Wisconsin 2025-2026 Regular Session

Wisconsin Assembly Bill AB133

Introduced
3/13/25  
Refer
3/13/25  

Caption

An Act to repeal 408.110 (2) (a), (b), (c) and (d), 408.110 (5) and (6), 408.511 (2) and (3) and 409.305 (1) (c); to renumber and amend 408.110 (2) (intro.) and 408.511 (1); to amend 408.503 (1) of the statutes; Relating to: investment securities under the Uniform Commercial Code.

Impact

One significant change proposed by AB133 is the modification of priority between entitlement holders and creditors of securities intermediaries. Previously, if a broker or bank held securities on behalf of clients, those clients (as entitlement holders) had claims that were generally not subject to creditor claims against the intermediary. This bill eliminates exceptions that would allow creditors to have claims over certain securities held on margin, thereby strengthening the rights of entitlement holders in various circumstances.

Summary

Assembly Bill 133 seeks to amend certain provisions of the Uniform Commercial Code (UCC) as it relates to investment securities and the jurisdiction governing creditor claims associated with these securities held in brokerage accounts. Under the current law, the rights and obligations among parties dealing with securities are intricately defined, especially pertaining to how securities are managed within brokerage accounts. This bill's primary objective is to simplify and clarify the rules around these securities, especially those not directly held in a customer's name but rather under the aggregated holdings of intermediaries.

Analysis

Ultimately, AB133 reflects a broader trend of revisiting the regulatory framework governing financial transactions to ensure that it aligns with current market realities and offers protection to investors without compromising the integrity of financial institutions. The bill's consideration will likely involve discussions on balancing the interests of securities intermediaries against those of individual investors, highlighting the need for robust safeguards that reflect the complexities of modern finance.

Contention

The revisions in AB133 may generate contention, particularly among financial institutions and regulators regarding the implications of changing the priority claims within securities holdings. Some stakeholders might argue that altering the prioritization could potentially limit the ability of securities intermediaries to offer margin accounts or impose greater risks on lenders if entitlement holders' claims are prioritized over theirs under varying circumstances. This could have downstream effects on the availability of credit for securities purchases and the overall market dynamics.

Companion Bills

WI SB123

Crossfiled An Act to repeal 408.110 (2) (a), (b), (c) and (d), 408.110 (5) and (6), 408.511 (2) and (3) and 409.305 (1) (c); to renumber and amend 408.110 (2) (intro.) and 408.511 (1); to amend 408.503 (1) of the statutes; Relating to: investment securities under the Uniform Commercial Code.

Previously Filed As

WI SB123

Investment securities under the Uniform Commercial Code.

WI SF0189

Uniform commercial code-investment securities amendments.

WI AB100

An act to amend the Budget Act of 2023 (Chapters 12, 38, and 189 of the Statutes of 2023) by amending Items 5227-122-0001 and 7502-495 of Section 2.

WI AB104

An act to amend the Budget Act of 2025 (Chapters 4 and 5 of the Statutes of 2025) by amending Items 0540-103-0001, 0690-301-0001, 0977-401, 1700-001-0001, 3125-301-0140, 3125-301-6088, 3540-001-0001, 3790-111-0577, 3825-002-6088, 3970-492, 5180-101-0890, 5180-151-0001, 5180-151-0890, 6100-107-0001, 6440-001-0001, 6610-001-0001, 6870-101-0001, 6870-194-0001, and 7760-101-0001 of, adding Items 3340-490, 5225-493, 5225-494, 6100-492, and 6870-403 to, repealing Item 3125-301-0720 of, Section 2.

WI HB548

A BILL to amend and reenact §§ 8.01-413.01, 8.01-622.1, 18.2-369, 32.1-127, 32.1-127.1:03, 32.1-138.1, 32.1-162.16, 32.1-162.18, 32.1-291.21, 32.1-309.1, 32.1-325, 37.2-804.2, as it is currently effective and as it shall become effective, 37.2-805.1, 37.2-817.01, 37.2-817.1, 37.2-837, 37.2-838, 37.2-1101, 37.2-1108, 53.1-133.04, 54.1-2807.02, 54.1-2818.1, 54.1-2818.5, 54.1-2970.1, 54.1-2987.1, 54.1-2988.1, 54.1-2993.1, 54.1-2995, 63.2-501, 63.2-1605, 64.2-2000, 64.2-2002, 64.2-2003, 64.2-2009, and 64.2-2019 of the Code of Virginia; to amend the Code of Virginia by adding in Chapter 29 of Title 54.1 an article numbered 8.1, consisting of sections numbered 54.1-2993.2 through 54.1-2993.31; and to repeal §§ 54.1-2981, 54.1-2982, 54.1-2983, 54.1-2983.2 through 54.1-2987, 54.1-2988, and 54.1-2989 through 54.1-2993 of the Code of Virginia, relating to Uniform Health Care Decisions Act; civil penalty.

WI HB1179

Transportation; changes various provisions of existing funds, etc.

WI HB1179

A BILL to amend and reenact §§ 33.2-359, 33.2-371, 33.2-1526, 33.2-1526.1, 33.2-3102, 33.2-3401, 33.2-3402, 33.2-3403, 33.2-3502, 46.2-774, and 46.2-2099.48 of the Code of Virginia; to amend the Code of Virginia by adding in Article 2 of Chapter 19 of Title 33.2 a section numbered 33.2-1904.1, by adding in Article 11 of Chapter 19 of Title 33.2 a section numbered 33.2-1937, by adding in Chapter 24 of Title 33.2 a section numbered 33.2-2402, by adding in Chapter 7 of Title 46.2 a section numbered 46.2-775, by adding a section numbered 58.1-603.3, and by adding in Chapter 17 of Title 58.1 articles numbered 13, 14, and 15, consisting of sections numbered 58.1-1749, 58.1-1750, and 58.1-1751; and to repeal § 33.2-3100.1 of the Code of Virginia, relating to transportation funding.

WI HB900

A BILL to amend and reenact §§ 33.2-358, 33.2-371, 33.2-1524, 33.2-1524.1, 33.2-1526.1, 33.2-3401, 33.2-3402, 33.2-3403, 33.2-3502, 46.2-774, 58.1-602, 58.1-603, as it is currently effective and as it may become effective, 58.1-609.5, 58.1-609.11, 58.1-612, 58.1-623, 58.1-647, and 58.1-648 of the Code of Virginia; to amend the Code of Virginia by adding in Article 2 of Chapter 19 of Title 33.2 a section numbered 33.2-1904.1, by adding in Article 11 of Chapter 19 of Title 33.2 a section numbered 33.2-1937, by adding in Chapter 24 of Title 33.2 a section numbered 33.2-2402, by adding in Chapter 7 of Title 46.2 a section numbered 46.2-775, by adding sections numbered 58.1-603.3 and 58.1-612.3, and by adding in Chapter 17 of Title 58.1 an article numbered 13, consisting of a section numbered 58.1-1749; and to amend Chapter 766 of the Acts of Assembly of 2013 by adding a nineteenth enactment, relating to sales and use tax on taxable services and digital personal property; taxes levied in certain transportation districts; funding for transportation.

WI HB1207

An Act to amend and reenact §§ 38.2-107.2, 38.2-135, 38.2-316, and 38.2-1800 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 38.2-107.3 and by adding in Title 60.2 a chapter numbered 8, consisting of sections numbered 60.2-800 through 60.2-818, relating to paid family and medical leave insurance program established; notice requirements; civil action; penalty.

WI HB1297

A BILL to amend and reenact §§ 2.2-3802, 51.5-148, 63.2-1605, and 63.2-1606 of the Code of Virginia and to amend the Code of Virginia by adding in Article 5 of Chapter 14 of Title 51.5 sections numbered 51.5-148.1 and 51.5-148.2 and by adding sections numbered 63.2-1605.1, 63.2-1605.2, and 63.2-1605.3, relating to adult protective services; adult abuse, neglect and exploitation central registry.

Similar Bills

MS HB170

UCC; revise certain provisions relating to investment securities.

WI SB123

Investment securities under the Uniform Commercial Code.

OK HB1741

Uniform Commercial Code; securities; intermediaries; effective date.

OK HB1741

Uniform Commercial Code; securities; intermediaries; effective date.

UT HB0543

Uniform Commercial Code Amendments

MO SB1256

Modifies provisions relating to the Uniform Commercial Code

SD HB1122

Amend provisions of the Uniform Commercial Code.

SD HB1248

Amend provisions of the Uniform Commercial Code.