LRB-3489/1
ARG:jld:rs
2013 - 2014 LEGISLATURE
January 22, 2014 - Introduced by Representatives Bies, Berceau, Hintz, Hulsey
and T. Larson, cosponsored by Senator Lehman. Referred to Committee on
Criminal Justice.
AB653,1,4
1An Act to renumber and amend 425.2065 (1);
to amend 425.2065 (title) and
2425.2065 (3); and
to create 425.206 (2) (c), 425.2065 (1) (b), 425.2065 (4) and
3425.401 (3) of the statutes;
relating to: personal property within repossessed
4motor vehicles and providing a penalty.
Analysis by the Legislative Reference Bureau
Current law adopts the Uniform Commercial Code (UCC) Article 9 — Secured
Transactions, which governs transactions that involve the granting of credit secured
by personal property of a debtor. The creditor's interest is called a "security interest."
UCC Article 9 regulates the creation and enforcement of security interests in
movable property but not in real property. Under UCC Article 9, if a debtor defaults,
the creditor may take possession of (repossess) the property (collateral) if the creditor
proceeds through judicial process or without breach of the peace. The creditor may
then sell the repossessed collateral to satisfy the debt.
Under current law, a consumer credit transaction that is entered into for
personal, family, or household purposes is generally subject to the Wisconsin
Consumer Act (WCA). A consumer credit transaction, which includes consumer
loans and consumer credit sales, means in part a transaction between a merchant
and a customer in which money or personal property is acquired on credit. A
merchant is defined to include a creditor or a seller of personal property on credit.
Like the UCC, the WCA includes provisions relating to enforcement of a merchant's
security interest in collateral resulting from a consumer credit transaction,
including provisions specifically applicable when the collateral is a motor vehicle.
Under the WCA, a merchant may repossess collateral that is a motor vehicle if
certain requirements are met, including giving notice to the debtor and law
enforcement, the elapse of at least 15 days since both the debtor's default and the
merchant's notice to the debtor, and repossession without breach of the peace.
This bill creates additional requirements under the WCA related to
repossession of a motor vehicle. Under the bill, at the time a motor vehicle is
repossessed, the person who repossesses the motor vehicle must make a written
inventory of all personal property within the motor vehicle. No later than 48 hours
after the repossession, the merchant or a person acting on behalf of the merchant
(merchant) must deliver to the debtor from whom the motor vehicle was repossessed
all personal property identified in this written inventory. The merchant may not
impose a fee on the debtor for delivery of this personal property. The merchant is also
responsible for safeguarding this personal property from the time of repossession to
the time it is delivered to the debtor and must deliver the personal property in as good
of a condition as it was in at the time the motor vehicle was repossessed. If a
merchant intentionally fails to deliver the debtor's personal property within 48
hours after the motor vehicle was repossessed, the merchant is subject to the penalty
for a Class A misdemeanor, which is a fine not exceeding $10,000 or imprisonment
not exceeding nine months or both.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report concerning the proposed penalty and the costs or savings that are likely to
result if the bill is enacted.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB653,1
1Section
1. 425.206 (2) (c) of the statutes is created to read:
AB653,2,32
425.206
(2) (c) For motor vehicle collateral or goods subject to a motor vehicle
3consumer lease, fail to comply with s. 425.2065 (4).
AB653,2
4Section
2. 425.2065 (title) of the statutes is amended to read:
AB653,2,6
5425.2065 (title)
Notice to law enforcement
; personal property in
6vehicle.
AB653,3
7Section
3. 425.2065 (1) of the statutes is renumbered 425.2065 (1) (intro.) and
8amended to read:
AB653,2,99
425.2065
(1) (intro.) In this section
, "law:
AB653,3,4
1(a) "Law enforcement agency" means the police department, combined
2protective services department under s. 60.553, 61.66, or 62.13 (2e), or sheriff, that
3has primary responsibility for providing police protection services in the city, village,
4or town in which a repossession is expected to occur.
AB653,4
5Section
4. 425.2065 (1) (b) of the statutes is created to read:
AB653,3,76
425.2065
(1) (b) "Personal property" means all property within a vehicle which
7is not mounted, attached, or affixed to the vehicle.
AB653,5
8Section
5. 425.2065 (3) of the statutes is amended to read:
AB653,3,109
425.2065
(3) Failure to comply with
this subsection sub. (2) does not constitute
10a failure to comply with s. 425.206 (1) (d).
AB653,6
11Section
6. 425.2065 (4) of the statutes is created to read:
AB653,3,1412
425.2065
(4) (a) At the time a motor vehicle is repossessed under sub. (2), the
13person who repossesses the motor vehicle shall make a written inventory of all
14personal property within the motor vehicle.
AB653,3,1815
(b) 1. No later than 48 hours after a motor vehicle is repossessed under sub. (2),
16the merchant, or a person acting on behalf of the merchant, shall deliver to the
17customer from whom the motor vehicle was repossessed all personal property
18identified in the written inventory under par. (a).
AB653,3,1919
2. No fee may be imposed on the customer for delivery of this personal property.
AB653,3,2520
(c) From the time a motor vehicle is repossessed under sub. (2) until personal
21property within the repossessed motor vehicle is delivered to the customer under par.
22(b) 1., the merchant is responsible for safeguarding the personal property. The
23merchant, or a person acting on behalf of the merchant, shall deliver the personal
24property to the customer, as provided in par. (b) 1., in as good of a condition as it was
25in at the time the motor vehicle was repossessed.
AB653,7
1Section
7. 425.401 (3) of the statutes is created to read:
AB653,4,32
425.401
(3) A person who intentionally violates s. 425.2065 (4) (b) 1. is subject
3to the penalty for a Class A misdemeanor under s. 939.51.
AB653,8
4Section
8.
Initial applicability.
AB653,4,65
(1) This act first applies to motor vehicles repossessed on the effective date of
6this subsection.
AB653,9
7Section
9.
Effective date.
AB653,4,98
(1)
This act takes effect on the first day of the 4th month beginning after
9publication.
