217.18 (3) No person shall refuse, neglect or fail to render any reports or answer required under this section at such time and in such manner as the office
division may prescribe. No person shall wilfully make any false entry or statement in any report or answer, nor shall wilfully fail to make full and true entries and statements in any report or answer required under authority of this chapter.
27,5828
Section 5828
. 217.19 (title) of the statutes is amended to read:
217.19 (title) Office
Division orders; rules of procedure.
27,5829
Section 5829
. 217.19 (1) of the statutes is amended to read:
217.19 (1) The office division, prior to the issuance of any general order under this chapter, shall hold a public hearing.
27,5830
Section 5830
. 217.19 (2) of the statutes is amended to read:
217.19 (2) The office division, prior to the issuance of any special order, shall serve a complaint, prepared in the name of the office division, upon the person against whom the complaint is made and shall accompany such complaint by notice of a public hearing to be held in the matter not sooner than 10 days after such service. The person against whom the complaint is made shall be entitled to be heard in person, or by agent or attorney, and shall have the benefit of subpoena process to compel the attendance of witnesses.
27,5831
Section 5831
. 217.19 (4) of the statutes is amended to read:
217.19 (4) The office division shall serve a copy of any special order upon the person against whom the order is issued and such an order shall be effective upon such service, unless otherwise indicated in the order.
27,5832
Section 5832
. 217.19 (5) of the statutes is amended to read:
217.19 (5) A complaint, notice of hearing, subpoena, special order or any other process issued by the office division may be served in the same manner that process in a civil action is served.
27,5833
Section 5833
. 217.19 (6) of the statutes is amended to read:
217.19 (6) The office division shall make its own rules of practice and procedure for the conduct of hearings and other proceedings before it, not inconsistent with any provision of this chapter or with any other provision of law governing such practice or procedure.
27,5834
Section 5834
. 217.20 of the statutes is amended to read:
217.20 Court review. Orders of the office division under this chapter shall be subject to review in the manner provided in ch. 227.
27,5835
Section 5835
. 217.21 (1) of the statutes is amended to read:
217.21 (1) The licensee shall keep and use in the licensee's business such books, accounts and records as the office division, by general or special order, may find to be necessary and require to enable it to determine whether such licensee is complying with this chapter and with the lawful orders issued hereunder.
27,5836
Section 5836
. 217.21 (2) of the statutes is amended to read:
217.21 (2) Each licensee shall annually, on or before March 15, file a report with the office division giving such reasonable and relevant information as the office division may, by general or special order, require concerning the business and operations conducted by such licensee within the state. Such report shall be made under oath and shall be in the form prescribed by the office
division and shall be subject to public inspection in the discretion of the office division. The
office division shall make and publish annually an analysis and recapitulation of such reports.
27,5837
Section 5837
. 218.01 (1) (c) of the statutes is repealed.
27,5838
Section 5838
. 218.01 (1) (d) of the statutes is repealed.
27,5839
Section 5839
. 218.01 (1) (jm) of the statutes is amended to read:
218.01 (1) (jm) “License period" means the period during which a particular type of license described in sub. (2) (d) is effective, as established by the department of transportation or commissioner division of banking under sub. (2) (cm) 2. or 4.
27,5840
Section 5840
. 218.01 (1) (k) of the statutes is amended to read:
218.01 (1) (k) “Licensor" means the body, either the commissioner division of banking or the department of transportation or both, issuing a license hereunder.
27,5841
Section 5841
. 218.01 (1a) of the statutes is amended to read:
218.01 (1a) (title) Authority of
department and commissioner licensors. The department of transportation shall issue the licenses provided for in sub. (2) (d) 1. to 6. and have supervision over the licensees thereunder in respect to all the provisions of this section, except only as to such matters as relate to the sale of motor vehicles on retail instalment contracts and the financing and servicing of such contracts, over which matter the commissioner division of banking shall have jurisdiction and control, and the commissioner division of banking shall issue the licenses to sales finance companies. Either licensor hereunder shall, upon request, furnish the other licensor with any information it may have in respect to any licensee or applicant for license or any transaction in which such licensee or applicant may be a party or be interested. No license shall be issued under sub. (2) (d) 1. and 8. until both licensors have approved the application. The suspension or revocation of either of such licenses shall automatically likewise suspend or revoke the other license; and such suspension or revocation shall be certified by the licensor ordering it to the other licensor.
27,5842
Section 5842
. 218.01 (2) (b) of the statutes is amended to read:
218.01 (2) (b) Application for license shall be made to the licensor, at such time, in such form and with such information as the licensor shall require and shall be accompanied by the required fee. fees. An applicant for a sales finance company license, other than a a motor vehicle dealer, shall pay to the commissioner a nonrefundable $300 investigation fee in addition to the license fee under par. (dr). If the cost of an investigation exceeds $300, the applicant shall, upon demand of the commissioner, 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 except as provided in par. (h) 1. 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.
27,5843
Section 5843
. 218.01 (2) (b) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:
218.01 (2) (b) Application for license shall be made to the licensor, at such time, in such form and with such information as the licensor shall require and shall be accompanied by the required fees. An applicant for a sales finance company license, other than a a motor vehicle dealer, shall pay to the commissioner division of banking a nonrefundable $300 investigation fee in addition to the license fee under par. (dr). If the cost of an investigation exceeds $300, the applicant shall, upon demand of the commissioner 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 except as provided in par. (h) 1. 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.
27,5844
Section 5844
. 218.01 (2) (bb) of the statutes is amended to read:
218.01 (2) (bb) 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.
27,5845
Section 5845
. 218.01 (2) (bc) of the statutes is amended to read:
218.01 (2) (bc) Except as provided in this subsection 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.
27,5846
Section 5846
. 218.01 (2) (bd) 1. of the statutes is amended to read:
218.01 (2) (bd) 1. A written agreement need not be filed for each dealer or distributor if the manufacturer on direct dealerships or distributor on 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 agreement is on file and such written agreement with such dealer or distributor, respectively, is identical with the filed blanket agreement, and has filed with the department of transportation one such agreement together with a list of authorized dealers or distributors. Such manufacturer, distributor or importer shall notify the department of transportation immediately of the appointment of any additional dealers or distributors, of any revisions of or additions to the basic agreement on file, or of any individual dealer or distributor supplements to such agreement. Except as provided in subd. 1g., the manufacturer, distributor or importer shall notify the dealer or distributor and forward a copy of such notice to the department of transportation of the discontinuation or cancellation of the agreement of any of its dealers or distributors at least 60 days before the effective date thereof together with the specific grounds for discontinuation or cancellation of the agreement, if discontinued or canceled. Agreements and certificates of appointment are deemed 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 is not necessary.
27,5847e
Section 5847e. 218.01 (2) (bd) 1g. of the statutes is amended to read:
218.01 (2) (bd) 1g. The manufacturer, distributor or importer shall send a notice of discontinuation or cancellation by certified mail, and forward a copy of the notice to the department of transportation, not less than 20 days before the effective date of discontinuation or cancellation of the agreement, if the dealer or distributor fails to conduct its customary sales and service operations during its customary business hours for 7 consecutive business days unless the failure is caused by an act of God, by work stoppage or delays due to strikes or labor disputes or other reason beyond the dealer's or distributor's control or by an order of the department of transportation or the office of the commissioner of transportation.
27,5848
Section 5848
. 218.01 (2) (bd) 2. of the statutes is amended to read:
218.01 (2) (bd) 2. 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 a complaint for a determination of unfair discontinuation or cancellation under sub. (3) (a) 17. Allowing opportunity for an answer, the division of hearings and appeals shall thereafter schedule a hearing on and decide the matter. Agreements and certificates of appointment shall continue in effect until final determination of the issues raised in such complaint. If the complainant prevails he or she shall have a cause of action against the defendant for reasonable expenses and attorney fees incurred by him or her in such matter.
27,5849
Section 5849
. 218.01 (2) (bf) of the statutes is amended to read:
218.01 (2) (bf) Within 60 days after the department of transportation issues a declaratory ruling under s. 227.41 that an agreement is inconsistent with par. (bm), a manufacturer, distributor or importer shall remove or revise any provision of the agreement declared to be inconsistent with par. (bm).
27,5850
Section 5850
. 218.01 (2) (bm) 1. a. of the statutes is amended to read:
218.01 (2) (bm) 1. a. 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 or under rules promulgated by the department of transportation under this section.
27,5851
Section 5851
. 218.01 (2) (bm) 2. b. of the statutes is amended to read:
218.01 (2) (bm) 2. b. 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.
27,5852
Section 5852
. 218.01 (2) (cm) 2. of the statutes is amended to read:
218.01 (2) (cm) 2. The department of transportation shall promulgate rules establishing the license period for each type of license described in par. (d) 1. to 6.
27,5853
Section 5853
. 218.01 (2) (cm) 3. of the statutes is amended to read:
218.01 (2) (cm) 3. The department of transportation may promulgate rules establishing expiration dates for the various types of licenses described in par. (d) 1. to 6.
27,5854
Section 5854
. 218.01 (2) (cm) 4. of the statutes is amended to read:
218.01 (2) (cm) 4. The commissioner division of banking shall promulgate rules establishing the license period for the license described in par. (d) 8.
27,5855
Section 5855
. 218.01 (2) (cm) 5. of the statutes is amended to read:
218.01 (2) (cm) 5. The commissioner division of banking may promulgate rules establishing expiration dates for licenses issued under par. (d) 8.
27,5856
Section 5856
. 218.01 (2) (d) 1. of the statutes is amended to read:
218.01 (2) (d) 1. For motor vehicle dealers, to the department of transportation, $20 for each office or branch thereof, 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.
27,5857
Section 5857
. 218.01 (2) (d) 8. a. of the statutes is amended to read:
218.01 (2) (d) 8. a. Except as provided in subd. 8. b., for motor vehicle dealers, to the commissioner
division of banking, $10.
27,5858
Section 5858
. 218.01 (2) (d) 8. b. of the statutes is amended to read:
218.01 (2) (d) 8. b. For motor vehicle dealers that operate as a sales finance company or that carry or retain time sales contracts for more than 30 days, to the commissioner division of banking, the same as for sales finance companies under par. (dr), except for gross volume of $100,000 or less, $50.
27,5859
Section 5859
. 218.01 (2) (dm) 1. of the statutes is amended to read:
218.01 (2) (dm) 1. If the department of transportation or commissioner division of banking establishes a license period that is not evenly divisible into years, the department of transportation or commissioner division of banking shall prorate the remainder when determining the license fee under par. (d).
27,5860
Section 5860
. 218.01 (2) (dm) 2. of the statutes is amended to read:
218.01 (2) (dm) 2. If the department of transportation or commissioner division of banking grants a license described under par. (d) during the license period, the fee for the license shall equal the applicable dollar amount under par. (d) 1. to 8. 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 may not exceed the license fee for an entire license period under par. (d).
27,5861
Section 5861
. 218.01 (2) (dr) of the statutes is amended to read:
218.01 (2) (dr) The fee for licenses for sales finance companies, except as provided in par. (d) 8., for each calendar year, or part of a calendar year, is based on the gross volume of purchases of retail sales contracts of motor vehicles sold in this state for the 12 months immediately preceding October 31 of the year in which the application or for license is made, as follows: On a gross volume of $25,000 or less, $25; on a gross volume of over $25,000 and not over $100,000 or less, $50; and on each $100,000 or part thereof over $100,000 and up to $500,000, an additional $15; and on each $100,000 over $500,000, an additional $10. No extra charge shall be made for branch licenses for sales finance companies. Gross volume shall be based on the unpaid balance of the retail contracts.
27,5862
Section 5862
. 218.01 (2) (h) 2. of the statutes is amended to read:
218.01 (2) (h) 2. Provided 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, 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. The bonds shall be executed in the name of the department of transportation for the benefit of any aggrieved parties; provided that the aggregate liability of the surety to all such parties shall, in no event, exceed the amount of the bond. The bonding requirements in this subdivision 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).
27,5863
Section 5863
. 218.01 (2) (i) of the statutes is amended to read:
218.01 (2) (i) 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 commissioner
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 commissioner division of banking with the fee required under par. (d) 8. The commissioner division of banking may not refund the fee required under par. (d) 8. The commissioner 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 relating to sales finance companies.
27,5864
Section 5864
. 218.01 (2) (k) (intro.) of the statutes is amended to read:
218.01 (2) (k) (intro.) After the receipt of an application in due form, properly verified and certified, and upon the payment of the $5 examination fee, the secretary, deputy secretary or any salaried employe of the department of transportation designated by the secretary shall, within a reasonable time and in a place reasonably accessible to the applicant for a license, subject each first-time applicant for license and, if the secretary deems necessary, any applicant for renewal of license to a personal written examination as to competency to act as a motor vehicle salesperson. The secretary shall issue to an applicant a resident or nonresident motor vehicle salesperson's license if the application and examination show that the applicant meets all of the following requirements:
27,5865
Section 5865
. 218.01 (2a) (a) of the statutes is amended to read:
218.01 (2a) (a) Before changing the location of a place of business or opening a new place of business in a municipality in which authorized to do business, a licensed dealer, distributor, or manufacturer shall apply to the department of transportation for an amended license. The department of transportation shall issue such license without charge.
27,5866
Section 5866
. 218.01 (2a) (b) of the statutes is amended to read:
218.01 (2a) (b) Whenever a licensed dealer, distributor, manufacturer or transporter opens a new place of business, the licensee shall promptly report such fact, including the address thereof, to the department of transportation.
27,5867
Section 5867
. 218.01 (2a) (c) of the statutes is amended to read:
218.01 (2a) (c) Whenever a licensed dealer, distributor or manufacturer discontinues or disposes of his or her business, such person shall promptly report such fact to the department of transportation and return the license and registration plates issued. Whenever a licensed dealer, distributor or manufacturer discontinues business due to license suspension or revocation, such person shall surrender the licenses and registration plates to the department of transportation for such suspension or revocation period.
27,5868
Section 5868
. 218.01 (2w) (b) of the statutes is amended to read:
218.01 (2w) (b) A manufacturer, importer or distributor shall, for the protection of the buying public, specify the delivery and preparation obligations of its dealers before delivery of new motor vehicles to retail buyers. A copy of the delivery and preparation obligations of its dealers shall be filed with the department of transportation by every licensed motor vehicle manufacturer, importer or distributor and shall constitute the dealer's only responsibility for product liability as between the dealer and the manufacturer, importer or distributor. Any mechanical, body or parts defects arising from any express or implied warranties of the manufacturer, importer or distributor shall constitute the manufacturer's, importer's or distributor's product or warranty liability. The manufacturer, importer or distributor shall reasonably compensate any authorized dealer who performs work to rectify the manufacturer's, importer's or distributor's product or warranty defects or delivery and preparation obligations or who performs any other work required, requested or approved by the manufacturer, importer or distributor or for which the manufacturer, importer or distributor has agreed to pay, including compensation for labor at a labor rate equal to the effective labor rate charged all customers and for parts at an amount not less than the amount the dealer charges its other retail service customers for parts used in performing similar work by the dealer.
27,5869
Section 5869
. 218.01 (3) (a) 17. of the statutes is amended to read:
218.01 (3) (a) 17. Subject to sub. (3n), being a manufacturer, importer or distributor who has unfairly, without due regard to the equities or without just provocation, directly or indirectly canceled or failed to renew the franchise of any motor vehicle dealer; or being a manufacturer or importer, who has unfairly, without due regard to the equities or without just provocation, directly or indirectly canceled or failed to renew the franchise of any distributor. If there is a change in a manufacturer, importer or distributor, a motor vehicle dealer's franchise granted by the former manufacturer, importer or distributor shall continue in full force and operation under the new manufacturer, importer or distributor unless a mutual agreement of cancellation is filed with the department of transportation between the new manufacturer, importer or distributor and the dealer. In this subdivision, “due regard to the equities" means treatment in enforcing an agreement that is fair and equitable to a motor vehicle dealer or distributor and that is not discriminatory compared to similarly situated dealers or distributors; and “just provocation" means a material breach by a motor vehicle dealer or distributor, due to matters within the dealer's or distributor's control, of a reasonable and necessary provision of an agreement and the breach is not cured within a reasonable time after written notice of the breach has been received from the manufacturer, importer or distributor.
27,5870
Section 5870
. 218.01 (3) (a) 36. a. of the statutes is amended to read:
218.01 (3) (a) 36. a. Fails to notify the department
of transportation of any revision or addition to an agreement as required under sub. (2) (bd) 1.
27,5871
Section 5871
. 218.01 (3) (a) 36. b. of the statutes is amended to read:
218.01 (3) (a) 36. b. Fails to revise or remove portions of an agreement that the department of transportation declares to contain provisions which are inconsistent with sub. (2) (bm).
27,5872
Section 5872
. 218.01 (3) (bf) 1. of the statutes is amended to read:
218.01 (3) (bf) 1. The department of transportation shall not license as a dealer an applicant for the sale of motor vehicles at retail unless such applicant owns or leases a vehicle display lot and a permanent building wherein there are facilities to display automobiles and motorcycles 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 business. A residence, tent or temporary stand is not a sufficiently permanent place of business within the meaning of this paragraph.
