Amendment AA1-SB251

ASSEMBLY AMENDMENT 1, TO 2005 SENATE BILL 251

April 18, 2006 - Offered by Committee on Small Business.

SB251-AA1,1,1 At the locations indicated, amend the bill as follows:

SB251-AA1,1,3 1. Page 1, line 3: after "crews" insert "and independent temporary resident direct sellers".

SB251-AA1,1,4 2. Page 7, line 2: after that line insert:

SB251-AA1,1,5 " Section 1g. 21.72 (1) (a) 10m. of the statutes is created to read:

SB251-AA1,1,6 21.72 (1) (a) 10m. A permit issued under s. 103.345.".

SB251-AA1,1,7 3. Page 7, line 5: after that line insert:

SB251-AA1,1,8 " Section 2g. 60.33 (8p) of the statutes is created to read:

SB251-AA1,1,10 60.33 (8p) Traveling sales crew worker permits. Stamp or endorse traveling sales crew worker permits at the request of an employer under s. 103.34 (11) (c).

SB251-AA1, s. 2j Section 2j. 60.33 (8r) of the statutes is created to read:

SB251-AA1,2,3 60.33 (8r) Independent temporary resident direct seller permits. Stamp or endorse independent temporary resident direct seller permits at the request of a permit holder under s. 103.345 (2) (g).

SB251-AA1, s. 2m Section 2m. 61.25 (6p) of the statutes is created to read:

SB251-AA1,2,6 61.25 (6p) To stamp or endorse traveling sales crew worker permits at the request of an employer under s. 103.34 (11) (c).

SB251-AA1, s. 2p Section 2p. 61.25 (6r) of the statutes is created to read:

SB251-AA1,2,9 61.25 (6r) To stamp or endorse independent temporary resident direct seller permits at the request of a permit holder under s. 103.345 (2) (g).

SB251-AA1, s. 2r Section 2r. 62.09 (11) (L) of the statutes is created to read:

SB251-AA1,2,12 62.09 (11) (L) The clerk shall stamp or endorse traveling sales crew worker permits at the request of an employer under s. 103.34 (11) (c).

SB251-AA1, s. 2t Section 2t. 62.09 (11) (m) of the statutes is created to read:

SB251-AA1,2,16 62.09 (11) (m) The clerk shall stamp or endorse independent temporary resident direct seller permits at the request of a permit holder under s. 103.345 (2) (g).".

SB251-AA1,2,19 4. Page 9, line 7: after "convention" insert ", 2 or more individuals who are traveling together for the purpose of engaging in independent temporary resident direct seller activities, as defined in s. 103.345 (1) (d),".

SB251-AA1,2,20 5. Page 9, line 9: after "the sale" insert "by traveling sales crew workers".

SB251-AA1,2,21 6. Page 16, line 18: after that line insert:

SB251-AA1,3,5 "(c) At the time an individual is provided with a disclosure statement under par. (a), the employer shall also provide the individual with a copy of the laws and rules of this state relating to the sale of goods or services to consumers from house to house, on any street, or in any other place that is open to the public. If the individual accepts the offer of employment, the individual shall sign a statement acknowledging receipt of the copy of those laws and rules and the employer shall file with the department of agriculture, trade and consumer protection the name of the individual and a copy of the statement signed by the individual.".

SB251-AA1,3,6 7. Page 26, line 18: after that line insert:

SB251-AA1,3,7 " Section 5g. 103.345 of the statutes is created to read:

SB251-AA1,3,9 103.345 Regulation of independent temporary resident direct sellers. (1) Definitions. In this section:

SB251-AA1,3,12 (a) "Financial institution" means a bank, savings bank, savings and loan association, or credit union that is authorized to do business under state or federal laws relating to financial institutions.

SB251-AA1,3,18 (b) "Independent temporary resident direct seller" means an individual 18 years of age or over who works as an independent contractor, who is absent overnight from his or her permanent place of residence for the purpose of engaging in independent temporary resident direct seller activities, and who has established a temporary residence with the intent of residing in that residence for not less than 31 days.

SB251-AA1,3,21 (c) "Independent temporary resident direct seller activities" means the sale by an independent temporary resident direct seller of goods or services to consumers from house to house, on any street, or in any other place that is open to the public.

SB251-AA1,3,22 (d) "Municipality" means a county, city, village, or town.

SB251-AA1,3,24 (e) "Permit" means a permit issued under this section authorizing an individual to work as an independent temporary resident direct seller.

SB251-AA1,4,2 (f) "Principal" means a person that contracts with an individual to work as an independent temporary resident direct seller.

SB251-AA1,4,7 (g) "Solicitor's license" means a license, permit, or registration issued under a municipal ordinance that requires an individual to obtain a license, permit, or registration before the individual may sell goods or services to consumers house to house, on any street, or in any other place that is open to the public in the municipality.

SB251-AA1,4,12 (2) Permit required. (a) No individual may work as an independent temporary resident direct seller unless the individual first obtains a permit as provided in this subsection. To obtain a permit, an individual shall complete an application under par. (b) and pay a permit fee determined by the department by rule promulgated under sub. (5) (a).

SB251-AA1,4,23 (b) An individual who intends to engage in independent temporary resident direct seller activities shall file an application for a permit with a municipality in which the individual intends to engage in those activities. An application under this paragraph shall contain the name, date of birth, permanent home address, and temporary residence address, as shown in the lodging agreement under subd. 2., of the applicant, the name of the applicant's principal, the address and phone number of the principal place of business of that principal, and a statement acknowledging that the applicant understands that issuance of a permit does not exempt the applicant from compliance with any municipal ordinance that requires the applicant to obtain a solicitor's license. An application under this paragraph shall also be accompanied by all of the following:

SB251-AA1,5,2 1. A copy of a written lodging agreement signed by the applicant and the person providing the lodging, showing the address of the temporary residence of the applicant and the dates on which the agreement begins and ends, which dates may not be less than 31 days apart.

SB251-AA1,5,5 2. Proof that the applicant has established an account with an office of a financial institution that is located not more than 30 miles from the applicant's temporary residence.

SB251-AA1,5,12 3. Proof of the applicant's age and identity in the form of a valid operator's license issued under ch. 343 or under the laws of any other state, an identification card issued under s. 343.50 or under a substantially similar law of another state, a military identification card, a valid passport, alien registration card, or any other identification document issued by a federal, state, local, or foreign governmental agency showing the name, address, signature, date of birth, and photograph of the applicant.

SB251-AA1,6,2 (c) On receipt of an application under par. (b) and payment of the permit fee under par. (a), the municipality shall determine whether the applicant meets the requirements under this section for issuance of a permit. If the municipality is satisfied that the applicant is 18 years of age or over and has established a temporary residence and account with a financial institution as required under par. (b), the municipality shall immediately issue a permit to the applicant. The permit shall be in a form prescribed by the department, which form shall include at a minimum the name, permanent home address, and temporary residence address of the permit holder, the name of the permit holder's principal, and the address and phone number of the principal place of business of that principal. A permit issued under this paragraph is valid for 4 months, unless sooner suspended, restricted, or revoked under par. (d), and is valid in every municipality in this state, but the issuance of such a permit does not exempt the permit holder from compliance with any municipal ordinance that requires the permit holder to obtain a solicitor's license.

SB251-AA1,6,4 (d) A municipality may suspend, revoke, restrict, or refuse to renew a permit if the municipality determines that any of the following applies:

SB251-AA1,6,6 1. The permit holder has made a material misrepresentation or false statement in the application for the permit.

SB251-AA1,6,8 2. The permit holder has failed to notify the municipality of any change in the information submitted in the application as required under par. (e).

SB251-AA1,6,13 3. The permit holder has failed to maintain a temporary residence as required under par. (b) 1. or an account with a financial institution as required under par. (b) 2., has had a solicitor's license suspended, revoked, restricted, or nonrenewed, has failed to pay a penalty imposed under sub. (4), or has otherwise failed to comply with this section or any rule promulgated under sub. (5).

SB251-AA1,6,16 (e) If any change occurs in any of the information submitted to a municipality under par. (b), the permit holder shall notify the municipality of that change within 30 days after the change occurs.

SB251-AA1,6,23 (f) An independent temporary resident direct seller shall carry at all times while engaged in independent temporary resident direct seller activities a copy of the permit obtained under par. (c) and shall exhibit that copy upon the request of any deputy of the department, law enforcement officer, or person with whom the independent temporary resident direct seller is doing business. Failure to exhibit a copy of a permit upon request under this paragraph is prima facie evidence of a violation of this section.

SB251-AA1,7,6 (g) Before an independent temporary resident direct seller may engage in any independent temporary resident direct seller activities in any city, village, or town, the independent temporary resident direct seller shall obtain from the clerk of the city, village, or town a stamp or endorsement on his or her permit obtained under par. (c). When an independent temporary resident direct seller obtains that stamp or endorsement, he or she shall provide notice that he or she will be engaging in independent temporary resident direct seller activities in that city, village, or town to the following:

SB251-AA1,7,8 1. The local police department, if the city, village, or town has a police department.

SB251-AA1,7,10 2. The sheriff of the county in which the city, village, or town is located, if the city, village, or town does not have a police department.

SB251-AA1,7,14 (h) Law enforcement officers of municipalities shall assist the department in enforcing this section by questioning individuals seen engaging in independent temporary resident direct seller activities and reporting to the department all cases of individuals apparently engaged in those activities in violation of this section.

SB251-AA1,7,23 (3) Duties of principal. (a) Before an individual begins performing independent temporary resident direct seller activities in this state, the individual's principal shall provide the individual with a copy of the laws and rules of this state relating to the sale of goods or services to consumers from house to house, on any street, or in any other place that is open to the public. On receipt of the copy of those laws and rules, the individual shall sign a statement acknowledging receipt of that copy and the principal shall file with the department of agriculture, trade and consumer protection the name of the individual and a copy of the statement signed by the individual.

SB251-AA1,8,6 (b) A principal that is not a resident of this state or is not authorized to do business in this state shall designate an agent upon whom service of process may be made in this state. The agent shall be a resident of this state or a corporation authorized to do business in this state. The designation shall be in writing and shall be filed with the department of financial institutions. If no designation is made and filed or if process cannot be served in this state upon the designated agent after reasonable effort, process may be served upon the department of financial institutions.

SB251-AA1,8,18 (4) Penalties; enforcement. (a) Any person that engages in independent temporary resident direct seller activities in violation of this section, any rule promulgated under sub. (5), or any order issued under this section, that contracts or offers to contract with or otherwise recruits an individual to work as an independent temporary resident direct seller in violation of this section, any rule promulgated under sub. (5), or any order issued under this section, or that hinders or delays the department or any law enforcement officer in the performance of their duties under this section, may be required to forfeit not less than $25 nor more than $1,000 for each day of a first offense and, for a 2nd or subsequent offense within 5 years, as measured from the dates on which the violations initially occurred, may be fined not less than $250 nor more than $5,000 for each day of the 2nd or subsequent offense or imprisoned not more than 30 days or both.

SB251-AA1,8,21 (b) The department may refer violations of this section or of any rules promulgated under sub. (5) for prosecution by the department of justice or the district attorney of the county in which the violation occurred.

SB251-AA1,9,2 (5) Duties of department. The department shall prescribe forms for applications under sub. (2) (b) and permits issued under sub. (2) (c) and shall make those forms available to applicants and municipalities on the department's Internet site. The department shall also promulgate rules to implement this section. Those rules shall include all of the following:

SB251-AA1,9,4 (a) A fee for obtaining a permit. The department shall determine the fee based on the reasonable cost of issuing a permit.

SB251-AA1,9,5 (b) Minimum requirements for the issuance of permits.

SB251-AA1,9,9 (6) Nonapplicability; nonpreemption. (a) This section does not apply to an individual who is engaged in a fund-raising sale for a nonprofit organization, as defined in s. 103.21 (2), a public school, as defined in s. 103.21 (5), or a private school, as defined in s. 103.21 (4).

SB251-AA1,9,14 (b) This section does not preempt a municipality from enacting a local ordinance regulating independent temporary resident direct seller activities. To the extent that a local ordinance regulates conduct that is regulated under this section, the local ordinance shall be at least as strict as the regulation of that conduct under this section.".

SB251-AA1,9,16 8. Page 27, line 7: delete "section 103.34 (13)" and substitute "sections 103.34 (13) and 103.345 (5)".

SB251-AA1,9,17 9. Page 27, line 15: delete "The treatment of".

SB251-AA1,9,18 (End)