AB150: Bill Text

AB150,1886,22 217.06 (2) The financial responsibility, financial condition, business experience, character and general fitness of the applicant are such, in the opinion of the office department, as to command the confidence of the public and to warrant belief that the business will be conducted honestly and efficiently. The office department may investigate and consider the qualifications, character and general fitness of officers and directors or others associated with the applicant in determining whether this qualification has been met.

AB150, s. 5807 Section 5807. 217.06 (3) (a) of the statutes is amended to read:

AB150,1887,17 217.06 (3) (a) A surety bond issued by a bonding company or insurance company authorized to do business in this state has been filed in the minimum principal sum of $10,000 for the first location and an additional sum of $5,000 for each additional location unless the office department determines that a bond in such amount is insufficient in which event it may require a bond in a larger sum, but in no event shall the bond exceed $300,000. The bond shall be in a form satisfactory to the office department and shall run to the state for the benefit of any claimants against the applicant or the applicant's agents to secure the faithful performance of the obligations of the applicant and the applicant's agents with respect to the receipt, handling, transmission and payment of money in connection with the sale of checks and to reimburse the office department for any examination or liquidation expense. The aggregate liability of the surety in no event shall exceed the principal sum of the bond. The surety shall have the right to cancel such bond upon giving not less than 60 days' written notice to the office department, but such cancellation shall not release the surety from any liability that may arise with respect to obligations of the licensee outstanding on or prior to the effective day that such bond is canceled. Such claimants against the applicant or the applicant's agents may themselves bring suit directly on the bond, or the attorney general may bring suit thereon in behalf of such claimants, either in one action or successive actions.

AB150, s. 5808 Section 5808. 217.06 (3) (b) of the statutes is amended to read:

AB150,1888,7 217.06 (3) (b) In lieu of such corporate surety bond, or of any portion of the principal thereof as required by this section, the applicant may deposit with such banks or trust companies in this state as the applicant designates and the office department approves, interest-bearing obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States, or of this state, or of a city, county, town, village, school district or instrumentality of this state, or guaranteed by this state, to an aggregate amount, based upon principal amount or market value, whichever is lower, of not less than the amount of the required corporate surety bond or portion thereof. The securities shall be held to secure the same obligations as would the surety bond but the depositor shall be entitled to receive all interest thereon, shall have the right with the approval of the office department to substitute other securities for those deposited, and shall be required to do so on written order of the office department. The licensee shall pay all expenses of maintaining the deposit of obligations deposited in lieu of a corporate surety bond.

AB150, s. 5809 Section 5809. 217.07 of the statutes is amended to read:

AB150,1888,13 217.07 Order denying application. If the office department is not satisfied as to all matters specified in s. 217.06, it shall enter a special order denying the application for a license and shall return the license fee to the applicant and retain the investigation fee. The office department shall make findings of fact as part of and in support of its orders denying any application for a license.

AB150, s. 5810 Section 5810. 217.08 (2) of the statutes is amended to read:

AB150,1889,9 217.08 (2) Annual license fee; additions and deletions of locations. Each licensee shall file with the office department on or before December 1 of each year a statement listing the locations of the offices of the licensee and the names and locations of the agents authorized by the licensee. Every licensee shall also on or before December 1 of each year file a financial statement of its assets and liabilities as of a date not earlier than the preceding August 31 or, if the licensee is audited annually by an independent public accountant at the end of each fiscal year, the licensee may submit financial statements certified by said accountant for the licensee's latest fiscal year. Such statement shall be accompanied by the annual licensee fee for the calendar year beginning the following January 1 in an amount determined under s. 217.05. The amount of the surety bond or deposit of securities required by s. 217.06 shall be adjusted to reflect the number of such locations. Licensees which do not pay the maximum license fee under s. 217.05 and which do not maintain a bond or deposit of securities in the maximum sum of $300,000 as provided in s. 217.06 shall also file a supplemental statement setting forth any changes in the list of offices and agents with the office department on or before April 1, July 1 and October 1 of each year, and the principal sum of the corporate surety bond or deposit of securities required by s. 217.06 shall be adjusted to reflect any increase or decrease in the number of such locations. Any additional license fees which may become due under s. 217.05 shall be paid to the office department.

AB150, s. 5811 Section 5811. 217.08 (3) of the statutes is amended to read:

AB150,1889,13 217.08 (3) Removal consent. Whenever a licensee changes its single or principal office location to another location it shall give written notice thereof to the office department, which shall amend the license accordingly without charge.

AB150, s. 5812 Section 5812. 217.09 (1) (intro.) of the statutes is amended to read:

AB150,1889,17 217.09 (1) (intro.) The office department shall, after complaint, notice and hearing, following the procedure in s. 217.19 so far as applicable, revoke any license in the following cases:

AB150, s. 5813 Section 5813. 217.09 (1) (c) of the statutes is amended to read:

AB150,1889,21 217.09 (1) (c) If any fact or condition exists which, if it had existed at the time of the original application for such license, clearly would have warranted the office department to refuse to issue such license.

AB150, s. 5814 Section 5814. 217.09 (2) of the statutes is amended to read:

AB150,1889,25 217.09 (2) If the office department finds cause for revocation of a license, it shall issue a special order revoking the license, which includes its findings of fact upon which such order is based.

AB150, s. 5815 Section 5815. 217.09 (3) of the statutes is amended to read:

AB150,1890,5 217.09 (3) The office department may, for reasonable cause and after a hearing on 5 days' notice, suspend any license for a period not exceeding 30 days, pending further investigation, and in so doing shall issue a special order including its findings of fact upon which such order is based.

AB150, s. 5816 Section 5816. 217.09 (4) of the statutes is amended to read:

AB150,1890,12 217.09 (4) The office department shall revoke or suspend only the authorization to operate at the location with respect to which grounds for revocation or suspension apply, but if the office department finds that such grounds for revocation or suspension apply to more than one location operated by such licensee, then the office department shall revoke or suspend all of the authorizations of the licensee to which such grounds apply.

AB150, s. 5817 Section 5817. 217.09 (5) of the statutes is amended to read:

AB150,1890,16 217.09 (5) Any licensee may surrender any license by giving written notice to the office department that the licensee surrenders such license and returns the license therewith.

AB150, s. 5818 Section 5818. 217.09 (6) of the statutes is amended to read:

AB150,1890,19 217.09 (6) The office department may on its own motion issue a new license when a license has been revoked.

AB150, s. 5819 Section 5819. 217.10 (intro.) of the statutes is amended to read:

AB150,1890,22 217.10 (title) Powers of office department. (intro.) The office department may:

AB150, s. 5820 Section 5820. 217.10 (2) of the statutes is amended to read:

AB150,1891,3 217.10 (2) Investigate, at any time, the business and examine the books, accounts, records and files used therein of every licensee or agent thereof. The cost of each such examination shall be paid by every licensee so examined within 30 days after demand therefor by the office department, and the state may maintain an action for recovery of such costs in any court of competent jurisdiction;

AB150, s. 5821 Section 5821. 217.12 (4) of the statutes is amended to read:

AB150,1891,7 217.12 (4) Name, forbidden use. No company shall use a name which indicates that it is a branch, unit or agency of the state or federal government or of any department or branch thereof.

AB150, s. 5822 Section 5822. 217.15 of the statutes is amended to read:

AB150,1891,12 217.15 Delinquent seller of checks. The commissioner of banking department may take possession of any insolvent seller of checks under the circumstances and utilizing the procedure prescribed in s. 218.04 (9m), so far as applicable.

AB150, s. 5823 Section 5823. 217.17 (1) of the statutes is amended to read:

AB150,1891,15 217.17 (1) The office department may, in relation to any matter within the office's department's powers, issue subpoenas and take testimony.

AB150, s. 5824 Section 5824. 217.17 (2) of the statutes is amended to read:

AB150,1891,22 217.17 (2) Witnesses shall be entitled to the same fees as are allowed to witnesses in courts of record. Such fees shall be audited and paid by the state in the same manner as other expenses of the office department are audited and paid. No witness subpoenaed at the instance of any party other than the office department shall be entitled to payment of fees by the state, unless the office department certifies that the testimony of such witness was material to the hearing or proceeding.

AB150, s. 5825 Section 5825. 217.18 (1) of the statutes is amended to read:

AB150,1892,3 217.18 (1) The office department may, by general or special order require licensees to file with the office department at such time and in such manner as it may direct, sworn or unsworn reports, or sworn or unsworn answers in writing to specific questions as to any matter upon which the office department may demand information under this chapter.

AB150, s. 5826 Section 5826. 217.18 (2) of the statutes is amended to read:

AB150,1892,9 217.18 (2) The office department or any official, employe or agent authorized by it may, for purposes within the office's department's powers, have access during business hours to the offices and places of business, books, accounts, papers, records, files, safes and vaults of persons engaged in business as a seller of checks, whether licensees or not.

AB150, s. 5827 Section 5827. 217.18 (3) of the statutes is amended to read:

AB150,1892,15 217.18 (3) No person shall refuse, neglect or fail to render any reports or answer required under this section at such time and in such manner as the office department may prescribe. No person shall wilfully make any false entry or statement in any report or answer, nor shall wilfully fail to make full and true entries and statements in any report or answer required under authority of this chapter.

AB150, s. 5828 Section 5828. 217.19 (title) of the statutes is amended to read:

AB150,1892,17 217.19 (title) Office Department orders; rules of procedure.

AB150, s. 5829 Section 5829. 217.19 (1) of the statutes is amended to read:

AB150,1892,20 217.19 (1) The office department, prior to the issuance of any general order under this chapter, shall hold a public hearing.

AB150, s. 5830 Section 5830. 217.19 (2) of the statutes is amended to read:

AB150,1893,3 217.19 (2) The office department, prior to the issuance of any special order, shall serve a complaint, prepared in the name of the office department, upon the person against whom the complaint is made and shall accompany such complaint by notice of a public hearing to be held in the matter not sooner than 10 days after such service. The person against whom the complaint is made shall be entitled to be heard in person, or by agent or attorney, and shall have the benefit of subpoena process to compel the attendance of witnesses.

AB150, s. 5831 Section 5831. 217.19 (4) of the statutes is amended to read:

AB150,1893,7 217.19 (4) The office department shall serve a copy of any special order upon the person against whom the order is issued and such an order shall be effective upon such service, unless otherwise indicated in the order.

AB150, s. 5832 Section 5832. 217.19 (5) of the statutes is amended to read:

AB150,1893,11 217.19 (5) A complaint, notice of hearing, subpoena, special order or any other process issued by the office department may be served in the same manner that process in a civil action is served.

AB150, s. 5833 Section 5833. 217.19 (6) of the statutes is amended to read:

AB150,1893,16 217.19 (6) The office department shall make its own rules of practice and procedure for the conduct of hearings and other proceedings before it, not inconsistent with any provision of this chapter or with any other provision of law governing such practice or procedure.

AB150, s. 5834 Section 5834. 217.20 of the statutes is amended to read:

AB150,1893,19 217.20 Court review. Orders of the office department under this chapter shall be subject to review in the manner provided in ch. 227.

AB150, s. 5835 Section 5835. 217.21 (1) of the statutes is amended to read:

AB150,1893,24 217.21 (1) The licensee shall keep and use in the licensee's business such books, accounts and records as the office department, by general or special order, may find to be necessary and require to enable it to determine whether such licensee is complying with this chapter and with the lawful orders issued hereunder.

AB150, s. 5836 Section 5836. 217.21 (2) of the statutes is amended to read:

AB150,1894,8 217.21 (2) Each licensee shall annually, on or before March 15, file a report with the office department giving such reasonable and relevant information as the office department may, by general or special order, require concerning the business and operations conducted by such licensee within the state. Such report shall be made under oath and shall be in the form prescribed by the office department and shall be subject to public inspection in the discretion of the office department. The office department shall make and publish annually an analysis and recapitulation of such reports.

AB150, s. 5837 Section 5837. 218.01 (1) (c) of the statutes is repealed.

AB150, s. 5838 Section 5838. 218.01 (1) (d) of the statutes is repealed.

AB150, s. 5839 Section 5839. 218.01 (1) (jm) of the statutes is amended to read:

AB150,1894,15 218.01 (1) (jm) "License period" means the period during which a particular type of license described in sub. (2) (d) is effective, as established by the department of transportation or commissioner department of financial institutions under sub. (2) (cm) 2. or 4.

AB150, s. 5840 Section 5840. 218.01 (1) (k) of the statutes is amended to read:

AB150,1894,19 218.01 (1) (k) "Licensor" means the body, either the commissioner department of financial institutions or the department of transportation or both, issuing a license hereunder.

AB150, s. 5841 Section 5841. 218.01 (1a) of the statutes is amended to read:

AB150,1895,10 218.01 (1a) (title) Authority of department and commissioner licensors. The department of transportation shall issue the licenses provided for in sub. (2) (d) 1. to 6. and have supervision over the licensees thereunder in respect to all the provisions of this section, except only as to such matters as relate to the sale of motor vehicles on retail instalment contracts and the financing and servicing of such contracts, over which matter the commissioner department of financial institutions shall have jurisdiction and control, and the commissioner department of financial institutions shall issue the licenses to sales finance companies. Either licensor hereunder shall, upon request, furnish the other licensor with any information it may have in respect to any licensee or applicant for license or any transaction in which such licensee or applicant may be a party or be interested. No license shall be issued under sub. (2) (d) 1. and 8. until both licensors have approved the application. The suspension or revocation of either of such licenses shall automatically likewise suspend or revoke the other license; and such suspension or revocation shall be certified by the licensor ordering it to the other licensor.

AB150, s. 5842 Section 5842. 218.01 (2) (b) of the statutes is amended to read:

AB150,1896,2 218.01 (2) (b) Application for license shall be made to the licensor, at such time, in such form and with such information as the licensor shall require and shall be accompanied by the required fee. fees. An applicant for a sales finance company license, other than a a motor vehicle dealer, shall pay to the commissioner a nonrefundable $300 investigation fee in addition to the license fee under par. (dr). If the cost of an investigation exceeds $300, the applicant shall, upon demand of the commissioner, pay the amount by which the cost of the investigation exceeds the nonrefundable fee. A licensee is not required to pay an investigation fee for the renewal of a license. The licensor may require the applicant to provide information relating to any pertinent matter that is commensurate with the safeguarding of the public interest in the locality in which the applicant proposes to engage in business, except that information relating to the applicant's solvency and financial standing may not be required except as provided in par. (h) 1. The information provided may be considered by the licensor in determining the fitness of the applicant to engage in business as set forth in this section.

AB150, s. 5843 Section 5843 . 218.01 (2) (b) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB150,1896,20 218.01 (2) (b) Application for license shall be made to the licensor, at such time, in such form and with such information as the licensor shall require and shall be accompanied by the required fees. An applicant for a sales finance company license, other than a a motor vehicle dealer, shall pay to the commissioner department of financial institutions a nonrefundable $300 investigation fee in addition to the license fee under par. (dr). If the cost of an investigation exceeds $300, the applicant shall, upon demand of the commissioner department of financial institutions, pay the amount by which the cost of the investigation exceeds the nonrefundable fee. A licensee is not required to pay an investigation fee for the renewal of a license. The licensor may require the applicant to provide information relating to any pertinent matter that is commensurate with the safeguarding of the public interest in the locality in which the applicant proposes to engage in business, except that information relating to the applicant's solvency and financial standing may not be required except as provided in par. (h) 1. The information provided may be considered by the licensor in determining the fitness of the applicant to engage in business as set forth in this section.

AB150, s. 5844 Section 5844. 218.01 (2) (bb) of the statutes is amended to read:

AB150,1897,4 218.01 (2) (bb) A motor vehicle dealer or an applicant for a motor vehicle dealer license shall provide and maintain in force a bond or irrevocable letter of credit of not less than $25,000 or, if the dealer or applicant sells or proposes to sell motorcycles and not other types of motor vehicles, a bond or irrevocable letter of credit of not less than $5,000. The bond or letter of credit shall be executed in the name of the department of transportation for the benefit of any person who sustains a loss because of an act of a motor vehicle dealer that constitutes grounds for the suspension or revocation of a license under this section.

AB150, s. 5845 Section 5845. 218.01 (2) (bc) of the statutes is amended to read:

AB150,1897,19 218.01 (2) (bc) Except as provided in this subsection every dealer and distributor of new motor vehicles shall, at the time of application for a license, file with the department of transportation a certified copy of the applicant's written agreement and a certificate of appointment as dealer or distributor, respectively. The certificate of appointment shall be signed by an authorized agent of the manufacturer of domestic vehicles on direct manufacturer-dealer agreements; or, where the manufacturer is wholesaling through an appointed distributorship, by an authorized agent of the distributor on indirect distributor-dealer agreements. The certificate shall be signed by an authorized agent of the importer on direct importer-dealer agreements of foreign-made vehicles; or by an authorized agent of the distributor on indirect distributor-dealer agreements. The distributor's certificate of appointment shall be signed by an authorized agent of the manufacturer; or by an agent of the manufacturer or importer of foreign manufactured vehicles.

AB150, s. 5846 Section 5846. 218.01 (2) (bd) 1. of the statutes is amended to read:

AB150,1898,16 218.01 (2) (bd) 1. A written agreement need not be filed for each dealer or distributor if the manufacturer on direct dealerships or distributor on indirect dealerships or importer on direct dealerships utilizes the identical basic agreement for all its dealers or distributors in Wisconsin and certifies in the certificate of appointment that such blanket agreement is on file and such written agreement with such dealer or distributor, respectively, is identical with the filed blanket agreement, and has filed with the department of transportation one such agreement together with a list of authorized dealers or distributors. Such manufacturer, distributor or importer shall notify the department of transportation immediately of the appointment of any additional dealers or distributors, of any revisions of or additions to the basic agreement on file, or of any individual dealer or distributor supplements to such agreement. Except as provided in subd. 1g., the manufacturer, distributor or importer shall notify the dealer or distributor and forward a copy of such notice to the department of transportation of the discontinuation or cancellation of the agreement of any of its dealers or distributors at least 60 days before the effective date thereof together with the specific grounds for discontinuation or cancellation of the agreement, if discontinued or canceled. Agreements and certificates of appointment are deemed to be continuing unless the manufacturer, distributor or importer has notified the department of transportation of the discontinuation or cancellation of the agreement of any of its dealers or distributors, and annual renewal of certifications filed as provided in this subsection is not necessary.

AB150, s. 5847 Section 5847. 218.01 (2) (bd) 1g. of the statutes is amended to read:

AB150,1899,2 218.01 (2) (bd) 1g. The manufacturer, distributor or importer shall send a notice of discontinuation or cancellation by certified mail, and forward a copy of the notice to the department of transportation, not less than 20 days before the effective date of discontinuation or cancellation of the agreement, if the dealer or distributor fails to conduct its customary sales and service operations during its customary business hours for 7 consecutive business days unless the failure is caused by an act of God, by work stoppage or delays due to strikes or labor disputes or other reason beyond the dealer's or distributor's control or by an order of the department of transportation or the office of the commissioner of transportation.

AB150, s. 5848 Section 5848. 218.01 (2) (bd) 2. of the statutes is amended to read:

AB150,1899,13 218.01 (2) (bd) 2. Any dealer or distributor discontinued or canceled may, on or before the date on which the discontinuation or cancellation becomes effective, file with the department of transportation and division of hearings and appeals and serve upon the respondent a complaint for a determination of unfair discontinuation or cancellation under sub. (3) (a) 17. Allowing opportunity for an answer, the division of hearings and appeals shall thereafter schedule a hearing on and decide the matter. Agreements and certificates of appointment shall continue in effect until final determination of the issues raised in such complaint. If the complainant prevails he or she shall have a cause of action against the defendant for reasonable expenses and attorney fees incurred by him or her in such matter.

AB150, s. 5849 Section 5849. 218.01 (2) (bf) of the statutes is amended to read:

AB150,1899,18 218.01 (2) (bf) Within 60 days after the department of transportation issues a declaratory ruling under s. 227.41 that an agreement is inconsistent with par. (bm), a manufacturer, distributor or importer shall remove or revise any provision of the agreement declared to be inconsistent with par. (bm).

AB150, s. 5850 Section 5850. 218.01 (2) (bm) 1. a. of the statutes is amended to read:

AB150,1899,23 218.01 (2) (bm) 1. a. Waive a remedy or defense available to a distributor or dealer or other provision protecting the interests of a distributor or dealer under this section or under rules promulgated by the department of transportation under this section.

AB150, s. 5851 Section 5851. 218.01 (2) (bm) 2. b. of the statutes is amended to read: