Amendment AA2-ASA1-AB133

AB133-ASA1-AA2, s. 2734hgf Section 2734hgf. 342.15 (3) of the statutes is amended to read:

AB133-ASA1-AA2,458,6 342.15 (3) Except as provided in s. 342.16 with respect to a vehicle which is not a salvage vehicle and as between the parties, a transfer by an owner is not effective until the provisions of this section have been complied with. An owner who has delivered possession of the vehicle to the transferee and has complied with the provisions of this section requiring action by him or her is not liable as owner for any damages thereafter resulting from operation of the vehicle.

AB133-ASA1-AA2, s. 2734hgh Section 2734hgh. 342.15 (6) of the statutes is amended to read:

AB133-ASA1-AA2,458,13 342.15 (6) (a) Except as provided in s. 342.16 with respect to a vehicle which is not a salvage vehicle, any transferee of a vehicle who fails to make application for a new certificate of title immediately upon transfer to him or her of a vehicle may be required to forfeit not more than $200. A certificate is considered to have been applied for when the application accompanied by the required fee has been delivered to the department or deposited in the mail properly addressed with postage prepaid.

AB133-ASA1-AA2,458,20 (b) Except as provided in s. 342.16 with respect to a vehicle which is not a salvage vehicle, any transferee of a vehicle who with intent to defraud fails to make application for a new certificate of title immediately upon transfer to him or her of a vehicle may be fined not more than $1,000 or imprisoned for not more than 30 days or both. A certificate is considered to have been applied for when the application accompanied by the required fee has been delivered to the department or deposited in the mail properly addressed with postage prepaid.

AB133-ASA1-AA2, s. 2734hgj Section 2734hgj. 342.16 (1) (a) of the statutes is amended to read:

AB133-ASA1-AA2,459,19 342.16 (1) (a) Except as provided in par. (c), if a dealer acquires a new or used vehicle that is not a salvage vehicle and holds it for resale, or acquires a salvage vehicle that is currently titled as a salvage vehicle and holds it for resale or accepts a vehicle for sale on consignment, the dealer may not submit to the department the certificate of title or application for certificate of title naming the dealer as owner of the vehicle. Upon transferring the vehicle to another person, the dealer shall immediately give the transferee on a form prescribed by the department a receipt for all title, registration, security interest and sales tax moneys paid to the dealer for transmittal to the department when required. The dealer shall promptly execute the assignment and warranty of title, showing the name and address of the transferee and of any secured party holding a security interest created or reserved at the time of the resale or sale on consignment, in the spaces provided therefor on the certificate or as the department prescribes. Within 7 business days following the sale or transfer, the dealer shall mail or deliver the certificate or application for certificate to the department with the transferee's application for a new certificate. A nonresident who purchases a motor vehicle from a dealer in this state may not, unless otherwise authorized by rule of the department, apply for a certificate of title issued for the vehicle in this state unless the dealer determines that a title is necessary to protect the interests of a secured party. The dealer is responsible for determining whether a title and perfection of security interest is required. The dealer is liable for any damages incurred by the department or any secured party for the dealer's failure to perfect a security interest which the dealer had knowledge of at the time of sale.

AB133-ASA1-AA2, s. 2734hgm Section 2734hgm. 342.16 (1) (c) of the statutes is amended to read:

AB133-ASA1-AA2,460,5 342.16 (1) (c) Except when all available spaces for a dealer's or wholesaler's reassignment on a certificate of title have been completed or as otherwise authorized by rules of the department, a dealer or wholesaler who acquires a new or used vehicle that is not a salvage vehicle and holds it for resale, or acquires a salvage vehicle that is currently titled as a salvage vehicle and holds it for resale or accepts a vehicle for sale on consignment may not apply for a certificate of title naming the dealer or wholesaler as owner of the vehicle. The rules may regulate the frequency of application by a dealer or wholesaler for transfer of registration or credits for registration from a previously registered vehicle to another vehicle that the dealer or wholesaler intends to register in his or her own name.

AB133-ASA1-AA2, s. 2734hgo Section 2734hgo. 342.16 (1) (d) of the statutes is amended to read:

AB133-ASA1-AA2,460,13 342.16 (1) (d) Unless exempted by rule of the department, a dealer or wholesaler who acquires a new or used vehicle that is not a salvage vehicle and holds it for resale or acquires a salvage vehicle currently titled as a salvage vehicle and holds it for resale shall make application for a certificate of title naming the dealer or wholesaler as owner of the vehicle when all of the available spaces for a dealer's or wholesaler's reassignment on the certificate of title for such vehicle have been completed.".

AB133-ASA1-AA2,460,14 966. Page 1344, line 2: after that line insert:

AB133-ASA1-AA2,460,15 " Section 2747s. 343.43 (1) (f) of the statutes is amended to read:

AB133-ASA1-AA2,460,18 343.43 (1) (f) Reproduce by any means whatever a copy of a license, unless the reproduction is done pursuant to rules promulgated by the department and for a valid business or occupational purpose; or".

AB133-ASA1-AA2,460,19 967. Page 1349, line 6: after that line insert:

AB133-ASA1-AA2,460,20 " Section 2761r. 348.15 (3) (bg) of the statutes is amended to read:

AB133-ASA1-AA2,461,6 348.15 (3) (bg) In the case of a vehicle or combination of vehicles transporting exclusively milk from the point of production to the primary market and the return of dairy supplies and dairy products from such primary market to the farm, the gross weight imposed on the highway by the wheels of any one axle may not exceed 21,000 pounds or, for 2 axles 8 or less feet apart, 37,000 pounds or, for groups of 3 or more consecutive axles more than 9 feet or more apart, a weight of 2,000 pounds more than is shown in par. (c), but not to exceed 80,000 pounds. This paragraph does not apply to the national system of interstate and defense highways, except for that portion of USH 51 between Wausau and STH 78 and that portion of STH 78 between USH 51 and the I 90/94 interchange near Portage upon their federal designation as I 39.".

AB133-ASA1-AA2,461,7 968. Page 1359, line 21: after that line insert:

AB133-ASA1-AA2,461,8 " Section 2818r. 409.104 (12m) of the statutes is created to read:

AB133-ASA1-AA2,461,10 409.104 (12m) To a transfer of an interest under a rent-to-own agreement under ch. 435; or".

AB133-ASA1-AA2,461,11 969. Page 1362, line 23: after that line insert:

AB133-ASA1-AA2,461,12 " Section 2822no. 421.202 (7m) of the statutes is created to read:

AB133-ASA1-AA2,461,13 421.202 (7m) A rent-to-own agreement under ch. 435;

AB133-ASA1-AA2, s. 2822nt Section 2822nt. 421.301 (9) of the statutes is amended to read:

AB133-ASA1-AA2,461,24 421.301 (9) "Consumer credit sale" means a sale of goods, services or an interest in land to a customer on credit where the debt is payable in instalments or a finance charge is imposed and includes any agreement in the form of a bailment of goods or lease of goods or real property if the bailee or lessee pays or agrees to pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value of the goods or real property involved and it is agreed that the bailee or lessee will become, or for no other or a nominal consideration has the option to become, the owner of the goods or real property upon full compliance with the terms of the agreement. "Consumer credit sale" does not include a rent-to-own agreement under ch. 435.

AB133-ASA1-AA2, s. 2822nu Section 2822nu. 421.301 (10) of the statutes is amended to read:

AB133-ASA1-AA2,462,9 421.301 (10) "Consumer credit transaction" means a consumer transaction between a merchant and a customer in which real or personal property, services or money is acquired on credit and the customer's obligation is payable in instalments or for which credit a finance charge is or may be imposed, whether such transaction is pursuant to an open-end credit plan or is a transaction involving other than open-end credit. The term includes consumer credit sales, consumer loans, consumer leases and transactions pursuant to open-end credit plans. "Consumer credit transaction" does not include a rent-to-own agreement under ch. 435.

AB133-ASA1-AA2, s. 2822nv Section 2822nv. 421.301 (11) of the statutes is amended to read:

AB133-ASA1-AA2,462,13 421.301 (11) "Consumer lease" means a lease of goods which a merchant makes to a customer for a term exceeding 4 months. "Consumer lease" does not include a rent-to-own agreement under ch. 435.".

AB133-ASA1-AA2,462,14 970. Page 1363, line 15: after that line insert:

AB133-ASA1-AA2,462,15 " Section 2822y. 423.201 of the statutes is amended to read:

AB133-ASA1-AA2,463,3 423.201 Definition. "Consumer approval transaction" means a consumer transaction other than a sale or lease or listing for sale of real property or a sale of goods at auction 1) which is initiated by face-to-face solicitation away from a regular place of business of the merchant or by mail or telephone solicitation directed to the particular customer and 2) which is consummated or in which the customer's offer to contract or other writing evidencing the transaction is received by the merchant away from a regular place of business of the merchant and involves the extension of credit or is a cash transaction in which the amount the customer pays exceeds $25. "Consumer approval transaction" shall in no event include a catalog sale which is not accompanied by any other solicitation or a consumer loan conducted and consummated entirely by mail. "Consumer approval transaction" does not include a rent-to-own agreement under ch. 435.

AB133-ASA1-AA2, s. 2822z Section 2822z. Chapter 435 of the statutes is created to read:

AB133-ASA1-AA2,463,6 CHAPTER 435 RENT-TO-OWN AGREEMENTS

AB133-ASA1-AA2,463,9 435.102 Scope. (1) Inapplicability of other laws. A rent-to-own agreement under this chapter is not governed by the laws relating to a security interest, as defined in s. 401.201 (37), or a lease, as defined in s. 411.103 (1) (j).

AB133-ASA1-AA2,463,10 (2) Exclusions. This chapter does not apply to any of the following:

AB133-ASA1-AA2,463,12 (a) Any agreement between a rental-purchase company and any person other than a lessee.

AB133-ASA1-AA2,463,14 (b) A lease or bailment of personal property if the property is intended to be used primarily for business, commercial or agricultural purposes.

AB133-ASA1-AA2,463,16 (c) A lease or bailment of personal property which is incidental to the lease of real property.

AB133-ASA1-AA2,463,17 (d) A lease of a motor vehicle, as defined in s. 218.01 (1) (m).

AB133-ASA1-AA2,463,19 (e) A credit sale, as defined in 15 USC 1602 (g) and in the regulations promulgated under that section.

AB133-ASA1-AA2,463,21 (f) A consumer lease, as defined in 15 USC 1667 (1) and in the regulations promulgated under that section.

AB133-ASA1-AA2,463,22 435.201 Definitions. In this chapter:

AB133-ASA1-AA2,463,23 (1) "Department" means the department of financial institutions.

AB133-ASA1-AA2,463,25 (2) "Lessee" means an individual who rents personal property under a rent-to-own agreement.

AB133-ASA1-AA2,464,1 (3) "Rental property" means property rented under a rent-to-own agreement.

AB133-ASA1-AA2,464,4 (4) "Rental-purchase company" means a person who regularly provides the use of property through rent-to-own agreements and to whom rental payments are initially payable under the terms of a particular rent-to-own agreement.

AB133-ASA1-AA2,464,7 (5) "Rent-to-own agreement" means an agreement between a rental-purchase company and a lessee for the use of personal property if all of the following conditions are met:

AB133-ASA1-AA2,464,9 (a) The personal property is to be used primarily for personal, family or household purposes.

AB133-ASA1-AA2,464,11 (b) The agreement has an initial term of 4 months or less and is automatically renewable with each payment after the initial term.

AB133-ASA1-AA2,464,13 (c) The agreement does not obligate or require the lessee to renew the agreement beyond the initial term.

AB133-ASA1-AA2,464,15 (d) The agreement permits, but does not obligate, the lessee to acquire ownership of the personal property.

AB133-ASA1-AA2,464,24 435.301 Registration. (1) Requirement; application. Every person engaging in business as a rental-purchase company in this state shall file a registration statement with the department within 30 days after the date on which the person commences business in this state and no later than February 28 of each year thereafter. Except during the first 30 days after the date on which the person commences business in this state, no person may engage in business as a rental-purchase company in this state without a valid unsuspended registration filed under this subsection. A registration statement under this section shall include all of the following information:

AB133-ASA1-AA2,464,25 (a) The name of the rental-purchase company.

AB133-ASA1-AA2,465,1 (b) The name under which the rental-purchase company transacts business.

AB133-ASA1-AA2,465,2 (c) The address of the rental-purchase company's principal office.

AB133-ASA1-AA2,465,4 (d) The addresses of all stores or other retail locations in this state at which the rental-purchase company offers rent-to-own agreements to potential lessees.

AB133-ASA1-AA2,465,6 (e) The address of the rental-purchase company's designated agent upon whom service of process may be made in this state.

AB133-ASA1-AA2,465,8 (2) Rules. The department shall promulgate rules and prescribe forms for the efficient administration of this section.

AB133-ASA1-AA2,465,12 435.302 Registration fees. (1) When due. Any rental-purchase company required to register under s. 435.301 shall pay a registration fee to the department when the rental-purchase company files the registration statement required under s. 435.301.

AB133-ASA1-AA2,465,16 (2) Amount. The amount of the registration fee shall be $25 per store or other retail location in this state at which the rental-purchase company offers rent-to-own agreements to potential lessees. However, the registration fee shall not be less than $50 nor more than $750.

AB133-ASA1-AA2,465,19 435.303 Examination of books and records. (1) Purpose of examination. The department may examine the books and records of any rental-purchase company for the purpose of determining compliance with this chapter.

AB133-ASA1-AA2,466,2 (2) Availability of books and records. A rental-purchase company shall make its books and records reasonably available for inspection by the department. If the rental-purchase company's books and records are located outside of this state, the rental-purchase company shall, at the rental-purchase company's option, either make the books and records available to the department at a convenient location in this state or pay the reasonable and necessary expenses for the department to examine the books and records at the location where they are maintained.

AB133-ASA1-AA2,466,6 (3) Method of bookkeeping. A rental-purchase company shall use generally accepted accounting principles and practices in keeping its books and records so that the department may determine if the rental-purchase company is in compliance with this chapter.

AB133-ASA1-AA2,466,11 (4) Destruction of records; when authorized. A rental-purchase company shall keep records relating to each rent-to-own agreement entered into by the rental-purchase company and the payments made under each rent-to-own agreement for at least 2 years after the date on which the rent-to-own agreement is terminated.

AB133-ASA1-AA2,466,14 435.304 Suspension or revocation of registration. (1) Grounds. The department may issue an order suspending or revoking a rental-purchase company's registration if any of the following conditions is met:

AB133-ASA1-AA2,466,17 (a) The rental-purchase company has violated any provision of this chapter, the violation is not isolated or inadvertent, and the department determines that the violation justifies the suspension or revocation of the registration.

AB133-ASA1-AA2,466,21 (b) The department becomes aware that any fact or condition exists which, if it had existed at the time that the rental-purchase company first filed the registration statement, would have warranted the department's refusal to honor the registration.

AB133-ASA1-AA2,466,23 (c) The rental-purchase company has failed to pay the registration fee under s. 435.302.

AB133-ASA1-AA2,466,25 (2) Procedure. The following procedure applies to every order of the department that suspends or revokes a registration under this chapter:

AB133-ASA1-AA2,467,4 (a) The department shall provide a written notice to the rental-purchase company registered under s. 435.301 of the department's intent to issue an order suspending or revoking the rental-purchase company's registration. The notice shall specify the grounds for and the effective date of the proposed order.

AB133-ASA1-AA2,467,9 (b) The rental-purchase company shall file with the department a written response to the allegations contained in the notice within 20 days after receiving the notice. The rental-purchase company's written response may contain a request for a hearing pursuant to s. 227.42. If the written response does not contain a request for a hearing pursuant to s. 227.42, the right to a hearing is waived.

AB133-ASA1-AA2,467,14 (c) If a written response containing a request for a hearing pursuant to s. 227.42 is received by the department within the time provided under par. (b) and if, in the opinion of the department, the matter satisfies one of the conditions under s. 227.42 (1) (a) to (d), the matter shall be scheduled for a contested hearing to commence within 60 days after the date on which the department receives the written response.

AB133-ASA1-AA2,467,22 (d) If the rental-purchase company fails to file a written response within the time provided under par. (b) or if the rental-purchase company files a timely written response but fails to request a hearing pursuant to s. 227.42, the department may issue an order suspending or revoking the rental-purchase company's registration under sub. (1). If the rental-purchase company files a timely written response containing a request for a hearing pursuant to s. 227.42, any order of the department suspending or revoking the rental-purchase company's registration shall be stayed pending completion of proceedings under ch. 227.

AB133-ASA1-AA2,467,25 435.401 General requirements of disclosure. (1) Form, location, size and time of disclosure. All information required under s. 435.402 shall satisfy all of the following:

AB133-ASA1-AA2,468,1 (a) The information shall be clearly and conspicuously disclosed.

AB133-ASA1-AA2,468,2 (b) The information shall be disclosed in writing.

AB133-ASA1-AA2,468,4 (c) The information shall be disclosed on the face of the rent-to-own agreement above the line for the lessee's signature.

AB133-ASA1-AA2,468,5 (d) The information shall be disclosed in not less than 8-point standard type.

AB133-ASA1-AA2,468,7 (e) The information shall be disclosed at or before the time that the lessee becomes legally obligated under the rent-to-own agreement.

AB133-ASA1-AA2,468,11 (2) Accuracy of disclosure. All information required under s. 435.402 must be accurate as of the time that it is disclosed. If any information subsequently becomes inaccurate as a result of any act, occurrence or agreement by the lessee, the resulting inaccuracy is not a violation of this chapter.

AB133-ASA1-AA2,468,16 (3) Copy of rent-to-own agreement. The rental-purchase company shall provide the lessee with a copy of the completed rent-to-own agreement signed by the lessee. If more than one lessee is legally obligated under the same rent-to-own agreement, delivery of a copy of the completed rent-to-own agreement to one of the lessees shall satisfy this subsection.

AB133-ASA1-AA2,468,19 435.402 Required provisions of rent-to-own agreement. A rental-purchase company shall include all of the following information, to the extent applicable, in every rent-to-own agreement:

AB133-ASA1-AA2,468,24 (1) Description. A brief description of the rental property, sufficient to identify the rental property to the lessee and the rental-purchase company, including an identification number, and a statement indicating whether the rental property is new or used. A statement that incorrectly indicates that new rental property is used is not a violation of this chapter.

AB133-ASA1-AA2,469,3 (2) Cash price. The price at which the rental-purchase company would have sold the rental property to the lessee for cash on the date on which the rent-to-own agreement is executed.

AB133-ASA1-AA2,469,4 (3) Rental Payment. The periodic rental payment for the rental property.

AB133-ASA1-AA2,469,9 (4) Up-front payment. The payment required of the lessee at the time that the agreement is executed or the rental property is delivered, whichever is later, including the initial rental payment, any application or processing charge, any delivery fee, any charge for a liability damage waiver or for other optional services agreed to by the lessee, and the applicable tax.

AB133-ASA1-AA2,469,11 (5) Payment to acquire ownership. The total number, total dollar amount and due date of all rental payments necessary to acquire ownership of the rental property.

AB133-ASA1-AA2,469,17 (6) Other charges. A statement that the total dollar amount of all rental payments necessary to acquire ownership of the rental property does not include other charges that a lessee may incur, such as application, processing or delivery charges, and late payment, reinstatement, default and pickup fees. These charges shall be separately identified in the rental-purchase agreement and the amount of each charge and fee disclosed.