Financial Institutions

AB 1022 establishes a "baby bond program" that creates a state trust fund to provide financial support for newborns. The bill requires sharing birth record information (excluding Social Security numbers) with the Department of Financial Institutions, which opens a baby bond account for each eligible child at birth. Funds in the account can be used later for specific eligible expenses like postsecondary education, home purchases, business startup, or retirement savings (as defined in §224.58). The program is funded through an annual $150,000 state appropriation, donations, and investment earnings from the baby bond fund. It directly affects all newborns in the state whose birth records are processed under the new requirements.

AB 968 would require virtual currency kiosks (machines exchanging cash for digital currency or vice versa) to obtain state licenses, display mandatory fraud warnings, and verify customer identities using government ID and photos. It sets a $500 daily transaction limit, caps fees at 3% or $5 per transaction, and mandates detailed receipts showing all transaction details. The bill directly affects kiosk operators and customers, aiming to prevent fraud through identity checks and clear transaction records. Currently under review in the Financial Institutions committee.

This bill exempts youth entrepreneurs aged 12 to 17 from paying filing fees when forming a limited liability company in Wisconsin. It applies specifically to LLCs where all members are youth entrepreneurs or where all organizers who become members are youth entrepreneurs. The Department of Financial Institutions would no longer collect the standard filing fee for these qualifying youth-led businesses. The law takes effect on the first day of the second month after publication in 2026.

AB 384 regulates virtual currency kiosks (machines that exchange cash for cryptocurrency or vice versa) by requiring operators to obtain state licenses, display a specific fraud warning before every transaction, and verify customer identities using government ID and photos. It limits daily transactions to $1,000 in cash, caps fees at $5 or 3% of the transaction amount, and mandates refunds for fraud victims who report incidents within 30 days. The law directly affects kiosk operators (who must comply with licensing and ID rules) and customers (who receive fraud protections and transaction limits). These provisions aim to reduce scams and financial risks associated with in-person crypto exchanges.

AB 133 modifies Wisconsin's laws governing investment securities under the Uniform Commercial Code. It repeals outdated provisions about where securities laws apply (sections 408.110 (2)(a-d), (5-6), and 409.305 (1)(c)) and clarifies that assets held by securities intermediaries (like banks or brokers) belong to investors (entitlement holders), not the intermediary itself. The bill specifically changes priority rules to ensure investors' claims take precedence over creditor claims if a securities intermediary cannot cover all obligations. This directly affects securities intermediaries and their investor clients by strengthening investor protections in financial asset holdings. The changes take effect four months after publication.