AB150: Bill Text Engrossed

AB150-engrossed, s. 4147b Section 4147b. 134.45 (3) (b) of the statutes is amended to read:

AB150-engrossed,1485,7 134.45 (3) (b) A domestic or foreign corporation, association or limited liability company exercising any of the powers, franchises or functions of a business entity in this state that violates any provision of this section, shall not have the right of, and shall be prohibited from, doing business in this state, and the secretary of state department of financial institutions shall revoke its certificate to do business in this state.

AB150-engrossed, s. 4148b Section 4148b. 134.68 (5) (a) (intro.) of the statutes is amended to read:

AB150-engrossed,1485,14 134.68 (5) (a) (intro.) No person may collect or by contract require a buyer to pay more than $100 for dating services before the buyer receives or has the opportunity to receive those services unless the person selling dating services establishes proof of financial responsibility by maintaining any of the following commitments approved by the department of justice agriculture, trade and consumer protection in an amount not less than $25,000:

AB150-engrossed, s. 4148d Section 4148d. 134.68 (5) (b) of the statutes is amended to read:

AB150-engrossed,1485,22 134.68 (5) (b) The commitment described in par. (a) shall be established in favor of or made payable to the state, for the benefit of any buyer who does not receive a refund under the contractual provision described in sub. (3). The person selling dating services shall file with the department of justice agriculture, trade and consumer protection any agreement, instrument or other document necessary to enforce the commitment against the person selling dating services or any relevant 3rd party, or both.

AB150-engrossed, s. 4148e Section 4148e. 134.68 (7) (a) (intro.) of the statutes is amended to read:

AB150-engrossed,1485,25 134.68 (7) (a) (intro.) The department of justice agriculture, trade and consumer protection or any district attorney may on behalf of the state:

AB150-engrossed, s. 4148f Section 4148f. 134.68 (7) (b) of the statutes is amended to read:

AB150-engrossed,1486,5 134.68 (7) (b) The department of justice may bring an action in circuit court to recover on a financial commitment maintained under sub. (5) against a person selling dating services or relevant 3rd party, or both, on behalf of any buyer who does not receive a refund due under the contractual provision described in sub. (3).

AB150-engrossed, s. 4148h Section 4148h. 134.70 (13) (b) 1. (intro.) of the statutes is amended to read:

AB150-engrossed,1486,13 134.70 (13) (b) 1. (intro.) Except as provided in subd. 3., a center may establish proof of financial responsibility required under par. (a) by maintaining an established escrow account approved by the department of justice agriculture, trade and consumer protection for all amounts received from buyers in advance of the receipt of services or by maintaining any of the following commitments approved by the department of justice agriculture, trade and consumer protection in an amount not less than $25,000, subject to subd. 2.:

AB150-engrossed, s. 4148j Section 4148j. 134.70 (13) (b) 2. of the statutes is amended to read:

AB150-engrossed,1486,20 134.70 (13) (b) 2. The commitment described in subd. 1. shall be established in favor of or made payable to the state, for the benefit of any buyer who does not receive a refund under sub. (11) (a). The center shall file with the department of justice agriculture, trade and consumer protection any agreement, instrument or other document necessary to enforce the commitment against the center or any relevant 3rd party, or both.

AB150-engrossed, s. 4148L Section 4148L. 134.70 (13) (b) 3. of the statutes is amended to read:

AB150-engrossed,1487,9 134.70 (13) (b) 3. For 6 or more weight reduction centers owned or operated under the same trade name, the amount of the financial commitment under pars. (a) and (b) for those weight reduction centers is not required to exceed a total of $150,000. For a weight reduction center that submits to the department of justice agriculture, trade and consumer protection evidence satisfactory to the department of justice that the weight reduction center collected a total of $50,000 or more but less than $100,000 from buyers of its center services in the previous calendar year, the amount of the financial commitment under pars. (a) and (b) is not required to exceed $10,000. For a weight reduction center that submits to the department of justice evidence satisfactory to the department of justice that the weight reduction center collected less than a total of $50,000 from buyers of its center services in the previous calendar year, the amount of the financial commitment under pars. (a) and (b) is not required to exceed $5,000.

AB150-engrossed, s. 4148m Section 4148m. 134.70 (15) (a) (intro.) of the statutes is amended to read:

AB150-engrossed,1487,14 134.70 (15) (a) (intro.) The department of agriculture, trade and consumer protection and the department of justice shall cooperatively investigate violations of this section or s. 134.705 (2) or (4). The department of justice agriculture, trade and consumer protection may on behalf of the state:

AB150-engrossed, s. 4148n Section 4148n. 134.70 (15) (am) of the statutes is amended to read:

AB150-engrossed,1487,19 134.70 (15) (am) The department of justice agriculture, trade and consumer protection may bring an action in circuit court to recover on a financial commitment maintained under sub. (13) against a center or relevant 3rd party, or both, on behalf of any buyer who does not receive a refund due under sub. (11) (a).

AB150-engrossed, s. 4148p Section 4148p. 134.71 (12) of the statutes is amended to read:

AB150-engrossed,1488,2 134.71 (12) Applications and forms. The department of justice agriculture, trade and consumer protection shall develop applications and other forms required under subs. (5) (intro.) and (8) (c). The department of justice shall print a sufficient number of applications and forms to provide to counties and municipalities for distribution to pawnbrokers, secondhand article dealers and secondhand jewelry dealers at no cost.

AB150-engrossed, s. 4148q Section 4148q. 134.74 (7) (b) of the statutes is amended to read:

AB150-engrossed,1488,8 134.74 (7) (b) Whoever intentionally violates this section may be fined not more than $10,000 or imprisoned for not more than 2 years or both. A person intentionally violates this section if the violation occurs after the department of justice agriculture, trade and consumer protection or a district attorney has notified the person by certified mail that the person is in violation of this section.

AB150-engrossed, s. 4148r Section 4148r. 134.74 (8) (intro.) of the statutes is amended to read:

AB150-engrossed,1488,13 134.74 (8) Enforcement. (intro.) The department of justice agriculture, trade and consumer protection shall investigate violations of this section. The department of justice agriculture, trade and consumer protection or any district attorney may on behalf of the state:

AB150-engrossed, s. 4148s Section 4148s. 134.83 (5) (intro.) of the statutes is amended to read:

AB150-engrossed,1488,16 134.83 (5) (intro.) The department of justice agriculture, trade and consumer protection or any district attorney may on behalf of the state:

AB150-engrossed, s. 4148t Section 4148t. 134.83 (6) of the statutes is amended to read:

AB150-engrossed,1488,20 134.83 (6) The department of justice and the department of agriculture, trade and consumer protection shall cooperate in the investigation of investigate violations of and the enforcement of enforce this section.

AB150-engrossed, s. 4148u Section 4148u. 134.85 (3) (a) of the statutes is amended to read:

AB150-engrossed,1489,2 134.85 (3) (a) The department of justice agriculture, trade and consumer protection on behalf of the state or any person who claims injury as a result of a violation of sub. (2) may bring an action for temporary or permanent injunctive relief in any circuit court. It is no defense to an action under this paragraph that an adequate remedy exists at law.

AB150-engrossed, s. 4148v Section 4148v. 136.03 (title) and (1) (intro.) of the statutes are amended to read:

AB150-engrossed,1489,10 136.03 (title) Duties of the department of justice agriculture, trade and consumer protection. (1) (intro.) The department of justice agriculture, trade and consumer protection shall investigate violations of this chapter and of rules and orders issued under s. 136.04. The department may subpoena persons and records to facilitate its investigations, and may enforce compliance with such subpoenas as provided in s. 885.12. The department may in behalf of the state:

AB150-engrossed, s. 4149 Section 4149. 138.052 (5) (am) 2. a. of the statutes, as created by 1993 Wisconsin Act 68, is amended to read:

AB150-engrossed,1489,20 138.052 (5) (am) 2. a. On January 1, 1994, and annually thereafter, the commissioner division of banking for banks, the commissioner division of savings and loan for savings and loan associations and savings banks, and the commissioner office of credit unions for credit unions shall determine the interest rate that is the average of the interest rates paid, rounded to the nearest one-hundredth of a percent, on regular passbook deposit accounts by institutions under the commissioner's division's or office's jurisdiction at the close of the last quarterly reporting period that ended at least 30 days before the determination is made.

AB150-engrossed, s. 4150 Section 4150. 138.052 (5) (am) 2. b. of the statutes, as created by 1993 Wisconsin Act 68, is amended to read:

AB150-engrossed,1490,3 138.052 (5) (am) 2. b. Each commissioner The office of credit unions shall report the rate calculated to the commissioner division of savings and loan within 5 days after the date on which the determination is made. The commissioner division of savings and loan shall calculate the average, rounded to the nearest one-hundredth of a percent, of the 3 rates and report that interest rate to the revisor of statutes within 5 days after the date on which the determination is made.

AB150-engrossed, s. 4151b Section 4151b. 138.055 (4) (a) of the statutes is amended to read:

AB150-engrossed,1490,6 138.055 (4) (a) The commissioner division of savings and loan, if the lender is a savings and loan association or savings bank;

AB150-engrossed, s. 4152 Section 4152. 138.055 (4) (b) of the statutes is amended to read:

AB150-engrossed,1490,9 138.055 (4) (b) The commissioner office of credit unions, if the lender is a credit union;

AB150-engrossed, s. 4153 Section 4153. 138.055 (4) (d) of the statutes is amended to read:

AB150-engrossed,1490,11 138.055 (4) (d) The commissioner division of banking for all other lenders.

AB150-engrossed, s. 4154b Section 4154b. 138.056 (1) (a) 4. a. of the statutes is amended to read:

AB150-engrossed,1490,14 138.056 (1) (a) 4. a. The commissioner division of savings and loan, if the lender is a savings and loan association or savings bank;

AB150-engrossed, s. 4155 Section 4155. 138.056 (1) (a) 4. b. of the statutes is amended to read:

AB150-engrossed,1490,17 138.056 (1) (a) 4. b. The commissioner office of credit unions, if the lender is a credit union;

AB150-engrossed, s. 4156 Section 4156. 138.056 (1) (a) 4. d. of the statutes is amended to read:

AB150-engrossed,1490,19 138.056 (1) (a) 4. d. The commissioner division of banking for all other lenders.

AB150-engrossed, s. 4157 Section 4157. 138.09 (1) of the statutes is amended to read:

AB150-engrossed,1491,7 138.09 (1) Before any person may do business under this section or charge the interest authorized by sub. (7) and before any creditor other than a bank, savings bank, savings and loan association or credit union may assess a finance charge on a consumer loan in excess of 18% per annum, such year, that person shall first obtain a license from the commissioner of banking. Applications for such a license shall be in writing and upon forms provided for this purpose by the commissioner. Every such An applicant at the time of making such an application shall pay to the commissioner a nonrefundable $300 fee of $100 for investigating the application and the sum of $200 as an a $500 annual license fee for the period terminating on the last day of the current calendar year. If the cost of the investigation exceeds $100 $300, the applicant shall upon demand of the commissioner pay to the commissioner the amount by which the cost of the investigation exceeds the $100 nonrefundable fee.

AB150-engrossed, s. 4158 Section 4158. 138.09 (1) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is renumbered 138.09 (1m) and amended to read:

AB150-engrossed,1491,21 138.09 (1m) Before any person may do business under this section or charge the interest authorized by sub. (7) and before any creditor other than a bank, savings bank, savings and loan association or credit union may assess a finance charge on a consumer loan in excess of 18% per year, that person shall first obtain a license from the commissioner of banking division. Applications for a license shall be in writing and upon forms provided for this purpose by the commissioner division. An applicant at the time of making an application shall pay to the commissioner division a nonrefundable $300 fee for investigating the application and a $500 annual license fee for the period terminating on the last day of the current calendar year. If the cost of the investigation exceeds $300, the applicant shall upon demand of the commissioner division pay to the commissioner division the amount by which the cost of the investigation exceeds the nonrefundable fee.

AB150-engrossed, s. 4159 Section 4159. 138.09 (1d) of the statutes is created to read:

AB150-engrossed,1491,23 138.09 (1d) In this section, "division" means the division of banking.

