LRB-4442/3
PJK&RPN:kmg:km
1995 - 1996 LEGISLATURE
March 18, 1996 - Introduced by Representatives Grothman, Albers, Duff,
Goetsch, Ladwig, F. Lasee, Lazich, Olsen, Schneiders, Vrakas, Walker,
Ward, Wasserman, Ziegelbauer and Zukowski, cosponsored by Senators
Rosenzweig and Petak. Referred to Committee on Housing.
AB1038,1,7
1An Act to renumber chapter 704;
to amend 100.20 (5), 100.20 (6), 100.26 (3),
2100.26 (6), 704.05 (5) (a) (intro.), 757.69 (1) (d), 799.05 (3) (b), 799.206 (3), 799.44
3(4), 799.45 (1), 799.45 (2) (b), 799.45 (2) (c), 799.45 (3) (a) and 799.45 (3) (b);
to
4repeal and recreate 100.26 (6); and
to create subchapter I (title) of chapter
5704 [precedes 704.01], subchapter II of chapter 704 [precedes 704.91], 799.45
6(2) (bg) and 799.45 (3) (am) of the statutes;
relating to: residential rental
7practices, powers of court commissioners and providing a penalty.
Analysis by the Legislative Reference Bureau
Current law addresses some issues related to the rental of residential property,
such as certain lease requirements and how to terminate a tenancy. The Wisconsin
administrative code provides regulations related to other rental practices. This bill
establishes those residential rental practices regulations in the statutes. With some
specified exceptions, the provisions in the bill apply to the rental of all dwelling units
in the state.
The bill requires a landlord, before accepting any earnest money or security
deposit, to disclose to a prospective tenant any uncorrected building or housing code
violations and any other conditions that affect the habitability of the premises. A
landlord must also disclose whether charges for utilities are included in the rent and,
if not, the basis for allocating the charges among the tenants. The bill requires a
landlord to provide a tenant with a receipt for any earnest money or security deposit
received from a tenant and prohibits a landlord from retaining any amount of an
earnest money deposit if the landlord rejects the rental application, except for actual
expenses, up to $25, incurred to verify the application if the rejection was based on
omissions or false statements in the application.
If a landlord requires a security deposit, a tenant must be given at least 7 days
after the beginning of the tenancy to inspect the premises and notify the landlord of
any damages or defects existing at the beginning of the tenancy. In addition, a tenant
may in writing request the landlord to furnish a written itemized description of all
damages or defects for which deductions were made from the previous tenant's
security deposit. The landlord must return a security deposit within 21 days after
the last day for which a tenant is legally liable for rent. If, however, a tenant vacates
the premises before the end of the lease term, the landlord must return the security
deposit within 21 days after the tenant vacates the premises, the landlord receives
written notice from the tenant of his or her intention to vacate before the end of the
lease term or the landlord receives all rents and other charges for which the tenant
is legally liable under the lease, whichever is latest. If the landlord retains any
portion of the security deposit, the landlord must provide a written accounting to the
tenant within that same time period. The bill specifies the reasons for which a
landlord may retain any of the security deposit, including such reasons as damage
to the premises and nonpayment of rent or utility charges for which the tenant is
responsible. A landlord may not retain any portion of a security deposit for normal
wear and tear to the premises. Any damage to a dwelling unit during a tenancy is
rebuttably presumed to have been caused by the tenant.
The bill addresses promises made by a landlord to repair a premises and
requires a landlord to specify the anticipated date of completion. The bill specifies
provisions that may not be included in a rental agreement, such as a provision that
relieves the landlord from liability for property damage or personal injury caused by
negligent acts or omissions of the landlord. The bill also prohibits a landlord from
taking certain actions. For example, except under specified circumstances, a
landlord may not enter a dwelling unit except at reasonable times upon 12 hours'
advance notice for the purpose of inspecting, repairing or showing the premises.
Another prohibited action is terminating a tenancy or constructively evicting a
tenant by reducing heat, water or electricity to the dwelling unit in retaliation
against the tenant for reporting a code violation or joining or organizing a tenant's
union or organization. The bill provides that the penalties that apply to a violation
of the rental practices set out in the administrative code, such as double damages and
reasonable attorney fees, also apply to a violation of the rental practices regulations
provided for in the bill.
Current law requires the return date on the summons in an eviction action
regarding a Wisconsin resident to be not less than 5 nor more than 30 days after the
date of issuance of the summons. This bill limits the maximum return date period
to 15 days after the date of issuance of the summons and requires a hearing within
5 working days after the return date when the eviction is contested. Under current
law, a court commissioner, if delegated by a judge and with the approval of the chief
judge, may perform numerous tasks, including issuing arrest and search warrants,
conducting initial appearances in traffic and county ordinance cases, hearing
petitions for commitment and conducting initial return appearance and conciliation
conferences in small claims actions. This bill allows a court commissioner, if
delegated by a judge and with the approval of the chief judge, to conduct eviction
action trials, except jury trials, in small claims actions.
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:
AB1038, s. 1
1Section
1. 100.20 (5) of the statutes is amended to read:
AB1038,3,62
100.20
(5) Any person suffering pecuniary loss because of a violation by any
3other person of
any provision of subch. II of ch. 704 or of any order issued under this
4section may sue for damages therefor in any court of competent jurisdiction and shall
5recover twice the amount of such pecuniary loss, together with costs, including a
6reasonable attorney's fee.
AB1038, s. 2
7Section
2. 100.20 (6) of the statutes is amended to read:
AB1038,3,168
100.20
(6) The department may commence an action in circuit court in the
9name of the state to restrain by temporary or permanent injunction
the a violation
10of
any provision of subch. II of ch. 704 or of any order issued under this section. The
11court may in its discretion, prior to entry of final judgment make such orders or
12judgments as may be necessary to restore to any person any pecuniary loss suffered
13because of the acts or practices involved in the action, provided proof thereof is
14submitted to the satisfaction of the court. The department may use its authority in
15ss. 93.14 and 93.15 to investigate violations of
subch. II of ch. 704 or of any order
16issued under this section.
AB1038, s. 3
17Section
3. 100.26 (3) of the statutes is amended to read:
AB1038,4,518
100.26
(3) Any person who violates s. 100.15 or 100.19
or any provision of
19subch. II of ch. 704, or who intentionally refuses, neglects or fails to obey any
20regulation or order made or issued under s. 100.19 or 100.20, shall, for each offense,
1be fined not less than $25 nor more than $5,000, or imprisoned in the county jail for
2not more than one year or both
, except that a landlord, as defined in s. 704.915 (5),
3may not be imprisoned for a violation of any provision of subch. II of ch. 704 or of any
4regulation or order that is made or issued under s. 100.20 and that is related to
5residential rental practices.
AB1038, s. 4
6Section
4. 100.26 (6) of the statutes is amended to read:
AB1038,4,117
100.26
(6) The department of justice or any district attorney may commence an
8action in the name of the state to recover a civil forfeiture to the state of not less than
9$100 nor more than $10,000 for each violation of
subch. II of ch. 704 or of an
10injunction issued under s. 100.18, 100.182 or 100.20 (6) or an order issued under s.
11100.20.
AB1038, s. 5
12Section
5. 100.26 (6) of the statutes, as affected by 1995 Wisconsin Acts 27 and
13.... (this act), is repealed and recreated to read:
AB1038,4,2114
100.26
(6) The department, the department of justice, after consulting with the
15department, or any district attorney may commence an action in the name of the
16state to recover a civil forfeiture to the state of not less than $100 nor more than
17$10,000 for each violation of an injunction issued under s. 100.18, 100.182 or 100.20
18(6). The department of agriculture, trade and consumer protection or any district
19attorney may commence an action in the name of the state to recover a civil forfeiture
20to the state of not less than $100 nor more than $10,000 for each violation of subch.
21II of ch. 704 or of an order issued under s. 100.20.
AB1038, s. 6
22Section
6. Chapter 704 of the statutes, as affected by 1995 Wisconsin Acts 27
23and 56, is renumbered subchapter I of chapter 704 [precedes 704.01].
AB1038, s. 7
24Section
7. Subchapter I (title) of chapter 704 [precedes 704.01] of the statutes
25is created to read:
AB1038,5,32
Subchapter I
3
General provisions
AB1038, s. 8
4Section
8. 704.05 (5) (a) (intro.) of the statutes is amended to read:
AB1038,5,85
704.05
(5) (a)
Procedure. (intro.) If a tenant removes from the premises and
6leaves personal property,
or if the landlord elects to have the landlord or his or her
7agent remove and store the property under s. 799.45 (3) (am), the landlord may do
8all of the following:
AB1038, s. 9
9Section
9. Subchapter II of chapter 704 [precedes 704.91] of the statutes is
10created to read:
AB1038,5,1111
Chapter 704
AB1038,5,1312
Subchapter II
13
Residential rental practices
AB1038,5,16
14704.91 Scope of application. This subchapter applies to the rental of any
15dwelling unit located in this state, except that it does not apply to the rental or
16occupancy of a dwelling unit that is any of the following:
AB1038,5,19
17(1) Operated by a public or private institution if the rental or occupancy is
18incidental to detention or the provision of medical, geriatric, educational, counseling,
19religious or similar services.
AB1038,5,21
20(2) Operated by a fraternal or social organization for the benefit of its members
21only.
AB1038,5,23
22(3) Subject to a contract of sale if the occupant is the purchaser or a person who
23succeeds to the purchaser's interest.
AB1038,5,25
24(4) Located in a hotel, motel, boarding house, lodging house or other similar
25premises and the rental or occupancy is on a transient basis.
AB1038,6,2
1(5) Furnished free of charge, or free of charge to an employe even though
2conditioned upon employment in and about the premises.
AB1038,6,4
3(6) Subject to a rental agreement covering premises used by the occupant
4primarily for agricultural purposes.
AB1038,6,5
5704.915 Definitions. In this subchapter:
AB1038,6,8
6(1) "Building or housing code" means laws, ordinances or governmental
7regulations concerning the construction, maintenance, habitability, operation,
8occupancy, use or appearance of any premises or dwelling unit.
AB1038,6,11
9(2) "Dwelling unit" means a physical structure or that part of a physical
10structure that is primarily used as a home, residence or place of abode. The term
11includes a mobile home or mobile home site.
AB1038,6,15
12(3) "Earnest money deposit" means the total of any payments or deposits,
13however denominated or described, given by a prospective tenant to a landlord in
14return for the option of entering into a rental agreement in the future, or for
15consideration by the landlord of a rental application.
AB1038,6,21
16(4) "Form provision" means a written rule, regulation or rental or contract
17provision that has not been specifically and separately negotiated and agreed to by
18the tenant in writing. Any provision appearing as part of a preprinted form is
19rebuttably presumed to be a form provision unless it is handwritten, or unless it is
20preprinted in type that is not smaller than 12-point type size and signed by the
21tenant.
AB1038,6,25
22(5) "Landlord" means the owner or lessor of a dwelling unit that is subject to
23a rental agreement, or any agent acting on the owner's or lessor's behalf. The term
24includes a sublessor other than a person who subleases an individual unit that the
25person occupies.
AB1038,7,3
1(6) "Mobile home" means a unit designed to be towed or transported and used
2as a residential dwelling. The term does not include a unit used primarily for
3camping, touring or recreational purposes.
AB1038,7,6
4(7) "Mobile home site" means a plot of land that is rented or offered for rental
5to accommodate a mobile home. The term does not include a plot of land that is
6rented to accommodate a mobile home that is any of the following:
AB1038,7,77
(a) Occupied on a strictly seasonal basis.
AB1038,7,88
(b) Owned and occupied by a mobile home park operator.
AB1038,7,11
9(8) "Owner" means one or more persons vested with all or part of the legal title
10to a premises or all or part of the beneficial ownership and right to present use and
11enjoyment of a premises. The term includes a mortgagee in possession.
AB1038,7,13
12(9) "Person" means an individual, partnership, corporation, association,
13estate, trust or any other legal or business entity.
AB1038,7,16
14(10) "Premises" means a dwelling unit, the physical structure of which it is a
15part and all appurtenances, grounds, areas, furnishings and facilities held out for the
16use or enjoyment of the tenant or tenants generally.
AB1038,7,19
17(11) "Rental agreement" means any agreement, whether oral or written, for the
18rental or lease of a dwelling unit or premises. The term includes contracts, rules and
19regulations that are incidental to, or adopted under, a rental agreement.
AB1038,7,23
20(12) "Security deposit" means the total of all payments and deposits given by
21a tenant to the landlord as security for the performance of the tenant's obligations.
22The term does not include rent payments made in advance if such prepaid rent does
23not exceed the sum of 4 rent payments.
AB1038,8,2
24(13) "Tenancy" means occupancy, or a right to present occupancy under a rental
25agreement. The term includes periodic tenancies and tenancies at will but does not
1include the occupancy of a dwelling unit without consent of the landlord after the
2expiration of a lease or the termination of a tenancy.