Amendment AA2-ASA1-AB133

AB133-ASA1-AA2,472,22 (c) Payments received shall be applied first to the payment of any rent that is due and then to late fees and any other charges.

AB133-ASA1-AA2,472,24 (d) A late fee may be collected at the time that the late fee accrues or at any time afterward.

AB133-ASA1-AA2,473,3 (4) Effect of outstanding late fee on transfer of ownership. A rental-purchase company may require payment of any outstanding late fees before transferring ownership of rental property to a lessee.

AB133-ASA1-AA2,473,7 435.405 Reinstatement of terminated rent-to-own agreement. (1) Reinstatement, generally. A lessee shall have the right to reinstate a terminated rent-to-own agreement without losing any rights or options previously acquired if all of the following conditions apply:

AB133-ASA1-AA2,473,9 (a) The lessee returned or surrendered the rental property within 5 days after the termination of the agreement.

AB133-ASA1-AA2,473,14 (b) Not more than 21 days have passed after the date that the rental property was returned to the rental-purchase company or, if the lessee has paid two-thirds or more of the total of rental payments necessary to acquire ownership of the rental property, not more than 45 days have passed since the date that the rental property was returned to the rental-purchase company.

AB133-ASA1-AA2,473,18 (2) Authorized conditions on reinstatement. As a condition of reinstatement under this section, the rental-purchase company may require the payment of all past-due rental charges, any applicable late fees, a reinstatement fee not to exceed $5, and the rental payment for an additional term.

AB133-ASA1-AA2,473,23 (3) Effect of repossession on reinstatement. Nothing in this section shall prevent a rental-purchase company from attempting to repossess rental property upon termination of a rent-to-own agreement, but such efforts shall not affect the lessee's right to reinstate as long as the rental property is voluntarily returned or surrendered within 5 days after the termination of the rent-to-own agreement.

AB133-ASA1-AA2,474,3 (4) Property available upon reinstatement. Upon reinstatement, the rental-purchase company shall provide the lessee with the same rental property, if the property is available and is in the same condition as when it was returned to the rental-purchase company, or with substitute property of comparable quality and condition.

AB133-ASA1-AA2,474,8 435.406 Liability waiver. A rental-purchase company may offer a liability waiver to the lessee. The terms of the waiver must be provided to the lessee in writing and the face of the writing must clearly disclose that the lessee is not required to purchase the waiver. The fee for the waiver may not exceed 10% of the periodic rental payment.

AB133-ASA1-AA2,474,15 435.407 Early-purchase option. A rental-purchase company shall offer an early-purchase option to every lessee who enters into a rent-to-own agreement with the rental-purchase company. The early-purchase option shall permit the lessee to purchase the rental property for cash at any time after the initial payment. As a condition of exercising the early-purchase option, the rental-purchase company may require the lessee to be current on the lessee's rent-to-own agreement or to pay any past-due rental charges and other outstanding fees that are owed.

AB133-ASA1-AA2,474,22 435.408 Referral transactions. (1) Prohibited referral transactions. No rental-purchase company may induce any individual to enter into a rent-to-own agreement by giving or offering to give a rebate or discount to the individual in consideration of the individual's giving to the rental-purchase company the names of prospective lessees if the earning of the rebate or discount is contingent upon the occurrence of any event that takes place after the time that the individual enters into the rent-to-own agreement.

AB133-ASA1-AA2,475,3 (2) Authorized referral transactions. A rental-purchase company may give or offer to give a rebate or discount to a lessee who rents personal property from the rental-purchase company in consideration of the lessee's giving to the rental-purchase company the names of prospective lessees. A rebate or discount under this subsection may be contingent upon the occurrence of any event that takes place after the time that the names are given to the rental-purchase company.

AB133-ASA1-AA2,475,6 435.409 Receipts and statements. (1) Receipts due upon request. Upon the request of a lessee, a rental-purchase company shall provide a written receipt to the lessee for any payment made by the lessee.

AB133-ASA1-AA2,475,15 (2) Statement due upon request. Upon the request of a lessee, a rental-purchase company shall provide a written statement to the lessee showing the lessee's payment history on each rent-to-own agreement between the lessee and the rental-purchase company. A rental-purchase company is not required to provide a statement covering any rent-to-own agreement that was terminated or completed more than one year prior to the date of the lessee's request. A rental-purchase company may provide a single statement covering all rent-to-own agreements or separate statements for each rent-to-own agreement, at the rental-purchase company's option.

AB133-ASA1-AA2,475,19 435.501 Price cards displayed. (1) Price cards; generally. A card or tag that clearly and conspicuously states all of the following shall be displayed on or next to any property displayed or offered by a rental-purchase company for rent under a rent-to-own agreement:

AB133-ASA1-AA2,475,20 (a) The price of the property if purchased in cash.

AB133-ASA1-AA2,475,22 (b) The amount of the periodic rental payment and the term over which the payment must be made.

AB133-ASA1-AA2,475,24 (c) The total number and total amount of rental payments that must be paid in order to acquire ownership of the property under a rent-to-own agreement.

AB133-ASA1-AA2,475,25 (d) Whether the property is new or used.

AB133-ASA1-AA2,476,5 (2) Exceptions. If property is offered for rent under a rent-to-own agreement through a catalog or if the size of the property is such that displaying a card or tag on or next to the property would be impractical, a rental-purchase company may make the disclosures required by this section in a catalog or list, if the catalog or list is readily available to prospective lessees.

AB133-ASA1-AA2,476,10 435.502 Advertising. (1) Disclosure required. Except as provided under sub. (2), if an advertisement for a rent-to-own agreement refers to or states the amount of a payment for any property and the right to acquire ownership of that property, the advertisement shall also clearly and conspicuously state all of the following:

AB133-ASA1-AA2,476,11 (a) That the transaction advertised is a rent-to-own agreement.

AB133-ASA1-AA2,476,13 (b) The total number and total dollar amount of rental payments that must be paid to acquire ownership.

AB133-ASA1-AA2,476,15 (c) That the lessee does not acquire ownership of the property if the total dollar amount of payments necessary to acquire ownership is not paid.

AB133-ASA1-AA2,476,18 (2) Exception. Subsection (1) does not apply to any in-store display or any advertisement that is published in the yellow pages of a telephone directory or in any similar directory of businesses.

AB133-ASA1-AA2,476,22 (3) Advertiser not liable. An owner or agent of the medium in which an advertisement for a rent-to-own agreement appears or through which an advertisement for a rent-to-own agreement is disseminated shall not be liable for any violation of sub. (1).

AB133-ASA1-AA2,476,24 435.601 Default and right to cure. (1) Default; Generally. A lessee is in default under a rent-to-own agreement if any of the following applies:

AB133-ASA1-AA2,477,4 (a) The lessee fails to return rental property within 7 days after the date that the last rental term for which a rental payment was made expires, unless the lessee has exercised an early-purchase option or has made all payments necessary to acquire ownership of the rental property.

AB133-ASA1-AA2,477,6 (b) The lessee materially breaches any other provision of the rent-to-own agreement.

AB133-ASA1-AA2,477,9 (2) Default; necessary for lessee liability. No cause of action shall accrue against a lessee with respect to the lessee's obligations under a rent-to-own agreement except by reason of a default.

AB133-ASA1-AA2,477,16 (3) Notice of default; general requirement. As a condition precedent to bringing an action against a lessee arising out of the lessee's default, a rental-purchase company shall provide a written notice of the default and of the right to cure the default to the lessee. The notice shall specify the default and the action required to cure the default and shall inform the lessee that if the default is not cured within 15 days after the notice is given the rental-purchase company will have the right to bring an action against the lessee.

AB133-ASA1-AA2,477,21 (4) Notice of default; exception. Notwithstanding sub. (3), a rental-purchase company is not required to provide a notice of default and right to cure as a condition precedent to bringing an action against a lessee if each of the following occurred twice during the 12 months before the date of the current default with respect to the same rent-to-own agreement:

AB133-ASA1-AA2,477,22 (a) The lessee was in default.

AB133-ASA1-AA2,477,24 (b) The rental-purchase company gave the lessee written notice of the default and of the lessee's right to cure under sub. (3).

AB133-ASA1-AA2,477,25 (c) The lessee cured the default.

AB133-ASA1-AA2,478,4 (5) Request for voluntary surrender of property. A rental-purchase company may request the voluntary return or surrender of rental property prior to the declaration of a default and the sending of written notice of default and right to cure. A request under this subsection is subject to the requirements of s. 435.602.

AB133-ASA1-AA2,478,8 435.602 Rental-purchase company collection practices. In attempting to recover possession of rental property or to collect past-due rental payments or other charges owed under a rent-to-own agreement, a rental-purchase company may not do any of the following:

AB133-ASA1-AA2,478,10 (1) Use of force. Use or threaten to use force or violence to cause physical harm to the lessee or the lessee's dependents or property.

AB133-ASA1-AA2,478,15 (2) Criminal prosecution. Threaten criminal prosecution, unless the rental-purchase company reasonably believes, in good faith, that the lessee has violated a law of this state and, as a result of the violation, is subject to penalties including a fine or imprisonment or both and the rental-purchase company intends to seek the filing of criminal charges against the lessee.

AB133-ASA1-AA2,478,18 (3) Disclosure of false information. Disclose or threaten to disclose information adversely affecting the lessee's reputation for credit worthiness with knowledge or reason to know that the information is false.

AB133-ASA1-AA2,478,24 (4) Communication with lessee's employer. Initiate or threaten to initiate communication with the lessee's employer prior to obtaining final judgment against the lessee, except as permitted by statute, including specifically s. 422.404. This subsection does not prohibit a rental-purchase company from communicating with a lessee's employer solely to verify employment status or earnings or to determine if the employer has an established debt counseling service or procedure.

AB133-ASA1-AA2,479,3 (5) Disclosure of information regarding a disputed debt. Disclose or threaten to disclose information concerning the existence of a debt known to be reasonably disputed by the lessee without disclosing the fact that the lessee disputes the debt.

AB133-ASA1-AA2,479,8 (6) Harassment. Communicate with the lessee or a person related to the lessee with such frequency or at such unusual hours or in such a manner as can reasonably be expected to threaten or harass the lessee or engage in any other conduct which can reasonably be expected to threaten or harass the lessee or a person related to the lessee.

AB133-ASA1-AA2,479,10 (7) Use of obscene or threatening language. Use obscene or threatening language in communicating with the lessee or a person related to the lessee.

AB133-ASA1-AA2,479,12 (8) Use of threat to enforce false right. Threaten to enforce a right with knowledge that the right does not exist.

AB133-ASA1-AA2,479,15 (9) Use of false process. Use a communication which simulates legal or judicial process or which gives the appearance of being authorized, issued or approved by a government, government agency or attorney-at-law when it is not.

AB133-ASA1-AA2,479,18 (10) Use of threat to sue. Threaten to file a civil action against the lessee unless such action is taken in the regular course of business or is intended with respect to the lessee in question.

AB133-ASA1-AA2,479,23 435.701 Civil actions and defenses. (1) Liability; generally. Except as provided under sub. (2), a a rental-purchase company that violates any provision of this chapter is liable to a lessee damaged as a result of that violation for the costs of the action and for reasonable attorney fees as determined by the court, plus an amount equal to the greater of the following:

AB133-ASA1-AA2,479,25 (a) The actual damages, including any incidental and consequential damages, sustained by the lessee as a result of the violation.

AB133-ASA1-AA2,480,3 (b) An amount equal to 25% of the total amount of payments due in one month under the lessee's rent-to-own agreement, except that liability under this paragraph may not be less than $100 nor more than $1,000.

AB133-ASA1-AA2,480,7 (2) Liability; certain violations. If a rent-to-own agreement violates s. 435.403, the lessee shall be entitled to retain the rental property without obligation to pay any amount and to recover any sums paid to the rental-purchase company pursuant to the transaction.

AB133-ASA1-AA2,480,18 (3) Class action. In the case of a class action, a rental-purchase company that violates this chapter is liable to the members of the class in an amount determined by the court, except that the total recovery for all lessees whose recovery is computed pursuant to sub. (1) (b) may not exceed $100,000 plus the costs of the action and reasonable attorney fees as determined by the court. In determining the amount to award under this subsection, the court shall consider, among other relevant factors, the amount of actual damages sustained by members of the class, the frequency and persistence of violations by the rental-purchase company, the resources of the rental-purchase company, the number of persons damaged by the violation, the presence or absence of good faith on the part of the rental-purchase company, and the extent to which the violation was intentional.

AB133-ASA1-AA2,480,23 (4) Defense; error notification and correction. A rental-purchase company is not liable for a violation of this chapter resulting from an error by the rental-purchase company if, within 60 days after discovering the error, the rental-purchase company notifies the lessee of the error and makes any adjustments necessary to correct the error.

AB133-ASA1-AA2,481,6 (5) Defense; unintentional error. A rental-purchase company is not liable for a violation of this chapter if the rental-purchase company shows by a preponderance of the evidence that the violation was not intentional, that the violation resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid these errors and that the rental-purchase company has acted to correct the error. A bona fide error under this subsection includes a clerical error, an error in making calculations, an error due to computer malfunction or computer programming, or a printing error.

AB133-ASA1-AA2,481,10 (6) Necessary parties. If more than one lessee is a party to the same rent-to-own agreement, all of the lessees that are parties to the rent-to-own agreement shall be joined as plaintiffs in any action under sub. (1) and the lessees are entitled to only a single recovery under sub. (1).

AB133-ASA1-AA2,481,15 (7) Liability for multiple violations. Multiple violations of this chapter in connection with the same rent-to-own agreement shall only entitle the lessee to a single recovery under sub. (1), except that a violation of s. 435.602 that occurs after recovery has been granted with respect to that rent-to-own agreement may entitle the lessee to an additional recovery under sub. (1).

AB133-ASA1-AA2,481,20 435.702 Limitation on actions. An action brought by a lessee under this chapter shall be commenced within one year after the date on which the alleged violation occurred, 2 years after the date on which the rent-to-own agreement was entered into, or one year after the date on which the last payment was made under the rent-to-own agreement, whichever is later.".

AB133-ASA1-AA2,481,21 971. Page 1365, line 25: after that line insert:

AB133-ASA1-AA2,481,22 " Section 2841mt. 440.08 (2) (a) 14f. of the statutes is created to read:

AB133-ASA1-AA2,481,23 440.08 (2) (a) 14f. Athletic trainer: July 1 of each even-numbered year; $41.".

AB133-ASA1-AA2,481,24 972. Page 1375, line 12: after that line insert:

AB133-ASA1-AA2,482,1 " Section 2922g. 440.947 of the statutes is created to read:

AB133-ASA1-AA2,482,3 440.947 Disclosures and representations for certain sales. (1) In this section:

AB133-ASA1-AA2,482,9 (a) "Cash advance item" means personal property or a service that is obtained by a person from a 3rd party and that is paid for by the person on behalf of, and subject to reimbursement from, a buyer of a casket, outer burial container or cemetery merchandise from the person. "Cash advance item" includes cemetery or crematory services, pallbearers, public transportation, clergy honoraria, flowers, musicians or vocalists, nurses, obituary notices, gratuities and death certificates.

AB133-ASA1-AA2,482,12 (b) "Direct cremation service" means the disposition of human remains by cremation without any formal viewing, visitation or ceremony in which the body of the deceased is present.

AB133-ASA1-AA2,482,13 (c) "Outer burial container" has the meaning given in s. 157.061 (11g).

AB133-ASA1-AA2,482,15 (d) "Person" does not include a person issued a funeral director's license under ch. 445 or an operator of a funeral establishment, as defined in s. 445.01 (7).

