General
This rule changes the maximum amount that a landlord may charge a prospective tenant for a consumer credit report from $20 to the amount specified by statute.
Summary of and Comparison with Existing or Proposed Federal Statutes and Regulations
Federal Programs
No existing or proposed federal regulations have an impact on this rule.
Surrounding State Programs
Illinois, Iowa, Michigan, and Minnesota all have statutes or administrative rules governing residential rental practices. These laws address common topics such as rental agreements, security deposits, and other duties of landlords and tenants.
Summary of Factual Data and Analytical Methodologies
DATCP received comments from the Wisconsin Legislative Council Rules Clearinghouse and considered them. It adopted the suggestion to change ATCP 134.05 (4) (a) from “… to pay the landlord's actual cost, up to $20 $25…” to read “… to pay the landlord's actual cost, up to $20 the amount specified in s. 704.085 (1) (a), Stats.,…” The Clearinghouse suggested the change to reduce the need to conduct rulemaking in the future should the Legislature change the amount again. DATCP held a Web Ex public hearing on September 17, 2020, and no one attended.
After the hearing, DATCP accepted formal written comments until September 25, 2020. DATCP received no comments. An internal committee approved the Clearinghouse recommendation.
Analysis and Supporting Documents used to Determine Effect on Small Business
No analysis has been conducted. The statute mandates the change to the rules. Therefore, the rule will not have any effects that the existing law would not already impose.
Effect on Small Business
Many of the landlords affected by this rule are “small businesses.” However, because the change permits landlords to charge, at present, prospective tenants $5 more for credit reports, the rule change will not adversely affect landlords. In addition, the change is mandated by statute, so the rule must be changed.
A complete regulatory flexibility analysis is attached.
DATCP Contact
David A. Woldseth
Department of Agriculture, Trade and Consumer Protection
P.O. Box 8911
Madison, WI 53708-8911
Telephone (608) 224-5164
Where Comments May Be Submitted
David A. Woldseth
Department of Agriculture, Trade and Consumer Protection
P.O. Box 8911
Madison, WI 53708-8911
Telephone (608) 224-5164
Section 1. ATCP 134.05 (4) (a) is amended to read:
ATCP 134.05(4)(a) ATCP 134.05 (4) (a) Except as provided under par. (b), a landlord may require a prospective tenant to pay the landlord's actual cost, up to $20 the amount specified in s. 704.085 (1) (a), Stats., to obtain a consumer credit report on the prospective tenant from a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis. The landlord shall notify the prospective tenant of the charge before requesting the consumer credit report, and shall provide the prospective tenant with a copy of the report. Section 2. Effective date: This rule takes effect on the first day of the month following publication as provided in Wis. Stat. s. 227.22 (2). Dated this _______ day of November, 2020.
WISCONSIN DEPARTMENT OF AGRICULTURE,
TRADE AND CONSUMER PROTECTION
