Amendment ASA1-AB40

AB40-ASA1,1097,7 138.14 (10) (am) Penalties. Except as provided in par. (b) 2., no licensee may impose any penalty on a customer arising from the customer's prepayment of or default or late payment on a payday loan, including any payment under sub. (11g) (a).

AB40-ASA1, s. 2637hc Section 2637hc. 138.14 (11g) of the statutes is renumbered 138.14 (11g) (a) and amended to read:

AB40-ASA1,1097,14 138.14 (11g) (a) If Except as provided in par. (b), if a customer fails to repay a payday loan in full at the end of the loan term, the licensee that made the loan shall offer the customer the opportunity to repay the outstanding balance of the loan in 4 equal installments with due dates coinciding with the customer's pay period schedule.

AB40-ASA1, s. 2637he Section 2637he. 138.14 (11g) (b) of the statutes is created to read:

AB40-ASA1,1097,19 138.14 (11g) (b) If a licensee offers a customer the opportunity to make repayment under par. (a), then, during the 12-month period following the offer, no licensee, including the licensee making the offer, is required to offer the customer another opportunity to repay a payday loan under par. (a).

AB40-ASA1, s. 2637hg Section 2637hg. 138.14 (12) (b) of the statutes is amended to read:

AB40-ASA1,1098,2 138.14 (12) (b) No licensee may make a payday loan to a customer that results in the customer having an outstanding aggregate liability in principal, interest, and all other fees and charges, to all licensees who have made payday loans to the customer of more than $1,500 or 35 percent of the customer's gross monthly income, whichever is less. As provided in sub. (9m), a licensee may rely on a consumer report to verify a customer's income for purposes of this paragraph.

AB40-ASA1, s. 2637hi Section 2637hi. 138.14 (14) (d) 4. of the statutes is amended to read:

AB40-ASA1,1098,13 138.14 (14) (d) 4. Designate Automatically designate a payday loan as paid in the database 5 days after the maturity date of the loan unless a licensee reports to the database provider before that time that the loan remains open because of the customer's failure to make payment; that the loan is open because the customer's check or an electronic redeposit is in the process of clearing the banking system; that the loan remains open because the customer's check is being returned to the licensee for insufficient funds, a closed account, or a stop payment order; or that any other factors determined by the division are applicable. If a licensee makes such a report, the database provider shall designate the payday loan as an open transaction until the database provider is notified that the transaction is closed.

AB40-ASA1, s. 2637hk Section 2637hk. 138.14 (14) (h) of the statutes is amended to read:

AB40-ASA1,1098,23 138.14 (14) (h) The division shall, by order or rule, specify a database transaction fee of no more than $1 that the database provider shall charge to licensees to cover the costs of developing and implementing the database, and accessing the database to verify that a customer does not have any payday loans with the licensee or others that in combination with a new transaction will create a violation of this section. The database fee is payable directly to the division in a manner prescribed by the division and, if the department has contracted with a 3rd-party provider to operate the database, the division shall remit the fee to the 3rd-party provider as specified in the contract.

AB40-ASA1, s. 2637hm Section 2637hm. 138.14 (14) (j) of the statutes is created to read:

AB40-ASA1,1099,6 138.14 (14) (j) If the database, as determined by the division, is not fully operational, or the licensee is unable to access the database and, as determined under rules promulgated by the division, the alternate process established under par. (d) 2. is also unavailable, a licensee may rely upon the written verification of the customer in a statement provided in substantially the following form in at least 12-point type:

AB40-ASA1,1099,9 "I DO NOT HAVE ANY OUTSTANDING PAYDAY LOANS WITH THIS LICENSEE AND I DO NOT HAVE MORE PAYDAY LOANS WITH ANY OTHER LICENSED PAYDAY LOAN PROVIDER IN THIS STATE."

AB40-ASA1, s. 2637kd Section 2637kd. 138.16 (1) (a) of the statutes is created to read:

AB40-ASA1,1099,12 138.16 (1) (a) "Division" means the division of banking attached to the department of financial institutions.

AB40-ASA1, s. 2637ke Section 2637ke. 138.16 (1) (bm) of the statutes is created to read:

AB40-ASA1,1099,15 138.16 (1) (bm) "Licensed location" means the location specified in a license issued under s. 138.09 (1m) (a).

AB40-ASA1, s. 2637kf Section 2637kf. 138.16 (1) (c) of the statutes is amended to read:

AB40-ASA1,1099,21 138.16 (1) (c) "Title loan" means a loan of $25,000 or less to a borrower, who obtains or seeks to obtain the loan for personal, family, or household purposes, that is, or is to be, secured by an interest, other than a purchase money security interest, in the borrower's motor vehicle, and that has an original term of not more than 6 months.

AB40-ASA1, s. 2637kg Section 2637kg. 138.16 (1m) of the statutes is created to read:

AB40-ASA1,1100,2 138.16 (1m) Certificate of authorization. (a) Before a licensed lender may make title loans under this section, the licensed lender shall first obtain from the division, for each licensed location at which any title loan is to be made, a certificate authorizing the licensed lender to make title loans from that location.

AB40-ASA1,1100,8 (b) At the time of making an application for a certificate under par. (a), an applicant shall pay to the division an initial annual fee of $5,000. The valid period for the certificate shall be a calendar year and each certificate shall expire on the last day of the calendar year. To renew a certificate, the certificate holder shall, on or before December 10 of the year in which the certificate is to expire, pay to the division an annual renewal fee of $5,000 for the following calendar year.

AB40-ASA1, s. 2637kh Section 2637kh. 138.16 (2) of the statutes is renumbered 138.16 (2) (a) and amended to read:

AB40-ASA1,1100,16 138.16 (2) (a) No licensed lender may make a title loan to a borrower that results in the borrower having liability for the loan, in principal, of more than 50 percent of the retail value of the motor vehicle used as security for the loan. The division shall promulgate rules for determining the retail value of a motor vehicle for purposes of this paragraph, including rules specifying nationally recognized pricing guides that may be used for determining retail value at the time of loan origination.

AB40-ASA1, s. 2637ki Section 2637ki. 138.16 (2) (b) of the statutes is created to read:

AB40-ASA1,1100,19 138.16 (2) (b) 1. This section imposes no limit on the interest that a licensed lender may charge before the maturity date of a title loan.

AB40-ASA1,1100,25 2. If a title loan is not paid in full on or before the maturity date, a licensed lender may charge, after the maturity date, interest at a rate not exceeding 2.75 percent per month. Interest earned under this subdivision shall be calculated at the rate of one-thirtieth of the monthly rate charged for each calendar day that the balance of the loan is outstanding. Interest may not be assessed on any interest earned under this subdivision.

AB40-ASA1, s. 2637kj Section 2637kj. 138.16 (3) of the statutes is created to read:

AB40-ASA1,1101,7 138.16 (3) Rescission. A borrower may rescind a title loan, before the close of business on the next day of business after the loan is made, or, if the place of business where the loan is made is open 24 hours, before 5 p.m. on the next day of business after the loan is made, by returning to the licensed lender the proceeds of the loan. The licensed lender may not charge the borrower any fee for rescinding the title loan as provided in this subsection.

AB40-ASA1, s. 2637kk Section 2637kk. 138.16 (4) of the statutes is created to read:

AB40-ASA1,1101,11 138.16 (4) Other requirements. (a) A licensed lender may not make a title loan to a borrower that is secured by an interest in a motor vehicle if the motor vehicle is subject to another security interest.

AB40-ASA1,1101,14 (b) A licensed lender may not require a borrower to provide the licensed lender with a key or copy of a key to a motor vehicle used as security for a title loan as a condition for making the title loan to the borrower.

AB40-ASA1,1101,20 (c) A licensed lender or person acting on behalf of a licensed lender may not take possession of a motor vehicle used as security for a title loan to a borrower without sending notice to the borrower at least 20 days prior to taking possession. The notice shall state the intent to take possession and describe the basis for the right to take possession. This paragraph does not apply to possession that is obtained by a borrower's voluntary surrender of a motor vehicle.

AB40-ASA1,1101,24 (d) A licensed lender or other person may charge a borrower a reasonable storage fee for a motor vehicle of the borrower of which the licensed lender or person acting on behalf of the licensed lender has obtained possession, including possession that is obtained by voluntary surrender.

AB40-ASA1,1102,3 (e) A licensed lender shall return to a borrower the amount of any proceeds from the disposition of a motor vehicle used as security for a title loan to the borrower that exceed the borrower's liability to the licensed lender for the loan.

AB40-ASA1,1102,6 (f) A borrower is not liable to a licensed lender for any deficiency resulting from the licensed lender's disposition of a motor vehicle used as security for a title loan, unless the borrower has done any of the following:

AB40-ASA1,1102,8 1. Impaired the licensed lender's security interest by intentionally damaging or destroying the motor vehicle.

AB40-ASA1,1102,9 2. Intentionally concealed the motor vehicle.

AB40-ASA1,1102,11 3. Pledged to the licensed lender a motor vehicle that is already encumbered by an undisclosed prior lien.

AB40-ASA1,1102,14 4. Subsequent to obtaining the title loan, pledged or sold to a third party a motor vehicle used as security for a title loan without the licensed lender's written consent.

AB40-ASA1, s. 2637m Section 2637m. 139.01 (4) of the statutes is amended to read:

AB40-ASA1,1102,19 139.01 (4) "License," and "fermented malt beverages" have the same meaning as in s. 125.02, and "licensed premises" are premises described in licenses and permits issued by the department, cities, villages , or towns under the authority of said section.

AB40-ASA1, s. 2637n Section 2637n. 139.76 (1) of the statutes is amended to read:

AB40-ASA1,1103,18 139.76 (1) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale or other disposition for any purpose of tobacco products by any person engaged as a distributor of them at the rate, for tobacco products, not including moist snuff, of 71 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products and, for moist snuff, at the rate of 100 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products $1.76 per ounce, and at a proportionate rate for any other quantity or fractional part in excess of 1.2 ounces. The tax imposed on a can or package of moist snuff that weighs less than 1.2 ounces shall be equal to the amount of the tax imposed on a can or package that weighs 1.2 ounces. The tax imposed under this subsection on cigars shall not exceed an amount equal to 50 cents for each cigar. On products imported from another country, not including moist snuff, the rate of tax is 71 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties and transportation costs to the United States. On moist snuff imported from another country, the rate of the tax is 100 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties, and transportation costs to the United States. The tax attaches at the time the tobacco products are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the tobacco products. All tobacco products received in this state for sale or distribution within this state, except tobacco products actually sold as provided in sub. (2), shall be subject to such tax.

AB40-ASA1, s. 2637p Section 2637p. 139.78 (1) of the statutes is amended to read:

AB40-ASA1,1104,6 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco products in this state at the rate, for tobacco products, not including moist snuff, of 71 percent of the cost of the tobacco products and, for moist snuff, at the rate of 100 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products $1.76 per ounce, and at a proportionate rate for any other quantity or fractional part in excess of 1.2 ounces. The tax imposed on a can or package of moist snuff that weighs less than 1.2 ounces shall be equal to the amount of the tax imposed on a can or package that weighs 1.2 ounces. The tax imposed under this subsection on cigars shall not exceed an amount equal to 50 cents for each cigar. The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are exempt from the tobacco products tax under s. 139.76 (2).

AB40-ASA1, s. 2638 Section 2638. 145.01 (4) of the statutes is amended to read:

AB40-ASA1,1104,9 145.01 (4) Department. "Department" means the department of commerce safety and professional services.

AB40-ASA1, s. 2639 Section 2639. 145.02 (4) (a) of the statutes is amended to read:

AB40-ASA1,1104,16 145.02 (4) (a) The department shall prescribe rules as to the qualifications, examination and licensing of master and journeyman plumbers and restricted plumber licensees, for the licensing of utility contractors, for the registration of plumbing apprentices and pipe layers and for the registration and training of registered learners. The plumbers council, created under s. 15.157 (6) 15.407 (16), shall advise the department in formulating the rules.

AB40-ASA1, s. 2640 Section 2640. 145.17 (2) of the statutes is amended to read:

AB40-ASA1,1104,23 145.17 (2) The department shall prescribe rules as to the qualifications, examination and licensing of journeymen automatic fire sprinkler system fitters and automatic fire sprinkler contractors and for the registration and training of automatic fire sprinkler system apprentices. The automatic fire sprinkler system contractors and journeymen council, created under s. 15.157 (9) 15.407 (17), shall advise the department in formulating the rules.

AB40-ASA1, s. 2641 Section 2641. 145.20 (5) (c) of the statutes is amended to read:

AB40-ASA1,1105,7 145.20 (5) (c) The department of natural resources may suspend or revoke a license issued under s. 281.48 or a certificate issued under s. 281.17 (3) to the operator of a septage servicing vehicle if the department of natural resources finds that the licensee or operator falsified information on inspection forms. The department of commerce safety and professional services may suspend or revoke the license of a plumber licensed under this chapter if the department finds that the plumber falsified information on inspection forms.

AB40-ASA1, s. 2641c Section 2641c. 145.245 (4r) of the statutes is created to read:

AB40-ASA1,1105,13 145.245 (4r) Requirement to rehabilitate or replace private sewage systems. (a) A governmental unit, the department of safety and professional services, or the department of natural resources may require an owner of a principal residence to rehabilitate or replace a failing private sewage system that serves the principal residence only if one or more of the following apply:

AB40-ASA1,1105,17 1. The failing private sewage system is causing or results in the discharge of sewage into surface water, groundwater, a drain tile, bedrock, or a zone of saturated soil and the discharge has reached a property owned by a person other than the owner of the principal residence.

AB40-ASA1,1105,18 2. The owner receives a grant under this section.

AB40-ASA1,1105,21 3. The owner's annual family income, as determined by the department under sub. (5) (c) 2. to 4., exceeds 300 percent of the federal poverty line, as defined under 42 USC 9902 (2), for a family the size of the owner's family.

AB40-ASA1,1105,22 4. The owner is transferring ownership of the property.

AB40-ASA1,1106,2 (b) For a failing private sewage system to which subd. 1. applies, if the owner will be rehabilitating the system, the owner need rehabilitate the system only to the extent that is necessary to prevent the discharge from reaching property owned by a person other that the owner.

AB40-ASA1, s. 2641d Section 2641d. 145.245 (5) (a) 1. of the statutes is amended to read:

AB40-ASA1,1106,11 145.245 (5) (a) 1. A person is eligible for grant funds under this section if he or she owns a principal residence which is served by a category 1 or 2 failing private sewage system, if the private sewage system was installed before July 1, 1978, if the family income of the person does not exceed the income limitations under par. (c), if the amount of the grant determined under sub. (7) is at least $100, if the principal residence is not located in an area served by a sewer and if determination of failure is made prior to the rehabilitation or replacement of the failing private sewage system.

AB40-ASA1, s. 2641e Section 2641e. 145.245 (5) (c) 1. of the statutes is amended to read:

AB40-ASA1,1106,17 145.245 (5) (c) 1. In order to be eligible for grant funds under this section to rehabilitate or replace a private sewage system for a principal residence, the owner's annual family income of the person who owns the principal residence may not exceed $45,000 300 percent of the federal poverty line, as defined under 42 USC 9902 (2), for a family the size of the owner's family.

AB40-ASA1, s. 2641f Section 2641f. 145.245 (7) (bn) of the statutes is created to read:

AB40-ASA1,1106,22 145.245 (7) (bn) Except as provided in par. (e), the state grant share under this section for each participating governmental unit shall equal 75 percent of allowable costs for rehabilitating or replacing the private sewage systems that serve principal residences for which grant applications are received by the governmental unit.

AB40-ASA1, s. 2641g Section 2641g. 145.245 (7) (c) of the statutes is amended to read:

AB40-ASA1,1107,17 145.245 (7) (c) Except as provided in pars. (d) and par. (e), the state grant share under this section for each participating governmental unit is limited to $7,000 for each principal residence or small commercial establishment to be served by the private sewage system that is regulated by the participating governmental unit or to the amount determined by the department based upon private sewage system grant funding tables, whichever is less. The department shall prepare and publish these private sewage system grant funding tables for small commercial establishments which specify the maximum state grant share limitation for various components and costs involved in the rehabilitation or replacement of a private sewage system based upon minimum size and other requirements specified in the state plumbing code promulgated under s. 145.02. The maximum state grant share limitations for small commercial establishments shall be designed to pay approximately 60% of the average allowable cost of private sewage system rehabilitation or replacement based upon estimated or actual costs of that rehabilitation or replacement. The department shall revise the grant funding tables when it determines that 60% of current costs of private sewage system rehabilitation or replacement exceed the amounts in the grant funding tables by more than 10%, except that the department may not revise the grant funding tables more often than once every 2 years.

AB40-ASA1, s. 2641h Section 2641h. 145.245 (7) (d) of the statutes is repealed.

AB40-ASA1, s. 2641j Section 2641j. 145.245 (8) (title) of the statutes is amended to read:

AB40-ASA1,1107,20 145.245 (8) (title) Application; Governmental units.

AB40-ASA1, s. 2641k Section 2641k. 145.245 (9) (g) of the statutes is amended to read:

AB40-ASA1,1108,2 145.245 (9) (g) Establish a system which provides for the distribution of grant funds received among eligible applicants based on the amount requested in the application as approved by the department. If the amount received by a county is insufficient to fully fund all grants, the county shall prorate grant funds on the same basis as sub. (11m).

AB40-ASA1, s. 2641m Section 2641m. 145.245 (11) (c) of the statutes is amended to read:

AB40-ASA1,1108,10 145.245 (11) (c) Allocation. The department shall allocate available funds for grants to each participating governmental unit according to the total amount of the state grant share for all eligible applications received by that participating governmental unit. In making this allocation for each participating governmental unit, the department shall determine the amount of grant funding that will be available for principal residences and the amount that will be available for small commercial establishments.

AB40-ASA1, s. 2641n Section 2641n. 145.245 (11g) of the statutes is created to read:

AB40-ASA1,1108,16 145.245 (11g) Priority system; principal residences. The department shall promulgate rules to establish a priority system for grants under this section to owners of principal residences under which the highest priority is given to grants for the rehabilitation or replacement of failing private sewage systems for which written enforcement orders, as specified in sub. (1) (a) 2. or 3., have been issued.

AB40-ASA1, s. 2641p Section 2641p. 145.245 (11m) (title) of the statutes is amended to read:

AB40-ASA1,1108,18 145.245 (11m) (title) Prorating small commercial establishments.

AB40-ASA1, s. 2641r Section 2641r. 145.245 (11m) (e) of the statutes is created to read:

AB40-ASA1,1108,22 145.245 (11m) (e) This subsection does not apply to grants for the rehabilitation or replacement of failing private sewage systems that serve principal residences.

AB40-ASA1, s. 2641s Section 2641s. 145.245 (12) (title) of the statutes is amended to read:

AB40-ASA1,1108,25 145.245 (12) (title) Determination of eligibility; disbursement of grants; governmental units.

AB40-ASA1, s. 2641t Section 2641t. 145.245 (12m) (a) of the statutes is amended to read:

AB40-ASA1,1109,5 145.245 (12m) (a) A governmental unit to which the department allocates funds under sub. (11) for a fiscal year may apply to the department for a loan under this subsection if the department prorates funds under sub. (11m) funds are not sufficient to fully fund all applications for that fiscal year. A

AB40-ASA1,1109,12 (ar) For grants to rehabilitate or replace private sewage systems that serve small commercial establishments, a governmental unit may only use a loan under this subsection to increase the amounts of grants to persons eligible under sub. (5) above the amounts that would be provided without a loan under this subsection or to provide grants to persons eligible under sub. (5) who would otherwise not receive grants, because of the operation of sub. (11m) (c), but the total amount provided to a person under this section may not exceed the amount authorized under sub. (7) (c).

AB40-ASA1, s. 2641u Section 2641u. 145.245 (12m) (ag) of the statutes is created to read: