AB969: Bill Text

AB969,22,21 218.0114 (4) Application for a license under this section shall be made to the licensor, at such the time, in such the form and with such information as that the licensor shall may require and shall be accompanied by the required fees. An applicant for a sales finance company license, other than a motor vehicle dealer, shall pay to the division of banking a nonrefundable $300 investigation fee in addition to the license fee under par. (dr) sub. (16). If the cost of an investigation exceeds $300, the applicant shall, upon demand of the division of banking, pay the amount by which the cost of the investigation exceeds the nonrefundable fee. A licensee is not required to pay an investigation fee for the renewal of a license. The licensor may require the applicant to provide information relating to any pertinent matter that is commensurate with the safeguarding of the public interest in the locality in which the applicant proposes to engage in business, except that information relating to the applicant's solvency and financial standing may not be required for motor vehicle dealers except as provided in par. (h) 1. sub. (20) (a). The information provided may be considered by the licensor in determining the fitness of the applicant to engage in business as set forth in this section ss. 218.0101 to 218.0163.

AB969, s. 59 Section 59. 218.01 (2) (bb) of the statutes is renumbered 218.0114 (5) and amended to read:

AB969,23,6 218.0114 (5) (a) A motor vehicle dealer or an applicant for a motor vehicle dealer license shall provide and maintain in force a bond or irrevocable letter of credit of not less than $25,000 or, if the dealer or applicant sells or proposes to sell motorcycles and not other types of motor vehicles, a bond or irrevocable letter of credit of not less than $5,000. The bond or letter of credit shall be executed in the name of the department of transportation for the benefit of any person who sustains a loss because of an act of a motor vehicle dealer that constitutes grounds for the suspension or revocation of a license under this section ss. 218.0101 to 218.0163.

AB969,23,14 (b) A sales finance company or an applicant for a sales finance company license shall provide and maintain in force a bond or irrevocable letter of credit of not less than $25,000 issued by a surety company licensed to do business in this state or a federally insured financial institution, as defined in s. 705.01 (3). The bond or letter of credit shall be payable to the state of Wisconsin for the use of the state and of any person who sustains a loss because of an act of a sales finance company that constitutes grounds for the suspension or revocation of a license under this section ss. 218.0101 to 218.0163.

AB969, s. 60 Section 60. 218.01 (2) (bc) of the statutes is renumbered 218.0114 (6) and amended to read:

AB969,24,5 218.0114 (6) Except as provided in this subsection section every dealer and distributor of new motor vehicles shall, at the time of application for a license, file with the department of transportation a certified copy of the applicant's written agreement and a certificate of appointment as dealer or distributor, respectively. The certificate of appointment shall be signed by an authorized agent of the manufacturer of domestic vehicles on direct manufacturer-dealer agreements; or, where the manufacturer is wholesaling through an appointed distributorship, by an authorized agent of the distributor on indirect distributor-dealer agreements. The certificate shall be signed by an authorized agent of the importer on direct importer-dealer agreements of foreign-made vehicles; or by an authorized agent of the distributor on indirect distributor-dealer agreements. The distributor's certificate of appointment shall be signed by an authorized agent of the manufacturer; or by an agent of the manufacturer or importer of foreign manufactured vehicles.

AB969, s. 61 Section 61. 218.01 (2) (bd) 1. of the statutes is renumbered 218.0114 (7) (a) 1. (intro.) and amended to read:

AB969,24,12 218.0114 (7) (a) 1. (intro.) A written agreement need not be filed for each dealer or distributor if the manufacturer on or importer for direct dealerships or distributor on for indirect dealerships or importer on direct dealerships utilizes the identical basic agreement for all its dealers or distributors in Wisconsin and certifies in the certificate of appointment that such blanket all of the following:

AB969,24,14 a. That the basic agreement is on file and such written with the department of transportation.

AB969,24,17 b. That the manufacturer's, distributor's or importer's agreement with such dealer each of its dealers or distributor distributors, respectively, is identical with to the filed blanket basic agreement , and.

AB969,24,20 c. That the manufacturer, distributor or importer has filed with the department of transportation one such executed basic agreement together with a list of its authorized dealers or distributors. Such with the department of transportation.

AB969,24,22 2. A manufacturer, distributor or importer shall notify the department of transportation immediately of any of the following:

AB969,24,24 a. The appointment of any additional dealers or distributors, of any not included in the list filed under subd. 1. c.

AB969,25,2 b. Any revisions of or additions to the basic agreement on file, or of any under subd. 1. a.

AB969,25,4 c. Any individual dealer or distributor supplements to such the basic agreement on file under subd. 1. a.

AB969,25,14 3. Except as provided in subd. 1g., the par. (b), a manufacturer, distributor or importer shall notify the a dealer or distributor and forward a copy of such notice to the department of transportation of the discontinuation or cancellation of the manufacturer's, distributor's or importer's agreement of any of its dealers or distributors at least 60 days before the effective date thereof together with of the discontinuation or cancellation. The notice shall state the specific grounds for discontinuation or cancellation of the agreement, if discontinued or canceled. The manufacturer, distributor or importer that issues the notice of discontinuation or cancellation shall forward a copy of the notice to the department of transportation at least 60 days before the effective date of the discontinuation or cancellation.

AB969,25,19 (e) Agreements and certificates of appointment are deemed considered to be continuing unless the manufacturer, distributor or importer has notified the department of transportation of the discontinuation or cancellation of the agreement of any of its dealers or distributors, and annual renewal of certifications filed as provided in this subsection section is not necessary.

AB969, s. 62 Section 62. 218.01 (2) (bd) 1g. of the statutes is renumbered 218.0114 (7) (b).

AB969, s. 63 Section 63. 218.01 (2) (bd) 1r. of the statutes is renumbered 218.0114 (7) (c), and 218.0114 (7) (c) (intro.), as renumbered, is amended to read:

AB969,25,25 218.0114 (7) (c) (intro) The notice served upon a motor vehicle dealer under subds. 1. and 1g. pars. (a) 3. and (b) is not effective unless it conspicuously displays the following statement:

AB969, s. 64 Section 64. 218.01 (2) (bd) 2. of the statutes is renumbered 218.0114 (7) (d) and amended to read:

AB969,26,14 218.0114 (7) (d) Any dealer or distributor discontinued or canceled may, on or before the date on which the discontinuation or cancellation becomes effective, file with the department of transportation and division of hearings and appeals and serve upon the respondent manufacturer, distributor or importer a complaint for a determination of unfair discontinuation or cancellation under sub. (3) (a) 17. s. 218.0116 (1) (i). Allowing opportunity for an answer, the The division of hearings and appeals shall thereafter schedule a hearing on and decide the matter after allowing the respondent an opportunity to answer. Agreements and certificates of appointment shall continue in effect until final determination of the issues raised in such the complaint. If the complainant prevails he or she shall have a cause of action against the defendant respondent for reasonable expenses and attorney fees incurred by him or her in such the matter.

AB969, s. 65 Section 65. 218.01 (2) (bd) 3. of the statutes is renumbered 218.0114 (2m) and amended to read:

AB969,26,25 218.0114 (2m) No manufacturers', distributors' or importers' vehicles shall be sold in this state unless either the manufacturer on direct dealerships of domestic vehicles, the importer of foreign manufactured vehicles on direct dealerships or the distributor on indirect dealerships of either domestic or foreign vehicles are licensed under s. 218.01 ss. 218.0101 to 218.0163. The obtaining of a license under s. 218.01 ss. 218.0101 to 218.0163 shall conclusively establish that such a manufacturer, distributor or importer is doing business in this state and shall subject the licensee to all provisions of the Wisconsin statutes regulating manufacturers, importers and distributors.

AB969, s. 66 Section 66. 218.01 (2) (bf) of the statutes is renumbered 218.0114 (8) and amended to read:

AB969,27,6 218.0114 (8) Within 60 days after the department of transportation issues a declaratory ruling under s. 227.41 that an agreement is inconsistent with par. (bm) sub. (9), a manufacturer, distributor or importer shall remove or revise any provision of the agreement declared to be inconsistent with par. (bm) sub. (9).

AB969, s. 67 Section 67. 218.01 (2) (bm) 1. (intro.) of the statutes is renumbered 218.0114 (9) (a) (intro.) and amended to read:

AB969,27,10 218.0114 (9) (a) (intro.) Except as provided in par. (bo) sub. (10), provisions of an agreement which do any of the following are void and prohibited:

AB969, s. 68 Section 68. 218.01 (2) (bm) 1. a. of the statutes is renumbered 218.0114 (9) (a) 1. and amended to read:

AB969,27,16 218.0114 (9) (a) 1. Waive a remedy or defense available to a distributor or dealer or other provision protecting the interests of a distributor or dealer under this section ss. 218.0101 to 218.0163 or under rules promulgated by the department of transportation under this section ss. 218.0101 to 218.0163.

AB969, s. 69 Section 69. 218.01 (2) (bm) 1. b. of the statutes is renumbered 218.0114 (9) (a) 2.

AB969, s. 70 Section 70. 218.01 (2) (bm) 1. c. of the statutes is renumbered 218.0114 (9) (a) 3.

AB969, s. 71 Section 71. 218.01 (2) (bm) 2. of the statutes is renumbered 218.0114 (9) (b) and amended to read:

AB969,28,3 218.0114 (9) (b) 1. Notwithstanding subd. 1. b. par. (a) 2. and subject to sub. (3) (a) 36. d. s. 218.0116 (1) (qm) 4., an agreement may provide for the resolution of disputes by arbitration, including binding arbitration, if both parties to the agreement voluntarily agree to an arbitration provision. An arbitrator acting under this subd. 2. a. subdivision shall be bound by the laws of this state, including par. (bd) 2. sub. (7) (d) and other provisions of this section ss. 218.0101 to 218.0163.

AB969,28,6 2. No finding of an arbitrator is binding upon any person who is not a party to the agreement. A finding of an arbitrator does not bind the department of transportation with respect to enforcement of this section ss. 218.0101 to 218.0163.

AB969, s. 72 Section 72. 218.01 (2) (bm) 3. of the statutes is renumbered 218.0114 (9) (c) and amended to read:

AB969,28,11 218.0114 (9) (c) Notwithstanding subd. 1. b. par. (a) 2., an agreement may require a dealer or distributor to submit disputes to a nonbinding and reasonably prompt dispute resolution procedure before bringing an action in another forum.

AB969, s. 73 Section 73. 218.01 (2) (bo) (intro.) of the statutes is renumbered 218.0114 (10) (intro.) and amended to read:

AB969,28,15 218.0114 (10) (intro.) Paragraph (bm) Subsection (9) does not apply to any of the following:

AB969, s. 74 Section 74. 218.01 (2) (bo) 1. of the statutes is renumbered 218.0114 (10) (a).

AB969, s. 75 Section 75. 218.01 (2) (bo) 2. of the statutes is renumbered 218.0114 (10) (b) and amended to read:

AB969,28,21 218.0114 (10) (b) An agreement, made after a dealer receives notice under sub. (3) (f) 1. s. 218.0116 (7) (a), which waives the dealer's right to file a complaint protesting the establishment or relocation of a dealership proposed in the notice.

AB969, s. 76 Section 76. 218.01 (2) (bs) of the statutes is renumbered 218.0114 (11) and amended to read:

AB969,29,2 218.0114 (11) A manufacturer, distributor or importer shall designate in writing the area of sales responsibility assigned to a motor vehicle dealer. A manufacturer, distributor or importer may not modify the area of sales responsibility to avoid the requirements of sub. (3) (f) s. 218.0116 (7).

AB969, s. 77 Section 77. 218.01 (2) (c) 1. of the statutes is renumbered 218.0114 (12) (a) and amended to read:

AB969,29,7 218.0114 (12) (a) Except as provided in subd. 2. par. (b), all licenses shall be granted or refused within 60 days after the licensor receives the application for the license.

AB969, s. 78 Section 78. 218.01 (2) (c) 2. a. of the statutes is renumbered 218.0114 (12) (b) 1.

AB969, s. 79 Section 79. 218.01 (2) (c) 2. b. of the statutes is renumbered 218.0114 (12) (b) 2. and amended to read:

AB969,29,15 218.0114 (12) (b) 2. In cases where a complaint has been filed under sub. (3) (f) s. 218.0116 (7) protesting the proposed establishment or relocation of a dealership in a relevant market area, no license may be issued until the division of hearings and appeals has rendered a decision permitting the issuance of the license.

AB969, s. 80 Section 80. 218.01 (2) (cm) of the statutes is renumbered 218.0114 (13) and amended to read:

AB969,29,19 218.0114 (13) (a) Licenses described in par. (dr) sub. (16) expire on December 31 of the calendar year for which the licenses are granted.

AB969,29,21 (b) The department of transportation shall promulgate rules establishing the license period for each type of license described in par. (d) 1. to 6. sub. (14) (a) to (f).

AB969,29,24 (c) The department of transportation may promulgate rules establishing expiration dates for the various types of licenses described in par. (d) 1. to 6. sub. (14) (a) to (f).

AB969,30,2 (d) The division of banking shall promulgate rules establishing the license period for the license described in par. (d) 8. sub. (14) (g).

AB969,30,4 (e) The division of banking may promulgate rules establishing expiration dates for licenses issued under par. (d) 8. sub. (14) (g).

AB969, s. 81 Section 81. 218.01 (2) (d) (intro.) of the statutes is renumbered 218.0114 (14) (intro.) and amended to read:

AB969,30,9 218.0114 (14) (intro.) Subject to par. (dm) sub. (15), the fee for licenses described in this paragraph subsection equals the number of years in a license period multiplied by whichever of the following applies:

AB969, s. 82 Section 82. 218.01 (2) (d) 1. of the statutes is renumbered 218.0114 (14) (a) and amended to read:

AB969,30,15 218.0114 (14) (a) For motor vehicle dealers, to the department of transportation, $20 for each office or branch thereof of the motor vehicle dealer, plus $1 for a supplemental license for each used motor vehicle lot within the same municipality, but not immediately adjacent to the office or to a branch.

AB969, s. 83 Section 83. 218.01 (2) (d) 2. of the statutes is renumbered 218.0114 (14) (b).

AB969, s. 84 Section 84. 218.01 (2) (d) 3. of the statutes is renumbered 218.0114 (14) (c).

AB969, s. 85 Section 85. 218.01 (2) (d) 4. of the statutes is renumbered 218.0114 (14) (d) and amended to read:

AB969,30,21 218.0114 (14) (d) Any person licensed under subd. 2. or 3. next preceding, par. (b) or (c) may also operate as a motor vehicle dealer, without any additional fee.

AB969, s. 86 Section 86. 218.01 (2) (d) 5. of the statutes is renumbered 218.0114 (14) (e).

AB969, s. 87 Section 87. 218.01 (2) (d) 6. of the statutes is renumbered 218.0114 (14) (f).

AB969, s. 88 Section 88. 218.01 (2) (d) 8. of the statutes is renumbered 218.0114 (14) (g) and amended to read:

AB969,31,2 218.0114 (14) (g) 1. Except as provided in subd. 8. b. 2., for motor vehicle dealers, to the division of banking, $10.

AB969,31,6 2. For motor vehicle dealers that operate as a sales finance company or that carry or retain retail instalment contracts or consumer leases for more than 30 days, to the division of banking, the same as for sales finance companies under par. (dr) sub. (16).

AB969, s. 89 Section 89. 218.01 (2) (dm) of the statutes is renumbered 218.0114 (15) and amended to read:

AB969,31,12 218.0114 (15) (a) If the department of transportation or division of banking establishes a license period that is not evenly divisible into years, the department of transportation or division of banking shall prorate the remainder when determining the license fee under par. (d) sub. (14).

AB969,31,19 (b) If the department of transportation or division of banking grants a license described under par. (d) sub. (14) during the license period, the fee for the license shall equal the applicable dollar amount under par. (d) 1. to 8. sub. (14) (a) to (g) multiplied by the number of calendar years, including parts of calendar years, during which the license remains in effect. A fee determined under this subdivision paragraph may not exceed the license fee for an entire license period under par. (d) sub. (14).

AB969, s. 90 Section 90. 218.01 (2) (dr) of the statutes, as affected by 1997 Wisconsin Act 48, is renumbered 218.0114 (16).

AB969, s. 91 Section 91. 218.01 (2) (e) of the statutes is renumbered 218.0114 (17) and amended to read:

AB969,32,6 218.0114 (17) The licenses of dealers, manufacturers, factory branches, distributors, distributor branches and sales finance companies shall specify the location of the office or branch and must be conspicuously displayed there at that location. In case such the location be of the office or branch is changed, the licensor shall indorse the change of location on the license, without charge, if it be the new location is within the same municipality as the previous location. A change of location to another municipality shall require a new license, except for sales finance companies.

AB969, s. 92 Section 92. 218.01 (2) (f) of the statutes is renumbered 218.0114 (18) and amended to read:

AB969,32,16 218.0114 (18) Every salesperson, factory representative or distributor representative shall carry his or her license when engaged in business, and display the license upon request. The license shall name his or her the licensee's employer, and in case of. Upon leaving an employer, the salesperson licensee shall immediately surrender the license to his or her employer who shall mail the license to the licensor. If during the license period the individual licensee again is employed or acts as a salesperson, he or she shall make application for reissue of a salesperson's license. There shall be no fee in connection with such the subsequent applications.

AB969, s. 93 Section 93. 218.01 (2) (g) of the statutes is renumbered 218.0114 (19).

AB969, s. 94 Section 94. 218.01 (2) (h) 1. of the statutes is renumbered 218.0114 (20) (a) and amended to read:

AB969,32,24 218.0114 (20) (a) If the licensor has reasonable cause to doubt the financial responsibility of the applicant or licensee or the compliance by the applicant or licensee with this section ss. 218.0101 to 218.0163, the licensor may require the applicant or licensee to furnish information relating to the applicant's or licensee's solvency and financial standing.

AB969, s. 95 Section 95. 218.01 (2) (h) 2. of the statutes is renumbered 218.0114 (20) (b) and amended to read:

AB969,33,17 218.0114 (20) (b) Provided If the licensor has reasonable cause to doubt the financial responsibility of the applicant or licensee or the compliance by the applicant or licensee with this section ss. 218.0101 to 218.0163, the licensor may require the applicant or licensee to furnish and maintain a bond in the form, amount and with the sureties it approves, but not less than $5,000, nor more than $100,000, conditioned upon the applicant or licensee complying with the statutes applicable to the licensee and as indemnity for any loss sustained by any person by reason of any acts of the licensee constituting grounds for suspension or revocation of the license under this section ss. 218.0101 to 218.0163. The bonds shall be executed in the name of the department of transportation for the benefit of any aggrieved parties; provided, except that the aggregate liability of the surety to all such aggrieved parties shall, in no event, exceed the amount of the bond. The bonding requirements in this subdivision paragraph shall not apply to manufacturers, factory branches, and their agents and is in addition to the bond or letter of credit required of a motor vehicle dealer under par. (bb) 1. sub. (5) (a).

AB969, s. 96 Section 96. 218.01 (2) (h) 3. of the statutes is renumbered 218.0114 (20) (c) and amended to read:

AB969,34,4 218.0114 (20) (c) An applicant or licensee furnishing information under subd. 1. par. (a) may designate the information as a trade secret, as defined in s. 134.90 (1) (c), or as confidential business information. The licensor shall notify the applicant or licensee providing the information 15 days before any information designated as a trade secret or as confidential business information is disclosed to the legislature, a state agency, as defined in s. 13.62 (2), a local governmental unit, as defined in s. 605.01 (1), or any other person. The applicant or licensee furnishing the information may seek a court order limiting or prohibiting the disclosure. In such cases in which case, the court shall weigh the need for confidentiality of the information against the public interest in the disclosure.

AB969, s. 97 Section 97. 218.01 (2) (i) of the statutes is renumbered 218.0114 (21) and amended to read:

AB969,34,19 218.0114 (21) Application for dealers' licenses shall be submitted to the department of transportation in duplicate and shall contain such information as the licensors require. Application for sales finance company licenses shall contain such information as the division of banking requires. No motor vehicle dealer or sales finance company, unless so licensed, shall be permitted to register or receive or use registration plates under ss. 341.47 to 341.57. The department of transportation shall transmit the duplicate copy of each application for a dealer's license to the division of banking with the fee required under par. (d) 8. sub. (14) (g). The division of banking may not refund the fee required under par. (d) 8. sub. (14) (g). The division of banking shall approve a sales finance company license for a dealer if no prior sales finance company license has been suspended or revoked, and if the applicant meets the requirements of this section ss. 218.0101 to 218.0163 relating to sales finance companies.

AB969, s. 98 Section 98. 218.01 (2) (j) of the statutes is renumbered 218.0114 (22) and amended to read:

AB969,34,24 218.0114 (22) A motor vehicle dealer licensed in accordance with the provisions of this section ss. 218.0101 to 218.0163 shall make reports to the licensor at such intervals and showing such information as the licensor may require.

AB969, s. 99 Section 99. 218.01 (2) (k) of the statutes is renumbered 218.0114 (23).

AB969, s. 100 Section 100. 218.01 (2a) (title) of the statutes is renumbered 218.0119 (title).