LRB-2236/1
KSH:mfd&jlg:ijs
1997 - 1998 LEGISLATURE
June 17, 1997 - Introduced by Representatives Krusick, Schafer, Ward, Kunicki,
Dobyns, Goetsch, Green, Kreibich, Musser, Olsen, Plale, Porter, Powers

and Turner, cosponsored by Senators Plache, Burke, Farrow and Huelsman.
Referred to Committee on Financial Institutions.
AB430,1,3 1An Act to renumber and amend 138.09 (3) (e) and 138.10 (3); to amend 138.10
2(2); and to create 138.10 (2m) of the statutes; relating to: pawnbroking by
3certain licensed lenders and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Under current law, persons, other than banks, savings and loan associations,
savings banks or credit unions, must obtain a license from the division of banking
before making precomputed loans or certain other types of consumer loans ("licensed
lenders"). The licenses issued by the division of banking specify an address at or
from which loans shall be consummated. Current law prohibits a licensed lender
from selling merchandise at the location identified in the license. This bill allows a
licensed lender to sell merchandise at the location specified in the license if the
division grants prior written authorization.
Current law also imposes restrictions on loans made by a pawnbroker.
"Pawnbroking" is defined as the business of lending money on the deposit or pledge
of certain personal property or the business of purchasing personal property with an
expressed or implied agreement or understanding to sell it back at a subsequent time
at a stipulated price. Current law prohibits a loan made by a pawnbroker from
exceeding $150. This bill allows licensed lenders to make pawnbroker loans in excess
of $150 and allows the division of banking to promulgate rules regulating the conduct
of pawnbroking by licensed lenders.

For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB430, s. 1 1Section 1. 138.09 (3) (e) of the statutes is renumbered 138.09 (3) (e) 1. (intro.)
2and amended to read:
AB430,2,53 138.09 (3) (e) 1. (intro.) A Except as provided in subd. 2., a licensee may
4conduct, and permit others to conduct, at the location specified in its license, any one
5or more of the following businesses not subject to this section:
AB430,2,8 6a. A business engaged in making loans for business or agricultural purposes
7or exceeding $25,000 in principal amount, except that all such loans having terms
8of 49 months or more are subject to sub. (7) (gm) 2. or 4., a
AB430,2,10 9b. A business engaged in making first lien real estate mortgage loans under ss.
10138.051 to 138.06, a.
AB430,2,11 11c. A loan, finance or discount business under s. 218.01, or an.
AB430,2,12 12d. An insurance business, or a.
AB430,2,13 13e. A currency exchange under s. 218.05, or a.
AB430,2,14 14f. A seller of checks business under ch. 217; but.
AB430,2,17 152. A licensee may not sell merchandise shall not be sold at such location; and
16no
or conduct other business shall be conducted at such at the location specified in
17the license
unless written authorization is granted to the licensee by the division.
AB430, s. 2 18Section 2. 138.10 (2) of the statutes is amended to read:
AB430,2,2019 138.10 (2) Maximum loan. A Unless made by a person licensed under s. 138.09,
20a
pawnbroker's loan shall may not exceed $150.
AB430, s. 3 21Section 3. 138.10 (2m) of the statutes is created to read:
AB430,3,3
1138.10 (2m) Pawnbroking by licensed lenders. The division of banking may
2promulgate rules regulating the conduct of pawnbroking by persons licensed under
3s. 138.09.
AB430, s. 4 4Section 4. 138.10 (3) of the statutes is renumbered 138.10 (1), and 138.10 (1)
5(intro.), as renumbered, is amended to read:
AB430,3,76 138.10 (1) Definitions. (intro.) The following terms in In this section shall be
7construed to have the following meanings
:
AB430,3,88 (End)
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