AB184: Bill Text

LRB-1240/1

RJM:cjs:rs

2003 - 2004 LEGISLATURE

2003 Assembly BILL 184

March 21, 2003 - Introduced by Representatives Gronemus, McCormick, Krawczyk, Plouff, Turner, Ott, J. Lehman, Van Roy, Ainsworth, Albers, Bies, Jeskewitz, Seratti, Petrowski, Loeffelholz and Musser, cosponsored by Senator Brown. Referred to Committee on Financial Institutions.

AB184,1,2 An Act to create 100.185 of the statutes; relating to: documentation of agricultural credit transactions and granting rule-making authority.

Analysis by the Legislative Reference Bureau

With certain exceptions, the Wisconsin Consumer Act (consumer act) currently requires a person who extends credit to a consumer to give the consumer, before any payment is due, a copy of each document evidencing the consumer's obligation under the transaction. With limited exceptions, a transaction that is entered into primarily for an agricultural purpose (agricultural credit transaction) is exempt from the requirements of the consumer act.

This bill requires every document that is signed by a person and that evidences the person's obligation to pay under an agricultural credit transaction in an amount of $20,000 or more to be executed in duplicate original copies. The bill also requires the person that extends the agricultural credit to provide one of the duplicate original copies to the person that obtains the credit.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB184, s. 1 Section 1. 100.185 of the statutes is created to read:

AB184,1,5 100.185 Documentation of agricultural credit transactions. (1) Definitions. In this section:

AB184,2,3 (a) "Agricultural purpose" means a purpose related to the production, harvest, exhibition, marketing, transportation, processing, or manufacture of farm products by a person that cultivates, plants, propagates, or nurtures those farm products.

AB184,2,5 (b) "Credit" means the right to defer payment of debt, to incur debt and defer its payment, or to purchase goods, services, or interests in land on a time price basis.

AB184,2,9 (c) "Credit transaction" means a transaction under which real or personal property, services, or money is acquired by a person, on credit, and under which the person is required to pay a charge for the credit or is required to pay his or her obligation in installments.

AB184,2,11 (d) "Farm creditor" means a person that extends credit to another person that obtains the credit primarily for an agricultural purpose.

AB184,2,15 (e) "Farm product" means an agricultural, horticultural, viticultural, dairy, or forest product; livestock; wildlife; poultry; bees; fish; shellfish; a product raised or produced on a farm; and any processed or manufactured product that is derived from any of these items.

AB184,2,25 (2) Documentation required. A farm creditor shall ensure that each document that is signed by a person and that evidences the person's obligation to pay under a credit transaction in an amount of $20,000 or more that the person enters into primarily for an agricultural purpose is executed in duplicate original copies. The duplicate original copies shall consist of a signed copy and an identical copy containing the impression of all signatures on the signed copy. Except as provided under sub. (3), the identical copy shall be a noncarbon reproduction of the signed copy, produced by the transfer of images in substantially the same manner as is used to make a carbon copy, or shall be a carbon copy. The farm creditor shall provide the person that receives the credit with one of the duplicate original copies.

AB184,3,3 (3) Rules. The department may, by rule, authorize the production of duplicate original copies as required under sub. (2) by any method that is at least as effective at preventing fraud as the methods specified under sub. (2).

AB184, s. 2 Section 2. Initial applicability.

AB184,3,6 (1) This act first applies to transactions entered into on the effective date of this subsection.

AB184,3,7 (End)