AB40: Bill Text

AB40,945,10 (6) Attorney fees. A provision requiring the lessee to pay any attorney fees.

AB40,945,13 420.06 Price and cost limitations. (1) Limits on cash prices. The cash price for rental property offered by a rental-purchase company may not exceed the greater of the following:

AB40,945,15 (a) An amount equal to twice the actual purchase price of the rental property, including any applicable freight charges, paid by the rental-purchase company.

AB40,945,18 (b) The price at which property of like type and quality is offered, in the ordinary course of business, for sale for cash in the market area of the rental-purchase store where the property is offered for rental purchase.

AB40,945,23 (2) Limits on cost of rental services and other charges. The total amount charged by the rental-purchase company for all required charges or fees, excluding applicable taxes and any late fees or reinstatement fees, in a rental-purchase transaction shall not exceed twice the maximum cash price of the property as determined under sub. (1).

AB40,946,8 (3) Acquisition of ownership. At any time after the initial rental period under a rental-purchase agreement, if a lessee affirmatively elects an early-purchase option, the lessee may acquire ownership of the rental property by tendering an amount not to exceed 55 percent of the difference between the total of rental payments necessary to acquire ownership of the rental property and the total amount of rental payments paid for use of the rental property at that time, plus applicable taxes, except that the lessee's early-purchase option amount may not be less than the amount of one rental payment. Before a lessee acquires ownership of the rental property as provided under this subsection, a rental-purchase company may first require the lessee to pay any accrued unpaid rental payments and fees.

AB40,946,12 (4) Annual percentage rate disclosure not required. A rental-purchase company shall not be required to disclose, in a rental-purchase agreement or otherwise, any percentage rate calculation, including a time-price differential, an annual percentage rate, or an effective annual percentage rate.

AB40,946,16 420.07 Reinstatement of a rental-purchase agreement. (1) Reinstatement generally. Subject to sub. (2), a lessee may reinstate a rental-purchase agreement that has ended without losing any rights or options previously acquired if all of the following apply:

AB40,946,18 (a) The lessee voluntarily returned or surrendered the rental property within 7 days after the expiration of the rental-purchase agreement.

AB40,946,20 (b) Not more than 120 days have passed after the date on which the rental-purchase agreement ended.

AB40,946,24 (2) Authorized conditions on reinstatement. As a condition of reinstatement under sub. (1), 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 the next term.

AB40,947,6 (3) Effect of repossession on reinstatement. Subject to s. 420.05 (2), nothing in this section prohibits a rental-purchase company from repossessing or attempting to repossess rental property when a rental-purchase agreement ends, but such efforts do not affect the lessee's right to reinstate as long as the rental property is voluntarily returned or surrendered within 7 days after the rental-purchase agreement ends.

AB40,947,11 (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.

AB40,947,15 (5) Notice of reinstatement rights. If the lessee is entitled to reinstatement under subs. (1) and (2), within 15 days of repossession or voluntary return or surrender of the rental property, the rental-purchase company shall provide written notice to the lessee of the lessee's rights and obligations under this section.

AB40,947,18 420.08 Receipts and statements. (1) Receipts. A rental-purchase company shall provide a written receipt to the lessee for any payment made by the lessee in cash or, upon the request of the lessee, for any other type of payment.

AB40,948,2 (2) Statement due to lessee. Subject to sub. (4), 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 rental-purchase agreement between the lessee and the rental-purchase company. A rental-purchase company is not required to provide a statement covering any rental-purchase agreement that ended more than one year prior to the date of the lessee's request. A rental-purchase company may provide a single statement covering all rental-purchase agreements or separate statements for each rental-purchase agreement, at the rental-purchase company's option.

AB40,948,7 (3) Statement due to other parties. Subject to sub. (4), upon the written request of a lessee, made during the term of or no later than one year after the rental-purchase agreement ended, a rental-purchase company shall provide a written statement to any person the lessee designates, showing the lessee's payment history under the rental-purchase agreement.

