AB617: Bill Text

AB617,,737 321.60 (1) (a) 12. A license or certificate of registration issued by the department of financial institutions, or a division of it, under ss. 138.09, 138.12, 138.14, 202.13, 202.14, 217.06 217.05, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, 224.725, or 224.93 or subch. IV of ch. 551.

AB617,171 Section 171. 422.202 (3) (c) of the statutes is amended to read:

AB617,,739 422.202 (3) (c) A merchant may not, in the same transaction, be subject to the penalty in s. 138.09 (9) (b), 218.0161 (1), or 425.305 and the penalty in s. 425.304, based on the assessment of the same additional charges.

AB617,172 Section 172. 946.79 (1) (a) of the statutes is amended to read:

AB617,,741 946.79 (1) (a) “Financial institution” means a bank, savings bank, savings and loan association, credit union, loan company, sales finance company, insurance premium finance company, community currency exchange, seller of checks money transmitter, insurance company, trust company, securities broker-dealer, as defined in s. 551.102 (4), mortgage banker, mortgage broker, pawnbroker, as defined in s. 134.71 (1) (e), telegraph company, or dealer in precious metals, stones, or jewels.

AB617,173 Section 173. DFI-Bkg 74.01 (1) of the administrative code is amended to read:

AB617,,743 DFI-Bkg 74.01 (1) “Actual process of collection” means regularly receiving payments at periodic intervals, or debtor contacted within last 30 days and promise of payment received, or an account referred for legal actions where the collection agency has advanced legal costs. A collection agency and its client may by written contract agree to a different actual process of collection, but this different actual process of collection must require more effort on the part of the collection agency than merely listing the account, inputting the account into its database, writing one letter or making one call, or similar levels of effort. This subsection first applies to contractual relationships entered into between a collection agency and its client after March 1, 1993.

AB617,174 Section 174. DFI-Bkg 74.01 (2) of the administrative code is repealed.

AB617,175 Section 175. DFI-Bkg 74.01 (5m) of the administrative code is created to read:

AB617,,746 DFI-Bkg 74.01 (5m) “Licensee” means a person licensed under s. 218.04, Stats.

AB617,176 Section 176. DFI-Bkg 74.03 (title) of the administrative code is amended to read:

AB617,,748 DFI-Bkg 74.03 (title) Office relocations and other Other changes.

AB617,177 Section 177. DFI-Bkg 74.03 (1) of the administrative code is repealed.

AB617,178 Section 178. DFI-Bkg 74.03 (2) of the administrative code is amended to read:

AB617,,751 DFI-Bkg 74.03 (2) Other changes. A licensee shall notify the division of any change to the information provided in the licensee’s renewal license application or provided in a previous notice of change filed by the licensee with the division under this section. The notice shall be in writing and, except in the case of a relocation, be received by the division within 10 days after the change. Each licensee shall keep current and accurate all material information on file with the division and the nationwide multistate licensing system and registry as provided in s. 224.35 (6), Stats. The licensee shall provide any additional information, data, and records regarding the a change to the division within 20 days after the division requests the information, data, or records. Any change that is subject to the notice requirement shall be subject to the approval of the division. In reviewing the change or relocation, the division shall apply the same criteria as the criteria for approval of an original license application. Except in the case of a relocation, the division shall determine the cost of investigating and processing the change. The licensee shall pay the division’s cost within 30 days after the division demands payment. If so directed by the division, the licensee shall provide any notice required under this subsection to the nationwide multistate licensing system and registry as provided in s. 224.35, Stats.

AB617,179 Section 179. DFI-Bkg 74.04 (1) (intro.) of the administrative code is amended to read:

AB617,,753 DFI-Bkg 74.04 (1) Agreement with creditor. (intro.) Prior to accepting accounts for collection from a creditor or earning or collecting a fee or commission, the licensee shall enter into a written agreement with the creditor. The agreement shall do all of the following:

AB617,180 Section 180. DFI-Bkg 74.05 (1) (intro.) of the administrative code is amended to read:

AB617,,755 DFI-Bkg 74.05 (1) Remittance statement to be furnished each creditor. (intro.) Licensee shall provide a remittance statement and remit any and all money due to any and all creditors or forwarders within 30 days from on or before the last day of the month following the close of the month during which the collection was effected as provided in s. 218.04 (5) (a) 4., Stats. The remittance statement shall set forth all of the following:

AB617,181 Section 181. DFI-Bkg 74.06 of the administrative code is renumbered DFI-Bkg 74.06 (2) and amended to read:

AB617,,757 DFI-Bkg 74.06 (2) Each licensee shall deposit in a trust fund account in any approved financial institution promptly after collection, sufficient funds to pay all moneys due or owing all creditors or forwarders. The trust fund account shall be used only for this purpose. A licensee may maintain trust funds in an interest bearing savings account or instrument provided it is identified as a “trust account”. account.”

AB617,,758 (3) Sufficient funds shall be maintained in the trust account or trust accounts to pay all moneys due or owing all creditors or forwarders. For the purpose of determining sufficient funds, amounts collected by a 3rd party, but not yet deposited into the licensee’s trust account, are not considered trust funds.

AB617,,759 (4) Sufficient funds shall be maintained in or made available to the trust checking account on which remittance checks or electronic debits are drawn or made to pay all checks and debits when presented.

AB617,,760 (5) The licensee shall have sufficient documentation from the trust account or trust accounts available to make an adequate examination.

AB617,182 Section 182. DFI-Bkg 74.06 (1) of the administrative code is created to read:

AB617,,762 DFI-Bkg 74.06 (1) A licensee’s trust checking account shall be identified as a “trust account.”

AB617,183 Section 183. DFI-Bkg 74.06 (6) of the administrative code is created to read:

AB617,,764 DFI-Bkg 74.06 (6) Third party payment processors shall not be given authority to withdraw funds from the licensee’s trust account or accounts.

AB617,184 Section 184. DFI-Bkg 74.07 (1) (j) of the administrative code is created to read:

AB617,,766 DFI-Bkg 74.07 (1) (j) A roster of all collectors and solicitors employed by the licensee. The list shall be updated and accurate at all times and set forth all of the following:

AB617,,767 1. The individual’s first and last name, home address, and indication of whether the individual works from the individual’s residence.

AB617,,768 2. The first and last name of any alias that is used by the individual, the date the individual started to use the alias, and, if applicable, the date the individual stopped using the alias.

AB617,,769 3. The date the individual was hired by the licensee.

AB617,,770 4. The date the individual’s employment with the licensee was terminated, if applicable.

AB617,185 Section 185. DFI-Bkg 74.10 (1) (c) of the administrative code is created to read:

AB617,,772 DFI-Bkg 74.10 (1) (c) A licensee may not contract for or assess a fee, commission, or any other charge to a creditor for returning any account to the creditor that is not in the actual process of collection, other than a contracted fee for reasonable costs incurred by the licensee for each account placed in error by the creditor.

AB617,186 Section 186. DFI-Bkg 74.10 (2) of the administrative code is renumbered DFI-Bkg 74.10 (2) (b).

AB617,187 Section 187. DFI-Bkg 74.10 (2) (a) of the administrative code is created to read:

AB617,,775 DFI-Bkg 74.10 (2) (a) In this subsection, “terminated,” with respect to a license, includes a license that is surrendered, revoked, or expired.

AB617,188 Section 188. DFI-Bkg 74.11 (10) of the administrative code is created to read:

AB617,,777 DFI-Bkg 74.11 (10) Trade names. (a) A licensee may not conduct business in this state under any name or names other than the name or names listed on the license.

AB617,,778 (b) Before using any trade name, a licensee shall obtain approval from the division for the use of the trade name.

AB617,,779 (c) A licensee may not conduct business in this state using a trade name that includes a corporate identifier.

AB617,189 Section 189. DFI-Bkg 74.12 of the administrative code is repealed.

AB617,190 Section 190. DFI-Bkg 74.14 of the administrative code is repealed.

AB617,191 Section 191. DFI-Bkg 74.16 (9) of the administrative code is amended to read:

AB617,,783 DFI-Bkg 74.16 (9) Engage in other conduct which that can reasonably be expected to threaten or harass the debtor or a person related to the debtor including conduct which violates.

AB617,,784 (9g) Violate the Federal Fair Debt Collection Practices Act.

AB617,192 Section 192. DFI-Bkg 74.16 (9m) of the administrative code is created to read:

AB617,,786 DFI-Bkg 74.16 (9m) Violate any federal or state statute, rule, or regulation that relates to practice as a collection agency.

AB617,193 Section 193. DFI-Bkg 75.01 (1m) of the administrative code is created to read:

AB617,,788 DFI-Bkg 75.01 (1m) “Customer identification number” has the meaning given in s. 138.14 (1) (br), Stats.

AB617,194 Section 194. DFI-Bkg 75.08 (1) (c) 3. of the administrative code is amended to read:

AB617,,790 DFI-Bkg 75.08 (1) (c) 3. Identify the name, address, telephone number, and unique identification number of the customer identification number.

AB617,195 Section 195. DFI-Bkg 75.08 (2) (a) 4. of the administrative code is amended to read:

AB617,,792 DFI-Bkg 75.08 (2) (a) 4. Identify the name, address, telephone number, and unique identification number of the customer identification number.

AB617,196 Section 196. Nonstatutory provisions.

AB617,,794 (1) Transition of license information.

AB617,,795 (a) In this subsection:

AB617,,796 1. “Division” means the division of banking in the Department of Financial Institutions.

AB617,,797 2. “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b).

AB617,,798 (b) All persons holding a license under s. 138.09, 138.14, or 218.02 shall transition their license information onto the nationwide multistate licensing system and registry before January 31 of the year in which this paragraph takes effect. The division may suspend the license of any licensee subject to this paragraph that has not transitioned its license information onto the nationwide multistate licensing system and registry by March 31 of the year in which this paragraph takes effect.

AB617,,799 (c) All persons holding a license under ch. 217 shall transition their license information onto the nationwide multistate licensing system and registry before March 31 of the year in which this paragraph takes effect. The division may suspend the license of any licensee under ch. 217 that has not transitioned its license information onto the nationwide multistate licensing system and registry by March 31 of the year in which this paragraph takes effect.

AB617,,800 (d) All persons holding a license under s. 138.12 shall transition their license information onto the nationwide multistate licensing system and registry between January 2 of the year in which this paragraph takes effect and March 31 of the year in which this paragraph takes effect. The license of any licensee under s. 138.12 that has not transitioned its license information onto the nationwide multistate licensing system and registry by March 31 of the year in which this paragraph takes effect will expire on April 30 of the year in which this paragraph takes effect, and such licensee will be required to apply for and receive a new license to continue operating as an insurance premium finance company in this state.

AB617,,801 (e) All persons holding a license under s. 218.04 shall transition their license information onto the nationwide multistate licensing system and registry between March 1 of the year in which this paragraph takes effect and May 31 of the year in which this paragraph takes effect. The license of any licensee under s. 218.04 that has not transitioned its license information onto the nationwide multistate licensing system and registry by May 31 of the year in which this paragraph takes effect will expire on June 30 of the year in which this paragraph takes effect, and such licensee will be required to apply for and receive a new license to continue operating as a collection agency in this state.

AB617,,802 (f) All persons holding a license under s. 218.0114, except for motor vehicle dealers within the meaning of s. 218.0101 (23), or s. 218.05 shall transition their license information onto the nationwide multistate licensing system and registry before September 30 of the year in which this paragraph takes effect. The division may suspend the license of any licensee under s. 218.0114, except for motor vehicle dealers within the meaning of s. 218.0101 (23), or s. 218.05 that has not transitioned its license information onto the nationwide multistate licensing system and registry by September 30 of the year in which this paragraph takes effect.

AB617,,803 (2) Transition of renewal fee dates.

AB617,,804 (a) In this subsection, “department” means the Department of Financial Institutions.

AB617,,805 (b) With regard to a license under s. 138.12 that expires on April 30 of the year in which this paragraph takes effect, the licensee shall pay to the department no later than March 31 of that year a license fee equal to two-thirds of the annual license fee specified under s. 138.12 (3) (b), to cover the period of May 1 through the new December 31 license expiration date.

AB617,,806 (c) With regard to a license under s. 218.04 that expires on June 30 of the year in which this paragraph takes effect, the licensee shall pay to the department no later than June 1 of that year a license fee equal to one-half of the annual license fee specified under s. 218.04 (3) (b) to cover the period of July 1 through the new December 31 license expiration date.

AB617,197 Section 197. Effective date.

AB617,,808 (1) Notwithstanding s. 227.265, this act takes effect on the first January 1 occurring at least 90 days after publication.

AB617,,809 (end)