.02 (5) (c) A license issued under this section expires on December 31 of the
3906	3906	calendar year in which the initial license term began, unless the initial license date
3907	3907	is between November 1 and December 31, in which instance the initial license term
3908	3908	shall run through December 31 of the following year. A license may be renewed or
3909	3909	reinstated as provided in s. 224.35 (7).
3910	3910	SECTION 83. 218.02 (6) (a) (intro.) of the statutes is amended to read:
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3935	3935	ARG:wlj
3936	3936	SECTION 83 SENATE BILL 668
3937	3937	218.02 (6) (a) (intro.) The division, after complaint, notice and hearings as
3938	3938	provided in s. 217.19 hearing, shall revoke any license in the following cases:
3939	3939	SECTION 84. 218.02 (6) (a) 1. of the statutes is amended to read:
3940	3940	218.02 (6) (a) 1. If the licensee has failed to pay the annual license fee or to
3941	3941	maintain in effect the bond required under the provisions of this section;
3942	3942	SECTION 85. 218.02 (6) (a) 5. of the statutes is created to read:
3943	3943	218.02 (6) (a) 5. If the licensee made a material misstatement, or knowingly
3944	3944	omitted a material fact, in an application for a license or in information furnished to
3945	3945	the division or the nationwide multistate licensing system and registry.
3946	3946	SECTION 86. 218.02 (9) (title) of the statutes is amended to read:
3947	3947	218.02 (9) (title) RULES AND REPORTS; FEES; ENFORCEMENT; REPORTING VIOLATIONS.
3948	3948	SECTION 87. 218.02 (9) (a) (intro.) of the statutes is amended to read:
3949	3949	218.02 (9) (a) (intro.) A licensee shall make an annual report and submit
3950	3950	financial statements as provided in s. 224.35 (8). The division may make such rules
3951	3951	and require such further reports as the division deems necessary for the enforcement
3952	3952	of this section. Sections 217.17, 217.18 and 217.21 (1) and (2) The licensee shall keep
3953	3953	such books and records as will enable the division to determine whether licensees are
3954	3954	in compliance with this section and any rules or orders issued thereunder. The
3955	3955	powers granted under s. 217.11 apply to and are available for the purposes of this
3956	3956	section. This paragraph does not apply to any of the following:
3957	3957	SECTION 88. 218.02 (9) (c) of the statutes is amended to read:
3958	3958	218.02 (9) (c) The division shall investigate, ascertain and determine whether
3959	3959	this chapter or the lawful orders issued hereunder are being violated and for such
3960	3960	purposes the division shall have all of the powers conferred by ss. 217.17 and 217.18
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3986	3986	ARG:wlj
3987	3987	SECTION 88
3988	3988	SENATE BILL 668
3989	3989	granted under s. 217.11. The division shall report all violations to the district
3990	3990	attorney of the proper county for prosecution.
3991	3991	SECTION 89. 218.02 (9) (d) of the statutes is created to read:
3992	3992	218.02 (9) (d) The division may report any enforcement action, any violation
3993	3993	of this section or of an administrative rule or order, or other relevant information to
3994	3994	the nationwide multistate licensing system and registry. Except as provided in s.
3995	3995	224.35 (4) (b) and (c), these reports to the nationwide multistate licensing system and
3996	3996	registry shall be confidential and are not subject to public copying or inspection
3997	3997	under s. 19.35 (1).
3998	3998	SECTION 90. 218.04 (1) (a) of the statutes is amended to read:
3999	3999	218.04 (1) (a) “Collection agency" means any person engaging in the business
4000	4000	of collecting or receiving for payment for others of any account, bill, or other
4001	4001	indebtedness. “Collection agency" does not include attorneys at law authorized to
4002	4002	practice in this state and resident herein, banks, express companies, credit unions,
4003	4003	health care billing companies, state savings banks, state savings and loan
4004	4004	associations, insurers and their agents, trust companies, mortgage bankers licensed
4005	4005	and operating under subch. III of ch. 224, district attorneys acting under s. 971.41,
4006	4006	persons contracting with district attorneys under s. 971.41 (5), real estate brokers,
4007	4007	and real estate salespersons.
4008	4008	SECTION 91. 218.04 (1) (b) of the statutes is renumbered 218.04 (1) (b) (intro.)
4009	4009	and amended to read:
4010	4010	218.04 (1) (b) (intro.) “Collector" or “solicitor" means any person employed by
4011	4011	a collection agency to collect or receive payment or to solicit the receiving or collecting
4012	4012	of payment who, on behalf of a collection agency licensed under this section, does any
4013	4013	of the following:
4014	4014	1
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4039	4039	ARG:wlj
4040	4040	SECTION 91 SENATE BILL 668
4041	4041	1. Collects, or attempts to collect, for others of any account, bill, or other
4042	4042	indebtedness outside of the office or the person's home.
4043	4043	SECTION 92. 218.04 (1) (b) 2. and 3. of the statutes are created to read:
4044	4044	218.04 (1) (b) 2. Receives payment for others of any account, bill, or other
4045	4045	indebtedness.
4046	4046	3. Solicits any account, bill, or other indebtedness for collection by the collection
4047	4047	agency.
4048	4048	SECTION 93. 218.04 (1) (em) and (h) of the statutes are created to read:
4049	4049	218.04 (1) (em) “Nationwide multistate licensing system and registry” has the
4050	4050	meaning given in s. 224.35 (1g) (b).
4051	4051	(h) “Unique identifier" has the meaning given in s. 224.35 (1g) (e).
4052	4052	SECTION 94. 218.04 (2) (a) and (b) of the statutes are amended to read:
4053	4053	218.04 (2) (a) Except as provided in par. (b), a person may not operate as a
4054	4054	collection agency or as a collector or solicitor in this state without first having
4055	4055	obtained a license as required by this section.
4056	4056	(b) A nonresident of this state is not required to obtain a collection agency
4057	4057	license if that person conducts collection business agency activity with state
4058	4058	residents solely by means of interstate telecommunications or interstate mail.
4059	4059	SECTION 95. 218.04 (3) (a) 1. (intro.) of the statutes is amended to read:
4060	4060	218.04 (3) (a) 1. (intro.) Application for licenses under the provisions of this
4061	4061	section shall be made to the division in writing, under oath, on a form to be prescribed
4062	4062	by in a form and manner acceptable to the division. All licenses shall expire on June
4063	4063	30 next following their date of issue. Except as provided in subd. 3., an application
4064	4064	for a license under this section shall include the following:
4065	4065	SECTION 96. 218.04 (3) (a) 1g., 1m. and 1r. of the statutes are created to read:
4066	4066	1
4067	4067	2
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4091	4091	LRB-5025/1
4092	4092	ARG:wlj
4093	4093	SECTION 96
4094	4094	SENATE BILL 668
4095	4095	218.04 (3) (a) 1g. The division shall utilize the nationwide multistate licensing
4096	4096	system and registry, and the provisions of s. 224.35 shall apply, with respect to
4097	4097	applicants and licensees under this section.
4098	4098	1m. An applicant or licensee under this section shall register with, and
4099	4099	maintain a valid unique identifier issued by, the nationwide multistate licensing
4100	4100	system and registry.
4101	4101	1r. Each licensee shall keep current and accurate all material information on
4102	4102	file with the division and the nationwide multistate licensing system and registry as
4103	4103	provided in s. 224.35 (6).
4104	4104	SECTION 97. 218.04 (3) (a) 2. c. of the statutes is created to read:
4105	4105	218.04 (3) (a) 2. c. The division may disclose information to the nationwide
4106	4106	multistate licensing system and registry as provided in s. 224.35.
4107	4107	SECTION 98. 218.04 (3) (b) of the statutes is amended to read:
4108	4108	218.04 (3) (b) At the time of making application, every applicant for a collection
4109	4109	agency license shall pay a nonrefundable fee of $1,000 to the division for
4110	4110	investigating the application, unless the applicant is already licensed under this
4111	4111	section, and the sum of $200 as an annual license fee for each place of business that
4112	4112	is required to be separately licensed under sub. (4) (a). If the cost of investigation
4113	4113	exceeds $1,000, the applicant shall, upon demand of the division, pay the excess cost.
4114	4114	No investigation fee is required on the renewal of a license.
4115	4115	SECTION 99. 218.04 (3) (c) of the statutes is repealed.
4116	4116	SECTION 100. 218.04 (4) (a) of the statutes is amended to read:
4117	4117	218.04 (4) (a) Except as provided in par. (am), upon the filing of such a license
4118	4118	application and the payment of such fee the applicable fees, the division shall make
4119	4119	an investigation, and if the division finds that the character and general fitness and
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4145	4145	ARG:wlj
4146	4146	SECTION 100 SENATE BILL 668
4147	4147	the financial responsibility of the applicant, and the members thereof if the applicant
4148	4148	is a partnership, limited liability company or association, and the officers and
4149	4149	directors thereof if the applicant is a corporation, warrant the belief that the business
4150	4150	will be operated in compliance with this section the division shall thereupon issue
4151	4151	a license to said the applicant. Such A license is not assignable and, except as
4152	4152	provided in par. (ap), shall permit operation under it only at or from the location
4153	4153	specified in the license, except that an employee of a licensed collection agency may
4154	4154	work from the employee's home if the employee complies with all of the same
4155	4155	requirements under this section and the division's rules that would apply if the
4156	4156	employee were working within the licensed office and except that a licensed collector
4157	4157	or solicitor may work outside the licensed office of a collection agency. A nonresident
4158	4158	of this state may, upon complying with all other provisions of this section, secure a
4159	4159	collection agency license provided the nonresident maintains an active office in this
4160	4160	state. Except as provided in par. (ap), a separate license is required for each place
4161	4161	of business maintained by the licensee from which the licensee or its collectors or
4162	4162	solicitors engage in the business of collecting or receiving payments for others of any
4163	4163	account, bill, or other indebtedness of a person located in this state.
4164	4164	SECTION 101. 218.04 (4) (am) 1. of the statutes is amended to read:
4165	4165	218.04 (4) (am) 1. The applicant fails to provide any application information
4166	4166	required under sub. (3) (a) 1. by the division.
4167	4167	SECTION 102. 218.04 (4) (ap) and (c) of the statutes are created to read:
4168	4168	218.04 (4) (ap) An employee of a licensed collection agency may work from the
4169	4169	employee's residence. An employee's resident address may not be presented to the
4170	4170	public as a location or office of the collection agency, through advertising or other
4171	4171	means of communication. No physical records of the collection agency may be
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4196	4196	25 - 83 -2023 - 2024 Legislature
4197	4197	LRB-5025/1
4198	4198	ARG:wlj
4199	4199	SECTION 102
4200	4200	SENATE BILL 668
4201	4201	maintained at an employee's residence. A separate license under par. (4) (a) is not
4202	4202	required for a residence that meets the requirements of this paragraph.
4203	4203	(c) If an applicant fails to complete the application for an initial license within
4204	4204	60 days after the division provides written notice of the incomplete application, the
4205	4205	application is considered abandoned and the investigation fee shall not be refunded.
4206	4206	An applicant whose application is abandoned under this paragraph may reapply to
4207	4207	obtain a new license.
4208	4208	SECTION 103. 218.04 (5) (a) (intro.), 1., 2., 3. and 4. of the statutes are amended
4209	4209	to read:
4210	4210	218.04 (5) (a) (intro.) The division may suspend or revoke any license issued
4211	4211	under this section if the division finds that any of the following applies:
4212	4212	1. The licensee has violated any of the provisions of this section, rules
4213	4213	promulgated under this section, or any lawful order of the division made thereunder;
4214	4214	under this section.
4215	4215	2. Any fact or condition exists which, if it had existed at the time of the original
4216	4216	application for such the license, would have warranted the division in refusing to
4217	4217	issue such the license;.
4218	4218	3. The licensee has failed to pay the annual license fee or to maintain in effect
4219	4219	the bond required under sub. (3) (d);.
4220	4220	4. The licensee has failed to remit money due to any and all claimants or
4221	4221	forwarders within 30 days from on or before the last day of the month following the
4222	4222	close of the month during which the collection was effected; or.
4223	4223	SECTION 104. 218.04 (5) (a) 6. of the statutes is created to read:
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4247	4247	ARG:wlj
4248	4248	SECTION 104 SENATE BILL 668
4249	4249	218.04 (5) (a) 6. The licensee has made a material misstatement, or knowingly
4250	4250	omitted a material fact, in an application for a license or in information furnished to
4251	4251	the division or the nationwide multistate licensing system and registry.
4252	4252	SECTION 105. 218.04 (5) (c) of the statutes is amended to read:
4253	4253	218.04 (5) (c) In the event of the death of a licensee, if the licensee is an
4254	4254	individual, or of the partners, if the licensee is a partnership who is a sole proprietor,
4255	4255	the license of the agency shall terminate as of the date of death of said the licensee,
4256	4256	except the division may reinstate a license if the estate of the former licensee signifies
4257	4257	to the division within 45 days its intention to continue the business of the agency.
4258	4258	SECTION 106. 218.04 (6) (title) of the statutes is amended to read:
4259	4259	218.04 (6) (title) LICENSES; POSTING; CHANGES OF LOCATION; RENEWAL;
4260	4260	DISCONTINUED OPERATIONS.
4261	4261	SECTION 107. 218.04 (6) (a) of the statutes is repealed and recreated to read:
4262	4262	218.04 (6) (a) If a licensee intends to change the address of its place of business
4263	4263	to another location, the licensee shall give written notice of the change, in a form and
4264	4264	manner prescribed by the division, at least 30 days prior to the relocation.
4265	4265	SECTION 108. 218.04 (6) (b) of the statutes is amended to read:
4266	4266	218.04 (6) (b) Every licensee applying for a renewal of a license shall, on or
4267	4267	before the first day of June, pay in advance to the division the annual license fee. A
4268	4268	license may be renewed or reinstated as provided in s. 224.35 (7). A license that is
4269	4269	not renewed or reinstated by the end of the reinstatement period provided in s.
4270	4270	224.35 (7) shall be deemed to have expired on December 31 of the year immediately
4271	4271	preceding the reinstatement period, unless the initial license date is between
4272	4272	November 1 and December 31, in which instance the initial license term shall run
4273	4273	through December 31 of the following year.
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4300	4300	ARG:wlj
4301	4301	SECTION 109
4302	4302	SENATE BILL 668
4303	4303	SECTION 109. 218.04 (6) (c) (intro.) and 2. of the statutes are amended to read:
4304	4304	218.04 (6) (c) (intro.) Before discontinuing operating as a collection agency
4305	4305	under the provisions of this section, every licensee shall furnish the division with
4306	4306	proof in a form to be determined by the division and approved by the advisory
4307	4307	committee that all of the following are satisfied:
4308	4308	2. All Wisconsin client accounts have been returned to the claimants or
4309	4309	forwarders.
4310	4310	SECTION 110. 218.04 (7) (title) of the statutes is amended to read:
4311	4311	218.04 (7) (title) POWERS OF DIVISION; ADVISORY COMMITTEES .
4312	4312	SECTION 111. 218.04 (7) (a) of the statutes is amended to read:
4313	4313	218.04 (7) (a) To issue any general or special order in execution of or
4314	4314	supplementary to this chapter, including such orders as may be necessary to protect
4315	4315	the public from oppressive or deceptive practices of licensees and to prevent evasions
4316	4316	of this chapter.
4317	4317	SECTION 112. 218.04 (8) of the statutes is repealed.
4318	4318	SECTION 113. 218.04 (9) of the statutes is created to read:
4319	4319	218.04 (9) COLLECTORS AND SOLICITORS; ALIASES; UNSIGNED NOTICES. (a) A
4320	4320	collection agency is responsible for, and shall supervise the acts of, its collectors and
4321	4321	solicitors and any other person who otherwise acts on behalf of the collection agency.
4322	4322	(b) In any oral or written communication with a debtor, any collector or solicitor
4323	4323	may use a separate alias. This alias shall include a first and last name. No collector
4324	4324	or solicitor may have more than one alias. A collector or solicitor may not change an
4325	4325	alias unless for good cause and the division is first notified of the change. Collectors
4326	4326	or solicitors employed by a licensee may not use the same alias.
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4351	4351	ARG:wlj
4352	4352	SECTION 113 SENATE BILL 668
4353	4353	(c) A licensee may forward printed collection notices to a debtor that are
4354	4354	unsigned.
4355	4355	SECTION 114. 218.04 (9g) (c) of the statutes is amended to read:
4356	4356	218.04 (9g) (c) Promptly Within 48 hours after collection, a licensee shall
4357	4357	deposit and maintain in the trust account sufficient funds to pay all money due any
4358	4358	claimant or forwarder. A licensee may not use the trust account for any other
4359	4359	purpose.
4360	4360	SECTION 115. 218.04 (9m) (e) of the statutes is amended to read:
4361	4361	218.04 (9m) (e) The division shall cause notice to be given by publication of a
4362	4362	class 3 notice, under ch. 985, if no action has been commenced under par. (f), calling
4363	4363	on all persons who may have claims against such licensee, to present the same to the
4364	4364	division, and make legal proof thereof at a place and within a time, to be therein
4365	4365	specified. The division may mail a similar notice to all persons whose names appear
4366	4366	as claimants or forwarders upon the books and records of the licensee or as may
4367	4367	appear in the records of the division on the sworn reports required to be furnished
4368	4368	the division according to the provisions of sub. (10). Any claimant or forwarder whose
4369	4369	portion of the collection or collections has not been properly remitted shall file a claim
4370	4370	which shall be considered as a preferred claim for the amount actually due the
4371	4371	claimant or forwarder after deducting any commission or fee that may be due and
4372	4372	owing the licensee. If the division doubts the justice and validity of any claim, the
4373	4373	division may reject the same and serve notice of such rejection upon the claimant
4374	4374	either by mail or personally. An affidavit of the service of such notice, which shall
4375	4375	be prima facie evidence thereof, shall be filed with the division. An action upon a
4376	4376	claim so rejected must be brought in the circuit court for the county wherein the
4377	4377	licensee is located within 30 days after such service of such notice of rejection of claim
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4402	4402	25 - 87 -2023 - 2024 Legislature
4403	4403	LRB-5025/1
4404	4404	ARG:wlj
4405	4405	SECTION 115
4406	4406	SENATE BILL 668
4407	4407	has been filed. Claims presented after the expiration of the time fixed in the notice
4408	4408	to the claimants or forwarders shall be entitled to receive only liquidating dividends
4409	4409	declared after presentation, unless otherwise ordered by the court. The court may
4410	4410	fix a date after which all claims shall be barred.
4411	4411	SECTION 116. 218.04 (10) (a) of the statutes is repealed and recreated to read:
4412	4412	218.04 (10) (a) A licensee shall make an annual report and submit financial
4413	4413	statements as provided in s. 224.35 (8).
4414	4414	SECTION 117. 218.04 (10) (b) of the statutes is amended to read:
4415	4415	218.04 (10) (b) The division shall require the licensee to keep such books and
4416	4416	records in the licensee's place of business as will enable the division to determine
4417	4417	whether the provisions of this section are being complied with. Every such licensee
4418	4418	shall preserve the records of final entry used in such business for a period of at least
4419	4419	6 years after final remittance is made on any account placed with the licensee for
4420	4420	collection or after any account has been returned to the claimant on which one or
4421	4421	more payments have been paid.
4422	4422	SECTION 118. 218.04 (13) (title) of the statutes is amended to read:
4423	4423	218.04 (13) (title) ENFORCEMENT; REPORTING VIOLATIONS.
4424	4424	SECTION 119. 218.04 (13) of the statutes is renumbered 218.04 (13) (a) and
4425	4425	amended to read:
4426	4426	218.04 (13) (a) The division shall have the duty, power, jurisdiction and
4427	4427	authority to investigate, ascertain and determine whether this section or the lawful
4428	4428	orders issued hereunder are being violated and for such purposes the division shall
4429	4429	have all the powers conferred by subs. (4) and (5). The If warranted, the division shall
4430	4430	report all violations to the district attorney of the proper county for prosecution.
4431	4431	SECTION 120. 218.04 (13) (b) of the statutes is created to read:
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4457	4457	ARG:wlj
4458	4458	SECTION 120 SENATE BILL 668
4459	4459	218.04 (13) (b) The division may report any enforcement action, any violation
4460	4460	of this section or of an administrative rule or order, or other relevant information to
4461	4461	the nationwide multistate licensing system and registry. Except as provided in s.
4462	4462	224.35 (4) (b) and (c), these reports to the nationwide multistate licensing system and
4463	4463	registry shall be confidential and are not subject to public copying or inspection
4464	4464	under s. 19.35 (1).
4465	4465	SECTION 121. 218.05 (1) (e) and (f) of the statutes are created to read:
4466	4466	218.05 (1) (e) “Nationwide multistate licensing system and registry” has the
4467	4467	meaning given in s. 224.35 (1g) (b).
4468	4468	(f) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).
4469	4469	SECTION 122. 218.05 (3) (a) 2. of the statutes is amended to read:
4470	4470	218.05 (3) (a) 2. The county and municipality, with street and number, if any,
4471	4471	where the community currency exchange is to be conducted; and
4472	4472	SECTION 123. 218.05 (3) (am) 2. c. of the statutes is created to read:
4473	4473	218.05 (3) (am) 2. c. The division may disclose information to the nationwide
4474	4474	multistate licensing system and registry as provided in s. 224.35.
4475	4475	SECTION 124. 218.05 (3) (c) of the statutes is amended to read:
4476	4476	218.05 (3) (c) Before any license is issued to a community currency exchange
4477	4477	the applicant shall file annually with and have approved by the division a surety
4478	4478	bond in a form acceptable to the division in the principal sum of $5,000, issued by an
4479	4479	insurer authorized to do business in this state. The bond shall run to the state of
4480	4480	Wisconsin and shall be for the benefit of any creditors of the community currency
4481	4481	exchange for any liability incurred for any sum due to any payee of any check, draft
4482	4482	or money order left with the community currency exchange for collection, and also
4483	4483	for any penalties that may be imposed under this section. If the division finds at any
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4509	4509	LRB-5025/1
4510	4510	ARG:wlj
4511	4511	SECTION 124
4512	4512	SENATE BILL 668
4513	4513	time the bond is insecure or exhausted or otherwise doubtful, an additional bond in
4514	4514	like amount to be approved by the division shall be filed by the licensee within 30
4515	4515	days after written demand by the division.
4516	4516	SECTION 125. 218.05 (3) (d), (e) and (f) of the statutes are created to read:
4517	4517	218.05 (3) (d) The division shall utilize the nationwide multistate licensing
4518	4518	system and registry, and the provisions of s. 224.35 shall apply, with respect to
4519	4519	applicants and licensees under this section.
4520	4520	(e) An applicant or licensee under this section shall register with, and maintain
4521	4521	a valid unique identifier issued by, the nationwide multistate licensing system and
4522	4522	registry.
4523	4523	(f) Each licensee shall keep current and accurate all material information on
4524	4524	file with the division and the nationwide multistate licensing system and registry as
4525	4525	provided in s. 224.35 (6).
4526	4526	SECTION 126. 218.05 (10) (a) and (c) of the statutes are amended to read:
4527	4527	218.05 (10) (a) Such The license shall state the name of the licensee and the
4528	4528	address at which the business is to be conducted. Such The license shall be kept
4529	4529	conspicuously posted in the place of business of the licensee and shall not be
4530	4530	transferable or assignable.
4531	4531	(c) Whenever a licensee shall wish to change the licensee's place of business to
4532	4532	any location other than that originally set forth in the license, the licensee shall give
4533	4533	written notice thereof to the division and if the change is approved the division shall
4534	4534	attach to the license, in writing, a rider stating the new address or location of the
4535	4535	community currency exchange in a form and manner acceptable to the division. If
4536	4536	so directed by the division, the licensee shall provide any notice required under this
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4561	4561	ARG:wlj
4562	4562	SECTION 126 SENATE BILL 668
4563	4563	subsection to the nationwide multistate licensing system and registry as provided in
4564	4564	s. 224.35.
4565	4565	SECTION 127. 218.05 (11) (intro.) of the statutes is amended to read:
4566	4566	218.05 (11) RENEWAL LICENSE EXPIRATION; RENEWAL; REINSTATEMENT . (intro.)
4567	4567	Every licensee shall, on or before December 20, pay to the division the sum of $300
4568	4568	as an A license expires annually on December 31 of the calendar year in which the
4569	4569	initial license term began, unless the initial license date is between November 1 and
4570	4570	December 31, in which instance the initial license term shall run through December
4571	4571	31 of the following year. The annual license fee for the next succeeding calendar year
4572	4572	and, at the same time, shall file with the division is $300 and shall be paid to the
4573	4573	division in a form and manner acceptable to the division, together with the annual
4574	4574	bond and insurance policy or policies in the same amount and of the same character
4575	4575	as required by subs. (3) (c) and (6). Licenses may be renewed and reinstated as
4576	4576	provided in s. 224.35 (7). The division may not renew a license under this section if
4577	4577	any of the following applies:
4578	4578	SECTION 128. 218.05 (12) (title) of the statutes is amended to read:
4579	4579	218.05 (12) (title) REVOCATION; RESTRICTION AND SUSPENSION; REPORTING
4580	4580	VIOLATIONS.
4581	4581	SECTION 129. 218.05 (12) (a) 1. of the statutes is amended to read:
4582	4582	218.05 (12) (a) 1. The licensee has failed to pay the annual license fee or to
4583	4583	maintain in effect the required bond or insurance policy or policies or to comply with
4584	4584	any order, decision or finding of the division made pursuant to this section.
4585	4585	SECTION 130. 218.05 (12) (a) 4. of the statutes is created to read:
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4609	4609	LRB-5025/1
4610	4610	ARG:wlj
4611	4611	SECTION 130
4612	4612	SENATE BILL 668
4613	4613	218.05 (12) (a) 4. The licensee made a material misstatement, or knowingly
4614	4614	omitted a material fact, in an application for a license or in information furnished to
4615	4615	the division or the nationwide multistate licensing system and registry.
4616	4616	SECTION 131. 218.05 (12) (f) of the statutes is created to read:
4617	4617	218.05 (12) (f) The division may report any enforcement action, any violation
4618	4618	of this section or of an administrative rule or order, or other relevant information to
4619	4619	the nationwide multistate licensing system and registry. Except as provided in s.
4620	4620	224.35 (4) (b) and (c), these reports to the nationwide multistate licensing system and
4621	4621	registry shall be confidential and are not subject to public copying or inspection
4622	4622	under s. 19.35 (1).
4623	4623	SECTION 132. 218.05 (14) (a) of the statutes is repealed and recreated to read:
4624	4624	218.05 (14) (a) A licensee shall make an annual report and submit financial
4625	4625	statements as provided in s. 224.35 (8).
4626	4626	SECTION 133. 220.02 (2) (c) of the statutes is amended to read:
4627	4627	220.02 (2) (c) Sellers of checks Money transmitters under ch. 217.
4628	4628	SECTION 134. 220.02 (3) of the statutes is amended to read:
4629	4629	220.02 (3) It is the intent of sub. (2) to give the division jurisdiction to enforce
4630	4630	and carry out all laws relating to banks or banking in this state, including those
4631	4631	relating to state banks, savings banks, savings and loan associations, and trust
4632	4632	company banks, and also all laws relating to small loan companies or other loan
4633	4633	companies or agencies, finance companies, insurance premium finance companies,
4634	4634	motor vehicle dealers, adjustment service companies, community currency
4635	4635	exchanges, mortgage bankers, mortgage loan originators, mortgage brokers, and
4636	4636	collection agencies and those relating to sellers of checks money transmitters under
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4661	4661	ARG:wlj
4662	4662	SECTION 134 SENATE BILL 668
4663	4663	ch. 217, whether doing business as corporations, individuals, or otherwise, but to
4664	4664	exclude laws relating to credit unions.
4665	4665	SECTION 135. 220.06 (1m) of the statutes is amended to read:
4666	4666	220.06 (1m) No division employee may examine a bank or licensee in which
4667	4667	that person is interested as a stockholder, officer, or employee. No division employee
4668	4668	may examine a bank or licensee located in the same village, city, or county with any
4669	4669	bank or licensee in which that person is so interested. Employees in the division, and
4670	4670	each member and employee of the banking institutions review board, shall keep
4671	4671	secret all facts and information obtained in the course of examinations or from
4672	4672	reports not under s. 221.1002 (1) filed by a bank or licensee with the division, except
4673	4673	so far as the public duty of the person requires reporting upon or taking special action
4674	4674	regarding the affairs of any bank or licensee, and except when called as a witness in
4675	4675	any criminal proceeding or trial in a court of justice. The division may furnish to the
4676	4676	federal deposit insurance corporation, to a federal home loan bank, or to any
4677	4677	regulatory authority for state or federal financial institutions, insurance, or
4678	4678	securities, or to any organization the membership of which is made up of regulatory
4679	4679	authorities for state or federal financial institutions, insurance, or securities, a copy
4680	4680	of any examination made of any such bank or licensee or of any report made by such
4681	4681	bank or licensee and may give access to and disclose to the corporation or, to any
4682	4682	regulatory authority for state or federal financial institutions, insurance, or
4683	4683	securities, or to any organization the membership of which is made up of regulatory
4684	4684	authorities for state or federal financial institutions, insurance, or securities, any
4685	4685	information possessed by the division, or to a federal home loan bank any
4686	4686	information created by the division, with reference to the conditions or affairs of any
4687	4687	such insured bank or licensee if the regulatory authority agrees to treat all
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4713	4713	LRB-5025/1
4714	4714	ARG:wlj
4715	4715	SECTION 135
4716	4716	SENATE BILL 668
4717	4717	information received with the same degree of confidentiality as applies to reports of
4718	4718	examination that are in the custody of the division.
4719	4719	SECTION 136. 224.35 (1g) of the statutes is created to read:
4720	4720	224.35 (1g) DEFINITIONS. In this section:
4721	4721	(a) “Division” means the division of banking.
4722	4722	(b) “Nationwide multistate licensing system and registry" means the
4723	4723	multistate system developed by the Conference of State Bank Supervisors and the
4724	4724	American Association of Residential Mortgage Regulators and owned and operated
4725	4725	by the State Regulatory Registry, LLC, or any successor or affiliate entity, for the
4726	4726	licensing and registration of persons in financial services industries.
4727	4727	(c) “Reinstatement period” means the period beginning on the first day of
4728	4728	January and ending on the last day of February of the year following the expiration
4729	4729	of a license, or such other period prescribed by the division.
4730	4730	(d) “Renewal period” means the period beginning on November 1 and ending
4731	4731	on December 31, or such other period prescribed by the division.
4732	4732	(e) “Unique identifier" means a number or other identifier assigned by
4733	4733	protocols established by the nationwide multistate licensing system and registry.
4734	4734	SECTION 137. 224.35 (1m) (bm) of the statutes is created to read:
4735	4735	224.35 (1m) (bm) The division may require an applicant or licensee, or an
4736	4736	individual with the power to direct the management or policies of the applicant or
4737	4737	licensee, to submit an independent credit report from a consumer reporting agency,
4738	4738	an investigative background report prepared by an independent search firm,
4739	4739	fingerprints, or any other personal or professional history information deemed
4740	4740	necessary by the division. The division may require fingerprints for the purposes of
4741	4741	identifying the individual and to determine whether the individual has a record of
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4767	4767	ARG:wlj
4768	4768	SECTION 137 SENATE BILL 668
4769	4769	warrants, arrests, or convictions in any jurisdiction. Fingerprints may be submitted,
4770	4770	directly or as provided in s. 224.35 (2), to the federal bureau of investigation and any
4771	4771	government agency or entity authorized to receive this information for a state and
4772	4772	national criminal history record check.
4773	4773	SECTION 138. 224.35 (1r), (6), (7) and (8) of the statutes are created to read:
4774	4774	224.35 (1r) APPLICABLE LICENSED ACTIVITIES. The division shall utilize the
4775	4775	nationwide multistate licensing system and registry, as provided in this section, with
4776	4776	respect to applicants and licensees under ss. 138.09, 138.12, 138.14, 217.05, 218.0114
4777	4777	except for motor vehicle dealers within the meaning of s. 218.0101 (23), 218.02,
4778	4778	218.04, 218.05, 224.72, and 224.725 and with respect to applicants and registrants
4779	4779	under s. 224.722.
4780	4780	(6) CHANGES TO INFORMATION. A licensee shall keep current and accurate all
4781	4781	material information on file with the division and the nationwide multistate
4782	4782	licensing system and registry. If the information changes in any material respect,
4783	4783	the licensee must notify the division and the nationwide multistate licensing system
4784	4784	of the change within 10 days after the change.
4785	4785	(7) LICENSE RENEWAL AND REINSTATEMENT. (a) During the renewal period, a
4786	4786	licensee may renew a license by submitting all of the following through the
4787	4787	nationwide multistate licensing system and registry or in such other manner as
4788	4788	directed by the division:
4789	4789	1. A renewal application, in a form and manner acceptable to the division.
4790	4790	2. The annual fee required to maintain the license, if applicable.
4791	4791	3. The bond or insurance information required to maintain the license, if
4792	4792	applicable.
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4819	4819	SECTION 138
4820	4820	SENATE BILL 668
4821	4821	4. Certification of the completion of continuing education courses required to
4822	4822	maintain the license, if applicable.
4823	4823	(b) During the reinstatement period, a licensee may reinstate a license by
4824	4824	submitting all the items in par. (a) 1. to 4., plus an additional nonrefundable fee of
4825	4825	$100, through the nationwide multistate licensing system and registry or in such
4826	4826	other manner as directed by the division.
4827	4827	(c) After the reinstatement period, an expired license may not be reinstated.
4828	4828	(d) The division may deny an application to renew a license if any fact or
4829	4829	condition exists that would warrant revocation or suspension of the license.
4830	4830	(e) The renewal term is for a period of one year, beginning January 1 of each
4831	4831	year after the initial term.
4832	4832	(8) ANNUAL REPORTS AND FINANCIAL STATEMENTS. (a) Applicability. Paragraphs
4833	4833	(b) and (c) apply to licensees under ss. 138.09, 138.12, 138.14, 218.02, 218.04, and
4834	4834	218.05. Licensees under s. 218.0114, except for motor vehicle dealers within the
4835	4835	meaning of s. 218.0101 (23), must submit financial statements under par. (c), but
4836	4836	they are not required to submit annual reports under par. (b).
4837	4837	(b) Annual reports. Each licensee shall annually, on or before March 31, submit
4838	4838	through the nationwide multistate licensing system and registry or in such other
4839	4839	manner as directed by the division, a report giving such reasonable and relevant
4840	4840	information as the division may require concerning the business transacted by the
4841	4841	licensee. This report shall be made in the form and manner prescribed by the
4842	4842	division.
4843	4843	(c) Financial statements. Each licensee shall annually, no later than 90 days
4844	4844	following the end of its most recently completed fiscal year, submit through the
4845	4845	nationwide multistate licensing system and registry or in such other manner as
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4871	4871	ARG:wlj
4872	4872	SECTION 138 SENATE BILL 668
4873	4873	directed by the division, a copy of the licensee's financial statements for that fiscal
4874	4874	year. The financial statements shall include a balance sheet and income statement
4875	4875	and shall be prepared in accordance with generally accepted accounting principles.
4876	4876	SECTION 139. 224.71 (7) of the statutes is amended to read:
4877	4877	224.71 (7) “Nationwide mortgage multistate licensing system and registry"
4878	4878	means the licensing and registration system developed and maintained by the
4879	4879	Conference of State Bank Supervisors and the American Association of Residential
4880	4880	Mortgage Regulators for licensed mortgage loan originators and mortgage loan
4881	4881	originators exempt from licensing under s. 224.725 (1m) or, if this system is no longer
4882	4882	maintained, any system established by the secretary of the federal department of
4883	4883	housing and urban development under P.L. 110-289, Title V, section 1509 has the
4884	4884	meaning given in s. 224.35 (1g) (b).
4885	4885	SECTION 140. 224.71 (13g) (b) of the statutes is amended to read:
4886	4886	224.71 (13g) (b) Registered with, and who maintains a unique identifier
4887	4887	through, the nationwide mortgage multistate licensing system and registry.
4888	4888	SECTION 141. 224.71 (18) of the statutes is amended to read:
4889	4889	224.71 (18) “Unique identifier" means a number or other identifier assigned
4890	4890	by protocols established by the nationwide mortgage licensing system and registry
4891	4891	has the meaning given in s. 224.35 (1g) (e).
4892	4892	SECTION 142. 224.72 (2) (am) of the statutes is amended to read:
4893	4893	224.72 (2) (am) Applicants for a mortgage banker or mortgage broker license
4894	4894	shall apply to the division, on forms and in the manner prescribed by the division,
4895	4895	and shall pay the fee specified in rules promulgated under sub. (8). The division shall
4896	4896	utilize the nationwide multistate licensing system and registry, and the provisions
4897	4897	of s. 224.35 shall apply, with respect to mortgage bankers and mortgage brokers.
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4922	4922	25 - 97 -2023 - 2024 Legislature
4923	4923	LRB-5025/1
4924	4924	ARG:wlj
4925	4925	SECTION 142
4926	4926	SENATE BILL 668
4927	4927	Forms prescribed by the division under this paragraph may contain any content or
4928	4928	requirement that the division, in its discretion, determines necessary and these
4929	4929	forms may be modified or updated as necessary by the division to carry out the
4930	4930	purposes of this subchapter.
4931	4931	SECTION 143. 224.72 (2) (c) 2. c. of the statutes is created to read:
4932	4932	224.72 (2) (c) 2. c. The division may disclose information to the nationwide
4933	4933	multistate licensing system and registry as provided in s. 224.35.
4934	4934	SECTION 144. 224.72 (7) (title) of the statutes is amended to read:
4935	4935	224.72 (7) (title) LICENSE RENEWAL AND REINSTATEMENT .
4936	4936	SECTION 145. 224.72 (7) (am) of the statutes is renumbered 224.72 (7) and
4937	4937	amended to read:
4938	4938	224.72 (7) A mortgage broker or mortgage banker may apply to renew or
4939	4939	reinstate a license issued under this section by timely submitting, on forms and in
4940	4940	the manner prescribed by the division, a completed renewal application and all
4941	4941	required renewal fees. The division may not renew a license issued under this section
4942	4942	unless the division finds that the mortgage broker or mortgage banker continues to
4943	4943	meet the minimum standards for license issuance under this section as provided in
4944	4944	s. 224.35 (7).
4945	4945	SECTION 146. 224.72 (7) (bm) of the statutes is repealed.
4946	4946	SECTION 147. 224.725 (1) of the statutes is amended to read:
4947	4947	224.725 (1) LICENSE REQUIRED. Except as provided in subs. (1m) and (1r), an
4948	4948	individual may not regularly engage in the business of a mortgage loan originator
4949	4949	with respect to a residential mortgage loan, or use the title “mortgage loan
4950	4950	originator," advertise, or otherwise portray himself or herself as a mortgage loan
4951	4951	originator in this state, unless the individual has been issued by the division, and
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4977	4977	ARG:wlj
4978	4978	SECTION 147 SENATE BILL 668
4979	4979	thereafter maintains, a license under this section. Each licensed mortgage loan
4980	4980	originator shall register with, and maintain a valid unique identifier issued by, the
4981	4981	nationwide mortgage multistate licensing system and registry.
4982	4982	SECTION 148. 224.725 (1r) (a) 5. of the statutes is amended to read:
4983	4983	224.725 (1r) (a) 5. The individual was registered with the nationwide mortgage
4984	4984	multistate licensing system and registry as a loan originator during the one-year
4985	4985	period immediately preceding the date on which the individual furnished the
4986	4986	information required under sub. (2) (c).
4987	4987	SECTION 149. 224.725 (1r) (c) 1. of the statutes is amended to read:
4988	4988	224.725 (1r) (c) 1. The period during which an individual described in par. (a)
4989	4989	or (b) is considered to have temporary authority to act as a mortgage loan originator
4990	4990	under this subchapter shall begin on the date on which the individual furnishes to
4991	4991	the nationwide mortgage multistate licensing system and registry the information
4992	4992	required under sub. (2) (c) in connection with the application for a mortgage loan
4993	4993	originator license under this subchapter.
4994	4994	SECTION 150. 224.725 (1r) (c) 2. d. of the statutes is amended to read:
4995	4995	224.725 (1r) (c) 2. d. If the individual's application is listed on the nationwide
4996	4996	mortgage multistate licensing system and registry as incomplete, the date that is 120
4997	4997	days after the date on which the individual applied for a mortgage loan originator
4998	4998	license.
4999	4999	SECTION 151. 224.725 (2) (a) of the statutes is amended to read:
5000	5000	224.725 (2) (a) Applicants for a mortgage loan originator license shall apply to
5001	5001	the division, on forms and in the manner prescribed by the division, and shall pay
5002	5002	the fee specified in rules promulgated under sub. (8). The division shall require
5003	5003	utilize the nationwide multistate licensing system and registry, and the provisions
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5029	5029	LRB-5025/1
5030	5030	ARG:wlj
5031	5031	SECTION 151
5032	5032	SENATE BILL 668
5033	5033	of s. 224.35 shall apply, with respect to mortgage loan originators to be licensed and
5034	5034	registered through the nationwide mortgage licensing system and registry. Forms
5035	5035	prescribed by the division under this paragraph may contain any content or
5036	5036	requirement that the division, in its discretion, determines necessary and these
5037	5037	forms may be modified or updated as necessary by the division to carry out the
5038	5038	purposes of this subchapter.
5039	5039	SECTION 152. 224.725 (2) (b) 1. c. of the statutes is created to read:
5040	5040	224.725 (2) (b) 1. c. The division may disclose information to the nationwide
5041	5041	multistate licensing system and registry as provided in s. 224.35.
5042	5042	SECTION 153. 224.725 (2) (c) (intro.) and 2. (intro.) of the statutes are amended
5043	5043	to read:
5044	5044	224.725 (2) (c) (intro.) Any applicant for a license under this section shall
5045	5045	furnish to the nationwide mortgage multistate licensing system and registry
5046	5046	information concerning the applicant's identity, including all of the following:
5047	5047	2. (intro.) Personal history and experience in a form prescribed by the
5048	5048	nationwide mortgage multistate licensing system and registry, including the
5049	5049	submission of authorization for the nationwide mortgage multistate licensing
5050	5050	system and registry and the division to obtain all of the following:
5051	5051	SECTION 154. 224.725 (5) (title) of the statutes is amended to read:
5052	5052	224.725 (5) (title) LICENSE RENEWAL AND REINSTATEMENT .
5053	5053	SECTION 155. 224.725 (5) (a) (intro.) of the statutes is renumbered 224.725 (5)
5054	5054	and amended to read:
5055	5055	224.725 (5) A mortgage loan originator may apply to renew or reinstate a
5056	5056	license issued under this section by timely submitting, on forms and in the manner
5057	5057	prescribed by the division, a completed renewal application and all required renewal
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5083	5083	ARG:wlj
5084	5084	SECTION 155 SENATE BILL 668
5085	5085	fees. The division may not renew a license issued under this section unless the
5086	5086	division finds that all of the following apply: as provided in s. 224.35 (7).
5087	5087	SECTION 156. 224.725 (5) (a) 1. and 2. of the statutes are repealed.
5088	5088	SECTION 157. 224.725 (5) (b) of the statutes is repealed.
5089	5089	SECTION 158. 224.728 (title) of the statutes is renumbered 224.35 (title) and
5090	5090	amended to read:
5091	5091	224.35 (title) Nationwide mortgage multistate licensing system and
5092	5092	registry and cooperative arrangements.
5093	5093	SECTION 159. 224.728 (1) of the statutes is renumbered 224.35 (1m) and
5094	5094	amended to read:
5095	5095	224.35 (1m) PARTICIPATION. (a) The division shall participate in the nationwide
5096	5096	mortgage multistate licensing system and registry. The division may establish
5097	5097	relationships or contracts with the nationwide mortgage multistate licensing system
5098	5098	and registry or other entities designated by the nationwide mortgage multistate
5099	5099	licensing system and registry to collect and maintain records and process transaction
5100	5100	fees or other fees related to licensees under this subchapter persons holding licenses
5101	5101	identified in sub. (1r). With respect to any form, fee, or other information related to
5102	5102	the initial issuance, transition, or renewal of a mortgage loan originator license
5103	5103	under this subchapter license identified in sub. (1r), the division may require that
5104	5104	any applicant submit such form, fee, or other information directly to the nationwide
5105	5105	mortgage multistate licensing system and registry and may authorize the
5106	5106	nationwide mortgage multistate licensing system and registry to perform any
5107	5107	function under this subchapter subch. III or s. 138.09, 138.12, 138.14, 218.0101 to
5108	5108	218.0163, 218.02, 218.04, 218.05, or ch. 217 related to the licensing of mortgage loan
5109	5109	originators in this state any person with respect to a license identified in sub. (1r).
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5136	5136	ARG:wlj
5137	5137	SECTION 159
5138	5138	SENATE BILL 668
5139	5139	(b) The division may require an applicant or licensee to provide, and may
5140	5140	provide to the nationwide mortgage multistate licensing system and registry, any
5141	5141	information relating to an applicant for initial issuance or renewal of a mortgage loan
5142	5142	originator license identified in sub. (1r) that the division and the nationwide
5143	5143	mortgage multistate licensing system and registry determine to be relevant to the
5144	5144	application or to any mortgage loan originator responsibility administered or
5145	5145	conducted through the nationwide mortgage multistate licensing system and
5146	5146	registry related to the licensed activity.
5147	5147	(c) The division may rely on the nationwide mortgage multistate licensing
5148	5148	system and registry to establish any dates relating to application or reporting
5149	5149	deadlines for mortgage loan originators persons holding or applying for licenses
5150	5150	identified in sub. (1r), to establish requirements for amending or surrendering
5151	5151	mortgage loan originator licenses identified in sub. (1r), or to establish any other
5152	5152	requirements applicable to mortgage loan originators licensed under this
5153	5153	subchapter persons holding licenses identified in sub. (1r) to the extent the
5154	5154	requirements are a condition of the state's participation in the nationwide mortgage
5155	5155	multistate licensing system and registry.
5156	5156	SECTION 160. 224.728 (2) of the statutes is renumbered 224.35 (2) and amended
5157	5157	to read:
5158	5158	224.35 (2) CHANNELING INFORMATION. To reduce the points of contact that the
5159	5159	division may have to maintain, and to facilitate compliance with the requirements
5160	5160	under s. 224.725 (2) (c) any requirement that an applicant provide identity
5161	5161	information, including a social security number or federal employer identification
5162	5162	number, fingerprints, credit reports, or other personal history, the division may use
5163	5163	the nationwide mortgage multistate licensing system and registry as a channeling
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5189	5189	ARG:wlj
5190	5190	SECTION 160 SENATE BILL 668
5191	5191	agent for requesting and distributing information to and from any source so directed
5192	5192	by the division, including the federal bureau of investigation, any state or federal
5193	5193	department of justice, or any other governmental agency.
5194	5194	SECTION 161. 224.728 (3) of the statutes is renumbered 224.35 (3) and amended
5195	5195	to read:
5196	5196	224.35 (3) CHALLENGE PROCESS. The division shall establish a process whereby
5197	5197	mortgage loan originators persons holding licenses identified in sub. (1r) may
5198	5198	challenge information maintained by the nationwide mortgage multistate licensing
5199	5199	system and registry on behalf of the division.
5200	5200	SECTION 162. 224.728 (4) of the statutes is renumbered 224.35 (4), and 224.35
5201	5201	(4) (a) (intro.), (b) and (c), as renumbered, are amended to read:
5202	5202	224.35 (4) (a) (intro.) If any information or material is considered confidential
5203	5203	or privileged under federal or state law before it is provided or disclosed to the
5204	5204	nationwide mortgage multistate licensing system and registry, it shall continue to
5205	5205	be confidential or privileged after it is provided or disclosed to, and while maintained
5206	5206	by, the nationwide mortgage multistate licensing system and registry, except to the
5207	5207	extent federal or state law expressly provides otherwise and except as provided in
5208	5208	par. (c). Confidential or privileged information or material under this paragraph is
5209	5209	not subject to any of the following:
5210	5210	(b) Confidential or privileged information or material under par. (a) may be
5211	5211	shared with any state or federal regulatory agency having supervisory authority
5212	5212	over mortgage lending activities to which licenses identified in sub. (1r) apply
5213	5213	without losing any right or protection of confidentiality or privilege under federal or
5214	5214	state law.
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5239	5239	LRB-5025/1
5240	5240	ARG:wlj
5241	5241	SECTION 162
5242	5242	SENATE BILL 668
5243	5243	(c) This subsection does not prohibit the nationwide mortgage multistate
5244	5244	licensing system and registry from providing public access to information or material
5245	5245	relating to the employment history of, and publicly adjudicated disciplinary and
5246	5246	enforcement actions against, mortgage loan originators persons holding licenses
5247	5247	identified in sub. (1r).
5248	5248	SECTION 163. 224.728 (5) of the statutes is renumbered 224.35 (5) and amended
5249	5249	to read:
5250	5250	224.35 (5) COOPERATIVE ARRANGEMENTS. The division may enter into
5251	5251	cooperative, coordinating, or information-sharing arrangements or agreements
5252	5252	with other governmental agencies or with associations representing other
5253	5253	governmental agencies, including the Conference of State Bank Supervisors and the
5254	5254	American Association of Residential Mortgage Regulators.
5255	5255	SECTION 164. 224.74 (1) (a) of the statutes is amended to read:
5256	5256	224.74 (1) (a) Mortgage call report. Each mortgage banker, mortgage broker,
5257	5257	and mortgage loan originator licensed under this subchapter, and each registered
5258	5258	entity, shall submit to the nationwide mortgage multistate licensing system and
5259	5259	registry reports of condition, which shall be in such form and contain such
5260	5260	information as the nationwide mortgage multistate licensing system and registry
5261	5261	may require.
5262	5262	SECTION 165. 224.74 (2) (b) of the statutes is amended to read:
5263	5263	224.74 (2) (b) The division shall prepare a report for each investigation or
5264	5264	examination conducted under this subsection. These reports, and correspondence
5265	5265	regarding these reports, are confidential, except that the division may release these
5266	5266	reports and correspondence in connection with a disciplinary proceeding conducted
5267	5267	by the division, a liquidation proceeding, or a criminal investigation or proceeding.
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5293	5293	ARG:wlj
5294	5294	SECTION 165 SENATE BILL 668
5295	5295	In addition, any information from these reports or correspondence may be provided
5296	5296	to the nationwide mortgage multistate licensing system and registry and is not
5297	5297	confidential to the extent specified in s. 224.728 224.35 (4) (b) and (c).
5298	5298	SECTION 166. 224.755 (3) (a), (c) and (d) of the statutes are amended to read:
5299	5299	224.755 (3) (a) No education course may count toward the requirement under
5300	5300	sub. (1) or (2) unless the course has been reviewed and approved by the nationwide
5301	5301	mortgage multistate licensing system and registry based upon reasonable
5302	5302	standards, including review and approval of the course provider.
5303	5303	(c) Subject to any rule promulgated under s. 224.72 (7) (bm) or 224.725 (5) (b),
5304	5304	if If an individual was previously registered as a loan originator under s. 224.72, 2007
5305	5305	stats., or previously licensed as a mortgage loan originator under s. 224.725, the
5306	5306	division may not issue or renew a mortgage loan originator license for the individual
5307	5307	under s. 224.725 unless the individual satisfies the requirements under sub. (1) or
5308	5308	(2) or demonstrates to the division's satisfaction that the individual has completed
5309	5309	all education requirements applicable to the individual in the last year in which the
5310	5310	individual's license or registration was valid.
5311	5311	(d) Except as provided in any rule promulgated under s. 224.72 (7) (bm) Unless
5312	5312	expressly authorized by the division, a licensed mortgage loan originator may receive
5313	5313	credit for a continuing education course only in the year in which the course is taken
5314	5314	and may not take the same approved course in the same or successive years to meet
5315	5315	the requirements under sub. (2).
5316	5316	SECTION 167. 224.755 (4) (b) 1. of the statutes is amended to read:
5317	5317	224.755 (4) (b) 1. No test may satisfy the requirement under par. (a) unless the
5318	5318	test is developed by the nationwide mortgage multistate licensing system and
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5342	5342	24 - 105 -2023 - 2024 Legislature
5343	5343	LRB-5025/1
5344	5344	ARG:wlj
5345	5345	SECTION 167
5346	5346	SENATE BILL 668
5347	5347	registry and administered by a test provider approved by the nationwide mortgage
5348	5348	multistate licensing system and registry based upon reasonable standards.
5349	5349	SECTION 168. 224.77 (1) (a) of the statutes is amended to read:
5350	5350	224.77 (1) (a) Make a material misstatement, or knowingly omit a material
5351	5351	fact, in a license application or in other information or reports furnished to the
5352	5352	division, to the nationwide mortgage multistate licensing system and registry, or to
5353	5353	any other governmental agency, including failing to disclose a criminal conviction or
5354	5354	any disciplinary action taken by a state or federal regulatory agency.
5355	5355	SECTION 169. 224.77 (9) of the statutes is amended to read:
5356	5356	224.77 (9) REPORTING VIOLATIONS. The division shall report regularly violations
5357	5357	of this subchapter or of rules promulgated under this subchapter, as well as
5358	5358	enforcement actions and other relevant information, to the nationwide mortgage
5359	5359	multistate licensing system and registry. Except as provided in s. 224.728 224.35 (4)
5360	5360	(b) and (c), these reports shall be confidential and are not subject to public copying
5361	5361	or inspection under s. 19.35 (1).
5362	5362	SECTION 170. 321.60 (1) (a) 12. of the statutes is amended to read:
5363	5363	321.60 (1) (a) 12. A license or certificate of registration issued by the
5364	5364	department of financial institutions, or a division of it, under ss. 138.09, 138.12,
5365	5365	138.14, 202.13, 202.14, 217.06 217.05, 218.0101 to 218.0163, 218.02, 218.04, 218.05,
5366	5366	224.72, 224.725, or 224.93 or subch. IV of ch. 551.
5367	5367	SECTION 171. 422.202 (3) (c) of the statutes is amended to read:
5368	5368	422.202 (3) (c) A merchant may not, in the same transaction, be subject to the
5369	5369	penalty in s. 138.09 (9) (b), 218.0161 (1), or 425.305 and the penalty in s. 425.304,
5370	5370	based on the assessment of the same additional charges.
5371	5371	SECTION 172. 946.79 (1) (a) of the statutes is amended to read:
5372	5372	1
5373	5373	2
5374	5374	3
5375	5375	4
5376	5376	5
5377	5377	6
5378	5378	7
5379	5379	8
5380	5380	9
5381	5381	10
5382	5382	11
5383	5383	12
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5385	5385	14
5386	5386	15
5387	5387	16
5388	5388	17
5389	5389	18
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5391	5391	20
5392	5392	21
5393	5393	22
5394	5394	23
5395	5395	24
5396	5396	25 - 106 -2023 - 2024 Legislature LRB-5025/1
5397	5397	ARG:wlj
5398	5398	SECTION 172 SENATE BILL 668
5399	5399	946.79 (1) (a) “Financial institution" means a bank, savings bank, savings and
5400	5400	loan association, credit union, loan company, sales finance company, insurance
5401	5401	premium finance company, community currency exchange, seller of checks money
5402	5402	transmitter, insurance company, trust company, securities broker-dealer, as defined
5403	5403	in s. 551.102 (4), mortgage banker, mortgage broker, pawnbroker, as defined in s.
5404	5404	134.71 (1) (e), telegraph company, or dealer in precious metals, stones, or jewels.
5405	5405	SECTION 173. DFI-Bkg 74.01 (1) of the administrative code is amended to read:
5406	5406	DFI-Bkg 74.01 (1) “Actual process of collection" means regularly receiving
5407	5407	payments at periodic intervals, or debtor contacted within last 30 days and promise
5408	5408	of payment received, or an account referred for legal actions where the collection
5409	5409	agency has advanced legal costs. A collection agency and its client may by written
5410	5410	contract agree to a different actual process of collection, but this different actual
5411	5411	process of collection must require more effort on the part of the collection agency than
5412	5412	merely listing the account, inputting the account into its database, writing one letter
5413	5413	or making one call, or similar levels of effort. This subsection first applies to
5414	5414	contractual relationships entered into between a collection agency and its client after
5415	5415	March 1, 1993.
5416	5416	SECTION 174. DFI-Bkg 74.01 (2) of the administrative code is repealed.
5417	5417	SECTION 175. DFI-Bkg 74.01 (5m) of the administrative code is created to read:
5418	5418	DFI-Bkg 74.01 (5m) “Licensee” means a person licensed under s. 218.04,
5419	5419	Stats.
5420	5420	SECTION 176. DFI-Bkg 74.03 (title) of the administrative code is amended to
5421	5421	read:
5422	5422	DFI-Bkg 74.03 (title) Office relocations and other Other changes.
5423	5423	SECTION 177. DFI-Bkg 74.03 (1) of the administrative code is repealed.
5424	5424	1
5425	5425	2
5426	5426	3
5427	5427	4
5428	5428	5
5429	5429	6
5430	5430	7
5431	5431	8
5432	5432	9
5433	5433	10
5434	5434	11
5435	5435	12
5436	5436	13
5437	5437	14
5438	5438	15
5439	5439	16
5440	5440	17
5441	5441	18
5442	5442	19
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5444	5444	21
5445	5445	22
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5447	5447	24
5448	5448	25 - 107 -2023 - 2024 Legislature
5449	5449	LRB-5025/1
5450	5450	ARG:wlj
5451	5451	SECTION 178
5452	5452	SENATE BILL 668
5453	5453	SECTION 178. DFI-Bkg 74.03 (2) of the administrative code is amended to read:
5454	5454	DFI-Bkg 74.03 (2) OTHER CHANGES. A licensee shall notify the division of any
5455	5455	change to the information provided in the licensee's renewal license application or
5456	5456	provided in a previous notice of change filed by the licensee with the division under
5457	5457	this section. The notice shall be in writing and, except in the case of a relocation, be
5458	5458	received by the division within 10 days after the change. Each licensee shall keep
5459	5459	current and accurate all material information on file with the division and the
5460	5460	nationwide multistate licensing system and registry as provided in s. 224.35 (6),
5461	5461	Stats. The licensee shall provide any additional information, data, and records
5462	5462	regarding the a change to the division within 20 days after the division requests the
5463	5463	information, data, or records. Any change that is subject to the notice requirement
5464	5464	shall be subject to the approval of the division. In reviewing the change or relocation,
5465	5465	the division shall apply the same criteria as the criteria for approval of an original
5466	5466	license application. Except in the case of a relocation, the division shall determine
5467	5467	the cost of investigating and processing the change. The licensee shall pay the
5468	5468	division's cost within 30 days after the division demands payment. If so directed by
5469	5469	the division, the licensee shall provide any notice required under this subsection to
5470	5470	the nationwide multistate licensing system and registry as provided in s. 224.35,
5471	5471	Stats.
5472	5472	SECTION 179. DFI-Bkg 74.04 (1) (intro.) of the administrative code is amended
5473	5473	to read:
5474	5474	DFI-Bkg 74.04 (1) AGREEMENT WITH CREDITOR. (intro.) Prior to accepting
5475	5475	accounts for collection from a creditor or earning or collecting a fee or commission,
5476	5476	the licensee shall enter into a written agreement with the creditor. The agreement
5477	5477	shall do all of the following:
5478	5478	1
5479	5479	2
5480	5480	3
5481	5481	4
5482	5482	5
5483	5483	6
5484	5484	7
5485	5485	8
5486	5486	9
5487	5487	10
5488	5488	11
5489	5489	12
5490	5490	13
5491	5491	14
5492	5492	15
5493	5493	16
5494	5494	17
5495	5495	18
5496	5496	19
5497	5497	20
5498	5498	21
5499	5499	22
5500	5500	23
5501	5501	24
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5503	5503	ARG:wlj
5504	5504	SECTION 180 SENATE BILL 668
5505	5505	SECTION 180. DFI-Bkg 74.05 (1) (intro.) of the administrative code is amended
5506	5506	to read:
5507	5507	DFI-Bkg 74.05 (1) REMITTANCE STATEMENT TO BE FURNISHED EACH CREDITOR.
5508	5508	(intro.) Licensee shall provide a remittance statement and remit any and all money
5509	5509	due to any and all creditors or forwarders within 30 days from on or before the last
5510	5510	day of the month following the close of the month during which the collection was
5511	5511	effected as provided in s. 218.04 (5) (a) 4., Stats. The remittance statement shall set
5512	5512	forth all of the following:
5513	5513	SECTION 181. DFI-Bkg 74.06 of the administrative code is renumbered
5514	5514	DFI-Bkg 74.06 (2) and amended to read:
5515	5515	DFI-Bkg 74.06 (2) Each licensee shall deposit in a trust fund account in any
5516	5516	approved financial institution promptly after collection, sufficient funds to pay all
5517	5517	moneys due or owing all creditors or forwarders. The trust fund account shall be used
5518	5518	only for this purpose. A licensee may maintain trust funds in an interest bearing
5519	5519	savings account or instrument provided it is identified as a “trust account". account.”
5520	5520	(3) Sufficient funds shall be maintained in the trust account or trust accounts
5521	5521	to pay all moneys due or owing all creditors or forwarders. For the purpose of
5522	5522	determining sufficient funds, amounts collected by a 3rd party, but not yet deposited
5523	5523	into the licensee's trust account, are not considered trust funds.
5524	5524	(4) Sufficient funds shall be maintained in or made available to the trust
5525	5525	checking account on which remittance checks or electronic debits are drawn or made
5526	5526	to pay all checks and debits when presented.
5527	5527	(5) The licensee shall have sufficient documentation from the trust account or
5528	5528	trust accounts available to make an adequate examination.
5529	5529	SECTION 182. DFI-Bkg 74.06 (1) of the administrative code is created to read:
5530	5530	1
5531	5531	2
5532	5532	3
5533	5533	4
5534	5534	5
5535	5535	6
5536	5536	7
5537	5537	8
5538	5538	9
5539	5539	10
5540	5540	11
5541	5541	12
5542	5542	13
5543	5543	14
5544	5544	15
5545	5545	16
5546	5546	17
5547	5547	18
5548	5548	19
5549	5549	20
5550	5550	21
5551	5551	22
5552	5552	23
5553	5553	24
5554	5554	25 - 109 -2023 - 2024 Legislature
5555	5555	LRB-5025/1
5556	5556	ARG:wlj
5557	5557	SECTION 182
5558	5558	SENATE BILL 668
5559	5559	DFI-Bkg 74.06 (1) A licensee's trust checking account shall be identified as a
5560	5560	“trust account.”
5561	5561	SECTION 183. DFI-Bkg 74.06 (6) of the administrative code is created to read:
5562	5562	DFI-Bkg 74.06 (6) Third party payment processors shall not be given authority
5563	5563	to withdraw funds from the licensee's trust account or accounts.
5564	5564	SECTION 184. DFI-Bkg 74.07 (1) (j) of the administrative code is created to
5565	5565	read:
5566	5566	DFI-Bkg 74.07 (1) (j) A roster of all collectors and solicitors employed by the
5567	5567	licensee. The list shall be updated and accurate at all times and set forth all of the
5568	5568	following:
5569	5569	1. The individual's first and last name, home address, and indication of
5570	5570	whether the individual works from the individual's residence.
5571	5571	2. The first and last name of any alias that is used by the individual, the date
5572	5572	the individual started to use the alias, and, if applicable, the date the individual
5573	5573	stopped using the alias.
5574	5574	3. The date the individual was hired by the licensee.
5575	5575	4. The date the individual's employment with the licensee was terminated, if
5576	5576	applicable.
5577	5577	SECTION 185. DFI-Bkg 74.10 (1) (c) of the administrative code is created to
5578	5578	read:
5579	5579	DFI-Bkg 74.10 (1) (c) A licensee may not contract for or assess a fee,
5580	5580	commission, or any other charge to a creditor for returning any account to the
5581	5581	creditor that is not in the actual process of collection, other than a contracted fee for
5582	5582	reasonable costs incurred by the licensee for each account placed in error by the
5583	5583	creditor.
