AB218: Bill Text

AB218,44,17 (e) In determining the amount of a civil penalty to impose under par. (a) or (b), a court shall consider the seriousness of the violation, the good faith of the violator, any previous violations by the violator, the deleterious effect of the violation on the public, the net worth of the violator, and any other factor the court considers relevant to the determination of the civil penalty.

AB218,44,19 (33) Suspension, revocation, or nonrenewal of license. (a) In this subsection, "insolvent" means any of the following:

AB218,44,21 1. Having generally ceased to pay debts in the ordinary course of business other than as a result of a good-faith dispute.

AB218,44,22 2. Being unable to pay debts as they become due.

AB218,44,24 3. Being insolvent within the meaning of the federal bankruptcy law, 11 USC 101 to 1532.

AB218,45,2 (b) The division may suspend, revoke, or deny renewal of a provider's license if any of the following apply:

AB218,45,4 1. A fact or condition exists that, if it had existed when the licensee applied for licensure as a provider, would have been a reason for denying licensure.

AB218,45,6 2. The provider has committed a material violation of this section or a rule or order of the division under this section.

AB218,45,7 3. The provider is insolvent.

AB218,45,11 4. The provider or an employee, affiliate, or agent of the provider has refused to permit the division to make an examination authorized by this section, failed to comply with sub. (31) (b) 2. within 15 days after request, or made a material misrepresentation or omission in complying with sub. (31) (b) 2.

AB218,45,13 5. The provider has not responded within a reasonable time and in an appropriate manner to communications from the division.

AB218,45,15 6. The provider fails to pay any fee required under this section or to maintain in effect the surety bond required under sub. (13).

AB218,45,18 (c) In accordance with s. 73.0301, the division shall revoke a license if the department of revenue has certified under s. 73.0301 that the licensee is liable for delinquent taxes.

AB218,46,2 (d) In accordance with a memorandum of understanding entered into under s. 49.857, the division shall restrict or suspend a license if the licensee is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse.

AB218,46,6 (e) If a provider does not comply with sub. (21) (f) or if the division otherwise finds that the public health or safety or general welfare requires emergency action, the division may order a summary suspension of the provider's license, effective on the date specified in the order.

AB218,46,10 (f) If the division suspends, revokes, or denies renewal of the license of a provider, the division may seek a court order authorizing seizure of any or all of the money in a trust account required by sub. (21), books, records, accounts, and other property of the provider which are located in this state.

AB218,46,12 (g) If the division suspends or revokes a provider's license, the provider may appeal and request a hearing pursuant to subch. III of ch. 227.

AB218,46,16 (34) Private enforcement. (a) If an individual voids an agreement pursuant to sub. (24) (b), the individual may recover in a civil action all money paid or deposited by or on behalf of the individual pursuant to the agreement, except amounts paid to creditors, in addition to the recovery under par. (c) 3. and 4.

AB218,46,20 (b) If an individual voids an agreement pursuant to sub. (24) (a), the individual may recover in a civil action 3 times the total amount of the fees, charges, money, and payments made by the individual to the provider, in addition to the recovery under par. (c) 4.

AB218,46,23 (c) Subject to par. (d), an individual with respect to whom a provider violates this section may recover all of the following in a civil action from the provider and any person that caused the violation:

AB218,46,25 1. Compensatory damages for injury, including noneconomic injury, caused by the violation.

AB218,47,4 2. Except as otherwise provided in par. (d) and subject to adjustment of the dollar amount pursuant to sub. (31) (f), with respect to a violation of sub. (16), (18), (19), (20), (21), (22), (23), (26), or (27) (a), (b), or (d), the greater of the amount recoverable under subd. 1. or $5,000.

AB218,47,5 3. Punitive damages.

AB218,47,6 4. Reasonable attorney's fees and costs.

AB218,47,8 (d) In a class action, except for a violation of sub. (27) (a) 5., the minimum damages provided in par. (c) 2. do not apply.

AB218,47,12 (e) In addition to the remedy available under par. (c), if a provider violates an individual's rights under sub. (19), the individual may recover in a civil action all money paid or deposited by or on behalf of the individual pursuant to the agreement, except for amounts paid to creditors.

AB218,47,20 (f) A provider is not liable under this subsection for a violation of this section if the provider proves that the violation was not intentional and resulted from a good-faith error notwithstanding the maintenance of procedures reasonably adapted to avoid the error. An error of legal judgment with respect to a provider's obligations under this section is not a good-faith error. If, in connection with a violation, the provider has received more money than authorized by an agreement or this section, the defense provided by this paragraph is not available unless the provider refunds the excess within 2 business days of learning of the violation.

AB218,47,22 (g) The division shall assist an individual in enforcing a judgment against the surety bond provided under sub. (13).

AB218,47,25 (35) Violation of unfair or deceptive practices. If an act or practice of a provider violates both this section and ch. 100, an individual may not recover under both for the same act or practice.

AB218,48,3 (36) Statute of limitations. (a) An action or proceeding brought pursuant to sub. (32) (a), (b), or (c) must be commenced within 4 years after the conduct that is the basis of the division's complaint.

AB218,48,5 (b) An action brought pursuant to sub. (34) must be commenced within 2 years after the latest of the following:

AB218,48,6 1. The individual's last transmission of money to a provider.

AB218,48,8 2. The individual's last transmission of money to a creditor at the direction of the provider.

AB218,48,9 3. The provider's last disbursement to a creditor of the individual.

AB218,48,10 4. The provider's last accounting to the individual pursuant to sub. (26) (a).

AB218,48,12 5. The date on which the individual discovered or reasonably should have discovered the facts giving rise to the individual's claim.

AB218,48,14 6. Termination of actions or proceedings by the division with respect to a violation of the section.

AB218,48,19 (c) The period prescribed in par. (b) 5. is tolled during any period during which the provider or, if different, the defendant has materially and willfully misrepresented information required by this section to be disclosed to the individual, if the information so misrepresented is material to the establishment of the liability of the defendant under this section.

AB218,48,22 (37) Uniformity of application and construction. In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

AB218,49,2 (38) Relation to Electronic Signatures in Global and National Commerce Act. This section modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act (15 USC 7001 to 7031) but does not modify, limit, or supersede 15 USC 7001 (c) or authorize electronic delivery of any of the notices described in 15 USC 7003 (b).

AB218, s. 5 Section 5. 218.02 (9) of the statutes is renumbered 218.02 (39).

AB218, s. 6 Section 6. 218.02 (10) of the statutes is renumbered 218.02 (40).

AB218, s. 7 Section 7. 220.02 (2) (b) of the statutes is amended to read:

AB218,49,9 220.02 (2) (b) The lending of money under s. 138.09 or those relating to finance companies, motor vehicle dealers, adjustment service companies debt-management service providers, community currency exchanges, and collection agencies under ch. 218.

AB218, s. 8 Section 8. 220.02 (3) of the statutes is amended to read:

AB218,49,20 220.02 (3) It is the intent of sub. (2) to give the division jurisdiction to enforce and carry out all laws relating to banks or banking in this state, including those relating to state banks, savings banks, savings and loan associations, and trust company banks, and also all laws relating to small loan companies or other loan companies or agencies, finance companies, insurance premium finance companies, motor vehicle dealers, adjustment service companies debt-management service providers, community currency exchanges, mortgage bankers, loan originators, mortgage brokers, and collection agencies and those relating to sellers of checks under ch. 217, whether doing business as corporations, individuals, or otherwise, but to exclude laws relating to credit unions.

AB218, s. 9 Section 9. 422.501 (2) (b) 4. of the statutes is amended to read:

AB218,49,24 422.501 (2) (b) 4. A person licensed as an adjustment service company a debt-management service provider under s. 218.02 if the person is acting within the course and scope of that license.

AB218, s. 10 Section 10. Initial applicability.

AB218,50,3 (1) This act first applies to agreements for the performance of debt-management services that are entered into, extended, modified, or renewed on the effective date of this subsection.

AB218, s. 11 Section 11. Effective date.

AB218,50,6 (1) This act takes effect on the first day of the 13th month beginning after publication.

AB218,50,7 (End)