SB668: Bill Text

SB668,74 Section 74 . 218.0161 of the statutes is renumbered 218.0161 (1).

SB668,75 Section 75 . 218.0161 (2) of the statutes is created to read:

SB668,75,18 218.0161 (2) The division of banking may report any enforcement action, any violation of this chapter 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).

SB668,76 Section 76 . 218.0162 of the statutes is amended to read:

SB668,75,24 218.0162 Commencement of action. Upon the request of the licensor, the department of justice or the district attorney may commence an action in the name of the state to recover a forfeiture under s. 218.0161. An action under s. 218.0161 (1) shall be commenced within 3 years after the occurrence of the unlawful act or practice which is the subject of the action.

SB668,77 Section 77. 218.02 (1) (e) and (f) of the statutes are created to read:

SB668,76,2 218.02 (1) (e) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b).

SB668,76,3 (f) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).

SB668,78 Section 78. 218.02 (2) (a) 1. (intro.) of the statutes is amended to read:

SB668,76,11 218.02 (2) (a) 1. (intro.) Each adjustment service company shall apply to the division for a license to engage in such business. Application for a separate license for each office of a company to be operated under this section shall be made to the division in writing, under oath, in a form to be prescribed by and manner acceptable to the division. The division may issue more than one license to the same licensee. Except as provided in subd. 3., an application for a license under this section shall include the following:

SB668,79 Section 79. 218.02 (2) (a) 2. c. of the statutes is created to read:

SB668,76,14 218.02 (2) (a) 2. c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35.

SB668,80 Section 80. 218.02 (2) (d), (e) and (f) of the statutes are created to read:

SB668,76,18 218.02 (2) (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.

SB668,76,21 (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.

SB668,76,24 (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).

SB668,81 Section 81. 218.02 (5) (a) and (b) of the statutes are amended to read:

SB668,77,6 218.02 (5) (a) Every A license issued shall state the address of the office at which the business is to be conducted, the name of the licensee, and if the licensee is a partnership, limited liability company or association, the names of the members thereof, and if a corporation the date and place of its incorporation. Such license shall be kept conspicuously posted in the office of the licensee and under this section shall not be transferable or assignable.

SB668,77,17 (b) Whenever a licensee shall contemplate a change of the licensee's place of business to another location within the same city, village, or town, the licensee shall give written notice thereof to the division, in a form and manner acceptable to the division, which shall attach to the license the division's authorization of such removal, specifying the date thereof and the new location. Such authorization shall be authority for the operation of such business under the same license at the specified new location. No change in the place of business of a licensee to a location outside of the original city, village, or town shall be permitted under the same license. 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.

SB668,82 Section 82. 218.02 (5) (c) of the statutes is repealed and recreated to read:

SB668,77,23 218.02 (5) (c) 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. A license may be renewed or reinstated as provided in s. 224.35 (7).

SB668,83 Section 83 . 218.02 (6) (a) (intro.) of the statutes is amended to read:

SB668,78,2 218.02 (6) (a) (intro.) The division, after complaint, notice and hearings as provided in s. 217.19 hearing, shall revoke any license in the following cases:

SB668,84 Section 84. 218.02 (6) (a) 1. of the statutes is amended to read:

SB668,78,5 218.02 (6) (a) 1. If the licensee has failed to pay the annual license fee or to maintain in effect the bond required under the provisions of this section;

SB668,85 Section 85. 218.02 (6) (a) 5. of the statutes is created to read:

SB668,78,9 218.02 (6) (a) 5. If 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.

SB668,86 Section 86 . 218.02 (9) (title) of the statutes is amended to read:

SB668,78,11 218.02 (9) (title) Rules and reports; fees; enforcement; reporting violations.

SB668,87 Section 87. 218.02 (9) (a) (intro.) of the statutes is amended to read:

SB668,78,20 218.02 (9) (a) (intro.) A licensee shall make an annual report and submit financial statements as provided in s. 224.35 (8). The division may make such rules and require such further reports as the division deems necessary for the enforcement of this section. Sections 217.17, 217.18 and 217.21 (1) and (2) The licensee shall keep such books and records as will enable the division to determine whether licensees are in compliance with this section and any rules or orders issued thereunder. The powers granted under s. 217.11 apply to and are available for the purposes of this section. This paragraph does not apply to any of the following:

SB668,88 Section 88 . 218.02 (9) (c) of the statutes is amended to read:

SB668,79,2 218.02 (9) (c) The division shall investigate, ascertain and determine whether this chapter or the lawful orders issued hereunder are being violated and for such purposes the division shall have all of the powers conferred by ss. 217.17 and 217.18 granted under s. 217.11. The division shall report all violations to the district attorney of the proper county for prosecution.

SB668,89 Section 89. 218.02 (9) (d) of the statutes is created to read:

SB668,79,9 218.02 (9) (d) 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).

SB668,90 Section 90 . 218.04 (1) (a) of the statutes is amended to read:

SB668,79,19 218.04 (1) (a) “Collection agency" means any person engaging in the business of collecting or receiving for payment for others of any account, bill, or other indebtedness. “Collection agency" does not include attorneys at law authorized to practice in this state and resident herein, banks, express companies, credit unions, health care billing companies, state savings banks, state savings and loan associations, insurers and their agents, trust companies, mortgage bankers licensed and operating under subch. III of ch. 224, district attorneys acting under s. 971.41, persons contracting with district attorneys under s. 971.41 (5), real estate brokers, and real estate salespersons.

SB668,91 Section 91 . 218.04 (1) (b) of the statutes is renumbered 218.04 (1) (b) (intro.) and amended to read:

SB668,79,25 218.04 (1) (b) (intro.) “Collector" or “solicitor" means any person employed by a collection agency to collect or receive payment or to solicit the receiving or collecting of payment who, on behalf of a collection agency licensed under this section, does any of the following:

SB668,80,2 1. Collects, or attempts to collect, for others of any account, bill, or other indebtedness outside of the office or the person's home.

SB668,92 Section 92 . 218.04 (1) (b) 2. and 3. of the statutes are created to read:

SB668,80,5 218.04 (1) (b) 2. Receives payment for others of any account, bill, or other indebtedness.

SB668,80,7 3. Solicits any account, bill, or other indebtedness for collection by the collection agency.

SB668,93 Section 93 . 218.04 (1) (em) and (h) of the statutes are created to read:

SB668,80,10 218.04 (1) (em) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b).

SB668,80,11 (h) “Unique identifier" has the meaning given in s. 224.35 (1g) (e).

SB668,94 Section 94 . 218.04 (2) (a) and (b) of the statutes are amended to read:

SB668,80,15 218.04 (2) (a) Except as provided in par. (b), a person may not operate as a collection agency or as a collector or solicitor in this state without first having obtained a license as required by this section.

SB668,80,18 (b) A nonresident of this state is not required to obtain a collection agency license if that person conducts collection business agency activity with state residents solely by means of interstate telecommunications or interstate mail.

SB668,95 Section 95. 218.04 (3) (a) 1. (intro.) of the statutes is amended to read:

SB668,80,24 218.04 (3) (a) 1. (intro.) Application for licenses under the provisions of this section shall be made to the division in writing, under oath, on a form to be prescribed by in a form and manner acceptable to the division. All licenses shall expire on June 30 next following their date of issue. Except as provided in subd. 3., an application for a license under this section shall include the following:

SB668,96 Section 96 . 218.04 (3) (a) 1g., 1m. and 1r. of the statutes are created to read:

SB668,81,3 218.04 (3) (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.

SB668,81,6 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.

SB668,81,9 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).

SB668,97 Section 97 . 218.04 (3) (a) 2. c. of the statutes is created to read:

SB668,81,12 218.04 (3) (a) 2. c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35.

SB668,98 Section 98 . 218.04 (3) (b) of the statutes is amended to read:

SB668,81,20 218.04 (3) (b) At the time of making application, every applicant for a collection agency license shall pay a nonrefundable fee of $1,000 to the division for investigating the application, unless the applicant is already licensed under this section, and the sum of $200 as an annual license fee for each place of business that is required to be separately licensed under sub. (4) (a). If the cost of investigation exceeds $1,000, the applicant shall, upon demand of the division, pay the excess cost. No investigation fee is required on the renewal of a license.

SB668,99 Section 99 . 218.04 (3) (c) of the statutes is repealed.

SB668,100 Section 100 . 218.04 (4) (a) of the statutes is amended to read:

SB668,82,17 218.04 (4) (a) Except as provided in par. (am), upon the filing of such a license application and the payment of such fee the applicable fees, the division shall make an investigation, and if the division finds that the character and general fitness and the financial responsibility of the applicant, and the members thereof if the applicant is a partnership, limited liability company or association, and the officers and directors thereof if the applicant is a corporation, warrant the belief that the business will be operated in compliance with this section the division shall thereupon issue a license to said the applicant. Such A license is not assignable and, except as provided in par. (ap), shall permit operation under it only at or from the location specified in the license, except that an employee of a licensed collection agency may work from the employee's home if the employee complies with all of the same requirements under this section and the division's rules that would apply if the employee were working within the licensed office and except that a licensed collector or solicitor may work outside the licensed office of a collection agency. A nonresident of this state may, upon complying with all other provisions of this section, secure a collection agency license provided the nonresident maintains an active office in this state. Except as provided in par. (ap), a separate license is required for each place of business maintained by the licensee from which the licensee or its collectors or solicitors engage in the business of collecting or receiving payments for others of any account, bill, or other indebtedness of a person located in this state.

SB668,101 Section 101 . 218.04 (4) (am) 1. of the statutes is amended to read:

SB668,82,20 218.04 (4) (am) 1. The applicant fails to provide any application information required under sub. (3) (a) 1. by the division.

SB668,102 Section 102 . 218.04 (4) (ap) and (c) of the statutes are created to read:

SB668,83,2 218.04 (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.

SB668,83,7 (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.

SB668,103 Section 103 . 218.04 (5) (a) (intro.), 1., 2., 3. and 4. of the statutes are amended to read:

SB668,83,11 218.04 (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:

SB668,83,14 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.

SB668,83,17 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;.

SB668,83,19 3. The licensee has failed to pay the annual license fee or to maintain in effect the bond required under sub. (3) (d);.

SB668,83,22 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.

SB668,104 Section 104 . 218.04 (5) (a) 6. of the statutes is created to read:

SB668,84,3 218.04 (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.

SB668,105 Section 105. 218.04 (5) (c) of the statutes is amended to read:

SB668,84,9 218.04 (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.

SB668,106 Section 106 . 218.04 (6) (title) of the statutes is amended to read:

SB668,84,12 218.04 (6) (title) Licenses; posting; changes of location; renewal; discontinued operations.

SB668,107 Section 107. 218.04 (6) (a) of the statutes is repealed and recreated to read:

SB668,84,16 218.04 (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.

SB668,108 Section 108. 218.04 (6) (b) of the statutes is amended to read:

SB668,84,25 218.04 (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.

SB668,109 Section 109. 218.04 (6) (c) (intro.) and 2. of the statutes are amended to read:

SB668,85,5 218.04 (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:

SB668,85,7 2. All Wisconsin client accounts have been returned to the claimants or forwarders.

SB668,110 Section 110 . 218.04 (7) (title) of the statutes is amended to read:

SB668,85,9 218.04 (7) (title) Powers of division ; advisory committees.

SB668,111 Section 111 . 218.04 (7) (a) of the statutes is amended to read: