SB530,11,2219 4. The applicant is delinquent in making court-ordered payments of child or
20family support, maintenance, birth expenses, medical expenses, or other expenses
21related to the support of a child or former spouse, as provided in a memorandum of
22understanding entered into under s. 49.857.
SB530,12,223 (c) A license shall remain in force and effect until suspended or revoked in
24accordance with this section or surrendered by the licensee, and a licensee shall, on

1or before each December 10, pay to the division the annual license fee for the next
2succeeding calendar year.
SB530,12,43 (d) A license is not assignable and permits operation under it only at or from
4the place of business specified in the license.
SB530,12,75 (e) A licensee shall conspicuously post a license at the place of business where
6the licensee makes consumer small loans, or if conducting business through the
7Internet, on the licensee's Web site so that the license is easily viewed by a consumer.
SB530,12,14 8(6) Relocation; other business. (a) Whenever a licensee changes the address
9of its place of business to another location within the same city, village, or town, the
10licensee shall give written notice thereof, in a form and manner prescribed by the
11division, to the division within 10 business days of the relocation and the division
12shall replace the original license with an amended license showing the new address.
13No change in the place of business of a licensee to a different city, village, or town is
14permitted under the same license.
SB530,12,1715 (b) 1. Except as provided in subd. 2., a licensee may conduct, and permit others
16to conduct, at the place of business specified in its license, one or more of the following
17businesses not subject to this section:
SB530,12,1818 a. A currency exchange under s. 218.05.
SB530,12,1919 b. A seller of checks business under ch. 217.
SB530,12,2020 c. A loan business under s. 138.09.
SB530,12,2121 d. A sales finance company under ss. 218.0101 to 218.0163.
SB530,12,2422 2. A licensee may not sell merchandise or conduct other business at the place
23of business specified in the license unless written authorization is granted to the
24licensee by the division.
SB530,13,5
1(7) Records; reports. (a) Except as provided in par. (b), a licensee shall keep
2such books and records in the licensee's place of business that, in the opinion of the
3division, will enable the division to determine compliance with this section. A
4licensee shall preserve the records of final entry used in such business for a period
5of at least 2 years after the making of any loan recorded therein.
SB530,13,96 (b) A licensee may keep the books and records specified in par. (a) at a single
7location inside or outside of this state if the books and records are kept at a place of
8business licensed under this section. A licensee shall organize the books and records
9by the place of business where the records originated.
SB530,13,1210 (c) A licensee shall keep the books and records affecting loans made pursuant
11to this section separate and distinct from the records of any other business of the
12licensee.
SB530,13,1713 (d) A licensee shall make an annual report to the division for each calendar year
14on or before March 15 of the following year. The report shall include business
15transacted by the licensee under this section and shall give all reasonable and
16relevant information that the division may require. The reports shall be made in the
17form and manner prescribed by the division.
SB530,13,19 18(8) Powers of the division. (a) The division may issue any general or special
19order in execution of or supplementary to this section.
SB530,13,2220 (b) The division may promulgate such rules as it considers necessary for the
21administration of this section, including rules establishing database transaction fees
22and other fees considered reasonable and necessary by the division.
SB530,13,2423 (c) The division shall have the same power to conduct hearings, take testimony,
24and secure evidence as is provided in ss. 217.17 and 217.18.
SB530,14,8
1(d) The division for the purpose of discovering violations of this section may
2investigate the business of a licensee transacted under this section, and shall
3investigate convictions reported to the division by any district attorney for violation
4by a licensee of this section. The place of business, books of account, papers, records,
5safes, and vaults of a licensee shall be open to inspection and examination by the
6division for the purpose of such investigation and the division may examine under
7oath all persons whose testimony the division may require relative to such
8investigation.
SB530,14,139 (e) The cost of any investigation, examination, or hearing, including witness
10fees or any other expenses, conducted by the division under this section involving a
11licensee shall be paid by the licensee within 30 days after demand therefore by the
12division, and the state may maintain an action for the recovery of such costs and
13expenses.
SB530,14,1514 (f) Actual costs incurred by the division to examine books and records
15maintained outside of this state shall be paid by the licensee.
SB530,14,17 16(9) Revocation and suspension of licenses. (a) The division may suspend or
17revoke any license issued under this section if the division finds any of the following:
SB530,14,1918 1. That the licensee has violated any provision of this section, any rule
19promulgated thereunder, or any lawful order of the division made thereunder.
SB530,14,2020 2. That the licensee has violated any of the provisions of chs. 421 to 427.
SB530,14,2321 3. That any fact or condition exists which, if it had existed at the time of the
22original application for such license, would have warranted the division in refusing
23to issue such license.
SB530,14,2524 4. That the licensee made a material misstatement in an application for a
25license or in information furnished to the division.
SB530,15,2
15. That the licensee has failed to pay the annual license fee or to maintain in
2effect the bond required under sub. (4) (c).
SB530,15,143 (b) The division shall restrict or suspend a license issued under this section if
4the division finds that the licensee is an individual who fails to comply, after
5appropriate notice, with a subpoena or warrant issued by the department of
6workforce development or a county child support agency under s. 59.53 (5) and
7related to paternity or child support proceedings or who is delinquent in making
8court-ordered payments of child or family support, maintenance, birth expenses,
9medical expenses, or other expenses related to the support of a child or former
10spouse, as provided in a memorandum of understanding entered into under s.
1149.857. A licensee whose license is restricted or suspended under this paragraph is
12entitled to a notice and hearing only as provided in a memorandum of understanding
13entered into under s. 49.857 and is not entitled to any other notice or hearing under
14this section.
SB530,15,2015 (c) The division shall revoke a license issued under this section if the
16department of revenue certifies under s. 73.0301 that the licensee is liable for
17delinquent taxes. A licensee whose license is revoked under this paragraph for
18delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and a hearing
19under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this
20section.
SB530,16,221 (d) Except as provided in pars. (b) and (c), no license shall be revoked or
22suspended except after a hearing under this section. A complaint stating the
23grounds for suspension or revocation together with a notice of hearing shall be
24delivered to the licensee at least 5 days in advance of the hearing. In the event the
25licensee cannot be found, complaint and notice of hearing may be left at the place of

1business stated in the license,which shall be considered the equivalent of delivering
2the notice of hearing and complaint to the licensee.
SB530,16,5 3(10) Interest and fees. (a) Interest. 1. This section imposes no limit on the
4interest that a licensee may charge before the maturity date of a consumer small
5loan.
SB530,16,166 2. If a consumer small loan is not paid in full on or before the maturity date,
7a licensee may charge, after the maturity date, interest at a rate not exceeding 2.75
8percent per month, except that if a licensee makes a subsequent consumer small loan
9to the borrower under sub. (12) (a), and the borrower does not pay the subsequent
10loan in full on or before the maturity date of the subsequent loan, the licensee may
11charge, after the maturity date of the subsequent loan, interest at a rate not
12exceeding 2.75 percent per month on the subsequent loan and the licensee may not
13charge any interest under this subdivision on the prior loan. Interest earned under
14this subdivision shall be calculated at the rate of one-thirtieth of the monthly rate
15charged for each calendar day that the balance of the loan is outstanding. Interest
16cannot be assessed on any interest earned under this subdivision.
SB530,16,1817 (b) Fees. 1. A licensee may not assess a borrower any fee or charge for database
18access or usage.
SB530,16,2219 2. A licensee may charge a fee not to exceed $15 for each check presented for
20payment to the licensee which is returned unsatisfied because the drawer does not
21have an account with the drawee, does not have sufficient funds in his or her account,
22or does not have sufficient credit with the drawee.
SB530,16,24 23(11) Prepayment. (a) A customer may pay a consumer small loan in whole or
24in part prior to the maturity date of the loan.
SB530,17,5
1(b) Upon prepayment in full, a refund of the unearned portion of any interest
2assessed by the licensee must be allowed. The amount of such refund shall not be
3less than the difference between the interest charged and the interest earned at the
4agreed rate computed upon the unpaid principal balance of the loan from time to time
5outstanding prior to repayment in full.
SB530,17,14 6(12) Prohibitions. (a) A borrower may repay a consumer small loan with the
7proceeds of a subsequent consumer small loan made by the same or another licensee
8or an affiliate of the same or another licensee, but if the borrower does so, the
9borrower may not repay the subsequent consumer small loan with the proceeds of
10another consumer small loan made by the same or another licensee or an affiliate of
11the same or another licensee. A repayment of a subsequent consumer small loan and
12the origination of a new consumer small loan from the same or another licensee or
13an affiliate of the same or another licensee within a 24-hour period shall be
14considered proof of violation of the prohibition under this paragraph.
SB530,17,1715 (b) No licensee may make a consumer small loan to a borrower that results in
16the borrower having an outstanding aggregate liability of more than $900 to all
17licensees who have made consumer small loans to the borrower.
SB530,17,2218 (c) No licensee may make a consumer small loan to a borrower if the licensee
19determines, knows, or should have known, that the social security number the
20borrower provided to the licensee is invalid, was issued within a period of time
21specified by the division preceding the date of the inquiry, or is issued to a deceased
22individual.
SB530,17,2423 (d) No licensee may take a note, promise to pay, or any other instrument, in
24which blanks are left to be filled in after the consumer small loan has been made.
SB530,18,6
1(e) No licensee may advertise, print, display, publish, distribute, or broadcast,
2or cause to be printed, displayed, published, distributed, or broadcast, in any
3manner, any statement with regard to the rates, terms, or conditions of a consumer
4small loan that is false or calculated to deceive. With respect to matters specifically
5governed by s. 423.301, compliance with such section satisfies the requirements of
6this paragraph.
SB530,18,127 (f) If a check held by a licensee as a result of a consumer small loan is returned
8to the licensee from a payor financial institution due to insufficient funds, a closed
9account, or a stop payment order, the licensee may bring an action to collect the
10amount of the check, but may not threaten or pursue criminal action against a debtor
11as a result of the debtor's check being returned unpaid or the debtor's consumer small
12loan not being paid.
SB530,18,15 13(13) Other provisions. (a) All consumer small loans shall be governed by chs.
14421 to 427, but to the extent that chs. 421 to 427 are inconsistent with this section,
15this section shall govern.
SB530,18,2216 (b) A licensee shall deliver to the borrower, at the time a consumer small loan
17is made, a statement in the English and Spanish languages including all the
18disclosures required by the federal Consumer Credit Protection Act. The statement
19shall disclose that the borrower may prepay the borrower's loan in whole or in part
20and that if the loan is prepaid in full the borrower will receive a refund of interest
21as provided by this section. The statement shall also clearly and conspicuously
22indicate the percentage per year of interest charged for the consumer small loan.
SB530,18,2523 (c) A licensee shall give to the borrower a plain and complete receipt for all cash
24payments made on account of any consumer small loan at the time such payments
25are made.
SB530,19,9
1(d) No consumer small loan, wherever made, for which a greater rate or amount
2of interest than is allowed under sub. (10) (a) 2. has been contracted for or received,
3may be enforced in this state, and every person in any way participating therein in
4this state shall be subject to this section. If a licensee makes an excessive charge of
5such interest as the result of an unintentional mistake, but upon demand makes
6correction of such mistake, the loan shall be enforceable and treated as if no violation
7occurred at the agreed rate. Nothing in this paragraph shall limit any greater rights
8or remedies afforded in chs. 421 to 427 to a customer in a consumer credit
9transaction.
SB530,19,13 10(14) Database. (a) The division or a database provider shall develop,
11implement, and maintain a single statewide database that has real-time access
12through an Internet connection, is accessible at all times to licensees and the
13division, and otherwise meets the requirements of this section.
SB530,19,1714 (b) The division may operate the database or may contract with a single
153rd-party provider to operate the database. If the division contracts with a
163rd-party provider for the operation of the database, the division shall do all the
17following:
SB530,19,1918 1. Ensure that the 3rd-party provider operates the database according to the
19provisions of this section.
SB530,19,2120 2. In selecting a 3rd-party provider, consider the cost of providing the service
21and the 3rd-party provider's ability to meet all the requirements of this section.
SB530,19,2322 3. In selecting a 3rd-party provider, give strong consideration to all of the
23following:
SB530,20,3
1a. The 3rd-party provider's ability to prevent fraud, abuse, and other unlawful
2activity associated with consumer small loan transactions, and to provide additional
3tools for the administration and enforcement of this section.
SB530,20,54 b. Whether the provider is currently providing a similar service for another
5state.
SB530,20,66 (c) The database shall do all of the following:
SB530,20,117 1. Allow a licensee accessing the database to check a customer's social security
8number, or other unique identification number specified by the division, and report
9to the division or licensee if that social security number is invalid, was issued within
10a period of time specified by the division preceding the date of the inquiry, or is issued
11to a deceased individual.
SB530,20,1312 2. Allow a licensee accessing the database to determine if making a new
13consumer small loan would cause a violation of this section.
SB530,20,1614 3. Provide information necessary to aid a licensee in complying with any
15requirements imposed under federal law by the office of foreign assets control of U.S.
16department of the treasury.
SB530,20,1817 4. Provide any other information that the division determines is necessary and
18requires by rule or contract with the database provider.
SB530,20,1919 (d) The database provider shall do all the following:
SB530,20,2220 1. Use the data collected under this section only as prescribed in this section
21and, in the case of a 3rd-party provider, as prescribed in the contract with the
22division, and for no other purpose.
SB530,20,2523 2. Establish and maintain an alternate process for responding to transaction
24authorization requests necessary because of technical difficulties occurring with the
25database that prevent a licensee from accessing the database through the Internet.
SB530,21,3
13. Upon receiving notification that a consumer small loan is paid, designate the
2transaction as closed in the database no later than 11:59 p.m. on the day that such
3notification is received.
SB530,21,134 4. Automatically designate a consumer small loan as paid in the database 5
5days after the maturity date of the loan unless a licensee reports to the database
6provider before that time that the loan remains open because of the customer's
7failure to make payment; that the loan is open because the customer's check or an
8electronic redeposit is in the process of clearing the banking system; that the loan
9remains open because the customer's check is being returned to the licensee for
10insufficient funds, a closed account, or a stop payment order; or that any other factors
11determined by the division are applicable. If a licensee makes such a report, the
12database provider shall designate the consumer small loan as an open transaction
13until the database provider is notified that the transaction is closed.
SB530,21,1814 5. If a licensee stops making consumer small loans, designate all open
15transactions with that licensee as closed in the database 60 days after the date on
16which the licensee stops making consumer small loans, unless the licensee reports
17to the database provider before the expiration of the 60-day period which of its
18transactions remain open and the specific reason each transaction remains open.
SB530,21,2319 6. In response to an inquiry from a licensee, state only that a person is eligible
20or ineligible for a new consumer small loan and describe the reason for that
21determination. Only the person seeking the loan may make a direct inquiry to the
22database provider to request a more detailed explanation of an ineligibility
23determination.
SB530,22,224 (e) If at any time the division determines that a licensee that has stopped
25making consumer small loans is not updating the database in accordance with a plan

1approved under par. (o), the division shall immediately close or instruct the database
2provider to immediately close all remaining open transactions of that licensee.
SB530,22,43 (f) The division may, without cost, access the database for the purposes of
4enforcing this section.
SB530,22,105 (g) The division shall, by order or rule, stipulate the period for which data is
6to be retained in the database only as required to ensure licensee compliance with
7this act or for enforcement or compliance purposes. The division may require that
8any identifying customer information be deleted from the database when data is
9archived. The division may maintain access to archived data for future legislative
10or policy review.
SB530,22,1911 (h) The division shall, by order or rule, specify a database transaction fee that
12the database provider shall charge to licensees to cover the costs of developing and
13implementing the database, and accessing the database to verify that a customer
14does not have any consumer small loans with the licensee or others that in
15combination with a new transaction will create a violation of this section. The
16database fee is payable directly to the division in a manner prescribed by the division
17and, if the department has contracted with a 3rd-party provider to operate the
18database, the division shall remit the fee to the 3rd-party provider as specified in the
19contract.
SB530,22,2120 (i) A licensee shall verify a customer's eligibility to enter into a consumer small
21loan by doing one of the following, as applicable:
SB530,23,222 1. If the database, as determined by the division, is not implemented or is not
23fully operational, verifying that the customer does not have an open consumer small
24loan with the licensee that in conjunction with a new consumer small loan would
25cause a violation of this section. The licensee shall maintain a database of all of the

1licensee's consumer small loans at all of its places of business and search that
2database to meet its obligation under this subdivision.
SB530,23,73 2. If the database, as determined by the division, is implemented and fully
4operational, accessing the database and verifying that the customer does not have
5an outstanding consumer small loan with the licensee and does not have open
6consumer small loans with other licensees that in conjunction with a new consumer
7small loan would cause a violation of this section.
SB530,23,128 (j) If the database, as determined by the division, is not fully operational, or the
9licensee is unable to access the database and, as determined under rules
10promulgated by the division, the alternate process established under par. (d) 2. is
11also unavailable, a licensee may rely upon the written verification of the borrower
12in a statement provided in substantially the following form in at least 12-point type:
SB530,23,16 13"I DO NOT HAVE ANY OUTSTANDING CONSUMER SMALL LOANS WITH
14THIS LICENSEE AND I DO NOT HAVE MORE CONSUMER SMALL LOANS
15WITH ANY OTHER LICENSED CONSUMER SMALL LOAN PROVIDER IN THIS
16STATE."
SB530,23,1917 (k) If, as determined by the division, a licensee is unable to access the database
18due to technical difficulties occurring with the database, the licensee shall utilize the
19alternate process established under par. (d) 2.
SB530,23,2220 (L) A licensee may rely on the information contained in the database as
21accurate and is not subject to any administrative forfeiture as a result of relying on
22inaccurate information contained in the database.
SB530,24,323 (m) Before entering into a consumer small loan, a licensee shall submit to the
24database provider the customer's name; social security number or other unique
25identifier prescribed by the division; address; driver license number or other method

1of state identification; the amount of the transaction; the customer's check number;
2the date of the transaction; the maturity date of the loan; and any other information
3reasonably required by the division, in a format approved by the division.
SB530,24,114 (n) When a consumer small loan is closed, the licensee shall designate the
5transaction as closed and notify the database provider no later than 11:59 p.m. on the
6day on which the transaction is closed. The division shall assess an administrative
7forfeiture of $100 for each day that the licensee fails to notify the database provider
8that the consumer small loan has been closed. It is a defense to the assessment of
9an administrative forfeiture that notifying the database provider was not possible
10due to temporary technical problems with the database or to circumstances beyond
11the licensee's control.
SB530,24,1712 (o) If the licensee stops making consumer small loans, the licensee shall provide
13to the division a plan acceptable to the division that outlines how the licensee will
14continue to update the database after it stops making consumer small loans. The
15division shall approve or disapprove the plan and within 5 business days notify the
16licensee of the decision. If a plan is disapproved, the licensee may submit a new or
17modified plan for the division to approve or disapprove.
SB530,24,2018 (p) Any information in the database regarding any person's transactional
19history is confidential and is not subject to public copying or inspection under s. 19.35
20(1).
SB530,24,23 21(15) Penalties. (a) Any person, partnership, or corporation, or the officers or
22employees thereof, who violates this section is guilty of a misdemeanor and shall be
23fined not more than $500 or imprisoned for not more than 6 months or both.
SB530,25,424 (b) If a person who is not licensed under this section makes a consumer small
25loan to a borrower, the loan is void, the borrower is not obligated to pay any amounts

1owing on the loan, and the borrower may recover from the person all amounts the
2borrower has paid to the person. An action to recover such amounts shall be
3commenced within one year after the date of the last scheduled payment on the loan
4or shall be barred.
SB530,25,8 5(16) Private cause of action. If a person makes a consumer small loan to a
6borrower in violation of this section, the borrower may bring an action against the
7person for damages of $250 or the amount of the consumer small loan, whichever is
8greater, plus costs, and, notwithstanding s. 814.04 (1), reasonable attorney fees.
SB530, s. 13 9Section 13. 220.02 (2) (b) of the statutes is amended to read:
SB530,25,1210 220.02 (2) (b) The lending of money under s. 138.09 or 138.14, or those relating
11to finance companies, motor vehicle dealers, adjustment service companies,
12community currency exchanges and collection agencies under ch. 218.
SB530, s. 14 13Section 14. 220.04 (10) of the statutes is amended to read:
SB530,26,214 220.04 (10) If it appears to the division that a person has engaged or is about
15to engage in an act or practice constituting a violation of the laws of this state relating
16to banks and banking, including this chapter, chs. 217, 218 and 221 to 224 and ss.
17138.09 and, 138.12, and 138.14, or a rule promulgated or order issued under those
18laws, the division may bring an action in the name of the state in the circuit court
19of the appropriate county to enjoin the acts or practices and to enforce compliance
20with the laws, rules or orders, or the division may refer the matter to the district
21attorney of the appropriate county or, if the alleged violation may be enforced by the
22attorney general under sub. (12) or s. 220.12, 221.1005 or 224.06 (7) or is statewide
23in nature, to the attorney general. Upon a proper showing, the court may grant a
24permanent or temporary injunction or restraining order, appoint a receiver for the

1defendant or the defendant's assets or order rescission of any acts determined to be
2unlawful. The court may not require the division to post a bond.
SB530, s. 15 3Section 15. 220.285 (1) of the statutes, as affected by 2009 Wisconsin Act 2,
4is amended to read:
SB530,26,155 220.285 (1) Any state bank, trust company bank, licensee under ss. 138.09,
6138.12, 138.14, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, or 224.725 or
7ch. 217 may cause any or all records kept by such bank, licensee, or registered person
8to be recorded, copied or reproduced by any photostatic, photographic or miniature
9photographic process or by optical imaging if the process employed correctly,
10accurately and permanently copies, reproduces or forms a medium for copying,
11reproducing or recording the original record on a film or other durable material. A
12bank, licensee, or registered person may thereafter dispose of the original record
13after first obtaining the written consent of the division. This section, excepting that
14part of it which requires written consent of the division, is applicable to national
15banking associations insofar as it does not contravene federal law.
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