12. The substitute amendment prohibits earnings garnishment actions to
recover amounts owed on a payday loan.
13. The substitute amendment requires the division to make annual reports
to the legislature regarding payday loans made in the preceding year.
Finally, the substitute amendment eliminates a requirement under current law
that certain annual reports made by licensed lenders to the division must be verified
by oath or affirmation. Instead, the substitute amendment requires the reports to
be made in the form and manner prescribed by the division.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB530-SSA1, s. 1 1Section 1. 20.144 (1) (g) of the statutes is amended to read:
SB530-SSA1,5,102 20.144 (1) (g) General program operations. The amounts in the schedule for
3the general program operations of the department of financial institutions. Except
4as provided in pars. (a), (h), (i), (j), and (u), all moneys received by the department,
5other than by the office of credit unions and the division of banking, and 88% of all
6moneys received by the department's division of banking shall be credited to this
7appropriation, but any balance at the close of a fiscal year under this appropriation
8shall lapse to the general fund. Annually, $200,000 of the amounts received under
9this appropriation account shall be transferred to the appropriation account under
10s. 20.575 (1) (g).
SB530-SSA1, s. 2 11Section 2. 20.144 (1) (j) of the statutes is created to read:
SB530-SSA1,6,3
120.144 (1) (j) Payday loan database and financial literacy. All moneys received
2under s. 138.14 (14) (h), for developing, implementing, maintaining, or contracting
3for operating, the database under s. 138.14 (14), and for promoting financial literacy.
SB530-SSA1, s. 3 4Section 3. 49.857 (1) (d) 12. of the statutes, as affected by 2009 Wisconsin Act
52
, is amended to read:
SB530-SSA1,6,86 49.857 (1) (d) 12. A license or certificate of registration issued under ss. 138.09,
7138.12, 138.14, 217.06, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72,
8224.725, 224.93 or subch. IV of ch. 551.
SB530-SSA1, s. 4 9Section 4. 59.69 (4h) of the statutes is created to read:
SB530-SSA1,6,1010 59.69 (4h) Payday lenders. (a) Definitions. In this subsection:
SB530-SSA1,6,1111 1. "Licensee" has the meaning given in s. 138.14 (1) (i).
SB530-SSA1,6,1312 2. "Payday lender" means a business, owned by a licensee, that makes payday
13loans.
SB530-SSA1,6,1414 3. "Payday loan" has the meaning given in s. 138.14 (1) (k).
SB530-SSA1,6,1815 (b) Limits on locations of payday lenders. Except as provided in par. (c), no
16payday lender may operate in a county unless it receives a permit to do so from the
17county zoning agency, and the county zoning agency may not issue a permit to a
18payday lender if any of the following applies:
SB530-SSA1,6,2019 1. The payday lender would be located within 1,500 feet of another payday
20lender.
SB530-SSA1,6,2221 2. The payday lender would be located within 150 feet of a single-family or
222-family residential zoning district.
SB530-SSA1,6,2423 (c) Exceptions. 1. Paragraph (b) only applies in the unincorporated parts of the
24county which have not adopted a zoning ordinance as authorized under s. 60.62 (1).
SB530-SSA1,7,2
12. A county may regulate payday lenders by enacting a zoning ordinance that
2contains provisions that are more strict than those specified in par. (b).
SB530-SSA1,7,63 3. If a county has enacted an ordinance regulating payday lenders that is in
4effect on the effective date of this subdivision .... [LRB inserts date], the ordinance
5may continue to apply and the county may continue to enforce the ordinance, but only
6if the ordinance is at least as restrictive as the provisions of par. (b).
SB530-SSA1,7,107 4. Notwithstanding the provisions of subd. 3., if a payday lender that is doing
8business on the effective date of this subdivision .... [LRB inserts date], from a
9location that does not comply with the provisions of par. (b), the payday lender may
10continue to operate from that location notwithstanding the provisions of par. (b).
SB530-SSA1, s. 5 11Section 5. 62.23 (7) (hi) of the statutes is created to read:
SB530-SSA1,7,1212 62.23 (7) (hi) Payday lenders. 1. In this paragraph:
SB530-SSA1,7,1313 a. "Licensee" has the meaning given in s. 138.14 (1) (i).
SB530-SSA1,7,1514 b. "Payday lender" means a business, owned by a licensee, that makes payday
15loans.
SB530-SSA1,7,1616 c. "Payday loan" has the meaning given in s. 138.14 (1) (k).
SB530-SSA1,7,1917 2. Except as provided in subds. 3., 4., and 5., no payday lender may operate in
18a city unless it receives a permit to do so from the city council, and the city council
19may not issue a permit to a payday lender if any of the following applies:
SB530-SSA1,7,2120 a. The payday lender would be located within 1,500 feet of another payday
21lender.
SB530-SSA1,7,2322 b. The payday lender would be located within 150 feet of a single-family or
232-family residential zoning district.
SB530-SSA1,7,2524 3. A city may regulate payday lenders by enacting a zoning ordinance that
25contains provisions that are more strict than those specified in subd. 2.
SB530-SSA1,8,4
14. If a city has enacted an ordinance regulating payday lenders that is in effect
2on the effective date of this subdivision .... [LRB inserts date], the ordinance may
3continue to apply and the city may continue to enforce the ordinance, but only if the
4ordinance is at least as restrictive as the provisions of subd. 2.
SB530-SSA1,8,85 5. Notwithstanding the provisions of subd. 4., if a payday lender that is doing
6business on the effective date of this subdivision .... [LRB inserts date], from a
7location that does not comply with the provisions of subd. 2., the payday lender may
8continue to operate from that location notwithstanding the provisions of subd. 2.
SB530-SSA1, s. 6 9Section 6. 73.0301 (1) (d) 6. of the statutes, as affected by 2009 Wisconsin Act
102
, is amended to read:
SB530-SSA1,8,1411 73.0301 (1) (d) 6. A license or certificate of registration issued by the
12department of financial institutions, or a division of it, under ss. 138.09, 138.12,
13138.14, 217.06, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, 224.725,
14224.93 or under subch. IV of ch. 551.
SB530-SSA1, s. 7 15Section 7. 138.04 of the statutes is amended to read:
SB530-SSA1,8,21 16138.04 Legal rate. The rate of interest upon the loan or forbearance of any
17money, goods or things in action shall be $5 upon the $100 for one year and according
18to that rate for a greater or less sum or for a longer or a shorter time; but parties may
19contract for the payment and receipt of a rate of interest not exceeding the rate
20allowed in ss. 138.041 to 138.056, 138.09 to 138.12 138.14, 218.0101 to 218.0163, or
21422.201, in which case such rate shall be clearly expressed in writing.
SB530-SSA1, s. 8 22Section 8. 138.09 (1a) of the statutes is created to read:
SB530-SSA1,8,2323 138.09 (1a) This section does not apply to any of the following:
SB530-SSA1,8,2524 (a) Banks, savings banks, savings and loan associations, trust companies,
25credit unions, or any of their affiliates.
SB530-SSA1,8,26
1(b) Payday loans made under s. 138.14.
SB530-SSA1, s. 9 2Section 9. 138.09 (1m) (a) of the statutes is amended to read:
SB530-SSA1,9,133 138.09 (1m) (a) Before any person may do business under this section or, charge
4the interest authorized by sub. (7) and before any creditor other than a bank, savings
5bank, savings and loan association or credit union may
, or assess a finance charge
6on a consumer loan in excess of 18% per year, that person shall first obtain a license
7from the division. Applications for a license shall be in writing and upon forms
8provided for this purpose by the division. An applicant at the time of making an
9application shall pay to the division a nonrefundable $300 fee for investigating the
10application and a $500 annual license fee for the period terminating on the last day
11of the current calendar year. If the cost of the investigation exceeds $300, the
12applicant shall upon demand of the division pay to the division the amount by which
13the cost of the investigation exceeds the nonrefundable fee.
SB530-SSA1, s. 10 14Section 10. 138.09 (3) (e) 1. g. of the statutes is created to read:
SB530-SSA1,9,1515 138.09 (3) (e) 1. g. A payday loan licensee under s. 138.14.
SB530-SSA1, s. 11 16Section 11. 138.09 (3) (f) of the statutes is amended to read:
SB530-SSA1,9,2617 138.09 (3) (f) Every licensee shall make an annual report to the division for
18each calendar year on or before March 15 of the following year. The report shall cover
19include business transacted by the licensee under the provisions of this section and
20shall give all reasonable and relevant information that the division may require. The
21reports shall be made upon forms furnished in the form and manner prescribed by
22the division and shall be signed and verified by the oath or affirmation of the licensee
23if an individual, one of the partners if a partnership, a member or manager if a
24limited liability company or an officer of the corporation or association if a
25corporation or association
. Any licensee operating under this section shall keep the

1records affecting loans made pursuant to this section separate and distinct from the
2records of any other business of the licensee.
SB530-SSA1, s. 12 3Section 12. 138.10 (2m) of the statutes is amended to read:
SB530-SSA1,10,64 138.10 (2m) Pawnbroking by licensed lenders. The division of banking may
5promulgate rules regulating the conduct of pawnbroking by persons licensed under
6s. 138.09 or 138.14.
SB530-SSA1, s. 13 7Section 13. 138.10 (15) of the statutes is amended to read:
SB530-SSA1,10,98 138.10 (15) Exception. This section does not apply to any person that is
9licensed under s. 138.09 or 138.14.
SB530-SSA1, s. 14 10Section 14. 138.14 of the statutes is created to read:
SB530-SSA1,10,11 11138.14 Payday loans. (1) Definitions. In this section:
SB530-SSA1,10,1412 (a) "Affiliate" means, with respect to a person, another person who owns or
13controls, is owned or controlled by, or is under common ownership or control with,
14such person. In this paragraph "control" means any of the following:
SB530-SSA1,10,1715 1. For a corporation, direct or indirect ownership of, or the right to control, 10
16percent or more of the voting shares of the corporation, or the ability of a person to
17elect a majority of the directors or otherwise effect a change in policy.
SB530-SSA1,10,1918 2. For any entity other than a corporation, the ability to change the active or
19passive principals of the organization.
SB530-SSA1,10,2020 (b) "Check" has the meaning given in s. 403.104 (6).
SB530-SSA1,10,2221 (bm) "Customer" means an individual who enters into a payday loan with a
22licensee.
SB530-SSA1,10,2323 (c) "Database" means the statewide database described in sub. (14).
SB530-SSA1,11,3
1(d) "Database provider" means a 3rd-party provider with whom the
2department contracts to operate the database or, if the division elects to operate the
3database, the division.
SB530-SSA1,11,44 (e) "Department" means the department of financial institutions.
SB530-SSA1,11,55 (f) "Division" means the division of banking.
SB530-SSA1,11,86 (g) "Financial establishment" means any organization that is authorized to do
7business under state or federal law and that holds a demand deposit, savings deposit,
8or other asset account belonging to an individual.
SB530-SSA1,11,99 (h) "General order" means an order that is not a special order.
SB530-SSA1,11,1110 (i) "Licensee" means a person holding a license issued by the division under sub.
11(5).
SB530-SSA1,11,1312 (j) "Maturity date" means the date specified when originating a payday loan
13on which the loan is required to be paid in full.
SB530-SSA1,11,1414 (k) "Payday loan" means any of the following:
SB530-SSA1,11,2115 1. A transaction between an individual with an account at a financial
16establishment and another person, including a person who is not physically located
17in this state, in which the person agrees to accept from the individual one or more
18checks, to hold the check or checks for a period of time before negotiating or
19presenting the check or checks for payment, and to loan to the individual, for a term
20of 90 days or less, before negotiating or presenting the check or checks for payment,
21an amount that is agreed to by the individual.
SB530-SSA1,12,322 2. A transaction between an individual with an account at a financial
23establishment and another person, including a person who is not physically located
24in this state, in which the person agrees to accept the individual's authorization to
25initiate one or more electronic fund transfers from the account, to wait a period of

1time before initiating the electronic fund transfer or transfers, and to loan to the
2individual, for a term of 90 days or less, before initiating the electronic fund transfer
3or transfers, an amount that is agreed to by the individual.
SB530-SSA1,12,44 (L) "Special order" means an order against a person.
SB530-SSA1,12,11 5(2) License required. A person may not originate or service a payday loan
6involving a Wisconsin resident without first having obtained from the division a
7license under sub. (5) for each place of business at which the person originates or
8services payday loans involving Wisconsin residents. Such a license is required for,
9and this section applies to, all payday loans made to a Wisconsin resident, regardless
10of whether the loan is made by face-to-face contact, mail, telephone, Internet, or any
11other means.
SB530-SSA1,12,13 12(3) Exemptions. This section does not apply to banks, savings banks, savings
13and loan associations, trust companies, credit unions, or any of their affiliates.
SB530-SSA1,12,16 14(4) Applications; fees; bond. (a) 1. Application for licenses under sub. (5) shall
15be made to the division in writing in the form and manner prescribed by the division
16and shall include all of the following:
SB530-SSA1,12,1817 a. Except as provided in subd. 3., if the applicant is an individual, the
18applicant's social security number.
SB530-SSA1,12,2019 b. If the applicant is not an individual, the applicant's federal employer
20identification number.
SB530-SSA1,12,2321 c. A statement signed by or on behalf of the applicant that acknowledges that
22the applicant is subject to the debt collection requirements under ch. 427 with respect
23to payday loans.
SB530-SSA1,12,2524 2. The division may not disclose any information received under subd. 1. a. or
25b. to any person except as follows:
SB530-SSA1,13,3
1a. The division may disclose information under subd. 1. a. or b. to the
2department of revenue for the sole purpose of requesting certifications under s.
373.0301.
SB530-SSA1,13,64 b. The division may disclose information under subd. 1. a. to the department
5of workforce development in accordance with a memorandum of understanding
6under s. 49.857.
SB530-SSA1,13,127 3. If an applicant who is an individual does not have a social security number,
8the applicant, as a condition of applying for a license, shall submit a statement made
9or subscribed under oath or affirmation to the division that the applicant does not
10have a social security number. The form of the statement shall be prescribed by the
11department of workforce development. Any license issued in reliance upon a false
12statement submitted by an applicant is invalid.
SB530-SSA1,13,1713 (b) At the time of making application, an applicant for a license shall pay to the
14division a nonrefundable $300 fee for investigating the application and a $500
15annual license fee. If the cost of the investigation exceeds $300, the applicant shall
16upon demand of the division pay to the division the amount by which the cost of the
17investigation exceeds the nonrefundable fee.
SB530-SSA1,13,2118 (c) The division shall require any applicant or licensee to file and maintain in
19force a bond in a sum not to exceed $5,000 for each place of business at which the
20applicant or licensee makes payday loans to a Wisconsin resident. The bond shall
21be in a form prescribed by and acceptable to the division.
SB530-SSA1,14,5 22(5) Licenses. (a) Upon the filing of an application under sub. (4) and the
23payment of the required fees, the division shall investigate the relevant facts. Except
24as provided in par. (b), if the division finds that the character and general fitness and
25the financial responsibility of the applicant, and the members thereof if the applicant

1is a partnership, limited liability company, or association, and the officers and
2directors thereof if the applicant is a corporation, warrant the belief that the business
3will be operated in compliance with this section, the division shall issue a license to
4the applicant. If the division does not make such finding, the division shall deny the
5application.
SB530-SSA1,14,76 (b) The division may not issue a license to an applicant if any of the following
7applies:
SB530-SSA1,14,88 1. The applicant fails to provide any information required under sub. (4) (a).
SB530-SSA1,14,109 2. The department of revenue certifies under s. 73.0301 that the applicant is
10liable for delinquent taxes.
SB530-SSA1,14,1411 3. The applicant fails to comply, after appropriate notice, with a subpoena or
12warrant issued by the department of workforce development or a county child
13support agency under s. 59.53 (5) and related to paternity or child support
14proceedings.
SB530-SSA1,14,1815 4. The applicant is delinquent in making court-ordered payments of child or
16family support, maintenance, birth expenses, medical expenses, or other expenses
17related to the support of a child or former spouse, as provided in a memorandum of
18understanding entered into under s. 49.857.
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