AB1112: Bill Text

LRB-6201/1

EVM:wlj

2021 - 2022 LEGISLATURE

2021 Assembly BILL 1112

March 10, 2022 - Introduced by Representative Krug. Referred to Committee on Jobs and the Economy.

AB1112,1,6 An Act to amend 218.10 (8m); and to create 218.10 (1b), 218.10 (1d), 218.10 (1i), 218.10 (1n), 218.10 (1o), 218.10 (1p), 218.10 (1q), 218.10 (1t), 218.10 (2), 218.10 (7m), 218.10 (7w), 218.10 (8u), 218.10 (8v), 218.10 (8w), 218.10 (10), 218.10 (11), 218.161, 218.162, 218.163, 218.164, 218.165, 218.166, 218.167 and 218.17 of the statutes; relating to: recreational vehicle manufacturers, distributors, and dealers and providing a penalty.

Analysis by the Legislative Reference Bureau

Under current law, recreational vehicle (RV) dealers must be licensed by the Department of Transportation. An RV dealer license may be denied, suspended, or revoked for a number of reasons, including failure to comply with licensing requirements, committing certain types of fraud, or engaging in unconscionable business practices. In addition, persons who violate the statutes governing RV dealer licensure may be required to forfeit between $25 and $100 for a first offense and may be fined between $25 and $100 for a second or subsequent offense within three years.

This bill provides additional regulation of RV dealers and regulates various aspects of the relationship between RV dealers and RV manufacturers or distributors. Specifically, among other things, the bill does all of the following:

1. Requires a dealer agreement between each RV dealer and the manufacturer or distributor of the RVs the dealer sells. The bill further specifies certain contents of the agreement, including an exclusive sales area for each RV dealer.

2. Prohibits RV manufacturers and distributors from terminating or failing to renew a dealer agreement without good cause. The bill provides criteria that must be considered when assessing whether good cause exists.

3. Requires an RV manufacturer or distributor to provide notice before terminating or nonrenewing a dealer agreement and provides that a termination or nonrenewal must be rescinded upon certain actions by an RV dealer.

4. Provides that an RV dealer may terminate or nonrenew an agreement with an RV manufacturer upon 30 days' notice.

5. In certain cases, requires an RV manufacturer to repurchase certain products provided to RV dealers, including new RVs, certain RV accessories, and certain repair equipment, upon termination of a dealer agreement.

6. Requires an RV manufacturer or distributor to allow an RV dealer to designate a family member as a successor to its dealer agreement.

7. Specifies obligations with regard to warranty repairs.

8. Provides that DOT may administratively fine any person who violates the provisions of the bill up to $1,000 for each violation.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB1112,1 Section 1. 218.10 (1b) of the statutes is created to read:

AB1112,2,5 218.10 (1b) “Area of sales responsibility” means the geographical area agreed to by the dealer and the manufacturer or distributor in a dealer agreement within which the dealer has the exclusive right to display or sell the manufacturer's new recreational vehicles of a particular line-make.

AB1112,2 Section 2. 218.10 (1d) of the statutes is created to read:

AB1112,2,9 218.10 (1d) “Component manufacturer” means a person, firm, corporation, or business entity that engages in the manufacturing of components, accessories, or parts used in manufacturing recreational vehicles.

AB1112,3 Section 3. 218.10 (1i) of the statutes is created to read:

AB1112,3,4 218.10 (1i) “Dealer agreement” means a written agreement or contract entered into by a dealer and a manufacturer or distributor that fixes the rights and responsibilities of the parties and pursuant to which the dealer sells new recreational vehicles.

AB1112,4 Section 4. 218.10 (1n) of the statutes is created to read:

AB1112,3,7 218.10 (1n) “Distributor” means a person, firm, corporation, or business entity that purchases new recreational vehicles for resale to dealers.

AB1112,5 Section 5. 218.10 (1o) of the statutes is created to read:

AB1112,3,11 218.10 (1o) “Factory campaign” means an effort on the part of a warrantor to contact recreational vehicle owners or dealers in order to address a part or equipment issue.

AB1112,6 Section 6. 218.10 (1p) of the statutes is created to read:

AB1112,3,14 218.10 (1p) “Family member” means an individual's spouse or an individual's child, grandchild, parent, sibling, niece, or nephew or the spouse of any of these.

AB1112,7 Section 7. 218.10 (1q) of the statutes is created to read:

AB1112,3,21 218.10 (1q) “Fifth-wheel travel trailer" means a vehicle mounted on wheels that is designed to provide temporary living quarters for recreational, camping, or travel use, that is of a size and weight that a special highway movement permit is not required, and that is designed to be towed by a motor vehicle that contains a towing mechanism that is mounted above or forward of the rear axle of the tow vehicle.

AB1112,8 Section 8. 218.10 (1t) of the statutes is created to read:

AB1112,3,25 218.10 (1t) “Line-make” means a specific series of recreational vehicle products, the sale of which may be authorized by a dealer agreement, that satisfies all of the following:

AB1112,4,2 (a) Is targeted to a particular market segment, as determined by the decor, features, equipment, size, weight, and price range.

AB1112,4,5 (b) Has lengths and interior floor plans that distinguish the series of recreational vehicle products from other series with substantially the same decor, features, equipment, weight, and price.

AB1112,4,8 (c) Belongs to a single, distinct classification of recreational vehicle product type having a substantial degree of commonality in the construction of the chassis, frame, and body.

AB1112,9 Section 9. 218.10 (2) of the statutes is created to read:

AB1112,4,11 218.10 (2) “Model” is a series of recreational vehicle products identified by a common series trade name or trademark that is a subset of a line-make.

AB1112,10 Section 10. 218.10 (7m) of the statutes is created to read:

AB1112,4,14 218.10 (7m) “Park model recreational vehicle” means a recreational vehicle that is all of the following:

AB1112,4,16 (a) Designed and marketed as temporary living quarters for recreational, camping, travel, or seasonal use.

AB1112,4,17 (b) Not permanently affixed to real property for use as a permanent dwelling.

AB1112,4,19 (c) Built on a single chassis mounted on wheels with a gross trailer area not exceeding 400 square feet in the setup mode.

AB1112,4,21 (d) Certified by the manufacturer as complying with the ANSI A119.5 Park Model Recreational Vehicle Standard.

AB1112,11 Section 11. 218.10 (7w) of the statutes is created to read:

AB1112,4,24 218.10 (7w) “Proprietary part” means any part manufactured by or for and sold exclusively by the manufacturer.