Statutes interpreted
Statutory authority and explanation of statutory authority
The statutory authorities for the rule are the following:
Section
138.16 (2), Stats., which states that “[t]he division shall promulgate rules for determining the retail value of a motor vehicle for purposes of this paragraph, including rules specifying nationally recognized pricing guides that may be used for determining retail value at the time of loan origination."
Related rules or statutes
Plain language analysis
As a result of the passage of
2011 Wisconsin Act 32, a licensed lender that holds the proper certificate of authorization may make title loans. However, no licensed lender may make a title loan to a borrower that results in the borrower having liability for the loan, in principal, of more than 50 percent of the retail value of the motor vehicle used as security for the loan.
The objective is to promulgate a rule for determining the retail value of a motor vehicle, including specifying nationally recognized pricing guides that may be used for determining retail value at the time of loan origination.
Summary of and comparison with existing or proposed federal regulations
DFI is unaware of any existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Comparison with rules in adjacent states
Michigan and Iowa have no title lending rules.
Illinois has rules on title lending; however they do not address determining the retail value of a motor vehicle.
Minnesota has a limited number of rules regarding licensed regulated lenders, which may include payday lenders. Their rules cover the following topics: licensed office, maximum loan applies to multiple offices, licensees to be responsible for acts of assignees, management and control, transferred accounts, and computing date and time.
Summary of factual data and analytical methodologies
In developing these rules, the department reviewed title lending laws in states across the country. The department is engaged in outreach with title lenders and consumer organizations to gather input. Because the department regulates licensed financial services for the state, the division could rely on extensive staff expertise and experience in drafting regulations for these entities.
Analysis and supporting documents used to determine effect on small business
N/A.
Effect on Small Business
N/A.
Summary of Fiscal Estimate and Economic Impact Analysis
No impact.
Small Business Regulatory Coordinator
The agency's small business regulatory coordinator is Eric Knight, tel. (608) 267-1718, e-mail
eric.knight@wisconsin.gov.
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
|
Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
|
ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
|
1. Type of Estimate and Analysis
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X Original
Updated
Corrected
|
|
|
|
|
|
2. Administrative Rule Chapter, Title and Number
|
Chapter 76, Title Loans
|
|
|
|
|
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3. Subject
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Title Loans
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|
|
|
|
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4. Fund Sources Affected
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5. Chapter 20, Stats. Appropriations Affected
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GPR FED X PRO PRS
SEG SEG-S
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s. 20.144 (1) (g)
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|
|
|
|
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6. Fiscal Effect of Implementing the Rule
|
X No Fiscal Effect
Indeterminate
|
Increase Existing Revenues
Decrease Existing Revenues
|
Increase Costs
Could Absorb Within Agency's Budget
Decrease Cost
|
|
|
|
|
|
7. The Rule Will Impact the Following (Check All That Apply)
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State's Economy
Local Government Units
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X Specific Businesses/Sectors
Public Utility Rate Payers
Small Businesses (if checked, complete Attachment A)
|
|
|
|
|
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8. Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes
X No
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|
|
|
|
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9. Policy Problem Addressed by the Rule
|
2011 Wisconsin Act 32 requires the department to promulgate rules to approve the sources used to determine market value for vehicles in title loans.
|
|
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|
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10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
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Industry representatives and consumer groups.
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|
|
|
|
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11. Identify the local governmental units that participated in the development of this EIA.
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None.
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|
|
|
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12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
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None.
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|
|
|
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13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
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Provides guidance and clarification to the industry related to title lending.
|
|
|
|
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14. Long Range Implications of Implementing the Rule
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Continued guidance and clarification for the industry.
|
|
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|
|
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15. Compare With Approaches Being Used by Federal Government
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None.
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|
|
|
|
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16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
Michigan and Iowa have no related rules. Illinois has rules covering title lending, but the rules do not cover market value sources. Minnesota has a limited number of rules regarding licensed regulated lenders, but nothing that specifically addresses this subject.
|
|
|
|
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17. Contact Name
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18. Contact Phone Number
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Susan Dietzel
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608-267-0399
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This document can be made available in alternate formats to individuals with disabilities upon request.
Notice of Hearing
Financial Institutions — Banking
NOTICE IS HEREBY GIVEN that the Wisconsin Department of Financial Institutions will hold a public hearing on a proposed rule to to amend sections DFI—Bkg 75.01 (3), 75.02 (intro), 75.03 (3) and (3) (c), 75.05 (4), 75.06 (2), 75.07 (a), 75.08 (4) and (4) (b), and 75.09 (3) (a) 3.; create sections 75.01 (9), 75.03 (5), (6) and (7), 75.06 (5) and 75.08 (d); repeal sections 75.02 (1) and (2), and 75.10 (6); and repeal and recreate section 75.08 (1), relating to payday lending.
Hearing Information
Date: Monday, October 1, 2012
Time: 10:00 a.m.
Location: Department of Financial Institutions
345 W. Washington Avenue, 5th Floor
Madison, WI 53703
Accessibility
If you need accommodations because of a disability, or need an interpreter or translator, at least one week prior to the hearing contact Eric Knight, Department of Financial Institutions, Office of the Secretary, 345 W. Washington Avenue, Madison, WI 53703, tel. (608) 267-1718, e-mail
eric.knight@wisconsin.gov. Alternately hearing impaired callers may contact the DFI TTY at (608) 266-8818. The hearing facility is handicap accessible.
Copies of the Rule and Fiscal Estimate
A copy of the rule, fiscal estimate and related rule documents may be obtained at no charge from the department's website,
www.wdfi.org; the Wisconsin Administrative Rules Website,
http://adminrules.wisconsin
.gov; or by contacting Eric Knight, Department of Financial Institutions, Office of the Secretary, 345 W. Washington Avenue, Madison, WI 53703, tel. (608) 267-1718, e-mail
eric.knight@wisconsin.gov.
Submitting Comments on the Rule
Written comments on the rule should be submitted to Eric Knight, Department of Financial Institutions, Office of the Secretary, 345 W. Washington Avenue, Madison, WI 53703, e-mail
eric.knight@wisconsin.gov. Comments may also be submitted through the Wisconsin Administrative Rule Website,
http://adminrules.wisconsin.gov. The deadline for submitting comments is
4:30 p.m. on the 14
th day after the date for the hearing.
Analysis Prepared by the Department of Financial Institutions, Division of Banking
Statutes interpreted
Statutory authority and explanation of statutory authority
The statutory authorities for the rule are the following:
Section
138.14 (8) (b), Stats., which states that “[t]he division may promulgate such rules as it considers necessary for the administration of this section, including rules establishing database transaction fees under sub. (14) (h) and other fees considered reasonable and necessary by the division," and
Section
138.14 (14) (h), Stats., which states that “[t]he division shall, by order or rule, specify a database transaction fee of no more than $1 that the database provider shall charge to licensees to cover the costs of developing and implementing the database, and accessing the database to verify that a customer does not have any payday loans with the licensee or others that in combination with a new transaction will create a violation of this section."
Related statutes or rules
Plain language analysis
As a result of the passage of
2011 Wisconsin Act 32, changes to the existing payday lending rule are necessary to address conflicts that may exist between the current law and the existing rule.
A further objective is to provide clarity and direction for lenders making payday loans, as well as create clear guidance for the Department of Financial Institutions (“DFI"), which is charged with enforcing s.
138.14, Stats.
Summary of and comparison with existing or proposed federal regulations
DFI is aware that the Consumer Financial Protection Bureau intends to focus some of its resources on payday lending, but is unaware of any currently proposed regulation or rule.
Comparison with rules in adjacent states
An internet-based search of payday lending regulations for the states of Illinois, Iowa, Michigan and Minnesota found the following:
All four states now regulate payday lending.
Illinois has an extensive number of payday lending rules including rules covering topics such as: loan terms, a certified database method of verification and gross monthly income verification.
Iowa has no applicable rules at this time.
Michigan has a limited number of payday lending rules. An internet search of rules for Michigan finds their rules focus on definitions in regards to a database.
Minnesota has a limited number of rules regarding licensed regulated lenders, which may include payday lenders. Their rules cover the following topics: licensed office, maximum loan applies to multiple offices, licensees to be responsible for acts of assignees, management and control, transferred accounts, and computing date and time.
Summary of factual data and analytical methodologies
In developing these rules, the department reviewed payday lending laws in states across the country. The department is engaged in outreach with payday lenders and consumer organizations to gather input. Because the department regulates licensed financial services for the state, the division could rely on extensive staff expertise and experience in drafting regulations for these entities.
Analysis and supporting documents used to determine effect on small business
The division anticipates that any economic impact of implementing the rule would be minimal. The rule provides clarity to the payday lending industry with clear definitions and requirements which now must be made as the result of
2011 Wisconsin Act 32. Overall the requirements of this rule are straight-forward for ease in compliance.
Effect on small business
The proposed rule may require payday lenders to make minor changes to websites and/or forms. The agency's experience in making similar changes to DFI's website or forms indicates that the cost of making such changes is minimal.
Summary of Fiscal Estimate and Economic Impact Analysis
The division of banking anticipates that any economic impact of implementing the rule would be minimal. The proposed rule may require payday lenders to make minor changes to websites and/or forms. The agency's experience in making similar changes to the department's website or forms indicates that the cost of making such changes is minimal.
Small Business Regulatory Coordinator
The agency's small business regulatory coordinator is Eric Knight, tel. (608) 267-1718, e-mail
eric.knight@wisconsin.gov.
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
|
Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
|
ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
|
1. Type of Estimate and Analysis
|
X Original
Updated Corrected
|
|
|
|
|
|
2. Administrative Rule Chapter, Title and Number
|
Chapter DFI-Bkg 75 Payday Lending
|
|
|
|
|
|
3. Subject
|
Payday Lending
|
|
|
|
|
|
4. Fund Sources Affected
|
5. Chapter 20, Stats. Appropriations Affected
|
GPR FED
X PRO PRS
SEG SEG-S
|
20.144 (1) (g)
|
|
|
|
|
|
6. Fiscal Effect of Implementing the Rule
|
X No Fiscal Effect
Indeterminate
|
Increase Existing Revenues
Decrease Existing Revenues
|
Increase Costs
Could Absorb Within Agency's Budget
Decrease Cost
|
|
|
|
|
|
7. The Rule Will Impact the Following (Check All That Apply)
|
State's Economy
Local Government Units
|
X Specific Businesses/Sectors
Public Utility Rate Payers
Small Businesses (if checked, complete Attachment A)
|
8. Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes X No
|
|
|
|
|
|
9. Policy Problem Addressed by the Rule
|
As a result of the passage of 2011 Wisconsin Act 32, changes to the existing payday lending rule are necessary to address conflicts that may exist between the current law and the existing rule.
|
|
|
|
|
|
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
|
Industry representatives and consumer groups.
|
|
|
|
|
|
11. Identify the local governmental units that participated in the development of this EIA.
|
None.
|
|
|
|
|
|
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
|
The division of banking anticipates that any economic impact of implementing the rule would be minimal. The proposed rule may require payday lenders to make minor changes to websites and/or forms. The agency's experience in making similar changes to the department's website or forms indicates that the cost of making such changes is minimal.
|
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
|
|
|
|
|
|
|
14. Long Range Implications of Implementing the Rule
|
The rule provides clarity to the payday lending industry with clear definitions and requirements. There should be no long term impact associated with implementing the rule. Overall the requirements of this rule are straight-forward for ease in compliance.
|
|
|
|
|
|
15. Compare With Approaches Being Used by Federal Government
|
DFI is aware that the Consumer Financial Protection Bureau intends to focus some of its resources on payday lending, but is unaware of any currently proposed regulation or rule.
|
|
|
|
|
|
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
An internet-based search of payday lending regulations for the states of Illinois, Iowa, Michigan and Minnesota found the following:
All four states now regulate payday lending. Illinois has an extensive number of payday lending rules including rules covering topics such as: loan terms, a certified database method of verification and gross monthly income verification. Iowa has no applicable rules at this time. Michigan has a limited number of payday lending rules. An internet search of rules for Michigan finds their rules focus on definitions in regards to a database. Minnesota has a limited number of rules regarding licensed regulated lenders, which may include payday lenders. Their rules cover the following topics: licensed office, maximum loan applies to multiple offices, licensees to be responsible for acts of assignees, management and control, transferred accounts, and computing date and time.
|
17. Contact Name
|
18. Contact Phone Number
|
Susan Dietzel
|
608-267-0399
|
This document can be made available in alternate formats to individuals with disabilities upon request.
Notice of Hearing
Health Services
DHS 196 and Appendix (WI Food Code)
NOTICE IS HEREBY GIVEN That pursuant to sections
254.74 (1) (a) and
(d) Stats., the Department of Health Services will hold a public hearing to consider the amendment of rules revising Chapter
DHS 196, relating to restaurants and the Wisconsin Food Code.
Hearing Information
Date: Tuesday, October 9, 2012
Time: 10:00 a.m.-2:00p.m.
Location: Wisconsin Department of Agriculture, Trade and Consumer Protection
2811 Agriculture Drive
Madison, WI 53718
Date: Thursday, October 11, 2012
Time: 10:00 a.m.-2:00p.m.
Location: Waupaca Public Courthouse
Room LL42
811 Harding Street
Waupaca, Wisconsin 54981
Date: Friday, October 12, 2012
Time: 10:00 a.m.-2:00p.m.
Location: Eau Claire State Office Building
718 W. Clairemont Ave
Eau Claire, WI 54701
