Under current law, vehicle rental and leasing companies may not charge a
credit card that the renter or lessee provided as a deposit for damages unless either
the charges are for the cost of the rental and the renter or lessee consents or the
charges are to repair any damage that occurred when the vehicle was in the renter's
or lessee's possession and the rental or leasing company provides the renter or lessee
with the total cost of the repairs.
This bill requires that if a renter or lessee of a vehicle that receives a citation
for a nonmoving traffic violation, while the vehicle was in the renter's or lessee's
possession, fails to pay any forfeiture, costs, or towing and storage charges that are
owed to the authority issuing the citation, the vehicle rental or leasing company must
pay all of those sums to the authority or DOT may suspend the vehicle's registration.
The bill allows a vehicle rental or leasing company to charge a credit card provided
as a deposit for damages by the renter or lessee for any sums it has paid for costs,
forfeitures, and towing and storage charges for the nonmoving violation plus assess
an administrative fee of not more than $30 against the renter or lessee. If the rental
or leased vehicle owner intends to make such charges, the vehicle owner must give
written notice, to the renter or lessee, before entering into the rental or lease
agreement, that charges may be made against the renter's or lessee's credit card for
any forfeitures, costs, or towing and storage charges for a nonmoving traffic citation
that the renter or lessee fails to pay. The bill requires the Department of Agriculture,
Trade and Consumer Protection to promulgate rules specifying the form of this
written notice. The rental or leased vehicle owner must charge the renter's or lessee's
credit card within 30 days after receiving notice from the authority issuing the
citation that the renter or lessee failed to pay the forfeiture, costs, or towing and
storage charges and must provide a detailed itemization of the charges to the renter
or lessee within 30 days of charging the renter's or lessee's credit card.
The bill provides an exception for nonmoving violations incurred by a renter or
lessee who did not pay for the cost of the rental or lease with a credit card, lowering
the rental or leased vehicle owner's liability to 50 percentage of the amount of the
forfeiture and towing and storage charges.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB825, s. 1 1Section 1. 344.578 (1) of the statutes is amended to read:
AB825,3,112 344.578 (1) Prohibited deposits; collection of damages. Except as provided
3in this subsection or, in sub. (2), or in s. 345.28 (5w), a rental company may not use

1credit available pursuant to
charge a credit card belonging to a renter as a deposit
2for damages for which the renter may be held liable under the rental agreement or
3under s. 344.574 (2) (a) or for any other charges. If a rented private passenger vehicle
4is damaged or if the renter owes any other charges provided for in the rental
5agreement, the rental company may use credit available pursuant to charge a credit
6card belonging to the renter as payment for the damages for which the renter is liable
7under s. 344.574 (2) (a) or for any other charges provided for in the rental agreement
8only if the rental company obtains the renter's authorization to use that credit card
9for payment
and the authorization is obtained after the total amount of the renter's
10liability or other charges is determined and before the rental company processes the
11credit card charge.
AB825, s. 2 12Section 2. 344.578 (2) of the statutes is amended to read:
AB825,3,2013 344.578 (2) Deposit for rental fees. If authorized by the renter, a rental
14company may use credit available pursuant to charge a credit card belonging to the
15renter as a deposit for the estimated cost of the rental, as determined under this
16subsection. The estimated cost of the rental may not exceed an amount equal to the
17daily rental rate specified in the rental agreement, which may include the daily
18charge for a damage waiver if purchased by the renter, multiplied by the number of
19days specified in the agreement for which the private passenger vehicle is being
20rented.
AB825, s. 3 21Section 3. 345.28 (4) (e) 1. of the statutes is amended to read:
AB825,4,522 345.28 (4) (e) 1. If the person subsequently pays the amount of the forfeiture
23and the costs, if any, under par. (d) or appears in court in response to the citation or
24a notice by the authority who issued the citation or the department, the department
25shall be immediately notified in the form and manner prescribed by the department.

1If the vehicle involved in the nonmoving traffic violation is owned by a person
2engaged in the business of renting or leasing motor vehicles and the owner pays the
3costs, if any, under par. (d) and 50% of the forfeiture or, if applicable, the amount
4required under sub. (5w) (b)
, the authority shall immediately notify the department
5in the form and manner prescribed by the department.
AB825, s. 4 6Section 4. 345.28 (4) (e) 2. of the statutes is amended to read:
AB825,4,167 345.28 (4) (e) 2. If the person subsequently pays the amount of the outstanding
8towing and storage charges specified in the notice to the department under par. (a)
91m. and the costs, if any, under par. (d), the department shall be immediately notified
10in the form and manner prescribed by the department. If the vehicle to which the
11towing and storage charges apply is owned by a person engaged in the business of
12renting or leasing motor vehicles and the owner pays the costs, if any, under par. (d)
13and 50% of the amount of the outstanding towing and storage charges specified in
14the notice to the department under par. (a) 1m. or, if applicable, the amount required
15under sub. (5w) (b)
, the authority shall immediately notify the department in the
16form and manner prescribed by the department.
AB825, s. 5 17Section 5. 345.28 (4) (h) of the statutes is amended to read:
AB825,4,2218 345.28 (4) (h) 1. If an authority receives payment of 50% of a forfeiture or, if
19applicable, the amount required under sub. (5w) (b),
from the owner of a leased or
20rented vehicle involved in a nonmoving traffic violation and receives payment of the
21forfeiture from the lessee or renter of the vehicle charged with the violation, the
22authority shall refund to the owner the 50% payment received from the owner.
AB825,5,523 2. If an authority receives payment of 50% of the amount of the outstanding
24towing and storage charges specified in the notice to the department under par. (a)
251m. or, if applicable, the amount required under sub. (5w) (b), from the owner of a

1leased or rented vehicle to which the towing and storage charges apply and receives
2payment of the amount of the outstanding towing and storage charges specified in
3the notice to the department under par. (a) 1m. from the lessee or renter of the vehicle
4to which the towing and storage charges apply, the authority shall refund to the
5owner the 50% payment received from the owner.
AB825, s. 6 6Section 6. 345.28 (5m) (c) of the statutes is amended to read:
AB825,5,127 345.28 (5m) (c) 1. If Except as otherwise provided in sub. (5w) (b), if the renter
8or lessee does not pay the forfeiture or appear in court in response to the citation for
9a nonmoving traffic violation within 30 days after the 2nd notice from the authority
10is mailed to the renter or lessee, the owner shall pay the authority 50% of the
11forfeiture applicable to the nonmoving traffic violation. The authority shall notify
12the owner in writing of its responsibility for this payment.
AB825,5,1813 2. If Except as otherwise provided in sub. (5w) (b), if the owner does not pay 50%
14of
the forfeiture applicable to the citation within 30 days after notice under subd. 1.
15has been mailed to the owner, the authority may send a notice to the department
16under sub. (4) (a) 1. The action which the authority shall specify that the department
17take under sub. (4) (a) 2. is limited to suspension of the registration of the vehicle
18involved in the nonmoving traffic violation.
AB825, s. 7 19Section 7. 345.28 (5r) (c) of the statutes is amended to read:
AB825,5,2520 345.28 (5r) (c) 1. If Except as otherwise provided in sub. (5w) (b), if the renter
21or lessee does not pay the amount of the outstanding towing and storage charges
22within 30 days after the 2nd notice from the authority is mailed to the renter or
23lessee, the owner shall pay the authority 50% of the amount of the outstanding
24towing and storage charges. The authority shall notify the owner in writing of its
25responsibility for this payment.
AB825,6,6
12. If Except as otherwise provided in sub. (5w) (b), if the owner does not pay 50%
2of
the amount of the outstanding towing and storage charges within 30 days after
3notice under subd. 1. has been mailed to the owner, the authority may send a notice
4to the department under sub. (4) (a) 1m. The action which the authority shall specify
5that the department take under sub. (4) (a) 2. is limited to suspension of the
6registration of the vehicle to which the towing and storage charges apply.
AB825, s. 8 7Section 8. 345.28 (5w) and (5x) of the statutes are created to read:
AB825,6,158 345.28 (5w) (a) If the owner of a rental or leased vehicle has received written
9notice under sub. (5m) (c) 1. or (5r) (c) 1. and pays any forfeiture, costs, or towing and
10storage charges for nonmoving traffic violations under this section that occurred
11while the renter or lessee was in possession of the vehicle, the rental or leased vehicle
12owner may, within 30 days after receiving the notice, charge a credit card belonging
13to the renter or lessee as payment for the forfeiture, costs, and charges for which the
14renter or lessee is liable as well as charge the renter an administrative fee of not more
15than $30 for making those payments under this section, if the owner:
AB825,6,2216 1. Provided a written notice to the renter or lessee, prior to entering into the
17rental or lease agreement, that if the renter or lessee fails to pay any forfeitures,
18costs, or towing and storage charges for nonmoving traffic violations incurred while
19the renter or lessee is in possession of the rental or leased vehicle, the owner may pay
20those sums and charge the amount paid for such forfeitures, costs, or charges plus
21an administrative fee of not more than $30 to a credit card belonging to the renter
22or lessee.
AB825,7,323 2. Provides the renter or lessee with a detailed itemization of all amounts
24charged to the renter's or lessee's credit card, within 30 days after charging that
25credit card, that includes the date that the charge was made and, for each nonmoving

1traffic violation forfeiture incurred by the renter or lessee that the owner paid, the
2name of the authority issuing the citation, the citation number, and the date of the
3citation.
AB825,7,114 (b) If the owner of a rental or leased vehicle has received written notice under
5sub. (5m) (c) 1. or (5r) (c) 1. and is required to pay any forfeiture or towing and storage
6charges for nonmoving traffic violations under this section that occurred while the
7renter or lessee was in possession of the vehicle and the renter or lessee did not pay
8the rental or lease fee with a credit card, the rental or leased vehicle owner shall pay
9the authority 50 percent of the amount of the outstanding forfeitures or towing and
10storage charges, provided that the owner advises the authority that the payment is
11made under this paragraph.
AB825,7,18 12(5x) The department of agriculture, trade and consumer protection shall
13promulgate rules specifying the form of the notice required under sub. (5w) (a) 1.,
14including the type size and any highlighting of the information described in that
15paragraph and, if the notice is on a separate form, the size of the paper. The rules
16must require the notice to be in substantially the same form as the notice under s.
17344.576 (3) (a) and may specify additional information to be included in the notice
18and the precise language that must be used.
AB825, s. 9 19Section 9 . Nonstatutory provisions.
AB825,7,2420 (1) The department of agriculture, trade and consumer protection shall submit
21in proposed form the rules required under section 345.28 (5x) of the statutes, as
22created by this act, to the legislative council staff under section 227.15 (1) of the
23statutes no later than the first day of the 4th month beginning after the effective date
24of this subsection.
AB825,8,12
1(2) Using the procedure under section 227.24 of the statutes, the department
2of agriculture, trade and consumer protection may promulgate as emergency rules
3the rules required under section 345.28 (5x) of the statutes, as created by this act,
4for the period before the effective date of the rules submitted under subsection (1).
5Notwithstanding section 227.24 (1) (c) and (2) of the statutes, emergency rules
6promulgated under this subsection remain in effect until the date on which the rules
7submitted under subsection (1) take effect or until July 1, 2009, whichever is sooner.
8Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the department of
9agriculture, trade and consumer protection is not required to provide evidence that
10promulgating a rule under this subsection as an emergency rule is necessary for the
11preservation of the public peace, health, safety, or welfare and is not required to
12provide a finding of emergency for a rule promulgated under this subsection.
AB825, s. 10 13Section 10. Initial applicability.
AB825,8,1514 (1) This act first applies to nonmoving traffic violations with vehicles whose
15vehicle rental or leasing contracts were entered into on the effective date of this act.
AB825, s. 11 16Section 11. Effective dates. This act takes effect on the first day of the 4th
17month beginning after publication, except as follows:
AB825,8,1818 (1) Section 9 (1 ) and (2) of this act takes effect on the day after publication.
AB825,8,1919 (End)
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