Wisconsin Legislature: 267,113

267,101 Section 101 . 218.04 (4) (am) 1. of the statutes is amended to read:

218.04 (4) (am) 1. The applicant fails to provide any application information required under sub. (3) (a) 1. by the division.

267,102 Section 102 . 218.04 (4) (ap) and (c) of the statutes are created to read:

218.04 (4) (ap) An employee of a licensed collection agency may work from the employee's residence. An employee's resident address may not be presented to the public as a location or office of the collection agency, through advertising or other means of communication. No physical records of the collection agency may be maintained at an employee's residence. A separate license under par. (4) (a) is not required for a residence that meets the requirements of this paragraph.

(c) If an applicant fails to complete the application for an initial license within 60 days after the division provides written notice of the incomplete application, the application is considered abandoned and the investigation fee shall not be refunded. An applicant whose application is abandoned under this paragraph may reapply to obtain a new license.

267,103 Section 103 . 218.04 (5) (a) (intro.), 1., 2., 3. and 4. of the statutes are amended to read:

218.04 (5) (a) (intro.) The division may suspend or revoke any license issued under this section if the division finds that any of the following applies:

1. The licensee has violated any of the provisions of this section, rules promulgated under this section, or any lawful order of the division made thereunder; under this section.

2. Any fact or condition exists which, if it had existed at the time of the original application for such the license, would have warranted the division in refusing to issue such the license; .

3. The licensee has failed to pay the annual license fee or to maintain in effect the bond required under sub. (3) (d);.

4. The licensee has failed to remit money due to any and all claimants or forwarders within 30 days from on or before the last day of the month following the close of the month during which the collection was effected; or.

267,104 Section 104 . 218.04 (5) (a) 6. of the statutes is created to read:

218.04 (5) (a) 6. The licensee has made a material misstatement, or knowingly omitted a material fact, in an application for a license or in information furnished to the division or the nationwide multistate licensing system and registry.

267,105 Section 105. 218.04 (5) (c) of the statutes is amended to read:

218.04 (5) (c) In the event of the death of a licensee, if the licensee is an individual, or of the partners, if the licensee is a partnership who is a sole proprietor, the license of the agency shall terminate as of the date of death of said the licensee, except the division may reinstate a license if the estate of the former licensee signifies to the division within 45 days its intention to continue the business of the agency.

267,106 Section 106 . 218.04 (6) (title) of the statutes is amended to read:

218.04 (6) (title) Licenses; posting; changes of location; renewal; discontinued operations.

267,107 Section 107. 218.04 (6) (a) of the statutes is repealed and recreated to read:

218.04 (6) (a) If a licensee intends to change the address of its place of business to another location, the licensee shall give written notice of the change, in a form and manner prescribed by the division, at least 30 days prior to the relocation.

267,108 Section 108. 218.04 (6) (b) of the statutes is amended to read:

218.04 (6) (b) Every licensee applying for a renewal of a license shall, on or before the first day of June, pay in advance to the division the annual license fee. A license may be renewed or reinstated as provided in s. 224.35 (7). A license that is not renewed or reinstated by the end of the reinstatement period provided in s. 224.35 (7) shall be deemed to have expired on December 31 of the year immediately preceding the reinstatement period, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year.

267,109 Section 109 . 218.04 (6) (c) (intro.) and 2. of the statutes are amended to read:

218.04 (6) (c) (intro.) Before discontinuing operating as a collection agency under the provisions of this section, every licensee shall furnish the division with proof in a form to be determined by the division and approved by the advisory committee that all of the following are satisfied:

2. All Wisconsin client accounts have been returned to the claimants or forwarders.

267,110 Section 110 . 218.04 (7) (title) of the statutes is amended to read:

218.04 (7) (title) Powers of division ; advisory committees.

267,111 Section 111 . 218.04 (7) (a) of the statutes is amended to read:

218.04 (7) (a) To issue any general or special order in execution of or supplementary to this chapter, including such orders as may be necessary to protect the public from oppressive or deceptive practices of licensees and to prevent evasions of this chapter.

267,112 Section 112. 218.04 (8) of the statutes is repealed.

267,113 Section 113 . 218.04 (9) of the statutes is created to read:

218.04 (9) Collectors and solicitors; aliases; unsigned notices. (a) A collection agency is responsible for, and shall supervise the acts of, its collectors and solicitors and any other person who otherwise acts on behalf of the collection agency.

(b) In any oral or written communication with a debtor, any collector or solicitor may use a separate alias. This alias shall include a first and last name. No collector or solicitor may have more than one alias. A collector or solicitor may not change an alias unless for good cause and the division is first notified of the change. Collectors or solicitors employed by a licensee may not use the same alias.

