TUE AM News: Bipartisan bill would create new limits for payday loans; Kaul joins 35 AGs in letter on federal AI regulation

December 2, 2025

— Bipartisan legislation would cap the interest payday lenders may charge at 36%, among other changes for these loans that bill authors say have “outrageously high” interest rates.

Reps. Scott Allen, R-Waukesha, and Amaad Rivera-Wagner, D-Green Bay, along with GOP Sen. Andre Jacque of New Franken, recently sent a co-sponsorship memo to other lawmakers on two bills: LRB-2249 and LRB-4308.

They wrote the bills “work together to create a framework for healthy lending” by making various changes to state law surrounding payday loans.

Most of these loans provided by short-term lenders are called “installment loans” under state law, the memo shows. While at least 17 companies in the state already provide these loans with a maximum interest rate of 36%, others short-term lenders charge as much as 850%, the lawmakers note.

Under either piece of legislation being circulated, the annual percentage rate or APR for payday and installment loans would be set at 36% — the same as the federal APR limit for short-term loans being provided to veterans.

“If the Federal government has recognized that an APR above 36% is harmful for veterans then it makes sense to recognize it as adverse for Wisconsinites in general,” lawmakers wrote.

They argue too many state residents are “trapped” in short-term loans with “outrageously high” interest rates.

One of the bills includes various reporting requirements for short-term lending, which authors say will “help provide transparency” in the industry. Under LRB-4309, licensed lenders would have to report the average APR for their loans, as well as the number of loans that were refinanced or led to a money judgment or vehicle repossession.

The other bill, LRB-2249, would redefine the framework for payday loans in state law while adding a number of restrictions and requirements.

Under the legislation, payday lenders would have to have a “reasonable underwriting process” for verifying the applicant’s ability to repay the loan, according to the Legislative Reference Bureau. And they could’t make a loan that “exceeds the amount the applicant is capable of repaying” based on that underwriting process, or the maximum amount allowed by current law.

Lenders would also have to clearly disclose to applicants the payment plan and the amount of interest to be paid over the course of the loan, as well as notifying applicants about financial literacy courses made available under the Department of Financial Institutions.

Bill authors say limiting payday loans to no more than six months — with equal payments including some going toward the principal — would allow them to continue “playing a unique role in the market” while also allowing borrowers to consistently pay down their debt.

They argue these changes would allow loan recipients to free themselves from “a poverty trap” and make better financial decisions.

“We know that financial literacy is key to getting people out of poverty,” they wrote.

The co-sponsorship deadline is Thursday at noon.

See the memo.

— Attorney General Josh Kaul has joined 35 other states AGs in urging Congress against banning state laws regulating AI, arguing it would be “a major mistake.”

The letter comes after President Donald Trump called for a federal standard on AI regulation “instead of a patchwork of 50 State Regulatory Regimes” for the technology. He argued state overregulation threatens U.S. economic activity driven by AI.

Both Trump’s social media post and the state Department of Justice release reference such a federal ban on state AI laws being possibly added to national defense funding legislation.

In their letter last week, the AGs point to a host of concerns with AI, ranging from deepfake scams to inappropriate chatbot interactions with children, as well as the technology playing a role in promoting eating disorders and suicide.

“These are just a few issues at the forefront — with this rapidly evolving technology, additional and unforeseeable problems are certain to arise,” the AGs wrote. “It is imperative that states be able to address these kinds of challenges.”

In a separate statement, Kaul argued Congress “shouldn’t be sacrificing the interests of the public as a whole in order to benefit big tech.”

The AG letter notes some states already have AI restrictions in place. That includes Wisconsin, which has passed legislation requiring disclosures about using AI in political campaign commercials. Rep. Adam Neylon, who introduced that bill last session, says it was among the first AI laws on the books in the state.

In a recent interview focused on AI legislation, the Pewaukee Republican emphasized the importance of protecting people’s privacy and data, as well as not being “as proscriptive” about regulating how businesses use the technology.

As AI continues evolving, he raised the possibility of “working with Congress and working at the federal level to have some federal standards, so there isn’t a patchwork” of state-level regulations.

“So I think that’s why the focus has really been around protecting consumers,” he said, adding “how can we just make sure we have people’s basic freedoms protected without getting too much red tape on the books, so we can still offer innovation and for Wisconsin to remain competitive?”

See the DOJ release.

See a recent related story.

— Buc-ee’s is set to soon break ground on its first Wisconsin location in Oak Creek, while officials seek more legislation to fund interchange upgrades for a second potential location in DeForest.

The nearest Buc-ee’s is currently located in Kentucky, as the massive travel center chain continues to move north.

“People in the beginning, you know more change, more growth, they say ‘Oh my gosh, it’s ruining the community,’” Smith Grove, Kentucky, Mayor David Stiffey told WISN 12’s “UpFront,” which is produced in partnership with WisPolitics. “It has been a great help to us as far as revenue because we get employment tax off the employees.”

Jeff Lenard, vice president of communications for the National Association of Convenience Stores, says the company is strategic in choosing where to develop.

“That Milwaukee to Chicago corridor fits really perfectly with their strategies,” Lenard said. “Anybody you get a competitor like Buc-ee’s, or fill in the blank, for a brand that draws people in just because of who they are, it forces everybody else to look at how they attract customers.”

A second Buc-ee’s is being considered in DeForest.

The state budget allocated $4 million to improve the I-94-County Trunk Highway V interchange to accommodate increased traffic, but several million dollars more is needed. A separate piece of legislation would expand a TIF district to help fund the improvements, and Buc-ee’s has committed to paying about half of the costs of the improvements.

“I do know one of the things, because of the traffic they get, they want to have accessibility from both sides,” Lenard said. “It’s not like when you’re driving on a typical highway stop, highway signs say gas, food, lodging, exit, fill in the blank, and you can only do it from one side. They want to have that capability from both sides, so that does take more time.”

See more from the show.

— UW-Madison’s College of Engineering has launched the Badger Tech Foundry, the first founder development program of the Wisconsin Entrepreneurship Hub.

The Foundry is recruiting graduate students and postdoctoral researchers to UW-Madison and will train them to launch companies and become serial entrepreneurs, according to the announcement.

“At UW-Madison, we’re driven to develop ideas that change the world,” said Badger Tech Foundry Director William Murphy, a professor of biomedical engineering and orthopedics and rehabilitation. “This initiative is about making sure that happens by supporting talented young researchers and helping them start their own companies rooted in ‘deep tech’ expertise.”

The Badger Tech Foundry will receive equity in the companies it helps launch. It is currently seeking to grow its base of partners, including donors and early-stage investors.

The Wisconsin Entrepreneurship Hub was launched this summer with the goal of strengthening entrepreneurial pathways at UW-Madison.

See more at Madison Startups.

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