SB668: Bill Text

SB668,,73 138.09 (6) (a) Except as provided in par. (b), the The licensee shall keep such books and records in the licensee’s place of business at a licensed location, or accessible from a licensed location, as in the opinion of the division will enable the division to determine whether the provisions of this chapter are being observed. Every such licensee shall preserve the records of final entry used in such business, including cards used in the card system, if any, for a period of at least 2 years after the making of any loan recorded therein.

SB668,,74 (b) A licensee may keep the books and records specified in par. (a) at a single location inside or outside of this state if the books and records are kept at a location licensed under this section. If any books and records are not located within this state, the licensee, upon request of the division, shall promptly deliver such information to any location within this state specified by the division. The licensee shall organize the books and records by the place of business licensed location where the records originated and shall keep the books and records separate from other records for business conducted at that location. Actual costs incurred by the division to examine books and records maintained outside of this state shall be paid by the licensee.

SB668,26 Section 26. 138.09 (7) (b), (bm) and (bn) of the statutes are repealed.

SB668,27 Section 27. 138.09 (7) (c) 2. and 4. of the statutes are amended to read:

SB668,,77 138.09 (7) (c) 2. For the purpose of computing interest under this section, whether at the maximum rate or less, a day shall be considered one-thirtieth of a month when such computation is made for a fraction of a month. Loan contracts providing for installments payable at monthly intervals may provide for a first period between the date of the contract and the first installment due date of not more than 45 days and not less than 15 days. Where the first period is greater or lesser than one month, interest may be charged only for each day in the first period, at a rate not to exceed one-thirtieth of the interest which would be applicable to a first installment period of one month, but such first period may be considered a monthly interval for purposes of determining rebates. Where the first period is greater than one month, any additional interest charge shall be earned and may be added to and collected at the time of the first installment payment.

SB668,,78 4. If 2 installments or parts thereof of a precomputed loan are not paid on or before the 10th day after their scheduled or deferred due dates, a licensee may elect to convert the loan from a precomputed loan to one in which the interest is computed on unpaid balances actually outstanding. In this event the licensee shall make a rebate pursuant to the provisions on rebate upon prepayment as of the due date of an unpaid installment, and thereafter may charge interest from the due date as provided in subd. 3. or by par. (b) 2. and no further delinquency or deferral charges shall be made. The rate of interest may equal but not exceed the annual percentage rate of finance charge which was disclosed to the borrower when the loan was made. The rate of interest shall be computed on actual unpaid balances of the contract as reduced by the rebate for the time that such balances are actually outstanding from the due date as of which the rebate was made until the contract is fully paid.

SB668,28 Section 28. 138.09 (7) (e) 2. of the statutes is repealed.

SB668,29 Section 29. 138.09 (7) (e) 3. of the statutes is amended to read:

SB668,,81 138.09 (7) (e) 3. Notwithstanding subds. subd. 1. and 2., delinquency charges on precomputed consumer loans shall be governed by s. 422.203.

SB668,30 Section 30. 138.09 (7) (g) (intro.) of the statutes is amended to read:

SB668,,83 138.09 (7) (g) (intro.) Except as provided in par. (gm), upon Upon prepayment in full by cash, renewal, refinancing or otherwise, the borrower shall be entitled to a rebate of the unearned interest as provided in this paragraph. If the combined rebate of interest and credit insurance premiums otherwise required is less than $1, no rebate need be made. The refunds shall be determined as follows:

SB668,31 Section 31. 138.09 (7) (gm) 1. and 2. of the statutes are repealed.

SB668,32 Section 32. 138.09 (7) (k) of the statutes is amended to read:

SB668,,86 138.09 (7) (k) All consumer loans as defined in s. 421.301 (12) shall be governed by chs. 421 to 427, but to the extent that chs. 421 to 427 are inconsistent with this section, this section shall govern.

SB668,33 Section 33. 138.12 (1) (cm) and (dm) of the statutes are created to read:

SB668,,88 138.12 (1) (cm) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b).

SB668,,89 (dm) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).

SB668,34 Section 34. 138.12 (3) (b) of the statutes is amended to read:

SB668,,91 138.12 (3) (b) A license issued under this section expires on December 31 of the calendar year in which the initial license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year. The annual license fee is $500 and shall be paid to the division in a form and manner acceptable to the division. Licenses may be renewed May 1 of each year upon payment of the annual fee or reinstated as provided in s. 224.35 (7).

SB668,35 Section 35. 138.12 (3) (c) of the statutes is repealed and recreated to read:

SB668,,93 138.12 (3) (c) A licensee shall make an annual report and submit financial statements as provided in s. 224.35 (8).

SB668,36 Section 36. 138.12 (3) (d) 2. c. of the statutes is created to read:

SB668,,95 138.12 (3) (d) 2. c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35.

SB668,37 Section 37. 138.12 (3) (f), (g) and (h) of the statutes are created to read:

SB668,,97 138.12 (3) (f) The division shall utilize the nationwide multistate licensing system and registry, and the provisions of s. 224.35 shall apply, with respect to applicants and licensees under this section.

SB668,,98 (g) An applicant or licensee under this section shall register with, and maintain a valid unique identifier issued by, the nationwide multistate licensing system and registry.

SB668,,99 (h) Each licensee shall keep current and accurate all material information on file with the division and the nationwide multistate licensing system and registry as provided in s. 224.35 (6).

SB668,38 Section 38. 138.12 (4) (am) 1. of the statutes is amended to read:

SB668,,101 138.12 (4) (am) 1. An applicant shall pay to the division a nonrefundable $300 license investigation fee and a $500 annual license fee for the period ending on the next April 30 December 31.

SB668,39 Section 39. 138.12 (5) (a) 2. of the statutes is repealed and recreated to read:

SB668,,103 138.12 (5) (a) 2. The licensee made a material misstatement, or knowingly omitted a material fact, in an application for a license or in information furnished to the division or the nationwide multistate licensing system and registry.

SB668,40 Section 40. 138.12 (5) (b) of the statutes is amended to read:

SB668,,105 138.12 (5) (b) Before the division revokes, suspends or refuses to renew the license of any premium finance company on any ground other than failure to timely renew or reinstate the license as provided in s. 224.35 (7), the division shall give the company an opportunity to be fully heard and to introduce evidence in the company’s behalf. In lieu of revoking or suspending the license for any of the causes enumerated in this subsection, after hearing, the division may subject the premium finance company to a penalty of not more than $200 for each offense when in the division’s judgment the division finds that the public interest would not be harmed by the continued operation of such company. The amount of any penalty under this paragraph shall be paid by the company to the division for the use of the state. At any hearing under this subsection, the division may administer oaths to witnesses. Anyone testifying falsely, after having been administered the oath, shall be subject to the penalty of perjury.

SB668,41 Section 41. 138.12 (5r) of the statutes is created to read:

SB668,,107 138.12 (5r) Reporting violations. The division may report any enforcement action, any violation of this section or of an administrative rule or order, or other relevant information to the nationwide multistate licensing system and registry. Except as provided in s. 224.35 (4) (b) and (c), these reports to the nationwide multistate licensing system and registry shall be confidential and are not subject to public copying or inspection under s. 19.35 (1).

SB668,42 Section 42. 138.12 (14) of the statutes is repealed.

SB668,43 Section 43. 138.14 (1) (br), (jm) and (m) of the statutes are created to read:

SB668,,110 138.14 (1) (br) “Customer identification number” means a unique number assigned to a customer in a manner specified by the division, or by the database provider acting at the direction of the division.

SB668,,111 (jm) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b).

SB668,,112 (m) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).

SB668,44 Section 44. 138.14 (4) (a) 1. (intro.) of the statutes is amended to read:

SB668,,114 138.14 (4) (a) 1. (intro.) Application Subject to subd. 1g., application for licenses under sub. (5) shall be made to the division in writing in the form and manner prescribed by the division and shall include all of the following:

SB668,45 Section 45. 138.14 (4) (a) 1g., 1m. and 1r. of the statutes are created to read:

SB668,,116 138.14 (4) (a) 1g. The division shall utilize the nationwide multistate licensing system and registry, and the provisions of s. 224.35 shall apply, with respect to applicants and licensees under this section.

SB668,,117 1m. An applicant or licensee under this section shall register with, and maintain a valid unique identifier issued by, the nationwide multistate licensing system and registry.

SB668,,118 1r. Each licensee shall keep current and accurate all material information on file with the division and the nationwide multistate licensing system and registry as provided in s. 224.35 (6).

SB668,46 Section 46. 138.14 (4) (a) 2. c. of the statutes is created to read:

SB668,,120 138.14 (4) (a) 2. c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35.

SB668,47 Section 47. 138.14 (5) (c) of the statutes is repealed and recreated to read:

SB668,,122 138.14 (5) (c) A license may be renewed or reinstated as provided in s. 224.35 (7). A license that is not renewed or reinstated by the end of the reinstatement period provided in s. 224.35 (7) shall be deemed to have expired on December 31 of the year immediately preceding the reinstatement period, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year.

SB668,48 Section 48. 138.14 (6) (a) of the statutes is amended to read:

SB668,,124 138.14 (6) (a) Whenever a licensee changes the address of its place of business to another location within the same city, village, or town, the licensee shall give written notice thereof, in a form and manner prescribed by the division, to the division within 10 business days of the relocation and the division shall replace the original license with an amended license showing the new address. If so directed by the division, the licensee shall provide any notice required under this subsection to the nationwide multistate licensing system and registry as provided in s. 224.35. No change in the place of business of a licensee to a different city, village, or town is permitted under the same license.

SB668,49 Section 49. 138.14 (6) (b) 1. b. of the statutes is amended to read:

SB668,,126 138.14 (6) (b) 1. b. A seller of checks money transmitter business under ch. 217.

SB668,50 Section 50. 138.14 (7) (d) of the statutes is amended to read:

SB668,,128 138.14 (7) (d) A licensee shall make an annual report to the division for each calendar year on or before March 15 of the following year. The report shall include business transacted by the licensee under this section and shall give all reasonable and relevant information that the division may require, including the information required for the division’s reports under par. (e). The reports shall be made in the form and manner prescribed by the division and submit financial statements as provided in s. 224.35 (8).

SB668,51 Section 51. 138.14 (8) (c) of the statutes is amended to read:

SB668,,130 138.14 (8) (c) The division shall have the same power to conduct hearings, take testimony, and secure evidence as is provided in ss. 217.17 and 217.18 powers granted under s. 217.11.

SB668,52 Section 52. 138.14 (9) (a) 4. of the statutes is amended to read:

SB668,,132 138.14 (9) (a) 4. That the licensee made a material misstatement, or knowingly omitted a material fact, in an application for a license or in information furnished to the division or the nationwide multistate licensing system and registry.

SB668,53 Section 53. 138.14 (14) (c) 1. of the statutes is amended to read:

SB668,,134 138.14 (14) (c) 1. Allow a licensee accessing the database to check a customer’s unique identification number that is assigned to the customer in a manner specified by the division customer identification number. A customer’s unique customer identification number may not be based on the customer’s social security number.

SB668,54 Section 54. 138.14 (14) (m) of the statutes is amended to read:

SB668,,136 138.14 (14) (m) Before entering into a payday loan, a licensee shall submit to the database provider the customer’s name; unique customer identification number that is assigned in a manner specified by the division; address; driver license number or other method of state identification; the amount of the transaction; the customer’s check number, if applicable; the date of the transaction; the maturity date of the loan; and any other information reasonably required by the division, in a format approved by the division.

SB668,55 Section 55. 138.14 (15) (title) of the statutes is amended to read:

SB668,,138 138.14 (15) (title) Penalties; reporting violations.

SB668,56 Section 56. 138.14 (15) (c) of the statutes is created to read:

SB668,,140 138.14 (15) (c) The division may report any enforcement action, any violation of this section or of an administrative rule or order, or other relevant information to the nationwide multistate licensing system and registry. Except as provided in s. 224.35 (4) (b) and (c), these reports to the nationwide multistate licensing system and registry shall be confidential and are not subject to public copying or inspection under s. 19.35 (1).

SB668,57 Section 57. 186.113 (22) (title) of the statutes is amended to read:

SB668,,142 186.113 (22) (title) Community currency exchange and seller of checks money transmitter.

SB668,58 Section 58. 214.04 (20) of the statutes is amended to read:

SB668,,144 214.04 (20) Upon receiving approval from the division, to act as an authorized agent for its customers in the business and functions under ch. 217. A savings bank that applies to function as a seller of checks money transmitter shall meet the application requirements under ch. 217. The division may not charge a license or investigation fee for an application under this subsection. The seller of checks money transmitter function of a savings bank shall be under the jurisdiction and supervision of the division. The division shall enforce ch. 217 as it applies to savings banks. The division shall determine what records shall be maintained and shall require the segregation of funds that are necessary for a savings bank to operate as a seller of checks money transmitter under this subsection and ch. 217.

SB668,59 Section 59. 215.13 (41) (title) of the statutes is amended to read:

SB668,,146 215.13 (41) (title) Seller of checks Money transmitter.

SB668,60 Section 60. Chapter 217 of the statutes is repealed and recreated to read:

SB668,,148 CHAPTER 217

SB668,,149 MONEY TRANSMITTERS

SB668,,150 217.01 Short title. This chapter may be cited as the “Model Money Transmission Modernization Law.”

SB668,,151 217.02 Definitions. In this chapter:

SB668,,152 (1) “Acting in concert” means persons knowingly acting together with a common goal of jointly acquiring control of a licensee, whether or not pursuant to an express agreement.

SB668,,153 (2) “Authorized delegate” means a person a licensee designates to engage in money transmission on behalf of the licensee.

SB668,,154 (3) “Average daily money transmission liability” means the amount of a licensee’s outstanding money transmission obligations at the end of each day in a given period of time, added together, and divided by the total number of days in the given period of time. For purposes of calculating average daily money transmission liability under this chapter for any licensee required to do so, the given period of time shall be the quarters ending March 31, June 30, September 30, and December 31.

SB668,,155 (4) “Bank Secrecy Act” means the Bank Secrecy Act, 31 USC 5311 et seq., and its implementing regulations.

SB668,,156 (5) “Closed loop stored value” means stored value that is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.

SB668,,157 (6) (a) “Control” means any of the following:

SB668,,158 1. The power to vote, directly or indirectly, at least 25 percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee.

SB668,,159 2. The power to elect or appoint a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a licensee or person in control of a licensee.

SB668,,160 3. The power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee.

SB668,,161 (b) A person is presumed to exercise a controlling influence within the meaning of par. (a) 3. if the person holds the power to vote, directly or indirectly, at least 10 percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee. A person presumed to exercise a controlling influence under this paragraph may rebut the presumption of control by showing that the person is a passive investor.