267,114 Section 114 . 218.04 (9g) (c) of the statutes is amended to read:

218.04 (9g) (c) Promptly Within 48 hours after collection, a licensee shall deposit and maintain in the trust account sufficient funds to pay all money due any claimant or forwarder. A licensee may not use the trust account for any other purpose.

267,115 Section 115. 218.04 (9m) (e) of the statutes is amended to read:

218.04 (9m) (e) The division shall cause notice to be given by publication of a class 3 notice, under ch. 985, if no action has been commenced under par. (f), calling on all persons who may have claims against such licensee, to present the same to the division, and make legal proof thereof at a place and within a time, to be therein specified. The division may mail a similar notice to all persons whose names appear as claimants or forwarders upon the books and records of the licensee or as may appear in the records of the division on the sworn reports required to be furnished the division according to the provisions of sub. (10). Any claimant or forwarder whose portion of the collection or collections has not been properly remitted shall file a claim which shall be considered as a preferred claim for the amount actually due the claimant or forwarder after deducting any commission or fee that may be due and owing the licensee. If the division doubts the justice and validity of any claim, the division may reject the same and serve notice of such rejection upon the claimant either by mail or personally. An affidavit of the service of such notice, which shall be prima facie evidence thereof, shall be filed with the division. An action upon a claim so rejected must be brought in the circuit court for the county wherein the licensee is located within 30 days after such service of such notice of rejection of claim has been filed. Claims presented after the expiration of the time fixed in the notice to the claimants or forwarders shall be entitled to receive only liquidating dividends declared after presentation, unless otherwise ordered by the court. The court may fix a date after which all claims shall be barred.

267,116 Section 116. 218.04 (10) (a) of the statutes is repealed and recreated to read:

218.04 (10) (a) A licensee shall make an annual report and submit financial statements as provided in s. 224.35 (8).

267,117 Section 117 . 218.04 (10) (b) of the statutes is amended to read:

218.04 (10) (b) The division shall require the licensee to keep such books and records in the licensee's place of business as will enable the division to determine whether the provisions of this section are being complied with. Every such licensee shall preserve the records of final entry used in such business for a period of at least 6 years after final remittance is made on any account placed with the licensee for collection or after any account has been returned to the claimant on which one or more payments have been paid.

267,118 Section 118 . 218.04 (13) (title) of the statutes is amended to read:

218.04 (13) (title) Enforcement ; reporting violations.

267,119 Section 119 . 218.04 (13) of the statutes is renumbered 218.04 (13) (a) and amended to read:

218.04 (13) (a) The division shall have the duty, power, jurisdiction and authority to investigate, ascertain and determine whether this section or the lawful orders issued hereunder are being violated and for such purposes the division shall have all the powers conferred by subs. (4) and (5). The If warranted, the division shall report all violations to the district attorney of the proper county for prosecution.

267,120 Section 120 . 218.04 (13) (b) of the statutes is created to read:

218.04 (13) (b) 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).

267,121 Section 121. 218.05 (1) (e) and (f) of the statutes are created to read:

218.05 (1) (e) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b).

(f) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).

267,122 Section 122. 218.05 (3) (a) 2. of the statutes is amended to read:

218.05 (3) (a) 2. The county and municipality, with street and number, if any, where the community currency exchange is to be conducted; and

267,123 Section 123. 218.05 (3) (am) 2. c. of the statutes is created to read:

218.05 (3) (am) 2. c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35.

267,124 Section 124. 218.05 (3) (c) of the statutes is amended to read:

218.05 (3) (c) Before any license is issued to a community currency exchange the applicant shall file annually with and have approved by the division a surety bond in a form acceptable to the division in the principal sum of $5,000, issued by an insurer authorized to do business in this state. The bond shall run to the state of Wisconsin and shall be for the benefit of any creditors of the community currency exchange for any liability incurred for any sum due to any payee of any check, draft or money order left with the community currency exchange for collection, and also for any penalties that may be imposed under this section. If the division finds at any time the bond is insecure or exhausted or otherwise doubtful, an additional bond in like amount to be approved by the division shall be filed by the licensee within 30 days after written demand by the division.

267,125 Section 125. 218.05 (3) (d), (e) and (f) of the statutes are created to read:

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

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

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

267,126 Section 126. 218.05 (10) (a) and (c) of the statutes are amended to read:

218.05 (10) (a) Such The license shall state the name of the licensee and the address at which the business is to be conducted. Such The license shall be kept conspicuously posted in the place of business of the licensee and shall not be transferable or assignable.

(c) Whenever a licensee shall wish to change the licensee's place of business to any location other than that originally set forth in the license, the licensee shall give written notice thereof to the division and if the change is approved the division shall attach to the license, in writing, a rider stating the new address or location of the community currency exchange in a form and manner acceptable to the division. 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.

267,127 Section 127. 218.05 (11) (intro.) of the statutes is amended to read:

218.05 (11) Renewal License expiration; renewal; reinstatement. (intro.) Every licensee shall, on or before December 20, pay to the division the sum of $300 as an A license expires annually on December 31 of the calendar year in which the initial license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year. The annual license fee for the next succeeding calendar year and, at the same time, shall file with the division is $300 and shall be paid to the division in a form and manner acceptable to the division, together with the annual bond and insurance policy or policies in the same amount and of the same character as required by subs. (3) (c) and (6). Licenses may be renewed and reinstated as provided in s. 224.35 (7). The division may not renew a license under this section if any of the following applies:

267,128 Section 128 . 218.05 (12) (title) of the statutes is amended to read:

218.05 (12) (title) Revocation; restriction and suspension; reporting violations.

267,129 Section 129. 218.05 (12) (a) 1. of the statutes is amended to read:

218.05 (12) (a) 1. The licensee has failed to pay the annual license fee or to maintain in effect the required bond or insurance policy or policies or to comply with any order, decision or finding of the division made pursuant to this section.

267,130 Section 130. 218.05 (12) (a) 4. of the statutes is created to read:

218.05 (12) (a) 4. 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.

267,131 Section 131. 218.05 (12) (f) of the statutes is created to read:

218.05 (12) (f) 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).

267,132 Section 132. 218.05 (14) (a) of the statutes is repealed and recreated to read:

218.05 (14) (a) A licensee shall make an annual report and submit financial statements as provided in s. 224.35 (8).

267,133 Section 133 . 220.02 (2) (c) of the statutes is amended to read:

220.02 (2) (c) Sellers of checks Money transmitters under ch. 217.

267,134 Section 134 . 220.02 (3) of the statutes is amended to read:

220.02 (3) It is the intent of sub. (2) to give the division jurisdiction to enforce and carry out all laws relating to banks or banking in this state, including those relating to state banks, savings banks, savings and loan associations, and trust company banks, and also all laws relating to small loan companies or other loan companies or agencies, finance companies, insurance premium finance companies, motor vehicle dealers, adjustment service companies, community currency exchanges, mortgage bankers, mortgage loan originators, mortgage brokers, and collection agencies and those relating to sellers of checks money transmitters under ch. 217, whether doing business as corporations, individuals, or otherwise, but to exclude laws relating to credit unions.

267,135 Section 135. 220.06 (1m) of the statutes is amended to read:

220.06 (1m) No division employee may examine a bank or licensee in which that person is interested as a stockholder, officer, or employee. No division employee may examine a bank or licensee located in the same village, city, or county with any bank or licensee in which that person is so interested. Employees in the division, and each member and employee of the banking institutions review board, shall keep secret all facts and information obtained in the course of examinations or from reports not under s. 221.1002 (1) filed by a bank or licensee with the division, except so far as the public duty of the person requires reporting upon or taking special action regarding the affairs of any bank or licensee, and except when called as a witness in any criminal proceeding or trial in a court of justice. The division may furnish to the federal deposit insurance corporation, to a federal home loan bank, or to any regulatory authority for state or federal financial institutions, insurance, or securities, or to any organization the membership of which is made up of regulatory authorities for state or federal financial institutions, insurance, or securities, a copy of any examination made of any such bank or licensee or of any report made by such bank or licensee and may give access to and disclose to the corporation or, to any regulatory authority for state or federal financial institutions, insurance, or securities, or to any organization the membership of which is made up of regulatory authorities for state or federal financial institutions, insurance, or securities, any information possessed by the division, or to a federal home loan bank any information created by the division, with reference to the conditions or affairs of any such insured bank or licensee if the regulatory authority agrees to treat all information received with the same degree of confidentiality as applies to reports of examination that are in the custody of the division.

267,136 Section 136 . 224.35 (1g) of the statutes is created to read:

224.35 (1g) Definitions. In this section:

(a) “Division” means the division of banking.

(b) “Nationwide multistate licensing system and registry" means the multistate system developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC, or any successor or affiliate entity, for the licensing and registration of persons in financial services industries.

(c) “Reinstatement period” means the period beginning on the first day of January and ending on the last day of February of the year following the expiration of a license, or such other period prescribed by the division.

(d) “Renewal period” means the period beginning on November 1 and ending on December 31, or such other period prescribed by the division.

(e) “Unique identifier" means a number or other identifier assigned by protocols established by the nationwide multistate licensing system and registry.

267,137 Section 137. 224.35 (1m) (bm) of the statutes is created to read: