October 16, 2001 - Introduced by Veterans and Military Affairs. Referred to
Committee on Veterans and Military Affairs.
AB571,1,2 1An Act to amend 45.53 (title); and to create 21.75 of the statutes; relating to:
2the rights of persons who are called into active state service.
Analysis by the Legislative Reference Bureau
Under current federal law, persons who are in active service in the U.S. armed
forces and their dependents are given certain protections related to lawsuits, leases,
obligations and contracts for the period that they are in active service. Generally,
these protections are provided under federal law only if the service in the military
materially affects the armed forces member's ability to meet the obligation. In most
cases, the armed forces member may waive the protections afforded by the law if he
or she does so in writing after entering the armed forces.
Under federal law, all interest on obligations incurred before entry into the
armed forces is capped at six percent for the duration of the military service. The
federal law tolls the running of all statutes of limitations during the period of active
service with respect to civil and administrative proceedings involving the service
member as either a plaintiff or a defendant. The federal law stays all civil actions
affecting the service member, including actions to repossess property and
garnishment actions. Under the federal law, if in a court action a default judgment
is requested, the person requesting the default judgment must submit an affidavit
regarding the military status of the opposing party, and the court is required to
appoint an attorney for the other party if he or she may be in military service. That
attorney may seek a stay of the proceedings under federal law. Federal law also
allows the reopening of a default judgment if that judgment was entered against a
service member during or with 30 days after his or her period of active service.

Under federal law, members of the U.S. armed forces and their dependents are
protected from eviction from their dwelling if the monthly rent does not exceed
$1200. In addition, the federal law allows a service member to terminate a lease
occupied as a dwelling or for professional, business, or agricultural purposes if the
lease was entered into before the service member was called into active service. In
this situation, the service member does not need to be materially affected to
terminate the lease. The federal law allows a court to stay the enforcement of
installment contracts, storage liens, and mortgage obligations.
This bill provides these same benefits to persons who are called into state
service either as part of the state national guard or as part of the state militia.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB571, s. 1 1Section 1. 21.75 of the statutes is created to read:
AB571,2,3 221.75 Soldiers' and sailors' relief act; state service. (1) Definitions. In
3this section:
AB571,2,84 (a) "Active state service" means active service for 30 days or more in the
5national guard or the state defense force under an order of the governor issued under
6this chapter or active service for 30 days or more in the national guard under 32 USC
7502
(f) or 506 that is not considered to be "service in the uniformed services," as
8defined in 38 USC 4303 (13).
AB571,2,99 (b) "Court" means a court of record.
AB571,2,1010 (c) "Department" means the department of military affairs.
AB571,2,1211 (d) "Service member" means a person who may be called into active state
12service.
AB571,3,213 (e) "Period of active state service" means the period beginning on the date on
14which the service member receives an order to enter active state service and ending

1on the date of the service member's release from active state service or death while
2in active state service.
AB571,3,7 3(2) Protection of persons secondarily liable. (a) If this section results in the
4stay or suspension of any obligation, liability, court action, order, writ, or judgment,
5the court that issued the stay or suspension may grant the same remedy to sureties,
6guarantors, endorsers, and others subject to the obligation, liability, court action,
7order, writ, or judgment.
AB571,3,138 (b) If a service member is the principal on a criminal bail bond and his or her
9active state service causes the surety upon the bond to be prevented from enforcing
10the attendance of the service member at court, the court shall not enforce the
11provisions of the bond during the service member's period of active state service and
12may either during or after the period of active service discharge the surety and
13exonerate the bail.
AB571,3,2214 (c) A surety, guarantor, endorser, or other person subject to the obligation,
15liability, court action, order, writ, or judgment under par. (a) or (b) may waive in
16writing the rights afforded by this subsection, except that the waiver is not valid
17unless the waiver is executed as an instrument separate from the obligation, liability,
18court action, order, writ, or judgment. The waiver under this paragraph is not valid
19after the beginning of the period of active state service if executed by a service
20member who subsequently is called into active state service. The waiver under this
21paragraph is not valid if executed by a dependent of a service member unless the
22waiver is executed during the period of active state service.
AB571,4,3 23(3) Effect on rights under a written agreement. This section does not prevent
24the modification, termination, or cancelation of any contract, lease, bailment, or
25secured obligation, or the repossession, retention, foreclosure, sale, or forfeiture of

1property that is security for any obligation or which has been purchased or received
2under a contract, lease, or bailment under a written agreement of the parties if that
3agreement is executed during or after the period of active state service.
AB571,4,7 4(4) Exercise of rights. No person may use the fact that a service member has
5applied for, or received, a stay, postponement, or suspension in the payment of a tax,
6fine, penalty, insurance premium, or other civil obligation or liability as the basis for
7doing any of the following:
AB571,4,108 (a) If the person is a lender, determining that the service member is unable to
9pay any such civil obligation or liability in accordance with the terms of the obligation
10or liability.
AB571,4,1411 (b) If the person is a creditor, denying or revoking any credit extended to the
12service member, changing the terms of a credit agreement to which the service
13member is a party, or refusing to grant credit to the service member in substantially
14the amount or on substantially the terms requested by the service member.
AB571,4,1715 (c) If the person is in the business of assembling or evaluating consumer credit
16information, making an adverse report on the creditworthiness of the service
17member.
AB571,4,1818 (d) If the person is an insurer, refusing to insure the service member.
AB571,5,10 19(5) Default judgments, affidavits, and attorney representation. (a) If, in any
20court action, there is a default of any appearance of the defendant, the plaintiff, when
21requesting a default judgment, shall file with the court an affidavit setting forth facts
22showing that the defendant is not in active state service. If the plaintiff is unable to
23file such an affidavit, the plaintiff shall, when requesting a default judgment, file an
24affidavit setting forth that the defendant is in active state service or that the plaintiff
25is unable to determine if the defendant is in active state service. If an affidavit is not

1filed showing that the defendant is not in active state service, a default judgment
2may not be entered without a court order. A court may not order the entry of a default
3judgment if the defendant is in active state service until the court has appointed an
4attorney to represent the defendant and protect the defendant's interests. Unless
5the court determines that the defendant is not in active state service, the court may
6require, as a condition of entering judgment, the plaintiff to file a bond to indemnify
7the defendant, if he or she is in active state service, against any loss or damage
8resulting from the judgment if any part of the judgment is later set aside. The court
9may make any other order as may be necessary to protect the interests of the
10defendant under this section.
AB571,5,1511 (b) If a judgment is rendered in a court action against a service member during
12the period of active state service or within 30 days after the end of that period of active
13state service, and it appears that the service member was prejudiced in making a
14defense by reason of his or her active state service, the court may reopen that
15judgment if all of the following conditions exist:
AB571,5,1716 1. The service member moves the court to reopen the judgment within 90 days
17after his or her period of active state service ends.
AB571,5,1818 2. The service member has a meritorious or legal defense to the action.
AB571,5,2119 (c) Vacating, setting aside, or reversing a judgment under this subsection does
20not impair any right or title acquired by a bona fide purchaser for value under the
21judgment.
AB571,5,2422 (d) Any person who shall make or use an affidavit required under this
23subsection that he or knows to be false shall be fined not more than $10,000 or
24imprisoned for not more than 9 months, or both.
AB571,6,7
1(6) Stay of action. During any stage of a court action in which a service
2member in active state service is involved as a party, or within 60 days after the end
3of the period of active state service, the court in which the action is pending may on
4its own motion, and shall, on application of the service member or some person acting
5on behalf of the service member, stay the action unless the court determines that the
6service member's ability to represent his or her interest in the action is not materially
7affected by reason of his or her active state service.
AB571,6,16 8(7) Stay or vacation of executions or attachments. In any court action that
9is commenced against a service member before or after entering active state service,
10or within 60 days after the period of active state service ends, the court may on its
11own motion, and shall, on application of the service member or some person acting
12on behalf of the service member, stay the execution of any judgment or order entered
13against the service member, or stay or vacate any attachment or garnishment
14regarding the service member's property, unless the court determines that the
15service member's ability to comply with the judgment or order is not materially
16affected by reason of his or her active state service.
AB571,6,20 17(8) Duration and terms of stays. (a) Any stay of any action, attachment,
18execution, or garnishment under this section may be ordered for the period of the
19active state service and 3 months after that period has ended, or for any part of that
20time.
AB571,6,2321 (b) Any stay under par. (a) may be subject to such terms as may be just,
22including the payment of installments in an amount and at the times that the court
23determines.
AB571,6,2524 (c) If the service member is a codefendant in an action, the plaintiff may, by
25leave of the court, proceed against the other codefendants.
AB571,7,7
1(9) Statutes of limitations. The period of active state service may not be
2included in computing any period for the bringing of any action or proceeding in any
3court or before any public agency, as defined in s. 36.54 (2) (a) 2., by or against a
4person in active state service or by or against his or her heirs, executors,
5administrators or assigns, whether the cause of action or proceeding or the right to
6bring the action or proceeding accrued before or during the period of active state
7service.
AB571,7,19 8(10) Maximum interest rate. Notwithstanding ss. 138.04, 138.09 (7) (b), (bm),
9(bn), and (bp), 138.12 (10) (a), 218.0101 to 218.0163, 422.201 (2), (3), (9), and (10s),
10422.205 (1), and 422.206 (2), no obligation or liability bearing interest at a rate in
11excess of 6 percent per year incurred by a service member in active state service
12before his or her entry into that service may, during any part of the period of active
13state service, bear interest in excess of 6 percent per year except by court order. If,
14upon application by an obligee, a court determines that the ability of the service
15member to pay interest upon the obligation or liability at a rate in excess of 6 percent
16per year is not materially affected by reason of his or her active state service, the
17court may make any order that is just. In this subsection, "interest" includes service
18charges, renewal charges, fees, or other charges, other than insurance, in respect to
19the obligation or liability.
AB571,7,24 20(11) Eviction stay. (a) No eviction may be made during the period of active
21state service in respect to any premises for which the agreed rent does not exceed
22$1,200 per month, occupied chiefly for dwelling purposes by the spouse, children, or
23other dependents of a service member who is in active state service, except upon
24order of a court in an action affecting the right of possession.
AB571,8,8
1(b) In an action for eviction under par. (a), the court may on its own motion, and
2shall, on application of the service member or some person acting on behalf of the
3service member, stay the proceedings for not longer than 3 months unless the court
4determines that the ability of the tenant to pay the agreed rent is not materially
5affected by the active state service. The court may make any other order in the
6eviction action as it considers necessary and just. If a stay or order is issued under
7this paragraph, the court may, upon the request of the owner of the premises, make
8any other order as may be applicable to conserve the interests of all of the parties.
AB571,8,119 (c) Any person who knowingly takes part in any eviction prohibited under par.
10(a) except as provided in this subsection, or attempts to do so, shall be fined not more
11than $10,000 or imprisoned not more than 9 months, or both.
AB571,8,16 12(12) Action to enforce obligation secured by mortgage. (a) In this
13subsection, "obligation" means an obligation of a service member in active state
14service that was incurred before the service member's period of active state service
15began and that is secured by a mortgage, deed of trust, or other security in the nature
16of a mortgage on real or personal property that is owned by the service member.
AB571,8,2417 (b) If a court action against a service member is commenced during the service
18member's period of active state service to enforce an obligation for nonpayment of
19any sum due or for any other breach of terms occurring before or during the service
20member's period of active state service, the court shall hold a hearing on the matter.
21Unless the court determines that the service member's ability to comply with the
22terms of the obligation is not materially affected by reason of his or her active state
23service, the court on its own motion may, or upon application of the service member
24or another person on his or her behalf shall, do any of the following:
AB571,8,2525 1. Stay the action as provided in this section.
AB571,9,2
12. Make such other disposition of the case as the court determines is equitable
2to the interests of all parties.
AB571,9,93 (c) 1. Notwithstanding the times provided in ss. 846.10, 846.101, 846.102, and
4846.103 for sales of real property, no foreclosure, sale, or seizure of property for
5nonpayment of any sum due or for any other breach of terms is valid if it occurs
6during or within 3 months after the service member's period of active state service,
7unless the court ordered the foreclosure, sale, or seizure of property before the
8beginning of the service member's period of active state service and approves the
9foreclosure, sale, or seizure after it occurs.
AB571,9,1210 2. Any person who knowingly causes a foreclosure, sale, or seizure of property
11that is invalid under subd. 1. shall be fined not more than $10,000 or imprisoned for
12not more than 9 months, or both.
AB571,9,19 13(13) Personal property contracts. When an action to resume possession of
14personal property, or to rescind or terminate a contract for the purchase of personal
15property, has been stayed under this section, the court may appoint 3 disinterested
16persons to appraise the property. Based upon the report of the appraisers, and unless
17undue hardship would result to the dependents of the service member in active state
18service, the court may order that a sum be paid to the service member as a condition
19of resuming possession of the property or rescinding or terminating the contract.
AB571,9,21 20(14) Termination of leases by lessees. (a) This subsection applies to a lease
21to which all of the following apply:
AB571,9,2322 1. The lease was executed by or on behalf of a service member who entered
23active state service after the lease was executed.
AB571,10,3
12. The lease covers premises that are occupied for dwelling, professional,
2business, agricultural, or similar purposes by the service member, or the service
3member and his or her dependents.
AB571,10,84 (b) A lease to which this subsection applies may be terminated by the service
5member at any time after the beginning of the service member's period of active state
6service by giving notice in writing by personal delivery or first class mail to the
7landlord or the person who has been receiving rent or managing the property as the
8landlord's agent.
AB571,10,129 (c) If the lease provides for monthly payment of rent, termination shall be
10effective 30 days after the first date on which the next rental payment is due and
11payable after the date on which the notice is delivered or mailed. In any other case,
12all of the following apply:
AB571,10,1413 1. Termination shall be effective on the last day of the month after the month
14in which the notice was delivered or mailed.
AB571,10,1615 2. Any unpaid rent for the period preceding termination shall be computed on
16a prorated basis.
AB571,10,1817 3. The landlord or the landlord's agent shall refund to the service member any
18rent paid in advance that applies to the period after termination.
AB571,10,2219 (d) Upon application of a landlord after receiving notice under this subsection
20and before the lease termination date provided for in this subsection, a court may
21make such modifications to or restrictions on the relief granted in this subsection as
22the court determines are appropriate under the circumstances.
AB571,11,423 (e) No person may knowingly seize or retain personal property belonging to a
24service member who lawfully terminates a lease under this subsection, or in any
25manner interfere with the removal of the service member's personal property from

1the premises covered by the lease, for the purpose of subjecting the personal property
2to a claim for rent accruing after the termination of the lease. Any person who
3violates this paragraph shall be fined not more than $10,000 or imprisoned for not
4more than 9 months, or both.
AB571,11,65 (f) Section 704.29 does not apply to the termination of a lease as provided in this
6subsection.
AB571,11,11 7(15) Storage liens. (a) Notwithstanding ss. 704.05 (5) and 704.90, no person
8may enforce a lien for storage of any household goods, furniture, or personal effects
9of a service member during the period in which the service member is in military
10service and for 90 days after the member's completion of military service, except as
11permitted by a court order under sub. (2).
AB571,11,2012 (b) No person may exercise any right to foreclose or enforce a lien for the storage
13of household goods, furniture, or personal effects of a service member during the
14service member's period of active state service and for 3 months after that period
15ends except upon an order of the court. In an action under this paragraph, the court,
16after a hearing, may on its own motion, and shall, on application of the service
17member or some person acting on behalf of the service member, stay the proceeding
18or make such other order as may be equitable to conserve the interests of all parties,
19unless the court determines that the ability of the service member to pay storage
20charges due is not materially affected by his or her active state service.
AB571,11,2221 (c) Any person who violates par. (a) may be fined not more than $10,000 or
22imprisoned for not more than 9 months, or both.
AB571,12,2 23(16) Dependent benefits. Upon application to the court, a dependent of a
24service member is entitled to the same benefits given to a service member while in
25active state service, unless the court determines that the ability of the dependent to

1comply with the terms of an obligation, contract, lease, or bailment is not materially
2impaired by reason of the service member's active state service.
AB571,12,7 3(17) Transfers or acquisitions. If a court determines that any interest,
4property, or contract has been transferred or acquired with the intent to delay the
5enforcement of a civil right by taking advantage of this section, the court shall enter
6any judgment or make any order that is just, notwithstanding the provisions of this
7section.
AB571,12,11 8(18) Certificate of service; person reported missing. (a) In any action or
9proceeding under this section, a certificate signed by the adjutant general or a person
10designated by the adjutant general as to the period of active service of a service
11member shall be prima facie evidence as to any of the following facts:
AB571,12,1212 1. That the service member named has been in active state service.
AB571,12,1413 2. The period of the active state service, including the date the service member
14was ordered into active state service.
AB571,12,1615 3. The monthly pay received by the service member in active state service at
16the time the certificate was issued.
AB571,12,1817 4. If the service member died while in active state service, the date and the
18place where he or she died.
AB571,12,2319 (b) The adjutant general shall provide the certificate under par. (a) upon
20request of the service member or of a person acting on behalf of the service member
21or his or her estate, and any certificate so provided shall be prima facie evidence of
22the facts stated in the certificate and of the authority of the signer to issue the
23certificate.
AB571,13,324 (c) When a service member in active state service has been reported missing
25to the department, the service member shall be presumed to continue in active state

1service until accounted for, and no period limited under this section which begins or
2ends with the death of a service member shall begin or end until the death of the
3service member is determined by the department or by a court.
AB571,13,6 4(19) Interlocutory orders. A court may revoke, modify, or extend any
5interlocutory order made by the court under this section, upon the court's own motion
6or on the motion of a party, upon such notice to the parties as the court may require.
AB571,13,14 7(20) Stay of enforcement of obligations or liabilities. (a) A service member
8may, at any time during his or her period of active state service, or within 6 months
9after that service ends, apply to a court for relief with respect to any obligation or
10liability incurred by the service member before his or her period of active state
11service. The court, after appropriate notice and hearing, may grant the following
12relief unless the court determines that the ability of the service member to comply
13with the terms of the obligation or liability has not been materially affected by his
14or her state active service:
AB571,14,315 1. In the case of an obligation payable in installments under a contract for the
16purchase of real estate, or secured by a mortgage upon real estate, a stay of the
17enforcement of the obligation during the period of active state service and, from the
18date of the end of the period of active state service or from the date of requesting the
19relief if made after the service is ended, for a period equal to the period of the
20remaining life of the installment contract or instrument evidencing the obligation
21plus a period of time equal to the period of active state service, or any part of that
22combined period. The court may issue a stay under this paragraph if the service
23member makes payments of the balance of the principal and accumulated interest
24due and unpaid at the date of the end of the period of active state service or from the
25date of requesting the relief, whichever is appropriate, in equal installments during

1the combined period and at the rate of interest as is prescribed in the contract or
2instrument evidencing the obligation for installments paid when due. The court may
3order other terms under this paragraph as are just.
AB571,14,144 2. In the case of any other obligation or liability, a stay of the enforcement of
5that obligation or liability during the service member's period of active state service
6and, from the date of the end of the period of active state service or from the date of
7requesting the relief if made after the service is ended, for a period equal to the period
8of active state service or any part of that period. The court may issue a stay under
9this paragraph if the service member makes payments of the balance of the principal
10and accumulated interest due and unpaid at the date of the end of the period of active
11state service or from the date of requesting the relief, whichever is appropriate, in
12equal installments during the extended period and at the rate of interest as is
13prescribed for the obligation or liability when due. The court may order other terms
14under this paragraph as are just.
AB571,14,1815 (b) When a court has granted a stay under this subsection, no penalty may
16accrue during the period that the terms and conditions of the stay are complied with
17by reason of the failure to comply with the terms or conditions of the obligation or
18liability in respect to which the stay was granted.
AB571,14,24 19(21) Power of attorney extension for missing service member. (a) A power
20of attorney that was duly executed by a service member that is reported missing to
21the department and that designates the service member's spouse, parent or named
22relative as his or her attorney-in-fact for specified, or all, purposes, and that expires
23after the service member is reported missing, is extended for the period that the
24service member is missing.
AB571,15,5
1(b) No power of attorney executed after the effective date of this subsection ....
2[revisor inserts date], by a service member in active state service may be extended
3under par. (a) if the document creating the power of attorney clearly indicates that
4the power granted expires on the date specified even if the service member, after the
5date of execution of the document, is reported missing to the department.
AB571,15,16 6(22) Professional liability protection. (a) 1. If a service member who is called
7into active state service has coverage under a professional liability insurance policy
8that does not cover claims filed with respect to the service member during the period
9of active state service unless the premiums are paid for the coverage for that period,
10the insurer that provides the coverage shall suspend the service member's coverage
11under the policy upon receipt of a written request from the service member to do so.
12The insurer may not require that premiums be paid for the suspended coverage. The
13insurer shall refund any premium amount already paid for coverage of the service
14member for the period after the coverage is suspended or shall, at the option of the
15service member, apply such amount to payment of any premium that becomes due
16upon reinstatement of the coverage.
AB571,15,2017 2. Subdivision 1. does not require the suspension of coverage for any other
18person who has coverage under the policy and who is not a service member called into
19active state service or relieve any person of the obligation to pay premiums for
20coverage that is not required to be suspended under subd. 1.
AB571,15,2521 (b) 1. Subject to subd. 2., an insurer that suspends coverage under par. (a) is
22not liable with respect to any claim that is based on the professional conduct,
23including the failure to take an action in a professional capacity, of the service
24member that occurs while the service member's professional liability coverage is
25suspended under this subsection.
AB571,16,6
12. For purposes of subd. 1., a claim that is based on the failure of a professional
2to make adequate provision for the care of patients during the professional's period
3of active state service shall be considered to be based on an action or the failure to
4take action before the beginning of the period during which coverage is suspended
5under this subsection, unless professional services were provided after the date on
6which the suspension of coverage began.
AB571,16,147 (c) 1. If a service member whose professional liability insurance coverage is
8suspended under par. (a) transmits to the insurer, within 30 days after the date on
9which the service member is released from active state service, a written request for
10reinstatement of his or her professional liability insurance coverage, the insurer
11must reinstate the coverage as of the date on which the insurer receives the written
12request. The period for which the coverage must be reinstated may not be less than
13the balance of the period for which the coverage would have continued under the
14policy had the coverage not been suspended.
AB571,16,2315 2. Upon receipt of the written request under subd. 1., the insurer shall notify
16the service member of the due date for paying the premium for the insurance, and
17the service member shall pay the premium within 30 days after receiving the notice.
18For the minimum period of reinstatement required under subd. 1., the insurer may
19not increase the amount of the premium over the amount that was chargeable before
20the suspension of the coverage for that period, except to the extent of any general
21increase in premiums charged by the insurer for the same professional liability
22coverage for persons similarly covered by such insurance during the period of the
23suspension.
AB571,17,324 (d) 1. Any action or proceeding in any court or before any public agency, as
25defined in s. 36.54 (2) (a) 2., based on the alleged professional negligence or other

1professional liability of a service member whose professional liability insurance
2coverage has been suspended under par. (a) shall be stayed until the end of the period
3of suspension if all of the following apply:
AB571,17,44 a. The action or proceeding was commenced during the period of suspension.
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