AB40-ASA1, s. 2624 4Section 2624. 132.16 (5) of the statutes is amended to read:
AB40-ASA1,1091,75 132.16 (5) Upon granting registration under this section, the secretary of state
6department shall issue his or her a certificate to the petitioners, setting forth the fact
7of the registration.
AB40-ASA1, s. 2625 8Section 2625. 132.16 (6) of the statutes is amended to read:
AB40-ASA1,1091,149 132.16 (6) The fees of the secretary of state department for registration or
10reregistration under this section, searches made by the secretary of state
11department, and certificates issued by the secretary of state department under this
12section, shall be the same as provided by law for similar services. The fees collected
13under this section shall be paid by the secretary of state department into the state
14treasury.
AB40-ASA1, s. 2626 15Section 2626. 137.01 (1) (a) of the statutes is amended to read:
AB40-ASA1,1091,1916 137.01 (1) (a) The governor shall appoint notaries public who shall be United
17States residents and at least 18 years of age. Applicants who are not attorneys shall
18file an application with the secretary of state department of financial institutions
19and pay a $20 fee.
AB40-ASA1, s. 2627 20Section 2627. 137.01 (1) (b) of the statutes is amended to read:
AB40-ASA1,1091,2421 137.01 (1) (b) The secretary of state financial institutions shall satisfy himself
22or herself that the applicant has the equivalent of an 8th grade education, is familiar
23with the duties and responsibilities of a notary public and, subject to ss. 111.321,
24111.322 and 111.335, does not have an arrest or conviction record.
AB40-ASA1, s. 2628 25Section 2628. 137.01 (1) (d) of the statutes is amended to read:
AB40-ASA1,1092,4
1137.01 (1) (d) Qualified applicants shall be notified by the secretary of state
2department of financial institutions to take and file the official oath and execute and
3file an official bond in the sum of $500, with a surety executed by a surety company
4and approved by the secretary of state financial institutions.
AB40-ASA1, s. 2629 5Section 2629. 137.01 (1) (e) of the statutes is amended to read:
AB40-ASA1,1092,86 137.01 (1) (e) The qualified applicant shall file his or her signature, post-office
7address and an impression of his or her official seal, or imprint of his or her official
8rubber stamp with the secretary of state department of financial institutions.
AB40-ASA1, s. 2630 9Section 2630. 137.01 (1) (g) of the statutes is amended to read:
AB40-ASA1,1092,1210 137.01 (1) (g) At least 30 days before the expiration of a commission the
11secretary of state department of financial institutions shall mail notice of the
12expiration date to the holder of a commission.
AB40-ASA1, s. 2631 13Section 2631. 137.01 (2) (a) of the statutes is amended to read:
AB40-ASA1,1092,2014 137.01 (2) (a) Except as provided in par. (am), any United States resident who
15is licensed to practice law in this state is entitled to a permanent commission as a
16notary public upon application to the secretary of state department of financial
17institutions
and payment of a $50 fee. The application shall include a certificate of
18good standing from the supreme court, the signature and post-office address of the
19applicant and an impression of the applicant's official seal, or imprint of the
20applicant's official rubber stamp.
AB40-ASA1, s. 2632 21Section 2632. 137.01 (2) (am) of the statutes is amended to read:
AB40-ASA1,1093,422 137.01 (2) (am) If a United States resident has his or her license to practice law
23in this state suspended or revoked, upon reinstatement of his or her license to
24practice law in this state, the person may be entitled to receive a certificate of
25appointment as a notary public for a term of 4 years. An eligible notary appointed

1under this paragraph is entitled to reappointment for 4-year increments. At least
230 days before the expiration of a commission under this paragraph the secretary of
3state
department of financial institutions shall mail notice of the expiration date to
4the holder of the commission.
AB40-ASA1, s. 2633 5Section 2633. 137.01 (2) (b) of the statutes is amended to read:
AB40-ASA1,1093,96 137.01 (2) (b) The secretary of state financial institutions shall issue a
7certificate of appointment as a notary public to persons who qualify under the
8requirements of this subsection. The certificate shall state that the notary
9commission is permanent or is for 4 years.
AB40-ASA1, s. 2634 10Section 2634. 137.01 (2) (c) of the statutes is amended to read:
AB40-ASA1,1093,1411 137.01 (2) (c) The supreme court shall file with the secretary of state
12department of financial institutions notice of the surrender, suspension or revocation
13of the license to practice law of any attorney who holds a permanent commission as
14a notary public. Such notice shall be deemed a revocation of said commission.
AB40-ASA1, s. 2635 15Section 2635. 137.01 (6) (a) of the statutes is amended to read:
AB40-ASA1,1093,1816 137.01 (6) (a) The secretary of state financial institutions may certify to the
17official qualifications of any notary public and to the genuineness of the notary
18public's signature and seal or rubber stamp.
AB40-ASA1, s. 2636 19Section 2636. 137.01 (6m) of the statutes is amended to read:
AB40-ASA1,1093,2320 137.01 (6m) Change of residence. A notary public does not vacate his or her
21office by reason of his or her change of residence within the United States. Written
22notice of any change of address shall be given to the secretary of state department
23of financial institutions
within 10 days of the change.
AB40-ASA1, s. 2637 24Section 2637. 137.01 (7) of the statutes is amended to read:
AB40-ASA1,1094,11
1137.01 (7) Official records to be filed. When any notary public ceases to hold
2office, the notary public, or in case of the notary public's death the notary public's
3personal representative, shall deposit the notary public's official records and papers
4in the office of the secretary of state with the department of financial institutions.
5If the notary or personal representative, after the records and papers come to his or
6her hands, neglects for 3 months to deposit them, he or she shall forfeit not less than
7$50 nor more than $500. If any person knowingly destroys, defaces, or conceals any
8records or papers of any notary public, the person shall forfeit not less than $50 nor
9more than $500, and shall be liable for all damages resulting to the party injured.
10The secretary of state department of financial institutions shall receive and safely
11keep all such papers and records.
AB40-ASA1, s. 2637b 12Section 2637b. 138.045 of the statutes is created to read:
AB40-ASA1,1094,18 13138.045 Method of calculating interest. Interest on any note, bond, or
14other instrument computed on the declining unpaid principal balance from time to
15time outstanding may be computed and charged on actual unpaid balances at 1/360
16of the annual rate for the actual number of days outstanding if the use of this
17calculation method is disclosed in the note, bond, or other instrument. This section
18does not apply to pawnbrokers' loans under s. 138.10.
AB40-ASA1, s. 2637d 19Section 2637d. 138.09 (1a) (a) of the statutes is amended to read:
AB40-ASA1,1094,2120 138.09 (1a) (a) Banks, savings banks, savings and loan associations, trust
21companies, credit unions, or any of their affiliates.
AB40-ASA1, s. 2637gc 22Section 2637gc. 138.14 (1) (bd) of the statutes is created to read:
AB40-ASA1,1094,2323 138.14 (1) (bd) "Consumer report" has the meaning given in 15 USC 1681a (d).
AB40-ASA1, s. 2637gd 24Section 2637gd. 138.14 (1) (be) of the statutes is created to read:
AB40-ASA1,1095,2
1138.14 (1) (be) "Consumer reporting agency" has the meaning given in 15 USC
21681a
(f).
AB40-ASA1, s. 2637gf 3Section 2637gf. 138.14 (1) (k) 1. of the statutes is amended to read:
AB40-ASA1,1095,104 138.14 (1) (k) 1. A transaction between an individual with an account at a
5financial establishment and another person, including a person who is not physically
6located in this state, in which the person agrees to accept from the individual one or
7more checks, to hold the check or checks for a period of time before negotiating or
8presenting the check or checks for payment, and to loan to the individual, for a term
9of 90 days or less,
before negotiating or presenting the check or checks for payment,
10an amount that is agreed to by the individual.
AB40-ASA1, s. 2637gg 11Section 2637gg. 138.14 (1) (k) 2. of the statutes is amended to read:
AB40-ASA1,1095,1812 138.14 (1) (k) 2. A transaction between an individual with an account at a
13financial establishment and another person, including a person who is not physically
14located in this state, in which the person agrees to accept the individual's
15authorization to initiate one or more electronic fund transfers from the account, to
16wait a period of time before initiating the electronic fund transfer or transfers, and
17to loan to the individual, for a term of 90 days or less, before initiating the electronic
18fund transfer or transfers, an amount that is agreed to by the individual.
AB40-ASA1, s. 2637gi 19Section 2637gi. 138.14 (3) of the statutes is amended to read:
AB40-ASA1,1095,2220 138.14 (3) Exemptions. This section does not apply to banks, savings banks,
21savings and loan associations, trust companies, credit unions, or any of their
22affiliates
.
AB40-ASA1, s. 2637gk 23Section 2637gk. 138.14 (7) (e) 6. of the statutes is amended to read:
AB40-ASA1,1095,2524 138.14 (7) (e) 6. The number of payday loans made during the preceding year
25that resulted in repayment under sub. (11g) (a).
AB40-ASA1, s. 2637gm
1Section 2637gm. 138.14 (9g) (a) 6. of the statutes is amended to read:
AB40-ASA1,1096,32 138.14 (9g) (a) 6. Disclose to the applicant the payment requirements that may
3apply under sub. (11g) (a) if the loan is not paid in full at the end of the loan term.
AB40-ASA1, s. 2637go 4Section 2637go. 138.14 (9m) of the statutes is created to read:
AB40-ASA1,1096,115 138.14 (9m) Income verification. Before entering into a payday loan with an
6applicant that has not previously been a customer of the licensee, the licensee may
7request the applicant's consumer report from a consumer reporting agency as part
8of the licensee's underwriting process and the licensee may rely on the consumer
9report as a permissible method of income verification in making the payday loan.
10The licensee may also rely on the same consumer report in underwriting and making
11subsequent payday loans to the same customer.
AB40-ASA1, s. 2637gq 12Section 2637gq. 138.14 (9r) (c) 4. of the statutes is amended to read:
AB40-ASA1,1096,1413 138.14 (9r) (c) 4. The percentage of customers originating payday loans that
14resulted in repayment under sub. (11g) (a).
AB40-ASA1, s. 2637gs 15Section 2637gs. 138.14 (10) (a) 2. of the statutes is amended to read:
AB40-ASA1,1097,216 138.14 (10) (a) 2. If a payday loan is not paid in full on or before the maturity
17date, a licensee may charge, after the maturity date, interest at a rate not exceeding
182.75 percent per month, except that if a licensee makes a subsequent payday loan to
19the customer under sub. (12) (a), and the customer does not pay the subsequent loan
20in full on or before the maturity date of the subsequent loan, the licensee may
charge,
21after the maturity date of the subsequent loan, interest at a rate not exceeding 2.75
22percent per month on the subsequent loan and the licensee may not charge any
23interest under this subdivision on the prior loan. Interest earned under this
24subdivision shall be calculated at the rate of one-thirtieth of the monthly rate

1charged for each calendar day that the balance of the loan is outstanding. Interest
2may not be assessed on any interest earned under this subdivision
.
AB40-ASA1, s. 2637gu 3Section 2637gu. 138.14 (10) (am) of the statutes is amended to read:
AB40-ASA1,1097,74 138.14 (10) (am) Penalties. Except as provided in par. (b) 2., no licensee may
5impose any penalty on a customer arising from the customer's prepayment of or
6default or late payment on a payday loan, including any payment under sub. (11g)
7(a).
AB40-ASA1, s. 2637hc 8Section 2637hc. 138.14 (11g) of the statutes is renumbered 138.14 (11g) (a)
9and amended to read:
AB40-ASA1,1097,1410 138.14 (11g) (a) If Except as provided in par. (b), if a customer fails to repay a
11payday loan in full at the end of the loan term, the licensee that made the loan shall
12offer the customer the opportunity to repay the outstanding balance of the loan in
134 equal installments with due dates coinciding with the customer's pay period
14schedule.
AB40-ASA1, s. 2637he 15Section 2637he. 138.14 (11g) (b) of the statutes is created to read:
AB40-ASA1,1097,1916 138.14 (11g) (b) If a licensee offers a customer the opportunity to make
17repayment under par. (a), then, during the 12-month period following the offer, no
18licensee, including the licensee making the offer, is required to offer the customer
19another opportunity to repay a payday loan under par. (a).
AB40-ASA1, s. 2637hg 20Section 2637hg. 138.14 (12) (b) of the statutes is amended to read:
AB40-ASA1,1098,221 138.14 (12) (b) No licensee may make a payday loan to a customer that results
22in the customer having an outstanding aggregate liability in principal, interest, and
23all other fees and charges, to all licensees who have made payday loans to the
24customer of more than $1,500 or 35 percent of the customer's gross monthly income,

1whichever is less. As provided in sub. (9m), a licensee may rely on a consumer report
2to verify a customer's income for purposes of this paragraph.
AB40-ASA1, s. 2637hi 3Section 2637hi. 138.14 (14) (d) 4. of the statutes is amended to read:
AB40-ASA1,1098,134 138.14 (14) (d) 4. Designate Automatically designate a payday loan as paid in
5the database 5 days after the maturity date of the loan unless a licensee reports to
6the database provider before that time that the loan remains open because of the
7customer's failure to make payment; that the loan is open because the customer's
8check or an electronic redeposit is in the process of clearing the banking system; that
9the loan remains open because the customer's check is being returned to the licensee
10for insufficient funds, a closed account, or a stop payment order; or that any other
11factors determined by the division are applicable. If a licensee makes such a report,
12the database provider shall designate
the payday loan as an open transaction until
13the database provider is notified that the transaction is closed.
AB40-ASA1, s. 2637hk 14Section 2637hk. 138.14 (14) (h) of the statutes is amended to read:
AB40-ASA1,1098,2315 138.14 (14) (h) The division shall, by order or rule, specify a database
16transaction fee of no more than $1 that the database provider shall charge to
17licensees to cover the costs of developing and implementing the database, and
18accessing the database to verify that a customer does not have any payday loans with
19the licensee or others that in combination with a new transaction will create a
20violation of this section. The database fee is payable directly to the division in a
21manner prescribed by the division and, if the department has contracted with a
223rd-party provider to operate the database, the division shall remit the fee to the
233rd-party provider as specified in the contract.
AB40-ASA1, s. 2637hm 24Section 2637hm. 138.14 (14) (j) of the statutes is created to read:
AB40-ASA1,1099,6
1138.14 (14) (j) If the database, as determined by the division, is not fully
2operational, or the licensee is unable to access the database and, as determined
3under rules promulgated by the division, the alternate process established under
4par. (d) 2. is also unavailable, a licensee may rely upon the written verification of the
5customer in a statement provided in substantially the following form in at least
612-point type:
AB40-ASA1,1099,9 7"I DO NOT HAVE ANY OUTSTANDING PAYDAY LOANS WITH THIS
8LICENSEE AND I DO NOT HAVE MORE PAYDAY LOANS WITH ANY OTHER
9LICENSED PAYDAY LOAN PROVIDER IN THIS STATE."
AB40-ASA1, s. 2637kd 10Section 2637kd. 138.16 (1) (a) of the statutes is created to read:
AB40-ASA1,1099,1211 138.16 (1) (a) "Division" means the division of banking attached to the
12department of financial institutions.
AB40-ASA1, s. 2637ke 13Section 2637ke. 138.16 (1) (bm) of the statutes is created to read:
AB40-ASA1,1099,1514 138.16 (1) (bm) "Licensed location" means the location specified in a license
15issued under s. 138.09 (1m) (a).
AB40-ASA1, s. 2637kf 16Section 2637kf. 138.16 (1) (c) of the statutes is amended to read:
AB40-ASA1,1099,2117 138.16 (1) (c) "Title loan" means a loan of $25,000 or less to a borrower, who
18obtains or seeks to obtain the loan for personal, family, or household purposes, that
19is, or is to be, secured by an interest, other than a purchase money security interest,
20in the borrower's motor vehicle, and that has an original term of not more than 6
21months
.
AB40-ASA1, s. 2637kg 22Section 2637kg. 138.16 (1m) of the statutes is created to read:
AB40-ASA1,1100,223 138.16 (1m) Certificate of authorization. (a) Before a licensed lender may
24make title loans under this section, the licensed lender shall first obtain from the

1division, for each licensed location at which any title loan is to be made, a certificate
2authorizing the licensed lender to make title loans from that location.
AB40-ASA1,1100,83 (b) At the time of making an application for a certificate under par. (a), an
4applicant shall pay to the division an initial annual fee of $5,000. The valid period
5for the certificate shall be a calendar year and each certificate shall expire on the last
6day of the calendar year. To renew a certificate, the certificate holder shall, on or
7before December 10 of the year in which the certificate is to expire, pay to the division
8an annual renewal fee of $5,000 for the following calendar year.
AB40-ASA1, s. 2637kh 9Section 2637kh. 138.16 (2) of the statutes is renumbered 138.16 (2) (a) and
10amended to read:
AB40-ASA1,1100,1611 138.16 (2) (a) No licensed lender may make a title loan to a borrower that
12results in the borrower having liability for the loan, in principal, of more than 50
13percent of the retail value of the motor vehicle used as security for the loan. The
14division shall promulgate rules for determining the retail value of a motor vehicle for
15purposes of this paragraph, including rules specifying nationally recognized pricing
16guides that may be used for determining retail value at the time of loan origination
.
AB40-ASA1, s. 2637ki 17Section 2637ki. 138.16 (2) (b) of the statutes is created to read:
AB40-ASA1,1100,1918 138.16 (2) (b) 1. This section imposes no limit on the interest that a licensed
19lender may charge before the maturity date of a title loan.
AB40-ASA1,1100,2520 2. If a title loan is not paid in full on or before the maturity date, a licensed
21lender may charge, after the maturity date, interest at a rate not exceeding 2.75
22percent per month. Interest earned under this subdivision shall be calculated at the
23rate of one-thirtieth of the monthly rate charged for each calendar day that the
24balance of the loan is outstanding. Interest may not be assessed on any interest
25earned under this subdivision.
AB40-ASA1, s. 2637kj
1Section 2637kj. 138.16 (3) of the statutes is created to read:
AB40-ASA1,1101,72 138.16 (3) Rescission. A borrower may rescind a title loan, before the close of
3business on the next day of business after the loan is made, or, if the place of business
4where the loan is made is open 24 hours, before 5 p.m. on the next day of business
5after the loan is made, by returning to the licensed lender the proceeds of the loan.
6The licensed lender may not charge the borrower any fee for rescinding the title loan
7as provided in this subsection.
AB40-ASA1, s. 2637kk 8Section 2637kk. 138.16 (4) of the statutes is created to read:
AB40-ASA1,1101,119 138.16 (4) Other requirements. (a) A licensed lender may not make a title loan
10to a borrower that is secured by an interest in a motor vehicle if the motor vehicle is
11subject to another security interest.
AB40-ASA1,1101,1412 (b) A licensed lender may not require a borrower to provide the licensed lender
13with a key or copy of a key to a motor vehicle used as security for a title loan as a
14condition for making the title loan to the borrower.
AB40-ASA1,1101,2015 (c) A licensed lender or person acting on behalf of a licensed lender may not take
16possession of a motor vehicle used as security for a title loan to a borrower without
17sending notice to the borrower at least 20 days prior to taking possession. The notice
18shall state the intent to take possession and describe the basis for the right to take
19possession. This paragraph does not apply to possession that is obtained by a
20borrower's voluntary surrender of a motor vehicle.
AB40-ASA1,1101,2421 (d) A licensed lender or other person may charge a borrower a reasonable
22storage fee for a motor vehicle of the borrower of which the licensed lender or person
23acting on behalf of the licensed lender has obtained possession, including possession
24that is obtained by voluntary surrender.
AB40-ASA1,1102,3
1(e) A licensed lender shall return to a borrower the amount of any proceeds from
2the disposition of a motor vehicle used as security for a title loan to the borrower that
3exceed the borrower's liability to the licensed lender for the loan.
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