5584	5584	1
5585	5585	2
5586	5586	3
5587	5587	4
5588	5588	5
5589	5589	6
5590	5590	7
5591	5591	8
5592	5592	9
5593	5593	10
5594	5594	11
5595	5595	12
5596	5596	13
5597	5597	14
5598	5598	15
5599	5599	16
5600	5600	17
5601	5601	18
5602	5602	19
5603	5603	20
5604	5604	21
5605	5605	22
5606	5606	23
5607	5607	24
5608	5608	25 - 110 -2023 - 2024 Legislature LRB-5025/1
5609	5609	ARG:wlj
5610	5610	SECTION 186 SENATE BILL 668
5611	5611	SECTION 186. DFI-Bkg 74.10 (2) of the administrative code is renumbered
5612	5612	DFI-Bkg 74.10 (2) (b).
5613	5613	SECTION 187. DFI-Bkg 74.10 (2) (a) of the administrative code is created to
5614	5614	read:
5615	5615	DFI-Bkg 74.10 (2) (a) In this subsection, “terminated,” with respect to a
5616	5616	license, includes a license that is surrendered, revoked, or expired.
5617	5617	SECTION 188. DFI-Bkg 74.11 (10) of the administrative code is created to read:
5618	5618	DFI-Bkg 74.11 (10) TRADE NAMES. (a) A licensee may not conduct business in
5619	5619	this state under any name or names other than the name or names listed on the
5620	5620	license.
5621	5621	(b) Before using any trade name, a licensee shall obtain approval from the
5622	5622	division for the use of the trade name.
5623	5623	(c) A licensee may not conduct business in this state using a trade name that
5624	5624	includes a corporate identifier.
5625	5625	SECTION 189. DFI-Bkg 74.12 of the administrative code is repealed.
5626	5626	SECTION 190. DFI-Bkg 74.14 of the administrative code is repealed.
5627	5627	SECTION 191. DFI-Bkg 74.16 (9) of the administrative code is amended to read:
5628	5628	DFI-Bkg 74.16 (9) Engage in other conduct which that can reasonably be
5629	5629	expected to threaten or harass the debtor or a person related to the debtor including
5630	5630	conduct which violates.
5631	5631	(9g) Violate the Federal Fair Debt Collection Practices Act.
5632	5632	SECTION 192. DFI-Bkg 74.16 (9m) of the administrative code is created to read:
5633	5633	DFI-Bkg 74.16 (9m) Violate any federal or state statute, rule, or regulation
5634	5634	that relates to practice as a collection agency.
5635	5635	SECTION 193. DFI-Bkg 75.01 (1m) of the administrative code is created to read:
5636	5636	1
5637	5637	2
5638	5638	3
5639	5639	4
5640	5640	5
5641	5641	6
5642	5642	7
5643	5643	8
5644	5644	9
5645	5645	10
5646	5646	11
5647	5647	12
5648	5648	13
5649	5649	14
5650	5650	15
5651	5651	16
5652	5652	17
5653	5653	18
5654	5654	19
5655	5655	20
5656	5656	21
5657	5657	22
5658	5658	23
5659	5659	24
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5661	5661	LRB-5025/1
5662	5662	ARG:wlj
5663	5663	SECTION 193
5664	5664	SENATE BILL 668
5665	5665	DFI-Bkg 75.01 (1m) “Customer identification number” has the meaning given
5666	5666	in s. 138.14 (1) (br), Stats.
5667	5667	SECTION 194. DFI-Bkg 75.08 (1) (c) 3. of the administrative code is amended
5668	5668	to read:
5669	5669	DFI-Bkg 75.08 (1) (c) 3. Identify the name, address, telephone number, and
5670	5670	unique identification number of the customer identification number.
5671	5671	SECTION 195. DFI-Bkg 75.08 (2) (a) 4. of the administrative code is amended
5672	5672	to read:
5673	5673	DFI-Bkg 75.08 (2) (a) 4. Identify the name, address, telephone number, and
5674	5674	unique identification number of the customer identification number.
5675	5675	SECTION 196.0Nonstatutory provisions.
5676	5676	(1) TRANSITION OF LICENSE INFORMATION.
5677	5677	(a) In this subsection:
5678	5678	1. “Division” means the division of banking in the Department of Financial
5679	5679	Institutions.
5680	5680	2. “Nationwide multistate licensing system and registry” has the meaning
5681	5681	given in s. 224.35 (1g) (b).
5682	5682	(b) All persons holding a license under s. 138.09, 138.14, or 218.02 shall
5683	5683	transition their license information onto the nationwide multistate licensing system
5684	5684	and registry before January 31 of the year in which this paragraph takes effect. The
5685	5685	division may suspend the license of any licensee subject to this paragraph that has
5686	5686	not transitioned its license information onto the nationwide multistate licensing
5687	5687	system and registry by March 31 of the year in which this paragraph takes effect.
5688	5688	(c) All persons holding a license under ch. 217 shall transition their license
5689	5689	information onto the nationwide multistate licensing system and registry before
5690	5690	1
5691	5691	2
5692	5692	3
5693	5693	4
5694	5694	5
5695	5695	6
5696	5696	7
5697	5697	8
5698	5698	9
5699	5699	10
5700	5700	11
5701	5701	12
5702	5702	13
5703	5703	14
5704	5704	15
5705	5705	16
5706	5706	17
5707	5707	18
5708	5708	19
5709	5709	20
5710	5710	21
5711	5711	22
5712	5712	23
5713	5713	24
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5715	5715	ARG:wlj
5716	5716	SECTION 196 SENATE BILL 668
5717	5717	March 31 of the year in which this paragraph takes effect. The division may suspend
5718	5718	the license of any licensee under ch. 217 that has not transitioned its license
5719	5719	information onto the nationwide multistate licensing system and registry by March
5720	5720	31 of the year in which this paragraph takes effect.
5721	5721	(d) All persons holding a license under s. 138.12 shall transition their license
5722	5722	information onto the nationwide multistate licensing system and registry between
5723	5723	January 2 of the year in which this paragraph takes effect and March 31 of the year
5724	5724	in which this paragraph takes effect. The license of any licensee under s. 138.12 that
5725	5725	has not transitioned its license information onto the nationwide multistate licensing
5726	5726	system and registry by March 31 of the year in which this paragraph takes effect will
5727	5727	expire on April 30 of the year in which this paragraph takes effect, and such licensee
5728	5728	will be required to apply for and receive a new license to continue operating as an
5729	5729	insurance premium finance company in this state.
5730	5730	(e) All persons holding a license under s. 218.04 shall transition their license
5731	5731	information onto the nationwide multistate licensing system and registry between
5732	5732	March 1 of the year in which this paragraph takes effect and May 31 of the year in
5733	5733	which this paragraph takes effect. The license of any licensee under s. 218.04 that
5734	5734	has not transitioned its license information onto the nationwide multistate licensing
5735	5735	system and registry by May 31 of the year in which this paragraph takes effect will
5736	5736	expire on June 30 of the year in which this paragraph takes effect, and such licensee
5737	5737	will be required to apply for and receive a new license to continue operating as a
5738	5738	collection agency in this state.
5739	5739	(f) All persons holding a license under s. 218.0114, except for motor vehicle
5740	5740	dealers within the meaning of s. 218.0101 (23), or s. 218.05 shall transition their
5741	5741	license information onto the nationwide multistate licensing system and registry
5742	5742	1
5743	5743	2
5744	5744	3
5745	5745	4
5746	5746	5
5747	5747	6
5748	5748	7
5749	5749	8
5750	5750	9
5751	5751	10
5752	5752	11
5753	5753	12
5754	5754	13
5755	5755	14
5756	5756	15
5757	5757	16
5758	5758	17
5759	5759	18
5760	5760	19
5761	5761	20
5762	5762	21
5763	5763	22
5764	5764	23
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5767	5767	LRB-5025/1
5768	5768	ARG:wlj
5769	5769	SECTION 196
5770	5770	SENATE BILL 668
5771	5771	before September 30 of the year in which this paragraph takes effect. The division
5772	5772	may suspend the license of any licensee under s. 218.0114, except for motor vehicle
5773	5773	dealers within the meaning of s. 218.0101 (23), or s. 218.05 that has not transitioned
5774	5774	its license information onto the nationwide multistate licensing system and registry
5775	5775	by September 30 of the year in which this paragraph takes effect.
5776	5776	(2) TRANSITION OF RENEWAL FEE DATES.
5777	5777	(a) In this subsection, “department” means the Department of Financial
5778	5778	Institutions.
5779	5779	(b) With regard to a license under s. 138.12 that expires on April 30 of the year
5780	5780	in which this paragraph takes effect, the licensee shall pay to the department no later
5781	5781	than March 31 of that year a license fee equal to two-thirds of the annual license fee
5782	5782	specified under s. 138.12 (3) (b), to cover the period of May 1 through the new
5783	5783	December 31 license expiration date.
5784	5784	(c) With regard to a license under s. 218.04 that expires on June 30 of the year
5785	5785	in which this paragraph takes effect, the licensee shall pay to the department no later
5786	5786	than June 1 of that year a license fee equal to one-half of the annual license fee
5787	5787	specified under s. 218.04 (3) (b) to cover the period of July 1 through the new
5788	5788	December 31 license expiration date.
5789	5789	SECTION 197.0Effective date.
5790	5790	(1) Notwithstanding s. 227.265, this act takes effect on the first January 1
5791	5791	occurring at least 90 days after publication.
5792	5792	(END)
5793	5793	1
5794	5794	2
5795	5795	3
5796	5796	4
5797	5797	5
5798	5798	6
5799	5799	7
5800	5800	8
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5803	5803	11
5804	5804	12
5805	5805	13
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