1999 Wisconsin Act 31

Note: The stricken definitions are recreated by this bill as s. 218.0116 (1) (i) 1. for proper location according to current style.

31,141 Section 141. 218.01 (3) (a) 18. of the statutes is renumbered 218.0116 (1) (im) 2. and amended to read:

218.0116 (1) (im) 2. Having accepted an order or contract of purchase from a buyer or a consumer lease or prelease agreement from a lessee or prospective lessee if such the arrangement results in the practice of bushing. For the purpose of this section, "bushing" means, with respect to an order or contract of purchase, the practice of increasing the selling price of a motor vehicle above that originally quoted the purchaser as evidenced by a purchase order or contract which has been signed by both the purchaser and dealer licensee and, with respect to a consumer lease or prelease agreement, the practice of increasing the gross capitalized cost above that originally quoted the lessee or prospective lessee as evidenced by a consumer lease or prelease agreement which has been signed by both the lessee or prospective lessee and the dealer licensee.

Note: The stricken definition is recreated by this bill as s. 218.0116 (1) (im) 1. by this bill for proper location according to current style.

31,142 Section 142. 218.01 (3) (a) 19. of the statutes is renumbered 218.0116 (1) (j).

31,143 Section 143. 218.01 (3) (a) 20. of the statutes is renumbered 218.0116 (1) (jm) and amended to read:

218.0116 (1) (jm) Having set up, promoted or aided in the promotion of a plan by which motor vehicles are sold or leased to a person for a consideration and upon the further consideration that the purchaser or lessee agrees to secure one or more persons to participate in the plan by respectively making a similar purchase or lease and in turn agreeing to secure one or more persons likewise to join in said the plan, each purchaser or lessee being given the right to secure money, credits, goods or something of value, depending upon the number of persons joining in the plan.

31,144 Section 144. 218.01 (3) (a) 21. of the statutes is renumbered 218.0116 (1) (k) and amended to read:

218.0116 (1) (k) Being a dealer who keeps open the dealer's place of business on Sunday for the purpose of buying, leasing or selling motor vehicles; but nothing in this subdivision paragraph shall apply to any person who conscientiously believes that the 7th day of the week, from sunset Friday to sunset Saturday, should be observed as the Sabbath and who actually refrains from conducting or engaging in the business of buying, leasing, selling or offering for lease or sale motor vehicles, or performing other secular business on that day.

31,145 Section 145. 218.01 (3) (a) 22. of the statutes is renumbered 218.0116 (1) (km) and amended to read:

218.0116 (1) (km) Being a manufacturer, importer or distributor who violates sub. (2c), (2d), (2f), (2g) or (2w) s. 218.0121, 218.0122, 218.0123, 218.0124 or 218.0125.

31,146 Section 146. 218.01 (3) (a) 23. of the statutes is renumbered 218.0116 (1) (L) and amended to read:

218.0116 (1) (L) Being a motor vehicle dealer who, in breach of an agreement, voluntarily changes its ownership or executive management, transfers its dealership assets to another person, adds another franchise at the same location as its existing franchise, or relocates a franchise without first complying with the procedures in sub. (3x) s. 218.0134.

31,147 Section 147. 218.01 (3) (a) 24. of the statutes is renumbered 218.0116 (1) (Lm) and amended to read:

218.0116 (1) (Lm) Being a manufacturer, importer or distributor who fails to comply with the procedures in sub. (3x) s. 218.0134 regarding a dealer's request for approval of a change of ownership or executive management, transfer of its dealership assets to another person, adding another franchise at the same location as its existing franchise, or relocation of a franchise or who fails to comply with an order of the division of hearings and appeals issued under sub. (3x) s. 218.0134.

31,148 Section 148. 218.01 (3) (a) 25. of the statutes is renumbered 218.0116 (1) (m).

31,149 Section 149. 218.01 (3) (a) 26. of the statutes is renumbered 218.0116 (1) (mm) and amended to read:

218.0116 (1) (mm) Being a manufacturer, factory branch, distributor, field representative, officer, agent or any representative of such a manufacturer, factory branch or distributor who, notwithstanding the terms of any agreement, refuses to honor the succession to the ownership or operation of a dealership under an existing franchise agreement by a designated family member of a deceased or incapacitated dealer, except in the manner prescribed by sub. (3c) s. 218.0131, or who unreasonably withholds its approval of a change of ownership or executive management of the dealership after the dealer's death or incapacity.

31,150 Section 150. 218.01 (3) (a) 27. of the statutes is renumbered 218.0116 (1) (n).

31,151 Section 151. 218.01 (3) (a) 28. of the statutes is renumbered 218.0116 (1) (nm) and amended to read:

218.0116 (1) (nm) Wilful failure to provide and maintain facilities and business records as required by this section ss. 218.0101 to 218.0163 or by any rule promulgated by the licensor pertaining to facility and business records.

31,152 Section 152. 218.01 (3) (a) 29. of the statutes is renumbered 218.0116 (1) (o).

31,153 Section 153. 218.01 (3) (a) 30. of the statutes is renumbered 218.0116 (1) (om).

31,154 Section 154. 218.01 (3) (a) 31. of the statutes is renumbered 218.0116 (1) (p) and amended to read:

218.0116 (1) (p) Having violated an order issued under par. (h) sub. (10).

31,155 Section 155. 218.01 (3) (a) 32. of the statutes is renumbered 218.0116 (1) (pm) and amended to read:

218.0116 (1) (pm) Being a manufacturer, factory branch or distributor who enters into a franchise agreement establishing or relocating a motor vehicle dealership, parts outlet or service outlet in a relevant market area without first complying with the procedure in par. (f) 1. sub. (7) (a).

31,156 Section 156. 218.01 (3) (a) 35. of the statutes is renumbered 218.0116 (1) (q) and amended to read:

218.0116 (1) (q) Being a manufacturer, factory branch or distributor who engages in any action which transfers to a motor vehicle dealer any responsibility of the manufacturer, factory branch or distributor under s. 218.015 218.0171.

31,157 Section 157. 218.01 (3) (a) 36. (intro.) of the statutes is renumbered 218.0116 (1) (qm) (intro.).

31,158 Section 158. 218.01 (3) (a) 36. a. of the statutes is renumbered 218.0116 (1) (qm) 1. and amended to read:

218.0116 (1) (qm) 1. Fails to notify the department of transportation of any revision or addition to an agreement as required under sub. (2) (bd) 1. s. 218.0114 (7) (a) 2.

31,159 Section 159. 218.01 (3) (a) 36. b. of the statutes is renumbered 218.0116 (1) (qm) 2. and amended to read:

218.0116 (1) (qm) 2. 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) s. 218.0114 (9).

31,160 Section 160. 218.01 (3) (a) 36. c. of the statutes is renumbered 218.0116 (1) (qm) 3. and amended to read:

218.0116 (1) (qm) 3. Requires or coerces a dealer or distributor to execute sign an agreement, as a condition of obtaining or continuing a franchise, that contains provisions that are void or prohibited under sub. (2) (bm) s. 218.0114 (9) or attempts to enforce an agreement with void or prohibited provisions.

31,161 Section 161. 218.01 (3) (a) 36. d. of the statutes is renumbered 218.0116 (1) (qm) 4. (intro.) and amended to read:

218.0116 (1) (qm) 4. (intro.) Requires or coerces a dealer or distributor to execute sign an agreement that requires arbitration as a condition of obtaining or continuing a franchise, unless the dealer or distributor has the option of signing an otherwise identical agreement without the arbitration provision or unless the agreement provides for arbitration on a case-by-case basis and only when both parties elect to refer the matter to arbitration. This subd. 36. d. subdivision does not apply to a manufacturer or distributor who enters into an agreement that creates a new franchise for a new line make of motor vehicle, if the each of the following is applicable:

a. The arbitration provision was the subject of good faith negotiations with a representative group of dealers, and if each.

b. Each dealer voluntarily accepts the arbitration provision after receiving a franchise offering circular under s. 553.27 (4) that discloses the existence and effect of the arbitration provision, and if the.

c. The manufacturer or dealer files a copy of the franchise offering circular and proof of good faith negotiation and voluntary acceptance of the arbitration with any filing required under sub. (2) (bd) 1. s. 218.0114 (7) (a).

31,162 Section 162. 218.01 (3) (a) 37. of the statutes is renumbered 218.0116 (1) (r) and amended to read:

218.0116 (1) (r) Being a manufacturer, distributor or importer who fails to designate in writing the area of sales responsibility assigned to a motor vehicle dealer or who changes or attempts to change an area of sales responsibility to avoid the requirements of par. (f) sub. (7).

31,163 Section 163. 218.01 (3) (a) 38. of the statutes is renumbered 218.0116 (1) (rm) and amended to read:

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.

31,164 Section 164. 218.01 (3) (a) 39. of the statutes is renumbered 218.0116 (1) (s) and amended to read:

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).

31,165 Section 165. 218.01 (3) (a) 40. of the statutes is renumbered 218.0116 (1) (sm) and amended to read:

218.0116 (1) (sm) Having violated s. 218.017 218.0172.

31,166 Section 166. 218.01 (3) (a) 41. of the statutes is renumbered 218.0116 (1) (t) and amended to read:

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.

31,167 Section 167. 218.01 (3) (a) 42. of the statutes is renumbered 218.0116 (1) (tm) and amended to read:

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).

31,168 Section 168. 218.01 (3) (a) 43. of the statutes is renumbered 218.0116 (1) (u).

31,169 Section 169. 218.01 (3) (ag) of the statutes is renumbered 218.0116 (1g) and amended to read:

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.

(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.

(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.

31,170 Section 170. 218.01 (3) (am) of the statutes is renumbered 218.0116 (1m) and amended to read:

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:

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

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.

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.

(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.

(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.

31,171 Section 171. 218.01 (3) (b) of the statutes is renumbered 218.0116 (2) and amended to read:

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.

31,172 Section 172. 218.01 (3) (bf) of the statutes is renumbered 218.0116 (3) and amended to read:

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.

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

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.

(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.

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

31,173 Section 173. 218.01 (3) (c) of the statutes is renumbered
218.0116 (4) and amended to read:

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.

(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.

(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.

31,174 Section 174. 218.01 (3) (d) of the statutes is renumbered 218.0116 (5) and amended to read:

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.

31,175 Section 175. 218.01 (3) (e) of the statutes is renumbered 218.0116 (6) and amended to read:

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.

31,176 Section 176. 218.01 (3) (f) 1. of the statutes is renumbered 218.0116 (7) (a) 1. and amended to read:

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.

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.

31,177 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:

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.

31,178 Section 178. 218.01 (3) (f) 3. of the statutes is renumbered 218.0116 (7) (c).

31,179 Section 179. 218.01 (3) (f) 4. (intro.) of the statutes is renumbered 218.0116 (7) (d) (intro.) and amended to read: