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LRB-5606/1
MLJ/TJD/KRP:kjf
2017 - 2018 LEGISLATURE
March 2, 2018 - Printed by direction of Senate Chief Clerk.
AB773-engrossed,2,2 1An Act to renumber 802.06 (1), 804.01 (2) (e) 1., 893.93 (1) (a) and 893.93 (1) (b);
2to renumber and amend 804.09 (2) (a); to amend 218.0125 (7), 218.0126,
3628.46 (1), 801.01 (2), 804.01 (1), 804.01 (2) (a), 804.01 (2) (e) 2., 804.01 (2) (e)
43., 804.01 (3) (a) 2., 804.01 (4), 804.09 (2) (b) 1., 804.12 (1) (a), 893.53, 893.89 (1)
5and 893.89 (3) (b); to repeal and recreate 803.08 (11); and to create 177.30
6(6) and (7), 802.06 (1) (b), 804.01 (2) (am), 804.01 (2) (bg), 804.01 (2) (e) 1g.,
7804.01 (8), 804.045, 804.08 (1) (am), 804.09 (2) (a) 3., 893.93 (1) (cm) and 893.93
8(1m) (intro.) of the statutes; relating to: discovery of information in court
9proceedings; procedural requirements relating to class actions; the statute of
10limitations for certain civil actions; agreements by the secretary of revenue to

1allow third-party audits and estimates based on statistical sampling related
2to unclaimed property; and interest rates for overdue insurance claims.
Analysis by the Legislative Reference Bureau
Engrossment information:
The text of Engrossed 2017 Assembly Bill 773 consists of the following
document adopted in the assembly on February 22, 2018: the bill as affected by
Assembly Substitute Amendment 2.
Content of Engrossed 2017 Assembly Bill 773:
Discovery procedures
This bill makes certain changes to discovery procedure in court proceedings.
Under the bill, the court must limit the frequency or extent of discovery if it
determines that the discovery sought is cumulative or duplicative, or can be obtained
from some other source that is more convenient, less burdensome, or less expensive
or that the burden or expense of the proposed discovery outweighs its likely benefit
or is not proportional to the claims and defenses at issue. In addition, the bill limits
discovery of electronic information such that, in the absence of the moving party
showing substantial need and good cause, a party is not required to keep or provide
the following types of electronic information: data that cannot be retrieved without
substantial additional programming or without transforming it into another form
before search and retrieval can be achieved; backup data that are substantially
duplicative of data that are more accessible elsewhere; legacy data remaining from
obsolete systems that are unintelligible on successor systems; and any other data
that are not available to the producing party in the ordinary course of business and
that the party identifies as not reasonably accessible because of undue burden or
cost.
The bill also creates a mandatory disclosure requirement that requires a party,
without awaiting a discovery request, to disclose any agreement under which any
person, other than an attorney who is permitted to charge a contingent fee for
representing a party, has a right to receive compensation that is contingent on and
sourced from any proceeds of the civil action.
class actions
In December 2017, the supreme court issued an order that creates detailed
procedures relating to class actions where previously Wisconsin had few procedural
requirements relating to class actions. The procedures implemented in the order
closely track the federal procedures for filing and maintaining a class action. This
bill amends certain aspects of appellate procedure for a class action.
statute of limitations
Under current law, the statute of limitations for an action for injury to character
is six years. Under the bill, the statute of limitations is shortened to three years.

Under current law, the statute of limitations for an action for injury resulting
from improvements to real property is ten years. Under the bill, the statute of
limitations is shortened to seven years.
Under current law, the statute of limitations for an action upon a liability
created by statute when a different limitation is not prescribed by law and for an
action for relief on the ground of fraud is six years. Under the bill, the statute of
limitations is shortened to three years.
third-party tax audits
This bill prohibits the secretary of revenue from entering into an agreement to
allow a person to engage in an audit on a contingent fee basis of another person's
documents or records in order to administer the unclaimed property law or to
purchase information arising from the audit, except for information received from
the federal government. However, if the person whose documents or records are
audited is not domiciled in this state, the secretary may enter into such a contingent
fee agreement if the amount of the contingent fee does not exceed 12 percent of the
total amount of unclaimed property that is disclosed by the audit.
The bill also prohibits the secretary from entering into an agreement as part
of an effort to administer the unclaimed property law that allows a person engaging
in an audit of another person's documents or records to use statistical sampling to
estimate the liability of that person unless that person consents to the use of an
estimate.
Timely payment of claims
This bill changes the interest rate that an insurer must pay for overdue
insurance claims from 12 percent to 7.5 percent. Current law requires an insurer to
promptly pay every insurance claim and, generally, a claim is considered overdue if
the claim is not paid within 30 days after the insurer has written notice of the fact
and amount of a covered loss.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB773-engrossed,1 1Section 1. 177.30 (6) and (7) of the statutes are created to read:
AB773-engrossed,3,62 177.30 (6) (a) Except as provided in pars. (b) and (c), the administrator may not
3enter into a contract or other agreement to allow any person to engage in an audit
4on a contingent fee basis of another person's documents or records as part of an effort
5to administer this chapter or to purchase information or documents arising from the
6audit.
AB773-engrossed,4,5
1(b) If a person whose documents or records are audited is not domiciled in this
2state, the administrator may enter into a contract or agreement described under par.
3(a) related to the person if the amount of the contingent fee under the contract or
4agreement does not exceed 12 percent of the total amount of property reportable and
5deliverable under this chapter that is disclosed by the audit.
AB773-engrossed,4,76 (c) This subsection does not apply to information received from the federal
7government.
AB773-engrossed,4,11 8(7) The administrator may not enter into a contract or other agreement as part
9of an effort to administer this chapter that allows a person that is engaging in an
10audit of another person's documents or records to use statistical sampling to estimate
11the other person's liability unless the other person consents to the use of an estimate.
AB773-engrossed,2 12Section 2. 218.0125 (7) of the statutes is amended to read:
AB773-engrossed,5,213 218.0125 (7) A claim made by a franchised motor vehicle dealer for
14compensation under this section shall be either approved or disapproved within 30
15days after the claim is submitted to the manufacturer, importer or distributor in the
16manner and on the forms the manufacturer, importer or distributor reasonably
17prescribes. An approved claim shall be paid within 30 days after its approval. If a
18claim is not specifically disapproved in writing or by electronic transmission within
1930 days after the date on which the manufacturer, importer or distributor receives
20it, the claim shall be considered to be approved and payment shall follow within 30
21days. A manufacturer, importer or distributor retains the right to audit claims for
22a period of one year after the date on which the claim is paid and to charge back any
23amounts paid on claims that are false or unsubstantiated. If there is evidence of
24fraud, this subsection does not limit the right of the manufacturer to audit for longer

1periods and charge back for any fraudulent claim, subject to the limitations period
2under s. 893.93 (1) (b) (cm).
AB773-engrossed,3 3Section 3. 218.0126 of the statutes is amended to read:
AB773-engrossed,5,18 4218.0126 Promotional allowances. A claim made by a franchised motor
5vehicle dealer for promotional allowances or other incentive payments shall be either
6approved or disapproved within 30 days after the claim is submitted to the
7manufacturer, importer or distributor in the manner and on the forms the
8manufacturer, importer or distributor reasonably prescribes. An approved claim
9shall be paid within 30 days after its approval. If a claim is not specifically
10disapproved in writing or by electronic transmission within 30 days after the date
11on which the manufacturer, importer or distributor receives it, the claim shall be
12considered to be approved and payment shall follow within 30 days after approval.
13A manufacturer, importer or distributor retains the right to audit a claim for a period
14of 2 years after the date on which the claim is paid and to charge back any amounts
15paid on claims that are false or unsubstantiated. If there is evidence of fraud, this
16section does not limit the right of the manufacturer to audit for longer periods and
17charge back for any fraudulent claim, subject to the limitations period under s.
18893.93 (1) (b) (cm).
AB773-engrossed,4 19Section 4. 628.46 (1) of the statutes is amended to read:
AB773-engrossed,6,920 628.46 (1) Unless otherwise provided by law, an insurer shall promptly pay
21every insurance claim. A claim shall be overdue if not paid within 30 days after the
22insurer is furnished written notice of the fact of a covered loss and of the amount of
23the loss. If such written notice is not furnished to the insurer as to the entire claim,
24any partial amount supported by written notice is overdue if not paid within 30 days
25after such written notice is furnished to the insurer. Any part or all of the remainder

1of the claim that is subsequently supported by written notice is overdue if not paid
2within 30 days after written notice is furnished to the insurer. Any payment shall
3not be deemed overdue when the insurer has reasonable proof to establish that the
4insurer is not responsible for the payment, notwithstanding that written notice has
5been furnished to the insurer. For the purpose of calculating the extent to which any
6claim is overdue, payment shall be treated as being made on the date a draft or other
7valid instrument which is equivalent to payment was placed in the U.S. mail in a
8properly addressed, postpaid envelope, or, if not so posted, on the date of delivery.
9All overdue payments shall bear simple interest at the rate of 12 7.5 percent per year.
AB773-engrossed,5 10Section 5. 801.01 (2) of the statutes is amended to read:
AB773-engrossed,6,1611 801.01 (2) Scope. Chapters 801 to 847 govern procedure and practice in circuit
12courts of this state in all civil actions and special proceedings whether cognizable as
13cases at law, in equity or of statutory origin except where different procedure is
14prescribed by statute or rule. Chapters 801 to 847 shall be construed , administered,
15and employed by the court and the parties
to secure the just, speedy and inexpensive
16determination of every action and proceeding.
AB773-engrossed,6 17Section 6. 802.06 (1) of the statutes is renumbered 802.06 (1) (a).
AB773-engrossed,7 18Section 7. 802.06 (1) (b) of the statutes is created to read:
AB773-engrossed,6,2419 802.06 (1) (b) Upon the filing of a motion to dismiss under sub. (2) (a) 6., a
20motion for judgment on the pleadings under sub. (3), or a motion for more definite
21statement under sub. (5), all discovery and other proceedings shall be stayed for a
22period of 180 days after the filing of the motion or until the ruling of the court on the
23motion, whichever is sooner, unless the court finds good cause upon the motion of any
24party that particularized discovery is necessary.
AB773-engrossed,8
1Section 8. 803.08 (11) of the statutes, as affected by 2017 Supreme Court
2Order 17-03, is repealed and recreated to read:
AB773-engrossed,7,103 803.08 (11) Interlocutory appeal of class certification. (a) When
4practicable after the commencement of an action brought as a class action, the court
5shall determine by order whether it is to be so maintained. If the court finds that the
6action should be maintained as a class action, it shall certify the action accordingly
7on the basis of a written decision setting forth all reasons why the action may be
8maintained and describing all evidence in support of the determination. An order
9under this subsection may be altered, amended, or withdrawn at any time before the
10decision on the merits. The court may direct appropriate notice to the class.
AB773-engrossed,7,1711 (b) An appellate court shall hear an appeal of an order granting or denying class
12action certification, or denying a motion to decertify a class action, if a notice of
13appeal is filed within 14 days after entry of the order. During the pendency of an
14appeal under this subsection, all discovery and other proceedings shall be stayed,
15except that the trial court shall retain sufficient jurisdiction over the case to consider
16and implement a settlement of the action if a settlement is reached between the
17parties.
AB773-engrossed,9 18Section 9. 804.01 (1) of the statutes is amended to read:
AB773-engrossed,7,2519 804.01 (1) Discovery methods. Parties may obtain discovery by one or more
20of the following methods: depositions upon oral examination or written questions;
21written interrogatories; production of documents or things or permission to enter
22upon land or other property, for inspection and other purposes; physical and mental
23examinations; and requests for admission. Unless the court orders otherwise under
24sub. (3), and except as provided in s. ss. 804.015, 804.045, 804.08 (1) (am), and 804.09,
25the frequency of use of these methods is not limited.
AB773-engrossed,10
1Section 10. 804.01 (2) (a) of the statutes is amended to read:
AB773-engrossed,8,162 804.01 (2) (a) In general. Parties may obtain discovery regarding any
3nonprivileged matter, not privileged, which that is relevant to the subject matter
4involved in the pending action, whether it relates to the
any party's claim or defense
5of the party seeking discovery or to the claim or defense of any other party, including
6the existence, description, nature, custody, condition and location of any books,
7documents, or other tangible things and the identity and location of persons having
8knowledge of any discoverable matter. It is not ground for objection that the
9information sought will be inadmissible at the trial if the information sought appears
10reasonably calculated to lead to the discovery of admissible evidence
and
11proportional to the needs of the case, considering the importance of the issues at
12stake in the action, the amount in controversy, the parties' relative access to relevant
13information, the parties' resources, the importance of the discovery in resolving the
14issues, and whether the burden or expense of the proposed discovery outweighs its
15likely benefit. Information within this scope of discovery need not be admissible in
16evidence to be discoverable
.
AB773-engrossed,11 17Section 11. 804.01 (2) (am) of the statutes is created to read:
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