AB773,2 12Section 2. 138.04 of the statutes is amended to read:
AB773,8,18 13138.04 Legal rate. The rate of interest upon the loan or forbearance of any
14money, goods, or things in action shall be $5 upon the $100 for one year and according
15to that rate for a greater or less sum or for a longer or a shorter time; but parties may
16contract for the payment and receipt of a rate of interest not exceeding the rate
17allowed in ss. 100.56 (2) (a), 138.041 to 138.056, 138.09 to 138.14, 218.0101 to
18218.0163, or 422.201, in which case such rate shall be clearly expressed in writing.
AB773,3 19Section 3. 177.30 (6) of the statutes is created to read:
AB773,8,2420 177.30 (6) The administrator may not enter into a contract or other agreement
21to allow any person to engage in an audit on a contingent fee basis of another person's
22documents or records as part of an effort to administer this chapter or to purchase
23information or documents arising from the audit, except that this subsection does not
24apply to information received from the federal government.
AB773,4 25Section 4. 218.0125 (7) of the statutes is amended to read:
AB773,9,14
1218.0125 (7) A claim made by a franchised motor vehicle dealer for
2compensation under this section shall be either approved or disapproved within 30
3days after the claim is submitted to the manufacturer, importer or distributor in the
4manner and on the forms the manufacturer, importer or distributor reasonably
5prescribes. An approved claim shall be paid within 30 days after its approval. If a
6claim is not specifically disapproved in writing or by electronic transmission within
730 days after the date on which the manufacturer, importer or distributor receives
8it, the claim shall be considered to be approved and payment shall follow within 30
9days. A manufacturer, importer or distributor retains the right to audit claims for
10a period of one year after the date on which the claim is paid and to charge back any
11amounts paid on claims that are false or unsubstantiated. If there is evidence of
12fraud, this subsection does not limit the right of the manufacturer to audit for longer
13periods and charge back for any fraudulent claim, subject to the limitations period
14under s. 893.93 (1) (1m) (b).
AB773,5 15Section 5. 218.0126 of the statutes is amended to read:
AB773,9,25 16218.0126 Promotional allowances. A claim made by a franchised motor
17vehicle dealer for promotional allowances or other incentive payments shall be either
18approved or disapproved within 30 days after the claim is submitted to the
19manufacturer, importer or distributor in the manner and on the forms the
20manufacturer, importer or distributor reasonably prescribes. An approved claim
21shall be paid within 30 days after its approval. If a claim is not specifically
22disapproved in writing or by electronic transmission within 30 days after the date
23on which the manufacturer, importer or distributor receives it, the claim shall be
24considered to be approved and payment shall follow within 30 days after approval.
25A manufacturer, importer or distributor retains the right to audit a claim for a period

1of 2 years after the date on which the claim is paid and to charge back any amounts
2paid on claims that are false or unsubstantiated. If there is evidence of fraud, this
3section does not limit the right of the manufacturer to audit for longer periods and
4charge back for any fraudulent claim, subject to the limitations period under s.
5893.93 (1) (1m) (b).
AB773,6 6Section 6. 426.110 (4m) of the statutes is created to read:
AB773,10,87 426.110 (4m) Actions commended under this section shall be conducted in
8accordance with the procedures set forth in s. 803.08.
AB773,7 9Section 7. 426.110 (5) to (13) of the statutes are repealed.
AB773,8 10Section 8. 426.110 (16) of the statutes is amended to read:
AB773,10,1311 426.110 (16) The administrator, whether or not a party to an action, shall bear
12the costs of notice except that the administrator may recover such costs from the
13defendant as provided in sub. (11).
AB773,9 14Section 9. 628.46 (1) of the statutes is amended to read:
AB773,11,715 628.46 (1) Unless otherwise provided by law, an insurer shall promptly pay
16every insurance claim. A claim shall be overdue if not paid within 30 days after the
17insurer is furnished written notice of the fact of a covered loss and of the amount of
18the loss. If such written notice is not furnished to the insurer as to the entire claim,
19any partial amount supported by written notice is overdue if not paid within 30 days
20after such written notice is furnished to the insurer. Any part or all of the remainder
21of the claim that is subsequently supported by written notice is overdue if not paid
22within 30 days after written notice is furnished to the insurer. Any payment shall
23not be deemed overdue when the insurer has reasonable proof to establish that the
24insurer is not responsible for the payment, notwithstanding that written notice has
25been furnished to the insurer. For the purpose of calculating the extent to which any

1claim is overdue, payment shall be treated as being made on the date a draft or other
2valid instrument which is equivalent to payment was placed in the U.S. mail in a
3properly addressed, postpaid envelope, or, if not so posted, on the date of delivery.
4All overdue payments shall bear simple interest at the annual bank prime loan rate
5of 12 percent per year as reported by the federal reserve board in federal reserve
6statistical release H. 15 in effect on January 1 of the year in which the insurer is
7furnished written notice of the fact of a covered loss, plus 1 percent
.
AB773,10 8Section 10. 801.01 (2) of the statutes is amended to read:
AB773,11,149 801.01 (2) Scope. Chapters 801 to 847 govern procedure and practice in circuit
10courts of this state in all civil actions and special proceedings whether cognizable as
11cases at law, in equity or of statutory origin except where different procedure is
12prescribed by statute or rule. Chapters 801 to 847 shall be construed , administered,
13and employed by the court and the parties
to secure the just, speedy and inexpensive
14determination of every action and proceeding.
AB773,11 15Section 11. 802.06 (1) of the statutes is renumbered 802.06 (1) (a).
AB773,12 16Section 12. 802.06 (1) (b) of the statutes is created to read:
AB773,11,2117 802.06 (1) (b) Upon the filing of a motion to dismiss under sub. (2) (a) 6., a
18motion for judgment on the pleadings under sub. (3), or a motion for more definite
19statement under sub. (5), all discovery and other proceedings shall be stayed during
20the pendency of the motion unless the court finds good cause upon the motion of any
21party that particularized discovery is necessary.
AB773,13 22Section 13. 803.08 (1) of the statutes, as affected by Supreme Court Order
2315-06, is renumbered 803.08 (1) (intro.) and amended to read:
AB773,12,624 803.08 (1) Class actions may be maintained action prerequisites . (intro.)
25When the question before the court is one of a common or general interest of many

1persons or when the parties are very numerous and it may be impracticable to bring
2them all before the court, one
One or more members of a class may sue or defend for
3the benefit of the whole, except that no claim may be maintained against the state
4or any other party under this section if the relief sought includes the refund of or
5damages associated with a tax administered by the state.
be sued as representative
6parties on behalf of all members only if all of the following apply:
AB773,14 7Section 14. 803.08 (1) (a) to (e) of the statutes are created to read:
AB773,12,98 803.08 (1) (a) The class is so numerous that joinder of all members is
9impracticable.
AB773,12,1010 (b) There are questions of law or fact common to the class.
AB773,12,1211 (c) The claims or defenses and type and scope of injury of the representative
12parties are typical of the claims or defenses and type and scope of injury of the class.
AB773,12,1413 (d) The representative parties will fairly and adequately protect the interests
14of the class.
AB773,12,1715 (e) The members of the class are objectively verifiable by reliable and feasible
16means without individual testimony from putative class members and without
17substantial administrative burden.
AB773,15 18Section 15. 803.08 (2) of the statutes, as created by Supreme Court Order
1915-06, is renumbered 803.08 (11).
AB773,16 20Section 16. 803.08 (3) to (10) of the statutes are created to read:
AB773,12,2221 803.08 (3) Types of class actions. A class action may be maintained if sub. (1)
22is satisfied and if the court finds that any of the following applies:
AB773,12,2423 (a) Prosecuting separate actions by or against individual class members would
24create a risk of one of the following:
AB773,13,3
11. Inconsistent or varying adjudications with respect to individual class
2members that would establish incompatible standards of conduct for the party
3opposing the class.
AB773,13,74 2. Adjudications with respect to individual class members that, as a practical
5matter, would be dispositive of the interests of the other members who were not a
6party to the individual adjudications or would substantially impair or impede
7another member's ability to protect his or her interests.
AB773,13,108 (b) The party opposing the class has acted or refused to act on grounds that
9apply generally to the class, so that final injunctive relief or corresponding
10declaratory relief is appropriate respecting the class as a whole.
AB773,13,1511 (c) The court finds that the questions of law or fact common to class members
12predominate over any questions affecting only individual members, and that a class
13action is superior to other available methods for fairly and efficiently adjudicating
14the controversy. In making this determination, the court shall consider all of the
15following factors:
AB773,13,1716 1. The class members' interests in individually controlling the prosecution or
17defense of separate actions.
AB773,13,1918 2. The extent and nature of any litigation concerning the controversy already
19begun by or against class members.
AB773,13,2120 3. The desirability of concentrating the litigation of the claims in the particular
21forum.
AB773,13,2222 4. The likely difficulties in managing a class action.
AB773,13,25 23(4) Certification order. (a) Time to issue. At an early practicable time after
24a person sues or is sued as a class representative, the court shall determine by order
25whether to certify the action as a class action.
AB773,14,3
1(b) Defining the class; appointing class counsel. An order granting class
2certification shall define the class, shall identify the class claims, issues, or defenses,
3and shall appoint class counsel under sub. (13).
AB773,14,54 (c) Altering or amending the order. The order granting or denying class
5certification may be altered or amended before final judgment.
AB773,14,7 6(5) Notice. (a) For any class certified under sub. (3) (a) or (b), the court may
7direct appropriate notice to the class.
AB773,14,128 (b) For any class certified under sub. (3) (c), the court shall direct to class
9members the best notice that is practicable under the circumstances, including
10individual notice to all members who can be identified through reasonable effort.
11The notice shall state clearly and concisely in plain, easily understood language, all
12of the following:
AB773,14,1313 1. The nature of the action.
AB773,14,1414 2. The definition of the class certified.
AB773,14,1515 3. The class claims, issues, or defenses.
AB773,14,1716 4. That a class member may enter an appearance through an attorney if the
17member so desires.
AB773,14,1918 5. That the court will exclude from the class any member who requests
19exclusion.
AB773,14,2020 6. The time and manner for requesting exclusion from the class.
AB773,14,2121 7. The binding effect of a class judgment on members under sub. (6).
AB773,14,23 22(6) Judgment. Whether favorable or unfavorable to the class, the judgment in
23a class action shall do all of the following:
AB773,14,2524 (a) For any class certified under sub. (3) (a) or (b), include and describe those
25persons who the court finds to be class members.
AB773,15,3
1(b) For any class certified under sub. (3) (c), include and specify or describe the
2persons to whom the court directed notice under sub. (5) who have not requested
3exclusion and who the court finds to be class members.
AB773,15,6 4(7) Particular issues. Notwithstanding ss. 805.05 (2) and 805.09 (2), when
5appropriate, an action may be brought or maintained as a class action with respect
6to particular issues.
AB773,15,8 7(8) Subclasses. When appropriate, a class may be divided into subclasses that
8are each treated as a class under this section.
AB773,15,10 9(9) Conducting the action. (a) In conducting an action under this section, the
10court may issue orders for any of the following purposes:
AB773,15,1211 1. To determine the course of proceedings or to prescribe measures to prevent
12undue repetition or complication in presenting evidence or argument.
AB773,15,1413 2. In order to protect class members and fairly conduct the action, to require
14that appropriate notice be given to some or all class members of any of the following:
AB773,15,1515 a. Any step in the action.
AB773,15,1616 b. The proposed extent of the judgment.
AB773,15,1917 c. The members' opportunity to signify whether they consider the
18representation fair and adequate, to intervene and present claims or defenses, or to
19otherwise participate in the action.
AB773,15,2020 3. To impose conditions on the representative parties or on intervenors.
AB773,15,2321 4. To require that the pleadings be amended to eliminate allegations regarding
22the representation of absent persons and to require that the action proceed
23accordingly.
AB773,15,2424 5. To deal with similar procedural matters.
AB773,16,2
1(b) An order under par. (a) may be altered or amended from time to time and
2may be combined with an order under s. 802.10.
AB773,16,6 3(10) Settlement, voluntary dismissal, or compromise. The claims, issues, or
4defenses of a certified class may be settled, voluntarily dismissed, or compromised
5only with the court's approval. All of the following procedures apply to a proposed
6settlement, voluntary dismissal, or compromise:
AB773,16,87 (a) The parties seeking approval shall file a statement identifying any
8agreement made in connection with the proposal.
AB773,16,109 (b) The court shall direct notice in a reasonable manner to all class members
10who would be bound by the proposal.
AB773,16,1211 (c) If the proposal would bind class members, the court may approve it only if
12it finds after a hearing that the proposal is fair, reasonable, and adequate.
AB773,16,1613 (d) If the class action was previously certified under sub. (3) (c), the court may
14refuse to approve a settlement unless it affords a new opportunity to request
15exclusion to individual class members who had an earlier opportunity to request
16exclusion but did not do so.
AB773,16,1917 (e) Any class member may object to the proposal if it requires court approval
18under this subsection, and the objection may be withdrawn only with the court's
19approval.
AB773,17 20Section 17. 803.08 (12) to (15) of the statutes are created to read:
AB773,17,321 803.08 (12) Interlocutory appeal of class certification. (a) When
22practicable after the commencement of an action brought as a class action, the court
23shall determine by order whether it is to be so maintained. If the court finds that the
24action should be maintained as a class action, it shall certify the action accordingly
25on the basis of a written decision setting forth all reasons why the action may be

1maintained and describing all evidence in support of the determination. An order
2under this subsection may be altered, amended, or withdrawn at any time before the
3decision on the merits. The court may direct appropriate notice to the class.
AB773,17,104 (b) An appellate court shall hear an appeal of an order granting or denying class
5action certification, or denying a motion to decertify a class action, if a notice of
6appeal is filed within 14 days after entry of the order. During the pendency of an
7appeal under this subsection, all discovery and other proceedings shall be stayed,
8except that the trial court shall retain sufficient jurisdiction over the case to consider
9and implement a settlement of the action if a settlement is reached between the
10parties.
AB773,17,13 11(13) Class counsel. (a) Unless otherwise provided by law, a court that certifies
12a class shall appoint class counsel. In appointing class counsel, the court shall
13consider all of the following:
AB773,17,1514 1. The work that counsel has done in identifying or investigating potential
15claims in the action.
AB773,17,1716 2. Counsel's experience in handling class actions, other complex litigation, and
17the types of claims asserted in the action.
AB773,17,1818 3. Counsel's knowledge of the applicable law.
AB773,17,1919 4. The resources that counsel will commit to representing the class.
AB773,17,2020 (b) In appointing class counsel, the court may do any of the following:
AB773,17,2221 1. Consider any other matter pertinent to counsel's ability to fairly and
22adequately represent the interests of the class.
AB773,17,2423 2. Order potential class counsel to provide information on any subject pertinent
24to the appointment and to propose terms for attorney's fees and nontaxable costs.
AB773,18,2
13. Include in the appointing order provisions about the award of attorney's fees
2or nontaxable costs under sub. (14).
AB773,18,33 4. Issue further orders in connection with the appointment.
AB773,18,54 (c) Class counsel must fairly and adequately represent the interests of the
5class.
AB773,18,96 (d) When one applicant seeks appointment as class counsel, the court may
7appoint that applicant only if the applicant is found to be adequate under pars. (a)
8and (c). If more than one adequate applicant seeks appointment, the court shall
9appoint the applicant best able to represent the interests of the class.
AB773,18,1110 (e) The court may designate interim counsel to act on behalf of a putative class
11before determining whether to certify the action as a class action.
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