AB150-engrossed, s. 4160 Section 4160. 138.09 (2) of the statutes is amended to read:

AB150-engrossed,1492,12 138.09 (2) The commissioner division may also require the applicant to file with the commissioner division, and to maintain in force, a bond in which the applicant shall be the obligor, in a sum not to exceed $5,000 with one or more corporate sureties licensed to do business in Wisconsin, whose liability as such sureties shall not exceed the sum of $5,000 in the aggregate, to be approved by the commissioner division, and such bond shall run to the state of Wisconsin for the use of the state and of any person or persons who may have a cause of action against the obligor of the bond under the provisions of this section. Such bonds shall be conditioned that the obligor will conform to and abide by each and every provision of this section, and will pay to the state or to any person or persons any and all moneys that may become due or owing to the state or to such person or persons from the obligor under and by virtue of the provisions of this chapter.

AB150-engrossed, s. 4161 Section 4161. 138.09 (3) (a) of the statutes is amended to read:

AB150-engrossed,1492,23 138.09 (3) (a) Upon the filing of such application and the payment of such fee, the commissioner division shall investigate the relevant facts, and if the commissioner division shall find 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 commissioner division shall thereupon issue a license to said applicant to make loans in accordance with the provisions of this section. If the commissioner division shall not so find, he or she the division shall deny such application.

AB150-engrossed, s. 4162 Section 4162. 138.09 (3) (b) of the statutes is amended to read:

AB150-engrossed,1493,4 138.09 (3) (b) Every license shall remain in force and effect until suspended or revoked in accordance with this section or surrendered by the licensee, and every licensee shall, on or before each December 10, pay to the commissioner division the annual license fee for the next succeeding calendar year.

AB150-engrossed, s. 4163 Section 4163. 138.09 (3) (c) of the statutes is amended to read:

AB150-engrossed,1493,11 138.09 (3) (c) Such license shall not be assignable and shall permit operation under it only at or from the location specified in the license at which location all loans shall be consummated, but this provision shall not prevent the licensee from making loans under this section which are not initiated or consummated by face to face contact away from the licensed location if permitted by the commissioner division in writing or by rule or at an auction sale conducted or clerked by a licensee.

AB150-engrossed, s. 4164 Section 4164. 138.09 (3) (d) of the statutes is amended to read:

AB150-engrossed,1493,20 138.09 (3) (d) A separate license shall be required for each place of business maintained by the licensee. Whenever a licensee shall change the address of its place of business to another location within the same city, village or town the licensee shall at once give written notice thereof to the commissioner, who division, which shall replace the original license with an amended license showing the new address, provided the location meets with the requirements of par. (e). No change in the place of business of a licensee to a different city, village or town shall be permitted under the same license.

AB150-engrossed, s. 4165 Section 4165. 138.09 (3) (e) of the statutes is amended to read:

AB150-engrossed,1494,7 138.09 (3) (e) A licensee may conduct, and permit others to conduct, at the location specified in its license, any one or more of the following businesses not subject to this section: A business engaged in making loans for business or agricultural purposes or exceeding $25,000 in principal amount except that all such loans having terms of 49 months or more are subject to sub. (7) (gm) 2. or 4., a business engaged in making first lien real estate mortgage loans under ss. 138.051 to 138.06, a loan, finance or discount business under s. 218.01, or an insurance business, or a currency exchange under s. 218.05, or a seller of checks business under ch. 217; but merchandise shall not be sold at such location; and no other business shall be conducted at such location unless written authorization is granted the licensee by the commissioner division.

AB150-engrossed, s. 4166 Section 4166. 138.09 (3) (f) of the statutes is amended to read:

AB150-engrossed,1494,19 138.09 (3) (f) Every licensee shall make an annual report to the commissioner division for each calendar year on or before March 15 of the following year. Such report shall cover business transacted by the licensee under the provisions of this section and shall give such reasonable and relevant information as the commissioner division may require. Such reports shall be made upon blanks furnished by the commissioner division and shall be signed and verified by the oath or affirmation of the licensee if an individual, one of the partners if a partnership, a member or manager if a limited liability company or an officer of the corporation or association if a corporation or association. Any licensee operating under this section shall keep the records affecting loans made pursuant to this section separate and distinct from the records of any other business of such licensee.

AB150-engrossed, s. 4167 Section 4167. 138.09 (4) (intro.) of the statutes is amended to read:

AB150-engrossed,1495,7 138.09 (4) (intro.) The commissioner division for the purpose of discovering violations of this chapter may cause an investigation to be made of the business of the licensee transacted under this section, and shall cause an investigation to be made of convictions reported to the commissioner division by any district attorney for violation by a licensee of this chapter. The place of business, books of account, papers, records, safes and vaults of said licensee shall be open to inspection and examination by the commissioner or the commissioner's representative division for the purpose of such investigation and the commissioner division may examine under oath all persons whose testimony the commissioner division may require relative to said investigation. The commissioner division may, upon notice to the licensee and reasonable opportunity to be heard, suspend or revoke such license after such hearing if:

AB150-engrossed, s. 4168 Section 4168. 138.09 (4) (a) of the statutes is amended to read:

AB150-engrossed,1495,11 138.09 (4) (a) The licensee has violated any provision of this chapter and if the commissioner division determines such violation justifies the suspension or revocation of the license;

AB150-engrossed, s. 4169 Section 4169. 138.09 (4) (b) of the statutes is amended to read:

AB150-engrossed,1495,15 138.09 (4) (b) Any fact or condition exists which, if it had existed at the time of the original application for such license, would have warranted the commissioner division in refusing to issue such license; and

AB150-engrossed, s. 4170 Section 4170. 138.09 (4a) of the statutes is amended to read:

AB150-engrossed,1496,6 138.09 (4a) Any licensee and any other person aggrieved by any order of the commissioner division has the right to appeal to the board of review under this section, provided a written notice of appeal is served upon the commissioner division and upon the chairperson or secretary of the consumer credit review board under s. 220.037 within 10 days from the date of the commissioner's division's order. Upon service of a written notice of appeal as herein provided the review board shall hold a hearing within a reasonable time thereafter. The review board shall give the parties a written notice of the time and place said hearing will be held. The cost of any investigation or examination or hearing, including witness fees or any other expenses, conducted by the commissioner division or the review board shall be paid by the licensee so examined or by the appellant within 30 days after demand therefor by the commissioner division, and the state may maintain an action for the recovery of such costs and expenses in any court of competent jurisdiction, except that no cost shall be charged an appellant by the review board unless the board sustains the commissioner division.

AB150-engrossed, s. 4171 Section 4171. 138.09 (6) (a) of the statutes is amended to read:

AB150-engrossed,1496,13 138.09 (6) (a) Except as provided in par. (b), the licensee shall keep such books and records in the licensee's place of business as in the opinion of the commissioner of banking division will enable the commissioner division to determine whether the provisions of this chapter are being observed. Every such licensee shall preserve the records of final entry used in such business, including cards used in the card system, if any, for a period of at least 2 years after the making of any loan recorded therein.

AB150-engrossed, s. 4172 Section 4172. 138.09 (6) (b) of the statutes is amended to read:

AB150-engrossed,1496,21 138.09 (6) (b) A licensee may keep the books and records specified in par. (a) at a single location inside or outside of this state if the books and records are kept at a location licensed under this section. The licensee shall organize the books and records by the place of business where the records originated and shall keep the books and records separate from other records for business conducted at that location. Actual costs incurred by the commissioner division to examine books and records maintained outside of this state shall be paid by the licensee.

AB150-engrossed, s. 4173 Section 4173. 138.09 (7) (bn) 4. of the statutes is amended to read:

AB150-engrossed,1496,25 138.09 (7) (bn) 4. Information regarding the amount of the maximum finance charge under subds. 1. and 2. for any month or calendar year quarter shall be available at the office of the commissioner division.

AB150-engrossed, s. 4174 Section 4174. 138.09 (11) of the statutes is amended to read:

AB150-engrossed,1497,3 138.09 (11) The commissioner division may employ necessary examiners or other personnel from time to time and fix their compensation.

AB150-engrossed, s. 4175 Section 4175. 138.12 (1) (a) of the statutes is amended to read:

AB150-engrossed,1497,6 138.12 (1) (a) "Commissioner" "Division" means the commissioner division of banking.

AB150-engrossed, s. 4176 Section 4176. 138.12 (1) (c) of the statutes is amended to read: