AB759-ASA1,16,4 3(3) That the lessee does not acquire ownership of the property if the lessee fails
4to make all payments necessary to acquire ownership of the property.
AB759-ASA1,16,9 5420.11 Price cards displayed. (1) Price cards generally. Except as
6provided in sub. (2), a card or tag that clearly and conspicuously states all of the
7following shall be displayed on or next to any property displayed or offered primarily
8for rental-purchase by a rental-purchase company for rent under a rental-purchase
9agreement:
AB759-ASA1,16,1010 (a) The cash price that a lessee would pay to purchase the property.
AB759-ASA1,16,1111 (b) The amount and timing of the rental payments.
AB759-ASA1,16,1312 (c) The total number and total amount of all rental payments necessary to
13acquire ownership of the property under a rental-purchase agreement.
AB759-ASA1,16,1414 (d) Whether the property is new or used.
AB759-ASA1,16,20 15(2) Exceptions. If property is offered for rent under a rental-purchase
16agreement through a catalog, whether print or electronic, or if the size of the property
17is such that displaying a card or tag on or next to the property would be impractical,
18a rental-purchase company may make the disclosures required under sub. (1) in a
19catalog, list, or disclosure sheet if the catalog, list, or disclosure sheet is readily
20available to prospective lessees and provided upon request.
AB759-ASA1,16,25 21420.12 Notice to the department. (1) Initial notice. A rental-purchase
22company shall file notice with the department, in the form and manner prescribed
23by the department, within 30 days after commencing business in this state. The
24notice shall set forth the location of each place of business in this state where the
25rental-purchase company conducts any operations regulated under this chapter.
AB759-ASA1,17,5
1(2) Annual notice. After filing the initial notice in sub. (1), a rental-purchase
2company shall file annually, on or before January 31 of each year, in the form and
3manner prescribed by the department, a list setting forth the location of each place
4of business in this state where the rental-purchase company conducts any
5operations regulated under this chapter.
AB759-ASA1,17,8 6(3) Annual fee. (a) A rental-purchase company shall remit an annual fee with
7the report required by sub. (2). The amount of the annual fee shall be calculated
8according to the sum of the following, but may not exceed $2,500:
AB759-ASA1,17,99 1. One hundred dollars for each of the first 10 locations in the state.
AB759-ASA1,17,1010 2. Fifty dollars for each additional location in this state.
AB759-ASA1,17,1511 (b) If a rental-purchase company fails to timely pay the annual fee on or before
12January 31, the department shall provide written notice to the rental-purchase
13company. If the rental-purchase company fails to pay within 30 days after issuance
14of this notice, the department may order the rental-purchase company to cease
15operating until the annual fee is paid.
AB759-ASA1,17,18 16420.13 Rule making. (1) Generally. Subject to subs. (2) and (3), the
17department may promulgate rules under ch. 227 necessary to administer and
18enforce the requirements of this chapter.
AB759-ASA1,17,23 19(2) Model agreement. A rule promulgated by the department may include a
20model rental-purchase agreement that meets the requirements of this chapter. The
21department may not require a rental-purchase company to use this form, but if a
22rental-purchase company does use this form, the form is conclusively presumed to
23have been executed in compliance with ss. 420.02, 420.03, and 420.04.
AB759-ASA1,17,25 24(3) Prohibited rules. No rule promulgated by the department may do any of
25the following:
AB759-ASA1,18,1
1(a) Require disclosures not explicitly required or permitted by this chapter.
AB759-ASA1,18,32 (b) Establish a requirement for, or limitation on, the pricing offered to a
3consumer by a rental-purchase company.
AB759-ASA1,18,64 (c) Establish any other requirement for, or limitation on, a rental-purchase
5agreement not explicitly required or permitted by this chapter or that is more
6restrictive than this chapter.
AB759-ASA1,18,10 7420.14 Penalties. (1) Award of damages. Subject to subs. (3) and (6), a
8rental-purchase company that violates any provision of this chapter, rule
9promulgated under this chapter, or order issued under this chapter pertaining to a
10lessee is liable to the lessee in an amount equal to the greater of the following:
AB759-ASA1,18,1111 (a) The actual damages sustained by the lessee as a result of the violation.
AB759-ASA1,18,1412 (b) If the action is not brought as a class action, 25 percent of the total payments
13necessary for the lessee to acquire ownership of the rental property, but not less than
14$100 nor more than $1,000.
AB759-ASA1,18,1615 (c) If the action is brought as a class action, the amount the court determines
16to be appropriate, subject to sub. (2).
AB759-ASA1,18,24 17(2) Damage limitations in class actions. The total recovery by all lessees in
18any class action or series of class actions arising out of the same violation may not
19be more than the lesser of $500,000 or 1 percent of the net worth of the
20rental-purchase company. In determining the amount of any award in a class action,
21the court shall consider, among other relevant factors, the amount of actual damages
22awarded, the frequency and persistence of the violation, the rental-purchase
23company's resources, and the extent to which the rental-purchase company's
24violation was intentional.
AB759-ASA1,19,5
1(3) Unintentional violations. A rental-purchase company is not liable for any
2violation of this chapter if the rental-purchase company shows by a preponderance
3of the evidence that the violation was not intentional and resulted from a bona fide
4error, and the rental-purchase company maintained procedures reasonably adapted
5to avoid such an error.
AB759-ASA1,19,9 6(4) Costs and attorney fees. If a court awards any monetary amount under
7sub. (1) to a lessee, the rental-purchase company shall also be liable to the lessee for
8the costs of the action and, notwithstanding s. 814.04 (1), for reasonable attorney fees
9as determined by the court.
AB759-ASA1,19,15 10(5) Exclusive penalties for violations of this chapter; applicability of other
11laws.
(a) The penalties under this section and ss. 100.18 and 100.20 provide the
12exclusive remedies for a violation of any provision of this chapter, rule promulgated
13under this chapter, or order issued under this chapter. The application of the
14penalties under this section and ss. 100.18 and 100.20 are all subject to subs. (3) and
15(6).
AB759-ASA1,19,1816 (b) Except as provided in par. (a) and s. 420.15, laws other than this chapter
17that relate to a transaction governed by this chapter are not preempted by this
18chapter.
AB759-ASA1,19,24 19(6) Cure of noncompliance. A rental-purchase company is not liable for any
20violation of any provision of this chapter, rule promulgated under this chapter, or
21order issued under this chapter if the rental-purchase company notifies the
22consumer of its noncompliance with this chapter, rule promulgated under this
23chapter, or order issued under this chapter and corrects the noncompliance within
2445 days of the earliest of any of the following:
AB759-ASA1,19,2525 (a) The receipt of a written notice of the noncompliance from the consumer.
AB759-ASA1,20,1
1(b) The discovery of the noncompliance by the rental-purchase company.
AB759-ASA1,20,10 2420.15 Inapplicability of Consumer Act and ch. 409. A rental-purchase
3company that has provided notice to the department under this chapter is not, with
4respect to rental-purchase agreements entered into by the rental-purchase
5company, subject to the Wisconsin Consumer Act, chs. 421 to 427, or any related rule
6or order adopted under chs. 421 to 427, or to any provision of ch. 409, and any
7rental-purchase agreement entered into by such a rental-purchase company shall
8not be construed or regulated as a security interest, credit sale, retail installment
9sale, conditional sale, or any other form of consumer credit, nor considered to be the
10creation of a debt or extension of credit.
AB759-ASA1,3 11Section 3 . 421.202 (11) of the statutes is created to read:
AB759-ASA1,20,1412 421.202 (11) Rental-purchase agreements entered into by a rental-purchase
13company that has provided notice to the department of financial institutions under
14ch. 420.
AB759-ASA1,4 15Section 4. Initial applicability.
AB759-ASA1,20,1716 (1) This act first applies to rental-purchase agreements, and conduct pursuant
17to those agreements, that are entered into on the effective date of this subsection.
AB759-ASA1,5 18Section 5. Effective date.
AB759-ASA1,20,2019 (1) This act takes effect on the first day of the 7th month beginning after
20publication.
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