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16203.01 Definitions. In this chapter:
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17(1) “Consumer” means an individual who resides in this state.
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18(2) “Division" means the division of banking.
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19(3) “Earned but unpaid income” means money that is based on wages,
20compensation, or other income that a consumer represents, and that a provider
21determines, has been earned by or has accrued to the benefit of the consumer but that
22has not, at the time the proceeds are provided, been paid to the consumer by an
23obligor.
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1(4) “Earned income access service” means the business of delivering proceeds
2to consumers before the date on which obligors are obligated to pay salary, wages, or
3other benefits.
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4(5) “Mandatory payment” means an amount a provider determines a consumer
5must pay to the provider as a condition of receiving proceeds.
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6(6) “Nonmandatory payment” means an amount paid by a consumer or an
7obligor to a provider that is not a mandatory payment. “Nonmandatory payment”
8includes any of the following:
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(a) A fee imposed by the provider for delivery or expedited delivery of proceeds
10to the consumer, as long as the provider offers the consumer at least one option of
11receiving proceeds at no cost.
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(b) An amount paid by the obligor to the provider on the consumer's behalf that
13entitles the consumer to receive proceeds at no cost to the consumer.
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(c) A subscription or membership fee imposed by the provider for a group of
15services that includes earned income access services, as long as the provider offers
16the consumer at least one option of receiving proceeds at no cost.
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(d) A tip or gratuity paid by the consumer to the provider, as long as the provider
18offers the consumer at least one option of receiving proceeds at no cost.
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19(7) (a) “Nonrecourse" means that a provider may not compel or attempt to
20compel repayment by a consumer of outstanding proceeds or nonmandatory
21payments owed by the consumer to the provider using any of the following means:
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1. A civil suit against the consumer in court.
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2. Using a 3rd party to pursue collection of outstanding proceeds or
24nonmandatory payments on the provider's behalf.
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3. Selling the debt to a 3rd-party collector or debt buyer.
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1(b) “Nonrecourse” does not include the use by a provider of any of the means
2described under par. (a) 1. to 3. to compel or attempt to compel repayment of
3outstanding proceeds or nonmandatory payments incurred by a consumer through
4fraudulent means.
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5(8) “Obligor” means an employer, independent contractor, or other person that
6is legally obligated to pay a consumer a sum of money on an hourly, project-based,
7piecework, or other basis. “Obligor” does not include the customer of an obligor or
8a 3rd party that has an obligation to make a payment to a consumer based solely on
9the consumer's agency relationship with the obligor.
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10(9) “Outstanding proceeds” means proceeds provided to a consumer by a
11provider but not yet repaid to the provider.
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12(10) “Proceeds” means the amount of earned but unpaid income that a provider
13provides to a consumer.
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14(11) “Provider” means a person that is not an individual and that is in the
15business of offering and providing earned income access services to consumers.
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16203.02 Powers of the division.
(1) The division may issue any general or
17special order in execution of or supplementary to this chapter.
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18(2) The division may promulgate such rules as it considers necessary for the
19administration of this chapter.
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20(3) The division has the same power to conduct hearings, take testimony, and
21secure evidence as is provided in ss. 217.17 and 217.18.
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22(4) The division for the purpose of discovering violations of this chapter may
23investigate the business of a provider registered under this chapter that is
24transacted under this chapter and shall investigate convictions reported to the
25division by any district attorney for violation by a provider of this chapter. The place
1of business, if any, books of account, papers, records, safes, and vaults of a provider
2registered under this chapter shall be open to inspection and examination by the
3division for the purpose of such investigation and the division may examine under
4oath all persons whose testimony the division may require relative to such
5investigation.
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6(5) The cost of any investigation, examination, or hearing, including witness
7fees or any other expenses, conducted by the division under this chapter involving
8a provider shall be paid by the provider within 30 days after demand therefor by the
9division, and the state may maintain an action for the recovery of such costs and
10expenses.
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11(6) Actual costs incurred by the division to examine books and records
12maintained outside of this state shall be paid by the provider.
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13203.03 Registration. (1) A provider, including a provider that is not
14physically located in this state, may not provide earned income access services in this
15state without first registering with the division and complying with the bond or letter
16of credit requirements under sub. (5).
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17(2) A provider required to register under sub. (1) shall apply to the division for
18a certificate of registration on a form and in the manner prescribed by the division.
19The application shall include all of the following information:
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(a) The name of the provider.