LRBs0163/1
ARG:jld
2017 - 2018 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 353
November 7, 2017 - Offered by Representatives Considine, Spreitzer, Pope,
Bowen, Young, Hebl, Hesselbein, Crowley, Shankland and Vruwink.
AB353-ASA1,1,2 1An Act to create 185.995 of the statutes; relating to: extensions of credit by
2electric cooperatives.
Analysis by the Legislative Reference Bureau
Under this substitute amendment, an electric cooperative's extension of credit
to its member or its member's landlord to finance qualifying expenses is not subject
to most provisions of the Wisconsin Consumer Act if the electric cooperative enters
into a written agreement with the member or the member's landlord covering the
extension of credit and if the written agreement satisfies certain requirements,
discussed below. The substitute amendment defines “electric cooperative” as a
cooperative that carries on the business of generating, transmitting, or distributing
electric energy to its members at wholesale or retail. The substitute amendment
defines “qualifying expenses” as expenses associated with any project relating to
energy efficiency, energy conservation, electric safety, or emergency back-up
generation (qualifying project). The written agreement between the electric
cooperative and the member or the member's landlord may not contain any provision
that does any of the following: 1) with exceptions, requires a schedule of payments
under which any one payment is not substantially equal to all other payments or
under which the intervals between any consecutive payments differ substantially;
2) requires payment of a late charge for an installment payment that is ten or fewer
days late or a late charge that is greater than 1 percent of the unpaid amount of the
installment; 3) allows a charge of more than $30 for a dishonored check; 4) requires

the party who does not prevail in a court proceeding or other dispute to pay the
attorney fees of the prevailing party; or 5) authorizes the electric cooperative to
confess judgment against the member or member's landlord in any action arising
under the agreement. The written agreement must include a provision that grants
to the member or member's landlord the right to prepay, without penalty, the unpaid
balance of the extension of credit.
The substitute amendment also includes provisions relating to the electric
cooperative's right to recover costs associated with a qualifying project against the
borrower and against other persons. An electric cooperative that extends credit to
its member or its member's landlord to finance qualifying expenses may recover the
costs, including financing costs and repayment installments, as line item charges on
its electric bills issued to the member or member's landlord. The written agreement
between the electric cooperative and its member, or its member's landlord with the
member's written consent, may provide that costs, including financing costs and
installment repayments, must be recovered as a project electric account charge on
the account of the member associated with the property where the qualifying project
will be completed. The substitute amendment defines “project electric account
charge” as the charge placed on a member's account by which an electric cooperative
may recover costs, including financing costs of qualifying expenses. The written
agreement may also provide that project electric account charges will apply to
subsequent owners or tenants of the property, except that, if the agreement is with
a member who is a tenant, the landlord must also agree and must be given notice,
in the agreement, of the landlord's obligation to give notice to future tenants or
purchasers (discussed below). If the written agreement between the electric
cooperative and its member or member's landlord provides that project electric
account charges will apply to subsequent owners or tenants of the property, the
electric cooperative may record a notice of electric account charge in the office of the
register of deeds for the county in which the property is located. This notice must
include certain information, including a statement that the electric account
associated with the property is subject to project electric account charges and other
information related to these charges. If this notice is recorded and there is a
subsequent transfer of ownership or change in tenancy of the property, the electric
cooperative may recover the project electric account charge from the transferee or
tenant as line item charges on the transferee or tenant's electric bills. If the electric
account associated with leased property is subject to a project electric account charge
pursuant to a written agreement between the electric cooperative and its member or
member's landlord, the property owner must provide notice of the written agreement
and a copy of the notice of electric account charge to each subsequent lessee of the
property responsible for paying the electric bills issued by the electric cooperative.
If a subsequent lessee is responsible for payment of charges and, before entering into
a lease for the property, the property owner failed to provide the subsequent lessee
with the required notice, the subsequent lessee may deduct from the lessee's rent, for
no more than one‐half of the term of the lease, the amount of the charges for which
the subsequent lessee is responsible.

Under the substitute amendment, an electric cooperative may contract with
any third party to perform, on its behalf, a function permitted of the electric
cooperative, including the provision of financing, but the third party must comply
with all requirements applicable to the electric cooperative.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB353-ASA1,1 1Section 1. 185.995 of the statutes is created to read:
AB353-ASA1,3,3 2185.995 Extensions of credit by electric cooperatives for certain
3projects. (1)
In this section:
AB353-ASA1,3,64 (a) “Electric cooperative” means an association incorporated under this chapter
5or authorized to do business in this state that carries on the business of generating,
6transmitting, or distributing electric energy to its members at wholesale or retail.
AB353-ASA1,3,97 (b) “Notice of electric account charge” means the written notice by which
8subsequent purchasers or tenants will be given notice that they will be required to
9pay a project electric account charge.
AB353-ASA1,3,1210 (c) “Project electric account charge” means the charge placed on a member's
11account by which an electric cooperative may recover costs, including financing costs
12of qualifying expenses.
AB353-ASA1,3,1413 (d) “Qualifying expenses” means expenses associated with a qualifying project,
14including any purchase price or installation cost.
AB353-ASA1,3,1615 (e) “Qualifying project” means any project relating to energy efficiency, energy
16conservation, electric safety, or emergency back-up generation.
AB353-ASA1,4,2 17(2) (a) An electric cooperative's extension of credit to its member or its
18member's landlord to finance qualifying expenses is not subject to chs. 421 to 426 if
19the electric cooperative enters into a written agreement with the member or the

1member's landlord covering the extension of credit and if the written agreement
2satisfies all requirements under pars. (b) and (c).
AB353-ASA1,4,43 (b) The written agreement under par. (a) may not contain any provision that
4does any of the following:
AB353-ASA1,4,85 1. Requires a schedule of payments under which any one payment is not
6substantially equal to all other payments or under which the intervals between any
7consecutive payments differ substantially. This subdivision does not apply to any of
8the following:
AB353-ASA1,4,109 a. A down payment related to the qualifying project that is excluded from the
10amount being financed.
AB353-ASA1,4,1211 b. A final scheduled payment that is not more than 5 percent greater than the
12average amount of the other, substantially equal, scheduled payments.
AB353-ASA1,4,1513 c. An initial scheduled payment that includes interest charged for a first
14installment period that is shorter than, or not more than 150 percent longer than,
15the remainder of the installment periods.
AB353-ASA1,4,1716 2. Requires payment of a delinquency charge for an installment not paid in full
17by its scheduled due date under any of the following circumstances:
AB353-ASA1,4,1918 a. The period of delinquency is 10 days or less and the installment is paid in
19full on or before the 10th day after its due date.
AB353-ASA1,4,2120 b. The delinquency charge exceeds 1 percent of the unpaid amount of the
21installment.
AB353-ASA1,4,2322 c. A delinquency charge was previously imposed for the same unpaid
23installment or there was a deferral of the installment payment.
AB353-ASA1,4,2524 3. Allows a charge to be imposed that exceeds $30 for each check presented for
25payment that is returned as dishonored.
AB353-ASA1,5,3
14. Requires the party who does not prevail in a court proceeding or other
2dispute to pay the attorney fees of the prevailing party in the court proceeding or
3dispute.
AB353-ASA1,5,74 5. Authorizes the electric cooperative to confess judgment against the member
5or member's landlord in any action arising under the agreement or otherwise
6requires the member or member's landlord to provide a power of attorney or other
7authorization for the electric cooperative to confess judgment.
AB353-ASA1,5,108 (c) The written agreement under par. (a) shall include a provision that grants
9to the member or member's landlord the right to prepay in full or in part, at any time
10and without penalty, the unpaid balance of the extension of credit.
AB353-ASA1,5,1611 (d) The written agreement under par. (a) may provide that costs, including
12financing costs and installment repayments, must be recovered as a project electric
13account charge on the account of the member associated with the property where the
14qualifying project will be completed. If the written agreement is between the
15cooperative and the member's landlord, this paragraph does not apply unless the
16member consents in writing.
AB353-ASA1,5,1917 (e) 1. The written agreement under par. (a) may provide that project electric
18account charges will apply to subsequent owners or tenants of the property
19associated with the property where the qualifying project will be completed.
AB353-ASA1,5,2320 2. If the written agreement is between the cooperative and a member who is
21a tenant of the property associated with the account, this paragraph does not apply
22unless both the landlord and the tenant agree and the agreement provides notice to
23the landlord of the obligation contained in sub. (6).
AB353-ASA1,6,3
1(3) An electric cooperative that extends credit as provided in sub. (2) (a) may
2recover the costs, including financing costs and repayment installments, as line item
3charges on its electric bills issued to the member or member's landlord.
AB353-ASA1,6,10 4(4) If a written agreement under sub. (2) (a) provides that project electric
5account charges will apply to subsequent account holders, the electric cooperative
6may record a written notice of electric account charge in the office of the register of
7deeds for the county in which the property associated with the electric account is
8located. The notice of electric account charge shall not constitute a lien on the
9property. The notice of electric account charge shall include at least all of the
10following:
AB353-ASA1,6,1111 (a) A legal description of the property associated with the electric account.
AB353-ASA1,6,1312 (b) A statement that the electric account associated with the property is subject
13to project electric account charges.
AB353-ASA1,6,1714 (c) A statement informing prospective purchasers of the property of how to
15ascertain the amount of the charges, the length of time the charges are expected to
16remain in effect, and the obligation under sub. (6) to notify each lessee if the
17purchaser leases the property.
AB353-ASA1,6,1818 (d) A statement that the notice does not constitute a lien on the property.
AB353-ASA1,6,24 19(5) If there is a transfer of ownership or change in tenancy of property
20associated with an electric account that is subject to a project electric account charge,
21the electric cooperative may recover the project electric account charge from the
22transferee or tenant as line item charges on the transferee or tenant's electric bills
23if a written notice of electric account charge was properly recorded with reference to
24the property prior to the date of the transfer of ownership or change in tenancy.
AB353-ASA1,7,10
1(6) If the electric account associated with leased property is subject to a project
2electric account charge pursuant to a written agreement under sub. (2), the property
3owner shall provide notice of the written agreement and a copy of the notice of electric
4account charge to each subsequent lessee of the property responsible for paying the
5electric bills issued by the electric cooperative. If a subsequent lessee is responsible
6for payment of charges under this subsection and, before entering into a lease for the
7property, the property owner failed to provide the subsequent lessee with notice as
8required by this subsection, the subsequent lessee may deduct from the lessee's rent,
9for no more than one‐half of the term of the lease, the amount of the charges for which
10the subsequent lessee is responsible under this subsection.
AB353-ASA1,7,14 11(7) An electric cooperative may contract with any 3rd party to perform, on its
12behalf, any function permitted of the cooperative under this section, including the
13provision of financing, but the 3rd party must comply with all requirements under
14this section applicable to the cooperative.
AB353-ASA1,7,19 15(8) (a) By entering into a written agreement under sub. (2), an electric
16cooperative does not assume liability or provide any warranty for any aspect of a
17qualifying project or any qualifying expense. This paragraph does not apply with
18respect to work undertaken by an electric cooperative and does not limit any rights
19or remedies of a member or member's landlord against any other party.
AB353-ASA1,7,2120 (b) This section does not limit an electric cooperative's authority to offer to its
21members any other type of financing otherwise available under law.
Loading...
Loading...