AB898-ASA2,28,2524
(m) In the conduct of actions to which this subsection applies, the court may
25make, alter, or amend orders that do any of the following:
AB898-ASA2,29,2
11. Determine the course of proceedings or prescribing measures to prevent
2undue repetition or complication in the presentation of evidence or argument.
AB898-ASA2,29,83
2. Require, for the protection of the members of the class or otherwise for the
4fair conduct of the action, that notice be given in such manner as the court may direct
5to some or all of the members of any step in the action, or of the proposed extent of
6the judgment, or of the opportunity of members to signify whether they consider the
7representation fair and adequate, to intervene and present claims or defenses, or
8otherwise to come into the action.
AB898-ASA2,29,99
3. Impose conditions on the representative parties or on intervenors.
AB898-ASA2,29,1110
4. Require that the pleadings be amended to eliminate therefrom allegations
11as to representation of absent persons, and that the action proceed accordingly.
AB898-ASA2,29,1212
5. Deal with similar procedural matters.
AB898-ASA2,29,1613
(n) Once certified by the court under this subsection, a class action shall not be
14dismissed or compromised without the approval of the court, and notice of the
15proposed dismissal or compromise shall be given to all members of the class in such
16manner as the court directs.
AB898-ASA2,29,2117
(o) A rental-purchase company shall not be liable in a class action for statutory
18damages computed under sub. (1) (b) relating to statutory damages, unless it is
19shown by a preponderance of the evidence that the violation was a willful and
20knowing violation of any provision of chs. 421 to 427 relating to rental-purchase
21agreements.
AB898-ASA2,30,222
(p) Reasonable attorneys' fees in a class action shall be determined by the value
23of the time reasonably expended by the attorney rather than by the amount of
24recovery on behalf of the class. A legal aid society or legal services program that
25represents a class shall be awarded a reasonable service fee in lieu of reasonable
1attorneys' fees, equal in amount to the amount of the attorneys' fees as measured by
2this subsection.
AB898-ASA2,30,53
(q) The administrator of the division of banking in the department of financial
4institutions, whether or not a party to an action, shall bear the costs of notice except
5that he or she may recover such costs from the defendant as provided in par. (L).
AB898-ASA2,30,12
6(5) Defense; bona fide error. Notwithstanding any other section of this
7chapter, no lessee shall be entitled, in an individual or class action, to recover any
8penalties provided under sub. (1) (b), if the rental-purchase company violating any
9provision of chs. 421 to 427 relating to rental-purchase agreements shows by a
10preponderance of the evidence that the violation was not intentional, and that the
11violation resulted from a bona fide error notwithstanding the maintenance of
12procedures reasonably adopted to avoid these errors.
AB898-ASA2,30,21
13(6) Double liability limited. The liability of a rental-purchase company under
14this chapter is in lieu of any liability under the federal Consumer Credit Protection
15Act and s. 138.09. An action by a person alleging a violation under this chapter may
16not be maintained if a final judgment has been rendered for or against that person
17with respect to the same violation under the federal Consumer Credit Protection Act
18or s. 138.09. If a final judgment is entered against any rental-purchase company
19under this chapter and the federal Consumer Credit Protection Act or s. 138.09 for
20the same violation, the rental-purchase company has a cause of action for
21appropriate relief to the extent necessary to avoid double liability.
AB898-ASA2,30,25
22(7) Necessary parties. If more than one lessee is a party to the same
23rental-purchase agreement, all of the lessees that are parties to the rental-purchase
24agreement shall be joined as plaintiffs in any action under sub. (1), and the lessees
25are entitled to only a single recovery under sub. (1).
AB898-ASA2,31,6
1425.503 Limitation on actions. An action brought by a lessee under any
2provision of chs. 421 to 427 relating to rental-purchase agreements shall be
3commenced within one year after the date on which the alleged violation occurred,
42 years after the date on which the rental-purchase agreement was entered into, or
5one year after the date on which the last payment was made under the
6rental-purchase agreement, whichever is later.
AB898-ASA2,31,8
7425.504 Venue. (1)
Generally. The venue for a claim arising out of a
8rental-purchase agreement is any of the following counties:
AB898-ASA2,31,99
(a) Where the lessee resides or is personally served.
AB898-ASA2,31,1010
(b) Where the rental property is located.
AB898-ASA2,31,1311
(c) Where the lessee sought or acquired the rental property or signed the
12document evidencing his or her obligation under the terms of the rental-purchase
13agreement.
AB898-ASA2,31,18
14(2) Change in venue. When it appears from the return of service of a summons
15or otherwise that the county in which an action is pending under sub. (1) is not a
16proper place of trial for the action, unless the defendant appears and waives the
17improper venue, the court shall transfer the action to any county that is a proper
18place of trial.
AB898-ASA2,31,21
19(3) Multiple defendants. If there are several defendants in an action arising
20out of a rental-purchase agreement, and if venue is based on residence, venue may
21be in the county of residence of any of the defendants.
AB898-ASA2, s. 28
22Section
28. 426.102 (intro.) of the statutes is renumbered 426.102 (1) (intro.).
AB898-ASA2,31,2424
426.102
(2) Subchapters III and IV apply to rental-purchase agreements.
AB898-ASA2, s. 30
1Section
30. Subchapter IV of chapter 426 [precedes 426.4005] of the statutes
2is created to read:
AB898-ASA2,32,44
Subchapter IV
AB898-ASA2,32,75
Administration and licensing
6
related to
7
rental-purchase agreements
AB898-ASA2,32,8
8426.4005 Definitions. In this subchapter:
AB898-ASA2,32,9
9(1) "Administrator" means the administrator of the division.
AB898-ASA2,32,11
10(2) "Division" means the division of banking in the department of financial
11institutions.
AB898-ASA2,32,13
12426.401 License required. No person may operate as a rental-purchase
13company without a valid license issued by the division under this subchapter.
AB898-ASA2,32,18
14426.402 Application for license; fees; bond. (1) Application. (a) An
15application for a license under this subchapter shall be made to the division, in
16writing, in the form prescribed by the division. In addition to any other information
17that may be required by the division, an application for a license under this
18subchapter shall include all of the following:
AB898-ASA2,32,1919
1. If the applicant is an individual, the applicant's social security number.
AB898-ASA2,32,2120
2. If the applicant is not an individual, the applicant's federal employer
21identification number.
AB898-ASA2,32,2322
(b) The division may not disclose any information received under par. (a) 1. or
232. to any person except as follows:
AB898-ASA2,32,2524
1. The division may disclose the information to the department of revenue for
25the sole purpose of requesting certifications under s. 73.0301.
AB898-ASA2,33,3
12. The division may disclose the information to the department of workforce
2development in accordance with a memorandum of understanding entered into
3under s. 49.857.
AB898-ASA2,33,6
4(2) Application fees. At the time of applying to the division for a license under
5this subchapter, the applicant shall pay any applicable fee specified by the
6administrator by rule.
AB898-ASA2,33,9
7(3) Bond. The division may require an applicant or licensee to file with the
8division and maintain in force a bond, in a form prescribed by and acceptable to the
9division, and in an amount determined by the division.
AB898-ASA2,33,18
10426.403 Issuance or denial of license.
(1) Investigation. Upon the filing
11of an application under s. 426.402 (1) and the payment of any applicable fee, the
12division shall perform an investigation. Except as provided in sub. (3), if the division
13finds that the character, general fitness, and financial responsibility of the applicant;
14the members of the applicant, if the applicant is a partnership, limited liability
15company, or association; and the officers and directors of the applicant, if the
16applicant is a corporation warrant the belief that the business will be operated in
17compliance with any provision of chs. 421 to 427 relating to rental-purchase
18agreements, the division shall issue a license to the applicant.
AB898-ASA2,33,24
19(2) Denial; notice; hearing. Except as provided in sub. (3), the division may
20deny an application made under s. 426.402 (1) by providing written notice to the
21applicant stating the grounds for the denial. Except as provided in sub. (3), a person
22whose application is denied may request a hearing under s. 227.44 within 30 days
23after the date of denial. The division may appoint a hearing examiner under s. 227.46
24to conduct the hearing.
AB898-ASA2,34,2
1(3) Denial; child or family support or tax delinquency. The division may not
2issue a license under this chapter if any of the following applies:
AB898-ASA2,34,43
(a) The applicant fails to provide the information required under s. 426.402 (1)
4(a).
AB898-ASA2,34,95
(b) The department of revenue certifies under s. 73.0301 that the applicant is
6liable for delinquent taxes. An applicant for whom a license is not issued under this
7paragraph for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and
8a hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing
9under this section.
AB898-ASA2,34,1910
(c) The applicant fails to comply, after appropriate notice, with a subpoena or
11warrant issued by the department of workforce development or a county child
12support agency under s. 59.53 (5) and related to paternity or child support
13proceedings or is delinquent in making court-ordered payments of child or family
14support, maintenance, birth expenses, medical expenses, or other expenses related
15to the support of a child or former spouse, as provided in a memorandum of
16understanding entered into under s. 49.857. An applicant whose application is
17denied under this paragraph for delinquent payments is entitled to a notice and
18hearing under s. 49.857, but is not entitled to any other notice or hearing under this
19section.
AB898-ASA2,34,23
20426.404 Licenses; other business. (1) Licensed locations. A license issued
21under this subchapter shall specify the location at which the licensee is permitted
22to conduct business. A separate license shall be required for each place of business
23maintained by the licensee.
AB898-ASA2,34,24
24(2) Assignment. A license issued under this subchapter is not assignable.
AB898-ASA2,35,2
1(3) Posting. A licensee shall post its license in a conspicuous place at the
2location specified in the license.
AB898-ASA2,35,7
3(4) Term of license; fee. Every license shall remain in force until suspended
4or revoked in accordance with this subchapter or surrendered by the licensee. Every
5licensee shall, on or before June 1 of each year, pay to the division an annual license
6fee specified by the division by rule and, if required by the division, provide a rider
7or endorsement to increase the amount of any bond required under s. 426.402 (3).
AB898-ASA2,35,12
8(5) Other business prohibited. No licensee may conduct business as a
9rental-purchase company within any office, room, or place of business in which any
10other business is solicited or engaged in, unless the licensee is authorized to do so,
11in writing, by the division. For the purpose of this subsection, the division may not
12unreasonably withhold any such authorization.
AB898-ASA2,35,16
13426.405 Revocation, suspension, and restriction of license. (1) 14Discretionary suspension or revocation. The division may issue an order
15suspending or revoking a license issued under this subchapter if the division finds
16that any of the following applies:
AB898-ASA2,35,1917
(a) The licensee has violated any provision of chs. 421 to 427 relating to
18rental-purchase agreements, any rules promulgated under any such provision, or
19any lawful order of the division under s. 426.408 (1).
AB898-ASA2,35,2220
(b) A fact or condition exists that, if it had existed at the time of the original
21application for the license, would have warranted the division's refusing to issue the
22license.
AB898-ASA2,35,2423
(c) The licensee has made a material misstatement in an application for a
24license or in any information furnished to the division.
AB898-ASA2,36,2
1(d) The licensee has failed to pay the annual license fee required under s.
2426.404 (4) or has failed to maintain in effect any bond required under s. 426.402 (3).
AB898-ASA2,36,53
(e) The licensee has failed to provide any additional information, data, or
4records required by the division, within the time period prescribed under s. 426.406
5(2).
AB898-ASA2,36,86
(f) The licensee has failed to pay any penalties due under s. 425.401, 425.502,
7or 426.301 within 30 days after receiving notice, by certified mail, that the penalties
8are due.
AB898-ASA2,36,20
9(2) Mandatory restriction or suspension; child or family support. The
10division shall restrict or suspend a license issued under this subchapter if the
11division finds that the licensee is an individual who fails to comply, after appropriate
12notice, with a subpoena or warrant issued by the department of workforce
13development or a county child support agency under s. 59.53 (5) and related to
14paternity or child support proceedings or who is delinquent in making court-ordered
15payments of child or family support, maintenance, birth expenses, medical expenses,
16or other expenses related to the support of a child or former spouse, as provided in
17a memorandum of understanding entered into under s. 49.857. A licensee whose
18license is restricted or suspended under this subsection is entitled to a notice and
19hearing only as provided in a memorandum of understanding entered into under s.
2049.857 and is not entitled to any other notice or hearing under this section.
AB898-ASA2,37,2
21(3) Mandatory revocation; delinquent taxes. The division shall revoke a
22license issued under this subchapter if the department of revenue certifies under s.
2373.0301 that the licensee is liable for delinquent taxes. A licensee whose license is
24revoked under this subsection for delinquent taxes is entitled to a notice under s.
173.0301 (2) (b) 1. b. and a hearing under s. 73.0301 (5) (a) but is not entitled to any
2other notice or hearing under this section.
AB898-ASA2,37,10
3(4) Revocation and suspension procedure. Except as provided in subs. (2) and
4(3), no license shall be revoked or suspended except after a hearing under this
5subchapter. A complaint stating the grounds for suspension or revocation together
6with a notice of hearing shall be delivered to the licensee at least 5 days in advance
7of the hearing. In the event the licensee cannot be found, complaint and notice of
8hearing may be left at the place of business stated in the license and this shall be
9considered the equivalent of delivering the notice of hearing and complaint to the
10licensee.
AB898-ASA2,37,18
11426.406 Modification of license. (1) Change in place of business. No
12licensee may change its place of business to another location without the prior
13approval of the division, which approval shall not be unreasonably withheld. A
14licensee shall provide the division with at least 15 days' prior written notice of a
15proposed change under this section and shall pay any applicable fees specified by the
16division by rule. Upon approval by the division of the new location, the division shall
17issue an amended license, specifying the date on which the amended license is issued
18and the new location.
AB898-ASA2,38,3
19(2) Other changes. Except as provided in sub. (1), a licensee shall notify the
20division of any material change to the information provided in the licensee's original
21application for a license under this subchapter or provided in a previous notice of
22change filed by the licensee with the division under this subsection. A licensee shall
23provide the notice required under this subsection within 10 days after the change.
24The licensee shall provide any additional information, data, and records about the
25change to the division within 20 days after the division requests the information,
1data, or records. The division shall determine the cost of investigating and
2processing the change. The licensee shall pay the division's cost within 30 days after
3the division demands payment.
AB898-ASA2,38,7
4(3) Division approval of other changes. Any change that is subject to the
5notice requirement under sub. (2) is subject to the approval of the division. In
6reviewing the change, the division shall apply the same criteria as the criteria for
7approval of an original license application.
AB898-ASA2,38,12
8426.407 Annual report; records. (1) Annual report. On or before March
931 of each year, a licensee shall file a report with the division giving such reasonable
10and relevant information as the division may require concerning the business and
11operations conducted by the licensee. The licensee shall make the report in the form
12prescribed by the division.
AB898-ASA2,38,17
13(2) Books and records. A licensee shall keep such books and records in the
14licensed location as, in the opinion of the division, will enable the division to enforce
15any provision of chs. 421 to 427 relating to rental-purchase agreements. Every
16licensee shall preserve its records of a rental-purchase agreement for at least 2 years
17after making any final entry with respect to the rental-purchase agreement.
AB898-ASA2,38,21
18426.408 Powers and duties of division; administration. (1) Orders. The
19division may issue any general order or special order in execution of or
20supplementary to any provision in chs. 421 to 427 relating to rental-purchase
21agreements but any such order may not conflict with any such provision.
AB898-ASA2,39,10
22(2) Investigations and examinations. For the purpose of discovering violations
23of any provision in chs. 421 to 427 relating to rental-purchase agreements, the
24division may investigate or examine the business of a licensee transacted under any
25provision of chs. 421 to 427 relating to rental-purchase agreements. The place of
1business, books of accounts, papers, records, safes, and vaults of the licensee shall
2be open to the division for the purpose of an investigation or examination, and the
3division has authority to examine under oath all persons whose testimony is required
4for an investigation or examination. The division shall determine the cost of an
5investigation or examination. The licensee shall pay the cost of an investigation or
6examination. The licensee shall pay the cost of any hearing held for the purpose of
7this subsection, including witness fees, unless the division or a court finds that the
8licensee has not violated this subchapter. The licensee shall pay all costs owing
9under this subsection within 30 days after the division demands payment. The state
10may maintain an action for the recovery of any costs owing under this subsection.
AB898-ASA2,39,14
11(3) Verified complaint; mandatory investigation. If 5 or more persons file a
12verified complaint with the administrator alleging that a rental-purchase company
13has engaged in an act which is subject to action by the administrator, he or she shall
14immediately commence an investigation pursuant to sub. (2).
AB898-ASA2,39,16
15(4) Rules. The administrator may promulgate rules for the administration of
16any provision in chs. 421 to 427 relating to rental-purchase agreements.
AB898-ASA2,39,19
17(5) Testimonial powers and powers to secure evidence. The division has the
18same power to conduct hearings, take testimony, and secure evidence as is provided
19to the division in ss. 217.17 and 217.18.
AB898-ASA2,39,24
20(6) Enforcement. The division may investigate any provision in chs. 421 to 427
21relating to rental-purchase agreements or any lawful orders issued under sub. (1)
22to determine if any such provision or lawful order is being violated. The division may
23report any such violations to the attorney general or the district attorney of the
24proper county for prosecution.
AB898-ASA2,40,4
1427.102 Scope. This chapter applies to conduct and practices in connection
2with the collection of obligations arising from consumer transactions, including
3transactions that are primarily for an agricultural purpose
, and to transactions in
4connection with rental-purchase agreements.
AB898-ASA2,40,6
6427.103 (intro.) In this chapter:
AB898-ASA2,40,98
427.103
(1e) "Consumer transaction" has the meaning given in s. 421.301 (13),
9but does include a transaction in connection with a rental-purchase agreement.
AB898-ASA2,40,1211
427.103
(1r) "Customer" has the meaning given in s. 421.301 (17), but does
12include a lessee to a rental-purchase agreement.
AB898-ASA2,40,1514
427.103
(4) "Merchant" has the meaning given in s. 421.301 (25), but does
15include a rental-purchase company.
AB898-ASA2,40,1817
(1) This act first applies to rental-purchase agreements, and conduct pursuant
18to those agreements, that are entered into on the effective date of this subsection.
AB898-ASA2,40,2020
(1) This act takes effect on the 90th day after publication.