AB218,8,2423 3. An affiliate, as defined in sub. (2) (a) 2. a., of a financial institution if the
24affiliate is regulated by a federal or state banking regulatory authority.
AB218,9,3
14. A title insurer, escrow company, or other person, that provides bill-paying
2services, if the provision of debt-management services is incidental to the
3bill-paying services.
AB218,9,64 5. An attorney licensed or otherwise authorized to practice law in this state who
5provides legal services in an attorney-client relationship, if the provision of
6debt-management services is incidental to the provision of legal services.
AB218,9,107 6. A certified public accountant licensed to provide accounting services in this
8state who provides accounting services in an accountant-client relationship, if the
9provision of debt-management services is incidental to the provision of accounting
10services.
AB218,9,14 11(4) License required. (a) Except as otherwise provided in par. (b), a provider
12may not provide debt-management services to an individual who it reasonably
13should know resides in this state at the time it agrees to provide the services, unless
14the provider is licensed under this section.
AB218,9,1615 (b) If a provider is licensed under this section, par. (a) does not apply to an
16employee or agent of the provider.
AB218,9,1817 (c) The division shall maintain and publicize a list of the names of all licensed
18providers.
AB218,9,20 19(5) Application for license: form, fee, and accompanying documents. (a) An
20application for licensure as a provider must be in a form prescribed by the division.
AB218,9,2221 (b) Subject to adjustment of dollar amounts pursuant to sub. (31) (f), an
22application for licensure as a provider must be accompanied by all of the following:
AB218,9,2323 1. The fee established by the division.
AB218,9,2424 2. The bond required by sub. (13).
AB218,10,2
13. Identification of all trust accounts required by sub. (21) and an irrevocable
2consent authorizing the division to review and examine the trust accounts.
AB218,10,43 4. Evidence of insurance in the amount of $250,000 that satisfies all of the
4following:
AB218,10,75 a. The insurance is against the risks of dishonesty, fraud, theft, and other
6misconduct on the part of the applicant or a director, employee, or agent of the
7applicant.
AB218,10,98 b. The insurance is issued by an insurance company authorized to do business
9in this state and rated at least "A" by a nationally recognized rating organization.
AB218,10,1010 c. The insurance has no deductible.
AB218,10,1211 d. The insurance is payable to the applicant, the individuals who have
12agreements with the applicant, and this state, as their interests may appear.
AB218,10,1413 e. The insurance is not subject to cancellation by the applicant without the
14approval of the division.
AB218,10,1615 5. If applicable, proof of compliance with s. 178.45, 180.1501, 181.1501, or
16183.1002.
AB218,10,1917 6. If the applicant is organized as a not-for-profit entity or is exempt from
18taxation, evidence of not-for-profit and tax-exempt status applicable to the
19applicant under the Internal Revenue Code, 26 USC 501.
AB218,10,2120 7. If the applicant is a corporation or limited liability company organized under
21the laws of another state, a certificate of good standing issued by the other state.
AB218,10,24 22(6) Application for license: required information. An application for
23licensure must be signed and verified under oath or affirmation and include all of the
24following:
AB218,11,3
1(a) The applicant's name, principal business address and telephone number,
2and all other business addresses in this state, electronic-mail addresses, and
3Internet Web site addresses.
AB218,11,44 (b) All names under which the applicant conducts business.
AB218,11,75 (c) The address of each location in this state at which the applicant will provide
6debt-management services or a statement that the applicant will have no such
7location.
AB218,11,118 (d) The title, name, and home address of each officer and director of the
9applicant; the percentage ownership, if any, of the applicant held by each officer and
10director; and the name and home address of each person that owns at least 10 percent
11of the applicant.
AB218,11,1512 (e) Identification of every jurisdiction in which, during the 5 years immediately
13preceding the application the applicant or any of its officers or directors has been
14licensed or registered to provide debt-management services, or in which individuals
15have resided when they received debt-management services from the applicant.
AB218,11,1916 (f) A statement describing all of the following, to the extent it is known or should
17be known by the applicant, in any jurisdiction against the applicant, any of its
18officers, directors, owners, or agents, or any person who is authorized to have access
19to the trust account required by sub. (21):
AB218,11,2020 1. All criminal convictions.
AB218,11,2221 2. All actions by governmental agencies, and all judgments, relevant to the
22provision of debt-management services.
AB218,11,2423 3. All pending charges, actions, suits, and claims, relevant to the provision of
24debt-management services.
AB218,12,4
1(g) The applicant's financial statements, audited by an accountant licensed to
2conduct audits, for each of the 2 years immediately preceding the application or, if
3it has not been in operation for the 2 years preceding the application, for the period
4of its existence.
AB218,12,65 (h) Evidence of accreditation by an independent accrediting organization
6approved by the division.
AB218,12,87 (i) Evidence that, within 12 months after initial employment, each of the
8applicant's counselors becomes certified as a certified counselor.
AB218,12,119 (j) A description of the 3 most commonly used educational programs that the
10applicant provides or intends to provide to individuals who reside in this state and
11a copy of any materials used or to be used in those programs.
AB218,12,1412 (k) A description of the applicant's financial analysis and initial budget plan,
13including any form or electronic model, used to evaluate the financial condition of
14individuals.
AB218,12,1615 (L) A copy of each form of agreement that the applicant will use with
16individuals who reside in this state.
AB218,12,1817 (m) The schedule of fees and charges that the applicant will use with
18individuals who reside in this state.
AB218,12,2119 (n) At the applicant's expense, the results of a criminal-records check,
20including fingerprints, conducted within the immediately preceding 12 months,
21covering all of the following:
AB218,12,2222 1. Every officer of the applicant.
AB218,12,2423 2. Every employee or agent of the applicant who is authorized to have access
24to the trust account required by sub. (21).
AB218,13,2
1(o) The names and addresses of all employers of each director during the 10
2years immediately preceding the application.
AB218,13,43 (p) A description of any ownership interest of at least 10 percent by a director,
4owner, or employee of the applicant in all of the following:
AB218,13,55 1. Any affiliate of the applicant.
AB218,13,76 2. Any entity that provides products or services to the applicant or any
7individual relating to the applicant's debt-management services.
AB218,13,118 (q) A statement of the amount of compensation of the applicant's 5 most highly
9compensated employees for each of the 3 years immediately preceding the
10application or, if it has not been in operation for the 3 years preceding the application,
11for the period of its existence.
AB218,13,1312 (r) The identity of each director who is an affiliate, as defined in sub. (2) (a) 1.
13or 2. a., 2. b., 2. d., 2. e., or 2. f., of the applicant.
AB218,13,1514 (s) Any other information that the division reasonably requires to perform the
15division's duties under sub. (9).
AB218,13,18 16(7) Application for license: obligation to update information. An applicant
17or licensed provider shall notify the division within 10 days after a change in the
18information specified in sub. (5) (b) 4. or 6. or (6) (a), (c), (f), (L), or (m).
AB218,13,23 19(8) Application for license: public information. Except for the information
20required by sub. (6) (g), (n), and (q) and the addresses required by sub. (6) (d), which
21the division shall withhold from inspection and copying under s. 19.35 (1), the
22division shall make all other information in an application for licensure as a provider
23available to the public.
AB218,14,3
1(9) License: issuance or denial. (a) Except as otherwise provided in pars. (b)
2and (c), the division shall issue a license as a provider to a person that complies with
3subs. (5) and (6).
AB218,14,44 (b) The division may deny licensure if any of the following apply:
AB218,14,55 1. The application is incomplete or contains erroneous information.
AB218,14,86 2. An officer, director, or owner of the applicant has been convicted of a crime,
7or suffered a civil judgment, involving dishonesty or the violation of state or federal
8securities laws.
AB218,14,109 3. The applicant or any of its officers, directors, or owners has defaulted in the
10payment of money collected for others.
AB218,14,1311 4. The division finds that the financial responsibility, experience, character, or
12general fitness of the applicant or its owners, directors, employees, or agents does not
13warrant belief that the business will be operated in compliance with this section.
AB218,14,1414 (c) The division shall deny licensure if any of the following apply:
AB218,14,1515 1. The application is not accompanied by the fee established by the division.
AB218,14,1616 2. The application is not accompanied by a bond under sub. (13).
AB218,14,2017 3. With respect to an applicant that is organized as a not-for-profit entity or
18has obtained tax-exempt status under the Internal Revenue Code, 26 USC 501, the
19applicant's board of directors is not independent of the applicant's employees and
20agents.
AB218,14,2221 4. The applicant has been certified under s. 73.0301 by the department of
22revenue as being liable for delinquent taxes.
AB218,15,423 5. If the applicant is an individual, the applicant has failed to comply, after
24appropriate notice, with a subpoena or warrant issued by the department of
25workforce development or a county child support agency under s. 59.53 (5) and

1related to paternity or child support proceedings and is delinquent in making
2court-ordered payments of child or family support, maintenance, birth expenses,
3medical expenses or other expenses related to the support of a child or former spouse,
4as provided in a memorandum of understanding entered into under s. 49.857.
AB218,15,65 (d) Subject to adjustment of the dollar amount pursuant to sub. (31) (f), a board
6of directors is not independent for purposes of par. (c) if any of the following apply:
AB218,15,87 1. More than one-fourth of its members are affiliates of the applicant, as
8defined in sub. (2) (a) 1. or 2. a., 2. b., 2. d., 2. e., or 2. f.
AB218,15,129 2. After the date 10 years before first becoming a director of the applicant, more
10than one-fourth of its members were employed by or directors of a person that
11received from the applicant more than $25,000 in either the current year or the
12preceding year.
AB218,15,18 13(10) License: timing. (a) The division shall approve or deny an initial license
14as a provider within 120 days after an application is filed. In connection with a
15request pursuant to sub. (6) (s) for additional information, the division may extend
16the 120-day period for not more than 60 days. Within 7 days after denying an
17application, the division, in a record, shall inform the applicant of the reasons for the
18denial.
AB218,15,2119 (b) If the division denies an application for licensure as a provider or does not
20act on an application within the time prescribed in sub. (1), the applicant may appeal
21and request a hearing pursuant to subch. III of ch. 227.
AB218,15,2222 (c) Subject to subs. (11) (d) and (33), a license as a provider is valid for one year.
AB218,15,24 23(11) Renewal of license. (a) A provider must obtain a renewal of its license
24annually.
AB218,16,3
1(b) An application for renewal of licensure as a provider must be in a form
2prescribed by the division, signed and verified under oath or affirmation, and must
3satisfy all of the following:
AB218,16,44 1. Be filed no fewer than 30 and no more than 60 days before the license expires.
AB218,16,65 2. Be accompanied by the fee established by the division and the bond required
6by sub. (13).
AB218,16,97 3. Contain the matter required for initial licensure as a provider by sub. (6) (h)
8and (i) and a financial statement, audited by an accountant licensed to conduct
9audits, for the applicant's fiscal year immediately preceding the application.
AB218,16,1210 4. Disclose any changes in the information contained in the applicant's
11application for licensure or its immediately previous application for renewal, as
12applicable.
AB218,16,1613 5. Supply evidence of insurance in an amount equal to the larger of $250,000
14or the highest daily balance in the trust account required by sub. (21) during the 6
15month period immediately preceding the application and that satisfies all of the
16following:
AB218,16,1917 a. The insurance is against risks of dishonesty, fraud, theft, and other
18misconduct on the part of the applicant or a director, employee, or agent of the
19applicant.
AB218,16,2120 b. The insurance is issued by an insurance company authorized to do business
21in this state and rated at least "A" by a nationally recognized rating organization.
AB218,16,2222 c. The insurance has no deductible.
AB218,16,2423 d. The insurance is payable to the applicant, the individuals who have
24agreements with the applicant, and this state, as their interests may appear.
AB218,17,2
1e. The insurance is not subject to cancellation by the applicant without the
2approval of the division.
AB218,17,63 6. Disclose the total amount of money received by the applicant pursuant to
4plans during the preceding 12 months from or on behalf of individuals who reside in
5this state and the total amount of money distributed to creditors of those individuals
6during that period.
AB218,17,97 7. Disclose, to the best of the applicant's knowledge, the gross amount of money
8accumulated during the preceding 12 months pursuant to plans by or on behalf of
9individuals who reside in this state and with whom the applicant has agreements.
AB218,17,1110 8. Provide any other information that the division reasonably requires to
11perform the division's duties under this subsection.
AB218,17,1412 (c) Except for the information required by sub. (6) (g), (n), and (q) and the
13addresses required by sub. (6) (d), the division shall make the information in an
14application for renewal of licensure as a provider available to the public.
AB218,17,1715 (d) If a licensed provider files a timely and complete application for renewal of
16licensure, the license remains effective until the division, in a record, notifies the
17applicant of a denial and states the reasons for the denial.
AB218,18,218 (e) If the division denies an application for renewal of licensure as a provider,
19the applicant, within 30 days after receiving notice of the denial, may appeal and
20request a hearing pursuant to subch. III of ch. 227. Subject to sub. (33), while the
21appeal is pending the applicant shall continue to provide debt-management services
22to individuals with whom it has agreements. If the denial is affirmed, subject to the
23division's order and sub. (33), the applicant shall continue to provide
24debt-management services to individuals with whom it has agreements until, with
25the approval of the division, it transfers the agreements to another licensed provider

1or returns to the individuals all unexpended money that is under the applicant's
2control.
AB218,18,10 3(12) License or registration in another state. If a provider holds a license or
4certificate of registration in another state authorizing it to provide
5debt-management services, the provider may submit a copy of that license or
6certificate and the application for it instead of an application in the form prescribed
7by sub. (5) (a), (6), or (11) (b). The division shall accept the application and the license
8or certificate from the other state as an application for licensure as a provider or for
9renewal of licensure as a provider, as appropriate, in this state if all of the following
10apply:
AB218,18,1311 (a) The application in the other state contains information substantially
12similar to or more comprehensive than that required in an application submitted in
13this state.
AB218,18,1514 (b) The applicant provides the information required by sub. (6) (a), (c), (j), (L),
15and (m).
Loading...
Loading...