LRB-1787/1
MDK:cjs:ph
2009 - 2010 LEGISLATURE
March 2, 2010 - Introduced by Senators Sullivan, A. Lasee, Taylor and Plale,
cosponsored by Representatives
Fields, Zigmunt, Vos, Berceau,
Pope-Roberts, Townsend and Lothian. Referred to Committee on Veterans
and Military Affairs, Biotechnology, and Financial Institutions.
SB581,1,5
1An Act to amend 409.520 (title), 409.520 (1), 409.521 (1), 409.521 (2) (form) 1d.,
22d. and 11d. and 409.521 (3) (form) 7d.; and
to create 224.30 (4), 409.516 (2)
3(h) and 409.520 (1m) of the statutes;
relating to: prohibiting social security
4numbers on instruments under the corporate registration system and on
5records under Article 9 of the Uniform Commercial Code.
Analysis by the Legislative Reference Bureau
This bill prohibits the Department of Financial Institutions (DFI) from
recording in its corporate registration system any instrument containing an
individual's social security number (SSN). If DFI is presented with an instrument
containing an SSN, the bill allows DFI, prior to recording the instrument in the
system, to remove or obscure characters from the SSN so that it is not discernable
on the instrument. The bill also provides that, if DFI does not discover an SSN on
an instrument until after DFI has recorded the instrument in the system, DFI is not
liable for the instrument drafter's placement of the SSN on the instrument, and DFI
is allowed to remove or obscure characters from the SSN so that it is not discernable
on the instrument. In addition, if DFI records an instrument in the system
containing a complete SSN, the bill provides that the drafter of the instrument is
liable for actual damages resulting from the instrument being recorded.
The bill creates comparable provisions for records under the state's version of
Article 9 of the Uniform Commercial Code, which deals with secured transactions.
The bill prohibits an office in which financing statements are to be filed under Article
9, which is referred to as a "filing office" and which is, with certain exceptions, DFI,
from filing or indexing a record containing an individual's SSN. If a filing office is
presented with a record containing an SSN, the filing office may, prior to filing and
indexing, remove or obscure characters as described above. If a filing office discovers
an SSN on a record after filing and indexing, the filing office may also remove or
obscure characters, and the filing office is not liable for the record drafter's placement
of the SSN on the record. In addition, if a filing office files or indexes a record
containing a complete SSN, the drafter of the record is liable for actual damages
resulting from the record being filed and indexed. The bill also eliminates references
to SSNs on forms used for filing and amending financing statements.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB581, s. 1
1Section
1. 224.30 (4) of the statutes is created to read:
SB581,2,42
224.30
(4) Restrictions on recording instruments with social security
3numbers. (a) In this subsection, "system" means the department's corporate
4registration information system.
SB581,2,105
(b) The department may not record in the system any instrument offered for
6recording that contains the social security number of an individual. If the
7department is presented with an instrument for recording in the system that
8contains an individual's social security number, the department may, prior to
9recording the instrument, remove or obscure characters from the social security
10number such that the social security number is not discernable on the instrument.
SB581,3,211
(c) If the department is presented with an instrument for recording in the
12system that contains an individual's social security number, and if the department
13records the instrument but does not discover that the instrument contains the
14individual's social security number until after the instrument is recorded, the
15department is not liable for the instrument drafter's placement of the individual's
16social security number on the instrument and the department may remove or
1obscure characters from the social security number such that the social security
2number is not discernable on the instrument.
SB581,3,63
(d) If the department records an instrument in the system that contains the
4complete social security number of an individual, the instrument drafter is liable to
5the individual whose social security number appears in the recorded instrument for
6any actual damages resulting from the instrument being recorded.
SB581, s. 2
7Section
2. 409.516 (2) (h) of the statutes is created to read:
SB581,3,88
409.516
(2) (h) The record contains the social security number of an individual.
SB581, s. 3
9Section
3. 409.520 (title) of the statutes is amended to read:
SB581,3,11
10409.520 (title)
Acceptance and refusal to accept record; social security
11numbers.
SB581, s. 4
12Section
4. 409.520 (1) of the statutes is amended to read:
SB581,3,1813
409.520
(1) Mandatory refusal to accept record. A filing office shall refuse
14to accept a record for filing for a reason set forth in s. 409.516 (2) and may refuse to
15accept a record for filing only for a reason set forth in s. 409.516 (2).
The presence
16or absence of a social security number on a form of record providing for the insertion
17of a social security number as such shall not affect the decision of the filing office to
18accept or refuse the record for filing.
SB581, s. 5
19Section
5. 409.520 (1m) of the statutes is created to read:
SB581,3,2520
409.520
(1m) Social security numbers. (a) A filing office may not file and
21index a record under this subchapter if the record contains the social security
22number of an individual. If a filing office is presented with a record that contains an
23individual's social security number, the filing office may, prior to filing and indexing
24the record, remove or obscure characters from the social security number such that
25the social security number is not discernable on the record.
SB581,4,7
1(b) If a filing office is presented with a record for filing and indexing that
2contains an individual's social security number, and if the filing office does not
3discover that the record contains the individual's social security number until after
4the record is filed and indexed, the filing office is not liable for the record drafter's
5placement of the individual's social security number on the record and the filing
6office may remove or obscure characters from the social security number such that
7the social security number is not discernable on the record.
SB581,4,118
(c) If a filing office files and indexes a record that contains the complete social
9security number of an individual, the record drafter is liable to the individual whose
10social security number appears in the filed and indexed record for any actual
11damages resulting from the record being filed and indexed.
SB581, s. 6
12Section
6. 409.521 (1) of the statutes is amended to read:
SB581,4,1613
409.521
(1) Tax identification number. In publishing instructions for the
14forms specified in subs. (2) and (3), the department of financial institutions shall
15include a statement, where applicable, that inclusion of
a social security number or 16an employer identification number is not required under Wisconsin law.
SB581, s. 7
17Section
7. 409.521 (2) (form) 1d., 2d. and 11d. of the statutes are amended to
18read:
SB581, s. 8
1Section
8. 409.521 (3) (form) 7d. of the statutes is amended to read:
SB581,5,54
(1) The treatment of section 224.30 (4) (b), (c), and (d) of the statutes first
5applies to instruments recorded on the effective date of this subsection.
SB581,5,76
(2) The treatment of sections 409.520 (1m) (a), (b), and (c) of the statutes first
7applies to records filed and indexed on the effective date of this subsection.
