AB954,18,7 6344.51 (title) Financial responsibility for domestic rented or leased
7vehicles.
AB954, s. 46 8Section 46. 344.51 (1) of the statutes is amended to read:
AB954,18,179 344.51 (1) No person may for compensation rent or lease any motor vehicle to
10be operated by or with the consent of the person renting or leasing the vehicle unless
11there is filed with the department a good and sufficient bond or policy of insurance
12issued by an insurer authorized to do an automobile liability insurance or surety
13business in this state. The bond, policy or certificate shall provide that the insurer
14which issued it will be liable for damages caused by the negligent operation of the
15motor vehicle in the amounts set forth in s. 344.01 (2) (d). No person complying with
16this subsection is liable for damages caused by the negligent operation of the motor
17vehicle.
AB954, s. 47 18Section 47. 344.51 (2) of the statutes is amended to read:
AB954,18,2419 344.51 (2) Any person failing to comply with this section is directly liable for
20all damages caused by the negligence of the person operating such rented or leased
21vehicle to the extent that such liability could have been established if this section had
22been complied with
, but such liability may not exceed the limits set forth in s. 344.01
23(2) (d) with respect to the acceptable limits of liability when furnishing proof of
24financial responsibility
.
AB954, s. 48 25Section 48. 421.103 (2) of the statutes is amended to read:
AB954,19,3
1421.103 (2) Unless terms used in chs. 421 to 427 are defined by particular
2provisions of chs. 421 to 427, they shall have the meaning given them in chs. 401 to
3411 and 429, if they are defined in chs. 401 to 411 or 429.
AB954, s. 49 4Section 49. 421.103 (5) of the statutes is created to read:
AB954,19,65 421.103 (5) Unless superseded by the particular provisions of ch. 429, chs. 421
6to 427 apply to motor vehicle consumer leases.
AB954, s. 50 7Section 50. 421.201 (5) of the statutes is amended to read:
AB954,19,178 421.201 (5) Subchapters I and II of ch. 425, relating to creditors' remedies,
9including applicable penalties, apply to actions or other proceedings brought in this
10state to enforce rights arising from consumer transactions or extortionate extensions
11of credit, wherever made, but conduct, action or proceedings to recover collateral or
12goods subject to a motor vehicle consumer lease
shall be governed by the law of the
13state where the collateral is or goods subject to a motor vehicle consumer lease are
14located at the time of its recovery unless the collateral is or goods subject to a motor
15vehicle consumer lease are
owned by a Wisconsin resident, who has removed it the
16collateral or goods
from this state only for purposes of transportation to or use in the
17resident's employment or for temporary periods which do not exceed 15 days.
AB954, s. 51 18Section 51. 421.202 (6) of the statutes is amended to read:
AB954,19,2219 421.202 (6) Consumer credit transactions in which the amount financed
20exceeds $25,000, motor vehicle consumer leases in which the total lease obligation
21exceeds $25,000
or other consumer transactions in which the cash price exceeds
22$25,000;
AB954, s. 52 23Section 52. 421.202 (7) of the statutes is amended to read:
AB954,19,2424 421.202 (7) Transactions subject to ch. 428; or
AB954, s. 53 25Section 53. 421.202 (8) of the statutes is amended to read:
AB954,20,2
1421.202 (8) Transactions in securities accounts or securities transactions by or
2with a broker-dealer, as defined in s. 551.02 (3), licensed under ch. 551.; or
AB954, s. 54 3Section 54. 421.202 (9) of the statutes is created to read:
AB954,20,54 421.202 (9) Leases of motor vehicles that are not motor vehicle consumer leases
5under s. 421.301 (25m).
AB954, s. 55 6Section 55. 421.301 (20) (intro.) of the statutes is amended to read:
AB954,20,157 421.301 (20) (intro.)  "Finance charge" means the sum of all charges, payable
8directly or indirectly by the customer as an incident to or as a condition of the
9extension of credit, whether paid or payable by the customer, the creditor or any other
10person on behalf of the customer to the creditor or to a 3rd party unless the creditor
11had no notice or knowledge of the charges paid or payable to the 3rd party. The term
12does not include any charge with respect to a motor vehicle consumer lease.
The term
13includes the following types of charges to the extent they are not permitted
14additional charges under s. 422.202 or, delinquency charges (under s. 422.203 ) or
15deferral charges (under s. 422.204):
AB954, s. 56 16Section 56. 421.301 (25m) of the statutes is created to read:
AB954,20,1817 421.301 (25m) "Motor vehicle consumer lease" has the meaning given for
18"consumer lease" in s. 429.104 (9).
AB954, s. 57 19Section 57. 421.301 (35) of the statutes is amended to read:
AB954,20,2320 421.301 (35) "Precomputed" with respect to a consumer credit transaction
21means a consumer credit transaction, other than a motor vehicle consumer lease, in
22which debt is expressed as a single sum comprised of the amount financed and the
23finance charge computed in advance.
AB954, s. 58 24Section 58. 421.301 (43m) of the statutes is created to read:
AB954,21,2
1421.301 (43m) "Total lease obligation" means the sum of the following with
2respect to a motor vehicle consumer lease:
AB954,21,33 (a) All scheduled periodic payments under the lease.
AB954,21,44 (b) Capitalized cost reduction, as defined in s. 429.104 (6).
AB954, s. 59 5Section 59. 422.201 (4) of the statutes is repealed.
AB954, s. 60 6Section 60. 422.201 (7) (intro.) and (a) of the statutes are amended to read:
AB954,21,107 422.201 (7) (intro.) Subject to classifications and differentiations the merchant
8may reasonably establish, the merchant may make the same finance charge on all
9amounts financed within a specified range. A finance charge so made does not violate
10sub. (2), or (3) or (4) as the case may be if:
AB954,21,1211 (a) When applied to the median amount within each range, it does not exceed
12the maximum permitted by sub. (2), or (3) or (4) as the case may be; and
AB954, s. 61 13Section 61. 422.201 (8), (9) and (12) of the statutes are amended to read:
AB954,21,2014 422.201 (8) That portion of the finance charge consisting of an amount equal
15to a discount of 5% or less of the stated price which is offered to induce payment in
16full within a stated period of time in connection with a sale for agricultural purposes
17or a sale of particular goods and services for which credit is not otherwise available
18from the merchant shall not be included in the finance charge for the purpose of
19determining the maximum rate of finance charge under sub. (2), or (3) or (4) with
20respect to a customer who does not pay in full within such time.
AB954,21,24 21(9) Notwithstanding sub. (2), or (3) or (4), a merchant may contract for and
22receive a minimum finance charge with respect to a transaction other than one
23pursuant to an open-end credit plan, of not more than $5 when the amount financed
24does not exceed $75, or $7.50 when the amount financed exceeds $75.
AB954,22,3
1(12) Except as provided in sub. (4), this This section does not apply to a
2consumer credit transaction primarily for an agricultural purpose if the transaction
3occurs on or after April 6, 1980.
AB954, s. 62 4Section 62. 422.201 (12m) of the statutes is renumbered 422.201 (12m) (intro.)
5and amended to read:
AB954,22,76 422.201 (12m) (intro.) This section does not apply to consumer any of the
7following:
AB954,22,10 8(b) Consumer credit sales of or consumer loans secured by a first lien on or
9equivalent security interest in mobile homes as defined in s. 218.10 (2), if the sales
10or loans are made on or after November 1, 1981.
AB954, s. 63 11Section 63. 422.201 (12m) (a) of the statutes is created to read:
AB954,22,1212 422.201 (12m) (a) Motor vehicle consumer leases.
AB954, s. 64 13Section 64. 422.202 (1) (e) of the statutes is created to read:
AB954,22,1714 422.202 (1) (e) With respect to a motor vehicle consumer lease, any reasonable
15fee or charge that, if disclosed in writing to the prospective lessee before execution
16of the motor vehicle consumer lease, is agreed upon by the lessor and lessee and that
17is not prohibited by chs. 421 to 427 and 429.
AB954, s. 65 18Section 65. 422.207 (1) of the statutes is amended to read:
AB954,23,619 422.207 (1) With respect to a consumer credit transaction the parties may, to
20the extent not prohibited by chs. 421 to 427 or 429, agree that the customer will
21perform certain duties with respect to preserving or insuring collateral or goods
22subject to a motor vehicle consumer lease,
if such duties are reasonable in relation
23to the risk of loss of or damage to the collateral or goods. If the customer fails to so
24perform the creditor may, if authorized by the agreement, pay for the performance
25of such duties on behalf of the customer. The amount paid may be added to the

1unpaid balance of the customer's obligation, if, in the absence of performance, the
2merchant has made all expenditures on behalf of the customer in good faith and in
3a commercially reasonable manner and except in the case of a transaction for an
4agricultural purpose where the collateral is perishable and threatens to decline
5speedily in value, the merchant has given the customer written notice of the
6nonperformance and reasonable opportunity after such notice to so perform.
AB954, s. 66 7Section 66. 422.207 (3) of the statutes is amended to read:
AB954,23,148 422.207 (3) A finance charge may be made for sums advanced pursuant to sub.
9(1) at a rate not exceeding the rate stated to the customer pursuant to the provisions
10on disclosure in subch. III, or if no disclosure is required then at the annual rate of
11finance charge assessed on that transaction. With respect to an open-end credit plan
12the amount of the advance may be added to the unpaid balance of the account and
13the merchant may make a finance charge not exceeding that permitted by s. 422.201.
14This subsection does not apply to a motor vehicle consumer lease.
AB954, s. 67 15Section 67. 422.208 of the statutes is amended to read:
AB954,23,21 16422.208 Right to prepay. Subject to s. 422.209 and, with respect to a motor
17vehicle consumer lease, s. 429.207
, the customer may prepay in full or in any part,
18at any time without penalty, the unpaid balance of any consumer credit transaction
19other than a transaction secured by a first lien mortgage or equivalent security
20interest on real estate with an original term of 10 years or more and on which the
21annual percentage rate disclosed pursuant to subch. III is 10% or less.
AB954, s. 68 22Section 68. 422.303 (3) (intro.) of the statutes is amended to read:
AB954,24,223 422.303 (3) (intro.) Except as provided in sub. subs. (3m) and (4), every writing
24evidencing the customer's obligation to pay under a consumer credit transaction,
25other than one pursuant to an open-end credit plan, shall contain immediately above

1or adjacent to the place for the signature of the customer, a clear, conspicuous,
2printed or typewritten notice in substantially the following language:
AB954, s. 69 3Section 69. 422.303 (3m) of the statutes is created to read:
AB954,24,74 422.303 (3m) Except as provided in sub. (4), every writing evidencing the
5customer's obligation to pay under a motor vehicle consumer lease shall contain
6immediately above or adjacent to the place for the signature of the customer, a clear,
7conspicuous, printed or typewritten notice in substantially the following language:
AB954,24,88 NOTICE TO LESSEE
AB954,24,129 (a) THIS IS A MOTOR VEHICLE CONSUMER LEASE. YOU HAVE NO
10OWNERSHIP RIGHTS IN THE VEHICLE UNLESS THIS LEASE CONTAINS A
11PURCHASE OPTION AND YOU EXERCISE YOUR OPTION TO PURCHASE THE
12VEHICLE.
AB954,24,1413 (b) DO NOT SIGN THIS LEASE BEFORE YOU READ IT, INCLUDING THE
14WRITING ON THE REVERSE SIDE.
AB954,24,1515 (c) DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.
AB954,24,1716 (d) EARLY TERMINATION OF THIS LEASE MAY REQUIRE YOU TO PAY
17A SUBSTANTIAL AMOUNT.
AB954,24,1918 (e) YOU ARE ENTITLED TO A COMPLETED COPY OF THIS LEASE WHEN
19YOU SIGN IT.
AB954, s. 70 20Section 70. 422.413 (1) of the statutes is amended to read:
AB954,24,2521 422.413 (1) Except as provided in subs. (2) and (2g), no term of a writing
22evidencing a consumer credit transaction may provide for any charges as a result of
23default by the customer other than reasonable expenses incurred in the disposition
24of collateral or goods subject to a motor vehicle consumer lease and such other
25charges as are specifically authorized by chs. 421 to 427 and 429.
AB954, s. 71
1Section 71. 422.417 (2) of the statutes is amended to read:
AB954,25,72 422.417 (2) With respect to a consumer lease, except as otherwise provided in
3s. 429.205 with respect to a motor vehicle consumer lease,
a lessor may not take a
4security interest in any property of owned or leased by the customer other than the
5leased goods to secure the lessor's obligations under the lease. This subsection does
6not prohibit a security interest in a cash security deposit for a consumer lease of
7motor vehicles or agricultural equipment.
AB954, s. 72 8Section 72. 424.201 (1) and (2) of the statutes are amended to read:
AB954,25,119 424.201 (1) Insurance issued as an isolated transaction on the part of the
10insurer not related to an agreement or plan for insuring customers of the creditor;
11or
AB954,25,13 12(2) Insurance indemnifying the creditor against loss due to the customer's
13default.; or
AB954, s. 73 14Section 73. 424.201 (3) of the statutes is created to read:
AB954,25,1715 424.201 (3) With respect to a motor vehicle consumer lease, a lessor's waiver
16of its contractual right to hold the lessee liable for any or all of the gap amount, as
17defined in s. 429.104 (12), if the waiver is granted without a separate charge.
AB954, s. 74 18Section 74. 425.106 (1) (intro.) of the statutes is amended to read:
AB954,25,2419 425.106 (1) (intro.) Except to the extent that the merchant has a valid security
20interest which is permitted by chs. 421 to 427 and 429 or has a lien under ch. 779 in
21such property, or where the transaction is for medical or legal services and there has
22been no finance charge actually imposed, the following property of the customer shall
23be exempt from levy, execution, sale, and other similar process in satisfaction of a
24judgment for an obligation arising from a consumer credit transaction:
AB954, s. 75 25Section 75. 425.107 (4) of the statutes is amended to read:
AB954,26,4
1425.107 (4) Any charge or practice expressly permitted by chs. 421 to 427 and
2429
is not in itself unconscionable but even though a practice or charge is authorized
3by chs. 421 to 427 and 429, the totality of a creditor's conduct may show that such
4practice or charge is part of an unconscionable course of conduct.
AB954, s. 76 5Section 76. Chapter 429 of the statutes is created to read:
AB954,26,86 Chapter 429
7 motor vehicle
8 consumer leases
AB954,26,109 Subchapter i
10 general provisions
AB954,26,12 11429.101 Title. This chapter may be cited as the Wisconsin motor vehicle
12consumer lease act.
AB954,26,17 13429.102 Applicable law. (1) Unless superseded by the particular provisions
14of this chapter, s. 218.01 and chs. 411 and 421 to 427 and the principles of law and
15equity, including the law relative to capacity to contract, principal and agent,
16estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, or other
17validating or invalidating cause supplement this chapter.
AB954,26,21 18(2) Unless superseded by the particular provisions of this chapter, parties to
19a motor vehicle consumer lease have all of the obligations, duties, rights and
20remedies provided in s. 218.01 and chs. 411 and 421 to 427 that apply to the
21transaction.
AB954,26,25 22429.103 Construction against implied repeal. This chapter being a
23general act intended as a unified coverage of its subject matter, no part of this chapter
24shall be construed to be impliedly repealed by subsequent legislation if such
25construction can reasonably be avoided.
AB954,27,1
1429.104 Definitions. In this chapter:
AB954,27,3 2(1) "Adjusted capitalized cost" means the amount computed by subtracting
3from capitalized cost any capitalized cost reduction.
AB954,27,6 4(2) "Average periodic depreciation" means the adjusted capitalized cost, after
5first subtracting the residual value, divided by the number of lease-payment periods
6or, for a single-payment lease, the number of months in the term of the lease.
AB954,27,9 7(3) "Average periodic lease charge" means the lease charge for the originally
8scheduled term of the consumer lease divided by the number of lease-payment
9periods or, for a single-payment lease, the number of months in the term of the lease.
AB954,27,10 10(4) "Base lease payment" means an amount determined as follows:
AB954,27,1311 (a) With respect to a single-payment lease, the product of the number of
12months in the term of the lease multiplied by the sum of the average periodic lease
13charge and the average periodic depreciation.
AB954,27,1514 (b) With respect to a lease other than a single-payment lease, the sum of the
15average periodic lease charge and the average periodic depreciation.
AB954,28,4 16(5) "Capitalized cost" means all costs capitalized in the consumer lease that,
17after subtracting the capitalized cost reduction, amortizes to the residual value of the
18depreciation portion of the periodic lease payments over the unexpired term of the
19lease or, for a single-payment lease, the single payment. These costs may include
20taxes; fees for registration, license, acquisition, administration and assignment;
21other fees; and charges for insurance, for a waiver of the contractual obligation to pay
22the gap amount, for accessories and their installation, for other services and benefits
23incidental to the consumer lease, and for delivering, servicing, repairing or
24improving the vehicle. With respect to a vehicle or other property traded in
25connection with a consumer lease, the term includes the outstanding unpaid balance

1of the amount financed under a consumer loan, as defined in s. 421.301 (12), or a
2retail instalment contract, as defined in s. 218.01 (1) (t), or the unpaid balance of any
3early termination costs under a lease or other obligation of the lessee. The term does
4not include any lease charge.
AB954,28,9 5(6) "Capitalized cost reduction" means the sum, at the time of inception of the
6consumer lease, of any payments made by cash, check, rebates or the like that
7constitute a downpayment made by the lessee and the amount credited the lessor for
8any trade-in. The term does not include any base lease payments due at the
9inception of the consumer lease.
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