SB668: Bill Text

SB668,,533 218.02 (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,,535 218.02 (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,,537 218.02 (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,,539 218.04 (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,,541 218.04 (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,,542 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,,544 218.04 (1) (b) 2. Receives payment for others of any account, bill, or other indebtedness.

SB668,,545 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,,547 218.04 (1) (em) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b).

SB668,,548 (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,,550 218.04 (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,,551 (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,,553 218.04 (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,,555 218.04 (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,,556 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,,557 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,,559 218.04 (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,,561 218.04 (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,,564 218.04 (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,,566 218.04 (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,,568 218.04 (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,,569 (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,,571 218.04 (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,,572 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,,573 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,,574 3. The licensee has failed to pay the annual license fee or to maintain in effect the bond required under sub. (3) (d);.

SB668,,575 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,,577 218.04 (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,,579 218.04 (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,,581 218.04 (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,,583 218.04 (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,,585 218.04 (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,,587 218.04 (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,,588 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,,590 218.04 (7) (title) Powers of division; advisory committees.

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

SB668,,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.

SB668,112 Section 112. 218.04 (8) of the statutes is repealed.

SB668,113 Section 113. 218.04 (9) of the statutes is created to read:

SB668,,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.

SB668,,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.

SB668,,597 (c) A licensee may forward printed collection notices to a debtor that are unsigned.

SB668,114 Section 114. 218.04 (9g) (c) of the statutes is amended to read:

SB668,,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.

SB668,115 Section 115. 218.04 (9m) (e) of the statutes is amended to read:

SB668,,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.

SB668,116 Section 116. 218.04 (10) (a) of the statutes is repealed and recreated to read:

SB668,,603 218.04 (10) (a) A licensee shall make an annual report and submit financial statements as provided in s. 224.35 (8).

SB668,117 Section 117. 218.04 (10) (b) of the statutes is amended to read:

SB668,,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.

SB668,118 Section 118. 218.04 (13) (title) of the statutes is amended to read:

SB668,,607 218.04 (13) (title) Enforcement; reporting violations.

SB668,119 Section 119. 218.04 (13) of the statutes is renumbered 218.04 (13) (a) and amended to read:

SB668,,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.

SB668,120 Section 120. 218.04 (13) (b) of the statutes is created to read:

SB668,,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).

SB668,121 Section 121. 218.05 (1) (e) and (f) of the statutes are created to read:

SB668,,613 218.05 (1) (e) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b).

SB668,,614 (f) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).

SB668,122 Section 122. 218.05 (3) (a) 2. of the statutes is amended to read:

SB668,,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

SB668,123 Section 123. 218.05 (3) (am) 2. c. of the statutes is created to read:

SB668,,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.

SB668,124 Section 124. 218.05 (3) (c) of the statutes is amended to read:

SB668,,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.

SB668,125 Section 125. 218.05 (3) (d), (e) and (f) of the statutes are created to read: