2013 Wisconsin Act 136

136,13 Section 13. 227.265 of the statutes is created to read:

227.265 Repeal or modification of rules. If a bill to repeal or modify a rule is enacted, the procedures under ss. 227.114 to 227.21 and 227.26 do not apply. Instead, the legislative reference bureau shall publish the repeal or modification in the Wisconsin administrative code and register as required under s. 35.93, and the repeal or modification shall take effect as provided in s. 227.22.

136,14 Section 14. 227.27 (2) of the statutes is amended to read:

227.27 (2) The code shall be prima facie evidence in all courts and proceedings as provided by s. 889.01, but this does not preclude reference to or, in case of a discrepancy, control over a rule filed with the legislative reference bureau or the secretary of state under s. 227.20 or modified under s. 227.265, and the certified copy of a rule shall also and in the same degree be prima facie evidence in all courts and proceedings.

136,15 Section 15. DFI-Bkg 10.03 of the administrative code is amended to read:

DFI-Bkg 10.03 Notice of appeal. Any interested person aggrieved by any act, order, or determination of the administrator of the division of banking under chs. 220, 221, and 223, Stats., may file with the administrator of the division of banking within 10 days after the act, order, or determination to be reviewed an original and 8 copies of a Notice of Appeal in the manner prescribed by s. DFI-Bkg 10.05 in the following form:

To the Wisconsin Banking Review Board:

The undersigned hereby appeals from the order of the administrator of the division of banking dated _____________, 20__, whereby it was ordered that (here set forth the substance of the order).

The nature of petitioner's interest is: (Here set forth the nature of petitioner's interest).

The grounds of appeal are the following: (Here set forth the exceptions or objections relied on, and if no answer has been filed, then also an answer to the findings of fact in the order, in the manner prescribed by s. DFI-Bkg 11.11, rules of Procedure for proceedings and hearings had before the administrator of the division of banking).

Dated __________, 20__.

136,16 Section 16. DFI-Bkg 14.07 (2) (a) (intro.) of the administrative code is amended to read:

DFI-Bkg 14.07 (2) (a) (intro.) The liability of a customer of a bank for the unauthorized use of a plastic card or other means providing the customer access device to a customer bank communications terminal may not exceed the lesser of the following shall be determined as follows:

136,17 Section 17. DFI-Bkg 14.07 (2) (a) 1. and 2. of the administrative code are repealed.

136,18 Section 18. DFI-Bkg 14.07 (2) (a) 3., 4., 5., 6., 7. and 8. of the administrative code are created to read:

DFI-Bkg 14.07 (2) (a) 3. If the customer notifies the bank within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the bank.

4. If the customer fails to notify the bank within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $500 or the sum of all of the following:

a. $50 or the amount of unauthorized transfers that occur within the 2 business days, whichever is less.

b. The amount of unauthorized transfers that occur after the close of 2 business days and before notice to the bank, if the bank establishes that these transfers would not have occurred had the customer notified the bank within that 2-day period.

5. A customer must report an unauthorized transfer from the unauthorized use of a plastic card or other access device to a customer bank communications terminal that appears on a periodic statement within 60 days of the bank's transmittal of the statement to avoid liability for subsequent transfers. If the customer fails to do so, the customer's liability may not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the bank and that the bank establishes would not have occurred had the customer notified the bank within the 60-day period. When a plastic card or other access device is involved in the unauthorized transfer, the customer may be liable for other amounts set forth in subd. 3. or 4., as applicable.

6. If the customer's delay in notifying the bank as provided in subd. 5. was due to extenuating circumstances, the bank shall extend the time specified in subd. 5. to a reasonable period.

7. a. Notice to a bank is given when a customer takes steps reasonably necessary to provide the bank with the pertinent information, whether or not a particular employee or agent of the bank actually receives the information.

b. A customer may notify the bank in person, by telephone, or in writing.

c. Written notice is considered given at the time the customer mails the notice or delivers it for transmission to the bank by any other usual means. Notice may be considered constructively given when the bank becomes aware of circumstances leading to the reasonable belief that an unauthorized transfer to or from the customer's account has been or may be made.

8. If an agreement between the customer and the bank imposes less liability than is provided by this section, the customer's liability may not exceed the amount imposed under the agreement.

136,19 Section 19. DFI-Bkg 14.07 (2) (b) of the administrative code is amended to read:

DFI-Bkg 14.07 (2) (b) A customer furnishing another person with a plastic card or other means of access device to the customer's account through a customer bank communications terminal shall be deemed to authorize all transactions that may be accomplished by that means, until the customer has given actual notice to the bank that further transactions are unauthorized.

136,20 Section 20. DFI-Bkg 14.08 (2) (intro.) of the administrative code is amended to read:

DFI-Bkg 14.08 (2) Transaction documentation. (intro.) Every Except as provided in sub. (4), every transfer of funds through a customer bank communications terminal made by a customer of a bank shall be evidenced by a written document made available to the customer at the time of the transaction. The document shall indicate with reasonable specificity the identity of any third party to whom funds are electronically transferred, the identity of the customer's account, the amount of funds transferred, the type of transaction, and the date of the transaction. A customer may be required to re-enter an access device, such as a card, at a terminal in order to receive transaction documentation if all of the following conditions are met:

136,21 Section 21. DFI-Bkg 14.08 (4) of the administrative code is created to read:

DFI-Bkg 14.08 (4) Exception for written document in small-value transfers. A bank is not subject to the requirement to make available a written document under sub. (2) if the amount of the transfer is $15 or less.

136,22 Section 22. DFI-Bkg 14.09 of the administrative code is repealed.

136,23 Section 23. DFI-Bkg 40.04 (2) of the administrative code is amended to read:

DFI-Bkg 40.04 (2) Before using any trade name or d/b/a designation, the licensee shall obtain written approval from the division for the use of such trade name or d/b/a designation.

136,24 Section 24. DFI-Bkg 41.05 (intro.) of the administrative code is amended to read:

DFI-Bkg 41.05 License renewals. (intro.) For all licenses expiring on or after December 31, 2010 under subch. III of ch. 224, Stats., all of the following apply:

136,25 Section 25. DFI-Bkg 46.01 (3) of the administrative code is renumbered DFI-Bkg 46.01 (3) (am) and DFI-Bkg 46.01 (3) (am) (intro.), as renumbered, is amended to read:

DFI-Bkg 46.01 (3) (am) (intro.) "Points Except as provided in par. (bm), "points and fees" means any of the following:

136,26 Section 26. DFI-Bkg 46.01 (3) (bm) of the administrative code is created to read:

DFI-Bkg 46.01 (3) (bm) "Points and fees" does not include reasonable fees paid to affiliates or nonaffiliates of the lender for bona fide services listed in 12 CFR 226.4 (c) (7).

136,27 Section 27. DFI-Bkg 73.02 (2) (e) of the administrative code is amended to read:

DFI-Bkg 73.02 (2) (e) A statement to the effect that the debtor will be permitted to examine his or her accounts in the office of the licensee during regular office hours.

136,28 Section 28. DFI-Bkg 73.03 (1) of the administrative code is amended to read:

DFI-Bkg 73.03 (1) (a) Shared office space. The office of an adjustment service company shall not be shared or have a common waiting room with a practicing attorney, collection agency, justice of the peace, loan or finance company. Before any other business is conducted in the same office with the licensee, prior approval must be granted by the office of administrator of the division of banking. The office shall not be located in a private residence unless the adjustment service office is used solely for business purposes, has an outside entrance and can be isolated from the remainder of the residence. If other approved business is conducted in the same office, the accounting records of such other business shall be kept separate from the account records of the adjustment service company.

(b) Office hours. Every licensee shall maintain regular office hours on designated business days from Monday through Friday and must be open for business at least 4 hours each designated business day. Whenever an office is not open for business at least 6 hours a day, or if the licensee maintains irregular office hours, a written notice must be filed with the office of the administrator of the division of banking setting forth the schedule of minimum office hours.

136,29 Section 29. DFI-Bkg 73.03 (2) of the administrative code is amended to read:

DFI-Bkg 73.03 (2) Forms to be approved. All agreements, contracts, form letters or any other form whatsoever to be used by licensee in conducting its business shall be submitted in duplicate to the administrator of the division of banking for approval, and no such form or agreement shall be used until approved. A folder containing the file copy of all approved forms including the approved schedule of irregular office hours, if any, must be maintained in the licensed office in the order in which the forms were approved.

136,30 Section 30. DFI-Bkg 73.03 (7) of the administrative code is repealed.

136,31 Section 31. DFI-Bkg 73.05 (4) and (5) of the administrative code are amended to read:

DFI-Bkg 73.05 (4) Licensee's trust and operating bank accounts for creditor disbursements should be reconciled monthly with the canceled check together with voided or unused checks filed in numerical order after the monthly statement has been reconciled. The numerically numbered check stubs corresponding with all trust account and operating account checks shall be maintained in the office of licensee. All accounts shall be made available for reviewing in the office of administrator of by the division of banking.

(5) It is not intended that the information required to be furnished in sub. (1) be retained in the same chronological order. The records of licensees may vary in the event that data processing procedures are adopted which will prevent the licensee from maintaining certain records required above. The office of administrator of the division of banking may approve of the records to be maintained as long as adequate information is available for examination purposes.

136,32 Section 32. DFI-Bkg 74.07 (1) (b) and (c) of the administrative code are amended to read:

DFI-Bkg 74.07 (1) (b) A ledger record consisting of asset and liability accounts including a continuous record of all physical assets such as furniture, fixtures and office equipment.

(c) A ledger record of income and expenses.

136,33 Section 33. DFI-Bkg 74.08 of the administrative code is repealed.

136,34 Section 34. DFI-Bkg 74.11 (2) (d) of the administrative code is amended to read:

DFI-Bkg 74.11 (2) (d) A fee not to exceed the lesser of $25 or 3% of the payment amount, not including the fee, may be added to the account of the debtor when the debtor makes a payment using a credit card or debit card.

136,35 Section 35. DFI-Bkg 74.13 (1) of the administrative code is amended to read:

DFI-Bkg 74.13 (1) Unless the initial communication is written and contains the following notice or the debtor has paid the debt, a licensee shall send the debtor the following notice within 5 days after the initial communication with a debtor: "This collection agency is licensed by the Division of Banking, P.O. Box 7876, Madison, Wisconsin 53707 in the Wisconsin Department of Financial Institutions, www.wdfi.org." This notice shall be in at least 8 point type and shall be typed or printed on either a collection notice or on the validation of any debt directed to the debtor by the licensee pursuant to Section 809 of the Federal Fair Debt Collection Practices Act.

136,36 Section 36. DFI-Bkg 76.03 of the administrative code is amended to read:

DFI-Bkg 76.03 Delinquency and deferral charges. (1) In consumer credit transactions a retail seller may contract for and receive delinquency charges only in accordance with s. 422.203, Stats., and regulations issued by the administrator of the division of banking thereunder.

(3) A retail seller may contract for and assess deferral charges only in accordance with s. 422.204, Stats., and regulations issued by the administrator of the division of banking thereunder.

136,37 Section 37. DFI-Bkg 76.06 of the administrative code is amended to read:

DFI-Bkg 76.06 Refinancing. Upon refinancing a retail installment contract prior to its maturity the customer shall receive as of the date of the refinancing a rebate of the unearned finance charge pursuant to the provisions of s. DFI-Bkg 76.04, except that for the purposes of computing this amount no minimum finance charge shall be allowed in consumer credit transactions. The rate of finance charge upon refinancing shall not exceed the maximum rate applicable to the vehicle under s. 218.0142, Stats., at the time it was originally financed if the creditor is a licensed motor vehicle dealer. Otherwise, the maximum rate shall not exceed the rate at which the creditor could loan the refinanced balance to the customer.

136,38 Section 38. DFI-Bkg 76.07 of the administrative code is amended to read:

DFI-Bkg 76.07 Consolidation. Upon consolidation of the unpaid balance of a retail installment contract for the purchase of a motor vehicle with the unpaid balance of any other transaction for the purchase of a motor vehicle, the customer shall receive a rebate of the unearned finance charge on each retail installment contract pursuant to the provisions of s. DFI-Bkg 76.04, except that for the purposes of computing that amount no minimum finance charge shall be allowed in consumer credit transactions. The rate of finance charge upon consolidation shall not exceed the maximum rate under s. 218.0142, Stats., applicable to the vehicle most recently purchased if the creditor is a licensed motor vehicle dealer. Otherwise the maximum rate shall not exceed the rate at which the creditor could loan the consolidated balance to the customer.

136,39 Section 39. DFI-Bkg 76.09 (2) (intro.) and (b) (intro.) of the administrative code are amended to read:

DFI-Bkg 76.09 (2) (intro.) Each motor vehicle sales finance company shall in connection with each transaction evidenced by a retail installment contract retained by such sales finance company for a period of more than 30 days, maintain a written ledger card or record which shall include the following:

(b) (intro.) Paid accounts. In addition to the information required above the written ledger record or ledger card shall include:

136,40 Section 40. DFI-Bkg 76.11 (1) of the administrative code is amended to read:

DFI-Bkg 76.11 (1) "Business license" means a license issued by the administrator of the division of banking under ch. 218, Stats., to a motor vehicle dealer.

136,41 Section 41. DFI-Bkg 76.11 (2) of the administrative code is repealed.

136,42 Section 42. DFI-Bkg 76.12 (1) (a) (intro.) and (b) (intro.) of the administrative code are amended to read:

DFI-Bkg 76.12 (1) (a) General licensing period and expiration dates. (intro.) The license period for business licenses is 2 years. The administrator of the division of banking shall issue business licenses that start and expire on the following dates:

(b) Initial licenses. (intro.) The administrator of the division of banking may issue initial licenses that go into effect on dates other than the first day of an even-numbered month. The licenses may expire before the end of 2 years, and their expiration dates may be assigned as follows:

136,43 Section 43. DFI-Bkg 76.12 (2) of the administrative code is amended to read:

DFI-Bkg 76.12 (2) Licenses run concurrently. A motor vehicle or mobile home license to operate as a sales finance company will be issued to run concurrently with the department of transportation dealer licenses.

136,44 Section 44. DFI-Bkg 76.13 of the administrative code is amended to read:

DFI-Bkg 76.13 License fees. (1) The administrator of the division of banking shall collect fees based on the statutory formulas described in s. 218.0114 (15), Stats., and elsewhere, which is the number of years in a licensing period multiplied by the current annual fee of $50. If the dealer originates and carries or retains time sales contracts for more than 30 days in a total amount exceeding $100,000, a bill will be issued for additional business license fees due based upon the schedule of fees in s. 218.0114 (16), Stats.

(2) When the administrator of the division of banking issues an initial license for a period less than 2 years, it may reduce the business license fees by the same proportion as the reduction in the business license period.

136,45 Section 45. DFI-CU 63.07 (2) (a) (intro.) of the administrative code is amended to read:

DFI-CU 63.07 (2) (a) (intro.) The liability of a customer of a credit union for the unauthorized use of a plastic card or other means providing the customer access device to a remote terminal may not exceed the lesser of the following shall be determined as follows:

136,46 Section 46. DFI-CU 63.07 (2) (a) 1. and 2. of the administrative code are repealed.

136,47 Section 47. DFI-CU 63.07 (2) (a) 3., 4., 5., 6., 7. and 8. of the administrative code are created to read:

DFI-CU 63.07 (2) (a) 3. If the customer notifies the credit union within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the credit union.

4. If the customer fails to notify the credit union within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $500 or the sum of all of the following:

a. $50 or the amount of unauthorized transfers that occur within the 2 business days, whichever is less.

b. The amount of unauthorized transfers that occur after the close of 2 business days and before notice to the credit union, if the credit union establishes that these transfers would not have occurred had the customer notified the credit union within that 2-day period.

5. A customer must report an unauthorized transfer from the unauthorized use of a plastic card or other access device to a remote terminal that appears on a periodic statement within 60 days of the credit union's transmittal of the statement to avoid liability for subsequent transfers. If the customer fails to do so, the customer's liability may not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the credit union and that the credit union establishes would not have occurred had the customer notified the credit union within the 60-day period. When a plastic card or other access device is involved in the unauthorized transfer, the customer may be liable for other amounts set forth in subd. 3. or 4., as applicable.