Amendment SSA1-SB589

SB589-SSA1,15,25 344.51 (1) No person may for compensation rent or lease any motor vehicle to be operated by or with the consent of the person renting or leasing the vehicle unless there is filed with the department a good and sufficient bond or policy of insurance issued by an insurer authorized to do an automobile liability insurance or surety business in this state. The bond, policy or certificate shall provide that the insurer which issued it will be liable for damages caused by the negligent operation of the motor vehicle in the amounts set forth in s. 344.01 (2) (d). No person complying with this subsection, and no person acquiring an interest in the rental or leasing of a motor vehicle for which any other person has complied with this subsection, is liable for damages caused by the negligent operation of the motor vehicle by another person.

SB589-SSA1, s. 50 Section 50. 344.51 (2) of the statutes is amended to read:

SB589-SSA1,16,7 344.51 (2) Any person failing to comply with this section is directly liable for all damages caused by the negligence of the person operating such rented or leased vehicle to the extent that such liability could have been established if this section had been complied with, but such liability may not exceed the limits set forth in s. 344.01 (2) (d) with respect to the acceptable limits of liability when furnishing proof of financial responsibility.

SB589-SSA1, s. 51 Section 51. 409.201 of the statutes is amended to read:

SB589-SSA1,16,15 409.201 General validity of security interest. Except as otherwise provided by chs. 401 to 411 a security agreement is effective according to its terms between the parties, against purchasers of the collateral and against creditors. Nothing in this chapter validates any charge or practice illegal under any statute or regulation thereunder governing usury, small loans, retail instalment sales, or the like, or under chs. 421 to 427 and 429, or extends the application of any such statute or regulation to any transaction not otherwise subject thereto.

SB589-SSA1, s. 52 Section 52. 409.203 (5) of the statutes is amended to read:

SB589-SSA1,16,21 409.203 (5) A transaction, although subject to this chapter, is also subject to chs. 138, 421 to 427, and 429 and s. 182.025, or any other similar statute which may be applicable to the particular transaction, and in the case of conflict between this chapter and any such statute, such statute controls. Failure to comply with any applicable statute has only the effect which is specified therein.

SB589-SSA1, s. 53 Section 53. 421.103 (2) of the statutes is amended to read:

SB589-SSA1,16,25 421.103 (2) Unless terms used in chs. 421 to 427 are defined by particular provisions of chs. 421 to 427, they shall have the meaning given them in chs. 401 to 411 and 429, if they are defined in chs. 401 to 411 and 429.

SB589-SSA1, s. 54 Section 54. 421.201 (5) of the statutes is amended to read:

SB589-SSA1,17,11 421.201 (5) Subchapters I and II of ch. 425, relating to creditors' remedies, including applicable penalties, apply to actions or other proceedings brought in this state to enforce rights arising from consumer transactions or extortionate extensions of credit, wherever made, but conduct, action or proceedings to recover collateral or goods subject to a motor vehicle consumer lease shall be governed by the law of the state where the collateral is or goods subject to a motor vehicle consumer lease are located at the time of its recovery unless the collateral is or goods subject to a motor vehicle consumer lease are owned by a Wisconsin resident, who has removed it the collateral or goods from this state only for purposes of transportation to or use in the resident's employment or for temporary periods which do not exceed 15 days.

SB589-SSA1, s. 55 Section 55. 421.202 (6) of the statutes is amended to read:

SB589-SSA1,17,16 421.202 (6) Consumer credit transactions in which the amount financed exceeds $25,000, motor vehicle consumer leases in which the total lease obligation exceeds $25,000 or other consumer transactions in which the cash price exceeds $25,000;

SB589-SSA1, s. 56 Section 56. 421.202 (7) of the statutes is amended to read:

SB589-SSA1,17,18 421.202 (7) Transactions subject to ch. 428; or

SB589-SSA1, s. 57 Section 57. 421.202 (8) of the statutes is amended to read:

SB589-SSA1,17,21 421.202 (8) Transactions in securities accounts or securities transactions by or with a broker-dealer, as defined in s. 551.02 (3), licensed under ch. 551.; or

SB589-SSA1, s. 58 Section 58. 421.202 (9) of the statutes is created to read:

SB589-SSA1,17,24 421.202 (9) Leases of motor vehicles that are not motor vehicle consumer leases under s. 421.301 (25m).

SB589-SSA1, s. 59 Section 59. 421.301 (20) (intro.) of the statutes is amended to read:

SB589-SSA1,18,9 421.301 (20) (intro.)  "Finance charge" means the sum of all charges, payable directly or indirectly by the customer as an incident to or as a condition of the extension of credit, whether paid or payable by the customer, the creditor or any other person on behalf of the customer to the creditor or to a 3rd party unless the creditor had no notice or knowledge of the charges paid or payable to the 3rd party. The term does not include any charge with respect to a motor vehicle consumer lease. The term includes the following types of charges to the extent they are not permitted additional charges under s. 422.202 or, delinquency charges (under s. 422.203 ) or deferral charges (under s. 422.204):

SB589-SSA1, s. 60 Section 60. 421.301 (25m) of the statutes is created to read:

SB589-SSA1,18,12 421.301 (25m) "Motor vehicle consumer lease" has the meaning given for "consumer lease" in s. 429.104 (9).

SB589-SSA1, s. 61 Section 61. 421.301 (35) of the statutes is amended to read:

SB589-SSA1,18,17 421.301 (35) "Precomputed" with respect to a consumer credit transaction means a consumer credit transaction, other than a motor vehicle consumer lease, in which debt is expressed as a single sum comprised of the amount financed and the finance charge computed in advance.

SB589-SSA1, s. 62 Section 62. 421.301 (43m) of the statutes is created to read:

SB589-SSA1,18,20 421.301 (43m) "Total lease obligation" means the sum of all of the following with respect to a motor vehicle consumer lease:

SB589-SSA1,18,21 (a) All scheduled periodic payments under the lease.

SB589-SSA1,18,22 (b) Capitalized cost reduction, as defined in s. 429.104 (6).

SB589-SSA1, s. 63 Section 63. 422.201 (4) of the statutes is repealed.

SB589-SSA1, s. 64 Section 64. 422.201 (7) (intro.) and (a) of the statutes are amended to read:

SB589-SSA1,19,4 422.201 (7) (intro.) Subject to classifications and differentiations the merchant may reasonably establish, the merchant may make the same finance charge on all amounts financed within a specified range. A finance charge so made does not violate sub. (2), or (3) or (4) as the case may be if:

SB589-SSA1,19,6 (a) When applied to the median amount within each range, it does not exceed the maximum permitted by sub. (2), or (3) or (4) as the case may be; and

SB589-SSA1, s. 65 Section 65. 422.201 (8), (9) and (12) of the statutes are amended to read:

SB589-SSA1,19,14 422.201 (8) That portion of the finance charge consisting of an amount equal to a discount of 5% or less of the stated price which is offered to induce payment in full within a stated period of time in connection with a sale for agricultural purposes or a sale of particular goods and services for which credit is not otherwise available from the merchant shall not be included in the finance charge for the purpose of determining the maximum rate of finance charge under sub. (2), or (3) or (4) with respect to a customer who does not pay in full within such time.

SB589-SSA1,19,18 (9) Notwithstanding sub. (2), or (3) or (4), a merchant may contract for and receive a minimum finance charge with respect to a transaction other than one pursuant to an open-end credit plan, of not more than $5 when the amount financed does not exceed $75, or $7.50 when the amount financed exceeds $75.

SB589-SSA1,19,21 (12) Except as provided in sub. (4), this This section does not apply to a consumer credit transaction primarily for an agricultural purpose if the transaction occurs on or after April 6, 1980.

SB589-SSA1, s. 66 Section 66. 422.202 (1) (e) of the statutes is created to read:

SB589-SSA1,20,2 422.202 (1) (e) With respect to a motor vehicle consumer lease, any reasonable fee or charge that is disclosed in writing to the prospective lessee before execution of the motor vehicle consumer lease, is agreed upon by the lessor and lessee and is not prohibited by chs. 421 to 427 and 429.

SB589-SSA1, s. 67 Section 67. 422.207 (1) of the statutes is amended to read:

SB589-SSA1,20,16 422.207 (1) With respect to a consumer credit transaction the parties may, to the extent not prohibited by chs. 421 to 427 and 429, agree that the customer will perform certain duties with respect to preserving or insuring collateral or goods subject to a motor vehicle consumer lease, if such duties are reasonable in relation to the risk of loss of or damage to the collateral or goods. If the customer fails to so perform the creditor may, if authorized by the agreement, pay for the performance of such duties on behalf of the customer. The amount paid may be added to the unpaid balance of the customer's obligation, if, in the absence of performance, the merchant has made all expenditures on behalf of the customer in good faith and in a commercially reasonable manner and except in the case of a transaction for an agricultural purpose where the collateral is perishable and threatens to decline speedily in value, the merchant has given the customer written notice of the nonperformance and reasonable opportunity after such notice to so perform.

SB589-SSA1, s. 68 Section 68. 422.208 of the statutes is amended to read:

SB589-SSA1,20,23 422.208 Right to prepay. Subject to s. 422.209 and, with respect to a motor vehicle consumer lease, s. 429.207, the customer may prepay in full or in any part, at any time without penalty, the unpaid balance of any consumer credit transaction other than a transaction secured by a first lien mortgage or equivalent security interest on real estate with an original term of 10 years or more and on which the annual percentage rate disclosed pursuant to subch. III is 10% or less.

SB589-SSA1, s. 69 Section 69. 422.303 (title) and (1) of the statutes are amended to read:

SB589-SSA1,21,9 422.303 (title) Form requirements other than open-end or, discount or motor vehicle consumer lease. (1) In a consumer credit sale other than one pursuant to an open-end credit plan, a motor vehicle consumer lease or a credit sale in which the only finance charge is a prompt payment discount as described in s. 422.201 (8), the customer's obligation to pay the total of payments shall be evidenced by a single instrument, which shall include, in addition to the other disclosures required by this subchapter, the signature of the seller, the signature of the customer, the date on which it was signed and a description of any property the customer transfers to the seller as a trade-in.

SB589-SSA1, s. 70 Section 70. 422.303 (3) (intro.) and (5) of the statutes are amended to read:

SB589-SSA1,21,15 422.303 (3) (intro.) Except as provided in sub. (4), every writing evidencing the customer's obligation to pay under a consumer credit transaction other than one pursuant to an open-end credit plan or a motor vehicle consumer lease, shall contain immediately above or adjacent to the place for the signature of the customer, a clear, conspicuous, printed or typewritten notice in substantially the following language:

SB589-SSA1,22,2 (5) The creditor shall retain a copy of such writing evidencing a consumer credit transaction, other than one pursuant to an open-end credit plan or a motor vehicle consumer lease, and of any proposal for a consumer credit transaction which the merchant has required or requested the customer to sign and which the customer has signed during contract negotiations, for a period of one year after the last payment scheduled under the transaction, or one year after the transaction has been repaid in full, whichever is sooner. The creditor shall supply the customer with copies of such documents upon any demand of the customer made within such period; one copy shall be furnished at no charge; and subsequent copies shall be furnished on the condition that the customer pay the creditor's reasonable costs of preparing and forwarding the copy. Copies supplied under this subsection are in addition to those copies required by s. 422.302.

SB589-SSA1, s. 71 Section 71. 422.413 (1) of the statutes is amended to read:

SB589-SSA1,22,8 422.413 (1) Except as provided in subs. (2) and (2g), no term of a writing evidencing a consumer credit transaction may provide for any charges as a result of default by the customer other than reasonable expenses incurred in the disposition of collateral or goods subject to a motor vehicle consumer lease and such other charges as are specifically authorized by chs. 421 to 427 and 429.

SB589-SSA1, s. 72 Section 72. 422.417 (2) of the statutes is amended to read:

SB589-SSA1,22,15 422.417 (2) With respect to a consumer lease, except as otherwise provided in s. 429.205 with respect to a motor vehicle consumer lease, a lessor may not take a security interest in any property of owned or leased by the customer other than the leased goods to secure the lessor's obligations under the lease. This subsection does not prohibit a security interest in a cash security deposit for a consumer lease of motor vehicles or agricultural equipment.

SB589-SSA1, s. 73 Section 73. 424.201 (1) and (2) of the statutes are amended to read:

SB589-SSA1,22,19 424.201 (1) Insurance issued as an isolated transaction on the part of the insurer not related to an agreement or plan for insuring customers of the creditor; or

SB589-SSA1,22,21 (2) Insurance indemnifying the creditor against loss due to the customer's default.; or

SB589-SSA1, s. 74 Section 74. 424.201 (3) of the statutes is created to read:

SB589-SSA1,22,25 424.201 (3) With respect to a motor vehicle consumer lease, a lessor's waiver of its contractual right to hold the lessee liable for any or all of the gap amount, as defined in s. 429.104 (12), if the waiver is granted without a separate charge.

SB589-SSA1, s. 75 Section 75. 425.106 (1) (intro.) of the statutes is amended to read:

SB589-SSA1,23,7 425.106 (1) (intro.) Except to the extent that the merchant has a valid security interest which is permitted by chs. 421 to 427 and 429 or has a lien under ch. 779 in such property, or where the transaction is for medical or legal services and there has been no finance charge actually imposed, the following property of the customer shall be exempt from levy, execution, sale, and other similar process in satisfaction of a judgment for an obligation arising from a consumer credit transaction:

SB589-SSA1, s. 76 Section 76. 425.107 (4) of the statutes is amended to read:

SB589-SSA1,23,12 425.107 (4) Any charge or practice expressly permitted by chs. 421 to 427 and 429 is not in itself unconscionable but even though a practice or charge is authorized by chs. 421 to 427 and 429, the totality of a creditor's conduct may show that such practice or charge is part of an unconscionable course of conduct.

SB589-SSA1, s. 77 Section 77. 426.104 (1) of the statutes is amended to read:

SB589-SSA1,23,15 426.104 (1) In addition to other powers granted by chs. 421 to 427 and 429, the administrator within the limitations provided by law shall:

SB589-SSA1,23,19 (a) Receive and act on complaints, take action designed to obtain voluntary compliance with chs. 421 to 427 and 429, commence administrative proceedings on his or her own initiative and commence civil actions solely through the department of justice;

SB589-SSA1,23,21 (b) Counsel persons and groups on their rights and duties under chs. 421 to 427 and 429;

SB589-SSA1,23,23 (c) Make studies appropriate to effectuate the purposes and policies of chs. 421 to 427 and 429 and make the results available to the public;

SB589-SSA1,23,25 (d) Hold such public or private hearings as the administrator deems necessary or proper to effectuate the purposes and policies of chs. 421 to 427 and 429;

SB589-SSA1,24,3 (e) Adopt, amend and repeal rules to carry out the purposes and policies of chs. 421 to 427 and 429, to prevent circumvention or evasion thereof, or to facilitate compliance therewith.

SB589-SSA1, s. 78 Section 78. 426.104 (2) (intro.) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

SB589-SSA1,24,12 426.104 (2) (intro.) The administrator shall report annually on practices in consumer transactions, on the use of consumer credit in the state, on problems attending the collection of debts, on the problems of persons of limited means in consumer transactions, and on the operation of chs. 421 to 427 and 429. For the purpose of making the report, the administrator may conduct research and make appropriate studies. The report shall be included in the report of the division of banking under s. 220.14 and shall include:

SB589-SSA1, s. 79 Section 79. 426.104 (2) (b) to (e) of the statutes are amended to read:

SB589-SSA1,24,15 426.104 (2) (b) A statement of policies followed in deciding whether to investigate or examine the offices of persons subject to chs. 421 to 427 and 429;

SB589-SSA1,24,17 (c) A statement of policies followed in deciding whether to bring any action authorized under chs. 421 to 427 and 429;

SB589-SSA1,24,19 (d) Such recommendations for modifications or additions to chs. 421 to 427 and 429 as in the experience and judgment of the administrator are necessary; and

SB589-SSA1,24,22 (e) Such other statements as are necessary or proper to achieve the purposes or policies of this section or to effectuate the purposes or policies of chs. 421 to 427 and 429.

SB589-SSA1, s. 80 Section 80. 426.104 (4) (a) of the statutes is amended to read:

SB589-SSA1,25,5 426.104 (4) (a) No provision of chs. 421 to 427 and 429 or of any statute to which chs. 421 to 427 and 429 refer which imposes any penalty shall apply to any act done or omitted to be done in conformity with any rule or order of the administrator or any written opinion, interpretation or statement of the administrator, notwithstanding that such rule, order, opinion, interpretation or statement may, after such act or omission, be amended or rescinded or be determined by judicial or other authority to be invalid for any reason.

SB589-SSA1, s. 81 Section 81. 426.104 (4) (ab) 1. of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

SB589-SSA1,25,11 426.104 (4) (ab) 1. Upon the request of any person, the administrator shall review any act, practice, procedure or form that has been submitted to the administrator in writing to determine whether the act, practice, procedure or form is consistent with chs. 421 to 427 and 429.

SB589-SSA1, s. 82 Section 82. 426.104 (4) (b) of the statutes is amended to read:

SB589-SSA1,25,20 426.104 (4) (b) Any act, practice or procedure which has been submitted to the administrator in writing and either approved in writing by the administrator or not disapproved by the administrator within 60 days after its submission to the administrator shall not be deemed to be a violation of chs. 421 to 427 and 429 or any other statute to which chs. 421 to 427 and 429 refer notwithstanding that the approval of the administrator or nondisapproval by the administrator may be subsequently amended or rescinded or be determined by judicial or other authority to be invalid for any reason.

SB589-SSA1, s. 83 Section 83. 426.105 of the statutes is amended to read:

SB589-SSA1,25,25 426.105 Administrative powers with respect to supervised financial organizations. (1) All powers and duties of the administrator under chs. 421 to 427 and 429 shall be exercised by the administrator with respect to a supervised financial organization.

SB589-SSA1,26,5 (2) If the administrator receives a complaint or other information concerning noncompliance with chs. 421 to 427 and 429 by a supervised financial organization, the administrator shall inform the official or agency having supervisory authority over the organization concerned. The administrator may request information about supervised financial organizations from the officials or agencies supervising them.

SB589-SSA1,26,10 (3) The administrator and any official or agency of this state having supervisory authority over a supervised financial organization shall consult and assist one another in maintaining compliance with chs. 421 to 427 and 429. They may jointly pursue investigations, prosecute suits and take other official action, as they deem appropriate, if either of them otherwise is empowered to take the action.

SB589-SSA1, s. 84 Section 84. 426.107 of the statutes is amended to read:

SB589-SSA1,26,15 426.107 Application of chapter 227. Except as otherwise provided, ch. 227 applies to and governs all administrative action taken by the administrator pursuant to chs. 421 to 427 and 429. Notwithstanding s. 227.52, the decisions of the administrator are subject to judicial review as provided in ch. 227.

SB589-SSA1, s. 85 Section 85. 426.109 of the statutes is amended to read:

SB589-SSA1,26,23 426.109 Temporary relief; injunctions. (1) The administrator or any customer may bring a civil action to restrain by temporary or permanent injunction a person from violating chs. 421 to 427 and 429 or the rules promulgated pursuant thereto, or to so restrain a merchant or a person acting on behalf of a merchant from engaging in false, misleading, deceptive, or unconscionable conduct in consumer credit transactions. It shall not be a defense to an action brought under this section that there exists an adequate remedy at law.