Wisconsin 2025 Regular Session Status: Passed Assembly Bipartisan · 7 R · 7 D cosponsors

AB 742 — Relating to: regulation of lease-purchase agreements for personal property and creating a cause of action.

Last action — Failed to concur in pursuant to Senate Joint Resolution 1

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has passed the Assembly. Introduced December 03, 2025. It now moves to the second chamber.

Next likely step: consideration and a floor vote in the Senate.

Prognosis

Advancing 58% · high confidence

Where this bill stands today.

Odds of enactment

Moderate

How often bills like it became law.

  • Passed Assembly

    Current position in the legislative process.

  • 19 sponsors

    1 primary, 18 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (7 R · 7 D) — cross-party backing.

  • Mixed recorded votes

    2 passed, 1 failed in recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

An Act to create chapter 420 of the statutes;

Bill Text

What changed in the latest version

489 added · 109 removed

Plain-language change summary

The recent amendments to Assembly Bill 742 add important clarity and consumer protections regarding lease-purchase agreements for personal property. Notably, the bill now includes provisions requiring that all terms of these agreements, including any additional services offered, be clearly disclosed to consumers before they sign. This change aims to ensure that individuals understand the full terms and costs involved, which can prevent confusion and potential exploitation in these transactions. Moreover, the amendments prohibit lessors from using threats or violence when discussing payment terms, adding a significant layer of protection for consumers.

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- 2026 LEGISLATURE LRBa0839/1 ARG:cjs ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 742 January 30, 2026 - Offered by RepresentatUSTAFSON .
- 2026 LEGISLATURE LRB-3737/1 ARG:emw ASSEMBLY BILL 742 December 3, 2025 - Introduced by Representatives USTAFSON , MC CARVILLE, SWEARINGEN , K NODL, S PIRO, K RUG, K REIBIC, P IWOWARCZYK , BROWN , D ESMIDT, O RTI-VELEZ, STUBBS and P RADO, cosponsored by Senators TOMCZYK , D RAKE, SMITH, JAMES , L.
At the locations indicated, amend the bill as follows:
JOHNSON and F EYEN.
Referred to Committee on Ways and Means.
A N A CT to create chapter 420 of the statutes;
relating to:
regulation of lease- purchase agreements for personal property and creating a cause of action.
Analysis by the Legislative Reference Bureau This bill creates a new regulatory framework for lease-purchase agreements for personal property.
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 (consumer act).
The consumer act grants consumers certain rights and remedies and contains notice and disclosure requirements and prohibitions relating to consumer credit transactions, including credit sales and consumer leases that have a term of more than four months.
In addition, the consumer act applies to any other consumer lease if the lessee pays or agrees to pay at least an amount that is substantially equal to the value of the leased property and if the lessee will become, or for not more than a nominal additional payment has the option to become, the owner of the leased property.
The bill defines a “lease-purchase agreement” as an agreement for the use of personal property (goods) by an individual (consumer) if 1) the goods are to be used for personal, family, or household purposes;
2) the agreement is for an initial period of four months or less and is automatically renewable with each payment after the initial period, but does not obligate the consumer to continue renting the goods beyond the initial period;
and 3) the agreement permits the consumer to become the owner of the goods.
A “lessor” is a person who regularly provides the use of goods - 2026 Legislature - 2 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 under lease-purchase agreements and to whom periodic payments are initially payable under the lease-purchase agreement.
Under the bill, a lease-purchase agreement must be in writing, designated “lease-purchase agreement,” dated, signed by the consumer and lessor, and completed as to all essential provisions.
The lessor must provide the consumer with a copy of the agreement.
The agreement must include the disclosures described below, above the line for the consumer's signature, and these disclosures must be made on or before the date the consumer enters into the agreement.
The agreement must be available to a consumer in any language in which the lessor advertises.
The bill requires a lessor to disclose in each lease-purchase agreement all of the following to the extent applicable:
Page 5, line 11:
The period for periodic payments (for example, weekly or monthly), the dollar amount of each payment, and the total number and total dollar amount of all periodic payments necessary to acquire ownership of the goods.
after “individual” insert “, which agreement may also include ancillary services,”.
Page 7, line 14:
A statement that the consumer will not own the goods until the consumer has paid the total amount necessary to acquire ownership.
after that line insert:
“(5m) All lease-purchase agreement terms required by this chapter shall be disclosed in a manner that does not obscure the terms from the consumer’s view before the consumer executes the lease-purchase agreement.”.
Page 8, line 12:
A statement advising the consumer whether the consumer is liable for loss or damage to the goods and, if so, a statement as to the limit of this liability (as discussed below).
after “requirement.” insert “This statement shall be disclosed along with a disclosure of the cost of the lease, described as the amount over the cash-sale price the consumer will pay if the consumer makes all periodic payments.
These statements of the cash-sale price and cost of the lease shall be - 2026 Legislature - 2 - LRBa0839/1 ARG:cjs clearly and conspicuously disclosed in the lease-purchase agreement in a graphic box or table that also includes the disclosures required in sub.
(1).”.
Page 10, line 17:
A brief description of the goods, including whether the goods are new or used.
after that line insert:
“420.055 Prohibited practices.
(1) In communicating to consumers about periodic payments or amounts accrued, a lessor may not do any of the following:
(a) Use or threaten force or violence to cause physical harm to the consumer or the consumer’s dependents or property.
(b) Threaten criminal prosecution.
(c) Disclose or threaten to disclose information adversely affecting the consumer’s reputation with knowledge or reason to know that the information is false.
(d) Initiate or threaten to initiate communication with the consumer’s employer, except as permitted by other state law.
This paragraph does not prohibit a lessor from communicating with a consumer’s employer solely to verify employment status or earnings when authorized by the consumer or in circumstances in which an employer has an established debt counseling service or procedure.
(e) Disclose or threaten to disclose to a person other than the consumer or, if required by law, to the consumer’s spouse information with respect to a lease- purchase agreement affecting the consumer’s reputation, with knowledge or reason to know that the other person does not have a legitimate business need for the information.
This paragraph does not prohibit the disclosure to another person of information permitted to be disclosed to that person by other law.
(f) Disclose or threaten to disclose information concerning the existence of a - 2026 Legislature - 3 - LRBa0839/1 ARG:cjs lease-purchase agreement known to be reasonably disputed by the consumer without disclosing the fact that the consumer disputes the lease-purchase agreement.
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(g) Communicate with the consumer or a person known by the lessor to be related to the consumer with such frequency or at such unusual hours or in such a manner as can reasonably be expected to threaten or harass the consumer.
(h) Engage in conduct other than that described in par.
(g) that can reasonably be expected to threaten or harass the consumer or a person known by the lessor to be related to the consumer.
(i) Use obscene or threatening language in communicating with the consumer or a person known by the lessor to be related to the consumer (j) Claim, or attempt or threaten to enforce, a right with knowledge or reason to know that the right does not exist.
(k) Use a communication that simulates legal or judicial process or which gives the appearance of being authorized, issued, or approved by a government, governmental agency, or attorney at law when it is not.
(L) Threaten action against the consumer unless like action is taken in regular course or is intended with respect to the particular unpaid periodic payment related to the lease-purchase agreement.
(m) Engage in conduct after like conduct by the lessor has been restrained or enjoined by a court in a civil action pursuant to any law providing for injunctions against false, misleading, deceptive, or unconscionable agreements or conduct.
(2) If a lessor is not otherwise in violation of sub.
(1) (j) with respect to a lease- purchase agreement with a consumer, it is not a violation of this section to send a - 2026 Legislature - 4 - LRBARG:cjs lease-purchase agreement statement or other notice to, or to seek payment of the amount of periodic payments and other lawfully accrued amounts from, the spouse of that consumer, if notice to the consumer’s spouse is provided in compliance with applicable law.
(3) A lessor may not enter into a lease-purchase agreement with a consumer who does not have the capacity to contract under the law of this state due to age, infirmity, or any other circumstance.”.
Page 10, line 19:
A statement of the cash-sale price of the goods.
after “may” insert “return the goods that are the subject of the lease-purchase agreement or”.
The “cash-sale price” is defined as the price stated in the lease-purchase agreement for which the lessor would have sold and the consumer would have bought the goods if the transaction had been a sale for cash.
Page 10, line 22:
The total amount of initial payments paid or required on or before the date the consumer enters into the lease-purchase agreement.
delete “with” and substitute “or the date the goods were returned if the lease-purchase agreement requires”.
Page 11, line 1:
A statement that the total amount of payments necessary to acquire ownership of the goods does not include other charges or fees and a statement of all other charges or fees.
delete “of a” and substitute “or the date the goods were returned if the”.
Page 11, line 2:
A statement clearly summarizing the terms of the consumer's early purchase option.
delete “requiring” and substitute “requires”.
Page 11, line 11:
A statement describing responsibility for maintaining or servicing the goods.
on lines 11 and 17, after “date” insert “or the date the goods were returned”.
Page 12, line 2:
A statement that the consumer may terminate the lease-purchase agreement without penalty by voluntarily surrendering or returning the goods in good repair, reasonable wear and tear excepted, along with any past-due periodic payments, upon expiration of any lease period.
after that line insert:
11.
“(5) A lessor who believes that a consumer retained possession of the goods that are the subject of a lease-purchase agreement after the renewal date without making a payment to renew the lease-purchase agreement may give the consumer written notice of the nonpayment and, if applicable, of the consumer’s right to reinstate under this section.
Notice of the right to reinstate the lease-purchase agreement (as discussed below).
This notice shall contain all of the following:
12.
- 2026 Legislature - 5 - LRBa0839/1 ARG:cjs (a) The name, address, and telephone number of the lessor.
A notice stating the following:
(b) A brief identification of the lease-purchase agreement.
“Do not sign this agreement before you read it or if it contains blank spaces.
(c) A reminder of the renewal date and amount of the periodic payment that must be paid to renew the lease-purchase agreement.
You are entitled to a copy of the agreement you sign.” The bill also prohibits certain provisions in a lease-purchase agreement, - 2026 Legislature - 3 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 including a confession of judgment;
(d) A clear statement of the amount of the payment required to renew the lease-purchase agreement, including the amount specified in par.
a security interest in the consumer’s property;
(c) and an itemization of all additional charges lawfully accrued under the lease-purchase agreement necessary to exercise the option to renew.
a wage assignment;
(e) The action necessary to exercise the option to return the goods.
the consumer’s waiver of claims or defenses;
(f) The exact due date for payment required to exercise the right to reinstate under this section.
authorization to enter the consumer's premises unlawfully or to commit a breach of the peace in repossessing the goods;
(g) The name, address, and telephone number of the person to whom payment must be directed, if other than the lessor.”.
requiring the consumer to purchase insurance or a liability damage waiver from the lessor;
(END )
requiring the consumer to make a balloon payment or additional payments to acquire ownership of the goods;
and requiring the consumer to pay multiple reinstatement fees on a periodic payment or a late charge in addition to a reinstatement fee.
The bill requires a lessor, upon request by the consumer, to provide the consumer with a written receipt for each payment made.
The bill also requires a lessor to include in a lease-purchase agreement an early purchase option, the terms of which are governed by the agreement.
Under the bill, if a consumer is liable for loss or damage to goods, the consumer’s liability may not exceed the fair market value of the goods as of the time they are lost or damaged.
The bill also requires the lessor, if the consumer acquires ownership of goods covered by an express warranty, to transfer the warranty to the consumer if allowed by the terms of the warranty.
Under the bill, a consumer who fails to make a timely payment may reinstate the lease-purchase agreement without losing any rights or options under the agreement by paying, within five days after the end of the payment period (renewal date) if periodic payments are monthly or within two days if periodic payments are more frequent, all of the following:
1) all past-due lease charges;
2) if the goods were picked up by the lessor, the reasonable costs of pickup and redelivery of the goods to the consumer;
and 3) any applicable reinstatement fee.
However, if the consumer returned the goods to the lessor within seven days of the renewal date, the consumer has at least 21 days from the date the goods were returned to reinstate the lease­purchase agreement, except that the consumer has at least 30 days if the consumer has paid at least two-thirds of the total of payments necessary to acquire ownership of the goods.
Upon reinstatement, if the consumer no longer has possession of the goods, the lessor must provide the consumer with the same goods, if available, or with substitute goods of comparable quality and condition.
A lessor’s repossession of goods (if authorized under other law) during the reinstatement period does not affect the consumer’s right to reinstate.
Under the bill, if the lessor and consumer renegotiate any term of the lease- purchase agreement that is a required disclosure identified in items 1 to 12 above, the change requires a new lease-purchase agreement that includes all the disclosures identified in items 1 to 12 above.
However, this does not include certain changes, such as a change to the date of the periodic payment, deferral or waiver of a periodic payment, or reinstatement of a lease-purchase agreement.
The bill also governs advertisements that solicit consumers to enter into lease- purchase agreements.
If the advertisement refers to the dollar amount of a periodic payment and the right to acquire ownership of specific goods, the advertisement must also state 1) that the transaction advertised is a lease-purchase agreement;
2) the total number and total amount of periodic payments necessary to acquire ownership of the goods;
and 3) that the consumer acquires no ownership rights in the goods unless the total amount necessary to acquire ownership is paid.
If goods - 2026 Legislature - 4 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 S ECTION 1 are displayed or offered under a lease-purchase agreement, the goods must bear a tag or card that indicates the cash price, the amount of the periodic payment, and the total number and total amount of periodic payments necessary to acquire ownership.
If goods are displayed or offered online for an online transaction, a lessor may satisfy these requirements by electronic disclosure.
An advertisement in a language other than English must contain disclosures in the same language as the advertisement.
Subject to the exceptions discussed below, a lessor that fails to comply with the requirements described above is liable to a consumer damaged by the violation in an amount equal to the greater of 1) the consumer’s actual damages resulting from the violation or 2) 25 percent of the total of payments necessary to acquire ownership of the goods but not less than $100 nor more than $1,000.
With any monetary award to a consumer, the court must also award to the consumer the costs of the action and reasonable attorney fees.
To obtain an award, a consumer must bring an action no later than one year after the date of the consumer’s last periodic payment or the date the violation occurred, whichever is later.
A lessor is also not liable to a consumer for damages if the lessor establishes that the lessor’s violation was unintentional or the result of a bona fide error and the lessor maintained reasonable procedures to avoid such errors.
A lessor is also not liable to a consumer for damages if, within 60 days after discovering the violation and before the consumer files suit or notifies the lessor of the violation, the lessor notifies the consumer of the violation and corrects the lessor’s noncompliance for the consumer.
In addition, a lessor is not liable to a consumer with respect to any action or omission of the lessor made in a good faith effort to comply with the provisions of the bill.
Under the bill, lease-purchase agreements that comply with the bill’s requirements are not subject to the consumer act.
The bill also does not apply to the lease of motor vehicles or mobile homes.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1.
Chapter 420 of the statutes is created to read:
CHAPTER 420 LEASE-PURCHASE AGREEMENTS 420.01 Definitions.
In this chapter:
(1) “Advertisement” means a commercial message in any medium that solicits a consumer to enter into a lease-purchase agreement.
(2) “Cash-sale price” means the price stated in a lease-purchase agreement - 2026 Legislature - 5 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 for which the lessor would have sold and the consumer would have bought the goods that are the subject of the lease-purchase agreement if the transaction had been a sale for cash.“Cash-sale price” may include taxes and charges for delivery, installation, servicing, repairs, alterations, or improvements.
(3) “Consumer” means an individual who rents goods, to be used primarily for personal, family, or household purposes, under a lease-purchase agreement and who resides in this state at the time of executing the lease-purchase agreement.
(4) “Goods” means personal property that a consumer acquires the right to use under a lease-purchase agreement.
(5) “Lease-purchase agreement” means an agreement for the use of goods by an individual if all of the following apply:
(a) The goods are to be used for personal, family, or household purposes.
(b) The agreement is for an initial period of 4 months or less.
(c) The agreement is automatically renewable with each payment after the initial period under par.
(b), but the agreement does not obligate the consumer to continue renting or using the goods beyond the initial period.
(d) The agreement permits the consumer to become the owner of the goods.
(6) “Lease-purchase property” means personal property that is owned by the lessor at the time it is physically displayed and offered to a consumer as the subject of, but prior to the execution of, a lease-purchase agreement.
(7) “Lessor” means a person who regularly provides the use of goods under a lease-purchase agreement and to whom periodic payments are initially payable under the lease-purchase agreement.
- 2026 Legislature - 6 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 420.02 Exempted transactions;
relationship to other law.
(1) This chapter does not apply to any of the following:
(a) An agreement for the use of personal property primarily for business, commercial, or agricultural purposes.
(b) A lease of a safe deposit box.
(c) A lease or bailment of personal property that is incidental to the lease of real property and that provides that the consumer has no option to purchase the leased personal property.
(d) A lease of a motor vehicle, as defined in s.
218.0101 (22).
(e) A lease of a mobile home, as defined in s.
101.91 (10).
(2) Lease-purchase agreements that comply with this chapter are not governed by any provision of chs.
401 to 427 and 429.
420.03 General requirements for lease-purchase agreements.
(1) A lease-purchase agreement shall be in writing, dated, signed by the consumer and lessor, and completed as to all essential provisions.
(2) The printed or typed portion of the lease-purchase agreement, other than instructions for completion, shall be in at least 8-point typeThe lease- purchase agreement shall be designated “lease-purchase agreement.” (3) The lessor shall deliver to the consumer a copy of the lease-purchase agreement as accepted by the consumer.
Until the lessor provides the copy in this manner, a consumer who has not received delivery of the goods that are the subject of the lease-purchase agreement has the right to rescind the lease-purchase agreement and receive a refund of all payments made.
An acknowledgment by the - 2026 Legislature - 7 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 consumer of delivery of a copy of the lease-purchase agreement shall be in boldface type of at least 10-point type size and, if contained in the lease-purchase agreement, shall appear directly above the consumer's signature.
(4) The lease-purchase agreement shall contain the names of the lessor and consumer, the lessor's business address, and the residence or other address of the consumer as specified by the consumer.
(5) The lessor shall disclose to the consumer, in the lease-purchase agreement above the line for the consumer's signature, the disclosures required by s.
420.04.
The disclosures shall be made on or before the date the consumer enters into the lease-purchase agreement.
In a transaction involving more than one lessor, only one lessor is required to make the disclosures, but all lessors are bound by the disclosures.
If a disclosure becomes inaccurate as a result of any act or occurrence or any agreement by the consumer after delivery of the required disclosures, the resulting inaccuracy is not a violation of this chapter.
(6) If a lessor provides an advertisement in a language other than English, the lessor shall have lease­purchase agreements printed in the same language as the advertisement and shall make those lease-purchase agreements available to consumers.
420.04 Disclosures.
A lessor shall disclose in each lease-purchase agreement all of the following, to the extent applicable:
(1) Whether the periodic payment is weekly, monthly, or otherwise, the dollar amount of each payment, and the total number and total dollar amount of all periodic payments necessary to acquire ownership of the goods.
- 2026 Legislature - 8 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 (2) A statement that the consumer will not own the goods until the consumer has paid the total amount necessary to acquire ownership of the goods.
(3) A statement advising the consumer whether the consumer is liable for loss or damage to the goods and, if so, a statement that the liability will not exceed the fair market value of the goods as of the time they are lost or damaged.
(4) A brief description of the goods, sufficient to identify the goods to the consumer and the lessor, including an identification number, if applicable, and a statement indicating whether the goods are new or used.
A statement that indicates new goods are used is not a violation of this chapter.
(5) A statement of the cash-sale price of the goods, but if one lease-purchase agreement involves a lease of 2 or more goods as a set, a statement of the aggregate cash-sale price of all goods satisfies this requirement.
(6) The total amount of initial payments paid or required on or before the date the consumer enters into the lease-purchase agreement.
(7) A statement that the total amount of payments disclosed under sub.
(1) does not include other charges or fees and a statement of all other charges or fees.
(8) A statement clearly summarizing the terms of the consumer's option to purchase, including a statement that the consumer has the right to exercise an early purchase option and the price to exercise the early purchase option or the formula or method for determining this price.
(9) A statement identifying the party responsible for maintaining or servicing the goods while they are being rented, together with a description of that responsibility and a statement that if any part of a manufacturer's express - 2026 Legislature - 9 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 warranty covers the goods at the time the consumer acquires ownership of them, the warranty shall be transferred to the consumer, if allowed by the terms of the warranty.
(10) A statement that the consumer may terminate the lease-purchase agreement without penalty by voluntarily surrendering or returning the goods in good repair, reasonable wear and tear excepted, along with any past-due periodic payments, upon expiration of any lease period.
(11) Notice of the right to reinstate a lease-purchase agreement, as provided in s.
420.06.
(12) The following notice printed or typed in boldface type of at least 10-point type size:
“NOTICE TO THE CONSUMER Do not sign this agreement before you read it or if it contains blank spaces.
You are entitled to a copy of the agreement you sign.” 420.05 Prohibited provisions.
A lease-purchase agreement may not contain any of the following provisions:
(1) A confession of judgment.
(2) A negotiable instrument.
(3) A security interest or any other claim of a property interest in any property of the consumer.
(4) A wage assignment.
(5) A waiver by the consumer of claims or defenses.
(6) A provision authorizing the lessor or a person acting on the lessor's behalf - 2026 Legislature - 10 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 to enter upon the consumer's premises unlawfully or to commit any breach of the peace in the repossession of goods.
(7) A provision requiring the consumer to purchase insurance or a liability damage waiver from the lessor for goods that are the subject of the lease-purchase agreement.
(8) A provision that failure to return goods constitutes probable cause for a criminal action.
(9) A provision requiring the consumer to make a payment in addition to periodic payments in order to acquire ownership of the goods or a provision requiring the consumer to make periodic payments totaling more than the dollar amount necessary to acquire ownership as disclosed under s.
420.04 (1).
(10) A provision for more than one reinstatement fee on any one periodic payment, regardless of the period of time during which it remains unpaid.
(11) A provision requiring the consumer to pay a late charge or any other type of charge or penalty for reinstating a lease-purchase agreement, other than a reinstatement fee, except that a lessor may use the term “late charge” or a similar term to refer to a reinstatement fee.
420.06 Reinstatement.
(1) Subject to subs.
(2) and (3), a consumer who fails to make a timely periodic payment under a lease-purchase agreement may reinstate the lease-purchase agreement without losing any rights or options that exist under the lease-purchase agreement by paying the following charges within 5 days after the renewal date of a lease-purchase agreement with monthly or less - 2026 Legislature - 11 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 frequent periodic payments or within 2 days after the renewal date of a lease- purchase agreement requiring periodic payments more frequently than monthly:
(a) All past-due periodic payments or other fees or charges related to the lease-purchase agreement.
(b) If the goods have been picked up by or on behalf of the lessor, the reasonable costs of pickup from and redelivery to the consumer.
(c) Any applicable reinstatement fee.
(2) If a consumer has paid less than two-thirds of the total of payments necessary to acquire ownership of the goods under a lease-purchase agreement and has returned or voluntarily surrendered the goods, other than through judicial process, within 7 days after the renewal date, the consumer may reinstate the lease­purchase agreement during a period of not less than 21 days after the date the goods were returned or surrendered.
(3) If a consumer has paid two-thirds or more of the total of payments necessary to acquire ownership of the goods under a lease-purchase agreement and has returned or voluntarily surrendered the goods, other than through judicial process, within 7 days after the renewal date, the consumer may reinstate the lease­purchase agreement during a period of not less than 30 days after the date the goods were returned or surrendered.
(4) Nothing in this section prevents a lessor from repossessing or attempting to repossess property during the reinstatement period, but the repossession does not affect the consumer's right to reinstate.
Upon reinstatement of the lease- purchase agreement, if the consumer no longer has possession of the goods, the - 2026 Legislature - 12 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 lessor shall provide the consumer with the same goods, if available, or with substitute goods of comparable quality and condition.
420.07 Receipts;
other requirements and consumer rights.
(1) Upon request by the consumer, a lessor shall provide the consumer with a written receipt for each payment made under a lease-purchase agreement.
(2) Unless otherwise provided in this chapter, all of the following apply with respect to a lease-purchase agreement:
(a) A lease-purchase agreement shall include an early purchase option, the terms of which are governed by the lease-purchase agreement.
(b) A consumer may terminate a lease-purchase agreement without penalty by voluntarily surrendering or returning the goods that are the subject of the lease- purchase agreement in good repair, reasonable wear and tear excepted, along with any past-due periodic payments, upon expiration of any lease period.
(c) If a consumer is liable for loss of or damage to the goods that are the subject of a lease-purchase agreement, the consumer’s liability may not exceed the fair market value of the goods as of the time they are lost or damaged.
(d) If any part of a manufacturer's express warranty covers the goods that are the subject of a lease-purchase agreement at the time the consumer acquires ownership of these goods, the lessor shall transfer the warranty to the consumer if allowed by the terms of the warranty.
420.08 Renegotiations and extensions.
(1) A renegotiation occurs when any term of a lease-purchase agreement that is required to be disclosed by s.
420.04 is changed by agreement between the lessor and consumer.
A renegotiation creates - 2026 Legislature - 13 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 a new lease-purchase agreement requiring the lessor to give all the disclosures required by s.
420.04.
(2) Renegotiation under sub.
(1) does not include any of the following:
(a) Reinstatement of a lease-purchase agreement in accordance with s.
420.06.
(b) A lessor's waiver or failure to assert any claim against the consumer.
(c) A deferral, extension, or waiver of any periodic payment or portion of a periodic payment.
(d) A change, made at the consumer's request, of the day of the week or month on which periodic payments are to be made.
(e) A return by the consumer of a specific item or items of lease-purchase property that are part of a lease-purchase agreement for multiple items, or the substitution of an item of lease-purchase property, if the average periodic payment is not changed by more than 50 percent.
420.09 Advertising.
(1) An advertisement that refers to or states the dollar amount of a periodic payment and the right to acquire ownership of a specific item of lease-purchase property shall also clearly and conspicuously state all of the following:
(a) That the transaction advertised is a lease-purchase agreement.
(b) The total number and total amount of periodic payments necessary to acquire ownership of the item.
(c) That the consumer acquires no ownership rights in the item unless the total amount necessary to acquire ownership is paid.
- 2026 Legislature - 14 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 (2) Any owner or personnel of any medium in which an advertisement appears or through which it is disseminated is not liable for failure to comply with the provisions of this section.
This subsection does not apply if the owner or personnel is a lessor and the advertisement solicits a consumer to enter into a lease-purchase agreement with the lessor.
(3) The provisions of sub.
(1) do not apply to an advertisement that does not refer to or state the amount of any payment or that is published in the yellow pages of a telephone directory or in any similar directory of business.
(4) Each item of lease-purchase property displayed or offered under a lease- purchase agreement shall bear a tag or card that clearly and conspicuously indicates in Arabic numerals each of the following:
(a) The cash price of the item.
(b) The amount of the periodic payment.
(c) The total number and total amount of periodic payments necessary to acquire ownership of the item.
(5) For any lease-purchase property displayed or offered online and for which a consumer can enter into a lease-purchase agreement online or remotely through electronic commerce, a lessor may satisfy the requirements of sub.
(4) by electronic disclosure, clearly and conspicuously indicated in Arabic numerals that are readable and understandable by visual inspection, if the information is disclosed to the lessee prior to any of the disclosures required in s.
420.04.
(6) When personal property that is not lease-purchase property is offered by a lessor under a lease-purchase agreement, the lessor shall provide the information - 2026 Legislature - 15 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 described in sub.
(4) by electronic disclosure, clearly and conspicuously indicated in Arabic numerals that are readable and understandable by visual inspection, if the information is disclosed to the lessee prior to any of the disclosures required in s.
420.04.
(7) An advertisement in any language other than English shall contain disclosures as required by this section in the same language as the advertisement.
420.10 Consumer remedies;
limitations.
(1) (a) Subject to s.
420.11, a lessor that fails to comply with the requirements of this chapter is liable to a consumer damaged by the violation of this chapter in an amount equal to the greater of the following:
1.
The actual damages sustained by the consumer as a result of the lessor's violation of this chapter.
2.
Twenty-five percent of the total of payments necessary to acquire ownership of the goods, as disclosed under s.
420.04 (1), but not less than $100 nor more than $1,000.
(b) If a court awards any monetary amount under par.
(a) to a consumer, the court shall also award to the consumer the costs of the action and, notwithstanding s.
814.04 (1), reasonable attorney fees as determined by the court.
(2) A consumer may not offset the amount a lessor is potentially liable for under sub.
(1) against any amount owed by the consumer, unless the amount of the lessor's liability has been determined by a court judgment in an action in which the lessor was a party.
This subsection does not bar a consumer who is in default on an obligation from asserting a violation of this chapter as an original action or as a defense or counterclaim to an action brought by a lessor against the consumer.
- 2026 Legislature - 16 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 SECTION 1 (3) The remedies of a consumer under this section are in addition to any other rights or remedies available to a consumer under other applicable law.
(4) No action under this section may be brought in any court more than one year after the date the consumer made the consumer’s last periodic payment or the date of the occurrence of the violation that is the subject of the action, whichever is later.
420.11 Lessor’s defenses.
(1) If a lessor establishes by a preponderance of evidence that a violation of this chapter was unintentional or the result of a bona fide error and the lessor maintained reasonable procedures to avoid such errors, the lessor is not subject to the provisions of s.
420.10 and the validity of the transaction is not affected.
A bona fide error may include a clerical error, calculation error, printing error, error due to unintentionally improper computer programming or data entry, or similar errors, but a bona fide error does not include an error of legal judgment with respect to a lessor's obligations under this chapter.
(2) A lessor is not subject to the provisions of s.
420.10 if, within 60 days after discovering a failure to comply with a requirement of this chapter and before the consumer has brought an action for noncompliance and before the lessor has received from the consumer a written notice of noncompliance, the lessor notifies the consumer of the noncompliance and makes adjustments necessary to correct the noncompliance for the consumer.
(3) A lessor is not subject to the provisions of s.
420.10 with respect to any action or omission of the lessor made in a good faith effort to comply with any provision of this chapter.
- 2026 Legislature - 17 - LRB-3737/1 ARG:emw ASSEMBLY BILL 742 S ECTION 1 420.12 Short title.
This chapter may be cited as the “Lease-Purchase Agreement Law.” SECTION 2.
Initial applicability.
(1) This act first applies to lease-purchase agreements, and conduct pursuant to those lease-purchase agreements, that are entered into on the effective date of this subsection.
END )
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Action History

  1. Failed to concur in pursuant to Senate Joint Resolution 1

  2. Available for scheduling

  3. Report concurrence by Committee on Government Operations, Labor and Economic Development, Ayes 2, Noes 3

  4. Executive action taken

  5. Read first time and referred to committee on Government Operations, Labor and Economic Development

  6. Received from Assembly

  7. Ordered immediately messaged

  8. Read a third time and passed

  9. Rules suspended

  10. Ordered to a third reading

  11. Assembly Amendment 2 adopted

  12. Assembly Amendment 1 adopted

  13. Assembly Amendment 1 to Assembly Amendment 1 adopted

  14. Read a second time

  15. Representative Stubbs withdrawn as a coauthor

  16. Made a special order of business at 11:29 AM on 2-19-2026 pursuant to Assembly Resolution 14

  17. Assembly Amendment 2 offered by Representative Gustafson

  18. Assembly Amendment 1 to Assembly Amendment 1 offered by Representative Gustafson

  19. Referred to committee on Rules

  20. Report passage as amended recommended by Committee on Ways and Means, Ayes 7, Noes 3

  21. Report Assembly Amendment 1 adoption recommended by Committee on Ways and Means, Ayes 10, Noes 0

  22. Executive action taken

  23. Representative Prado withdrawn as a coauthor

  24. Assembly Amendment 1 offered by Representative Gustafson

  25. Representative Goodwin withdrawn as a coauthor

  26. Senator L. Johnson withdrawn as a cosponsor

  27. Senator Pfaff added as a cosponsor

  28. Public hearing held

  29. Representative Summerfield added as a coauthor

  30. Representative Goodwin added as a coauthor

  31. Representative Palmeri added as a coauthor

  32. Representative Sinicki added as a coauthor

  33. Read first time and referred to Committee on Ways and Means

  34. Introduced by Representatives Gustafson, McCarville, Swearingen, Knodl, Spiros, Krug, Kreibich, Piwowarczyk, Brown, DeSmidt, Ortiz-Velez, Stubbs and Prado; cosponsored by Senators Tomczyk, Drake, Smith, James, L. Johnson and Feyen

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1 sponsors · 18 co-sponsors · 113 not signed on

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Co-sponsors (18)

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Frequently asked questions

What does AB 742 do?
An Act to create chapter 420 of the statutes;
Who sponsors AB 742?
AB 742 is sponsored by Tomczyk, Drake, Smith, James, Feyen, Gustafson, Nate (Republican), McCarville, Maureen (Democrat), Swearingen, Rob (Republican), Knodl, Daniel (Republican), Spiros, John (Republican), Krug, Scott (Republican), Kreibich, Rob (Republican), Piwowarczyk, Jim (Republican), Brown, Brienne (Democrat), DeSmidt, Ben (Democrat), Ortiz-Velez, Sylvia (Democrat), Stubbs, Shelia (Democrat), Prado, Priscilla (Democrat), and Johnson, Tara (Democrat).
What is the current status of AB 742?
This bill has passed the Assembly. Introduced December 03, 2025. It now moves to the second chamber.
Where can I track AB 742?
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