Amendment ASA1-AB759

AB759-ASA1,16,4 (3) That the lessee does not acquire ownership of the property if the lessee fails to make all payments necessary to acquire ownership of the property.

AB759-ASA1,16,9 420.11 Price cards displayed. (1) Price cards generally. Except as provided in sub. (2), a card or tag that clearly and conspicuously states all of the following shall be displayed on or next to any property displayed or offered primarily for rental-purchase by a rental-purchase company for rent under a rental-purchase agreement:

AB759-ASA1,16,10 (a) The cash price that a lessee would pay to purchase the property.

AB759-ASA1,16,11 (b) The amount and timing of the rental payments.

AB759-ASA1,16,13 (c) The total number and total amount of all rental payments necessary to acquire ownership of the property under a rental-purchase agreement.

AB759-ASA1,16,14 (d) Whether the property is new or used.

AB759-ASA1,16,20 (2) Exceptions. If property is offered for rent under a rental-purchase agreement through a catalog, whether print or electronic, or if the size of the property is such that displaying a card or tag on or next to the property would be impractical, a rental-purchase company may make the disclosures required under sub. (1) in a catalog, list, or disclosure sheet if the catalog, list, or disclosure sheet is readily available to prospective lessees and provided upon request.

AB759-ASA1,16,25 420.12 Notice to the department. (1) Initial notice. A rental-purchase company shall file notice with the department, in the form and manner prescribed by the department, within 30 days after commencing business in this state. The notice shall set forth the location of each place of business in this state where the rental-purchase company conducts any operations regulated under this chapter.

AB759-ASA1,17,5 (2) Annual notice. After filing the initial notice in sub. (1), a rental-purchase company shall file annually, on or before January 31 of each year, in the form and manner prescribed by the department, a list setting forth the location of each place of business in this state where the rental-purchase company conducts any operations regulated under this chapter.

AB759-ASA1,17,8 (3) Annual fee. (a) A rental-purchase company shall remit an annual fee with the report required by sub. (2). The amount of the annual fee shall be calculated according to the sum of the following, but may not exceed $2,500:

AB759-ASA1,17,9 1. One hundred dollars for each of the first 10 locations in the state.

AB759-ASA1,17,10 2. Fifty dollars for each additional location in this state.

AB759-ASA1,17,15 (b) If a rental-purchase company fails to timely pay the annual fee on or before January 31, the department shall provide written notice to the rental-purchase company. If the rental-purchase company fails to pay within 30 days after issuance of this notice, the department may order the rental-purchase company to cease operating until the annual fee is paid.

AB759-ASA1,17,18 420.13 Rule making. (1) Generally. Subject to subs. (2) and (3), the department may promulgate rules under ch. 227 necessary to administer and enforce the requirements of this chapter.

AB759-ASA1,17,23 (2) Model agreement. A rule promulgated by the department may include a model rental-purchase agreement that meets the requirements of this chapter. The department may not require a rental-purchase company to use this form, but if a rental-purchase company does use this form, the form is conclusively presumed to have been executed in compliance with ss. 420.02, 420.03, and 420.04.

AB759-ASA1,17,25 (3) Prohibited rules. No rule promulgated by the department may do any of the following:

AB759-ASA1,18,1 (a) Require disclosures not explicitly required or permitted by this chapter.

AB759-ASA1,18,3 (b) Establish a requirement for, or limitation on, the pricing offered to a consumer by a rental-purchase company.

AB759-ASA1,18,6 (c) Establish any other requirement for, or limitation on, a rental-purchase agreement not explicitly required or permitted by this chapter or that is more restrictive than this chapter.

AB759-ASA1,18,10 420.14 Penalties. (1) Award of damages. Subject to subs. (3) and (6), a rental-purchase company that violates any provision of this chapter, rule promulgated under this chapter, or order issued under this chapter pertaining to a lessee is liable to the lessee in an amount equal to the greater of the following:

AB759-ASA1,18,11 (a) The actual damages sustained by the lessee as a result of the violation.

AB759-ASA1,18,14 (b) If the action is not brought as a class action, 25 percent of the total payments necessary for the lessee to acquire ownership of the rental property, but not less than $100 nor more than $1,000.

AB759-ASA1,18,16 (c) If the action is brought as a class action, the amount the court determines to be appropriate, subject to sub. (2).

AB759-ASA1,18,24 (2) Damage limitations in class actions. The total recovery by all lessees in any class action or series of class actions arising out of the same violation may not be more than the lesser of $500,000 or 1 percent of the net worth of the rental-purchase company. In determining the amount of any award in a class action, the court shall consider, among other relevant factors, the amount of actual damages awarded, the frequency and persistence of the violation, the rental-purchase company's resources, and the extent to which the rental-purchase company's violation was intentional.

AB759-ASA1,19,5 (3) Unintentional violations. A rental-purchase company is not liable for any violation of this chapter if the rental-purchase company shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error, and the rental-purchase company maintained procedures reasonably adapted to avoid such an error.

AB759-ASA1,19,9 (4) Costs and attorney fees. If a court awards any monetary amount under sub. (1) to a lessee, the rental-purchase company shall also be liable to the lessee for the costs of the action and, notwithstanding s. 814.04 (1), for reasonable attorney fees as determined by the court.

AB759-ASA1,19,15 (5) Exclusive penalties for violations of this chapter; applicability of other laws. (a) The penalties under this section and ss. 100.18 and 100.20 provide the exclusive remedies for a violation of any provision of this chapter, rule promulgated under this chapter, or order issued under this chapter. The application of the penalties under this section and ss. 100.18 and 100.20 are all subject to subs. (3) and (6).

AB759-ASA1,19,18 (b) Except as provided in par. (a) and s. 420.15, laws other than this chapter that relate to a transaction governed by this chapter are not preempted by this chapter.

AB759-ASA1,19,24 (6) Cure of noncompliance. A rental-purchase company is not liable for any violation of any provision of this chapter, rule promulgated under this chapter, or order issued under this chapter if the rental-purchase company notifies the consumer of its noncompliance with this chapter, rule promulgated under this chapter, or order issued under this chapter and corrects the noncompliance within 45 days of the earliest of any of the following:

AB759-ASA1,19,25 (a) The receipt of a written notice of the noncompliance from the consumer.

AB759-ASA1,20,1 (b) The discovery of the noncompliance by the rental-purchase company.

AB759-ASA1,20,10 420.15 Inapplicability of Consumer Act and ch. 409. A rental-purchase company that has provided notice to the department under this chapter is not, with respect to rental-purchase agreements entered into by the rental-purchase company, subject to the Wisconsin Consumer Act, chs. 421 to 427, or any related rule or order adopted under chs. 421 to 427, or to any provision of ch. 409, and any rental-purchase agreement entered into by such a rental-purchase company shall not be construed or regulated as a security interest, credit sale, retail installment sale, conditional sale, or any other form of consumer credit, nor considered to be the creation of a debt or extension of credit.

AB759-ASA1,3 Section 3 . 421.202 (11) of the statutes is created to read:

AB759-ASA1,20,14 421.202 (11) Rental-purchase agreements entered into by a rental-purchase company that has provided notice to the department of financial institutions under ch. 420.

AB759-ASA1,4 Section 4. Initial applicability.

AB759-ASA1,20,17 (1) This act first applies to rental-purchase agreements, and conduct pursuant to those agreements, that are entered into on the effective date of this subsection.

AB759-ASA1,5 Section 5. Effective date.

AB759-ASA1,20,20 (1) This act takes effect on the first day of the 7th month beginning after publication.

AB759-ASA1,20,21 (End)