AB393,9,98 (a) A lease or bailment of personal property that is incidental to the lease of real
9property.
AB393,9,1010 (b) A lease of a motor vehicle, as defined in s. 218.0101 (22).
AB393,9,1211(c) A credit sale, as defined in 15 USC 1602 (g) and in the regulations
12promulgated under that section.
AB393,9,14 13218.614 Territorial application. For the purposes of this subchapter, a
14rent-to-own agreement is entered into in this state if any of the following applies:
AB393,9,17 15(1) A writing signed by a lessee and evidencing the obligation under the
16rent-to-own agreement or an offer of a lessee is received by a rental-purchase
17company in this state.
AB393,9,20 18(2) The rental-purchase company induces a lessee who is a resident of this
19state to enter into the rent-to-own agreement by face-to-face solicitation or by mail
20or telephone solicitation directed to the particular lessee in this state.
AB393,9,24 21218.616 Obligation of good faith. Every agreement or duty under this
22subchapter imposes an obligation of good faith in its performance or enforcement.
23In this section, "good faith" means honesty in fact in the conduct or transaction
24concerned and the observance of reasonable commercial standards of fair dealing.
AB393,10,2
1218.617 License required. No person may operate as a rental-purchase
2company without a valid license issued by the division under this subchapter.
AB393,10,6 3218.618 Application for license; fees; bond. (1) Application. (a) An
4application for a license under this subchapter shall be made to the division, in
5writing, in the form prescribed by the division. An application for a license under this
6subchapter shall include all of the following:
AB393,10,77 1. If the applicant is an individual, the applicant's social security number.
AB393,10,98 2. If the applicant is not an individual, the applicant's federal employer
9identification number.
AB393,10,1110 (b) The division may not disclose any information received under par. (a) 1. or
112. to any person except as follows:
AB393,10,1412 1. The division may disclose information received under par. (a) 1. or 2. to the
13department of revenue for the sole purpose of requesting certifications under s.
1473.0301.
AB393,10,1715 2. The division may disclose information received under par. (a) 1. to the
16department of workforce development in accordance with a memorandum of
17understanding entered into under s. 49.857.
AB393,10,20 18(2) Application fees. At the time of applying to the division for a license under
19this subchapter, the applicant shall pay any applicable fee specified in the rules
20promulgated under s. 218.63 (3).
AB393,10,23 21(3) Bond. The division may require any applicant or licensee to file with the
22division and maintain in force a bond, in a form prescribed by and acceptable to the
23division, and in an amount determined by the division.
AB393,11,6 24218.62 Issuance or denial of license. (1) Investigation. Upon the filing
25of an application under s. 218.618 (1) and the payment of any applicable fee, the

1division shall perform an investigation. Except as provided in sub. (3), if the division
2finds that the character, general fitness, and financial responsibility of the applicant;
3the members of the applicant, if the applicant is a partnership, limited liability
4company, or association; and the officers and directors of the applicant, if the
5applicant is a corporation warrant the belief that the business will be operated in
6compliance with this subchapter, the division shall issue a license to the applicant.
AB393,11,12 7(2) Denial; notice; hearing. Except as provided in sub. (3), the division may
8deny an application made under s. 218.618 (1) by providing written notice to the
9applicant stating the grounds for the denial. Except as provided in sub. (3), a person
10whose application is denied may request a hearing under s. 227.44 within 30 days
11after the date of denial. The division may appoint a hearing examiner under s. 227.46
12to conduct the hearing.
AB393,11,14 13(3) Denial; child or family support or tax delinquency. The division may not
14issue a license under this subchapter if any of the following applies:
AB393,11,1615 (a) The applicant fails to provide the information required under s. 218.618 (1)
16(a).
AB393,11,2117 (b) The department of revenue certifies under s. 73.0301 that the applicant is
18liable for delinquent taxes. An applicant for whom a license is not issued under this
19paragraph for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and
20a hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing
21under this section.
AB393,12,622 (c) The applicant fails to comply, after appropriate notice, with a subpoena or
23warrant issued by the department of workforce development or a county child
24support agency under s. 59.53 (5) and related to paternity or child support
25proceedings or is delinquent in making court-ordered payments of child or family

