Amendment ASA1-SB80

Traveling sales crew operator registration

Under the substitute amendment, a person may not use a traveling sales crew to engage in traveling sales crew activities on the person's behalf or recruit a person to work as a traveling sales crew member unless the person first obtains a certificate of registration from DWD. A person may obtain a certificate of registration by filing with DWD a written application, meeting the standards under the substitute amendment and under rules promulgated by DWD for issuance of a certificate of registration, and paying a registration fee determined by DWD by rule. The application must contain certain information specified in the substitute amendment, including all of the following:

1. A designation of an agency upon whom service of process may be made in this state.

2. The social security number or federal employer identification number of the applicant.

3. Any other information that DWD considers necessary for the protection of the health, safety, and welfare of the traveling sales crew members working on behalf of the applicant, the consumers of goods or services sold by those members, and the public.

After completing any investigation that DWD considers appropriate, DWD must issue a certificate of registration, which is valid for a 12-month period, if the applicant meets the standards for issuance of a certificate of registration. DWD may deny, suspend, revoke, or refuse to renew a certificate of registration if DWD determines that the applicant has been convicted of any crime.

Traveling sales crew member permits

The substitute amendment prohibits a person from being permitted to work as a traveling sales crew member unless the traveling sales crew operator on whose behalf the person will be working first obtains from DWD a traveling sales crew member permit (permit) for the person. A traveling sales crew operator may obtain a permit for a traveling sales crew member by the operator filing with DWD a written application and paying a registration fee determined by DWD by rule and by the member meeting the standards under the substitute amendment and under rules promulgated by DWD for issuance of a permit. The application must contain certain information specified in the substitute amendment, including all of the following:

1. The social security number of the applicant.

2. Any other information that DWD considers necessary for the protection of the health, safety, and welfare of the traveling sales crew members working on behalf of the traveling sales crew operator, the consumers of goods or services sold by those members, and the public.

After completing any investigation that DWD considers appropriate, DWD must issue a permit, which is valid for a 12-month period, if the traveling sales crew member meets the standards for issuance of a certificate of registration. DWD may deny, suspend, revoke, or refuse to renew a permit if DWD determines that the traveling sales crew member has been convicted of any crime.

The bill also requires a traveling sales crew member to carry at all times while engaged in traveling sales crew activities the member's permit and an identification card issued by a state or federal governmental agency that includes, at a minimum, a photograph of the member.

Obligations of traveling sales crew operators to members

Disclosure statement. The substitute amendment requires a traveling sales crew operator to provide a person who is recruited to work as a traveling sales crew member with a written disclosure statement that includes all of the following information:

1. The address of the principal place of business of the traveling sales crew operator or of the agent for service of process.

2. The compensation to be paid.

3. The type or types of work that the person may be required to perform.

4. The frequency of wage payments to traveling sales crew members.

5. The period of engagement.

6. A description of the transportation, board, lodging, and other benefits to be provided and any costs chargeable to the person for those benefits.

Records. The substitute amendment also requires a traveling sales crew operator to keep records, with respect to each traveling sales crew member working on behalf of the traveling sales crew operator, of all of the following information:

1. The basis on which compensation is paid.

2. The number of piecework units earned, if the traveling sales crew member is paid on a piecework basis.

3. The number of hours worked.

4. The total earnings of the traveling sales crew member for a pay period.

5. The specific sums withheld from the traveling sales crew member's pay and the purpose of each sum withheld.

6. The net pay of the traveling sales crew member for a pay period.

The traveling sales crew operator must provide that information to a traveling sales crew member when compensation is paid.

Payment of compensation; deductions. In addition, the substitute amendment does all of the following:

1. Requires a traveling sales crew operator to pay all compensation owed to a traveling sales crew member promptly, when due, in U.S. currency or by a negotiable instrument such as a bank check or draft.

2. Permits a traveling sales crew operator to deduct from a traveling sales crew member's compensation the reasonable cost to the operator of furnishing board, lodging, or other facilities to the member, but only if the board, lodging, or other facilities are customarily furnished by the operator to its members and if the amount deducted does not exceed the fair market value of the board, lodging, or other facilities and does not include any profit to the operator.

3. Prohibits a traveling sales crew operator from imposing on any traveling sales crew member any of the traveling sales crew operator's business expenses, including the cost of maintaining and operating a motor vehicle that is used to transport traveling sales crew members.

Transportation safety. Moreover, the substitute amendment requires a traveling sales crew operator to do all of the following:

1. Ensure that each motor vehicle that the operator uses or causes to be used to transport traveling sales crew members conforms to all applicable state and federal safety standards.

2. Ensure that each person who operates a motor vehicle that is used to transport a traveling sales crew member has a valid and appropriate driver's license.

3. Have in force, for each motor vehicle used to transport a traveling sales crew member, a policy of insurance or a liability bond that insures the operator, in an amount prescribed by DWD by rule, against liability for damages to persons and property arising out of the ownership or operation of the motor vehicle for that purpose or out of causing the motor vehicle to be operated for that purpose.

Housing safety. Finally, with respect to the obligations of a traveling sales crew operator to a traveling sales crew member, the substitute amendment requires a traveling sales crew operator to ensure that any facility or property that is used to house a traveling sales crew member complies with all federal, state, and local safety and health standards that are applicable to the facility or property.

Prohibited practices

The substitute amendment prohibits a traveling sales crew operator or any other person on behalf of a traveling sales crew operator from doing any of the following:

1. Permitting to work as a traveling sales crew member a minor or permitting to work as a traveling sales crew member an adult who has been adjudged incompetent without the permission of the person's guardian.

2. Requiring a traveling sales crew member to engage in any in-person sales or solicitation activities before 9:00 a.m. or after 9:00 p.m.

3. Requiring a traveling sales crew member to relinquish custody of any of his or her personal property to the traveling sales crew operator, to any other traveling sales crew member working on behalf of the operator, or to any other person.

4. Prohibiting or restricting a traveling sales crew member from contacting any family member, friend, or other person while traveling with the traveling sales crew.

5. Intentionally inflicting or threatening to inflict any bodily harm on a traveling sales crew member or damage to the property of a traveling sales crew member.

6. Advising or counseling a traveling sales crew member to make false representations to a person to whom he or she is offering goods or services for sale.

7. Discharging or discriminating against any person for opposing any practice prohibited under the substitute amendment.

Enforcement

Finally, under the substitute amendment:

1. Any person who willfully and knowingly violates the substitute amendment, any rule promulgated under the substitute amendment, or any order issued by DWD under the substitute amendment or who hinders or delays DWD in the performance of its duties or hinders or delays any law enforcement officer in the performance of his or her duties under the substitute amendment (violation) may be fined not more than $10,000 or imprisoned for not more than one year in the county jail or both and any person who, having been convicted of a prior violation, willfully and knowingly commits a subsequent violation may be fined not more than $50,000 or imprisoned for not more than three years and six months or both.

2. Any person who commits a violation, but not willfully and knowingly, may be required to forfeit $10,000, depending on the gravity of the violation and the previous record of the person in terms of compliance with the substitute amendment, any rules promulgated under the substitute amendment, and any orders issued by DWD under the substitute amendment.

3. If DWD determines that any person has committed a violation, DWD may refer the matter to the attorney general or the district attorney of the county in which the violation occurred, and the attorney general or district attorney may bring a civil action for appropriate injunctive relief.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB80-ASA1, s. 1 Section 1. 21.72 (1) (a) 10. of the statutes is amended to read:

SB80-ASA1,6,3 21.72 (1) (a) 10. A certificate or permit issued under s. 103.275, 103.34, 103.91, or 103.92.

SB80-ASA1, s. 2 Section 2. 49.857 (1) (d) 10. of the statutes is amended to read:

SB80-ASA1,6,6 49.857 (1) (d) 10. A certificate or permit issued under s. 103.275, 103.34, 103.91, or 103.92.

SB80-ASA1, s. 3 Section 3. 73.0301 (1) (d) 3m. of the statutes is amended to read:

SB80-ASA1,7,3 73.0301 (1) (d) 3m. A license, permit, or certificate issued by the department of workforce development under s. 102.17 (1) (c), 103.275 (2) (b), 103.34 (2) (c) or (3) (c), 103.91 (1), 103.92 (3), 104.07 (1) or (2), or 105.13 (1).

SB80-ASA1, s. 4 Section 4. 103.005 (10) of the statutes is amended to read:

SB80-ASA1,7,8 103.005 (10) Except as provided in ss. 103.275 (2) (bm) and (br), 103.34 (6) (b) and (c), 103.91 (4) (b) and (c), 103.92 (6) and (7), 104.07 (5) and (6), and 105.13 (2) and (3), orders of the department under chs. 103 to 106 shall be subject to review in the manner provided in ch. 227.

SB80-ASA1, s. 5 Section 5. 103.34 of the statutes is created to read:

SB80-ASA1,7,11 103.34 Regulation of traveling sales crews. (1) Definitions: In this section:

SB80-ASA1,7,13 (a) "Certificate of registration" means a certificate of registration issued by the department under sub. (2) (c).

SB80-ASA1,7,15 (b) "Fixed place of local residence" means a place of lodging in this state at which a person has tenancy for at least one month.

SB80-ASA1,7,17 (c) "Goods" means wares, products, commodities, or merchandise of any type, including magazine subscriptions.

SB80-ASA1,7,18 (d) "Permit" means a permit issued by the department under sub. (3) (c).

SB80-ASA1,7,24 (e) "Sale" means a transfer for consideration of title to a good or the right to use a good or service and includes any sale, exchange, contract to sell, consignment for sale, shipment for sale, or other disposition of goods or services and any attempt to obtain information for the purpose of making such a sale, exchange, contract, consignment, shipment, or other disposition of goods or services in the future, including the taking of an order for future delivery.

SB80-ASA1,8,3 (f) "Traveling sales crew" means a group of 3 or more traveling sales crew members, not including an immediate family member of a traveling sales crew operator.

SB80-ASA1,8,6 (g) "Traveling sales crew activities" means the sale of goods or services to consumers from house to house or on any street or related support work, including operating a motor vehicle.

SB80-ASA1,8,15 (h) "Traveling sales crew member" means a person who engages in traveling sales crew activities as part of or in association with a traveling sales crew, who travels with the traveling sales crew overnight away from his or her permanent place of residence, and who maintains no fixed place of local residence or fixed retail establishment in this state. "Traveling sales crew member" does not include a person who maintains a fixed place of local residence or a fixed retail establishment in this state, who is a reseller of goods that the person buys at wholesale and to which the person takes title, or who sells services that are regulated by the office of the commissioner of insurance of the federal communications commission.

SB80-ASA1,8,17 (i) "Traveling sales crew operator" means a person who uses a traveling sales crew to engage in traveling sales crew activities on the person's behalf.

SB80-ASA1,8,25 (2) Traveling sales crew operator registration. (a) Registration required. No person may use a traveling sales crew to engage in traveling sales crew activities on the person's behalf or recruit an individual to work as a traveling sales crew member unless the person first obtains a certificate of registration from the department. To obtain a certificate of registration, a person shall file with the department a written application under par. (b), meet the standards specified in par. (c) for issuance of a certificate of registration, and pay a registration fee determined by the department by rule promulgated under sub. (8).

SB80-ASA1,9,3 (b) Application for registration. To obtain a certificate of registration, a person shall file with the department a written application prescribed by the department by rule promulgated under sub. (8) that contains all of the following information:

SB80-ASA1,9,6 1. A designation of an agency upon whom service of process may be made in this state. The agent shall be a resident of this state or a corporation authorized to do business in this state.

SB80-ASA1,9,8 2. The social security number or federal employer identification number of the applicant as provided in sub. (6) (a).

SB80-ASA1,9,12 3. Any other information that the department considers necessary for the protection of the health, safety, and welfare of the traveling sales crew members working on behalf of the applicant, the consumers of goods or services sold by those members, and the public.

SB80-ASA1,9,20 (c) Issuance of registration. Subject to sub. (6) (b) and (c), after completing any investigation that the department considers appropriate, the department shall issue a certificate of registration to the applicant if the department determines that the applicant meets the standards under this section and rules promulgated under sub. (8) for issuance of a certificate of registration. Notwithstanding ss. 111.321, 111.322, and 111.335, the department may deny, suspend, revoke, or refuse to renew a certificate of registration if the department determines that the applicant or registrant has been convicted of any crime.

SB80-ASA1,9,22 (d) Registration; transfer, expiration, extension, and renewal. 1. A certificate of registration is not transferable or assignable.

SB80-ASA1,9,24 2. Unless earlier suspended or revoked, a certificate of registration expires 12 months after its date of issuance. The department, in its discretion, may temporarily extend a certificate of registration if the registrant files an application for temporary extension not less than 30 days before the expiration of the certificate of registration.

SB80-ASA1,10,7 3. A registrant may renew a certificate of registration by filing with the department an application under par. (b) and paying the renewal fee determined by the department by rule promulgated under sub. (8). The department shall renew the certificate of registration if the registrant meets the standards specified in par. (c) for renewal of a certificate of registration.

SB80-ASA1,10,11 (e) Notice of changes; amendment of registration. 1. If during the period for which a certificate of registration is in effect any change occurs in any of the information provided to the department under par. (b), the registrant shall notify the department of that change within 30 days after the change occurs.

SB80-ASA1,10,15 2. If during the period for which a certificate of registration is in effect the registrant intends to engage in any form of traveling sales crew activity that is not identified in the certificate of registration, the registrant shall apply to the department to amend the certificate of registration.

SB80-ASA1,10,23 (3) Traveling sales crew member permit. (a) Permit required. No person may be permitted to work as a traveling sales crew member unless the traveling sales crew operator on whose behalf the person will be working first obtains from the department a permit for the person. To obtain a permit, the traveling sales crew operator shall file with the department on behalf of the applicant a written application under par. (b) and pay a permit fee determined by the department by rule promulgated under sub. (8) and the applicant shall meet the standards specified in par. (c) for issuance of a permit.

SB80-ASA1,11,2 (b) Application for permit. To obtain a permit for an applicant, a traveling sales crew operator shall file with the department on behalf of the applicant a written application prescribed by the department by rule promulgated under sub. (8) that contains all of the following information:

SB80-ASA1,11,3 1. The social security number of the applicant as provided in sub. (6) (a).

SB80-ASA1,11,7 2. Any other information that the department considers necessary for the protection of the health, safety, and welfare of the traveling sales crew members working on behalf of the traveling sales crew operator, the consumers of goods or services sold by those members, and the public.

SB80-ASA1,11,14 (c) Issuance of permit. Subject to sub. (6) (b) and (c), after completing any investigation that the department considers appropriate, the department shall issue a permit to the applicant if the department determines that the applicant meets the standards under this section and rules promulgated under sub. (8) for issuance of a permit. Notwithstanding ss. 111.321, 111.322, and 111.335, the department may deny, suspend, revoke, or refuse to renew a permit if the department determines that the applicant or permit holder has been convicted of any crime.

SB80-ASA1,11,16 (d) Permit; transfer, expiration, extension, and renewal. 1. A permit is not transferable or assignable.