SB99: Bill Text

SB99,55,3 218.0116 (1) (rm) Being a grantor, as defined in sub. (3r) (a) 2. s. 218.0133 (1) (b), who fails to pay a motor vehicle dealer agreement termination benefits under sub. (3r) s. 218.0133.

SB99, s. 164 Section 164. 218.01 (3) (a) 39. of the statutes is renumbered 218.0116 (1) (s) and amended to read:

SB99,55,8 218.0116 (1) (s) Being a manufacturer or distributor who modifies a motor vehicle dealer agreement during the term of the agreement or upon its renewal without complying with par. (fm) sub. (8).

SB99, s. 165 Section 165. 218.01 (3) (a) 40. of the statutes is renumbered 218.0116 (1) (sm) and amended to read:

SB99,55,11 218.0116 (1) (sm) Having violated s. 218.017 218.0172.

SB99, s. 166 Section 166. 218.01 (3) (a) 41. of the statutes is renumbered 218.0116 (1) (t) and amended to read:

SB99,55,21 218.0116 (1) (t) Being a manufacturer, importer or distributor who compels a dealer, through a financing subsidiary of the manufacturer, importer or distributor, to agree to unreasonable operating requirements or who directly or indirectly cancels or fails to renew a dealer's franchise, except as allowed under subs. (3) (a) 17. and (3n) par. (i) and s. 218.0132, through the actions of a financing subsidiary of the manufacturer, importer or distributor. This subdivision paragraph does not limit the right of a financing subsidiary to engage in business practices in accordance with the usages of the trade in which it is engaged.

SB99, s. 167 Section 167. 218.01 (3) (a) 42. of the statutes is renumbered 218.0116 (1) (tm) and amended to read:

SB99,56,3 218.0116 (1) (tm) Being a licensee who wilfully refuses or fails to participate in mediation pursuant to a demand for mediation served under sub. (7m) (a) s. 218.0136 (1).

SB99, s. 168 Section 168. 218.01 (3) (a) 43. of the statutes is renumbered 218.0116 (1) (u).

SB99, s. 169 Section 169. 218.01 (3) (ag) of the statutes is renumbered 218.0116 (1g) and amended to read:

SB99,56,15 218.0116 (1g) (a) A license described in sub. (2) (d) s. 218.0114 (14) shall be denied, restricted, limited or suspended if the applicant or licensee is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under s. 49.857.

SB99,56,18 (b) A license described in par. (d) 1., 2., 3. or 5. s. 218.0114 (14) (a), (b), (c) or (e) shall be suspended or revoked if the department of revenue certifies under s. 73.0301 that the applicant or licensee is liable for delinquent taxes.

SB99,56,21 (c) No provision of this section ss. 218.0101 to 218.0163 that entitles an applicant or licensee to a notice or hearing applies to a denial, restriction, limitation, suspension or revocation of a license under this paragraph subsection.

SB99, s. 170 Section 170. 218.01 (3) (am) of the statutes is renumbered 218.0116 (1m) and amended to read:

SB99,56,25 218.0116 (1m) (a) A license described in sub. (2) (dr) s. 218.0114 (16) shall be denied if any of the follow following applies:

SB99,57,2 1. The applicant fails to provide the information required under sub. (2) (ig) 1. s. 218.0114 (21g) (a).

SB99,57,7 2. The department of revenue certifies under s. 73.0301 that the applicant is liable for delinquent taxes. An applicant whose license is denied under this subd. 1. b. subdivision for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this subsection section.

SB99,57,17 3. The applicant is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under s. 49.857. An applicant whose application is denied under this subd. 1. c. subdivision is entitled to a notice and hearing under s. 49.857 but is not entitled to any other notice or hearing under this section ss. 218.0101 to 218.0163.

SB99,58,3 (b) A license described in sub. (2) (dr) s. 218.0114 (16) shall be restricted or suspended if the licensee is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under s. 49.857. A licensee whose license is restricted or suspended under this subdivision paragraph is entitled to a notice and hearing under s. 49.857 but is not entitled to any other notice or hearing under this section ss. 218.0101 to 218.0163.

SB99,58,9 (c) A license described in sub. (2) (dr) s. 218.0114 (16) shall be revoked if the department of revenue certifies under s. 73.0301 that the licensee is liable for delinquent taxes. A licensee whose license is revoked under this subdivision paragraph for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this subsection section.

SB99, s. 171 Section 171. 218.01 (3) (b) of the statutes is renumbered 218.0116 (2) and amended to read:

SB99,58,17 218.0116 (2) The licensor may without prior notice deny the application for a license within 60 days after receipt thereof of the application by written notice to the applicant, stating the grounds for such the denial. Within 30 days after such receiving the notice, the applicant may petition the division of hearings and appeals to conduct a hearing to review the denial, and a hearing shall be scheduled with reasonable promptness.

Note: "[P]rior" is inserted to eliminate an internal inconsistency.

SB99, s. 172 Section 172. 218.01 (3) (bf) of the statutes is renumbered 218.0116 (3) and amended to read:

SB99,59,4 218.0116 (3) (a) 1. Except as provided in subd. 1. b. 2., the department of transportation shall not license an applicant as a dealer an applicant for the sale or lease of motor vehicles at retail unless such the applicant owns or leases a vehicle display lot and a permanent building wherein in which there are facilities to display motor vehicles and facilities to repair functional and nonfunctional parts of motor vehicles and, where replacement parts, repair tools and equipment to service motor vehicles are kept, and at which place of business shall be kept and maintained the books, records and files necessary to conduct the dealer's business shall be kept and maintained.

SB99,59,6 1m. A residence, tent or temporary stand is not a sufficiently permanent place of business building within the meaning of this paragraph subd. 1.

SB99,59,11 2. The requirements in subd. 1. a. that an applicant own or lease a vehicle display lot and that the permanent building owned or leased by the applicant contain facilities to display motor vehicles do not apply to persons who are engaged only in the leasing of motor vehicles and who do not maintain an inventory of motor vehicles offered for lease.

SB99,59,17 (b) An approved service contract with an established repair shop having the repair parts and repair facilities specified in subd. par. (a) 1. shall serve in lieu of the applicant's owning or leasing the applicant's own repair facilities if such the service connection is within a reasonable distance from the applicant's place of business and if such the service connection guarantees in writing the making of the repairs or replacements ordered by the dealer.

SB99,59,19 (c) This paragraph subsection does not apply to persons who deal only in mopeds or motor bicycles.

SB99, s. 173 Section 173. 218.01 (3) (c) of the statutes is renumbered 218.0116 (4) and amended to read:

SB99,60,2 218.0116 (4) (a) No license may be suspended or revoked except after a hearing thereon on the possible suspension or revocation. Except as provided in subd. 2. par. (b), the licensor shall give the licensee at least 5 days' notice of the time and place of such the hearing, and the. The order suspending or revoking such the license shall not be effective until after 10 days' written notice thereof of the order to the licensee, after such the hearing under this paragraph has been had held.

SB99,60,7 (b) When in the licensor's opinion the best interest of the public or the trade demands it, for conduct or under circumstances specified in this section ss. 218.0101 to 218.0163 or in rules promulgated by the licensor, the licensor may suspend a license upon not less than 24 hours' notice of hearing and with not less than 24 hours' notice of the suspension of the license.

SB99,60,14 (c) Matters involving suspensions or revocations brought before the department of transportation shall be heard and decided upon by the division of hearings and appeals. If the department of transportation requests the division of hearings and appeals to hear a matter brought before the department of transportation under subd. 2. par. (b), the division of hearings and appeals shall hear and decide the matter within 30 days after the date of the department of transportation's request.

SB99, s. 174 Section 174. 218.01 (3) (d) of the statutes is renumbered 218.0116 (5) and amended to read:

SB99,60,22 218.0116 (5) The licensor may inspect the pertinent books, records, letters and contracts of a licensee and shall determine the cost of an examination. The cost of an examination shall be paid by such the licensee so examined within 30 days after demand therefor for the examination by the licensor, and the. The licensor may maintain an action for the recovery of such the costs of the examination in any court of competent jurisdiction.

SB99, s. 175 Section 175. 218.01 (3) (e) of the statutes is renumbered 218.0116 (6) and amended to read:

SB99,61,10 218.0116 (6) If a licensee is a firm, corporation or limited liability company, it shall be sufficient cause for the denial, suspension or revocation of a license that any officer, director, trustee or manager of the firm, corporation or limited liability company, or any member in case of a partnership, has been guilty of any act or omission which would be cause for refusing, suspending or revoking a license to such that party as an individual. Each licensee shall be responsible for the acts of any or all of his or her salespersons while acting as his or her agent, if the licensee approved of or had knowledge of the acts or other similar acts and after such approval approving of or obtaining knowledge of the acts retained the benefit, proceeds, profits or advantages accruing from the acts or otherwise ratified the acts.

SB99, s. 176 Section 176. 218.01 (3) (f) 1. of the statutes is renumbered 218.0116 (7) (a) 1. and amended to read:

SB99,61,25 218.0116 (7) (a) 1. A manufacturer, importer or distributor who seeks to enter into a franchise agreement establishing or relocating a motor vehicle dealership, parts outlet or service outlet within the relevant market area of an existing enfranchised dealer of the line make of motor vehicle shall first notify, in writing, the department of transportation and each such that existing enfranchised dealer of its intention to establish or relocate a dealership or outlet. Within 30 days of receiving the notice or within 30 days after the end of any appeal procedure provided by the manufacturer, importer or distributor, whichever is later, any existing enfranchised dealer of the same line make to whom the manufacturer, importer or distributor is required to give notice under this subdivision paragraph may file with the department of transportation and the division of hearings and appeals a complaint protesting the proposed establishment or relocation of the dealership or outlet within the relevant market area of the existing enfranchised dealer.

SB99,62,8 2. If a complaint is filed under subd. 1., the department of transportation shall inform the manufacturer, importer or distributor that a timely complaint has been filed, that a hearing is required, and that the proposed franchise agreement may not be entered into until the division of hearings and appeals has held a hearing, nor thereafter, if the division of hearings and appeals determines that there is good cause for not permitting the proposed establishment or relocation of the dealership or outlet. In the event of multiple complaints, hearings shall be consolidated to expedite the disposition of the issue.

SB99, s. 177 Section 177. 218.01 (3) (f) 2. of the statutes is renumbered 218.0116 (7) (b), and 218.0116 (7) (b) 8., as renumbered, is amended to read:

SB99,62,13 218.0116 (7) (b) 8. The effect the denial of such the proposed establishment or relocation would have on the license applicant, dealer or outlet operator who is seeking to establish or relocate a dealership or outlet.

SB99, s. 178 Section 178. 218.01 (3) (f) 3. of the statutes is renumbered 218.0116 (7) (c).

SB99, s. 179 Section 179. 218.01 (3) (f) 4. (intro.) of the statutes is renumbered 218.0116 (7) (d) (intro.) and amended to read:

SB99,62,17 218.0116 (7) (d) (intro.) For purposes of this paragraph subsection:

SB99, s. 180 Section 180. 218.01 (3) (f) 4. a. of the statutes is renumbered 218.0116 (7) (d) 1h. and amended to read:

SB99,63,2 218.0116 (7) (d) 1h. The reopening or replacement of a dealership or outlet that has been closed for less than 2 years, at the original location or within 2 miles of the original location by the closest highway route, is not the establishment of a motor vehicle dealership or outlet, unless the location is within 4 miles, by the closest highway route, of another franchised dealer of the same line make and is closer to that dealer than the closed dealership or outlet. In this subd. 4. a., "closed" means the effective date of the termination or expiration of the dealership's or outlet's license or franchise, whichever is earlier.

SB99,63,10 1m. The reopening or replacement of a dealership or outlet that has been closed for less than 2 years at a location other than the original location and other than a location within 2 miles of the original location by the closest highway route, but within the area of sales responsibility that had been assigned to the closed dealership or outlet by the manufacturer, importer or distributor is not the establishment of a motor vehicle dealership or outlet, unless the new location is within 6 miles, by the closest highway route, of another franchised dealer of the same line make and is closer to that dealer than the closed dealership or outlet.

SB99,63,14 1q. The reopening or replacement of a dealership or outlet that has been closed for 2 or more years or that is at a location outside of the area of sales responsibility that had been assigned to the closed dealership or outlet by the manufacturer, importer or distributor is the establishment of a dealership or outlet.

Note: The definition of "closed" is recreated by this bill as s. 218.0116 (7) (d) 1d. for proper placement consistent with current style.

SB99, s. 181 Section 181. 218.01 (3) (f) 4. b. of the statutes is renumbered 218.0116 (7) (d) 2.

SB99, s. 182 Section 182. 218.01 (3) (f) 4. c. of the statutes is renumbered 218.0116 (7) (d) 3. and amended to read:

SB99,64,7 218.0116 (7) (d) 3. The establishment or relocation of a service or parts outlet requires that notice be given under subd. 1. par. (a) to existing enfranchised dealers who are otherwise entitled to receive such notice under par. (a) and who are authorized to perform work to rectify product or warranty defects or delivery and preparation obligations on the same line make as the proposed service outlet or to use a trade name, trademark or service mark that is also proposed to be used by the proposed service or parts outlet, except that the establishment or relocation of a service or parts outlet that is owned and operated by a motor vehicle dealership enfranchised by the manufacturer, importer or distributor requires that notice be given only to existing dealers who are otherwise entitled to receive such notice under par. (a) and who hold a franchise to sell the same line make as the dealership that will own and operate the proposed service or parts outlet.

SB99, s. 183 Section 183. 218.01 (3) (f) 4. d. of the statutes is renumbered 218.0116 (7) (d) 4. and amended to read:

SB99,64,13 218.0116 (7) (d) 4. A manufacturer's, importer's or distributor's authorization of a fleet owner to perform warranty or delivery and preparation work only on the fleet owner's own vehicles is not the establishment of a service outlet. In this subd. 4. d., "fleet subdivision:

SB99,64,17 a. "Fleet owner" means a person who owns for its own use or for the use of others 10 or more motor vehicles of the current or preceding model year manufactured or sold by the manufacturer, importer or distributor who is authorizing the warranty work to be performed, except that "fleet.

SB99,64,19 b. "Fleet owner" does not include persons engaged in the business of leasing motor vehicles to individual consumers.

SB99, s. 184 Section 184. 218.01 (3) (f) 4. e. of the statutes is renumbered 218.0116 (7) (d) 5.

SB99, s. 185 Section 185. 218.01 (3) (fm) of the statutes is renumbered 218.0116 (8).

SB99, s. 186 Section 186. 218.01 (3) (g) of the statutes is renumbered 218.0116 (9) and amended to read:

SB99,65,3 218.0116 (9) Any person in interest aggrieved by a decision of the division of hearings and appeals or an order of the division of banking may have a review thereof of the decision as provided in ch. 227.

SB99, s. 187 Section 187. 218.01 (3) (h) of the statutes is renumbered 218.0116 (10) and amended to read:

SB99,65,11 218.0116 (10) In addition to the licensor's authority to deny, suspend or revoke a license under this section ss. 218.0101 to 218.0163, the division of banking, after public hearing, may issue a special order enjoining any licensee from engaging in any act or practice which is determined by the division of banking to be in violation of any provision of par. (a) sub. (1), and the division of hearings and appeals may be petitioned to issue such a special order after notice and hearing thereon.

SB99, s. 188 Section 188. 218.01 (3a) (title) of the statutes is renumbered 218.0117 (title).

SB99, s. 189 Section 189. 218.01 (3a) (a) of the statutes is renumbered 218.0117 (1) and amended to read:

SB99,65,20 218.0117 (1) If a dealer, distributor or manufacturer is convicted under s. 341.55 (1) a second 2nd or subsequent time within the same registration year, the department of transportation shall revoke the license of such the dealer, distributor or manufacturer for a period not to exceed one year. For the purposes of this paragraph subsection, the conviction of the an employe of a dealer, distributor or manufacturer shall be counted as a conviction of the employer.

SB99, s. 190 Section 190. 218.01 (3a) (b) of the statutes is renumbered 218.0117 (2) and amended to read:

SB99,65,25 218.0117 (2) If a transporter is convicted under s. 341.55 (3) a 2nd or subsequent time within the same license period, the department of transportation shall revoke the license of such the transporter for a period not to exceed one year.

SB99, s. 191 Section 191. 218.01 (3a) (c) of the statutes is renumbered 218.0117 (3) and amended to read:

SB99,66,8 218.0117 (3) A dealer, distributor, manufacturer or transporter whose license has been revoked shall forthwith immediately surrender its registration plates to a traffic officer or peace officer designated by the department of transportation. A dealer, distributor, manufacturer or transporter who fails to return the plates as required by this subsection section may be fined not more than $200 or imprisoned for not more than 6 months or both.

Note: "(F)orthwith" is replaced with "immediately" and "for" is added for constancy with current style.

SB99, s. 192 Section 192. 218.01 (3a) (d) of the statutes is renumbered 218.0117 (4).

SB99, s. 193 Section 193. 218.01 (3c) (title) of the statutes is renumbered 218.0131 (title).

SB99, s. 194 Section 194. 218.01 (3c) (b) of the statutes is renumbered 218.0131 (1) and amended to read:

SB99,66,22 218.0131 (1) Any designated family member of a deceased or incapacitated dealer shall have the right to succeed such the deceased or incapacitated dealer in the ownership or operation of the dealership under the existing franchise agreement provided if the designated family member gives the manufacturer, factory branch or distributor written notice of his or her intention to do so within 120 days of the dealer's death or incapacity and, unless there exists good cause for refusal to honor such the succession on the part of the manufacturer, factory branch or distributor. The manufacturer, factory branch or distributor may request, and the designated family member shall provide, such personal and financial data as is that are reasonably necessary to determine whether the succession should be honored.

SB99, s. 195 Section 195. 218.01 (3c) (c) of the statutes is renumbered 218.0131 (2) and amended to read:

SB99,67,18 218.0131 (2) If a manufacturer, factory branch or distributor believes it has good cause for refusing to honor the succession to the ownership and operation of a dealership by a family member of a deceased or incapacitated dealer under the existing franchise agreement, such the manufacturer, factory branch or distributor may, within 30 days of receipt of notice of the designated family member's intent to succeed the dealer in the ownership and operation of the dealership, serve upon such the designated family member and the department of transportation notice of its refusal to honor the succession and of its intent to discontinue the existing franchise agreement with the dealership no sooner than 60 days from the date such the notice is served. Such The notice shall state the specific grounds for the refusal to honor the succession and the discontinuance of the franchise agreement. If no notice of such refusal and discontinuance is timely served upon the family member and department of transportation, or if the division of hearings and appeals rules in favor of the complainant in a hearing held under par. (d) sub. (3), the franchise agreement shall continue in effect subject to termination only in the manner prescribed in this subchapter.

SB99, s. 196 Section 196. 218.01 (3c) (d) of the statutes is renumbered 218.0131 (3) (a) and amended to read:

SB99,68,4 218.0131 (3) (a) Any designated family member who receives a notice of the manufacturer's, factory branch's or distributor's refusal to honor his or her succession to the ownership and operation of the dealership may, within the 60-day notice period, serve on the respondent and file in triplicate with the division of hearings and appeals a verified complaint for a hearing and determination by the division of hearings and appeals on whether good cause exists for such the manufacturer's, factory branch's or distributor's refusal and discontinuance. The division of hearings and appeals shall forward a copy of the complaint to the department of transportation.

SB99,68,10 (b) The manufacturer, factory branch or distributor shall, at the hearing held under par. (a), have the burden of establishing good cause for such its refusal by showing that the succession would be detrimental to the public interest or to the representation of the manufacturer, factory branch or distributor. The franchise agreement shall continue in effect until the final determination of the issues raised in such the complaint.

SB99,68,18 (c) If the complainant prevails at the hearing held under par. (a), he or she shall have a cause of action against the defendant manufacturer, factory branch or distributor for reasonable expenses and attorney fees incurred in such the matter. If the manufacturer, factory branch or distributor prevails, the division of hearings and appeals shall include in its order approving the termination of the franchise agreement such conditions as are reasonable and adequate to afford the complainant an opportunity to receive fair and reasonable compensation for the value of the dealership.

SB99, s. 197 Section 197. 218.01 (3c) (e) of the statutes is renumbered 218.0131 (4) and amended to read:

SB99,68,23 218.0131 (4) Nothing in this subsection section shall prevent a dealer, during the dealer's lifetime, from designating any person as his or her successor dealer by written instrument filed with the manufacturer, factory branch or distributor.

SB99, s. 198 Section 198. 218.01 (3n) (title) of the statutes is renumbered 218.0132 (title).

SB99, s. 199 Section 199. 218.01 (3n) (a) of the statutes is renumbered 218.0132 (1) (a) and amended to read:

SB99,69,7 218.0132 (1) (a) For purposes of sub. (3) (a) 17. s. 218.0116 (1) (i), the termination, cancellation or discontinuation of a motor vehicle line make will be considered to be the cancellation or failure to renew the franchise of a motor vehicle dealer or distributor of that line make even if that line make is part of an agreement that includes other line makes but.

SB99,69,11 (b) Notwithstanding par. (a), a manufacturer, importer or distributor may change, add or delete models, specifications, model names, numbers or identifying marks or similar characteristics of motor vehicles that it markets without effecting a cancellation or failure to renew a franchise.

SB99, s. 200 Section 200. 218.01 (3n) (b) (intro.) of the statutes is renumbered 218.0132 (2) (intro.) and amended to read: