AB40,940,2320 (c) Except as provided in par. (f), the information shall be disclosed in the
21rental-purchase agreement above the line for the lessee's signature. Multiple pages
22or backs of pages may be used as long as the face of the rental-purchase agreement
23is signed by the lessee and other pages are signed or initialed by the lessee.
AB40,940,2524 (d) Except as provided in par. (f), the information shall be disclosed in not less
25than 8-point standard type.
AB40,941,2
1(e) The information shall be disclosed before the time that the lessee becomes
2legally obligated under the rental-purchase agreement.
AB40,941,63 (f) The disclosures required by s. 420.04 (2), (3), (4), and (7) shall be printed in
4at least 10-point boldface type on the face of the rental-purchase agreement, and
5shall be grouped together in a box, in the form and order prescribed by the
6department.
AB40,941,11 7(2) Accuracy of disclosure. The information required under s. 420.04 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 any provision of this chapter
11relating to rental-purchase agreements.
AB40,941,16 12(3) Copy of rental-purchase agreement. The rental-purchase company shall
13provide the lessee with a copy of the completed rental-purchase agreement signed
14by the lessee. If more than one lessee is legally obligated under the same
15rental-purchase agreement, delivery of a copy of the completed rental-purchase
16agreement to one of the lessees shall satisfy this subsection.
AB40,941,19 17420.04 Required provisions of rental-purchase agreement. A
18rental-purchase company shall include all of the following information, to the extent
19applicable, in every rental-purchase agreement:
AB40,941,24 20(1) Description. A brief description of the rental property, sufficient to identify
21the rental property to the lessee and the rental-purchase company, including any
22identification number, and a statement indicating whether the rental property is
23new or used. A statement that new rental property is used shall not be a violation
24of this subchapter.
AB40,941,25 25(2) Cash price. The cash price of the rental property.
AB40,942,4
1(3) Rental payments to acquire ownership. The total number, total dollar
2amount, and timing of all rental payments necessary to acquire ownership of the
3rental property, excluding any applicable taxes, application or processing charge,
4delivery fee, liability damage waiver fee, and fees for optional services.
AB40,942,11 5(4) Cost of rental services. The difference between the total dollar amount
6of payments necessary to acquire ownership of the rental property disclosed under
7sub. (3) and the cash price of the property disclosed under sub. (2). The
8rental-purchase company shall also include a statement substantially similar to the
9following: "The cost of rental services is the amount you will pay in addition to the
10cash price if you acquire ownership of the rented goods by making all payments
11necessary to acquire ownership."
AB40,942,13 12(5) Periodic payment. The rental payment and any applicable taxes and fees
13for optional services to which the lessee agrees.
AB40,942,18 14(6) Up-front payment. The total amount of the initial payment to be made by
15the lessee at the time that the rental-purchase agreement is executed or the rental
16property is delivered, including the initial rental payment, any application or
17processing charge, any delivery fee, and fees for other optional services to which the
18lessee agrees.
AB40,942,22 19(7) Total payments to acquire ownership. The total of all charges to be paid
20by the lessee to acquire ownership of the rental property, which shall consist of the
21total dollar amount of all rental payments disclosed under sub. (3), and the total
22dollar amount of all required fees and taxes.
AB40,942,25 23(8) Other charges. An itemized description of any other charges or fees that
24the rental-purchase company may charge upon the occurrence of a contingency
25specified in the rental-purchase agreement, such as late fees.
AB40,943,3
1(9) Summary of early-purchase option. A statement summarizing the terms
2of the lessee's options to acquire ownership of the rental property as provided in s.
3420.06 (3).
AB40,943,10 4(10) Responsibility for theft or damage. A statement that, unless otherwise
5agreed, the lessee is responsible for the fair market value of the rental property,
6determined according to the early-purchase option formula under sub. (9), if the
7rental property is stolen, damaged, or destroyed while in the possession of or subject
8to the control of the lessee. The statement shall indicate that the fair market value
9will be determined as of the date on which the rental property is stolen, damaged,
10or destroyed.
AB40,943,19 11(11) Service and warranty. A statement that during the term of the rental-
12purchase agreement, the rental-purchase company is required to service the rental
13property and maintain it in good working condition, as long as no other person has
14serviced the rental property. In lieu of servicing the rental property, the
15rental-purchase company may, at its option, replace the rental property with
16substitute property of comparable quality and condition. The rental-purchase
17company's obligation to provide service is limited to defects in the property not
18caused by improper use or neglect by the lessee or harmful conditions outside the
19control of the rental-purchase company or manufacturer.
AB40,943,22 20(12) Termination at option of lessee. A statement that the lessee may
21terminate the agreement at any time without penalty by voluntarily surrendering
22or returning the rental property in good repair.
AB40,943,24 23(13) Right to reinstate. A brief explanation of the lessee's right to reinstate
24a rental-purchase agreement under s. 420.07.
AB40,944,5
1(14) Rental, not purchase. A statement reading substantially as follows: "You
2are renting this property. You will not own the property until you make all payments
3necessary to acquire ownership or until you exercise your early-purchase option. If
4you do not make your payments as scheduled or exercise your early-purchase option,
5the rental-purchase company may repossess the property."
AB40,944,9 6(15) Information about rental-purchase company and lessee. The names of
7the rental-purchase company and the lessee, the rental-purchase company's
8business address and telephone number, the lessee's address, and the date on which
9the rental-purchase agreement is executed.
AB40,944,16 10(16) Optional services. Space for a specific, separately signed or initialed,
11affirmative, written indication of the lessee's desire for any optional service for which
12a charge is assessed. The lessee's request must be obtained after a written disclosure
13of the cost of the optional service is made, and the disclosure of the cost and purpose
14of such service must be listed at or near the affirmation space. This requirement is
15satisfied by a separate written agreement for an optional service that meets the
16requirements of this subsection.
AB40,944,18 17420.05 Prohibited provisions of rental-purchase agreements. A
18rental-purchase agreement may not contain any of the following:
AB40,944,19 19(1) Confession. A confession of judgment.
AB40,944,24 20(2) Repossession. A provision authorizing a rental-purchase company, or an
21agent of the rental-purchase company, to enter the lessee's residence without the
22lessee's permission, or to commit a breach of the peace in the repossession of rental
23property provided by the rental-purchase company under the rental-purchase
24agreement.
AB40,945,4
1(3) Waiver. A waiver of a defense or counterclaim, a waiver of any right to
2assert any claim that the lessee may have against the rental-purchase company or
3an agent of the rental-purchase company, or a waiver of any provision of this chapter
4relating to rental-purchase agreements.
AB40,945,7 5(4) Overpayment. A provision requiring rental payments totaling more than
6the total dollar amount of all rental payments necessary to acquire ownership, as
7disclosed in the rental-purchase agreement.
AB40,945,9 8(5) Insurance. A provision requiring the lessee to purchase insurance from the
9rental-purchase company to insure the rental property.
AB40,945,10 10(6) Attorney fees. A provision requiring the lessee to pay any attorney fees.
AB40,945,13 11420.06 Price and cost limitations. (1) Limits on cash prices. The cash price
12for rental property offered by a rental-purchase company may not exceed the greater
13of the following:
AB40,945,1514 (a) An amount equal to twice the actual purchase price of the rental property,
15including any applicable freight charges, paid by the rental-purchase company.
AB40,945,1816 (b) The price at which property of like type and quality is offered, in the
17ordinary course of business, for sale for cash in the market area of the
18rental-purchase store where the property is offered for rental purchase.
AB40,945,23 19(2) Limits on cost of rental services and other charges. The total amount
20charged by the rental-purchase company for all required charges or fees, excluding
21applicable taxes and any late fees or reinstatement fees, in a rental-purchase
22transaction shall not exceed twice the maximum cash price of the property as
23determined under sub. (1).
AB40,946,8 24(3) Acquisition of ownership. At any time after the initial rental period under
25a rental-purchase agreement, if a lessee affirmatively elects an early-purchase

1option, the lessee may acquire ownership of the rental property by tendering an
2amount not to exceed 55 percent of the difference between the total of rental
3payments necessary to acquire ownership of the rental property and the total
4amount of rental payments paid for use of the rental property at that time, plus
5applicable taxes, except that the lessee's early-purchase option amount may not be
6less than the amount of one rental payment. Before a lessee acquires ownership of
7the rental property as provided under this subsection, a rental-purchase company
8may first require the lessee to pay any accrued unpaid rental payments and fees.
AB40,946,12 9(4) Annual percentage rate disclosure not required. A rental-purchase
10company shall not be required to disclose, in a rental-purchase agreement or
11otherwise, any percentage rate calculation, including a time-price differential, an
12annual percentage rate, or an effective annual percentage rate.
AB40,946,16 13420.07 Reinstatement of a rental-purchase agreement. (1)
14Reinstatement generally. Subject to sub. (2), a lessee may reinstate a
15rental-purchase agreement that has ended without losing any rights or options
16previously acquired if all of the following apply:
AB40,946,1817 (a) The lessee voluntarily returned or surrendered the rental property within
187 days after the expiration of the rental-purchase agreement.
AB40,946,2019 (b) Not more than 120 days have passed after the date on which the
20rental-purchase agreement ended.
AB40,946,24 21(2) Authorized conditions on reinstatement. As a condition of reinstatement
22under sub. (1), the rental-purchase company may require the payment of all
23past-due rental charges, any applicable late fees, a reinstatement fee not to exceed
24$5, and the rental payment for the next term.
AB40,947,6
1(3) Effect of repossession on reinstatement. Subject to s. 420.05 (2), nothing
2in this section prohibits a rental-purchase company from repossessing or attempting
3to repossess rental property when a rental-purchase agreement ends, but such
4efforts do not affect the lessee's right to reinstate as long as the rental property is
5voluntarily returned or surrendered within 7 days after the rental-purchase
6agreement ends.
AB40,947,11 7(4) Property available upon reinstatement. Upon reinstatement, the
8rental-purchase company shall provide the lessee with the same rental property, if
9the property is available and is in the same condition as when it was returned to the
10rental-purchase company, or with substitute property of comparable quality and
11condition.
AB40,947,15 12(5) Notice of reinstatement rights. If the lessee is entitled to reinstatement
13under subs. (1) and (2), within 15 days of repossession or voluntary return or
14surrender of the rental property, the rental-purchase company shall provide written
15notice to the lessee of the lessee's rights and obligations under this section.
AB40,947,18 16420.08 Receipts and statements. (1) Receipts. A rental-purchase company
17shall provide a written receipt to the lessee for any payment made by the lessee in
18cash or, upon the request of the lessee, for any other type of payment.
AB40,948,2 19(2) Statement due to lessee. Subject to sub. (4), upon the request of a lessee,
20a rental-purchase company shall provide a written statement to the lessee showing
21the lessee's payment history on each rental-purchase agreement between the lessee
22and the rental-purchase company. A rental-purchase company is not required to
23provide a statement covering any rental-purchase agreement that ended more than
24one year prior to the date of the lessee's request. A rental-purchase company may
25provide a single statement covering all rental-purchase agreements or separate

1statements for each rental-purchase agreement, at the rental-purchase company's
2option.
AB40,948,7 3(3) Statement due to other parties. Subject to sub. (4), upon the written
4request of a lessee, made during the term of or no later than one year after the
5rental-purchase agreement ended, a rental-purchase company shall provide a
6written statement to any person the lessee designates, showing the lessee's payment
7history under the rental-purchase agreement.
AB40,948,12 8(4) Fee for statement. A lessee or, if appropriate, a lessee's designee, is entitled
9to receive one statement under subs. (2) and (3) without charge once every 12
10months. A rental-purchase company shall provide an additional statement if the
11lessee pays the rental-purchase company's reasonable costs of preparing and
12furnishing the statement.
AB40,948,16 13420.09 Advertising disclosure required. If an advertisement for a
14rental-purchase agreement states the amount of a payment for a specific item of
15property, the advertisement shall also clearly and conspicuously state all of the
16following:
AB40,948,17 17(1) That the transaction advertised is a rental-purchase agreement.
AB40,948,19 18(2) The total number and total dollar amount of all rental payments necessary
19to acquire ownership of the property.
AB40,948,21 20(3) That the lessee does not acquire ownership of the property if the lessee fails
21to make all payments necessary to acquire ownership of the property.
AB40,948,25 22420.10 Price cards displayed. (1) Price cards generally. Except as
23provided in sub. (2), a card or tag that clearly and conspicuously states all of the
24following shall be displayed on or next to any property displayed or offered by a
25rental-purchase company for rent under a rental-purchase agreement:
AB40,949,1
1(a) The cash price that a lessee would pay to purchase the property.
AB40,949,22 (b) The amount and timing of the rental payments.
AB40,949,43 (c) The total number and total amount of all rental payments necessary to
4acquire ownership of the property under a rental-purchase agreement.
AB40,949,55 (d) The cost of rental services under a rental-purchase agreement.
AB40,949,66 (e) Whether the property is new or used.
AB40,949,12 7(2) Exceptions. If property is offered for rent under a rental-purchase
8agreement through a catalog, whether print or electronic, or if the size of the property
9is such that displaying a card or tag on or next to the property would be impractical,
10a rental-purchase company may make the disclosures required under sub. (1) in a
11catalog, list, or disclosure sheet if the catalog, list, or disclosure sheet is readily
12available to prospective lessees and provided upon request.
AB40,949,14 13420.11 Rule making. The department may promulgate rules to administer
14and enforce the requirements of this chapter.
AB40,949,18 15420.12 Penalties. (1) Award of damages. Subject to sub. (3), a
16rental-purchase company that violates any provision of this chapter, rule
17promulgated under this chapter, or order issued under this chapter pertaining to a
18lessee is liable to the lessee in an amount equal to the greater of the following:
AB40,949,1919 (a) The actual damages sustained by the lessee as a result of the violation.
AB40,949,2220 (b) If the action is not brought as a class action, 25 percent of the total payments
21necessary for the lessee to acquire ownership of the rental property, but not less than
22$100 nor more than $1,000.
AB40,949,2423 (c) If the action is brought as a class action, the amount the court determines
24to be appropriate, subject to sub. (2).
AB40,950,8
1(2) Damage limitations in class actions. The total recovery by all lessees in
2any class action or series of class actions arising out of the same violation may not
3be more than the lesser of $500,000 or 1 percent of the net worth of the
4rental-purchase company. In determining the amount of any award in a class action,
5the court shall consider, among other relevant factors, the amount of actual damages
6awarded, the frequency and persistence of the violation, the rental-purchase
7company's resources, and the extent to which the rental-purchase company's
8violation was intentional.
AB40,950,13 9(3) Unintentional violations. A rental-purchase company is not liable for any
10violation of this chapter if the rental-purchase company shows by a preponderance
11of the evidence that the violation was not intentional and resulted from a bona fide
12error, and the rental-purchase company maintained procedures reasonably adapted
13to avoid such an error.
AB40,950,17 14(4) Costs and attorney fees. If a court awards any monetary amount under
15sub. (1) to a lessee, the rental-purchase company shall also be liable to the lessee for
16the costs of the action and, notwithstanding s. 814.04 (1), for reasonable attorney fees
17as determined by the court.
AB40,950,25 18420.13 Inapplicability of Consumer Act and ch. 409. A rental-purchase
19company that has filed notice as provided under s. 420.02 (1) is not subject to the
20Wisconsin Consumer Act, chs. 421 to 427, or any related rule or order adopted under
21chs. 421 to 427, or to any provision of ch. 409, and any rental-purchase agreement
22entered into by such a rental-purchase company may not be construed or regulated
23as a security interest, credit sale, retail installment sale, conditional sale, or any
24other form of consumer credit, nor considered to be the creation of a debt or extension
25of credit.
AB40,2178
1Section 2178. 421.202 (11) of the statutes is created to read:
AB40,951,42 421.202 (11) Any rental-purchase company that has filed notice as provided
3under s. 420.02 (1) and any rental-purchase agreement entered into by such a
4rental-purchase company.
AB40,2179 5Section 2179. 440.03 (7m) of the statutes is amended to read:
AB40,951,156 440.03 (7m) The department may promulgate rules that establish procedures
7for submitting an application for a credential or credential renewal by electronic
8transmission. Any rules promulgated under this subsection shall specify procedures
9for complying with any requirement that a fee be submitted with the application.
10The rules may also waive any requirement in chs. 440 to 480 that an application
11submitted to the department, an examining board or an affiliated credentialing
12board be executed, verified, signed, sworn or made under oath, notwithstanding ss.
13440.26 (2) (b), 440.42 (2) (intro.), 440.91 (2) (intro.), 443.06 (1) (a), 443.10 (2) (a),
14445.04 (2), 445.08 (4), 445.095 (1) (a), 448.05 (7), 450.09 (1) (a), 452.10 (1) and 480.08
15(2m).
AB40,2180 16Section 2180. 440.03 (13) (b) 29. of the statutes is repealed.
AB40,2181 17Section 2181. 440.03 (13) (b) 57m. of the statutes is repealed.
AB40,2182 18Section 2182. 440.03 (13) (b) 58. of the statutes is repealed.
AB40,2183 19Section 2183. 440.05 (intro.) of the statutes is amended to read:
AB40,951,22 20440.05 Standard fees. (intro.) The following standard fees apply to all initial
21credentials, except as provided in ss. 440.42, 440.43, 440.44, 440.51, 444.03, 444.11,
22446.02 (2) (c), 447.04 (2) (c) 2., 449.17 (1m) (d), and 449.18 (2) (d):
AB40,2184 23Section 2184. 440.08 (2) (a) 23m. of the statutes is repealed.
AB40,2185 24Section 2185. 440.08 (2) (a) 35m. of the statutes is repealed.
AB40,2186 25Section 2186. 440.08 (2) (a) 63p. of the statutes is repealed.
AB40,2187
1Section 2187. 440.08 (2) (a) 63t. of the statutes is repealed.
AB40,2188 2Section 2188. Subchapter IV (title) of chapter 440 [precedes 440.41] of the
3statutes is renumbered subchapter II (title) of chapter 202 [precedes 202.11].
AB40,2189 4Section 2189. 440.41 (intro.) of the statutes is renumbered 202.11 (intro.).
AB40,2190 5Section 2190. 440.41 (1) of the statutes is renumbered 202.11 (1).
AB40,2191 6Section 2191. 440.41 (2) (intro.) of the statutes is renumbered 202.11 (2)
7(intro.).
AB40,2192 8Section 2192. 440.41 (2) (a) of the statutes is renumbered 202.11 (2) (a).
AB40,2193 9Section 2193. 440.41 (2) (b) of the statutes is renumbered 202.11 (2) (b) and
10amended to read:
AB40,952,1311 202.11 (2) (b) A benevolent, educational, philanthropic, humane, scientific,
12patriotic, social welfare or advocacy, public health, environmental conservation,
13civic, or other eleemosynary objective.
AB40,2194 14Section 2194. 440.41 (3) of the statutes is renumbered 202.11 (3) and amended
15to read:
AB40,952,2016 202.11 (3) "Charitable sales promotion" means an advertising or sales
17campaign, that is conducted by a person who is regularly and primarily engaged in
18trade or commerce for profit other than in connection with soliciting , which and that
19represents that the purchase or use of goods or services offered will benefit, in whole
20or in part, a charitable organization or charitable purpose.
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