April 30, 1997 - Introduced by Senators Risser, Huelsman, Clausing, Panzer,
Breske, Farrow
and Rosenzweig, cosponsored by Representatives M.
Lehman, Hanson, Goetsch, R. Young, Dobyns, Jensen, La Fave, Nass, Powers,
Olsen, Sykora, Kelso, Plale
and Wasserman. Referred to Committee on
Judiciary, Campaign Finance Reform and Consumer Affairs.
SB193,1,6 1An Act to renumber and amend 946.68 (1); to amend 409.404 (1) (d), 706.13
2(1), 943.60 (1), 946.68 (2) and 946.69 (2) (intro.); and to create 946.68 (1g) and
3946.68 (1r) (c) of the statutes; relating to: criminal slander of title, civil slander
4of title, simulating legal process, falsely assuming to act as a public officer,
5public employe or utility employe, failing to file a statement terminating a
6security interest under a financing statement and providing penalties.
Analysis by the Legislative Reference Bureau
This bill changes current law governing criminal and civil slander of title,
simulating legal process, falsely assuming to act as a public officer, public employe
or utility employe and failure to file a statement terminating a security interest
under a financing statement. Specifically, current law, and the changes made by this
bill, are as follows:
Slander of title
The current law prohibition against slander of title provides that no person may
submit for filing, entering or recording any legal instrument relating to title in real
or personal property if he or she knows that the contents or any part of the contents
of the instrument are false, a sham or frivolous. This bill specifies that a financing
statement relating to a security interest in property is included in the kinds of legal
instruments covered by this prohibition.

Currently, a person who violates the prohibition against slander of title may be
subject to civil penalties or criminal penalties or both. The civil penalties include
punitive damages of $1,000 plus any actual damages caused by the filing, entering
or recording. The criminal penalties are imprisonment of not more than 2 years or
a fine of not more than $10,000 or both. This bill increases the criminal penalties for
violating the prohibition by providing that a violator may be imprisoned for not more
than 5 years or fined not more than $10,000 or both.
Simulating legal process
Under current law, no person may, with the intent to induce payment of a claim,
send or deliver to another person any document that simulates a summons,
complaint or court process. A person who violates this prohibition may be
imprisoned for not more than 90 days or fined not more than $1,000 or both.
The bill expands the prohibition under current law by providing that no person
may send or deliver a document that simulates any legal process and by removing
the requirement that the simulated legal process be sent or delivered with the intent
to induce payment of a claim. The bill also increases the penalties for violating the
prohibition by providing that a violator may be imprisoned for not more than 2 years
or fined not more than $10,000 or both, except that if the document is sent or
delivered with the intent to induce payment of a claim or if the document simulates
any criminal process the violator may be imprisoned for not more than 5 years or
fined not more than $10,000 or both.
Falsely assuming to act as a public officer, public employe or employe of a
utility
Under current law, no person may do any of the following: 1) assume to act in
an official capacity or assume to perform an official function if the person knows that
he or she is not the public officer, public employe or utility employe that he or she
assumes to be; or 2) exercise any function of a public office if the person knows that
he or she is not qualified to exercise that function or that he or she no longer has the
right to exercise that function. A person who violates these prohibitions may be
imprisoned for not more than 9 months or fined not more than $10,000 or both. This
bill increases the penalty for violating these prohibitions by providing that a violator
may be imprisoned for not more than 2 years or fined not more than $10,000 or both.
Failure to terminate a security interest under a financing statement
Under current law, a person having a security interest in goods (a secured
party) must, in certain circumstances, file a Uniform Commercial Code financing
statement in order to perfect the security interest in the goods. Depending on the
type of goods, the financing statement must be filed with a county register of deeds
or the department of financial institutions. If, after the financing statement is filed,
there ceases to be an outstanding obligation secured by the security interest
perfected by the financing statement, the secured party must generally file a
termination statement to the effect that the secured party no longer claims a security
interest under the financing statement. A secured party who fails to file a
termination statement when that is required is liable to the owner of the goods for
$25 and for any loss caused to the owner by the failure to file the termination
statement.

This bill increases the penalty for failing to file a termination statement by
providing that the secured party is liable to the owner for $500 and, in addition to
paying the owner's losses for the failure, is liable for reasonable attorney fees and
court costs incurred by the owner due to the secured party's failure to file the
termination statement.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB193, s. 1 1Section 1. 409.404 (1) (d) of the statutes is amended to read:
SB193,3,72 409.404 (1) (d) Failure to file a termination statement. If the affected secured
3party fails to file a termination statement as required by this subsection, or to send
4such a termination statement within 10 days after receipt of the debtor's written
5demand the secured party is liable to the debtor for $25 $500, and in addition is liable
6for any loss caused to the debtor by such failure and for reasonable attorney fees and
7court costs incurred by the debtor due to such failure
.
SB193, s. 2 8Section 2. 706.13 (1) of the statutes is amended to read:
SB193,3,179 706.13 (1) In addition to any criminal penalty or civil remedy provided by law,
10any person who submits for filing, entering in the judgment and lien docket or
11recording, any lien, claim of lien, lis pendens, writ of attachment , financing
12statement
or any other instrument relating to a security interest in or the title in to
13real or personal property, knowing and who knows or should have known that the
14contents or any part of the contents to be of the instrument are false, a sham or
15frivolous, is liable in tort to any person interested in the property whose title is
16thereby impaired, for punitive damages of $1,000 plus any actual damages caused
17by the filing, entering or recording.
SB193, s. 3 18Section 3. 943.60 (1) of the statutes is amended to read:
SB193,4,6
1943.60 (1) Any person who submits for filing, entering or recording any lien,
2claim of lien, lis pendens, writ of attachment, financing statement or any other
3instrument relating to a security interest in or title in to real or personal property,
4knowing and who knows or should have known that the contents or any part of the
5contents to be of the instrument are false, a sham or frivolous, is guilty of a Class E
6D felony.
SB193, s. 4 7Section 4. 946.68 (1) of the statutes is renumbered 946.68 (1r) (a) and
8amended to read:
SB193,4,119 946.68 (1r) (a) Whoever Except as provided in pars. (b) and (c), whoever sends
10or delivers to another any document which simulates a summons, complaint, or court
11legal process is guilty of a Class E felony.
SB193,4,13 12(b) If the document under par. (a) is sent or delivered with intent thereby to
13induce payment of a claim, the person is guilty of a Class B misdemeanor D felony.
SB193, s. 5 14Section 5. 946.68 (1g) of the statutes is created to read:
SB193,4,1815 946.68 (1g) In this section, "legal process" includes a subpoena, summons,
16complaint, warrant, injunction, writ, notice, pleading, order or other document that
17directs a person to perform or refrain from performing a specified act and compliance
18with which is enforceable by a court or governmental agency.
SB193, s. 6 19Section 6. 946.68 (1r) (c) of the statutes is created to read:
SB193,4,2120 946.68 (1r) (c) If the document under par. (a) simulates any criminal process,
21the person is guilty of a Class D felony.
SB193, s. 7 22Section 7. 946.68 (2) of the statutes is amended to read:
SB193,4,2523 946.68 (2) Proof that the a document specified under sub. (1r) was mailed or
24was delivered to any person with intent that it be forwarded to the intended recipient
25is sufficient proof of sending.
SB193, s. 8
1Section 8. 946.69 (2) (intro.) of the statutes is amended to read:
SB193,5,32 946.69 (2) (intro.) Whoever does any of the following is guilty of a Class A
3misdemeanor
E felony:
SB193, s. 9 4Section 9. Initial applicability.
SB193,5,75 (1) Criminal statutes. The treatment of sections 943.60 (1), 946.68 (1), (1g),
6(1r) (c) and (2) and 946.69 (2) (intro.) of the statutes first applies to offenses occurring
7on the effective date of this subsection.
SB193,5,108 (2) Civil statutes. The treatment of sections 409.404 (1) (d) and 706.13 (1) of
9the statutes first applies to acts or omissions occurring on the effective date of this
10subsection.
SB193,5,1111 (End)
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