AB150-ASA,1734,1614
217.19
(5) A complaint, notice of hearing, subpoena, special order or any other
15process issued by the
office division may be served in the same manner that process
16in a civil action is served.
AB150-ASA,1734,2118
217.19
(6) The
office division shall make its own rules of practice and procedure
19for the conduct of hearings and other proceedings before it, not inconsistent with any
20provision of this chapter or with any other provision of law governing such practice
21or procedure.
AB150-ASA,1734,24
23217.20 Court review. Orders of the
office division under this chapter shall
24be subject to review in the manner provided in ch. 227.
AB150-ASA,1735,4
1217.21
(1) The licensee shall keep and use in the licensee's business such books,
2accounts and records as the
office division, by general or special order, may find to
3be necessary and require to enable it to determine whether such licensee is
4complying with this chapter and with the lawful orders issued hereunder.
AB150-ASA,1735,126
217.21
(2) Each licensee shall annually, on or before March 15, file a report with
7the
office division giving such reasonable and relevant information as the
office 8division may, by general or special order, require concerning the business and
9operations conducted by such licensee within the state. Such report shall be made
10under oath and shall be in the form prescribed by the
office division and shall be
11subject to public inspection in the discretion of the
office division. The
office division 12shall make and publish annually an analysis and recapitulation of such reports.
AB150-ASA,1735,1816
218.01
(1) (jm) "License period" means the period during which a particular
17type of license described in sub. (2) (d) is effective, as established by the department
18of transportation or
commissioner
division of banking under sub. (2) (cm) 2
. or 4.
AB150-ASA,1735,2120
218.01
(1) (k) "Licensor" means the body, either the
commissioner division of
21banking or the department
of transportation or both, issuing a license hereunder.
AB150-ASA,1736,1223
218.01
(1a) (title)
Authority of department and commissioner licensors. The
24department
of transportation shall issue the licenses provided for in sub. (2) (d) 1.
25to 6. and have supervision over the licensees thereunder in respect to all the
1provisions of this section, except only as to such matters as relate to the sale of motor
2vehicles on retail instalment contracts and the financing and servicing of such
3contracts, over which matter the
commissioner division of banking shall have
4jurisdiction and control, and the
commissioner division of banking shall issue the
5licenses to sales finance companies. Either licensor hereunder shall, upon request,
6furnish the other licensor with any information it may have in respect to any licensee
7or applicant for license or any transaction in which such licensee or applicant may
8be a party or be interested. No license shall be issued under sub. (2) (d) 1. and 8. until
9both licensors have approved the application. The suspension or revocation of either
10of such licenses shall automatically likewise suspend or revoke the other license; and
11such suspension or revocation shall be certified by the licensor ordering it to the other
12licensor.
AB150-ASA,1737,314
218.01
(2) (b) Application for license shall be made to the licensor, at such time,
15in such form and with such information as the licensor shall require and shall be
16accompanied by the required
fee. fees. An applicant for a sales finance company
17license, other than a a motor vehicle dealer, shall pay to the commissioner a
18nonrefundable $300 investigation fee in addition to the license fee under par. (dr).
19If the cost of an investigation exceeds $300, the applicant shall, upon demand of the
20commissioner, pay the amount by which the cost of the investigation exceeds the
21nonrefundable fee. A licensee is not required to pay an investigation fee for the
22renewal of a license. The licensor may require the applicant to provide information
23relating to any pertinent matter that is commensurate with the safeguarding of the
24public interest in the locality in which the applicant proposes to engage in business,
25except that information relating to the applicant's solvency and financial standing
1may not be required except as provided in par. (h) 1. The information provided may
2be considered by the licensor in determining the fitness of the applicant to engage
3in business as set forth in this section.
AB150-ASA, s. 5843
4Section
5843
. 218.01 (2) (b) of the statutes, as affected by 1995 Wisconsin Act
5.... (this act), is amended to read:
AB150-ASA,1737,206
218.01
(2) (b) Application for license shall be made to the licensor, at such time,
7in such form and with such information as the licensor shall require and shall be
8accompanied by the required fees. An applicant for a sales finance company license,
9other than a a motor vehicle dealer, shall pay to the
commissioner division of banking 10a nonrefundable $300 investigation fee in addition to the license fee under par. (dr).
11If the cost of an investigation exceeds $300, the applicant shall, upon demand of the
12commissioner division of banking, pay the amount by which the cost of the
13investigation exceeds the nonrefundable fee. A licensee is not required to pay an
14investigation fee for the renewal of a license. The licensor may require the applicant
15to provide information relating to any pertinent matter that is commensurate with
16the safeguarding of the public interest in the locality in which the applicant proposes
17to engage in business, except that information relating to the applicant's solvency
18and financial standing may not be required except as provided in par. (h) 1. The
19information provided may be considered by the licensor in determining the fitness
20of the applicant to engage in business as set forth in this section.
AB150-ASA,1738,422
218.01
(2) (bb) A motor vehicle dealer or an applicant for a motor vehicle dealer
23license shall provide and maintain in force a bond or irrevocable letter of credit of not
24less than $25,000 or, if the dealer or applicant sells or proposes to sell motorcycles
25and not other types of motor vehicles, a bond or irrevocable letter of credit of not less
1than $5,000. The bond or letter of credit shall be executed in the name of the
2department
of transportation for the benefit of any person who sustains a loss
3because of an act of a motor vehicle dealer that constitutes grounds for the
4suspension or revocation of a license under this section.
AB150-ASA,1738,196
218.01
(2) (bc) Except as provided in this subsection every dealer and
7distributor of new motor vehicles shall, at the time of application for a license, file
8with the department
of transportation a certified copy of the applicant's written
9agreement and a certificate of appointment as dealer or distributor, respectively. The
10certificate of appointment shall be signed by an authorized agent of the
11manufacturer of domestic vehicles on direct manufacturer-dealer agreements; or,
12where the manufacturer is wholesaling through an appointed distributorship, by an
13authorized agent of the distributor on indirect distributor-dealer agreements. The
14certificate shall be signed by an authorized agent of the importer on direct
15importer-dealer agreements of foreign-made vehicles; or by an authorized agent of
16the distributor on indirect distributor-dealer agreements. The distributor's
17certificate of appointment shall be signed by an authorized agent of the
18manufacturer; or by an agent of the manufacturer or importer of foreign
19manufactured vehicles.
AB150-ASA,1739,1621
218.01
(2) (bd) 1. A written agreement need not be filed for each dealer or
22distributor if the manufacturer on direct dealerships or distributor on indirect
23dealerships or importer on direct dealerships utilizes the identical basic agreement
24for all its dealers or distributors in Wisconsin and certifies in the certificate of
25appointment that such blanket agreement is on file and such written agreement with
1such dealer or distributor, respectively, is identical with the filed blanket agreement,
2and has filed with the department
of transportation one such agreement together
3with a list of authorized dealers or distributors. Such manufacturer, distributor or
4importer shall notify the department
of transportation immediately of the
5appointment of any additional dealers or distributors, of any revisions of or additions
6to the basic agreement on file, or of any individual dealer or distributor supplements
7to such agreement. Except as provided in subd. 1g
., the manufacturer, distributor
8or importer shall notify the dealer or distributor and forward a copy of such notice
9to the department
of transportation of the discontinuation or cancellation of the
10agreement of any of its dealers or distributors at least 60 days before the effective
11date thereof together with the specific grounds for discontinuation or cancellation of
12the agreement, if discontinued or canceled. Agreements and certificates of
13appointment are deemed to be continuing unless the manufacturer, distributor or
14importer has notified the department
of transportation of the discontinuation or
15cancellation of the agreement of any of its dealers or distributors, and annual
16renewal of certifications filed as provided in this subsection is not necessary.
AB150-ASA, s. 5847
17Section
5847. 218.01 (2) (bd) 1g. of the statutes is amended to read:
AB150-ASA,1740,218
218.01
(2) (bd) 1g. The manufacturer, distributor or importer shall send a
19notice of discontinuation or cancellation by certified mail, and forward a copy of the
20notice to the department
of transportation, not less than 20 days before the effective
21date of discontinuation or cancellation of the agreement, if the dealer or distributor
22fails to conduct its customary sales and service operations during its customary
23business hours for 7 consecutive business days unless the failure is caused by an act
24of God, by work stoppage or delays due to strikes or labor disputes or other reason
1beyond the dealer's or distributor's control or by an order of the department
of
2transportation or the office of the commissioner of transportation.
AB150-ASA,1740,134
218.01
(2) (bd) 2. Any dealer or distributor discontinued or canceled may, on
5or before the date on which the discontinuation or cancellation becomes effective, file
6with the department
of transportation and division of hearings and appeals and
7serve upon the respondent a complaint for a determination of unfair discontinuation
8or cancellation under sub. (3) (a) 17. Allowing opportunity for an answer, the division
9of hearings and appeals shall thereafter schedule a hearing on and decide the matter.
10Agreements and certificates of appointment shall continue in effect until final
11determination of the issues raised in such complaint. If the complainant prevails he
12or she shall have a cause of action against the defendant for reasonable expenses and
13attorney fees incurred by him or her in such matter.
AB150-ASA,1740,1815
218.01
(2) (bf) Within 60 days after the department
of transportation issues a
16declaratory ruling under s. 227.41 that an agreement is inconsistent with par. (bm),
17a manufacturer, distributor or importer shall remove or revise any provision of the
18agreement declared to be inconsistent with par. (bm).
AB150-ASA, s. 5850
19Section
5850. 218.01 (2) (bm) 1. a. of the statutes is amended to read:
AB150-ASA,1740,2320
218.01
(2) (bm) 1. a. Waive a remedy or defense available to a distributor or
21dealer or other provision protecting the interests of a distributor or dealer under this
22section or under rules promulgated by the department
of transportation under this
23section.
AB150-ASA, s. 5851
24Section
5851. 218.01 (2) (bm) 2. b. of the statutes is amended to read:
AB150-ASA,1741,3
1218.01
(2) (bm) 2. b. No finding of an arbitrator is binding upon any person who
2is not a party to the agreement. A finding of an arbitrator does not bind the
3department
of transportation with respect to enforcement of this section.
AB150-ASA,1741,65
218.01
(2) (cm) 2. The department
of transportation shall promulgate rules
6establishing the license period for each type of license described in par. (d) 1. to 6.
AB150-ASA,1741,108
218.01
(2) (cm) 3. The department
of transportation may promulgate rules
9establishing expiration dates for the various types of licenses described in par. (d) 1.
10to 6.
AB150-ASA,1741,1312
218.01
(2) (cm) 4. The
commissioner
division of banking shall promulgate rules
13establishing the license period for the license described in par. (d) 8.
AB150-ASA,1741,1615
218.01
(2) (cm) 5. The
commissioner
division of banking may promulgate rules
16establishing expiration dates for licenses issued under par. (d) 8.
AB150-ASA,1741,2118
218.01
(2) (d) 1. For motor vehicle dealers, to the department
of transportation,
19$20 for each office or branch thereof, plus $1 for a supplemental license for each used
20motor vehicle lot within the same municipality, but not immediately adjacent to the
21office or to a branch.
AB150-ASA, s. 5857
22Section
5857. 218.01 (2) (d) 8. a. of the statutes is amended to read:
AB150-ASA,1741,2423
218.01
(2) (d) 8. a. Except as provided in subd. 8. b., for motor vehicle dealers,
24to the
commissioner division of banking, $10.
AB150-ASA, s. 5858
25Section
5858. 218.01 (2) (d) 8. b. of the statutes is amended to read:
AB150-ASA,1742,4
1218.01
(2) (d) 8. b. For motor vehicle dealers that operate as a sales finance
2company or that carry or retain time sales contracts for more than 30 days, to the
3commissioner division of banking, the same as for sales finance companies under par.
4(dr), except for gross volume of $100,000 or less, $50.
AB150-ASA,1742,96
218.01
(2) (dm) 1. If the department
of transportation or
commissioner division
7of banking establishes a license period that is not evenly divisible into years, the
8department
of transportation or
commissioner division of banking shall prorate the
9remainder when determining the license fee under par. (d).
AB150-ASA,1742,1611
218.01
(2) (dm) 2. If the department
of transportation or
commissioner division
12of banking grants a license described under par. (d) during the license period, the fee
13for the license shall equal the applicable dollar amount under par. (d) 1
. to 8
. 14multiplied by the number of calendar years, including parts of calendar years, during
15which the license remains in effect. A fee determined under this subdivision may not
16exceed the license fee for an entire license period under par. (d).
AB150-ASA,1743,218
218.01
(2) (dr) The fee for licenses for sales finance companies, except as
19provided in par. (d) 8., for each calendar year, or part of a calendar year, is based on
20the gross volume of purchases of retail sales contracts of motor vehicles sold in this
21state for the 12 months immediately preceding October 31 of the year in which the
22application
or for license is made, as follows: On a gross volume of
$25,000 or less,
23$25; on a gross volume of over $25,000 and not over $100,000
or less, $50;
and on each
24$100,000
or part thereof over $100,000
and up to $500,000, an additional $15
; and
25on each $100,000 over $500,000, an additional $10. No extra charge shall be made
1for branch licenses for sales finance companies. Gross volume shall be based on the
2unpaid balance of the retail contracts.
AB150-ASA,1743,174
218.01
(2) (h) 2. Provided the licensor has reasonable cause to doubt the
5financial responsibility of the applicant or licensee or the compliance by the
6applicant or licensee with this section, the licensor may require the applicant or
7licensee to furnish and maintain a bond in the form, amount and with the sureties
8it approves, but not less than $5,000, nor more than $100,000, conditioned upon the
9applicant or licensee complying with the statutes applicable to the licensee and as
10indemnity for any loss sustained by any person by reason of any acts of the licensee
11constituting grounds for suspension or revocation of the license under this section.
12The bonds shall be executed in the name of the department
of transportation for the
13benefit of any aggrieved parties; provided that the aggregate liability of the surety
14to all such parties shall, in no event, exceed the amount of the bond. The bonding
15requirements in this subdivision shall not apply to manufacturers, factory branches,
16and their agents and is in addition to the bond or letter of credit required of a motor
17vehicle dealer under par. (bb).
AB150-ASA,1744,619
218.01
(2) (i) Application for dealers' licenses shall be submitted to the
20department
of transportation in duplicate and shall contain such information as the
21licensors require. Application for sales finance company licenses shall contain such
22information as the
commissioner division of banking requires. No motor vehicle
23dealer or sales finance company, unless so licensed, shall be permitted to register or
24receive or use registration plates under ss. 341.47 to 341.57. The department
of
25transportation shall transmit the duplicate copy of each application for a dealer's
1license to the
commissioner division of banking with the fee required under par. (d)
28. The
commissioner division of banking may not refund the fee required under par.
3(d) 8. The
commissioner division of banking shall approve a sales finance company
4license for a dealer if no prior sales finance company license has been suspended or
5revoked, and if the applicant meets the requirements of this section relating to sales
6finance companies.
AB150-ASA, s. 5864
7Section
5864. 218.01 (2) (k) (intro.) of the statutes is amended to read:
AB150-ASA,1744,178
218.01
(2) (k) (intro.) After the receipt of an application in due form, properly
9verified and certified, and upon the payment of the $5 examination fee, the secretary,
10deputy secretary or any salaried employe of the department
of transportation 11designated by the secretary shall, within a reasonable time and in a place reasonably
12accessible to the applicant for a license, subject each first-time applicant for license
13and, if the secretary deems necessary, any applicant for renewal of license to a
14personal written examination as to competency to act as a motor vehicle salesperson.
15The secretary shall issue to an applicant a resident or nonresident motor vehicle
16salesperson's license if the application and examination show that the applicant
17meets all of the following requirements:
AB150-ASA,1744,2319
218.01
(2a) (a) Before changing the location of a place of business or opening
20a new place of business in a municipality in which authorized to do business, a
21licensed dealer, distributor, or manufacturer shall apply to the department
of
22transportation for an amended license. The department
of transportation shall issue
23such license without charge.
AB150-ASA,1745,3
1218.01
(2a) (b) Whenever a licensed dealer, distributor, manufacturer or
2transporter opens a new place of business, the licensee shall promptly report such
3fact, including the address thereof, to the department
of transportation.
AB150-ASA,1745,115
218.01
(2a) (c) Whenever a licensed dealer, distributor or manufacturer
6discontinues or disposes of his or her business, such person shall promptly report
7such fact to the department
of transportation and return the license and registration
8plates issued. Whenever a licensed dealer, distributor or manufacturer discontinues
9business due to license suspension or revocation, such person shall surrender the
10licenses and registration plates to the department
of transportation for such
11suspension or revocation period.
AB150-ASA,1746,613
218.01
(2w) (b) A manufacturer, importer or distributor shall, for the
14protection of the buying public, specify the delivery and preparation obligations of
15its dealers before delivery of new motor vehicles to retail buyers. A copy of the
16delivery and preparation obligations of its dealers shall be filed with the department
17of transportation by every licensed motor vehicle manufacturer, importer or
18distributor and shall constitute the dealer's only responsibility for product liability
19as between the dealer and the manufacturer, importer or distributor. Any
20mechanical, body or parts defects arising from any express or implied warranties of
21the manufacturer, importer or distributor shall constitute the manufacturer's,
22importer's or distributor's product or warranty liability. The manufacturer, importer
23or distributor shall reasonably compensate any authorized dealer who performs
24work to rectify the manufacturer's, importer's or distributor's product or warranty
25defects or delivery and preparation obligations or who performs any other work
1required, requested or approved by the manufacturer, importer or distributor or for
2which the manufacturer, importer or distributor has agreed to pay, including
3compensation for labor at a labor rate equal to the effective labor rate charged all
4customers and for parts at an amount not less than the amount the dealer charges
5its other retail service customers for parts used in performing similar work by the
6dealer.
AB150-ASA,1746,258
218.01
(3) (a) 17. Subject to sub. (3n), being a manufacturer, importer or
9distributor who has unfairly, without due regard to the equities or without just
10provocation, directly or indirectly canceled or failed to renew the franchise of any
11motor vehicle dealer; or being a manufacturer or importer, who has unfairly, without
12due regard to the equities or without just provocation, directly or indirectly canceled
13or failed to renew the franchise of any distributor. If there is a change in a
14manufacturer, importer or distributor, a motor vehicle dealer's franchise granted by
15the former manufacturer, importer or distributor shall continue in full force and
16operation under the new manufacturer, importer or distributor unless a mutual
17agreement of cancellation is filed with the department
of transportation between the
18new manufacturer, importer or distributor and the dealer. In this subdivision, "due
19regard to the equities" means treatment in enforcing an agreement that is fair and
20equitable to a motor vehicle dealer or distributor and that is not discriminatory
21compared to similarly situated dealers or distributors; and "just provocation" means
22a material breach by a motor vehicle dealer or distributor, due to matters within the
23dealer's or distributor's control, of a reasonable and necessary provision of an
24agreement and the breach is not cured within a reasonable time after written notice
25of the breach has been received from the manufacturer, importer or distributor.
AB150-ASA, s. 5870
1Section
5870. 218.01 (3) (a) 36. a. of the statutes is amended to read:
AB150-ASA,1747,32
218.01
(3) (a) 36. a. Fails to notify the department
of transportation of any
3revision or addition to an agreement as required under sub. (2) (bd) 1.
AB150-ASA, s. 5871
4Section
5871. 218.01 (3) (a) 36. b. of the statutes is amended to read:
AB150-ASA,1747,75
218.01
(3) (a) 36. b. Fails to revise or remove portions of an agreement that the
6department
of transportation declares to contain provisions which are inconsistent
7with sub. (2) (bm).
AB150-ASA,1747,179
218.01
(3) (bf) 1. The department
of transportation shall not license as a dealer
10an applicant for the sale of motor vehicles at retail unless such applicant owns or
11leases a vehicle display lot and a permanent building wherein there are facilities to
12display automobiles and motorcycles and facilities to repair functional and
13nonfunctional parts of motor vehicles and where replacement parts, repair tools and
14equipment to service motor vehicles are kept, and at which place of business shall
15be kept and maintained the books, records and files necessary to conduct the
16business. A residence, tent or temporary stand is not a sufficiently permanent place
17of business within the meaning of this paragraph.
AB150-ASA,1747,2519
218.01
(3) (c) 3. Matters involving suspensions or revocations brought before
20the department
of transportation shall be heard and decided upon by the division of
21hearings and appeals. If the department
of transportation requests the division of
22hearings and appeals to hear a matter brought before the department
of
23transportation under subd. 2., the division of hearings and appeals shall hear and
24decide the matter within 30 days after the date of the
department's department of
25transportation's request.
AB150-ASA,1748,212
218.01
(3) (f) 1. A manufacturer, importer or distributor who seeks to enter into
3a franchise agreement establishing or relocating a motor vehicle dealership, parts
4outlet or service outlet within the relevant market area of an existing enfranchised
5dealer of the line make of motor vehicle shall first notify in writing the department
6of transportation and each such existing enfranchised dealer of its intention to
7establish or relocate a dealership or outlet. Within 30 days of receiving the notice or
8within 30 days after the end of any appeal procedure provided by the manufacturer,
9importer or distributor, whichever is later, any existing enfranchised dealer of the
10same line make to whom the manufacturer, importer or distributor is required to give
11notice under this subdivision may file with the department
of transportation and the
12division of hearings and appeals a complaint protesting the proposed establishment
13or relocation of the dealership or outlet within the relevant market area of the
14existing enfranchised dealer. If a complaint is filed, the department
of
15transportation shall inform the manufacturer, importer or distributor that a timely
16complaint has been filed, that a hearing is required, and that the proposed franchise
17agreement may not be entered into until the division of hearings and appeals has
18held a hearing, nor thereafter, if the division of hearings and appeals determines that
19there is good cause for not permitting the proposed establishment or relocation of the
20dealership or outlet. In the event of multiple complaints, hearings shall be
21consolidated to expedite the disposition of the issue.
AB150-ASA,1749,1023
218.01
(3) (fm) 1. A manufacturer or distributor may not modify a motor vehicle
24dealer agreement during the term of the agreement or upon its renewal if the
25modification substantially and adversely affects the motor vehicle dealer's rights,
1obligations, investment or return on investment without giving 60 days written
2notice of the proposed modification to the motor vehicle dealer unless the
3modification is required by law, court order or the licensor. Within the 60-day notice
4period the motor vehicle dealer may file with the department
of transportation and
5the division of hearings and appeals and serve upon the respondent a complaint for
6a determination of whether there is good cause for permitting the proposed
7modification. The division of hearings and appeals shall promptly schedule a
8hearing and decide the matter. Multiple complaints pertaining to the same proposed
9modification shall be consolidated for hearing. The proposed modification may not
10take effect pending the determination of the matter.
AB150-ASA,1749,1512
218.01
(3) (g) Any person in interest aggrieved by a decision of the division of
13hearings and appeals may have a review thereof as provided in ch. 227 or aggrieved
14by an order of the
commissioner division of banking may have a review thereof as
15provided in s. 220.037.