AB504: Bill Text

AB504,19,25 223.01 Trust company banks, capital. Trust company banks may be organized pursuant to ch. 221 and shall be subject to all the provisions, requirements, and liabilities of chs. 220 and 221, so far as applicable, except that trust company banks may not accept deposits other than trust deposits and except as otherwise hereinafter provided. The division may, with the approval of the banking institutions review board, establish minimum capital requirements for a trust company bank.

AB504,41 Section 41. 224.46 of the statutes is created to read:

AB504,20,3 224.46 Independent data processing servicers. (1) Definitions. In this section:

AB504,20,4 (a) “Financial institution" has the meaning given in s. 214.01 (1) (jn).

AB504,20,10 (b) “Independent data processing servicer" means an entity that provides to a financial institution electronic data processing services, but not including the exchange of data and settlement of funds between 2 or more unaffiliated financial institutions resulting from transactions involving remote terminals under s. 186.113 (15), remote service units under s. 214.04 (21) or 215.13 (46), or customer bank communications terminals under s. 221.0303 (2).

AB504,20,13 (c) “Interface agreement" means a written agreement specifying the terms and conditions under which an interface of communications, data, or systems between independent data processing servicers shall be accomplished.

AB504,20,24 (2) Ownership of financial institution data. If a financial institution transfers or otherwise makes available to an independent data processing servicer any data from the financial institution's records, this data shall remain the property of the financial institution. The independent data processing servicer has no right, title, or interest in, or claim to legal ownership of, the data. The transfer of the data by the financial institution authorizes the independent data processing servicer only to exercise temporary control of the data for the limited purpose of performing the contracted services requested by the financial institution. This subsection also applies with respect to an independent data processing servicer that receives a financial institution's data under an interface agreement or other agreement with another independent data processing servicer.

AB504,21,4 (3) Contract disclosures by independent data processing servicers. No independent data processing servicer may enter into a contract with a financial institution, or renew or amend such a contract, unless the contract discloses, in separate contract provisions, all of the following:

AB504,21,6 (a) All fees or charges, including any fee schedule, that the independent data processing servicer may impose on the financial institution.

AB504,21,8 (b) Any formula or other grounds that the independent data processing servicer may apply or rely upon to terminate the contract.

AB504,42 Section 42 . 224.725 (1) of the statutes is amended to read:

AB504,21,17 224.725 (1) License required. Except as provided in sub. subs. (1m) and (1r), an individual may not regularly engage in the business of a mortgage loan originator with respect to a residential mortgage loan, or use the title “mortgage loan originator," advertise, or otherwise portray himself or herself as a mortgage loan originator in this state, unless the individual has been issued by the division, and thereafter maintains, a license under this section. Each licensed mortgage loan originator shall register with, and maintain a valid unique identifier issued by, the nationwide mortgage licensing system and registry.

AB504,43 Section 43. 224.725 (1r) of the statutes is created to read:

AB504,21,25 224.725 (1r) Employment transition; temporary authority. (a) An individual who was a registered mortgage loan originator immediately prior to becoming employed by, and who remains employed by, a mortgage banker or mortgage broker licensed under this subchapter and who has applied to the division for a mortgage loan originator license is considered to have temporary authority to act as a mortgage loan originator under this subchapter, for the period specified in par. (c), if all of the following apply:

AB504,22,2 1. The individual has not previously had an application for a mortgage loan originator license denied.

AB504,22,4 2. The individual has not previously had a mortgage loan originator license suspended or revoked in any governmental jurisdiction.

AB504,22,7 3. The individual has not been subject to, or served with, a cease and desist order in any governmental jurisdiction or by the director of the federal bureau of consumer financial protection under 12 USC 5113 (c).

AB504,22,9 4. The individual has not been convicted of any crime that disqualifies the individual under sub. (3) (b) from issuance of a license.

AB504,22,13 5. The individual was registered with the nationwide mortgage licensing system and registry as a loan originator during the one-year period immediately preceding the date on which the individual furnished the information required under sub. (2) (c).

AB504,22,18 (b) An individual who is licensed as a mortgage loan originator in another state, who is employed by a mortgage banker or mortgage broker licensed under this subchapter, and who has applied to the division for a mortgage loan originator license is considered to have temporary authority to act as a mortgage loan originator under this subchapter, for the period specified in par. (c), if all of the following apply:

AB504,22,19 1. The individual meets the requirements of par. (a) 1. to 4.

AB504,22,22 2. The individual was licensed in another state during the 30-day period immediately preceding the date on which the individual furnished the information required under sub. (2) (c).

AB504,23,3 (c) 1. The period during which an individual described in par. (a) or (b) is considered to have temporary authority to act as a mortgage loan originator under this subchapter shall begin on the date on which the individual furnishes to the nationwide mortgage licensing system and registry the information required under sub. (2) (c) in connection with the application for a mortgage loan originator license under this subchapter.

AB504,23,5 2. The period that begins under subd. 1. shall end on the earliest of the following:

AB504,23,7 a. The date on which the individual withdraws the application for a mortgage loan originator license.

AB504,23,9 b. The date on which the division denies, or issues a notice of intent to deny, the application for a mortgage loan originator license.

AB504,23,11 c. The date on which the division grants to the individual a mortgage loan originator license.

AB504,23,14 d. If the individual's application is listed on the nationwide mortgage licensing system and registry as incomplete, the date that is 120 days after the date on which the individual applied for a mortgage loan originator license.

AB504,23,18 (d) 1. Any person employing an individual who is considered to have temporary authority to act as a mortgage loan originator under this subsection shall be subject to the requirements of this subchapter to the same extent as if that individual were a licensed mortgage loan originator.

AB504,23,23 2. Any individual who is considered to have temporary authority to act as a mortgage loan originator under this subsection and who engages in any activity described in s. 224.71 (6) (c) and (d) shall be subject to the requirements of this subchapter to the same extent as if the individual were a licensed mortgage loan originator.

AB504,44 Section 44. 227.52 (3) of the statutes is amended to read:

AB504,24,4 227.52 (3) Those decisions of the division of banking that are subject to review, prior to any judicial review, by the banking institutions review board, and decisions of the division of banking relating to savings banks or savings and loan associations, but no other institutions subject to the jurisdiction of the division of banking.

AB504,45 Section 45. 227.53 (1) (a) 1. of the statutes is amended to read:

AB504,24,13 227.53 (1) (a) 1. Proceedings for review shall be instituted by serving a petition therefor personally or by certified mail upon the agency or one of its officials, and filing the petition in the office of the clerk of circuit court for the county where the judicial review proceedings are to be held. If the agency whose decision is sought to be reviewed is the tax appeals commission, the banking institutions review board, or the credit union review board, or the savings institutions review board, the petition shall be served upon both the agency whose decision is sought to be reviewed and the corresponding named respondent, as specified under par. (b) 1. to 4.

AB504,46 Section 46. 227.53 (1) (b) 2. of the statutes is repealed.

AB504,47 Section 47. 227.53 (1) (b) 4. of the statutes is amended to read:

AB504,24,19 227.53 (1) (b) 4. The savings banking institutions review board, the division of banking, except if the petitioner is the division of banking, the prevailing parties before the savings banking institutions review board shall be the named respondents.

AB504,48 Section 48. 227.53 (1) (d) of the statutes is amended to read:

AB504,25,3 227.53 (1) (d) Except in the case of the tax appeals commission, the banking institutions review board, and the credit union review board, and the savings institutions review board, the agency and all parties to the proceeding before it shall have the right to participate in the proceedings for review. The court may permit other interested persons to intervene. Any person petitioning the court to intervene shall serve a copy of the petition on each party who appeared before the agency and any additional parties to the judicial review at least 5 days prior to the date set for hearing on the petition.

AB504,49 Section 49. 403.312 (2) (c) 1. of the statutes is amended to read:

AB504,25,8 403.312 (2) (c) 1. The claim becomes enforceable at the later of the time that the claim is asserted, or the 90th 14th day following the date of the check, in the case of a cashier's check or teller's check, or the 90th 14th day following the date of the acceptance, in the case of a certified check.

AB504,50 Section 50. 705.04 (2) (intro.) of the statutes is amended to read:

AB504,25,12 705.04 (2) (intro.) If Except as provided in s. 705.06 (2m), if the account is a P.O.D. account, on the death of the original payee or the survivor of 2 or more original payees, all of the following apply:

AB504,51 Section 51 . 705.04 (2g) of the statutes, as affected by 2019 Wisconsin Act 9, is amended to read:

AB504,25,22 705.04 (2g) Notwithstanding subs. (1) and (2) and s. 705.06 (2m), the department of health services may collect, from funds of a decedent that are held by the decedent immediately before death in a joint account or a P.O.D. account, an amount equal to the medical assistance that is recoverable under s. 49.496 (3) (a), an amount equal to aid under s. 49.68, 49.683, 49.685, or 49.785 that is recoverable under s. 49.682 (2) (a) or (am), or an amount equal to long-term community support services under s. 46.27, 2017 stats., that is recoverable under s. 46.27 (7g) (c) 1., 2017 stats., and that was paid on behalf of the decedent or the decedent's spouse.

AB504,52 Section 52. 705.06 (2m) of the statutes is created to read:

AB504,26,8 705.06 (2m) If a financial institution has any lien right, right to setoff, or security interest in a P.O.D. account resulting from the financial institution's loan or other extension of credit to an original payee, on the death of the original payee or the survivor of 2 or more original payees, the financial institution may retain control of all sums on deposit in the P.O.D. account to the extent necessary to exercise its lien right or right to setoff or to protect its security interest or may tender such sums to a court and seek a court determination, but shall pay any remaining balance of the sums on deposit to the P.O.D. beneficiary or beneficiaries as provided in s. 705.04 (2). This subsection applies notwithstanding any limitation on the rights of creditors under s. 705.07 (1).

AB504,53 Section 53. 705.06 (3) of the statutes is amended to read:

AB504,26,12 705.06 (3) The protection provided by this section subs. (1) and (2) shall have no bearing on the rights of parties or their successors in disputes concerning the beneficial ownership of funds in or withdrawn from an account.

AB504,54 Section 54. 812.18 (1) of the statutes is amended to read:

AB504,26,20 812.18 (1) From Subject to s. 812.19 (4), from the time of service upon the garnishee, the garnishee shall be liable to the creditor for the property then in the garnishee's possession or under his or her control belonging to the debtor or in which the debtor is interested to the extent of his or her right or interest therein and for all the garnishee's debts due or to become due to the debtor, except such as are exempt from execution, or are required by a court to be paid by the debtor as restitution under s. 973.20, but not in excess of the amount of the creditor's claim.

AB504,55 Section 55. 812.19 (4) of the statutes is created to read:

AB504,27,2 812.19 (4) If a garnishee is a financial institution, as defined in s. 214.01 (1) (jn), in possession of, or obligated with respect to, property subject to garnishment, the financial institution is liable for the surrender of that property only upon expiration of a reasonable time to comply with or respond to the garnishee summons and complaint.

AB504,56 Section 56. Nonstatutory provisions.

AB504,27,8 (1) Board membership; transition provision. On the effective date of this subsection, each member of the savings institutions review board under s. 15.185 (3), 2017 stats., serving an unexpired term on that board shall become a member of the banking institutions review board for a term that expires on the member's expiration date previously established for the savings institutions review board.

AB504,27,10 (2) Consolidation of banking review board and savings institutions review board; transfer provisions.

AB504,27,12 (a) Banking review board renamed. On the effective date of this paragraph, the banking review board is renamed the banking institutions review board.

AB504,27,15 (b) Tangible personal property. On the effective date of this paragraph, all tangible personal property, including records, of the savings institutions review board is transferred to the banking institutions review board.

AB504,27,20 (c) Pending matters. Any matter pending with the savings institutions review board on the effective date of this paragraph is transferred to the banking institutions review board. All materials submitted to or actions taken by the savings institutions review board are considered as having been submitted to or taken by the banking institutions review board.

AB504,27,23 (d) Orders. All orders issued by the savings institutions review board in effect on the effective date of this paragraph remain in effect until their specified expiration dates or until modified or rescinded by the banking institutions review board.

AB504,28,3 (e) Secretary to resolve transition disagreements. In the case of disagreement between the savings institutions review board and the banking institutions review board with respect to any provision of this subsection, the secretary of financial institutions shall determine the matter and shall develop a plan for an orderly transfer.

AB504,57 Section 57 . Initial applicability.

AB504,28,7 (1) Payment of lost, destroyed, or stolen instruments. The treatment of s. 403.312 (2) (c) 1. first applies to claims asserted on the effective date of this subsection.

AB504,28,11 (2) Federal Home Loan Bank loans; retroactive applicability. The treatment of s. 221.0324 (9) first applies retroactively to loans made or credit extended before, and applies to loans made or credit extended on or after, the effective date of this subsection.

AB504,28,14 (3) Independent data processing servicers. The treatment of s. 224.46 (3) first applies to contracts entered into, renewed, or amended on the effective date of this subsection.

AB504,58 Section 58. Effective dates. This act takes effect on the day after publication, except as follows:

AB504,28,19 (1) Banking institutions review board. The treatment of s. 15.185 (1) (by Section 6) takes effect on May 2, 2021, or on the day after publication, whichever is later.

AB504,28,21 (2) Mortgage loan originators. The treatment of s. 224.725 (1) and (1r) takes effect on November 28, 2019, or on the day after publication, whichever is later.

AB504,28,24 (3) Independent data processing servicers. The treatment of s. 224.46 and Section 57 (3) of this act take effect on the first day of the 4th month beginning after publication.

AB504,28,25 (End)