1995 WISCONSIN ACT 392
An Act to amend 101.615 (3), 101.654 (2) (a) 1., 101.654 (4) (a) and 101.654 (4) (b); and to create 101.654 (2m) of the statutes; relating to: the financial responsibility of persons who perform on one-family and 2-family dwellings work for which a building permit is required.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
101.615 (3) Sections 101.65 (1m) and (1r) and 101.654 apply to an application for a building permit to perform work on a dwelling filed on or after April 1, 1995, to perform work on a dwelling the initial construction of which was commenced before, on or after December 1, 1978.
101.654 (2) (a) 1. A bond endorsed by a surety company authorized to do business in this state of not less than $25,000 $5,000, conditioned upon the applicant complying with all applicable provisions of the one- and 2-family dwelling code and any ordinance enacted under s. 101.65 (1) (a) and as indemnity for any loss sustained by any person because of any violation by the applicant of that dwelling code or ordinance.
101.654 (2m) of the statutes is created to read:
101.654 (2m) If an applicant wishes to use a bond under sub. (2) (a) 1. of less than $25,000 to comply with sub. (2) (a), the applicant shall agree not to perform any work on a dwelling for which the estimated cost of completion is greater than the amount of the bond. The department shall indicate any restriction under this subsection on the certificate of financial responsibility issued under sub. (3).
101.654 (4) (a) A bond or insurance policy required under sub. (2) shall provide that the bond or policy may not be canceled by the person insured under the bond or policy or by the surety company or insurer except on 30 days' prior written notice served on the department in person or by certified 1st class mail or, if the cancellation is for nonpayment of premiums to the insurer, on 10 days' prior written notice served on the department in person or by 1st class mail. The person insured under the bond or policy shall file with the department proof to the satisfaction of the department of a replacement bond or replacement insurance within the 30-day notice period or 10-day notice period, whichever is applicable, and before the expiration of the bond or policy. The department shall suspend without prior notice or hearing the certificate of financial responsibility of a person who does not file satisfactory proof of a replacement bond or replacement insurance as required by this subsection.
101.654 (4) (b) A bond under sub. (2) (a) 1. shall be executed in the name of the state for the benefit of any person who sustains a loss as described in sub. (2) (a) 1. a result of the person insured under the bond not complying with an applicable provision of the one- and 2-family dwelling code or any ordinance enacted under s. 101.65 (1) (a), except that the aggregate liability of the surety to all persons may not exceed the amount of the bond.