AB133-ASA1-AA2,482,19 (2) No person may sell or offer for sale a casket, outer burial container or cemetery merchandise unless the person has provided to the buyer, prior to the sale, a price list in a clearly legible and conspicuous format that includes each of the following:

AB133-ASA1-AA2,482,20 (a) The name, address and telephone number of the person's place of business.

AB133-ASA1-AA2,482,21 (b) The effective date of the price list.

AB133-ASA1-AA2,483,2 (c) The price and a description of each type of casket, outer burial container and cemetery merchandise that the person usually offers for sale without special ordering. A description required under this paragraph shall enable a buyer to identify and understand the specific casket, outer burial container or cemetery merchandise that is offered for sale.

AB133-ASA1-AA2,483,7 (d) If the person usually offers an outer burial container for sale without special ordering, a statement that is identical to the following: "State law does not require that you buy a container to surround the casket in the grave. However, many cemeteries require that you have such a container so that the grave will not sink in. Either a grave liner or a burial vault will satisfy these requirements."

AB133-ASA1-AA2,483,14 (e) The price and a description of any direct cremation or burial service offered by the person and, if the person offers direct cremation service, a statement that is identical to the following: "If you want to arrange a direct cremation, you can use an alternative container. Alternative containers encase the body and can be made of materials like fiberboard or composition materials (with or without an outside covering). The containers that we provide are .... [insert a description of the containers offered for direct cremation]."

AB133-ASA1-AA2,483,17 (f) The price and a description of any service offered by the person for the use any facilities, equipment or staff related to a viewing, funeral ceremony, memorial service or graveside service.

AB133-ASA1-AA2,483,19 (g) The amount and a description of any basic service fee that is charged in addition to any price described under pars. (c), (e) or (f).

AB133-ASA1-AA2,483,22 (3) A person who sells a casket, outer burial container or cemetery merchandise shall, immediately after completing the sale, provide the buyer with a form in a clearly legible and conspicuous format that includes each of the following:

AB133-ASA1-AA2,483,24 (a) The price and a description of the casket, outer burial container or cemetery merchandise.

AB133-ASA1-AA2,484,2 (b) The price and a description of any service specified in sub. (2) (e) or (f) that is sold in addition to the casket, outer burial container or cemetery merchandise.

AB133-ASA1-AA2,484,4 (c) The amount and a description of any basic service fee that is charged in addition to any price described under par. (a) or (b).

AB133-ASA1-AA2,484,7 (d) A statement that the buyer may be charged only for the items that he or she has selected or that are required by law and a description and explanation of any items that he or she is required by law to purchase.

AB133-ASA1-AA2,484,11 (e) A description of any charge for a cash advance item, including any commission, discount or rebate that the person receives for a cash advance item from the 3rd party from which the cash advance item is obtained and that the person does not pass on to the buyer.

AB133-ASA1-AA2,484,13 (4) No person who sells a casket, outer burial container or cemetery merchandise may do any of the following:

AB133-ASA1-AA2,484,15 (a) Provide inaccurate information regarding the information specified in sub. (2) (c), (e), (f) or (g) to a prospective buyer who contacts the person by telephone.

AB133-ASA1-AA2,484,17 (b) Represent that state or local law requires a prospective buyer to purchase a casket for a direct cremation service.

AB133-ASA1-AA2,484,20 (c) Misrepresent to a prospective buyer any requirement under federal, state or local law or under the rules of any cemetery, mausoleum or crematory relating to the use of a casket, outer burial container or cemetery merchandise.

AB133-ASA1-AA2,484,23 (d) Represent that any casket, outer burial container or cemetery merchandise will delay the natural decomposition of human remains for a long or indefinite period of time.

AB133-ASA1-AA2,484,25 (e) Require a buyer to pay an additional fee or surcharge if the buyer purchases a casket, outer burial container or cemetery merchandise from a 3rd party.

AB133-ASA1-AA2,485,2 (f) Alter a price specified in sub. (2) (c), (e), (f) or (g) based on the type of casket, outer burial container or cemetery merchandise purchased by a buyer.