LRB-2450/1
CTS:wlj:rs
2005 - 2006 LEGISLATURE
March 14, 2006 - Introduced by Representatives Kreuser, Turner, Zepnick and
Berceau. Referred to Committee on Small Business.
AB1118,1,2
1An Act to create 134.49 of the statutes;
relating to: renewals and extensions
2of business contracts.
Analysis by the Legislative Reference Bureau
Under current law, if a landlord-tenant lease provides that the lease will be
automatically renewed or extended unless the tenant or landlord gives notice to the
contrary, that provision is not enforceable against the tenant unless the landlord
gives the tenant a written reminder of that provision at least 15 but not more than
30 days before the notice to terminate the lease is due. This bill creates a similar
limitation for certain contracts to lease business equipment or to provide business
services. Under the bill, the reminder notice must contain the deadline for declining
renewal or extension and the steps the customer must take to decline renewal or
extension. The bill also requires that the reminder disclose any price increases that
will apply after renewal or extension. The bill does not apply to contracts for
employment or to contracts to provide business services or to lease business
equipment to this state or to the United States.
Current law also specifies the methods a landlord may use to provide the
reminder notice. This bill specifies that a provider of business services or lessor of
business equipment may give notice to a purchaser of business services or lessee of
business equipment (customer) by sending the notice by registered or certified mail
to the customer's last-known address.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1118, s. 1
1Section
1. 134.49 of the statutes is created to read:
AB1118,2,3
2134.49 Renewals and extensions of business contracts. (1) Definitions. 3In this section:
AB1118,2,64
(a) "Business contract" means a contract entered into for the lease of business
5equipment or for providing business services, except that "business contract" does
6not include a contract for employment.
AB1118,2,97
(c) "Customer" means the lessee under a business contract that is entered into
8for the lease of business equipment or the purchaser under a business contract that
9is entered into for the purchase of business services.
AB1118,2,1110
(d) "Seller" means the provider of a business service or the lessor of business
11equipment under a business contract.
AB1118,2,17
12(2) Notice required. If a business contract provides that the contract will be
13automatically renewed or extended unless the customer declines renewal or
14extension, the provision is not enforceable against the customer unless the seller, at
15least 15 days but not more than 30 days before the deadline for the customer to
16decline renewal or extension, provides a written notice to the customer containing
17all of the following:
AB1118,2,1918
(a) A statement that the contract will be renewed or extended unless the
19customer declines renewal or extension.
AB1118,2,2020
(b) The deadline for the customer to decline renewal or extension.
AB1118,2,2221
(c) A description of any increase in charges to the customer that will apply after
22renewal or extension.
AB1118,2,2423
(d) A description of action that the customer must take to decline renewal or
24extension.
AB1118,3,4
1(3) Manner of giving notice. A seller or a person acting on behalf of the seller
2shall give the written notice required under sub. (2) by mailing a copy of the notice
3by registered or certified mail to the customer at the customer's last-known business
4address.
AB1118,3,6
5(4) Exception. This section does not apply to a contract to provide business
6services or to lease business equipment to this state or to the United States.
AB1118,3,108
(1) This act first applies to contracts for the lease of business equipment or for
9providing business services that are entered into, modified, or renewed on the
10effective date of this subsection.
AB1118,3,1312
(1) This act takes effect on the first day of the 7th month beginning after
13publication.
