SB396: Bill Text

SB396,12,16 146.82 (2) (b) Except as provided in s. 610.70 (3) and (5) (ac), unless authorized by a court of record, the recipient of any information under par. (a) shall keep the information confidential and may not disclose identifying information about the patient whose patient health care records are released.

SB396, s. 12 Section 12. 224.15 of the statutes is created to read:

SB396,13,5 224.15 Liability for unauthorized, remote access to customer's account. (1) Definitions. (a) "Automatic teller machine" means a terminal or other facility or installation, attended or unattended, that is not located at the principal place of business or at a branch or remote facility of a depository institution and through which customers and depository institutions may engage, by means of either the direct transmission of electronic impulses to and from a depository institution or the recording of electronic impulses or other indicia of a transaction for delayed transmission to a depository institution, in transactions that are incidental to the conduct of the business of a depository institution and that are otherwise permitted by law. "Automated teller machine" also includes all equipment, regardless of location, that is interconnected with an automated teller machine and that is necessary to transmit, route, and process electronic impulses in order to enable the automated teller machine to perform any function for which it is designed.

SB396,13,7 (b) "Depository institution" means a bank, savings bank, savings and loan association, or credit union.

SB396,13,11 (2) Limitation of liability. (a) The liability of a customer of a depository institution for the unauthorized use of a plastic card or other means of providing the customer access to the customer's account through an automated teller machine may not exceed the lesser of the following:

SB396,13,12 1. Fifty dollars.

SB396,13,19 2. The amount of any money, property, or services obtained by the unauthorized use of the plastic card or other means of access prior to the time the depository institution is notified of, or otherwise becomes aware of, circumstances that lead to the belief that unauthorized access to the customer's account may be obtained. Notice is sufficient when the customer takes such steps as may reasonably be required in the ordinary course of business to provide the depository institution with the pertinent information.

SB396,13,24 (b) A customer who furnishes another person with a plastic card or other means of providing access to the customer's account through an automated teller machine shall be deemed to authorize all transactions that may be accomplished by that means, until the customer gives actual notice to the depository institution that further transactions are unauthorized.

SB396, s. 13 Section 13. 411.103 (1) (e) of the statutes is renumbered 411.103 (1) (e) (intro) and amended to read:

SB396,14,7 411.103 (1) (e) (intro.) "Consumer lease" means a lease that a lessor regularly engaged in the business of leasing or selling makes to a lessee who is an individual and who takes under the lease primarily for a personal, family, or household purpose, if the total payments to be made under the lease contract, excluding payments for options to renew or buy, do not exceed $25,000. the following:

SB396, s. 14 Section 14. 411.103 (1) (e) 1. of the statutes is created to read:

SB396,14,10 411.103 (1) (e) 1. For a lease entered into before the effective date of this subdivision .... [revisor inserts date], $25,000.

SB396, s. 15 Section 15. 411.103 (1) (e) 2. of the statutes is created to read:

SB396,14,13 411.103 (1) (e) 2. For a lease entered into on or after the effective date of this subdivision .... [revisor inserts date], $50,000.

SB396, s. 16 Section 16. 421.202 (6) of the statutes is renumbered 421.202 (6) (a) and amended to read:

SB396,14,21 421.202 (6) (a) Consumer credit transactions in which the amount financed exceeds $25,000, motor vehicle consumer leases in which the total lease obligation exceeds $25,000, or other consumer transactions in which the cash price exceeds $25,000;, if the consumer credit transaction, motor vehicle consumer lease, or other consumer transaction was entered into before the effective date of this paragraph .... [revisor inserts date].

SB396, s. 17 Section 17. 421.202 (6) (b) of the statutes is created to read:

SB396,15,3 421.202 (6) (b) Consumer credit transactions in which the amount financed exceeds $50,000, motor vehicle consumer leases in which the total lease obligation exceeds $50,000, or other consumer transactions in which the cash price exceeds $50,000, if the consumer credit transaction, motor vehicle consumer lease, or other consumer transaction was entered into on or after the effective date of this paragraph .... [revisor inserts date].

SB396, s. 18 Section 18. 422.201 (3) of the statutes is amended to read:

SB396,15,9 422.201 (3) For Notwithstanding sub. (2), for licensees under s. 138.09 and under ss. 218.0101 to 218.0163 and for payday loan providers under s. 138.14, the finance charge, calculated according to those sections, may not exceed the applicable maximums permitted in and calculated under ss. 138.09 , 138.14, and 218.0101 to 218.0163, respectively.

SB396, s. 19 Section 19. 422.308 (2g) of the statutes is created to read:

SB396,15,17 422.308 (2g) (a) This paragraph applies to every open-end credit plan under which a customer obtains credit pursuant to an application described under sub. (1) or pursuant to a transaction described under sub. (2). If the annual percentage rate under the open-end credit plan is fixed for a specified period of time and then automatically increases or becomes a variable rate, the creditor under the open-end credit plan shall provide the customer the following notice, on a separate document in not less than 12-point boldface type:

SB396,16,2 ATTENTION: IMPORTANT DISCLOSURE AS REQUIRED BY STATE OF WISCONSIN. THE ANNUAL PERCENTAGE RATE FOR THE EXTENSION OF CREDIT WE, .... (NAME OF CREDITOR), GRANTED YOU ON .... (DATE ON WHICH CREDIT EXTENDED) AUTOMATICALLY (INCREASES) (BECOMES A VARIABLE RATE) AFTER .... (DESCRIPTION OF CIRCUMSTANCES UNDER WHICH THE INCREASE OR VARIABLE RATE OCCURS). THE (INCREASED) (VARIABLE) RATE IS .... (STATEMENT OF INCREASED RATE OR DESCRIPTION OF HOW VARIABLE RATE IS DETERMINED). THE (INCREASED) (VARIABLE) RATE APPLIES .... (DESCRIPTION OF APPLICABILITY OF INCREASED OR VARIABLE RATE).

SB396,16,12 (b) Except as otherwise provided in this paragraph, the creditor shall give the customer the notice required under par. (a) before the first transaction is made under the open-end credit plan and with each subsequent billing statement, until the annual percentage rate ceases to automatically increase or becomes variable. If the notice is mailed to the customer, is shall be mailed in an envelope marked in not less than 12-point boldface type "ATTENTION: IMPORTANT DISCLOSURE ENCLOSED, AS REQUIRED BY STATE OF WISCONSIN." If the customer is to receive a credit card under the open-end credit plan, the notice required to be given before the first transaction is made under the plan shall be delivered to the customer along with the credit card.

SB396, s. 20 Section 20. 422.308 (2r) of the statutes is created to read:

SB396,16,25 422.308 (2r) (a) This paragraph applies to every open-end credit plan under which a customer obtains credit pursuant to an application described under sub. (1) or pursuant to a transaction described under sub. (2). If the creditor under the open-end credit plan furnishes the customer with a periodic statement that states a minimum monthly payment due under the open-end credit plan, the creditor shall include, as part of or along with the periodic statement, a notice in not less than 12-point boldface type indicating the total amount of finance charges the customer would pay if he or she entered into no transactions under the open-end credit plan after the date of the periodic statement and paid off the debt owing under the open-end credit plan by making only the minimum monthly payment every month. If the customer is unable to pay off the debt owing under the open-end credit plan by making the minimum monthly payment every month, the notice shall so indicate.

SB396, s. 21 Section 21. 422.422 of the statutes is created to read:

SB396,17,8 422.422 Arbitration of controversies under consumer credit transactions. (1) Prohibited arbitration agreements. Except as provided in sub. (2), no agreement between the parties to a consumer credit transaction may contain a provision requiring the parties to submit to arbitration a controversy that arises after the date on which the parties enter into the consumer credit transaction and that arises out of the consumer credit transaction or out of a failure to perform as required under the consumer credit transaction.

SB396,17,12 (2) Permissible arbitration agreements. Subsection (1) does not prohibit the parties to a consumer credit transaction from agreeing in writing to submit a controversy to arbitration, if the parties enter into the agreement after the date on which the controversy arises.

SB396,17,14 (3) Remedy. If an agreement violates sub. (1), that portion of the agreement that requires arbitration is void and unenforceable.

SB396, s. 22 Section 22. 423.301 of the statutes is renumbered 423.301 (1).

SB396, s. 23 Section 23. 423.301 (1) (title) of the statutes is created to read:

SB396,17,17 423.301 (1) (title) General prohibition.

SB396, s. 24 Section 24. 423.301 (2) of the statutes is created to read:

SB396,17,25 423.301 (2) Deceptive preapproved rates, terms, or conditions of open-end credit plans. (a) No merchant may directly communicate to a customer, or cause to be directly communicated to a customer, that the merchant has preapproved an extension of credit to the customer under an open-end credit plan and then, pursuant to the customer's response to the communication, make an extension of credit to the customer under an open-end credit plan with rates, terms, or conditions that are less financially favorable to the customer than those communicated.

SB396,18,4 (b) Except as provided under par. (c), it is not a defense to a violation of par. (a) that the merchant's approval of an extension of credit to the customer is made subject to the merchant's review of the customer's financial information, credit worthiness, credit standing, or credit capacity.

SB396,18,10 (c) Paragraph (a) does not apply to an extension of credit under an open-end credit plan with different rates, terms, or conditions than those communicated to a customer, if the difference in rates, terms, or conditions resulted from an adverse change in the financial circumstances of the customer between the date on which the merchant communicates preapproval and the date on which the merchant makes the extension of credit.

SB396, s. 25 Section 25. 423.301 (3) of the statutes is created to read:

SB396,18,17 423.301 (3) Deceptive preapproval of open-end credit plans. (a) No merchant may refuse to extend credit to a customer under an open-end credit plan if the customer requests the extension of credit in response to a direct communication from the merchant, or a direct communication caused by the merchant, indicating that the merchant has preapproved the extension of credit to the customer under an open-end credit plan.

SB396,18,21 (b) Except as provided under par. (c), it is not a defense to a violation of par. (a) that the merchant's approval of an extension of credit to the customer is made subject to the merchant's review of the customer's financial information, credit worthiness, credit standing, or credit capacity.

SB396,19,2 (c) Paragraph (a) does not apply to a refusal to extend credit under an open-end credit plan, if the refusal resulted from an adverse change in the financial circumstances of the customer between the date on which the merchant communicates preapproval and the date on which the merchant refuses to extend credit.

SB396, s. 26 Section 26. 423.302 of the statutes is amended to read:

SB396,19,7 423.302 Remedies and penalty. In addition to any other remedy provided by law, a customer who has been induced to consummate a consumer credit transaction as a result of an advertising or communication in violation of s. 423.301 shall be entitled to a recovery from the merchant in accordance with s. 425.305.

SB396, s. 27 Section 27. 425.302 (1) (a) of the statutes is amended to read:

SB396,19,9 425.302 (1) (a) Twenty-five Five hundred dollars; and

SB396, s. 28 Section 28. 425.303 (1) of the statutes is amended to read:

SB396,19,11 425.303 (1) One hundred thousand dollars; and

SB396, s. 29 Section 29. 425.304 (1) of the statutes is amended to read:

SB396,19,15 425.304 (1) Twice the amount of the finance charge in connection with the transaction, except that the liability under this subsection shall not be less than $100 nor greater than $1,000 $5,000; or

SB396, s. 30 Section 30. 426.104 (4) (a) and (b) of the statutes are amended to read:

SB396,19,25 426.104 (4) (a) No provision of chs. 421 to 427 and 429 or of any statute to which chs. 421 to 427 and 429 refer which imposes any penalty shall apply in any administrative proceeding conducted by the administrator or the official or agency having supervisory authority over the person alleged to have committed the violation to any act done or omitted to be done in conformity with any rule or order of the administrator or any written opinion, interpretation or statement of the administrator, notwithstanding that such rule, order, opinion, interpretation or statement may, after such act or omission, be amended or rescinded or be determined by judicial or other authority to be invalid for any reason.

SB396,20,10 (b) Any act, practice or procedure which has been submitted to the administrator in writing and either approved in writing by the administrator or not disapproved by the administrator within 60 days after its submission to the administrator shall not be deemed to be a violation of chs. 421 to 427 and 429 or any other statute to which chs. 421 to 427 and 429 refer in any administrative proceeding conducted by the administrator or the official or agency having supervisory authority over the person alleged to have committed the violation, notwithstanding that the approval of the administrator or nondisapproval by the administrator may be subsequently amended or rescinded or be determined by judicial or other authority to be invalid for any reason.

SB396, s. 31 Section 31. 426.110 (3) of the statutes is repealed.

SB396, s. 32 Section 32. 426.110 (14) of the statutes is amended to read:

SB396,20,20 426.110 (14) A merchant shall not be liable in a class action for specific penalties under s. 425.302 (1) (a), 425.303 (1), 425.304 (1), 425.305 (1) or 429.301 (1) for which it would be liable in individual actions by reason of violations of chs. 421 to 427 and 429 or of conduct prescribed in sub. (2) unless it is shown by a preponderance of the evidence that the violation was a wilful and knowing violation of chs. 421 to 427 and 429. No A recovery in an action under this subsection may not exceed $100,000 the lesser of $500,000 or 1% of the net worth of the merchant liable in the action.

SB396, s. 33 Section 33. 428.101 (3) of the statutes is amended to read:

SB396,20,25 428.101 (3) Loans made on or after November 1, 1981, and before the effective date of this subsection .... [revisor inserts date], by a creditor to a customer and which are secured by a first lien real estate mortgage or equivalent security interest if the amount financed is $25,000 or less.

SB396, s. 34 Section 34. 428.101 (4) of the statutes is created to read:

SB396,21,5 428.101 (4) Loans made on or after the effective date of this subsection .... [revisor inserts date], by a creditor to a customer and which are secured by a first lien real estate mortgage or equivalent security interest if the amount financed is $50,000 or less.

SB396, s. 35 Section 35. 429.104 (9) of the statutes is renumbered 429.104 (9) (a) (intro) and amended to read:

SB396,21,14 429.104 (9) (a) (intro.) "Consumer lease" or "lease" means a lease entered into in this state that transfers the right of possession and use by a natural person of a motor vehicle primarily for a personal, family, household, or agricultural purpose, for a period of time exceeding 4 months, if the total lease obligation, excluding any option to purchase or otherwise become owner of the motor vehicle at the expiration of the consumer lease, does not exceed $25,000. The term does not include a credit sale, as defined under 12 CFR 226.2 (a) (16). the following:

SB396, s. 36 Section 36. 429.104 (9) (a) 1. of the statutes is created to read:

SB396,21,17 429.104 (9) (a) 1. For a lease entered into before the effective date of this subdivision .... [revisor inserts date], $25,000.

SB396, s. 37 Section 37. 429.104 (9) (a) 2. of the statutes is created to read:

SB396,21,20 429.104 (9) (a) 2. For a lease entered into on or after the effective date of this subdivision .... [revisor inserts date], $50,000.

SB396, s. 38 Section 38. 429.104 (9) (b) of the statutes is created to read:

SB396,21,23 429.104 (9) (b) "Consumer lease" or "lease" does not include a credit sale, as defined under 12 CFR 226.2 (a) (16).

SB396, s. 39 Section 39. 610.70 (5) of the statutes is renumbered 610.70 (5) (ac).

SB396, s. 40 Section 40. 610.70 (5) (bc) of the statutes is created to read:

SB396,22,4 610.70 (5) (bc) An insurer that discloses personal medical information concerning an individual in a manner that is inconsistent with par. (ac) shall be liable to the individual for actual damages, exemplary damages of not more than $25,000, costs, and reasonable actual attorney fees.

SB396, s. 41 Section 41. 788.01 of the statutes is amended to read:

SB396,22,15 788.01 Arbitration clauses in contracts enforceable. A Except as provided in s. 422.422, a provision in any written contract to settle by arbitration a controversy thereafter arising out of the contract, or out of the refusal to perform the whole or any part of the contract, or an agreement in writing between 2 or more persons to submit to arbitration any controversy existing between them at the time of the agreement to submit, shall be valid, irrevocable and enforceable except upon such grounds as exist at law or in equity for the revocation of any contract. This chapter shall not apply to contracts between employers and employees, or between employers and associations of employees, except as provided in s. 111.10, nor to agreements to arbitrate disputes under s. 101.143 (6s) or 230.44 (4) (bm).

SB396, s. 42 Section 42. 788.015 of the statutes is amended to read:

SB396,22,24 788.015 Agreement to arbitrate real estate transaction disputes. A Except as provided in s. 422.422, a provision in any written agreement between a purchaser or seller of real estate and a real estate broker, or between a purchaser and seller of real estate, to submit to arbitration any controversy between them arising out of the real estate transaction is valid, irrevocable and enforceable except upon any grounds that exist at law or in equity for the revocation of any agreement. The agreement may limit the types of controversies required to be arbitrated and specify a term during which the parties agree to be bound by the agreement.

SB396, s. 43 Section 43. Initial applicability.

SB396,23,3 (1) Arbitration. The treatment of sections 422.422, 788.01, and 788.015 of the statutes first applies to agreements entered into on the effective date of this subsection.

SB396,23,9 (2) Transactions of $50,000 or less. The treatment of sections 138.09 (title) and (3) (e) 1. a. and 428.101 (3) and (4) of the statutes, the renumbering and amendment of sections 138.052 (9), 411.103 (1) (e), 421.202 (6), and 429.104 (9) of the statutes, and the creation of sections 138.052 (9) (b), 411.103 (1) (e) 1. and 2., 421.202 (6) (b), and 429.104 (9) (a) 1. and 2. and (b) of the statutes first apply to transactions entered into on the effective date of this subsection.

SB396,23,14 (3) Deceptive preapprovals. The treatment of sections 100.18 (10v), 100.26 (4), and 423.302 of the statutes, the renumbering of section 423.301 of the statutes, and the creation of sections 423.301 (1) (title), (2), and (3) of the statutes first apply an extension of credit or refusal to extend credit that takes place pursuant to a direct communication of preapproval made on the effective date of this subsection.

SB396,23,16 (4) Payday loans. The treatment of sections 138.14 and 422.201 (3) of the statutes first applies to payday loans made on the effective date of this subsection.

SB396,23,19 (5) Damages in class actions under the Wisconsin Consumer Act. The treatment of section 426.110 (14) of the statutes first applies to actions commenced on the effective date of this subsection.

SB396,23,22 (6) Bar to certain class actions under the Wisconsin Consumer Act. The treatment of section 426.110 (3) of the statutes first applies to actions commenced on the effective date of this subsection.

SB396,23,25 (7) Penalties under the Wisconsin Consumer Act. The treatment of sections 425.302 (1) (a), 425.303 (1), and 425.304 (1) of the statutes first applies to actions commenced on the effective date of this subsection.

SB396,24,5 (8) Unauthorized insurer disclosure. The treatment of sections 51.30 (4) (a) and 146.82 (2) (b) of the statutes, the renumbering of section 610.70 (5) of the statutes, and the creation of section 610.70 (5) (bc) of the statutes first apply to personal medical information disclosures made on the effective date of this subsection.

SB396, s. 44 Section 44. Effective dates. This act takes effect on the day after publication except as follows:

SB396,24,13 (1) Transactions of $50,000 or less. The treatment of sections 138.09 (title) and (3) (e) 1. a. and 428.101 (3) and (4) of the statutes, the renumbering and amendment of sections 138.052 (9), 411.103 (1) (e), 421.202 (6), and 429.104 (9) of the statutes, and the creation of sections 138.052 (9) (b), 411.103 (1) (e) 1. and 2., 421.202 (6) (b), and 429.104 (9) (a) 1. and 2. and (b) of the statutes take effect on the first day of the 6th month beginning after publication.

SB396,24,15 (2) Payday loans. The treatment of sections 138.14 and 422.201 (3) of the statutes takes effect on the first day of the 6th month beginning after publication.

SB396,24,16 (End)