Assembly Bill 742 introduces a new regulatory framework for lease-purchase agreements for personal property in Wisconsin, creating Chapter 420 of the statutes. The bill defines a lease-purchase agreement as a contract for the use of personal property by a consumer for personal, family, or household purposes, with specific conditions regarding the duration and ownership transfer of the goods. It mandates that such agreements be in writing, signed by both parties, and include detailed disclosures about payment terms, ownership rights, liability for damages, and the consumer's right to terminate the agreement without penalty. Additionally, the bill prohibits certain provisions in lease-purchase agreements, such as confessions of judgment and requiring consumers to purchase insurance from the lessor.

The bill also establishes consumer protections, including the right to reinstate a lease-purchase agreement after a missed payment and the requirement for lessors to provide written receipts for payments. If a lessor fails to comply with the bill's requirements, they may be liable for damages to the consumer. However, lease-purchase agreements that adhere to the new regulations will not be subject to the Wisconsin Consumer Act, and the bill explicitly excludes motor vehicles and mobile homes from its provisions. Overall, the legislation aims to enhance consumer rights and transparency in lease-purchase transactions.