AB617: Bill Text

AB617,23,17 138.12 (3) (d) 2. c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35.

AB617,37 Section 37. 138.12 (3) (f), (g) and (h) of the statutes are created to read:

AB617,23,21 138.12 (3) (f) The division shall utilize the nationwide multistate licensing system and registry, and the provisions of s. 224.35 shall apply, with respect to applicants and licensees under this section.

AB617,23,24 (g) An applicant or licensee under this section shall register with, and maintain a valid unique identifier issued by, the nationwide multistate licensing system and registry.

AB617,24,3 (h) Each licensee shall keep current and accurate all material information on file with the division and the nationwide multistate licensing system and registry as provided in s. 224.35 (6).

AB617,38 Section 38. 138.12 (4) (am) 1. of the statutes is amended to read:

AB617,24,7 138.12 (4) (am) 1. An applicant shall pay to the division a nonrefundable $300 license investigation fee and a $500 annual license fee for the period ending on the next April 30 December 31.

AB617,39 Section 39. 138.12 (5) (a) 2. of the statutes is repealed and recreated to read:

AB617,24,11 138.12 (5) (a) 2. The licensee made a material misstatement, or knowingly omitted a material fact, in an application for a license or in information furnished to the division or the nationwide multistate licensing system and registry.

AB617,40 Section 40. 138.12 (5) (b) of the statutes is amended to read:

AB617,24,25 138.12 (5) (b) Before the division revokes, suspends or refuses to renew the license of any premium finance company on any ground other than failure to timely renew or reinstate the license as provided in s. 224.35 (7), the division shall give the company an opportunity to be fully heard and to introduce evidence in the company's behalf. In lieu of revoking or suspending the license for any of the causes enumerated in this subsection, after hearing, the division may subject the premium finance company to a penalty of not more than $200 for each offense when in the division's judgment the division finds that the public interest would not be harmed by the continued operation of such company. The amount of any penalty under this paragraph shall be paid by the company to the division for the use of the state. At any hearing under this subsection, the division may administer oaths to witnesses. Anyone testifying falsely, after having been administered the oath, shall be subject to the penalty of perjury.

AB617,41 Section 41. 138.12 (5r) of the statutes is created to read:

AB617,25,7 138.12 (5r) Reporting violations. The division may report any enforcement action, any violation of this section or of an administrative rule or order, or other relevant information to the nationwide multistate licensing system and registry. Except as provided in s. 224.35 (4) (b) and (c), these reports to the nationwide multistate licensing system and registry shall be confidential and are not subject to public copying or inspection under s. 19.35 (1).

AB617,42 Section 42. 138.12 (14) of the statutes is repealed.

AB617,43 Section 43. 138.14 (1) (br), (jm) and (m) of the statutes are created to read:

AB617,25,12 138.14 (1) (br) “Customer identification number” means a unique number assigned to a customer in a manner specified by the division, or by the database provider acting at the direction of the division.

AB617,25,14 (jm) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b).

AB617,25,15 (m) “Unique identifier” has the meaning given in s. 224.35 (1g) (e).

AB617,44 Section 44 . 138.14 (4) (a) 1. (intro.) of the statutes is amended to read:

AB617,25,19 138.14 (4) (a) 1. (intro.) Application Subject to subd. 1g., application for licenses under sub. (5) shall be made to the division in writing in the form and manner prescribed by the division and shall include all of the following:

AB617,45 Section 45 . 138.14 (4) (a) 1g., 1m. and 1r. of the statutes are created to read:

AB617,25,23 138.14 (4) (a) 1g. The division shall utilize the nationwide multistate licensing system and registry, and the provisions of s. 224.35 shall apply, with respect to applicants and licensees under this section.

AB617,26,3 1m. An applicant or licensee under this section shall register with, and maintain a valid unique identifier issued by, the nationwide multistate licensing system and registry.

AB617,26,6 1r. Each licensee shall keep current and accurate all material information on file with the division and the nationwide multistate licensing system and registry as provided in s. 224.35 (6).

AB617,46 Section 46 . 138.14 (4) (a) 2. c. of the statutes is created to read:

AB617,26,9 138.14 (4) (a) 2. c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35.

AB617,47 Section 47. 138.14 (5) (c) of the statutes is repealed and recreated to read:

AB617,26,16 138.14 (5) (c) A license may be renewed or reinstated as provided in s. 224.35 (7). A license that is not renewed or reinstated by the end of the reinstatement period provided in s. 224.35 (7) shall be deemed to have expired on December 31 of the year immediately preceding the reinstatement period, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year.

AB617,48 Section 48. 138.14 (6) (a) of the statutes is amended to read:

AB617,27,2 138.14 (6) (a) Whenever a licensee changes the address of its place of business to another location within the same city, village, or town, the licensee shall give written notice thereof, in a form and manner prescribed by the division, to the division within 10 business days of the relocation and the division shall replace the original license with an amended license showing the new address . If so directed by the division, the licensee shall provide any notice required under this subsection to the nationwide multistate licensing system and registry as provided in s. 224.35. No change in the place of business of a licensee to a different city, village, or town is permitted under the same license.

AB617,49 Section 49 . 138.14 (6) (b) 1. b. of the statutes is amended to read:

AB617,27,4 138.14 (6) (b) 1. b. A seller of checks money transmitter business under ch. 217.

AB617,50 Section 50. 138.14 (7) (d) of the statutes is amended to read:

AB617,27,12 138.14 (7) (d) A licensee shall make an annual report to the division for each calendar year on or before March 15 of the following year. The report shall include business transacted by the licensee under this section and shall give all reasonable and relevant information that the division may require, including the information required for the division's reports under par. (e). The reports shall be made in the form and manner prescribed by the division and submit financial statements as provided in s. 224.35 (8).

AB617,51 Section 51 . 138.14 (8) (c) of the statutes is amended to read:

AB617,27,16 138.14 (8) (c) The division shall have the same power to conduct hearings, take testimony, and secure evidence as is provided in ss. 217.17 and 217.18 powers granted under s. 217.11.

AB617,52 Section 52 . 138.14 (9) (a) 4. of the statutes is amended to read:

AB617,27,20 138.14 (9) (a) 4. That the licensee made a material misstatement, or knowingly omitted a material fact, in an application for a license or in information furnished to the division or the nationwide multistate licensing system and registry.

AB617,53 Section 53. 138.14 (14) (c) 1. of the statutes is amended to read:

AB617,27,25 138.14 (14) (c) 1. Allow a licensee accessing the database to check a customer's unique identification number that is assigned to the customer in a manner specified by the division customer identification number. A customer's unique customer identification number may not be based on the customer's social security number.

AB617,54 Section 54. 138.14 (14) (m) of the statutes is amended to read:

AB617,28,8 138.14 (14) (m) Before entering into a payday loan, a licensee shall submit to the database provider the customer's name; unique customer identification number that is assigned in a manner specified by the division; address; driver license number or other method of state identification; the amount of the transaction; the customer's check number, if applicable; the date of the transaction; the maturity date of the loan; and any other information reasonably required by the division, in a format approved by the division.

AB617,55 Section 55 . 138.14 (15) (title) of the statutes is amended to read:

AB617,28,10 138.14 (15) (title) Penalties ; reporting violations.

AB617,56 Section 56 . 138.14 (15) (c) of the statutes is created to read:

AB617,28,17 138.14 (15) (c) The division may report any enforcement action, any violation of this section or of an administrative rule or order, or other relevant information to the nationwide multistate licensing system and registry. Except as provided in s. 224.35 (4) (b) and (c), these reports to the nationwide multistate licensing system and registry shall be confidential and are not subject to public copying or inspection under s. 19.35 (1).

AB617,57 Section 57 . 186.113 (22) (title) of the statutes is amended to read:

AB617,28,20 186.113 (22) (title) Community currency exchange and seller of checks money transmitter.

AB617,58 Section 58 . 214.04 (20) of the statutes is amended to read:

AB617,29,6 214.04 (20) Upon receiving approval from the division, to act as an authorized agent for its customers in the business and functions under ch. 217. A savings bank that applies to function as a seller of checks money transmitter shall meet the application requirements under ch. 217. The division may not charge a license or investigation fee for an application under this subsection. The seller of checks money transmitter function of a savings bank shall be under the jurisdiction and supervision of the division. The division shall enforce ch. 217 as it applies to savings banks. The division shall determine what records shall be maintained and shall require the segregation of funds that are necessary for a savings bank to operate as a seller of checks money transmitter under this subsection and ch. 217.

AB617,59 Section 59 . 215.13 (41) (title) of the statutes is amended to read:

AB617,29,8 215.13 (41) (title) Seller of checks Money transmitter.

AB617,60 Section 60 . Chapter 217 of the statutes is repealed and recreated to read:

AB617,29,10 CHAPTER 217

AB617,29,11 MONEY TRANSMITTERS

AB617,29,13 217.01 Short title. This chapter may be cited as the “Model Money Transmission Modernization Law."

AB617,29,14 217.02 Definitions. In this chapter:

AB617,29,17 (1) “Acting in concert" means persons knowingly acting together with a common goal of jointly acquiring control of a licensee, whether or not pursuant to an express agreement.

AB617,29,19 (2) “Authorized delegate” means a person a licensee designates to engage in money transmission on behalf of the licensee.

AB617,29,25 (3) “Average daily money transmission liability” means the amount of a licensee's outstanding money transmission obligations at the end of each day in a given period of time, added together, and divided by the total number of days in the given period of time. For purposes of calculating average daily money transmission liability under this chapter for any licensee required to do so, the given period of time shall be the quarters ending March 31, June 30, September 30, and December 31.

AB617,30,2 (4) “Bank Secrecy Act” means the Bank Secrecy Act, 31 USC 5311 et seq., and its implementing regulations.

AB617,30,6 (5) “Closed loop stored value” means stored value that is redeemable by the issuer only for goods or services provided by the issuer or its affiliate or franchisees of the issuer or its affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value.

AB617,30,7 (6) (a) “Control” means any of the following:

AB617,30,9 1. The power to vote, directly or indirectly, at least 25 percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee.

AB617,30,12 2. The power to elect or appoint a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a licensee or person in control of a licensee.

AB617,30,14 3. The power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee.

AB617,30,20 (b) A person is presumed to exercise a controlling influence within the meaning of par. (a) 3. if the person holds the power to vote, directly or indirectly, at least 10 percent of the outstanding voting shares or voting interests of a licensee or person in control of a licensee. A person presumed to exercise a controlling influence under this paragraph may rebut the presumption of control by showing that the person is a passive investor.

AB617,30,25 (c) For purposes of determining the percentage of a person controlled by any other person, the person's interest shall be aggregated with the interest of any other immediate family member, including the person's spouse, parents, children, siblings, mothers-in-law, fathers-in-law, sons-in-law, daughters-in-law, brothers-in-law, sisters-in-law, and any other person who shares the person's home.

AB617,31,1 (7) “Division” means the division of banking.

AB617,31,10 (8) “Eligible rating” means a credit rating of any of the 3 highest rating categories provided by an eligible rating service, whereby each category may include rating category modifiers such as “plus” or “minus” for S&P, or the equivalent for any other eligible rating service. Long-term credit ratings are deemed eligible if the rating is equal to A- or higher by S&P, or the equivalent from any other eligible rating service. Short-term credit ratings are deemed eligible if the rating is equal to or higher than A-2 or SP-2 by S&P, or the equivalent from any other eligible rating service. If ratings differ among eligible rating services, the highest rating applies when determining whether a security bears an eligible rating.

AB617,31,13 (9) “Eligible rating service” means any nationally recognized statistical rating organization as defined by the U.S. Securities and Exchange Commission, and any other organization designated by the division.

AB617,31,19 (10) “Federally insured depository financial institution” means a bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company organized under the laws of the United States or any state of the United States, when such bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank, or industrial loan company has federally insured deposits.

AB617,31,21 (11) “In this state” includes, with respect to a money transmission transaction, all of the following:

AB617,31,23 (a) A transaction requested in person at a physical location within the geographic boundaries of this state.

AB617,32,3 (b) A transaction requested by telephone or electronic means by a resident of this state, if information provided by the person requesting the transaction, or other records of the provider of money transmission, indicate that the person's physical address or principal place of business is located within the geographic boundaries of this state.

AB617,32,6 (12) “Key individual” means any individual ultimately responsible for establishing or directing policies and procedures of a licensee, such as an executive officer, manager, director, or trustee.

AB617,32,7 (13) “Licensee” means a person licensed under this chapter.

AB617,32,11 (14) “Material litigation” means litigation that, according to U.S. generally accepted accounting principles, is significant to a person's financial health and would be required to be disclosed in the person's annual audited financial statements, report to shareholders, or similar records.

AB617,32,13 (15) “Monetary value” means a medium of exchange, whether or not redeemable in money.

AB617,32,17 (16) “Money” means a medium of exchange that is authorized or adopted by the United States or a foreign government. “Money” includes a monetary unit of account established by an intergovernmental organization or by agreement between 2 or more governments.

AB617,32,18 (17) (a) “Money transmission” means any of the following:

AB617,32,19 1. Selling or issuing payment instruments to a person located in this state.

AB617,32,20 2. Selling or issuing stored value to a person located in this state.

AB617,32,21 3. Receiving money for transmission from a person located in this state.

AB617,32,22 (b) “Money transmission” includes payroll processing services.

AB617,32,25 (18) “MSB-accredited state” means a state that has an agency that is accredited by the Conference of State Bank Supervisors and Money Transmitter Regulators Association for money transmission licensing and supervision.

AB617,33,5 (19) “Multistate licensing process” means any agreement among state regulators relating to coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations, or notice and information requirements for a change of key individuals.

AB617,33,7 (20) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b).

AB617,33,9 (21) (a) “Outstanding money transmission obligations” includes all of the following: