§ 217.03 — Exemptions.

Wisconsin § 217.03

• Jurisdiction: Wisconsin
• Ch. 217: Money transmitters

Text

217.03
217.03(1) (1) This chapter does not apply to any of the following:
217.03(1)(a) (a) An operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons exempted by this section or licensees, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, or similar funds transfers.
217.03(1)(b) (b) A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services, other than money transmission itself, provided to the payor by the payee, if all the following are true:
217.03(1)(b)1. 1. There exists a written agreement between the payee and the agent directing the agent to collect and process payments from payors on the payee’s behalf.
217.03(1)(b)2. 2. The payee holds the agent out to the public as accepting payments for goods or services on the payee’s behalf.
217.03(1)(b)3. 3. Payment for the goods and services is treated as received by the payee upon receipt by the agent, so that the payor’s obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the funds to the payee.
217.03(1)(c) (c) A person who acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender and the sender’s designated recipient, if all the following are true:
217.03(1)(c)1. 1. The entity is licensed, or is exempt from licensing requirements, under this chapter.
217.03(1)(c)2. 2. The entity provides a receipt, electronic record, or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction.
217.03(1)(c)3. 3. The entity bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the funds to the sender’s designated recipient.
217.03(1)(d) (d) The United States or a department, agency, or instrumentality thereof, or its agent.
217.03(1)(e) (e) Money transmission by the U.S. postal service or an agent of the U.S. postal service.
217.03(1)(f) (f) A state, county, city, or any other governmental agency or governmental subdivision or instrumentality of a state, or its agent.
217.03(1)(g) (g) A federally insured depository financial institution, bank holding company, office of an international banking corporation, foreign bank that establishes a federal branch pursuant to the International Bank Act, 12 USC 3102 , corporation organized pursuant to the Bank Service Corporation Act, 12 USC 1861 to 1867 , or corporation organized under the Edge Act, 12 USC 611 to 633 .
217.03(1)(h) (h) Electronic funds transfer of governmental benefits for a federal, state, county, or governmental agency by a contractor on behalf of the United States or a department, agency, or instrumentality thereof, or on behalf of a state or governmental subdivision, agency, or instrumentality thereof.
217.03(1)(i) (i) A board of trade designated as a contract market under the federal Commodity Exchange Act, 7 USC 1 to 25 , or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for such a board.
217.03(1)(j) (j) A registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant.
217.03(1)(k) (k) A person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as such a broker-dealer.
217.03(1)(L) (L) An individual employed by a licensee, authorized delegate, or any person exempted from the licensing requirements of this chapter when acting within the scope of employment and under the supervision of the licensee, authorized delegate, or exempted person as an employee and not as an independent contractor.
217.03(1)(m) (m) A person expressly appointed as a 3rd-party service provider to or agent of an entity exempt under par. (g) , solely to the extent that all of the following are true:
217.03(1)(m)1. 1. The service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform.
217.03(1)(m)2. 2. The exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to a purchaser or holder of the outstanding money transmission obligations upon receipt of the purchaser’s or holder’s money or monetary value by the service provider or agent.
217.03(1)(n) (n) A person exempted by written determination of the division, if the division finds the exemption to be in the public interest and that the regulation of the person is not necessary for the purposes of this chapter.
217.03(1)(o) (o)
217.03(1)(o)1. 1. A person that delivers wages or salaries on behalf of employers to employees or facilitates the payment of payroll taxes to state and federal agencies, makes payments relating to employee benefit plans, makes distributions of other authorized deductions from employees’ wages or salaries, or transmits other funds on behalf of an employer in connection with transactions related to employees.
217.03(1)(o)2. 2. Notwithstanding subd. 1. , a person described in subd. 1. that offers money transmission services or provides stored value cards directly to individual consumers shall comply with this chapter to the extent of that activity.
217.03(2) (2) The division may require that any person claiming to be exempt from licensing requirements under this chapter provide information and documentation to the division demonstrating that the person qualifies for any claimed exemption.

Legislative History

217.03 History History: 2023 a. 267 .