AB617: Bill Text

AB617,,588 2. All Wisconsin client accounts have been returned to the claimants or forwarders.

AB617,110 Section 110. 218.04 (7) (title) of the statutes is amended to read:

AB617,,590 218.04 (7) (title) Powers of division; advisory committees.

AB617,111 Section 111. 218.04 (7) (a) of the statutes is amended to read:

AB617,,592 218.04 (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.

AB617,112 Section 112. 218.04 (8) of the statutes is repealed.

AB617,113 Section 113. 218.04 (9) of the statutes is created to read:

AB617,,595 218.04 (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.

AB617,,596 (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.

AB617,,597 (c) A licensee may forward printed collection notices to a debtor that are unsigned.

AB617,114 Section 114. 218.04 (9g) (c) of the statutes is amended to read:

AB617,,599 218.04 (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.

AB617,115 Section 115. 218.04 (9m) (e) of the statutes is amended to read:

AB617,,601 218.04 (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.

AB617,116 Section 116. 218.04 (10) (a) of the statutes is repealed and recreated to read:

AB617,,603 218.04 (10) (a) A licensee shall make an annual report and submit financial statements as provided in s. 224.35 (8).

AB617,117 Section 117. 218.04 (10) (b) of the statutes is amended to read:

AB617,,605 218.04 (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.

AB617,118 Section 118. 218.04 (13) (title) of the statutes is amended to read:

AB617,,607 218.04 (13) (title) Enforcement; reporting violations.

AB617,119 Section 119. 218.04 (13) of the statutes is renumbered 218.04 (13) (a) and amended to read:

AB617,,609 218.04 (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.

AB617,120 Section 120. 218.04 (13) (b) of the statutes is created to read:

AB617,,611 218.04 (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).

AB617,121 Section 121. 218.05 (1) (e) and (f) of the statutes are created to read:

AB617,,613 218.05 (1) (e) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b).

AB617,,614 (f) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).

AB617,122 Section 122. 218.05 (3) (a) 2. of the statutes is amended to read:

AB617,,616 218.05 (3) (a) 2. The county and municipality, with street and number, if any, where the community currency exchange is to be conducted; and

AB617,123 Section 123. 218.05 (3) (am) 2. c. of the statutes is created to read:

AB617,,618 218.05 (3) (am) 2. c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35.

AB617,124 Section 124. 218.05 (3) (c) of the statutes is amended to read:

AB617,,620 218.05 (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.

AB617,125 Section 125. 218.05 (3) (d), (e) and (f) of the statutes are created to read:

AB617,,622 218.05 (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.

AB617,,623 (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.

AB617,,624 (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).

AB617,126 Section 126. 218.05 (10) (a) and (c) of the statutes are amended to read:

AB617,,626 218.05 (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.

AB617,,627 (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.

AB617,127 Section 127. 218.05 (11) (intro.) of the statutes is amended to read:

AB617,,629 218.05 (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:

AB617,128 Section 128. 218.05 (12) (title) of the statutes is amended to read:

AB617,,631 218.05 (12) (title) Revocation; restriction and suspension; reporting violations.

AB617,129 Section 129. 218.05 (12) (a) 1. of the statutes is amended to read:

AB617,,633 218.05 (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.

AB617,130 Section 130. 218.05 (12) (a) 4. of the statutes is created to read:

AB617,,635 218.05 (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.

AB617,131 Section 131. 218.05 (12) (f) of the statutes is created to read:

AB617,,637 218.05 (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).

AB617,132 Section 132. 218.05 (14) (a) of the statutes is repealed and recreated to read:

AB617,,639 218.05 (14) (a) A licensee shall make an annual report and submit financial statements as provided in s. 224.35 (8).

AB617,133 Section 133. 220.02 (2) (c) of the statutes is amended to read:

AB617,,641 220.02 (2) (c) Sellers of checks Money transmitters under ch. 217.

AB617,134 Section 134. 220.02 (3) of the statutes is amended to read:

AB617,,643 220.02 (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.

AB617,135 Section 135. 220.06 (1m) of the statutes is amended to read:

AB617,,645 220.06 (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.

AB617,136 Section 136. 224.35 (1g) of the statutes is created to read:

AB617,,647 224.35 (1g) Definitions. In this section:

AB617,,648 (a) “Division” means the division of banking.

AB617,,649 (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.

AB617,,650 (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.

AB617,,651 (d) “Renewal period” means the period beginning on November 1 and ending on December 31, or such other period prescribed by the division.

AB617,,652 (e) “Unique identifier” means a number or other identifier assigned by protocols established by the nationwide multistate licensing system and registry.

AB617,137 Section 137. 224.35 (1m) (bm) of the statutes is created to read:

AB617,,654 224.35 (1m) (bm) The division may require an applicant or licensee, or an individual with the power to direct the management or policies of the applicant or licensee, to submit an independent credit report from a consumer reporting agency, an investigative background report prepared by an independent search firm, fingerprints, or any other personal or professional history information deemed necessary by the division. The division may require fingerprints for the purposes of identifying the individual and to determine whether the individual has a record of warrants, arrests, or convictions in any jurisdiction. Fingerprints may be submitted, directly or as provided in s. 224.35 (2), to the federal bureau of investigation and any government agency or entity authorized to receive this information for a state and national criminal history record check.

AB617,138 Section 138. 224.35 (1r), (6), (7) and (8) of the statutes are created to read:

AB617,,656 224.35 (1r) Applicable licensed activities. The division shall utilize the nationwide multistate licensing system and registry, as provided in this section, with respect to applicants and licensees under ss. 138.09, 138.12, 138.14, 217.05, 218.0114 except for motor vehicle dealers within the meaning of s. 218.0101 (23), 218.02, 218.04, 218.05, 224.72, and 224.725 and with respect to applicants and registrants under s. 224.722.

AB617,,657 (6) Changes to information. A licensee shall keep current and accurate all material information on file with the division and the nationwide multistate licensing system and registry. If the information changes in any material respect, the licensee must notify the division and the nationwide multistate licensing system of the change within 10 days after the change.

AB617,,658 (7) License renewal and reinstatement. (a) During the renewal period, a licensee may renew a license by submitting all of the following through the nationwide multistate licensing system and registry or in such other manner as directed by the division:

AB617,,659 1. A renewal application, in a form and manner acceptable to the division.

AB617,,660 2. The annual fee required to maintain the license, if applicable.

AB617,,661 3. The bond or insurance information required to maintain the license, if applicable.

AB617,,662 4. Certification of the completion of continuing education courses required to maintain the license, if applicable.

AB617,,663 (b) During the reinstatement period, a licensee may reinstate a license by submitting all the items in par. (a) 1. to 4., plus an additional nonrefundable fee of $100, through the nationwide multistate licensing system and registry or in such other manner as directed by the division.

AB617,,664 (c) After the reinstatement period, an expired license may not be reinstated.

AB617,,665 (d) The division may deny an application to renew a license if any fact or condition exists that would warrant revocation or suspension of the license.

AB617,,666 (e) The renewal term is for a period of one year, beginning January 1 of each year after the initial term.

AB617,,667 (8) Annual reports and financial statements. (a) Applicability. Paragraphs (b) and (c) apply to licensees under ss. 138.09, 138.12, 138.14, 218.02, 218.04, and 218.05. Licensees under s. 218.0114, except for motor vehicle dealers within the meaning of s. 218.0101 (23), must submit financial statements under par. (c), but they are not required to submit annual reports under par. (b).

AB617,,668 (b) Annual reports. Each licensee shall annually, on or before March 31, submit through the nationwide multistate licensing system and registry or in such other manner as directed by the division, a report giving such reasonable and relevant information as the division may require concerning the business transacted by the licensee. This report shall be made in the form and manner prescribed by the division.

AB617,,669 (c) Financial statements. Each licensee shall annually, no later than 90 days following the end of its most recently completed fiscal year, submit through the nationwide multistate licensing system and registry or in such other manner as directed by the division, a copy of the licensee’s financial statements for that fiscal year. The financial statements shall include a balance sheet and income statement and shall be prepared in accordance with generally accepted accounting principles.

AB617,139 Section 139. 224.71 (7) of the statutes is amended to read:

AB617,,671 224.71 (7) “Nationwide mortgage multistate licensing system and registry” means the licensing and registration system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for licensed mortgage loan originators and mortgage loan originators exempt from licensing under s. 224.725 (1m) or, if this system is no longer maintained, any system established by the secretary of the federal department of housing and urban development under P.L. 110-289, Title V, section 1509 has the meaning given in s. 224.35 (1g) (b).

AB617,140 Section 140. 224.71 (13g) (b) of the statutes is amended to read:

AB617,,673 224.71 (13g) (b) Registered with, and who maintains a unique identifier through, the nationwide mortgage multistate licensing system and registry.

AB617,141 Section 141. 224.71 (18) of the statutes is amended to read:

AB617,,675 224.71 (18) “Unique identifier” means a number or other identifier assigned by protocols established by the nationwide mortgage licensing system and registry has the meaning given in s. 224.35 (1g) (e).

AB617,142 Section 142. 224.72 (2) (am) of the statutes is amended to read: