AB969, s. 63 21Section 63. 218.01 (2) (bd) 1r. of the statutes is renumbered 218.0114 (7) (c),
22and 218.0114 (7) (c) (intro.), as renumbered, is amended to read:
AB969,25,2523 218.0114 (7) (c) (intro) The notice served upon a motor vehicle dealer under
24subds. 1. and 1g. pars. (a) 3. and (b) is not effective unless it conspicuously displays
25the following statement:
AB969, s. 64
1Section 64. 218.01 (2) (bd) 2. of the statutes is renumbered 218.0114 (7) (d) and
2amended to read:
AB969,26,143 218.0114 (7) (d) Any dealer or distributor discontinued or canceled may, on or
4before the date on which the discontinuation or cancellation becomes effective, file
5with the department of transportation and division of hearings and appeals and
6serve upon the respondent manufacturer, distributor or importer a complaint for a
7determination of unfair discontinuation or cancellation under sub. (3) (a) 17. s.
8218.0116 (1) (i).
Allowing opportunity for an answer, the The division of hearings and
9appeals shall thereafter schedule a hearing on and decide the matter after allowing
10the respondent an opportunity to answer
. Agreements and certificates of
11appointment shall continue in effect until final determination of the issues raised in
12such the complaint. If the complainant prevails he or she shall have a cause of action
13against the defendant respondent for reasonable expenses and attorney fees
14incurred by him or her in such the matter.
AB969, s. 65 15Section 65. 218.01 (2) (bd) 3. of the statutes is renumbered 218.0114 (2m) and
16amended to read:
AB969,26,2517 218.0114 (2m) No manufacturers', distributors' or importers' vehicles shall be
18sold in this state unless either the manufacturer on direct dealerships of domestic
19vehicles, the importer of foreign manufactured vehicles on direct dealerships or the
20distributor on indirect dealerships of either domestic or foreign vehicles are licensed
21under s. 218.01 ss. 218.0101 to 218.0163. The obtaining of a license under s. 218.01
22ss. 218.0101 to 218.0163 shall conclusively establish that such a manufacturer,
23distributor or importer is doing business in this state and shall subject the licensee
24to all provisions of the Wisconsin statutes regulating manufacturers, importers and
25distributors.
AB969, s. 66
1Section 66. 218.01 (2) (bf) of the statutes is renumbered 218.0114 (8) and
2amended to read:
AB969,27,63 218.0114 (8) Within 60 days after the department of transportation issues a
4declaratory ruling under s. 227.41 that an agreement is inconsistent with par. (bm)
5sub. (9), a manufacturer, distributor or importer shall remove or revise any provision
6of the agreement declared to be inconsistent with par. (bm) sub. (9).
AB969, s. 67 7Section 67. 218.01 (2) (bm) 1. (intro.) of the statutes is renumbered 218.0114
8(9) (a) (intro.) and amended to read:
AB969,27,109 218.0114 (9) (a) (intro.) Except as provided in par. (bo) sub. (10), provisions of
10an agreement which do any of the following are void and prohibited:
AB969, s. 68 11Section 68. 218.01 (2) (bm) 1. a. of the statutes is renumbered 218.0114 (9) (a)
121. and amended to read:
AB969,27,1613 218.0114 (9) (a) 1. Waive a remedy or defense available to a distributor or dealer
14or other provision protecting the interests of a distributor or dealer under this section
15ss. 218.0101 to 218.0163 or under rules promulgated by the department of
16transportation under this section ss. 218.0101 to 218.0163.
AB969, s. 69 17Section 69. 218.01 (2) (bm) 1. b. of the statutes is renumbered 218.0114 (9) (a)
182.
AB969, s. 70 19Section 70. 218.01 (2) (bm) 1. c. of the statutes is renumbered 218.0114 (9) (a)
203.
AB969, s. 71 21Section 71. 218.01 (2) (bm) 2. of the statutes is renumbered 218.0114 (9) (b)
22and amended to read:
AB969,28,323 218.0114 (9) (b) 1. Notwithstanding subd. 1. b. par. (a) 2. and subject to sub. (3)
24(a) 36. d.
s. 218.0116 (1) (qm) 4., an agreement may provide for the resolution of
25disputes by arbitration, including binding arbitration, if both parties to the

1agreement voluntarily agree to an arbitration provision. An arbitrator acting under
2this subd. 2. a. subdivision shall be bound by the laws of this state, including par. (bd)
32.
sub. (7) (d) and other provisions of this section ss. 218.0101 to 218.0163.
AB969,28,64 2. No finding of an arbitrator is binding upon any person who is not a party to
5the agreement. A finding of an arbitrator does not bind the department of
6transportation with respect to enforcement of this section ss. 218.0101 to 218.0163.
AB969, s. 72 7Section 72. 218.01 (2) (bm) 3. of the statutes is renumbered 218.0114 (9) (c)
8and amended to read:
AB969,28,119 218.0114 (9) (c) Notwithstanding subd. 1. b. par. (a) 2., an agreement may
10require a dealer or distributor to submit disputes to a nonbinding and reasonably
11prompt dispute resolution procedure before bringing an action in another forum.
AB969, s. 73 12Section 73. 218.01 (2) (bo) (intro.) of the statutes is renumbered 218.0114 (10)
13(intro.) and amended to read:
AB969,28,1514 218.0114 (10) (intro.) Paragraph (bm) Subsection (9) does not apply to any of
15the following:
AB969, s. 74 16Section 74. 218.01 (2) (bo) 1. of the statutes is renumbered 218.0114 (10) (a).
AB969, s. 75 17Section 75. 218.01 (2) (bo) 2. of the statutes is renumbered 218.0114 (10) (b)
18and amended to read:
AB969,28,2119 218.0114 (10) (b) An agreement, made after a dealer receives notice under sub.
20(3) (f) 1.
s. 218.0116 (7) (a), which waives the dealer's right to file a complaint
21protesting the establishment or relocation of a dealership proposed in the notice.
AB969, s. 76 22Section 76. 218.01 (2) (bs) of the statutes is renumbered 218.0114 (11) and
23amended to read:
AB969,29,224 218.0114 (11) A manufacturer, distributor or importer shall designate in
25writing the area of sales responsibility assigned to a motor vehicle dealer. A

1manufacturer, distributor or importer may not modify the area of sales responsibility
2to avoid the requirements of sub. (3) (f) s. 218.0116 (7).
AB969, s. 77 3Section 77. 218.01 (2) (c) 1. of the statutes is renumbered 218.0114 (12) (a) and
4amended to read:
AB969,29,75 218.0114 (12) (a) Except as provided in subd. 2. par. (b), all licenses shall be
6granted or refused within 60 days after the licensor receives the application for the
7license.
AB969, s. 78 8Section 78. 218.01 (2) (c) 2. a. of the statutes is renumbered 218.0114 (12) (b)
91.
AB969, s. 79 10Section 79. 218.01 (2) (c) 2. b. of the statutes is renumbered 218.0114 (12) (b)
112. and amended to read:
AB969,29,1512 218.0114 (12) (b) 2. In cases where a complaint has been filed under sub. (3)
13(f)
s. 218.0116 (7) protesting the proposed establishment or relocation of a dealership
14in a relevant market area, no license may be issued until the division of hearings and
15appeals has rendered a decision permitting the issuance of the license.
AB969, s. 80 16Section 80. 218.01 (2) (cm) of the statutes is renumbered 218.0114 (13) and
17amended to read:
AB969,29,1918 218.0114 (13) (a) Licenses described in par. (dr) sub. (16) expire on December
1931 of the calendar year for which the licenses are granted.
AB969,29,2120 (b) The department of transportation shall promulgate rules establishing the
21license period for each type of license described in par. (d) 1. to 6. sub. (14) (a) to (f).
AB969,29,2422 (c) The department of transportation may promulgate rules establishing
23expiration dates for the various types of licenses described in par. (d) 1. to 6. sub. (14)
24(a) to (f).
AB969,30,2
1(d) The division of banking shall promulgate rules establishing the license
2period for the license described in par. (d) 8. sub. (14) (g).
AB969,30,43 (e) The division of banking may promulgate rules establishing expiration dates
4for licenses issued under par. (d) 8. sub. (14) (g).
AB969, s. 81 5Section 81. 218.01 (2) (d) (intro.) of the statutes is renumbered 218.0114 (14)
6(intro.) and amended to read:
AB969,30,97 218.0114 (14) (intro.) Subject to par. (dm) sub. (15), the fee for licenses
8described in this paragraph subsection equals the number of years in a license period
9multiplied by whichever of the following applies:
AB969, s. 82 10Section 82. 218.01 (2) (d) 1. of the statutes is renumbered 218.0114 (14) (a) and
11amended to read:
AB969,30,1512 218.0114 (14) (a) For motor vehicle dealers, to the department of
13transportation, $20 for each office or branch thereof of the motor vehicle dealer, plus
14$1 for a supplemental license for each used motor vehicle lot within the same
15municipality, but not immediately adjacent to the office or to a branch.
AB969, s. 83 16Section 83. 218.01 (2) (d) 2. of the statutes is renumbered 218.0114 (14) (b).
AB969, s. 84 17Section 84. 218.01 (2) (d) 3. of the statutes is renumbered 218.0114 (14) (c).
AB969, s. 85 18Section 85. 218.01 (2) (d) 4. of the statutes is renumbered 218.0114 (14) (d) and
19amended to read:
AB969,30,2120 218.0114 (14) (d) Any person licensed under subd. 2. or 3. next preceding, par.
21(b) or (c)
may also operate as a motor vehicle dealer, without any additional fee.
AB969, s. 86 22Section 86. 218.01 (2) (d) 5. of the statutes is renumbered 218.0114 (14) (e).
AB969, s. 87 23Section 87. 218.01 (2) (d) 6. of the statutes is renumbered 218.0114 (14) (f).
AB969, s. 88 24Section 88. 218.01 (2) (d) 8. of the statutes is renumbered 218.0114 (14) (g) and
25amended to read:
AB969,31,2
1218.0114 (14) (g) 1. Except as provided in subd. 8. b. 2., for motor vehicle
2dealers, to the division of banking, $10.
AB969,31,63 2. For motor vehicle dealers that operate as a sales finance company or that
4carry or retain retail instalment contracts or consumer leases for more than 30 days,
5to the division of banking, the same as for sales finance companies under par. (dr)
6sub. (16).
AB969, s. 89 7Section 89. 218.01 (2) (dm) of the statutes is renumbered 218.0114 (15) and
8amended to read:
AB969,31,129 218.0114 (15) (a) If the department of transportation or division of banking
10establishes a license period that is not evenly divisible into years, the department of
11transportation or division of banking shall prorate the remainder when determining
12the license fee under par. (d) sub. (14).
AB969,31,1913 (b) If the department of transportation or division of banking grants a license
14described under par. (d) sub. (14) during the license period, the fee for the license
15shall equal the applicable dollar amount under par. (d) 1. to 8. sub. (14) (a) to (g)
16multiplied by the number of calendar years, including parts of calendar years, during
17which the license remains in effect. A fee determined under this subdivision
18paragraph may not exceed the license fee for an entire license period under par. (d)
19sub. (14).
AB969, s. 90 20Section 90. 218.01 (2) (dr) of the statutes, as affected by 1997 Wisconsin Act
2148
, is renumbered 218.0114 (16).
AB969, s. 91 22Section 91. 218.01 (2) (e) of the statutes is renumbered 218.0114 (17) and
23amended to read:
AB969,32,624 218.0114 (17) The licenses of dealers, manufacturers, factory branches,
25distributors, distributor branches and sales finance companies shall specify the

1location of the office or branch and must be conspicuously displayed there at that
2location
. In case such the location be of the office or branch is changed, the licensor
3shall indorse the change of location on the license, without charge, if it be the new
4location is
within the same municipality as the previous location. A change of
5location to another municipality shall require a new license, except for sales finance
6companies.
AB969, s. 92 7Section 92. 218.01 (2) (f) of the statutes is renumbered 218.0114 (18) and
8amended to read:
AB969,32,169 218.0114 (18) Every salesperson, factory representative or distributor
10representative shall carry his or her license when engaged in business, and display
11the license upon request. The license shall name his or her the licensee's employer,
12and in case of
. Upon leaving an employer, the salesperson licensee shall immediately
13surrender the license to his or her employer who shall mail the license to the licensor.
14If during the license period the individual licensee again is employed or acts as a
15salesperson, he or she shall make application for reissue of a salesperson's license.
16There shall be no fee in connection with such the subsequent applications.
AB969, s. 93 17Section 93. 218.01 (2) (g) of the statutes is renumbered 218.0114 (19).
AB969, s. 94 18Section 94. 218.01 (2) (h) 1. of the statutes is renumbered 218.0114 (20) (a) and
19amended to read:
AB969,32,2420 218.0114 (20) (a) If the licensor has reasonable cause to doubt the financial
21responsibility of the applicant or licensee or the compliance by the applicant or
22licensee with this section ss. 218.0101 to 218.0163, the licensor may require the
23applicant or licensee to furnish information relating to the applicant's or licensee's
24solvency and financial standing.
AB969, s. 95
1Section 95. 218.01 (2) (h) 2. of the statutes is renumbered 218.0114 (20) (b) and
2amended to read:
AB969,33,173 218.0114 (20) (b) Provided If the licensor has reasonable cause to doubt the
4financial responsibility of the applicant or licensee or the compliance by the
5applicant or licensee with this section ss. 218.0101 to 218.0163, the licensor may
6require the applicant or licensee to furnish and maintain a bond in the form, amount
7and with the sureties it approves, but not less than $5,000, nor more than $100,000,
8conditioned upon the applicant or licensee complying with the statutes applicable to
9the licensee and as indemnity for any loss sustained by any person by reason of any
10acts of the licensee constituting grounds for suspension or revocation of the license
11under this section ss. 218.0101 to 218.0163. The bonds shall be executed in the name
12of the department of transportation for the benefit of any aggrieved parties;
13provided
, except that the aggregate liability of the surety to all such aggrieved
14parties shall, in no event, exceed the amount of the bond. The bonding requirements
15in this subdivision paragraph 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) 1. sub. (5) (a).
AB969, s. 96 18Section 96. 218.01 (2) (h) 3. of the statutes is renumbered 218.0114 (20) (c) and
19amended to read:
AB969,34,420 218.0114 (20) (c) An applicant or licensee furnishing information under subd.
211.
par. (a) may designate the information as a trade secret, as defined in s. 134.90 (1)
22(c), or as confidential business information. The licensor shall notify the applicant
23or licensee providing the information 15 days before any information designated as
24a trade secret or as confidential business information is disclosed to the legislature,
25a state agency, as defined in s. 13.62 (2), a local governmental unit, as defined in s.

1605.01 (1), or any other person. The applicant or licensee furnishing the information
2may seek a court order limiting or prohibiting the disclosure. In such cases in which
3case
, the court shall weigh the need for confidentiality of the information against the
4public interest in the disclosure.
AB969, s. 97 5Section 97. 218.01 (2) (i) of the statutes is renumbered 218.0114 (21) and
6amended to read:
AB969,34,197 218.0114 (21) Application for dealers' licenses shall be submitted to the
8department of transportation in duplicate and shall contain such information as the
9licensors require. Application for sales finance company licenses shall contain such
10information as the division of banking requires. No motor vehicle dealer or sales
11finance company, unless so licensed, shall be permitted to register or receive or use
12registration plates under ss. 341.47 to 341.57. The department of transportation
13shall transmit the duplicate copy of each application for a dealer's license to the
14division of banking with the fee required under par. (d) 8. sub. (14) (g). The division
15of banking may not refund the fee required under par. (d) 8. sub. (14) (g). The division
16of banking shall approve a sales finance company license for a dealer if no prior sales
17finance company license has been suspended or revoked, and if the applicant meets
18the requirements of this section ss. 218.0101 to 218.0163 relating to sales finance
19companies.
AB969, s. 98 20Section 98. 218.01 (2) (j) of the statutes is renumbered 218.0114 (22) and
21amended to read:
AB969,34,2422 218.0114 (22) A motor vehicle dealer licensed in accordance with the provisions
23of this section ss. 218.0101 to 218.0163 shall make reports to the licensor at such
24intervals and showing such information as the licensor may require.
AB969, s. 99 25Section 99. 218.01 (2) (k) of the statutes is renumbered 218.0114 (23).
AB969, s. 100
1Section 100. 218.01 (2a) (title) of the statutes is renumbered 218.0119 (title).
AB969, s. 101 2Section 101. 218.01 (2a) (a) of the statutes is renumbered 218.0119 (1).
AB969, s. 102 3Section 102. 218.01 (2a) (b) of the statutes is renumbered 218.0119 (2) and
4amended to read:
AB969,35,85 218.0119 (2) Whenever a licensed dealer, distributor, manufacturer or
6transporter opens a new place of business, the licensee shall promptly report such
7that fact, including the address thereof of the new place of business, to the
8department of transportation.
AB969, s. 103 9Section 103. 218.01 (2a) (c) of the statutes is renumbered 218.0119 (3) and
10amended to read:
AB969,35,1811 218.0119 (3) Whenever a licensed dealer, distributor or manufacturer
12discontinues or disposes of his or her business, such person that dealer, distributor
13or manufacturer
shall promptly report such that fact to the department of
14transportation and return the license and registration plates issued. Whenever a
15licensed dealer, distributor or manufacturer discontinues business due to license
16suspension or revocation, such person that dealer, distributor or manufacturer shall
17surrender the licenses and registration plates to the department of transportation
18for such the suspension or revocation period.
AB969, s. 104 19Section 104. 218.01 (2a) (d) of the statutes is renumbered 218.0119 (4) and
20amended to read:
AB969,35,2321 218.0119 (4) Any dealer, distributor, manufacturer or transporter who fails to
22comply with the requirements of this subsection section may be fined not more than
23$200 or imprisoned for not more than 6 months or both.
AB969, s. 105 24Section 105. 218.01 (2c) of the statutes is renumbered 218.0121 and amended
25to read:
AB969,36,4
1218.0121 Factory stores. A manufacturer, importer or distributor, or a
2subsidiary thereof of a manufacturer, importer or distributor, shall not own, operate
3or control a motor vehicle dealership in this state. This subsection does not prohibit
4any of the following:
AB969,36,8 5(1) The ownership and operation by a manufacturer, importer or distributor,
6or a subsidiary thereof of a manufacturer, importer or distributor, of a dealership for
7a temporary period, not to exceed one year, during the transition from one owner or
8operator to another.
AB969,36,16 9(2) The ownership or control of a dealership by a manufacturer, importer or
10distributor, or a subsidiary thereof of a manufacturer, importer or distributor, if the
11dealership is being sold under a bona fide contract or purchase option to the operator
12of the dealership, or a contract exists under which the operator of the dealership can
13expect to acquire full ownership of or a controlling interest in the dealership, and
14after the transfer of ownership is completed the dealership will no longer be owned,
15operated or controlled by the manufacturer, importer or distributor, or a subsidiary
16thereof of the manufacturer, importer or distributor.
AB969,36,24 17(3) The ownership, operation or control of a dealership by a manufacturer,
18importer or distributor, or subsidiary thereof of a manufacturer, importer or
19distributor
, which does not meet the conditions under par. (a) or (b) sub. (1) or (2), if
20the division of hearings and appeals determines, after a hearing on the matter at the
21request of any party, that there is no prospective independent dealer available to own
22and operate the dealership in a manner consistent with the public interest and that
23meets the reasonable standard and uniformly applied qualifications of the
24manufacturer, importer or distributor.
AB969, s. 106
1Section 106. 218.01 (2d) of the statutes is renumbered 218.0122 and amended
2to read:
AB969,37,14 3218.0122 Damages to delivered vehicles. (1) A manufacturer, importer or
4distributor shall disclose in writing to a motor vehicle dealer, at or before delivery to
5the dealer, any damage and repair to a new motor vehicle occurring after the
6manufacturing process is complete but before delivery to the dealer, if the cost of the
7repair exceeds 6% of the manufacturer's suggested retail price, as measured by retail
8repair costs. Replacement of glass, tires, bumpers, fenders, moldings, audio
9equipment, instrument panels, hoods and deck lids with identical manufacturer's
10original equipment is not considered damage and repair under this paragraph
11subsection. If a manufacturer, importer or distributor fails to make a disclosure of
12damage and repair under this paragraph subsection, it shall be liable to the dealer
13for any liability imposed on the dealer for a failure on the part of the dealer to disclose
14that damage and repair.
AB969,38,2 15(2) If the cost of repairing damage to a new motor vehicle that occurs before
16delivery to the dealer's location exceeds 6% of the manufacturer's suggested retail
17price, as measured by retail repair costs, the dealer may reject or, if title has passed
18to the dealer, require the manufacturer, importer or distributor who delivered the
19vehicle to repurchase the vehicle within 10 business days after delivery, unless the
20damage occurred during shipment and the method of transportation, carrier or
21transporter of the motor vehicle was designated by the motor vehicle dealer. Upon
22repurchase, the manufacturer, importer or distributor shall be subrogated to all of
23the dealer's rights against the carrier or transporter of the motor vehicle regarding
24damage. The cost of repairing glass, tires, bumpers, moldings and audio equipment

1with identical manufacturer's original equipment shall not be included in
2determining the cost of repairing damage under this paragraph subsection.
AB969,38,4 3(3) This subsection section does not apply to motorcycles that are delivered in
4a crated, disassembled condition to the dealer or the dealer's agent.
AB969, s. 107 5Section 107. 218.01 (2f) of the statutes is renumbered 218.0123.
AB969, s. 108 6Section 108. 218.01 (2g) of the statutes is renumbered 218.0124.
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