SB589, s. 13
1Section 13. 218.01 (2) (b) of the statutes, as affected by 1995 Wisconsin Act 27,
2section 5843, is amended to read:
SB589,8,173 218.01 (2) (b) Application for license shall be made to the licensor, at such time,
4in such form and with such information as the licensor shall require and shall be
5accompanied by the required fees. An applicant for a sales finance company license,
6other than a motor vehicle dealer, shall pay to the division of banking a
7nonrefundable $300 investigation fee in addition to the license fee under par. (dr).
8If the cost of an investigation exceeds $300, the applicant shall, upon demand of the
9division of banking, pay the amount by which the cost of the investigation exceeds
10the nonrefundable fee. A licensee is not required to pay an investigation fee for the
11renewal of a license. The licensor may require the applicant to provide information
12relating to any pertinent matter that is commensurate with the safeguarding of the
13public interest in the locality in which the applicant proposes to engage in business,
14except that information relating to the applicant's solvency and financial standing
15may not be required for motor vehicle dealers except as provided in par. (h) 1. The
16information provided may be considered by the licensor in determining the fitness
17of the applicant to engage in business as set forth in this section.
SB589, s. 14 18Section 14. 218.01 (2) (bb) of the statutes, as affected by 1995 Wisconsin Act
1927
, is renumbered 218.01 (2) (bb) 1.
SB589, s. 15 20Section 15. 218.01 (2) (bb) 2. of the statutes is created to read:
SB589,9,321 218.01 (2) (bb) 2. A sales finance company or an applicant for a sales finance
22company license shall provide and maintain in force a bond or irrevocable letter of
23credit of not less than $25,000 issued by a surety company licensed to do business in
24this state or a federally insured financial institution, as defined in s. 705.01 (3). The
25bond or letter of credit shall be payable to the state of Wisconsin for the use of the

1state and of any person who sustains a loss because of an act of a sales finance
2company that constitutes grounds for the suspension or revocation of a license under
3this section.
SB589, s. 16 4Section 16. 218.01 (2) (d) 8. b. of the statutes, as affected by 1995 Wisconsin
5Act 27
, is amended to read:
SB589,9,96 218.01 (2) (d) 8. b. For motor vehicle dealers that operate as a sales finance
7company or that carry or retain time sales retail instalment contracts or consumer
8leases
for more than 30 days, to the division of banking, the same as for sales finance
9companies under par. (dr), except for gross volume of $100,000 or less, $50.
SB589, s. 17 10Section 17. 218.01 (2) (dr) of the statutes, as affected by 1995 Wisconsin Act
1127
, is amended to read:
SB589,9,2012 218.01 (2) (dr) The fee for licenses for sales finance companies, except as
13provided in par. (d) 8.,
for each calendar year, or part of a calendar year, is based on
14the gross volume of purchases of retail sales instalment contracts and consumer
15leases
of motor vehicles sold or leased in this state for the 12 months immediately
16preceding October 31 of the year in which the application for license is made, as
17follows: On a gross volume of $100,000 or less, $50; and on each $100,000 or part
18thereof over $100,000, an additional $15. No extra charge shall be made for branch
19licenses for sales finance companies. Gross volume shall be based on the unpaid
20balance of the retail instalment contracts and consumer leases.
SB589, s. 18 21Section 18. 218.01 (2) (h) 2. of the statutes, as affected by 1995 Wisconsin Act
2227
, is amended to read:
SB589,9,2523 218.01 (2) (h) 2. Provided the licensor has reasonable cause to doubt the
24financial responsibility of the applicant or licensee or the compliance by the
25applicant or licensee with this section, the licensor may require the applicant or

1licensee to furnish and maintain a bond in the form, amount and with the sureties
2it approves, but not less than $5,000, nor more than $100,000, conditioned upon the
3applicant or licensee complying with the statutes applicable to the licensee and as
4indemnity for any loss sustained by any person by reason of any acts of the licensee
5constituting grounds for suspension or revocation of the license under this section.
6The bonds shall be executed in the name of the department of transportation for the
7benefit of any aggrieved parties; provided that the aggregate liability of the surety
8to all such parties shall, in no event, exceed the amount of the bond. The bonding
9requirements in this subdivision shall not apply to manufacturers, factory branches,
10and their agents and is in addition to the bond or letter of credit required of a motor
11vehicle dealer under par. (bb) 1.
SB589, s. 19 12Section 19. 218.01 (2) (k) 3. of the statutes is amended to read:
SB589,10,1413 218.01 (2) (k) 3. Has had experience or training in, or is otherwise qualified for,
14selling or leasing motor vehicles.
SB589, s. 20 15Section 20. 218.01 (2) (k) 5. of the statutes is amended to read:
SB589,10,1716 218.01 (2) (k) 5. Is reasonably familiar with the motor vehicle sales or consumer
17lease
laws or contracts that the applicant is proposing to solicit, negotiate or effect.
SB589, s. 21 18Section 21. 218.01 (3) (a) 5. of the statutes is amended to read:
SB589,10,2019 218.01 (3) (a) 5. Wilfully defrauding any retail buyer , lessee or prospective
20lessee
to the buyer's, lessee's or prospective lessee's damage.
SB589, s. 22 21Section 22. 218.01 (3) (a) 6. of the statutes is amended to read:
SB589,10,2322 218.01 (3) (a) 6. Wilful failure to perform any written agreement with any retail
23buyer, lessee or prospective lessee.
SB589, s. 23 24Section 23. 218.01 (3) (a) 8. of the statutes is amended to read:
SB589,11,2
1218.01 (3) (a) 8. Having made a fraudulent sale, consumer lease, prelease
2agreement,
transaction or repossession.
SB589, s. 24 3Section 24. 218.01 (3) (a) 9. of the statutes is amended to read:
SB589,11,74 218.01 (3) (a) 9. Fraudulent misrepresentation, circumvention or concealment
5through whatsoever subterfuge or device of any of the material particulars or the
6nature thereof required hereunder to be stated or furnished to the retail buyer, lessee
7or prospective lessee
.
SB589, s. 25 8Section 25. 218.01 (3) (a) 10. of the statutes is amended to read:
SB589,11,129 218.01 (3) (a) 10. Employment of fraudulent devices, methods or practices in
10connection with compliance with the statutes with respect to the retaking of goods
11under retail instalment contracts or consumer leases and the redemption and resale
12or subsequent lease of such goods.
SB589, s. 26 13Section 26. 218.01 (3) (a) 13. of the statutes is amended to read:
SB589,11,1514 218.01 (3) (a) 13. Having sold a retail instalment contract or consumer lease
15to a sales finance company not licensed hereunder.
SB589, s. 27 16Section 27. 218.01 (3) (a) 14. of the statutes is amended to read:
SB589,11,1817 218.01 (3) (a) 14. Having violated any law relating to the sale, lease,
18distribution or financing of motor vehicles.
SB589, s. 28 19Section 28. 218.01 (3) (a) 18. of the statutes is amended to read:
SB589,12,220 218.01 (3) (a) 18. Having accepted an order or contract of purchase or a contract
21from a buyer or a consumer lease or prelease agreement from a lessee or prospective
22lessee
if such arrangement results in the practice of bushing. For the purpose of this
23section, "bushing" means the practice of increasing the selling price or capitalized
24cost
of a motor vehicle above that originally quoted the purchaser , lessee or
25prospective lessee
as evidenced by a purchase order or , contract, prelease agreement

1or consumer lease
which has been signed by both the purchaser, lessee or prospective
2lessee
and dealer licensee.
SB589, s. 29 3Section 29. 218.01 (3) (a) 19. of the statutes is amended to read:
SB589,12,84 218.01 (3) (a) 19. Having advertised, printed, displayed, published,
5distributed, broadcast or televised or caused or permitted to be advertised, printed,
6displayed, published, distributed, broadcast or televised in any manner whatsoever,
7any statement or representation with regard to the sale, lease or financing of motor
8vehicles which is false, deceptive or misleading.
SB589, s. 30 9Section 30. 218.01 (3) (a) 20. of the statutes is amended to read:
SB589,12,1610 218.01 (3) (a) 20. Having set up, promoted or aided in the promotion of a plan
11by which motor vehicles are sold or leased to a person for a consideration and upon
12the further consideration that the purchaser or lessee agrees to secure one or more
13persons to participate in the plan by respectively making a similar purchase or lease
14and in turn agreeing to secure one or more persons likewise to join in said plan, each
15purchaser or lessee being given the right to secure money, credits, goods or something
16of value, depending upon the number of persons joining in the plan.
SB589, s. 31 17Section 31. 218.01 (3) (a) 21. of the statutes is amended to read:
SB589,12,2418 218.01 (3) (a) 21. Being a dealer who keeps open the dealer's place of business
19on Sunday for the purpose of buying, leasing or selling motor vehicles; but nothing
20in this subdivision shall apply to any person who conscientiously believes that the
217th day of the week, from sunset Friday to sunset Saturday, should be observed as
22the Sabbath and who actually refrains from conducting or engaging in the business
23of buying, leasing, selling or offering for lease or sale motor vehicles, or performing
24other secular business on that day.
SB589, s. 32 25Section 32. 218.01 (3) (a) 25. of the statutes is amended to read:
SB589,13,1
1218.01 (3) (a) 25. Having violated chs. 421 to 427 or 429.
SB589, s. 33 2Section 33. 218.01 (3) (a) 29. of the statutes is amended to read:
SB589,13,53 218.01 (3) (a) 29. Being an inactive business, as evidenced by 3 or less motor
4vehicle purchases and sales or consumer leases during the prior year licensing
5period.
SB589, s. 34 6Section 34. 218.01 (3) (bf) 1. of the statutes, as affected by 1995 Wisconsin Act
727
, is amended to read:
SB589,13,168 218.01 (3) (bf) 1. The department of transportation shall not license as a dealer
9an applicant for the sale or lease of motor vehicles at retail unless such applicant
10owns or leases a vehicle display lot and a permanent building wherein there are
11facilities to display automobiles and motorcycles and facilities to repair functional
12and nonfunctional parts of motor vehicles and where replacement parts, repair tools
13and equipment to service motor vehicles are kept, and at which place of business
14shall be kept and maintained the books, records and files necessary to conduct the
15business. A residence, tent or temporary stand is not a sufficiently permanent place
16of business within the meaning of this paragraph.
SB589, s. 35 17Section 35. 218.01 (5) (a) of the statutes is amended to read:
SB589,14,218 218.01 (5) (a) The licensor shall promote the interests of retail buyers and
19lessees
of motor vehicles relating to default, delinquency, repossession or collection
20charges and the refund of the finance charge and insurance premium on prepayment
21of the instalment contract or consumer lease. It may define unfair practices in the
22motor vehicle industry and trade between licensees or between any licensees and
23retail buyers, lessees or prospective lessees of motor vehicles, but may not limit the
24price at which licensees may sell, assign or transfer receivables, contracts or other

1evidence of any obligation arising out of an instalment sale or consumer lease made
2under this section.
SB589, s. 36 3Section 36. 218.01 (6) (b) (intro.) of the statutes, as affected by 1995 Wisconsin
4Act 27
, is renumbered 218.01 (6) (b) and amended to read:
SB589,14,205 218.01 (6) (b) Prior to or concurrent with any instalment sale, the seller shall
6deliver to the buyer a written statement describing clearly the motor vehicle sold to
7the buyer, the cash sale price, the cash paid down by the buyer, the amount credited
8the buyer for any trade-in and a description of the trade-in, the cost to the retail
9buyer of any insurance, the amount financed which may include the cost of
10insurance, sales and use taxes, the amount of the finance charge, the amount of any
11other charge specifying its purpose, the total of payments due from the buyer, the
12terms of the payment of such total, the amount and date of each payment necessary
13finally to pay the total and a summary of any insurance coverage to be effected. The
14division of banking may determine the form of the statement. If a written order is
15taken from a prospective purchaser in connection with any instalment sale, the
16written statement shall be given to the purchaser prior to or concurrent with the
17signing of the order by the purchaser. The finance charge in a retail instalment sale
18made prior to April 6, 1980, however computed, excluding the cost of insurance shall
19not exceed the amount computed on the basis of the following annual percentage
20rates:
SB589, s. 37 21Section 37. 218.01 (6) (b) 1. to 8. of the statutes are repealed.
SB589, s. 38 22Section 38. 218.01 (6) (bm) and (bn) of the statutes are repealed.
SB589, s. 39 23Section 39. 218.01 (6) (bp) of the statutes is amended to read:
SB589,15,324 218.01 (6) (bp) A retail instalment sale made after October 31, 1984, is not
25subject to any maximum finance charge limit rate. The maximum allowable finance

1charge shall be computed on the declining principal balance of the amount financed
2as determined under par. (b) at the annual percentage rate, disclosed pursuant to
3subch. III of ch. 422, according to the actuarial method as defined in s. 421.301 (1)
.
SB589, s. 40 4Section 40. 218.01 (6) (d) of the statutes is amended to read:
SB589,15,85 218.01 (6) (d) A violation of par. (a), (b), (bm), (bn), or (bp) or (k) bars recovery
6of any finance charge by the seller, or an assignee of the seller who, at the time of the
7assignment, had knowledge of the violation, in any suit upon a sales contract arising
8from the sale where the violation occurred.
SB589, s. 41 9Section 41. 218.01 (6) (j) of the statutes is repealed.
SB589, s. 42 10Section 42. 218.01 (6x) of the statutes is created to read:
SB589,15,1311 218.01 (6x) Prelease agreements. (a) Every prelease agreement shall be in
12writing, which shall contain all of the agreements of the parties with respect to
13entering into a consumer lease and shall be signed by both parties.
SB589,15,1514 (b) No prelease agreement shall be binding on a prospective lessee unless all
15of the following apply:
SB589,15,1816 1. All of the information required to be disclosed under par. (d) or in a consumer
17lease under s. 429.203 (3) and (4) is disclosed in writing to the prospective lessee
18before the execution of the prelease agreement by the prospective lessee.
SB589,15,2119 2. The prelease agreement contains, directly above the place for the prospective
20lessee's signature, a notice in substantially the following language in bold-faced
21capital letters of not less than 10-point type:
SB589,15,2222 NOTICE TO PROSPECTIVE LESSEE
SB589,16,323 a. THIS IS A BINDING PRELEASE AGREEMENT. BY SIGNING THIS
24AGREEMENT, YOU WILL BECOME OBLIGATED TO ENTER INTO AN
25AGREEMENT WITH THE PROSPECTIVE LESSOR TO LEASE THE VEHICLE

1DESCRIBED IN THIS AGREEMENT WHEN IT IS AVAILABLE AND READY TO
2BE DELIVERED TO YOU, UPON LEASE TERMS DISCLOSED IN THIS
3AGREEMENT OR IN THE ATTACHED DISCLOSURE STATEMENT, IF ANY.
SB589,16,54 b. DO NOT SIGN THIS AGREEMENT BEFORE YOU READ IT, INCLUDING
5THE WRITING ON THE REVERSE SIDE.
SB589,16,66 c. DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.
SB589,16,87 d. YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU
8SIGN.
SB589,16,169 (c) An exact copy of the prelease agreement shall be furnished by the
10prospective lessor to the prospective lessee at the time that the prospective lessee
11signs the agreement. The prospective lessee's copy of the agreement shall contain
12the signature of the prospective lessor identical with the signature on the original
13contract. No agreement shall be signed in blank except that a detailed description
14of the motor vehicle, including the serial number or other identifying marks of the
15vehicle, that is not available at the time of execution of such agreement may be
16omitted.
SB589,16,2217 (d) A prospective lessor may cancel a prelease agreement that is contingent
18upon approval of the prospective lessee's credit by a sales finance company to whom
19the prospective lessor intends to assign the consumer lease, if the agreement
20contains a provision requiring the prospective lessor to give the prospective lessee
21written notice of such cancellation within 10 business days of execution of the
22agreement and the notice is given to the prospective lessee.
SB589,17,223 (e) No prelease agreement may contain a clause which, upon nonacceptance of
24the vehicle by the prospective lessee, would subject the prospective lessee to a

1penalty greater than 5% of the capitalized cost, as defined in s. 429.104 (5), of the
2vehicle.
SB589, s. 43 3Section 43. 218.01 (7b) of the statutes, as affected by 1995 Wisconsin Act 27,
4is amended to read:
SB589,17,245 218.01 (7b) (title) Purchase or lease of motor vehicle by minor. No minor
6shall purchase or lease any motor vehicle unless the minor, at the time of purchase
7or lease, submits to the seller or lessor a statement verified before a person
8authorized to administer oaths and made and signed by either parent of the
9purchaser or lessee, if such parent has custody of the minor or, if neither parent has
10custody, then by the person having custody, setting forth that the purchaser or lessee
11has consent to purchase or lease the vehicle. The signature on the statement shall
12not impute any liability for the purchase price of the motor vehicle or for any
13payments under the consumer lease
to the consenting person. The statement shall
14not adversely affect any other arrangement for the assumption of liability for the
15purchase price or any lease payments which the consenting person may make. The
16If a vehicle is purchased by a minor, the signed statement shall accompany the
17application for a certificate of title and shall be filed by the department of
18transportation with the application. Failure to obtain the consent or to forward it,
19together
with the application for a certificate of title in the event of the purchase of
20a motor vehicle,
shall not void the contract of sale or consumer lease of a motor vehicle
21in the hands of an innocent holder, without notice, for value and in the ordinary
22course of business. Any person who sells or leases a motor vehicle to a minor with
23knowledge of such fact without procuring such a statement may be fined not more
24than $200 or imprisoned not more than 6 months or both.
SB589, s. 44 25Section 44. 218.01 (9) (b) of the statutes is amended to read:
SB589,18,4
1218.01 (9) (b) Any retail buyer, lessee or prospective lessee suffering pecuniary
2loss because of a violation by a licensee of sub. (3) (a) 4., 5., 6., 8., 9., 10., 11., 18., 25.
3or 31. may recover damages for the loss in any court of competent jurisdiction
4together with costs, including reasonable attorney fees.
SB589, s. 45 5Section 45. 344.51 (title) of the statutes is amended to read:
SB589,18,7 6344.51 (title) Financial responsibility for domestic rented or leased
7vehicles.
SB589, s. 46 8Section 46. 344.51 (1) of the statutes is amended to read:
SB589,18,179 344.51 (1) No person may for compensation rent or lease any motor vehicle to
10be operated by or with the consent of the person renting or leasing the vehicle unless
11there is filed with the department a good and sufficient bond or policy of insurance
12issued by an insurer authorized to do an automobile liability insurance or surety
13business in this state. The bond, policy or certificate shall provide that the insurer
14which issued it will be liable for damages caused by the negligent operation of the
15motor vehicle in the amounts set forth in s. 344.01 (2) (d). No person complying with
16this subsection is liable for damages caused by the negligent operation of the motor
17vehicle.
SB589, s. 47 18Section 47. 344.51 (2) of the statutes is amended to read:
SB589,18,2419 344.51 (2) Any person failing to comply with this section is directly liable for
20all damages caused by the negligence of the person operating such rented or leased
21vehicle to the extent that such liability could have been established if this section had
22been complied with
, but such liability may not exceed the limits set forth in s. 344.01
23(2) (d) with respect to the acceptable limits of liability when furnishing proof of
24financial responsibility
.
SB589, s. 48 25Section 48. 421.103 (2) of the statutes is amended to read:
SB589,19,3
1421.103 (2) Unless terms used in chs. 421 to 427 are defined by particular
2provisions of chs. 421 to 427, they shall have the meaning given them in chs. 401 to
3411 and 429, if they are defined in chs. 401 to 411 or 429.
SB589, s. 49 4Section 49. 421.103 (5) of the statutes is created to read:
SB589,19,65 421.103 (5) Unless superseded by the particular provisions of ch. 429, chs. 421
6to 427 apply to motor vehicle consumer leases.
SB589, s. 50 7Section 50. 421.201 (5) of the statutes is amended to read:
SB589,19,178 421.201 (5) Subchapters I and II of ch. 425, relating to creditors' remedies,
9including applicable penalties, apply to actions or other proceedings brought in this
10state to enforce rights arising from consumer transactions or extortionate extensions
11of credit, wherever made, but conduct, action or proceedings to recover collateral or
12goods subject to a motor vehicle consumer lease
shall be governed by the law of the
13state where the collateral is or goods subject to a motor vehicle consumer lease are
14located at the time of its recovery unless the collateral is or goods subject to a motor
15vehicle consumer lease are
owned by a Wisconsin resident, who has removed it the
16collateral or goods
from this state only for purposes of transportation to or use in the
17resident's employment or for temporary periods which do not exceed 15 days.
SB589, s. 51 18Section 51. 421.202 (6) of the statutes is amended to read:
SB589,19,2219 421.202 (6) Consumer credit transactions in which the amount financed
20exceeds $25,000, motor vehicle consumer leases in which the total lease obligation
21exceeds $25,000
or other consumer transactions in which the cash price exceeds
22$25,000;
SB589, s. 52 23Section 52. 421.202 (7) of the statutes is amended to read:
SB589,19,2424 421.202 (7) Transactions subject to ch. 428; or
SB589, s. 53 25Section 53. 421.202 (8) of the statutes is amended to read:
SB589,20,2
1421.202 (8) Transactions in securities accounts or securities transactions by or
2with a broker-dealer, as defined in s. 551.02 (3), licensed under ch. 551.; or
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