LRB-3870/1
PJK:jld:jf
2009 - 2010 LEGISLATURE
March 9, 2010 - Introduced by Representative Steinbrink, cosponsored by Senator
Wirch. Referred to Committee on Urban and Local Affairs.
AB826,1,8
1An Act to amend 632.10 (1), 632.101 (1), 632.101 (2) (b) 2., 632.102 (3) (a) 1.,
2632.102 (3) (b) 6. a., 632.102 (3) (b) 6. b., 632.103 (1) (title), 632.103 (1) (a)
3(intro.), 632.103 (1) (b), 632.103 (1) (c), 632.103 (1) (d) (intro.), 632.103 (1) (d) 1.,
4632.103 (1) (d) 2., 632.103 (2) (a) (intro.), 632.103 (2) (b), 632.103 (2) (c) and
5632.103 (3) (intro.); and
to create 632.10 (4) of the statutes;
relating to:
6expanding to all cities and villages the procedure for withholding property
7insurance proceeds to reimburse expenses incurred to demolish or abate a
8nuisance.
Analysis by the Legislative Reference Bureau
Current law provides a process whereby an insurer may withhold a portion of
property insurance proceeds that are payable to an insured for damage by fire or
explosion to insured property located in a first class city (Milwaukee), excluding
one-family and two-family dwellings that are occupied by the named insured. The
insurer, after notice and other requirements are satisfied, may pay to the city of
Milwaukee (city) from the withheld proceeds funds to reimburse the city for expenses
incurred to demolish the damaged insured property or abate a nuisance with respect
to the insured property. The insurer may pay the proceeds to the city only if the
insured does not repair or replace the damaged portions of the insured property and
the city, within 90 days after notice from the insurer, either: 1) commences an action
or proceeding relating to demolition of the property or abatement of a nuisance with
respect to the property; or 2) obtains a release from the insured consenting to
demolition of the damaged structure. This bill expands this process for withholding
insurance proceeds for reimbursement of expenses to real property located in any
city or village in the state.
For further information see the local 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:
AB826, s. 1
1Section
1. 632.10 (1) of the statutes is amended to read:
AB826,2,52
632.10
(1) "Building and safety standards" means the requirements of chs. 101
3and 145 and of any rule promulgated by the department of commerce under ch. 101
4or 145, and standards of a
1st class city municipality relating to the health and safety
5of occupants of buildings.
AB826, s. 2
6Section
2. 632.10 (4) of the statutes is created to read:
AB826,2,77
632.10
(4) "Municipality" means a city or village.
AB826, s. 3
8Section
3. 632.101 (1) of the statutes is amended to read:
AB826,2,149
632.101
(1) Affected policies. Except as provided in sub. (2), every property
10insurance policy issued or delivered in this state, including property insurance
11policies issued under the mandatory risk-sharing plan operating under s. 619.01,
12that insures real property located in a
1st class city
municipality against loss caused
13by fire or explosion shall provide for payment of any final settlement under the policy
14in the manner described in ss. 632.102 to 632.104.
AB826, s. 4
15Section
4. 632.101 (2) (b) 2. of the statutes is amended to read:
AB826,3,216
632.101
(2) (b) 2. If the named insured does not possess a valid Wisconsin
17operator's license, the named insured gives proof of occupancy to the
1st class city 18municipality by documentation approved by the
1st class city municipality. Upon
1acceptance of the proof, the
1st class city
municipality shall immediately notify the
2insurer that a policy issued on the property is exempt from ss. 632.10 to 632.104.
AB826, s. 5
3Section
5. 632.102 (3) (a) 1. of the statutes is amended to read:
AB826,3,54
632.102
(3) (a) 1. The building
inspection official inspector of the
1st class city 5municipality in which the insured real property is located.
AB826, s. 6
6Section
6. 632.102 (3) (b) 6. a. of the statutes is amended to read:
AB826,3,187
632.102
(3) (b) 6. a. That for the
1st class city municipality to qualify for
8reimbursement of expenses from the funds withheld under this section, the
1st class
9city municipality must, after the loss occurs but within 90 days after delivery of the
10notice of withholding under this subsection, commence proceedings under s. 66.0413,
11254.595
, or 823.04 or under a local ordinance relating to demolition or abatement of
12nuisances or obtain a release signed by the named insured consenting to demolition
13with respect to the building or other structure; that if the
1st class city municipality 14commences the proceedings or obtains the release within that time period, a part or
15all of the withheld funds may be used to defray the
1st class city's municipality's 16expenses; and that the withheld funds will be released to the named insured and
17other interests named in the policy if the
1st class city municipality does not
18commence the proceedings or obtain the release within that time period.
AB826, s. 7
19Section
7. 632.102 (3) (b) 6. b. of the statutes is amended to read:
AB826,3,2420
632.102
(3) (b) 6. b. That the withheld funds may be released to the named
21insured and other interests named in the policy if an official of the
1st class city 22municipality determines under s. 632.103 (3) that the building or other structure has
23been repaired or replaced or the site restored to a dust-free and erosion-free
24condition.
AB826, s. 8
25Section
8. 632.103 (1) (title) of the statutes is amended to read:
AB826,4,1
1632.103
(1) (title)
Release to
1st class city municipality.
AB826, s. 9
2Section
9. 632.103 (1) (a) (intro.) of the statutes is amended to read:
AB826,4,43
632.103
(1) (a) (intro.) To qualify for reimbursement of expenses under sub. (2),
4the
1st class city municipality must do any of the following:
AB826, s. 10
5Section
10. 632.103 (1) (b) of the statutes is amended to read:
AB826,4,96
632.103
(1) (b) The
1st class city
municipality shall commence proceedings
7under par. (a) 1. or obtain the release under par. (a) 2. after the occurrence of the loss
8to the building or other structure by fire or explosion but within 90 days after delivery
9of the notice of withholding under s. 632.102 (3).
AB826, s. 11
10Section
11. 632.103 (1) (c) of the statutes is amended to read:
AB826,4,1411
632.103
(1) (c) When proceedings described in par. (a) 1. are commenced, the
121st class city municipality shall notify, in writing, the insurer, the named insured
, 13and any mortgagee or other lienholder identified in the notice of withholding under
14s. 632.102 (3) (b) 2. that the proceedings are commenced.
AB826, s. 12
15Section
12. 632.103 (1) (d) (intro.) of the statutes is amended to read:
AB826,4,1916
632.103
(1) (d) (intro.) The
1st class city municipality shall release all interest
17in the amount withheld under s. 632.102 (2) and the insurer shall promptly pay that
18amount to the named insured and other interests named in the policy if any of the
19following occurs:
AB826, s. 13
20Section
13. 632.103 (1) (d) 1. of the statutes is amended to read:
AB826,4,2321
632.103
(1) (d) 1. The
1st class city
municipality fails to commence proceedings
22described in par. (a) 1. or obtain a release described in par. (a) 2. within the period
23provided in par. (b).
AB826, s. 14
24Section
14. 632.103 (1) (d) 2. of the statutes is amended to read:
AB826,5,2
1632.103
(1) (d) 2. The
1st class city municipality fails to notify the insurer as
2provided in par. (c).
AB826, s. 15
3Section
15. 632.103 (2) (a) (intro.) of the statutes is amended to read:
AB826,5,94
632.103
(2) (a) (intro.) If the
1st class city municipality satisfies sub. (1) (a) and
5(b) and, if applicable, notifies the insurer as required in sub. (1) (c), the insurer shall
6promptly upon receiving the statement under par. (b) deliver to the
1st class city 7municipality funds withheld from the named insured's final settlement under s.
8632.102 (2), to the extent necessary to reimburse the
1st class city municipality for
9any of the following expenses:
AB826, s. 16
10Section
16. 632.103 (2) (b) of the statutes is amended to read:
AB826,5,1411
632.103
(2) (b) The insurer may not release any withheld funds to the
1st class
12city municipality under par. (a) unless the
1st class city municipality delivers to the
13insurer and the named insured an itemized statement of the actual costs incurred
14under par. (a) 1. to 4.
AB826, s. 17
15Section
17. 632.103 (2) (c) of the statutes is amended to read:
AB826,5,1816
632.103
(2) (c) The insurer shall promptly deliver to the named insured and
17other interests named in the policy any portion of the withheld funds that are not
18released to the
1st class city municipality under par. (a).
AB826, s. 18
19Section
18. 632.103 (3) (intro.) of the statutes is amended to read:
AB826,6,220
632.103
(3) Release to named insured. (intro.) Except as provided in sub. (2),
21the insurer shall promptly deliver to the named insured and other interests named
22in the policy the funds withheld from the named insured's final settlement under s.
23632.102 (2) if the
1st class city municipality delivers a notice to the insurer that the
24building
inspection official inspector of the
1st class city municipality, or other person
25who is authorized by the
1st class city's municipality's governing body to represent
1the
1st class city municipality, has inspected the insured real property and verifies
2any of the following:
AB826,6,54
(1) This act first applies to property insurance policies that are issued or
5renewed on the effective date of this subsection.
