Wisconsin 2025-2026 Regular Session

Wisconsin Senate Bill SB206 Compare Versions

Only one version of the bill is available at this time.

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1	1	2025 - 2026 LEGISLATURE
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6	6	2025 SENATE BILL 206
7	7	April 16, 2025 - Introduced by Senators FEYEN, JACQUE, JAGLER, NASS, QUINN,
8	8	WANGGAARD and STAFSHOLT, cosponsored by Representatives KRUG, BROOKS,
9	9	ALLEN, ARMSTRONG, FRANKLIN, GOEBEN, B. JACOBSON, KAUFERT, KITCHENS,
10	10	MOSES, MURPHY, O'CONNOR, ORTIZ-VELEZ, SORTWELL, SPIROS, TUSLER and
11	11	WITTKE. Referred to Committee on Insurance, Housing, Rural Issues and
12	12	Forestry.
13	13	AN ACT to amend 704.44 (intro.), 704.44 (1m) (intro.), 704.44 (9) and 704.44
14	14	(10); to create 421.103 (5) and 704.445 of the statutes; relating to: voidable
15	15	provisions in residential rental agreements and the application of the
16	16	Wisconsin Consumer Act to leases.
17	17	Analysis by the Legislative Reference Bureau
18	18	Under current law, a residential lease is void and unenforceable if it contains
19	19	certain provisions (voidable provisions). Examples of voidable provisions include
20	20	provisions that: 1) allow landlords to refuse to renew a lease because a tenant has
21	21	contacted an entity for law enforcement, health, or safety services; 2) waive a
22	22	landlord[s obligation to mitigate damages; 3) impose liability on a tenant for
23	23	personal injury arising from causes clearly beyond the tenant[s control, and; 4)
24	24	allow landlords to terminate a tenancy for a crime committed in relation to the
25	25	rental property when the tenant[s lease did not include a statutorily required notice
26	26	of domestic abuse protections.
27	27	This bill provides that if court of competent jurisdiction finds that a
28	28	residential lease includes a voidable provision, a tenant may elect to: 1) void the
29	29	lease and have their tenancy converted into a periodic tenancy, or; 2) sever the
30	30	voidable provision from their lease and continue under the remainder of the lease.
31	31	In addition, in April 2024, the Wisconsin Court of Appeals published a
32	32	decision, Koble Invs. v Marquardt, 2024 WI App 26, regarding certain landlord and
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40	40	SECTION 1
41	41	tenant matters. As of February 28, 2025, the case was on appeal to the Wisconsin
42	42	Supreme Court, with parties[ first briefings due to the court in March 2025.
43	43	Among the holdings in Koble, the court of appeals determined that a
44	44	particular landlord was acting as a Xdebt collectorY and that landlord[s tenant was
45	45	a XcustomerY as those terms are defined under Wisconsin Consumer Act. The court
46	46	of appeals also held that because the landlord violated a provision of the Wisconsin
47	47	Consumer Act, the tenant[s attorney was entitled to recover reasonable attorney
48	48	fees and court costs. Under this bill, the Wisconsin Consumer Act does not apply to
49	49	residential leases or mobile home leases.
50	50	In the same case, the court of appeals held that the tenant[s lease was void and
51	51	unenforceable under landlord and tenant law, and that, under another law
52	52	enforcing fair methods of competition, the tenant could recover twice the amount of
53	53	the tenant[s pecuniary loss, together with reasonable attorney fees and court costs.
54	54	The bill provides that under landlord and tenant law, a person injured by a voidable
55	55	provision can recover twice the amount of the pecuniary loss, together with
56	56	reasonable attorney fees and court costs, and provides that such pecuniary loss does
57	57	not include any rent paid by the tenant. The bill also limits the remedies a person
58	58	may seek when a rental agreement includes a voidable provision to only those
59	59	remedies provided in the bill.
60	60	For further information see the state fiscal estimate, which will be printed as
61	61	an appendix to this bill.
62	62	The people of the state of Wisconsin, represented in senate and assembly, do
63	63	enact as follows:
64	64	SECTION 1. 421.103 (5) of the statutes is created to read:
65	65	421.103 (5) Chapters 421 to 427 do not apply to residential rental agreements
66	66	governed under s. 710.15 or ch. 704.
67	67	SECTION 2. 704.44 (intro.) of the statutes is amended to read:
68	68	704.44 Residential rental agreement that contains certain provisions
69	69	is void. (intro.) Notwithstanding s. 704.02, a residential rental agreement is void
70	70	and unenforceable if it and subject to s. 704.445, a tenant may elect to void a
71	71	residential rental agreement, or sever a provision from a residential rental
72	72	agreement, if a court of competent jurisdiction finds that the residential rental
73	73	agreement does any of the following:
74	74	SECTION 3. 704.44 (1m) (intro.) of the statutes is amended to read:
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90	90	704.44 (1m) (intro.) Allows Authorizes a landlord to do any of the following
91	91	because a tenant has contacted an entity for law enforcement services, health
92	92	services, or safety services:
93	93	SECTION 4. 704.44 (9) of the statutes is amended to read:
94	94	704.44 (9) Allows Authorizes the landlord to terminate the tenancy of a
95	95	tenant based solely on the commission of a crime in or on the rental property if the
96	96	tenant, or someone who lawfully resides with the tenant, is the victim, as defined in
97	97	s. 950.02 (4), of that crime.
98	98	SECTION 5. 704.44 (10) of the statutes is amended to read:
99	99	704.44 (10) Allows Authorizes the landlord to terminate the tenancy of a
100	100	tenant for a crime committed in relation to the rental property and the rental
101	101	agreement does not include the notice required under s. 704.14.
102	102	SECTION 6. 704.445 of the statutes is created to read:
103	103	704.445 Remedies for voidable residential rental agreements. (1) If a
104	104	tenant elects to void the tenant[s residential agreement under s. 704.44, the
105	105	tenant[s tenancy shall become a periodic tenancy as defined under s. 704.01 (2), and
106	106	the tenant shall be responsible for the payment of rent, utilities, parking, and other
107	107	charges under terms and conditions identical to the terms and conditions as set
108	108	forth in the original residential rental agreement, but not including a provision
109	109	described under s. 704.44 (1m) to (10).
110	110	(2) If a tenant elects to sever a provision from his or her residential rental
111	111	agreement as provided under s. 704.44, the unsevered portion of the residential
112	112	rental agreement shall be given full effect.
113	113	(3) A tenant[s election to void or sever a provision from his or her residential
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138	138	SENATE BILL 206
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141	141	SECTION 6
142	142	rental agreement as provided under s. 704.44 is effective upon the tenant giving
143	143	notice of the election to the landlord in the same manner as specified in s. 704.21
144	144	(2).
145	145	(4) A person suffering pecuniary loss directly caused by a residential rental
146	146	agreement[s inclusion of a provision described under s. 704.44 (1m) to (10) may sue
147	147	for damages therefor in any court of competent jurisdiction and shall recover twice
148	148	the amount of such pecuniary loss, together with costs, including a reasonable
149	149	attorney fee. Pecuniary loss under this subsection does not include rental payments
150	150	the tenant made under his or her residential rental agreement that included a
151	151	provision described under s. 704.44 (1m) to (10) or any rule promulgated under this
152	152	chapter.
153	153	(5) A person injured by a residential rental agreement[s inclusion of a
154	154	provision described under s. 704.44 (1m) to (10) is limited to the remedies provided
155	155	under this section.
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