AB40,948,12 (4) Fee for statement. A lessee or, if appropriate, a lessee's designee, is entitled to receive one statement under subs. (2) and (3) without charge once every 12 months. A rental-purchase company shall provide an additional statement if the lessee pays the rental-purchase company's reasonable costs of preparing and furnishing the statement.

AB40,948,16 420.09 Advertising disclosure required. If an advertisement for a rental-purchase agreement states the amount of a payment for a specific item of property, the advertisement shall also clearly and conspicuously state all of the following:

AB40,948,17 (1) That the transaction advertised is a rental-purchase agreement.

AB40,948,19 (2) The total number and total dollar amount of all rental payments necessary to acquire ownership of the property.

AB40,948,21 (3) That the lessee does not acquire ownership of the property if the lessee fails to make all payments necessary to acquire ownership of the property.

AB40,948,25 420.10 Price cards displayed. (1) Price cards generally. Except as provided in sub. (2), 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 rental-purchase agreement:

AB40,949,1 (a) The cash price that a lessee would pay to purchase the property.

AB40,949,2 (b) The amount and timing of the rental payments.

AB40,949,4 (c) The total number and total amount of all rental payments necessary to acquire ownership of the property under a rental-purchase agreement.

AB40,949,5 (d) The cost of rental services under a rental-purchase agreement.

AB40,949,6 (e) Whether the property is new or used.

AB40,949,12 (2) Exceptions. If property is offered for rent under a rental-purchase agreement through a catalog, whether print or electronic, 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 under sub. (1) in a catalog, list, or disclosure sheet if the catalog, list, or disclosure sheet is readily available to prospective lessees and provided upon request.

AB40,949,14 420.11 Rule making. The department may promulgate rules to administer and enforce the requirements of this chapter.

AB40,949,18 420.12 Penalties. (1) Award of damages. Subject to sub. (3), a rental-purchase company that violates any provision of this chapter, rule promulgated under this chapter, or order issued under this chapter pertaining to a lessee is liable to the lessee in an amount equal to the greater of the following:

AB40,949,19 (a) The actual damages sustained by the lessee as a result of the violation.

AB40,949,22 (b) If the action is not brought as a class action, 25 percent of the total payments necessary for the lessee to acquire ownership of the rental property, but not less than $100 nor more than $1,000.

AB40,949,24 (c) If the action is brought as a class action, the amount the court determines to be appropriate, subject to sub. (2).

AB40,950,8 (2) Damage limitations in class actions. The total recovery by all lessees in any class action or series of class actions arising out of the same violation may not be more than the lesser of $500,000 or 1 percent of the net worth of the rental-purchase company. In determining the amount of any award in a class action, the court shall consider, among other relevant factors, the amount of actual damages awarded, the frequency and persistence of the violation, the rental-purchase company's resources, and the extent to which the rental-purchase company's violation was intentional.

AB40,950,13 (3) Unintentional violations. A rental-purchase company is not liable for any violation of this chapter if the rental-purchase company shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error, and the rental-purchase company maintained procedures reasonably adapted to avoid such an error.

AB40,950,17 (4) Costs and attorney fees. If a court awards any monetary amount under sub. (1) to a lessee, the rental-purchase company shall also be liable to the lessee for the costs of the action and, notwithstanding s. 814.04 (1), for reasonable attorney fees as determined by the court.

AB40,950,25 420.13 Inapplicability of Consumer Act and ch. 409. A rental-purchase company that has filed notice as provided under s. 420.02 (1) is not subject to the Wisconsin Consumer Act, chs. 421 to 427, or any related rule or order adopted under chs. 421 to 427, or to any provision of ch. 409, and any rental-purchase agreement entered into by such a rental-purchase company may not be construed or regulated as a security interest, credit sale, retail installment sale, conditional sale, or any other form of consumer credit, nor considered to be the creation of a debt or extension of credit.