1support, maintenance, birth expenses, medical expenses, or other expenses related
2to the support of a child or former spouse, as provided in a memorandum of
3understanding entered into under s. 49.857. An applicant whose application is
4denied under this paragraph for delinquent payments is entitled to a notice and
5hearing under s. 49.857 but is not entitled to any other notice or hearing under this
6section.
AB393,12,10 7218.622 License; other business. (1) Licensed locations. A license issued
8under this subchapter shall specify the location at which the licensee is permitted
9to conduct business. A separate license shall be required for each place of business
10maintained by the licensee.
AB393,12,11 11(2) Assignment. A license issued under this subchapter is not assignable.
AB393,12,13 12(3) Posting. A licensee shall post its license in a conspicuous place at the
13location specified in the license.
AB393,12,19 14(4) Term of license; fee. Every license shall remain in force until suspended
15or revoked in accordance with this subchapter or surrendered by the licensee. Every
16licensee shall, on or before June 1 of each year, pay to the division the annual license
17fee specified in rules promulgated under s. 218.63 (3) and, if required by the division,
18provide a rider or endorsement to increase the amount of any bond required under
19s. 218.618 (3).
AB393,12,23 20(5) Other business prohibited. No licensee may conduct business as a
21rental-purchase company within any office, room, or place of business in which any
22other business is solicited or engaged in, unless the licensee is authorized to do so,
23in writing, by the division.
AB393,13,2 24218.624 Revocation, suspension, and restriction of license. (1)
25Discretionary suspension or revocation. The division may issue an order

1suspending or revoking any license issued under this subchapter if the division finds
2that any of the following applies:
AB393,13,53 (a) The licensee has violated any of the provisions of this subchapter, any rules
4promulgated under s. 218.63 (3), or any lawful order of the division under s. 218.63
5(1).
AB393,13,86 (b) A fact or condition exists that, if it had existed at the time of the original
7application for the license, would have warranted the division in refusing to issue the
8license.
AB393,13,109 (c) The licensee has made a material misstatement in an application for a
10license or in information furnished to the division.
AB393,13,1211 (d) The licensee has failed to pay the annual license fee required under s.
12218.622 (4) or has failed to maintain in effect any bond required under s. 218.618 (3).
AB393,13,1513 (e) The licensee has failed to provide any additional information, data, and
14records required by the division, within the time period prescribed under s. 218.626
15(2).
AB393,13,1716 (f) The licensee has failed to pay any penalties due under s. 218.682 (1) or (2)
17within 30 days after receiving notice, by certified mail, that the penalties are due.
AB393,14,4 18(2) Mandatory restriction or suspension; child or family support. The
19division shall restrict or suspend a license issued under this subchapter if the
20division finds that the licensee is an individual who fails to comply, after appropriate
21notice, with a subpoena or warrant issued by the department of workforce
22development or a county child support agency under s. 59.53 (5) and related to
23paternity or child support proceedings or who is delinquent in making court-ordered
24payments of child or family support, maintenance, birth expenses, medical expenses,
25or other expenses related to the support of a child or former spouse, as provided in

1a memorandum of understanding entered into under s. 49.857. A licensee whose
2license is restricted or suspended under this subsection is entitled to a notice and
3hearing only as provided in a memorandum of understanding entered into under s.
449.857 and is not entitled to any other notice or hearing under this section.
AB393,14,10 5(3) Mandatory revocation; delinquent taxes. The division shall revoke a
6license issued under this subchapter if the department of revenue certifies under s.
773.0301 that the licensee is liable for delinquent taxes. A licensee whose license is
8revoked under this subsection for delinquent taxes is entitled to a notice under s.
973.0301 (2) (b) 1. b. and a hearing under s. 73.0301 (5) (a) but is not entitled to any
10other notice or hearing under this section.
AB393,14,13 11(4) Revocation and suspension procedure. Except as provided in subs. (2) and
12(3), the following procedure applies to every order of the division that suspends or
13revokes a license issued under this subchapter:
AB393,14,1614 (a) The division shall provide a written notice to the licensee of the division's
15intent to issue an order suspending or revoking the licensee's license. The notice
16shall specify the grounds for and the effective date of the proposed order.
AB393,14,2117 (b) The licensee may file with the division a written response to the allegations
18contained in the notice within 20 days after receiving the notice. The licensee's
19written response may contain a request for a contested case hearing under s. 227.42.
20If the written response does not contain a request for a contested case hearing under
21s. 227.42, the right to a contested case hearing is waived.
AB393,15,222 (c) If a written response containing a request for a contested case hearing under
23s. 227.42 is received by the division within the time provided under par. (b) and if,
24in the opinion of the division, the matter satisfies all of the conditions specified in s.
25227.42 (l) (a) to (d), the matter shall be scheduled for a contested case hearing to

1commence within 60 days after the date on which the division receives the written
2response.
AB393,15,113 (d) If the licensee fails to file a written response within the time provided under
4par. (b), files a timely written response but fails to request a contested case hearing
5under s. 227.42 or files a timely written response requesting a contested case hearing
6but, in the opinion of the division, the matter fails to satisfy all of the conditions
7specified in s. 227.42 (l) (a) to (d), the division may issue an order suspending or
8revoking the license. If the licensee files a timely written response containing a
9proper request for a contested case hearing under s. 227.42, any order of the division
10suspending or revoking the licensee's license shall be stayed pending completion of
11proceedings under ch. 227.
AB393,15,18 12218.626 Modification of license. (1) Change in place of business. No
13licensee may change its place of business to another location without the prior
14approval of the division. A licensee shall provide the division with at least 15 days'
15prior written notice of a proposed change under this subsection and shall pay any
16applicable fees specified in the rules promulgated under s. 218.63 (3). Upon approval
17by the division of the new location, the division shall issue an amended license,
18specifying the date on which the amended license is issued and the new location.
AB393,16,3 19(2) Other changes. Except as provided in sub. (1), a licensee shall notify the
20division of any material change to the information provided in the licensee's original
21application for a license under this subchapter or provided in a previous notice of
22change filed by the licensee with the division under this subsection. A licensee shall
23provide the notice required under this subsection within 10 days after the change.
24The licensee shall provide any additional information, data, and records about the
25change to the division within 20 days after the division requests the information,

1data, or records. The division shall determine the cost of investigating and
2processing the change. The licensee shall pay the division's cost within 30 days after
3the division demands payment.
AB393,16,7 4(3) Division approval of other changes. Any change that is subject to the
5notice requirement under sub. (2) is subject to the approval of the division. In
6reviewing the change, the division shall apply the same criteria as the criteria for
7approval of an original license application.
AB393,16,12 8218.628 Annual report; records. (1) Annual report. On or before March
931 of each year, a licensee shall file a report with the division giving such reasonable
10and relevant information as the division may require concerning the business and
11operations conducted by the licensee. The licensee shall make the report in the form
12prescribed by the division.
AB393,16,17 13(2) Books and records. A licensee shall keep such books and records in the
14licensed location as, in the opinion of the division, will enable the division to
15determine whether the provisions of this subchapter are being observed. Every
16licensee shall preserve its records of a rent-to-own agreement for at least 3 years
17after making the final entry with respect to the rent-to-own agreement.
AB393,16,22 18218.63 Powers and duties of division; administration. (1) Orders. The
19division may issue any general order, as defined in s. 217.02 (3), or special order, as
20defined in s. 217.02 (10), in execution of or supplementary to this subchapter, except
21that the division may not issue a general order or special order that conflicts with this
22subchapter.
AB393,17,11 23(2) Investigations and examinations. For the purpose of discovering violations
24of this subchapter, the division may cause an investigation or examination to be
25made of the business of a licensee transacted under this subchapter. The place of

1business, books of accounts, papers, records, safes, and vaults of the licensee shall
2be open to the division for the purpose of an investigation or examination, and the
3division has authority to examine under oath all persons whose testimony is required
4for an investigation or examination. The division shall determine the cost of an
5investigation or examination. The licensee shall pay the cost of an investigation or
6examination. The licensee shall pay the cost of any hearing held for the purpose of
7this subsection, including witness fees, unless the division or a court finds that the
8licensee has not violated any provision of this subchapter. The licensee shall pay all
9costs owing under this subsection within 30 days after the division demands
10payment. The state may maintain an action for the recovery of any costs owing under
11this subsection.
AB393,17,13 12(3) Rules. The division may promulgate rules for the administration of this
13subchapter.
AB393,17,16 14(4) Testimonial powers and powers to secure evidence. The division has the
15same power to conduct hearings, take testimony, and secure evidence as is provided
16in ss. 217.17 and 217.18.
AB393,17,21 17(5) Enforcement. The division has the duty, power, jurisdiction, and authority
18to investigate, ascertain, and determine whether this subchapter or any lawful
19orders issued under sub. (1) are being violated. The division may report violations
20of this subchapter to the attorney general or the district attorney of the proper county
21for prosecution.
AB393,17,24 22218.632 General requirements of disclosure. (1) Form, location, size, and
23time of disclosure.
The information required under s. 218.634 to be included in a
24rent-to-own agreement shall satisfy all of the following requirements:
AB393,17,2525 (a) The information shall be clearly and conspicuously disclosed.
AB393,18,1
1(b) The information shall be disclosed in writing.
AB393,18,32 (c) The information shall be disclosed on the face of the rent-to-own agreement
3above the line for the lessee's signature.
AB393,18,44 (d) The information shall be disclosed in not less than 8-point standard type.
AB393,18,65 (e) The information shall be disclosed before the time that the lessee becomes
6legally obligated under the rent-to-own agreement.
AB393,18,10 7(2) Accuracy of disclosure. The information required under s. 218.634 must
8be accurate as of the time that it is disclosed to the lessee. If any information
9subsequently becomes inaccurate as a result of any act, occurrence, or agreement by
10the lessee, the resulting inaccuracy is not a violation of this subchapter.
AB393,18,15 11(3) Copy of rent-to-own agreement. The rental-purchase company shall
12provide the lessee with a copy of the completed rent-to-own agreement signed by the
13lessee. If more than one lessee is legally obligated under the same rent-to-own
14agreement, delivery of a copy of the completed rent-to-own agreement to one of the
15lessees shall satisfy this subsection.
AB393,18,19 16(4) Single instrument. In a rent-to-own agreement, the lessee's payment
17obligations shall be evidenced by a single instrument, which shall include the
18signature of the rental-purchase company, the signature of the lessee, and the date
19on which the instrument is signed.
AB393,18,22 20218.634 Required provisions of rent-to-own agreement. A
21rental-purchase company shall include all of the following information, to the extent
22applicable, in every rent-to-own agreement:
AB393,19,2 23(1) Description. A brief description of the rental property, sufficient to identify
24the rental property to the lessee and the rental-purchase company, including any
25identification number, and a statement indicating whether the rental property is

1new or used. A statement that incorrectly indicates that new rental property is used
2is not a violation of this subchapter.
AB393,19,8 3(2) Cash price. The price at which the rental-purchase company would sell the
4rental property to the lessee if the lessee were to pay for the rental property in full
5on the date on which the rent-to-own agreement is executed, along with a statement
6that, if the lessee intends to acquire ownership of the rental property and is able to
7pay for the property in full or is able to obtain credit to finance the purchase, the
8lessee may be able to purchase similar property from a retailer at a lower cost.
AB393,19,9 9(3) Rental payment. The periodic rental payment for the rental property.
AB393,19,14 10(4) Up-front payment. Any payment required of the lessee at the time that the
11agreement is executed or at the time that the rental property is delivered, including
12the initial rental payment, any application or processing charge, any delivery fee, the
13applicable tax, and any charge for a liability damage waiver or for other optional
14services agreed to by the lessee.
AB393,19,17 15(5) Periodic rental payments to acquire ownership. The total number, total
16dollar amount, and timing of all periodic rental payments necessary to acquire
17ownership of the rental property.
AB393,19,23 18(6) Other charges and fees to acquire ownership. The dollar amount, both
19itemized and in total, of all taxes, liability damage waiver fees, fees for optional
20services, processing fees, application fees, and delivery charges that the lessee would
21incur if the lessee were to rent the rental property until the lessee acquires
22ownership, assuming that the lessee does not add or decline the liability damage
23waiver or optional services after signing the rent-to-own agreement.
AB393,20,6 24(7) Total payments to acquire ownership. The total of all charges to be paid
25by the lessee to acquire ownership of the rental property, which shall consist of the

1sum of the total dollar amount of all periodic rental payments disclosed under sub.
2(5) and the total dollar amount of all other charges and fees disclosed under sub. (6),
3along with a statement that this is the amount a lessee will pay to acquire ownership
4of the rental property if the tax rates do not change and if the lessee does not add or
5decline the liability damage waiver or optional services after signing the
6rent-to-own agreement.
AB393,20,8 7(8) Other charges. An itemized description of any other charges or fees that
8the rental-purchase company may charge the lessee.
AB393,20,16 9(9) Summary of early-purchase option. A statement summarizing the terms
10of the lessee's option to acquire ownership of the rental property, including a
11statement indicating that the lessee has the right to acquire ownership of the rental
12property at any time after the first payment by paying all past-due payments and
13fees and an amount not to exceed an amount equal to the cash price of the rental
14property multiplied by a fraction that has as its numerator the number of periodic
15rental payments remaining under the rent-to-own agreement and that has as its
16denominator the total number of periodic rental payments.
AB393,20,23 17(10) Responsibility for theft or damage. A statement that, unless otherwise
18agreed, the lessee is responsible for the fair market value of the rental property,
19determined according to the early-purchase option formula under sub. (9), if the
20rental property is stolen, damaged, or destroyed while in the possession of or subject
21to the control of the lessee. The statement shall indicate that the fair market value
22will be determined as of the date on which the rental property is stolen, damaged,
23or destroyed.
AB393,21,6 24(11) Service and warranty. A statement that during the term of the
25rent-to-own agreement, the rental-purchase company is required to service the

1rental property to maintain it in good working condition, as long as no other person
2has serviced the rental property. In lieu of servicing the rental property, the
3rental-purchase company may, at its option, replace the rental property. The
4rental-purchase company's obligation to provide service is limited to defects in the
5property not caused by improper use or neglect by the lessee or harmful conditions
6outside the control of the rental-purchase company or manufacturer.
AB393,21,9 7(12) Termination at option of lessee. A statement that the lessee may
8terminate the agreement at any time without penalty by voluntarily surrendering
9or returning the rental property in good repair.
AB393,21,11 10(13) Right to reinstate. A brief explanation of the lessee's right to reinstate
11a rent-to-own agreement under s. 218.654.
AB393,21,19 12(14) Rental, not purchase. A statement that the lessee will not own the rental
13property until the lessee has made all payments necessary to acquire ownership or
14has exercised the lessee's early-purchase option. The rental-purchase company
15shall also include a notice reading substantially as follows: "You are renting this
16property. You will not own the property until you make all payments necessary to
17acquire ownership or until you exercise your early-purchase option. If you do not
18make your payments as scheduled or exercise your early-purchase option, the lessor
19may repossess the property."
AB393,21,23 20(15) Information about rental-purchase company and lessee. The names of
21the rental-purchase company and the lessee, the rental-purchase company's
22business address and telephone number, the lessee's address, and the date on which
23the rent-to-own agreement is executed.
AB393,22,3
1218.636 Prohibited provisions of rent-to-own agreement. A
2rental-purchase company may not include any of the following provisions in a
3rent-to-own agreement:
AB393,22,4 4(1) Confession. A confession of judgment.
AB393,22,7 5(2) Security. A provision granting the rental-purchase company a security
6interest in any property except the rental property delivered by the rental-purchase
7company under the rent-to-own agreement.
AB393,22,11 8(3) Repossession. A provision authorizing the rental-purchase company or an
9agent of the rental-purchase company to enter the lessee's premises or to commit a
10breach of the peace in the repossession of rental property provided by the
11rental-purchase company under the rent-to-own agreement.
AB393,22,15 12(4) Waiver. A waiver of a defense or counterclaim, a waiver of any right to
13assert any claim that the lessee may have against the rental-purchase company or
14against an agent of the rental-purchase company, or a waiver of any provision of this
15subchapter.
AB393,22,18 16(5) Overpayment. A provision requiring periodic rental payments totaling more
17than the total dollar amount of all periodic rental payments necessary to acquire
18ownership, as disclosed in the rental-purchase agreement.
AB393,22,20 19(6) Insurance. A provision requiring the lessee to purchase insurance from the
20rental-purchase company to insure the rental property.
AB393,22,21 21(7) Attorney fees. A provision requiring the lessee to pay attorney fees.
AB393,23,2 22218.638 Liability waiver. A rental-purchase company may offer a liability
23waiver to the lessee. The terms of the waiver shall be provided to the lessee in
24writing, and the face of the writing shall clearly disclose that the lessee is not
25required to purchase the waiver. The fee for the waiver may not exceed 10% of the

1periodic rental payment due under the rent-to-own agreement. The lessee shall be
2entitled to cancel the waiver at the end of any rental term.
AB393,23,9 3218.64 Early-purchase option. An early-purchase option under a
4rent-to-own agreement shall permit the lessee to purchase the rental property at
5any time after the initial periodic rental payment for an amount determined
6according to the early-purchase option formula under s. 218.634 (9). As a condition
7of exercising the early-purchase option, the rental-purchase company may require
8the lessee to be current on the payments under the lessee's rent-to-own agreement
9or to pay any past-due rental charges and other outstanding fees that are owed.
AB393,23,12 10218.642 Receipts and statements. (1) Receipts. A rental-purchase
11company shall provide a written receipt to a lessee for any payment made by the
12lessee in cash, or upon the request of the lessee, for any other type of payment.
AB393,23,21 13(2) Statement due to lessee. Subject to sub. (4), upon the request of a lessee,
14a rental-purchase company shall provide a written statement to the lessee showing
15the lessee's payment history under each rent-to-own agreement between the lessee
16and the rental-purchase company. A rental-purchase company is not required to
17provide a statement covering any rent-to-own agreement that terminated more
18than one year prior to the date of the lessee's request. A rental-purchase company
19may provide a single statement covering all rent-to-own agreements or separate
20statements for each rent-to-own agreement, at the rental-purchase company's
21option.
AB393,24,2 22(3) Statement due to 3rd party. Subject to sub. (4), upon the written request
23of a lessee, made during the term of or no later than one year after the termination
24of a rent-to-own agreement, a rental-purchase company shall provide a written

1statement to any person designated by the lessee, showing the lessee's payment
2history under the rent-to-own agreement.
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