LRB-3752/1
MDK:jld:rs
2005 - 2006 LEGISLATURE
February 20, 2006 - Introduced by Representatives Travis, Ainsworth, Turner,
Nass, Lehman, Musser, Hebl and Young, cosponsored by Senator Hansen.
Referred to Committee on Financial Institutions.
AB1050,1,2
1An Act to create 421.110 of the statutes;
relating to: use of debit cards and
2providing a penalty.
Analysis by the Legislative Reference Bureau
Under this bill, if a customer uses a debit card to initiate a transaction with a
merchant for the sale of goods or services, the merchant may not place a hold on funds
in the customer's debit card account to cover the anticipated cost of the transaction
unless the merchant releases the hold as soon as the cost of the transaction is known.
The bill includes this prohibition in the Wisconsin Consumer Act (WCA), which
regulates transactions that are entered into for personal, family, or household
purposes and that involve an amount of $25,000 or less. Therefore, the bill's
prohibition applies to sales of goods and services for such purposes that involve such
an amount.
A merchant who violates the prohibition may be subject to a civil forfeiture of
between $100 and $1,000, except that if the violation is knowing or willful, the
merchant may be subject to a civil forfeiture of between $1,000 and $10,000. In
addition, a merchant who violates the prohibition is liable to the customer in an
amount equal to $100 and actual damages. The bill's penalties are the same that
apply under current law to certain other violations of the WCA.
For further information see the state 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:
AB1050, s. 1
1Section
1. 421.110 of the statutes is created to read:
AB1050,2,2
2421.110 Debit card transactions. (1) Definitions. In this section:
AB1050,2,43
(a) "Debit card" means a card that allows a customer to make an electronic
4withdrawal of funds from an account with a financial institution.
AB1050,2,65
(b) "Debit card account" means the account from which funds are electronically
6withdrawn by use of a debit card.
AB1050,2,11
7(2) Prohibition. If a customer uses a debit card to initiate a consumer
8transaction with a merchant for the sale of goods or services, the merchant may not
9place a hold on funds in the customer's debit card account to cover the anticipated
10cost of the transaction unless the merchant releases the hold as soon as the cost of
11the transaction is known. A violation of this section is subject to s. 425.303.
AB1050,2,1413
(1)
This act takes effect on the first day of the 2nd month beginning after
14publication.
