1999 Wisconsin Act 31

31,187 Section 187. 218.01 (3) (h) of the statutes is renumbered 218.0116 (10) and amended to read:

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.

31,188 Section 188. 218.01 (3a) (title) of the statutes is renumbered 218.0117 (title).

31,189 Section 189. 218.01 (3a) (a) of the statutes is renumbered 218.0117 (1) and amended to read:

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.

31,190 Section 190. 218.01 (3a) (b) of the statutes is renumbered 218.0117 (2) and amended to read:

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.

31,191 Section 191. 218.01 (3a) (c) of the statutes is renumbered 218.0117 (3) and amended to read:

218.0117 (3) A dealer, distributor, manufacturer or transporter whose license has been revoked shall forthwith immediately surrender its registration plates to a traffic officer or peace officer designated by the department of transportation.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.

31,192 Section 192. 218.01 (3a) (d) of the statutes is renumbered 218.0117 (4).

31,193 Section 193. 218.01 (3c) (title) of the statutes is renumbered 218.0131 (title).

31,194 Section 194. 218.01 (3c) (b) of the statutes is renumbered 218.0131 (1) and amended to read:

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.

31,195 Section 195. 218.01 (3c) (c) of the statutes is renumbered 218.0131 (2) and amended to read:

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.

31,196 Section 196. 218.01 (3c) (d) of the statutes is renumbered 218.0131 (3) (a) and amended to read:

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.

(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.

(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.

31,197 Section 197. 218.01 (3c) (e) of the statutes is renumbered 218.0131 (4) and amended to read:

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.

31,198 Section 198. 218.01 (3n) (title) of the statutes is renumbered 218.0132 (title).

31,199 Section 199. 218.01 (3n) (a) of the statutes is renumbered 218.0132 (1) (a) and amended to read:

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.

(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.

31,200 Section 200. 218.01 (3n) (b) (intro.) of the statutes is renumbered 218.0132 (2) (intro.) and amended to read:

218.0132 (2) (intro.) The cancellation or nonrenewal of a franchise shall not be a violation of sub. (3) (a) 17. s. 218.0116 (1) (i) if all of the following requirements are met:

31,201 Section 201. 218.01 (3n) (b) 1. of the statutes is renumbered 218.0132 (2) (a).

31,202 Section 202. 218.01 (3n) (b) 2. of the statutes is renumbered 218.0132 (2) (b).

31,203 Section 203. 218.01 (3n) (b) 3. of the statutes is renumbered 218.0132 (2) (c) and amended to read:

218.0132 (2) (c) If the franchisee is a motor vehicle dealer, the dealer receives the termination benefits under sub. (3r) s. 218.0133.

31,204 Section 204. 218.01 (3n) (b) 4. (intro.) of the statutes is renumbered 218.0132 (2) (d) (intro.).

31,205 Section 205. 218.01 (3n) (b) 4. a. of the statutes is renumbered 218.0132 (2) (d) 1.

31,206 Section 206. 218.01 (3n) (b) 4. b. of the statutes is renumbered 218.0132 (2) (d) 2. and amended to read:

218.0132 (2) (d) 2. Compensates the dealer or distributor for the actual pecuniary loss caused by the franchise cancellation or nonrenewal. In determining the actual pecuniary loss, the value of any continued service or parts business available to the dealer or distributor for the line make covered by the franchise shall be considered. If the dealer or distributor and the manufacturer, importer or distributor cannot agree on the amount of compensation to be paid under this subd. 4. b. subdivision, either may file a declaratory judgment action in a court of competent jurisdiction.

