LRBs0225/1
MDK:wlj:rs
2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2005 ASSEMBLY BILL 398
September 27, 2005 - Offered by Representative Wood.
AB398-ASA1,1,2
1An Act to create 422.422 of the statutes;
relating to: cash discounts for
2purchases.
Analysis by the Legislative Reference Bureau
Under current federal law, with certain exceptions, a credit card issuer may not,
by contract or otherwise, prohibit a person who honors a credit card from offering a
customer a discount to induce the customer to pay by cash, check, or similar means,
rather than by use of a credit card or its underlying account, for the purchase of
property or services. The exceptions pertain to transactions involving the following:
1) business, commercial, agricultural, or organization credit, rather than consumer
credit; 2) credit extended to entities, rather than natural persons; 3) amounts in
excess of $25,000; 4) public utility credit; 5) security or commodity accounts; 6) home
fuel budget plans; or 7) student loans.
This substitute amendment creates the same requirement under state law in
the Wisconsin Consumer Act (WCA). Because the requirement is created in the
WCA, the requirement applies only to consumer transactions involving $25,000 or
less. The WCA has additional exceptions that are comparable to the exceptions
under federal law pertaining to agricultural or organization credit and transactions
involving securities. The substitute amendment's requirement is enforced by the
Department of Financial Institutions, which has authority under current law to
enforce the WCA.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB398-ASA1,2,5
2422.422 Cash discounts. No credit card issuer may, by contract or otherwise,
3prohibit a merchant from offering a discount to a customer to induce the customer
4to pay by cash, check, or similar means, rather than by use of a credit card or its
5underlying account, for the purchase of goods or services.