AB40,2178 Section 2178. 421.202 (11) of the statutes is created to read:

AB40,951,4 421.202 (11) Any rental-purchase company that has filed notice as provided under s. 420.02 (1) and any rental-purchase agreement entered into by such a rental-purchase company.

AB40,2179 Section 2179. 440.03 (7m) of the statutes is amended to read:

AB40,951,15 440.03 (7m) The department may promulgate rules that establish procedures for submitting an application for a credential or credential renewal by electronic transmission. Any rules promulgated under this subsection shall specify procedures for complying with any requirement that a fee be submitted with the application. The rules may also waive any requirement in chs. 440 to 480 that an application submitted to the department, an examining board or an affiliated credentialing board be executed, verified, signed, sworn or made under oath, notwithstanding ss. 440.26 (2) (b), 440.42 (2) (intro.), 440.91 (2) (intro.), 443.06 (1) (a), 443.10 (2) (a), 445.04 (2), 445.08 (4), 445.095 (1) (a), 448.05 (7), 450.09 (1) (a), 452.10 (1) and 480.08 (2m).

AB40,2180 Section 2180. 440.03 (13) (b) 29. of the statutes is repealed.

AB40,2181 Section 2181. 440.03 (13) (b) 57m. of the statutes is repealed.

AB40,2182 Section 2182. 440.03 (13) (b) 58. of the statutes is repealed.

AB40,2183 Section 2183. 440.05 (intro.) of the statutes is amended to read:

AB40,951,22 440.05 Standard fees. (intro.) The following standard fees apply to all initial credentials, except as provided in ss. 440.42, 440.43, 440.44, 440.51, 444.03, 444.11, 446.02 (2) (c), 447.04 (2) (c) 2., 449.17 (1m) (d), and 449.18 (2) (d):

AB40,2184 Section 2184. 440.08 (2) (a) 23m. of the statutes is repealed.

AB40,2185 Section 2185. 440.08 (2) (a) 35m. of the statutes is repealed.

AB40,2186 Section 2186. 440.08 (2) (a) 63p. of the statutes is repealed.

AB40,2187 Section 2187. 440.08 (2) (a) 63t. of the statutes is repealed.

AB40,2188 Section 2188. Subchapter IV (title) of chapter 440 [precedes 440.41] of the statutes is renumbered subchapter II (title) of chapter 202 [precedes 202.11].

AB40,2189 Section 2189. 440.41 (intro.) of the statutes is renumbered 202.11 (intro.).

AB40,2190 Section 2190. 440.41 (1) of the statutes is renumbered 202.11 (1).

AB40,2191 Section 2191. 440.41 (2) (intro.) of the statutes is renumbered 202.11 (2) (intro.).

AB40,2192 Section 2192. 440.41 (2) (a) of the statutes is renumbered 202.11 (2) (a).

AB40,2193 Section 2193. 440.41 (2) (b) of the statutes is renumbered 202.11 (2) (b) and amended to read:

AB40,952,13 202.11 (2) (b) A benevolent, educational, philanthropic, humane, scientific, patriotic, social welfare or advocacy, public health, environmental conservation, civic, or other eleemosynary objective.

AB40,2194 Section 2194. 440.41 (3) of the statutes is renumbered 202.11 (3) and amended to read:

AB40,952,20 202.11 (3) "Charitable sales promotion" means an advertising or sales campaign, that is conducted by a person who is regularly and primarily engaged in trade or commerce for profit other than in connection with soliciting , which and that represents that the purchase or use of goods or services offered will benefit, in whole or in part, a charitable organization or charitable purpose.

AB40,2195 Section 2195. 440.41 (4) of the statutes is renumbered 202.11 (4).

AB40,2196 Section 2196. 440.41 (5) of the statutes is renumbered 202.11 (5) (intro.) and amended to read:

AB40,953,2 202.11 (5) (intro.) "Contribution" means a grant or pledge of money, credit, property, or other thing of any kind or value, except used clothing or household goods, to a charitable organization or for a charitable purpose. "Contribution" does not include income from bingo any of the following:

AB40,953,3 (a) Bingo or raffles conducted under ch. 563, a.

AB40,953,4 (b) A government grant, or a.

AB40,953,9 (c) A bona fide fee, due, or assessment paid by a member of a charitable organization, except that, if initial membership in a charitable organization is conferred solely as consideration for making a grant or pledge of money to the charitable organization in response to a solicitation, the that grant or pledge of money is a contribution.

AB40,2197 Section 2197. 440.41 (6) of the statutes is renumbered 202.11 (6) (intro.) and amended to read:

AB40,953,17 202.11 (6) (intro.) "Fund-raising counsel" means a person who, for compensation, plans, manages, advises, consults, or prepares material for, or with respect to, solicitation in this state for a charitable organization, but who does not solicit and who does not in this state or employ, engage, or provide any person who is paid to solicit contributions in this state. "Fund-raising counsel" does not include an any of the following:

AB40,953,20 (a) An attorney, investment counselor, or employee of a financial institution who, in the normal course of his or her work as an attorney, investment counselor, or employee of a financial institution, advises a person to make a contribution or a.

AB40,953,22 (b) A bona fide employee, volunteer, or salaried officer of a charitable organization.

AB40,2198 Section 2198. 440.41 (7) of the statutes is renumbered 202.11 (7) (intro.) and amended to read:

AB40,954,4 202.11 (7) (intro.) "Professional fund-raiser" means a person who, for compensation, solicits in this state or employs, engages, or provides, directly or indirectly, another person who is paid to solicit in this state. "Professional fund-raiser" does not include an any of the following:

AB40,954,8 (a) An attorney, investment counselor, or employee of a financial institution who, in the normal course of his or her work as an attorney, investment counselor, or employee of a financial institution, advises a person to make a charitable contribution, a .

AB40,954,10 (b) A bona fide employee, volunteer, wholly owned subsidiary, or salaried officer of a charitable organization, an.

AB40,954,12 (c) An employee of a temporary help agency who is placed with a charitable organization or a .

AB40,954,14 (d) A bona fide employee of a person who employs another person to solicit in this state.

AB40,2199 Section 2199. 440.41 (8) of the statutes is renumbered 202.11 (8).

AB40,2200 Section 2200. 440.41 (9) (intro.) of the statutes is renumbered 202.11 (9) (intro.).

AB40,2201 Section 2201. 440.41 (9) (a) of the statutes is renumbered 202.11 (9) (a).

AB40,2202 Section 2202. 440.41 (9) (b) of the statutes is renumbered 202.11 (9) (b) and amended to read:

AB40,954,24 202.11 (9) (b) An announcement to the news media or by radio, television, telephone, telegraph, or other transmission of images or information concerning the a request for contributions a contribution by or for a charitable organization or for a charitable purpose.

AB40,2203 Section 2203. 440.41 (9) (c) of the statutes is renumbered 202.11 (9) (c) and amended to read:

AB40,955,5 202.11 (9) (c) The distribution or posting of a handbill, written advertisement, or other publication which that directly or by implication seeks contributions a contribution.

AB40,2204 Section 2204. 440.41 (9) (d) (intro.) of the statutes is renumbered 202.11 (9) (d) (intro.) and amended to read:

AB40,955,11 202.11 (9) (d) (intro.) The sale of, or offer or attempt to sell, a membership or an advertisement, advertising space, book, card, tag, coupon, device, magazine, merchandise, subscription, flower, ticket, candy, cookie, or other tangible item in connection with any of the following:

AB40,2205 Section 2205. 440.41 (9) (d) 1. of the statutes is renumbered 202.11 (9) (d) 1.

AB40,2206 Section 2206. 440.41 (9) (d) 2. of the statutes is renumbered 202.11 (9) (d) 2.

AB40,2207 Section 2207. 440.41 (9) (d) 3. of the statutes is renumbered 202.11 (9) (d) 3.

AB40,2208 Section 2208. 440.41 (10) of the statutes is renumbered 202.11 (10).