31,207 Section 207. 218.01 (3n) (b) 4. c. of the statutes is renumbered 218.0132 (2) (d) 3. and amended to read:

218.0132 (2) (d) 3. Establishes, in a proceeding brought by the dealer or distributor alleging that the cancellation or nonrenewal violates sub. (3) (a) 17. s. 218.0116 (1) (i), that the continued distribution of the line make in the United States would cause it economic loss and that, after the effective date of the franchise cancellation or nonrenewal, neither the manufacturer, importer or distributor nor any owner, assignee or licensee of the trademarks or service marks used for the purpose of designating, making known or distinguishing the line make covered by the franchise will use the trademarks or service marks, either alone or in conjunction with other marks, in designating, making known or distinguishing any line make of motor vehicle sold or distributed in the United States.

31,208 Section 208. 218.01 (3n) (b) 4. d. of the statutes is renumbered 218.0132 (2) (d) 4. (intro.) and amended to read:

218.0132 (2) (d) 4. (intro.) If the franchise relates to a line make that is sold or distributed in less than 13 states of the United States, establishes, in a proceeding brought by the dealer or distributor alleging that the cancellation or nonrenewal violates sub. (3) (a) 17., that s. 218.0116 (1) (i) all of the following:

a. That the continued distribution of the line make in this state would cause it economic loss and that,.

b. That after the effective date of the franchise cancellation or nonrenewal, neither the manufacturer, importer or distributor nor any owner, assignee or licensee of the trademarks or service marks used for the purpose of designating, making known or distinguishing the line make covered by the franchise will use such those trademarks or service marks, either alone or in conjunction with other marks, in designating, making known or distinguishing any line make of motor vehicle sold or distributed in this state, except that, if the line make covered by the franchise has been first distributed in this state less than 2 years before the effective date of the cancellation or nonrenewal, such those trademarks and service marks may be used in this state after 6 years from the effective date of the cancellation or nonrenewal.

31,209 Section 209. 218.01 (3n) (b) 4. e. of the statutes is renumbered 218.0132 (2) (d) 5. (intro.) and amended to read:

218.0132 (2) (d) 5. (intro.) Establishes, in a proceeding brought by the dealer or distributor alleging that the cancellation or nonrenewal violates sub. (3) (a) 17., that s. 218.0116 (1) (i) all of the following:

a. That the continued distribution of the line make in this state is prohibited by law or by an order of a court or agency with jurisdiction to issue the order and that.

b. That the continued distribution of the line make in this state cannot be made to comply with the law or order through the reasonable efforts of the manufacturer, importer or distributor and that,.

c. That after the effective date of the franchise cancellation or nonrenewal, neither the manufacturer, importer or distributor nor any owner, assignee or licensee of the trademarks or service marks used for the purpose of designating, making known or distinguishing the line make covered by the franchise will use such those trademarks or service marks, either alone or in conjunction with other marks, in designating, making known or distinguishing any comparable line make of motor vehicle sold or distributed in this state.

31,210 Section 210. 218.01 (3r) (title) of the statutes is renumbered 218.0133 (title).

31,211 Section 211. 218.01 (3r) (a) (intro.) of the statutes is renumbered 218.0133 (1) (intro.) and amended to read:

218.0133 (1) (intro.) In this subsection section:

31,212 Section 212. 218.01 (3r) (a) 1. of the statutes is renumbered 218.0133 (1) (a).

31,213 Section 213. 218.01 (3r) (a) 2. of the statutes is renumbered 218.0133 (1) (b).

31,214 Section 214. 218.01 (3r) (b) 1. of the statutes is renumbered 218.0133 (2) (a) and amended to read:

218.0133 (2) (a) Except as provided in par. (e) sub. (5) and subject to par. (c) sub. (3), when a grantor or motor vehicle dealer terminates, cancels or does not renew an agreement a grantor shall pay a motor vehicle dealer all of the termination benefits under subds. 2. to 5. pars. (b) to (e).

31,215 Section 215. 218.01 (3r) (b) 2. of the statutes is renumbered 218.0133 (2) (b) 1. (intro.) and amended to read:

218.0133 (2) (b) 1. (intro.) A grantor shall repurchase from the motor vehicle dealer any unsold new motor vehicles vehicle that have meets all of the following criteria:

a. The motor vehicle has not been structurally modified by a motor vehicle dealer, that have.

b. The motor vehicle has not been operated more than 300 miles for manufacturer's tests, predelivery tests and motor vehicle dealer exchange in addition to operation required for motor vehicle delivery from the grantor and that the.

c. The motor vehicle dealer was acquired as part of the motor vehicle dealer's original inventory or acquired from the grantor or from another motor vehicle dealer of the same line make and who acquired the motor vehicle from the grantor. In addition, a

2. A grantor may not be required to repurchase a motor vehicle under this subdivision paragraph unless the date on the original dealer invoice is within 12 months of the date on which the motor vehicle dealer terminates, cancels or does not renew an agreement or is within 18 months of the date on which the grantor terminates, cancels or does not renew an agreement.

3. The repurchase price for a new motor vehicle shall be the motor vehicle invoice price from the grantor, plus destination, delivery or distribution charges and sales taxes incurred by the motor vehicle dealer, less allowances paid or credited to the motor vehicle dealer by the grantor. A grantor may subtract from a new motor vehicle repurchase price an amount equal to the diminution in wholesale value caused by damages to a new motor vehicle before the motor vehicle dealer delivers the new motor vehicle to the grantor.

31,216 Section 216. 218.01 (3r) (b) 3. of the statutes is renumbered 218.0133 (2) (c) 1. (intro.) and amended to read:

218.0133 (2) (c) 1. (intro.) A grantor shall repurchase from the motor vehicle dealer any unused, undamaged and unsold parts and accessories and unopened appearance and maintenance materials and paints that if those items meet all of the following criteria:

a. The items are in the motor vehicle dealer's inventory or subject to a noncancelable order to the grantor on the effective date of the termination, cancellation or nonrenewal, that and are in original packaging, or, if sheet metal or body panels, that are in a comparable substitute for original packaging, and that the.

b. The items were acquired by the motor vehicle dealer acquired from the grantor or from its the motor vehicle dealer's predecessor motor vehicle dealer if and the parts, accessories and materials and paints items are listed for sale in the grantor's price schedules in effect on the effective date of the termination, cancellation or nonrenewal or, the items are part of the motor vehicle dealer's original inventory acquired from the grantor or are the items were acquired by the motor vehicle dealer from the grantor within 4 years before the effective date of the termination, cancellation or nonrenewal. However, a

2. A grantor may not be required to repurchase items that are not listed for sale in the grantor's price schedules in effect on the effective date of the termination, cancellation or nonrenewal if, within 2 years before the effective date of the termination, cancellation or nonrenewal, the grantor permitted a motor vehicle dealer to return obsolete parts and accessories, or a reasonable percentage of parts and accessories, for an amount that is equal to or greater than the price at which those items were listed for sale, less any allowances, at the time the return was permitted.

3. The repurchase price for parts, accessories and, materials and paints repurchased under subd. 1. shall be the price at which those items are listed for sale in the grantor's price schedules in effect on the effective date of the termination, cancellation or nonrenewal, or, if an item is not listed, the motor vehicle dealer's original invoice cost, plus destination, delivery or distribution charges, and sales taxes incurred by the motor vehicle dealer, less allowances paid or credited to the motor vehicle dealer by the grantor. If a motor vehicle dealer inventories, handles and packages repurchased items for delivery to the grantor, the grantor shall reimburse the motor vehicle dealer an additional amount equal to 2% of the repurchase price under this subdivision paragraph.

31,217 Section 217. 218.01 (3r) (b) 4. of the statutes is renumbered 218.0133 (2) (d).

31,218 Section 218. 218.01 (3r) (b) 5. of the statutes is renumbered 218.0133 (2) (e).

31,219 Section 219. 218.01 (3r) (c) of the statutes is renumbered 218.0133 (3) and amended to read:

218.0133 (3) (a) The grantor shall provide a list of the motor vehicles, parts, accessories, materials and paints, signs, tools, equipment and furnishings that the motor vehicle dealer is authorized to return to the grantor within 30 days after the grantor receives a written inventory of the property that the motor vehicle dealer intends to return or within 30 days after the effective date of the termination, cancellation or nonrenewal, whichever is later. Within 60 days after the property is actually returned by the motor vehicle dealer to the grantor, f.o.b. dealership facilities, the grantor shall pay the motor vehicle dealer the reimbursement amount under par. (b) 2. to 5. sub. (2) (b) to (e), except that the grantor may apply the reimbursement amount first to pay any amount owed by the motor vehicle dealer to the grantor.

(b) If a repurchase price under par. (b) sub. (2) depends on a purchase date or original cost or includes an associated cost, the motor vehicle dealer shall have the burden of proving by documentary evidence the purchase date, original cost or associated cost.

31,220 Section 220. 218.01 (3r) (d) 1. of the statutes is renumbered 218.0133 (4) (a) and amended to read:

218.0133 (4) (a) Except as provided in par. (e) sub. (5) and subject to subd. 4. par. (d), when a grantor terminates, cancels or does not renew an agreement a grantor shall, upon request, pay a motor vehicle dealer the termination benefits under subd. 2. or 3. par. (b) or (c). If a motor vehicle dealer receives benefits under subd. 2. or 3. par. (b) or (c), the grantor shall be entitled to the possession and use of the dealership facilities for the period that the termination benefits payment covers.

31,221 Section 221. 218.01 (3r) (d) 2. of the statutes is renumbered 218.0133 (4) (b).

31,222 Section 222. 218.01 (3r) (d) 3. of the statutes is renumbered 218.0133 (4) (c).

31,223 Section 223. 218.01 (3r) (d) 4. of the statutes is renumbered 218.0133 (4) (d) and amended to read:

218.0133 (4) (d) Subdivisions 2. and 3. Paragraphs (b) and (c) apply only to dealership facilities that are used in performing sales and service obligations under an agreement before the motor vehicle dealer receives notice of the termination, cancellation or nonrenewal of the agreement.

31,224 Section 224. 218.01 (3r) (e) 1. (intro.) of the statutes is renumbered 218.0133 (5) (a) (intro.) and amended to read:

218.0133 (5) (a) (intro.) Paragraphs (b) and (d) Subsections (2) and (4) do not apply to any of the following:

31,225 Section 225. 218.01 (3r) (e) 1. a. of the statutes is renumbered 218.0133 (5) (a) 1.

31,226 Section 226. 218.01 (3r) (e) 1. b. of the statutes is renumbered 218.0133 (5) (a) 2.

31,227 Section 227. 218.01 (3r) (e) 1. c. of the statutes is renumbered 218.0133 (5) (a) 3.

31,228 Section 228. 218.01 (3r) (e) 1. d. of the statutes is renumbered 218.0133 (5) (a) 4.

31,229 Section 229. 218.01 (3r) (e) 1. e. of the statutes is renumbered 218.0133 (5) (a) 5. and amended to read:

218.0133 (5) (a) 5. A motor vehicle dealer who terminates, cancels or fails to renew an agreement to sell motor homes, as defined in s. 340.01 (33m), unless a court, a licensor or the division of hearings and appeals determines that the grantor has not acted in good faith or has materially violated the agreement or a provision of this section ss. 218.0101 to 218.0163 and determines that the motor vehicle dealer has not acted in bad faith or has not violated the agreement or a provision of this section ss. 218.0101 to 218.0163.

31,230 Section 230. 218.01 (3r) (e) 1. f. of the statutes is renumbered 218.0133 (5) (a) 6.

31,231 Section 231. 218.01 (3r) (e) 2. of the statutes is renumbered 218.0133 (5) (b) and amended to read:

218.0133 (5) (b) Paragraph (b) Subsection (2) does not apply to a motor vehicle dealer who is unable to convey clear title to property under par. (b) 2. to 5. sub. (2) (b) to (e) on the date on which the grantor takes delivery of the property.