AB150-engrossed,1892,114
218.01
(2) (bb) A motor vehicle dealer or an applicant for a motor vehicle dealer
5license shall provide and maintain in force a bond or irrevocable letter of credit of not
6less than $25,000 or, if the dealer or applicant sells or proposes to sell motorcycles
7and not other types of motor vehicles, a bond or irrevocable letter of credit of not less
8than $5,000. The bond or letter of credit shall be executed in the name of the
9department
of transportation for the benefit of any person who sustains a loss
10because of an act of a motor vehicle dealer that constitutes grounds for the
11suspension or revocation of a license under this section.
AB150-engrossed,1893,213
218.01
(2) (bc) Except as provided in this subsection every dealer and
14distributor of new motor vehicles shall, at the time of application for a license, file
15with the department
of transportation a certified copy of the applicant's written
16agreement and a certificate of appointment as dealer or distributor, respectively. The
17certificate of appointment shall be signed by an authorized agent of the
18manufacturer of domestic vehicles on direct manufacturer-dealer agreements; or,
19where the manufacturer is wholesaling through an appointed distributorship, by an
20authorized agent of the distributor on indirect distributor-dealer agreements. The
21certificate shall be signed by an authorized agent of the importer on direct
22importer-dealer agreements of foreign-made vehicles; or by an authorized agent of
23the distributor on indirect distributor-dealer agreements. The distributor's
24certificate of appointment shall be signed by an authorized agent of the
1manufacturer; or by an agent of the manufacturer or importer of foreign
2manufactured vehicles.
AB150-engrossed,1893,244
218.01
(2) (bd) 1. A written agreement need not be filed for each dealer or
5distributor if the manufacturer on direct dealerships or distributor on indirect
6dealerships or importer on direct dealerships utilizes the identical basic agreement
7for all its dealers or distributors in Wisconsin and certifies in the certificate of
8appointment that such blanket agreement is on file and such written agreement with
9such dealer or distributor, respectively, is identical with the filed blanket agreement,
10and has filed with the department
of transportation one such agreement together
11with a list of authorized dealers or distributors. Such manufacturer, distributor or
12importer shall notify the department
of transportation immediately of the
13appointment of any additional dealers or distributors, of any revisions of or additions
14to the basic agreement on file, or of any individual dealer or distributor supplements
15to such agreement. Except as provided in subd. 1g
., the manufacturer, distributor
16or importer shall notify the dealer or distributor and forward a copy of such notice
17to the department
of transportation of the discontinuation or cancellation of the
18agreement of any of its dealers or distributors at least 60 days before the effective
19date thereof together with the specific grounds for discontinuation or cancellation of
20the agreement, if discontinued or canceled. Agreements and certificates of
21appointment are deemed to be continuing unless the manufacturer, distributor or
22importer has notified the department
of transportation of the discontinuation or
23cancellation of the agreement of any of its dealers or distributors, and annual
24renewal of certifications filed as provided in this subsection is not necessary.
AB150-engrossed,1894,9
1218.01
(2) (bd) 1g. The manufacturer, distributor or importer shall send a
2notice of discontinuation or cancellation by certified mail, and forward a copy of the
3notice to the department, not less than 20 days before the effective date of
4discontinuation or cancellation of the agreement, if the dealer or distributor fails to
5conduct its customary sales and service operations during its customary business
6hours for 7 consecutive business days unless the failure is caused by an act of God,
7by work stoppage or delays due to strikes or labor disputes or other reason beyond
8the dealer's or distributor's control or by an order of the department or the
office of
9the commissioner of transportation division of hearings and appeals.
AB150-engrossed, s. 5847g
10Section 5847g. 218.01 (2) (bd) 1g. of the statutes, as affected by 1995
11Wisconsin Act .... (this act), is repealed and recreated to read:
AB150-engrossed,1894,2012
218.01
(2) (bd) 1g. The manufacturer, distributor or importer shall send a
13notice of discontinuation or cancellation by certified mail, and forward a copy of the
14notice to the department of transportation, not less than 20 days before the effective
15date of discontinuation or cancellation of the agreement, if the dealer or distributor
16fails to conduct its customary sales and service operations during its customary
17business hours for 7 consecutive business days unless the failure is caused by an act
18of God, by work stoppage or delays due to strikes or labor disputes or other reason
19beyond the dealer's or distributor's control or by an order of the department of
20transportation or the division of hearings and appeals.
AB150-engrossed,1894,2322
218.01
(2) (bd) 1r. The notice served upon a motor vehicle dealer under subds.
231. and 1g. is not effective unless it conspicuously displays the following statement:
AB150-engrossed,1895,10
1YOU HAVE THE RIGHT TO: 1) MEDIATE IF YOU OPPOSE THE
2PROPOSED TERMINATION OR NONRENEWAL OF YOUR FRANCHISE AND 2)
3A HEARING BY THE
OFFICE OF THE COMMISSIONER OF TRANSPORTATION 4division of hearings and appeals IF MEDIATION DOES NOT RESOLVE
5THE DISPUTE. TO PRESERVE THESE RIGHTS, YOU MUST TAKE CERTAIN
6STEPS ON OR BEFORE THE DATE THAT THE PROPOSED TERMINATION OR
7NONRENEWAL TAKES EFFECT. FOR FURTHER INFORMATION, CONSULT
8YOUR ATTORNEY OR CALL THE DEALER SECTION, WISCONSIN
9DEPARTMENT OF TRANSPORTATION, AT .... (insert area code and telephone
10number).
AB150-engrossed,1895,2112
218.01
(2) (bd) 2. Any dealer or distributor discontinued or canceled may, on
13or before the date on which the discontinuation or cancellation becomes effective, file
14with the department
of transportation and division of hearings and appeals and
15serve upon the respondent a complaint for a determination of unfair discontinuation
16or cancellation under sub. (3) (a) 17. Allowing opportunity for an answer, the division
17of hearings and appeals shall thereafter schedule a hearing on and decide the matter.
18Agreements and certificates of appointment shall continue in effect until final
19determination of the issues raised in such complaint. If the complainant prevails he
20or she shall have a cause of action against the defendant for reasonable expenses and
21attorney fees incurred by him or her in such matter.
AB150-engrossed,1896,223
218.01
(2) (bf) Within 60 days after the department
of transportation issues a
24declaratory ruling under s. 227.41 that an agreement is inconsistent with par. (bm),
1a manufacturer, distributor or importer shall remove or revise any provision of the
2agreement declared to be inconsistent with par. (bm).
AB150-engrossed,1896,74
218.01
(2) (bm) 1. a. Waive a remedy or defense available to a distributor or
5dealer or other provision protecting the interests of a distributor or dealer under this
6section or under rules promulgated by the department
of transportation under this
7section.
AB150-engrossed,1896,119
218.01
(2) (bm) 2. b. No finding of an arbitrator is binding upon any person who
10is not a party to the agreement. A finding of an arbitrator does not bind the
11department
of transportation with respect to enforcement of this section.
AB150-engrossed,1896,1413
218.01
(2) (cm) 2. The department
of transportation shall promulgate rules
14establishing the license period for each type of license described in par. (d) 1. to 6.
AB150-engrossed,1896,1816
218.01
(2) (cm) 3. The department
of transportation may promulgate rules
17establishing expiration dates for the various types of licenses described in par. (d) 1.
18to 6.
AB150-engrossed,1896,2120
218.01
(2) (cm) 4. The
commissioner
division of banking shall promulgate rules
21establishing the license period for the license described in par. (d) 8.
AB150-engrossed,1896,2423
218.01
(2) (cm) 5. The
commissioner
division of banking may promulgate rules
24establishing expiration dates for licenses issued under par. (d) 8.
AB150-engrossed,1897,4
1218.01
(2) (d) 1. For motor vehicle dealers, to the department
of transportation,
2$20 for each office or branch thereof, plus $1 for a supplemental license for each used
3motor vehicle lot within the same municipality, but not immediately adjacent to the
4office or to a branch.
AB150-engrossed,1897,76
218.01
(2) (d) 8. a. Except as provided in subd. 8. b., for motor vehicle dealers,
7to the
commissioner division of banking, $10.
AB150-engrossed,1897,129
218.01
(2) (d) 8. b. For motor vehicle dealers that operate as a sales finance
10company or that carry or retain time sales contracts for more than 30 days, to the
11commissioner division of banking, the same as for sales finance companies under par.
12(dr), except for gross volume of $100,000 or less, $50.
AB150-engrossed,1897,1714
218.01
(2) (dm) 1. If the department
of transportation or
commissioner division
15of banking establishes a license period that is not evenly divisible into years, the
16department
of transportation or
commissioner division of banking shall prorate the
17remainder when determining the license fee under par. (d).
AB150-engrossed,1897,2419
218.01
(2) (dm) 2. If the department
of transportation or
commissioner division
20of banking grants a license described under par. (d) during the license period, the fee
21for the license shall equal the applicable dollar amount under par. (d) 1
. to 8
. 22multiplied by the number of calendar years, including parts of calendar years, during
23which the license remains in effect. A fee determined under this subdivision may not
24exceed the license fee for an entire license period under par. (d).
AB150-engrossed,1898,10
1218.01
(2) (dr) The fee for licenses for sales finance companies, except as
2provided in par. (d) 8., for each calendar year, or part of a calendar year, is based on
3the gross volume of purchases of retail sales contracts of motor vehicles sold in this
4state for the 12 months immediately preceding October 31 of the year in which the
5application
or for license is made, as follows: On a gross volume of
$25,000 or less,
6$25; on a gross volume of over $25,000 and not over $100,000
or less, $50;
and on each
7$100,000
or part thereof over $100,000
and up to $500,000, an additional $15
; and
8on each $100,000 over $500,000, an additional $10. No extra charge shall be made
9for branch licenses for sales finance companies. Gross volume shall be based on the
10unpaid balance of the retail contracts.
AB150-engrossed,1898,2512
218.01
(2) (h) 2. Provided the licensor has reasonable cause to doubt the
13financial responsibility of the applicant or licensee or the compliance by the
14applicant or licensee with this section, the licensor may require the applicant or
15licensee to furnish and maintain a bond in the form, amount and with the sureties
16it approves, but not less than $5,000, nor more than $100,000, conditioned upon the
17applicant or licensee complying with the statutes applicable to the licensee and as
18indemnity for any loss sustained by any person by reason of any acts of the licensee
19constituting grounds for suspension or revocation of the license under this section.
20The bonds shall be executed in the name of the department
of transportation for the
21benefit of any aggrieved parties; provided that the aggregate liability of the surety
22to all such parties shall, in no event, exceed the amount of the bond. The bonding
23requirements in this subdivision shall not apply to manufacturers, factory branches,
24and their agents and is in addition to the bond or letter of credit required of a motor
25vehicle dealer under par. (bb).
AB150-engrossed,1899,142
218.01
(2) (i) Application for dealers' licenses shall be submitted to the
3department
of transportation in duplicate and shall contain such information as the
4licensors require. Application for sales finance company licenses shall contain such
5information as the
commissioner division of banking requires. No motor vehicle
6dealer or sales finance company, unless so licensed, shall be permitted to register or
7receive or use registration plates under ss. 341.47 to 341.57. The department
of
8transportation shall transmit the duplicate copy of each application for a dealer's
9license to the
commissioner division of banking with the fee required under par. (d)
108. The
commissioner division of banking may not refund the fee required under par.
11(d) 8. The
commissioner division of banking shall approve a sales finance company
12license for a dealer if no prior sales finance company license has been suspended or
13revoked, and if the applicant meets the requirements of this section relating to sales
14finance companies.
AB150-engrossed,1899,2516
218.01
(2) (k) (intro.) After the receipt of an application in due form, properly
17verified and certified, and upon the payment of the $5 examination fee, the secretary,
18deputy secretary or any salaried employe of the department
of transportation 19designated by the secretary shall, within a reasonable time and in a place reasonably
20accessible to the applicant for a license, subject each first-time applicant for license
21and, if the secretary deems necessary, any applicant for renewal of license to a
22personal written examination as to competency to act as a motor vehicle salesperson.
23The secretary shall issue to an applicant a resident or nonresident motor vehicle
24salesperson's license if the application and examination show that the applicant
25meets all of the following requirements:
AB150-engrossed,1900,62
218.01
(2a) (a) Before changing the location of a place of business or opening
3a new place of business in a municipality in which authorized to do business, a
4licensed dealer, distributor, or manufacturer shall apply to the department
of
5transportation for an amended license. The department
of transportation shall issue
6such license without charge.
AB150-engrossed,1900,108
218.01
(2a) (b) Whenever a licensed dealer, distributor, manufacturer or
9transporter opens a new place of business, the licensee shall promptly report such
10fact, including the address thereof, to the department
of transportation.
AB150-engrossed,1900,1812
218.01
(2a) (c) Whenever a licensed dealer, distributor or manufacturer
13discontinues or disposes of his or her business, such person shall promptly report
14such fact to the department
of transportation and return the license and registration
15plates issued. Whenever a licensed dealer, distributor or manufacturer discontinues
16business due to license suspension or revocation, such person shall surrender the
17licenses and registration plates to the department
of transportation for such
18suspension or revocation period.
AB150-engrossed,1901,220
218.01
(2c) (c) The ownership, operation or control of a dealership by a
21manufacturer, importer or distributor, or subsidiary thereof, which does not meet the
22conditions under par. (a) or (b), if the
office of the commissioner of transportation 23division of hearings and appeals determines, after a hearing on the matter at the
24request of any party, that there is no prospective independent dealer available to own
25and operate the dealership in a manner consistent with the public interest and that
1meets the reasonable standard and uniformly applied qualifications of the
2manufacturer, importer or distributor.
AB150-engrossed,1901,224
218.01
(2w) (b) A manufacturer, importer or distributor shall, for the
5protection of the buying public, specify the delivery and preparation obligations of
6its dealers before delivery of new motor vehicles to retail buyers. A copy of the
7delivery and preparation obligations of its dealers shall be filed with the department
8of transportation by every licensed motor vehicle manufacturer, importer or
9distributor and shall constitute the dealer's only responsibility for product liability
10as between the dealer and the manufacturer, importer or distributor. Any
11mechanical, body or parts defects arising from any express or implied warranties of
12the manufacturer, importer or distributor shall constitute the manufacturer's,
13importer's or distributor's product or warranty liability. The manufacturer, importer
14or distributor shall reasonably compensate any authorized dealer who performs
15work to rectify the manufacturer's, importer's or distributor's product or warranty
16defects or delivery and preparation obligations or who performs any other work
17required, requested or approved by the manufacturer, importer or distributor or for
18which the manufacturer, importer or distributor has agreed to pay, including
19compensation for labor at a labor rate equal to the effective labor rate charged all
20customers and for parts at an amount not less than the amount the dealer charges
21its other retail service customers for parts used in performing similar work by the
22dealer.
AB150-engrossed,1902,1624
218.01
(3) (a) 17. Subject to sub. (3n), being a manufacturer, importer or
25distributor who has unfairly, without due regard to the equities or without just
1provocation, directly or indirectly canceled or failed to renew the franchise of any
2motor vehicle dealer; or being a manufacturer or importer, who has unfairly, without
3due regard to the equities or without just provocation, directly or indirectly canceled
4or failed to renew the franchise of any distributor. If there is a change in a
5manufacturer, importer or distributor, a motor vehicle dealer's franchise granted by
6the former manufacturer, importer or distributor shall continue in full force and
7operation under the new manufacturer, importer or distributor unless a mutual
8agreement of cancellation is filed with the department
of transportation between the
9new manufacturer, importer or distributor and the dealer. In this subdivision, "due
10regard to the equities" means treatment in enforcing an agreement that is fair and
11equitable to a motor vehicle dealer or distributor and that is not discriminatory
12compared to similarly situated dealers or distributors; and "just provocation" means
13a material breach by a motor vehicle dealer or distributor, due to matters within the
14dealer's or distributor's control, of a reasonable and necessary provision of an
15agreement and the breach is not cured within a reasonable time after written notice
16of the breach has been received from the manufacturer, importer or distributor.
AB150-engrossed,1902,2418
218.01
(3) (a) 24. Being a manufacturer, importer or distributor who fails to
19comply with the procedures in sub. (3x) regarding a dealer's request for approval of
20a change of ownership or executive management, transfer of its dealership assets to
21another person, adding another franchise at the same location as its existing
22franchise, or relocation of a franchise or who fails to comply with an order of the
office
23of the commissioner of transportation division of hearings and appeals issued under
24sub. (3x).
AB150-engrossed,1903,2
1218.01
(3) (a) 36. a. Fails to notify the department
of transportation of any
2revision or addition to an agreement as required under sub. (2) (bd) 1.
AB150-engrossed,1903,64
218.01
(3) (a) 36. b. Fails to revise or remove portions of an agreement that the
5department
of transportation declares to contain provisions which are inconsistent
6with sub. (2) (bm).
AB150-engrossed,1903,168
218.01
(3) (bf) 1. The department
of transportation shall not license as a dealer
9an applicant for the sale of motor vehicles at retail unless such applicant owns or
10leases a vehicle display lot and a permanent building wherein there are facilities to
11display automobiles and motorcycles and facilities to repair functional and
12nonfunctional parts of motor vehicles and where replacement parts, repair tools and
13equipment to service motor vehicles are kept, and at which place of business shall
14be kept and maintained the books, records and files necessary to conduct the
15business. A residence, tent or temporary stand is not a sufficiently permanent place
16of business within the meaning of this paragraph.
AB150-engrossed,1903,2418
218.01
(3) (c) 3. Matters involving suspensions or revocations brought before
19the department
of transportation shall be heard and decided upon by the division of
20hearings and appeals. If the department
of transportation requests the division of
21hearings and appeals to hear a matter brought before the department
of
22transportation under subd. 2., the division of hearings and appeals shall hear and
23decide the matter within 30 days after the date of the
department's department of
24transportation's request.
AB150-engrossed,1904,20
1218.01
(3) (f) 1. A manufacturer, importer or distributor who seeks to enter into
2a franchise agreement establishing or relocating a motor vehicle dealership, parts
3outlet or service outlet within the relevant market area of an existing enfranchised
4dealer of the line make of motor vehicle shall first notify in writing the department
5of transportation and each such existing enfranchised dealer of its intention to
6establish or relocate a dealership or outlet. Within 30 days of receiving the notice or
7within 30 days after the end of any appeal procedure provided by the manufacturer,
8importer or distributor, whichever is later, any existing enfranchised dealer of the
9same line make to whom the manufacturer, importer or distributor is required to give
10notice under this subdivision may file with the department
of transportation and the
11division of hearings and appeals a complaint protesting the proposed establishment
12or relocation of the dealership or outlet within the relevant market area of the
13existing enfranchised dealer. If a complaint is filed, the department
of
14transportation shall inform the manufacturer, importer or distributor that a timely
15complaint has been filed, that a hearing is required, and that the proposed franchise
16agreement may not be entered into until the division of hearings and appeals has
17held a hearing, nor thereafter, if the division of hearings and appeals determines that
18there is good cause for not permitting the proposed establishment or relocation of the
19dealership or outlet. In the event of multiple complaints, hearings shall be
20consolidated to expedite the disposition of the issue.
AB150-engrossed,1905,922
218.01
(3) (fm) 1. A manufacturer or distributor may not modify a motor vehicle
23dealer agreement during the term of the agreement or upon its renewal if the
24modification substantially and adversely affects the motor vehicle dealer's rights,
25obligations, investment or return on investment without giving 60 days written
1notice of the proposed modification to the motor vehicle dealer unless the
2modification is required by law, court order or the licensor. Within the 60-day notice
3period the motor vehicle dealer may file with the department
of transportation and
4the division of hearings and appeals and serve upon the respondent a complaint for
5a determination of whether there is good cause for permitting the proposed
6modification. The division of hearings and appeals shall promptly schedule a
7hearing and decide the matter. Multiple complaints pertaining to the same proposed
8modification shall be consolidated for hearing. The proposed modification may not
9take effect pending the determination of the matter.
AB150-engrossed,1905,1411
218.01
(3) (g) Any person in interest aggrieved by a decision of the division of
12hearings and appeals may have a review thereof as provided in ch. 227 or aggrieved
13by an order of the
commissioner division of banking may have a review thereof as
14provided in s. 220.037.
AB150-engrossed,1905,2116
218.01
(3) (h) In addition to the licensor's authority to deny, suspend or revoke
17a license under this section, the
commissioner division of banking, after public
18hearing, may issue a special order enjoining any licensee from engaging in any act
19or practice which is determined by the
commissioner
division of banking to be in
20violation of any provision of par. (a), and the division of hearings and appeals may
21be petitioned to issue such a special order after notice and hearing thereon.
AB150-engrossed,1905,2423
218.01
(3a) (title)
When department to revoke Revocation of license of
24dealer, distributor, manufacturer, or transporter.
AB150-engrossed,1906,6
1218.01
(3a) (a) If a dealer, distributor or manufacturer is convicted under s.
2341.55 (1) a second or subsequent time within the same registration year, the
3department
of transportation shall revoke the license of such dealer, distributor or
4manufacturer for a period not to exceed one year. For the purposes of this paragraph,
5the conviction of the employe of a dealer, distributor or manufacturer shall be
6counted as a conviction of the employer.
AB150-engrossed,1906,108
218.01
(3a) (b) If a transporter is convicted under s. 341.55 (3) a 2nd or
9subsequent time within the same license period, the department
of transportation 10shall revoke the license of such transporter for a period not to exceed one year.
AB150-engrossed,1906,1712
218.01
(3a) (c) A dealer, distributor, manufacturer or transporter whose license
13has been revoked shall forthwith surrender its registration plates to a traffic officer
14or peace officer designated by the department
of transportation. A dealer,
15distributor, manufacturer or transporter who fails to return the plates as required
16by this subsection may be fined not more than $200 or imprisoned not more than 6
17months or both.
AB150-engrossed,1907,919
218.01
(3c) (c) If a manufacturer, factory branch or distributor believes it has
20good cause for refusing to honor the succession to the ownership and operation of a
21dealership by a family member of a deceased or incapacitated dealer under the
22existing franchise agreement, such manufacturer, factory branch or distributor may,
23within 30 days of receipt of notice of the designated family member's intent to
24succeed the dealer in the ownership and operation of the dealership, serve upon such
25designated family member and the department
of transportation notice of its refusal
1to honor the succession and of its intent to discontinue the existing franchise
2agreement with the dealership no sooner than 60 days from the date such notice is
3served. Such notice shall state the specific grounds for the refusal to honor the
4succession and the discontinuance of the franchise agreement. If no notice of such
5refusal and discontinuance is timely served upon the family member and
6department
of transportation, or if the division of hearings and appeals rules in favor
7of the complainant in a hearing held under par. (d), the franchise agreement shall
8continue in effect subject to termination only in the manner prescribed in this
9subchapter.
AB150-engrossed,1908,411
218.01
(3c) (d) Any designated family member who receives a notice of the
12manufacturer's, factory branch's or distributor's refusal to honor his or her
13succession to the ownership and operation of the dealership may, within the 60-day
14notice period, serve on the respondent and file in triplicate with the division of
15hearings and appeals a verified complaint for a hearing and determination by the
16division of hearings and appeals on whether good cause exists for such refusal and
17discontinuance. The division of hearings and appeals shall forward a copy of the
18complaint to the department
of transportation. The manufacturer, factory branch
19or distributor shall have the burden of establishing good cause for such refusal by
20showing that the succession would be detrimental to the public interest or to the
21representation of the manufacturer, factory branch or distributor. The franchise
22agreement shall continue in effect until the final determination of the issues raised
23in such complaint. If the complainant prevails he or she shall have a cause of action
24against the defendant for reasonable expenses and attorney fees incurred in such
25matter. If the manufacturer, factory branch or distributor prevails, the division of
1hearings and appeals shall include in its order approving the termination of the
2franchise agreement such conditions as are reasonable and adequate to afford the
3complainant an opportunity to receive fair and reasonable compensation for the
4value of the dealership.