AB969, s. 155 16Section 155. 218.01 (3) (a) 36. c. of the statutes is renumbered 218.0116 (1)
17(qm) 3. and amended to read:
AB969,48,2118 218.0116 (1) (qm) 3. Requires or coerces a dealer or distributor to execute sign
19an agreement, as a condition of obtaining or continuing a franchise, that contains
20provisions that are void or prohibited under sub. (2) (bm) s. 218.0114 (9) or attempts
21to enforce an agreement with void or prohibited provisions.
AB969, s. 156 22Section 156. 218.01 (3) (a) 36. d. of the statutes is renumbered 218.0116 (1)
23(qm) 4. (intro.) and amended to read:
AB969,49,724 218.0116 (1) (qm) 4. (intro.) Requires or coerces a dealer or distributor to
25execute sign an agreement that requires arbitration as a condition of obtaining or

1continuing a franchise, unless the dealer or distributor has the option of signing an
2otherwise identical agreement without the arbitration provision or unless the
3agreement provides for arbitration on a case-by-case basis and only when both
4parties elect to refer the matter to arbitration. This subd. 36. d. subdivision does not
5apply to a manufacturer or distributor who enters into an agreement that creates a
6new franchise for a new line make of motor vehicle, if the each of the following is
7applicable:
AB969,49,9 8a. The arbitration provision was the subject of good faith negotiations with a
9representative group of dealers, and if each.
AB969,49,12 10b. Each dealer voluntarily accepts the arbitration provision after receiving a
11franchise offering circular under s. 553.27 (4) that discloses the existence and effect
12of the arbitration provision, and if the.
AB969,49,15 13c. The manufacturer or dealer files a copy of the franchise offering circular and
14proof of good faith negotiation and voluntary acceptance of the arbitration with any
15filing required under sub. (2) (bd) 1. s. 218.0114 (7) (a).
AB969, s. 157 16Section 157. 218.01 (3) (a) 37. of the statutes is renumbered 218.0116 (1) (r)
17and amended to read:
AB969,49,2118 218.0116 (1) (r) Being a manufacturer, distributor or importer who fails to
19designate in writing the area of sales responsibility assigned to a motor vehicle
20dealer or who changes or attempts to change an area of sales responsibility to avoid
21the requirements of par. (f) sub. (7).
AB969, s. 158 22Section 158. 218.01 (3) (a) 38. of the statutes is renumbered 218.0116 (1) (rm)
23and amended to read:
AB969,50,3
1218.0116 (1) (rm) Being a grantor, as defined in sub. (3r) (a) 2. s. 218.0133 (1)
2(b)
, who fails to pay a motor vehicle dealer agreement termination benefits under
3sub. (3r) s. 218.0133.
AB969, s. 159 4Section 159. 218.01 (3) (a) 39. of the statutes is renumbered 218.0116 (1) (s)
5and amended to read:
AB969,50,86 218.0116 (1) (s) Being a manufacturer or distributor who modifies a motor
7vehicle dealer agreement during the term of the agreement or upon its renewal
8without complying with par. (fm) sub. (8).
AB969, s. 160 9Section 160. 218.01 (3) (a) 40. of the statutes is renumbered 218.0116 (1) (sm)
10and amended to read:
AB969,50,1111 218.0116 (1) (sm) Having violated s. 218.017 218.0172.
AB969, s. 161 12Section 161. 218.01 (3) (a) 41. of the statutes is renumbered 218.0116 (1) (t)
13and amended to read:
AB969,50,2114 218.0116 (1) (t) Being a manufacturer, importer or distributor who compels a
15dealer, through a financing subsidiary of the manufacturer, importer or distributor,
16to agree to unreasonable operating requirements or who directly or indirectly cancels
17or fails to renew a dealer's franchise, except as allowed under subs. (3) (a) 17. and (3n)
18par. (i) and s. 218.0132, through the actions of a financing subsidiary of the
19manufacturer, importer or distributor. This subdivision paragraph does not limit the
20right of a financing subsidiary to engage in business practices in accordance with the
21usages of the trade in which it is engaged.
AB969, s. 162 22Section 162. 218.01 (3) (a) 42. of the statutes is renumbered 218.0116 (1) (tm)
23and amended to read:
AB969,51,3
1218.0116 (1) (tm) Being a licensee who wilfully refuses or fails to participate
2in mediation pursuant to a demand for mediation served under sub. (7m) (a) s.
3218.0136 (1)
.
AB969, s. 163 4Section 163. 218.01 (3) (a) 43. of the statutes is renumbered 218.0116 (1) (u).
AB969, s. 164 5Section 164. 218.01 (3) (b) of the statutes is renumbered 218.0116 (2) and
6amended to read:
AB969,51,127 218.0116 (2) The licensor may without prior notice deny the application for a
8license within 60 days after receipt thereof of the application by written notice to the
9applicant, stating the grounds for such the denial. Within 30 days after such
10receiving the notice, the applicant may petition the division of hearings and appeals
11to conduct a hearing to review the denial, and a hearing shall be scheduled with
12reasonable promptness.
AB969, s. 165 13Section 165. 218.01 (3) (bf) of the statutes is renumbered 218.0116 (3) and
14amended to read:
AB969,51,2315 218.0116 (3) (a) 1. Except as provided in subd. 1. b. 2., the department of
16transportation shall not license an applicant as a dealer an applicant for the sale or
17lease of motor vehicles at retail unless such the applicant owns or leases a vehicle
18display lot and a permanent building wherein in which there are facilities to display
19motor vehicles and facilities to repair functional and nonfunctional parts of motor
20vehicles and, where replacement parts, repair tools and equipment to service motor
21vehicles are kept, and at which place of business shall be kept and maintained the
22books, records and files necessary to conduct the dealer's business shall be kept and
23maintained
.
AB969,51,25 241m. A residence, tent or temporary stand is not a sufficiently permanent place
25of business
building within the meaning of this paragraph subd. 1.
AB969,52,5
12. The requirements in subd. 1. a. that an applicant own or lease a vehicle
2display lot and that the permanent building owned or leased by the applicant contain
3facilities to display motor vehicles do not apply to persons who are engaged only in
4the leasing of motor vehicles and who do not maintain an inventory of motor vehicles
5offered for lease.
AB969,52,116 (b) An approved service contract with an established repair shop having the
7repair parts and repair facilities specified in subd. par. (a) 1. shall serve in lieu of the
8applicant's owning or leasing the applicant's own repair facilities if such the service
9connection is within a reasonable distance from the applicant's place of business and
10if such the service connection guarantees in writing the making of the repairs or
11replacements ordered by the dealer.
AB969,52,1312 (c) This paragraph subsection does not apply to persons who deal only in
13mopeds or motor bicycles.
AB969, s. 166 14Section 166. 218.01 (3) (c) of the statutes is renumbered 218.0116 (4) and
15amended to read:
AB969,52,2116 218.0116 (4) (a) No license may be suspended or revoked except after a hearing
17thereon on the possible suspension or revocation. Except as provided in subd. 2. par.
18(b)
, the licensor shall give the licensee at least 5 days' notice of the time and place of
19such the hearing, and the. The order suspending or revoking such the license shall
20not be effective until after 10 days' written notice thereof of the order to the licensee,
21after such the hearing under this paragraph has been had held.
AB969,53,222 (b) When in the licensor's opinion the best interest of the public or the trade
23demands it, for conduct or under circumstances specified in this section ss. 218.0101
24to 218.0163
or in rules promulgated by the licensor, the licensor may suspend a

1license upon not less than 24 hours' notice of hearing and with not less than 24 hours'
2notice of the suspension of the license.
AB969,53,93 (c) Matters involving suspensions or revocations brought before the
4department of transportation shall be heard and decided upon by the division of
5hearings and appeals. If the department of transportation requests the division of
6hearings and appeals to hear a matter brought before the department of
7transportation under subd. 2. par. (b), the division of hearings and appeals shall hear
8and decide the matter within 30 days after the date of the department of
9transportation's request.
AB969, s. 167 10Section 167. 218.01 (3) (d) of the statutes is renumbered 218.0116 (5) and
11amended to read:
AB969,53,1712 218.0116 (5) The licensor may inspect the pertinent books, records, letters and
13contracts of a licensee and shall determine the cost of an examination. The cost of
14an examination shall be paid by such the licensee so examined within 30 days after
15demand therefor for the examination by the licensor, and the. The licensor may
16maintain an action for the recovery of such the costs of the examination in any court
17of competent jurisdiction.
AB969, s. 168 18Section 168. 218.01 (3) (e) of the statutes is renumbered 218.0116 (6) and
19amended to read:
AB969,54,420 218.0116 (6) If a licensee is a firm, corporation or limited liability company, it
21shall be sufficient cause for the denial, suspension or revocation of a license that any
22officer, director, trustee or manager of the firm, corporation or limited liability
23company, or any member in case of a partnership, has been guilty of any act or
24omission which would be cause for refusing, suspending or revoking a license to such
25that party as an individual. Each licensee shall be responsible for the acts of any or

1all of his or her salespersons while acting as his or her agent, if the licensee approved
2of or had knowledge of the acts or other similar acts and after such approval
3approving of or obtaining knowledge of the acts retained the benefit, proceeds, profits
4or advantages accruing from the acts or otherwise ratified the acts.
AB969, s. 169 5Section 169. 218.01 (3) (f) 1. of the statutes is renumbered 218.0116 (7) (a) 1.
6and amended to read:
AB969,54,197 218.0116 (7) (a) 1. A manufacturer, importer or distributor who seeks to enter
8into a franchise agreement establishing or relocating a motor vehicle dealership,
9parts outlet or service outlet within the relevant market area of an existing
10enfranchised dealer of the line make of motor vehicle shall first notify, in writing, the
11department of transportation and each such that existing enfranchised dealer of its
12intention to establish or relocate a dealership or outlet. Within 30 days of receiving
13the notice or within 30 days after the end of any appeal procedure provided by the
14manufacturer, importer or distributor, whichever is later, any existing enfranchised
15dealer of the same line make to whom the manufacturer, importer or distributor is
16required to give
entitled to receive notice under this subdivision paragraph may file
17with the department of transportation and the division of hearings and appeals a
18complaint protesting the proposed establishment or relocation of the dealership or
19outlet within the relevant market area of the existing enfranchised dealer.
AB969,55,2 202. If a complaint is filed under subd. 1., the department of transportation shall
21inform the manufacturer, importer or distributor that a timely complaint has been
22filed, that a hearing is required, and that the proposed franchise agreement may not
23be entered into until the division of hearings and appeals has held a hearing, nor
24thereafter, if the division of hearings and appeals determines that there is good cause
25for not permitting the proposed establishment or relocation of the dealership or

1outlet. In the event of multiple complaints, hearings shall be consolidated to expedite
2the disposition of the issue.
AB969, s. 170 3Section 170. 218.01 (3) (f) 2. of the statutes is renumbered 218.0116 (7) (b), and
4218.0116 (7) (b) 8., as renumbered, is amended to read:
AB969,55,75 218.0116 (7) (b) 8. The effect the denial of such the proposed establishment or
6relocation would have on the license applicant, dealer or outlet operator who is
7seeking to establish or relocate a dealership or outlet.
AB969, s. 171 8Section 171. 218.01 (3) (f) 3. of the statutes is renumbered 218.0116 (7) (c).
AB969, s. 172 9Section 172. 218.01 (3) (f) 4. (intro.) of the statutes is renumbered 218.0116
10(7) (d) (intro.) and amended to read:
AB969,55,1111 218.0116 (7) (d) (intro.) For purposes of this paragraph subsection:
AB969, s. 173 12Section 173. 218.01 (3) (f) 4. a. of the statutes is renumbered 218.0116 (7) (d)
131h. and amended to read:
AB969,55,2114 218.0116 (7) (d) 1h. The reopening or replacement of a dealership or outlet that
15has been closed for less than 2 years, at the original location or within 2 miles of the
16original location by the closest highway route, is not the establishment of a motor
17vehicle dealership or outlet, unless the location is within 4 miles, by the closest
18highway route, of another franchised dealer of the same line make and is closer to
19that dealer than the closed dealership or outlet. In this subd. 4. a., "closed" means
20the effective date of the termination or expiration of the dealership's or outlet's
21license or franchise, whichever is earlier.
AB969,56,4 221m. The reopening or replacement of a dealership or outlet that has been closed
23for less than 2 years at a location other than the original location and other than a
24location within 2 miles of the original location by the closest highway route, but
25within the area of sales responsibility that had been assigned to the closed dealership

1or outlet by the manufacturer, importer or distributor is not the establishment of a
2motor vehicle dealership or outlet, unless the new location is within 6 miles, by the
3closest highway route, of another franchised dealer of the same line make and is
4closer to that dealer than the closed dealership or outlet.
AB969,56,8 51q. The reopening or replacement of a dealership or outlet that has been closed
6for 2 or more years or that is at a location outside of the area of sales responsibility
7that had been assigned to the closed dealership or outlet by the manufacturer,
8importer or distributor is the establishment of a dealership or outlet.
AB969, s. 174 9Section 174. 218.01 (3) (f) 4. b. of the statutes is renumbered 218.0116 (7) (d)
102.
AB969, s. 175 11Section 175. 218.01 (3) (f) 4. c. of the statutes is renumbered 218.0116 (7) (d)
123. and amended to read:
AB969,56,2413 218.0116 (7) (d) 3. The establishment or relocation of a service or parts outlet
14requires that notice be given under subd. 1. par. (a) to existing enfranchised dealers
15who are otherwise entitled to receive such notice under par. (a) and who are
16authorized to perform work to rectify product or warranty defects or delivery and
17preparation obligations on the same line make as the proposed service outlet or to
18use a trade name, trademark or service mark that is also proposed to be used by the
19proposed service or parts outlet, except that the establishment or relocation of a
20service or parts outlet that is owned and operated by a motor vehicle dealership
21enfranchised by the manufacturer, importer or distributor requires that notice be
22given only to existing dealers who are otherwise entitled to receive such notice under
23par. (a)
and who hold a franchise to sell the same line make as the dealership that
24will own and operate the proposed service or parts outlet.
AB969, s. 176
1Section 176. 218.01 (3) (f) 4. d. of the statutes is renumbered 218.0116 (7) (d)
24. and amended to read:
AB969,57,63 218.0116 (7) (d) 4. A manufacturer's, importer's or distributor's authorization
4of a fleet owner to perform warranty or delivery and preparation work only on the
5fleet owner's own vehicles is not the establishment of a service outlet. In this subd.
64. d.
subdivision, "fleet:
AB969,57,10 7a. "Fleet owner" means a person who owns for its own use or for the use of others
810 or more motor vehicles of the current or preceding model year manufactured or
9sold by the manufacturer, importer or distributor who is authorizing the warranty
10work to be performed, except that "fleet.
AB969,57,12 11b. "Fleet owner" does not include persons engaged in the business of leasing
12motor vehicles to individual consumers.
AB969, s. 177 13Section 177. 218.01 (3) (f) 4. e. of the statutes is renumbered 218.0116 (7) (d)
145.
AB969, s. 178 15Section 178. 218.01 (3) (fm) of the statutes is renumbered 218.0116 (8).
AB969, s. 179 16Section 179. 218.01 (3) (g) of the statutes, as affected by 1997 Wisconsin Act
1727
, is renumbered 218.0116 (9) and amended to read:
AB969,57,2018 218.0116 (9) Any person in interest aggrieved by a decision of the division of
19hearings and appeals or an order of the division of banking may have a review thereof
20of the decision as provided in ch. 227.
AB969, s. 180 21Section 180. 218.01 (3) (h) of the statutes is renumbered 218.0116 (10) and
22amended to read:
AB969,58,323 218.0116 (10) In addition to the licensor's authority to deny, suspend or revoke
24a license under this section ss. 218.0101 to 218.0163, the division of banking, after
25public hearing, may issue a special order enjoining any licensee from engaging in any

1act or practice which is determined by the division of banking to be in violation of any
2provision of par. (a) sub. (1), and the division of hearings and appeals may be
3petitioned to issue such a special order after notice and hearing thereon.
AB969, s. 181 4Section 181. 218.01 (3a) (title) of the statutes is renumbered 218.0117 (title).
AB969, s. 182 5Section 182. 218.01 (3a) (a) of the statutes is renumbered 218.0117 (1) and
6amended to read:
AB969,58,127 218.0117 (1) If a dealer, distributor or manufacturer is convicted under s.
8341.55 (1) a second 2nd or subsequent time within the same registration year, the
9department of transportation shall revoke the license of such the dealer, distributor
10or manufacturer for a period not to exceed one year. For the purposes of this
11paragraph subsection, the conviction of the an employe of a dealer, distributor or
12manufacturer shall be counted as a conviction of the employer.
AB969, s. 183 13Section 183. 218.01 (3a) (b) of the statutes is renumbered 218.0117 (2) and
14amended to read:
AB969,58,1715 218.0117 (2) If a transporter is convicted under s. 341.55 (3) a 2nd or
16subsequent time within the same license period, the department of transportation
17shall revoke the license of such the transporter for a period not to exceed one year.
AB969, s. 184 18Section 184. 218.01 (3a) (c) of the statutes is renumbered 218.0117 (3) and
19amended to read:
AB969,58,2520 218.0117 (3) A dealer, distributor, manufacturer or transporter whose license
21has been revoked shall forthwith immediately surrender its registration plates to a
22traffic officer or peace officer designated by the department of transportation. A
23dealer, distributor, manufacturer or transporter who fails to return the plates as
24required by this subsection section may be fined not more than $200 or imprisoned
25for not more than 6 months or both.
AB969, s. 185
1Section 185. 218.01 (3a) (d) of the statutes is renumbered 218.0117 (4).
AB969, s. 186 2Section 186. 218.01 (3c) (title) of the statutes is renumbered 218.0131 (title).
AB969, s. 187 3Section 187. 218.01 (3c) (b) of the statutes is renumbered 218.0131 (1) and
4amended to read:
AB969,59,145 218.0131 (1) Any designated family member of a deceased or incapacitated
6dealer shall have the right to succeed such the deceased or incapacitated dealer in
7the ownership or operation of the dealership under the existing franchise agreement
8provided if the designated family member gives the manufacturer, factory branch or
9distributor written notice of his or her intention to do so within 120 days of the
10dealer's death or incapacity and, unless there exists good cause for refusal to honor
11such the succession on the part of the manufacturer, factory branch or distributor.
12The manufacturer, factory branch or distributor may request, and the designated
13family member shall provide, such personal and financial data as that is reasonably
14necessary to determine whether the succession should be honored.
AB969, s. 188 15Section 188. 218.01 (3c) (c) of the statutes is renumbered 218.0131 (2) and
16amended to read:
AB969,60,717 218.0131 (2) If a manufacturer, factory branch or distributor believes it has
18good cause for refusing to honor the succession to the ownership and operation of a
19dealership by a family member of a deceased or incapacitated dealer under the
20existing franchise agreement, such the manufacturer, factory branch or distributor
21may, within 30 days of receipt of notice of the designated family member's intent to
22succeed the dealer in the ownership and operation of the dealership, serve upon such
23the designated family member and the department of transportation notice of its
24refusal to honor the succession and of its intent to discontinue the existing franchise
25agreement with the dealership no sooner than 60 days from the date such the notice

1is served. Such The notice shall state the specific grounds for the refusal to honor
2the succession and the discontinuance of the franchise agreement. If no notice of
3such refusal and discontinuance is timely served upon the family member and
4department of transportation, or if the division of hearings and appeals rules in favor
5of the complainant in a hearing held under par. (d) sub. (3), the franchise agreement
6shall continue in effect subject to termination only in the manner prescribed in this
7subchapter.
AB969, s. 189 8Section 189. 218.01 (3c) (d) of the statutes is renumbered 218.0131 (3) (a) and
9amended to read:
AB969,60,1810 218.0131 (3) (a) Any designated family member who receives a notice of the
11manufacturer's, factory branch's or distributor's refusal to honor his or her
12succession to the ownership and operation of the dealership may, within the 60-day
13notice period, serve on the respondent and file in triplicate with the division of
14hearings and appeals a verified complaint for a hearing and determination by the
15division of hearings and appeals on whether good cause exists for such the
16manufacturer's, factory branch's or distributor's refusal and discontinuance. The
17division of hearings and appeals shall forward a copy of the complaint to the
18department of transportation.
AB969,60,24 19(b) The manufacturer, factory branch or distributor shall, at the hearing held
20under par. (a),
have the burden of establishing good cause for such its refusal by
21showing that the succession would be detrimental to the public interest or to the
22representation of the manufacturer, factory branch or distributor. The franchise
23agreement shall continue in effect until the final determination of the issues raised
24in such the complaint.
AB969,61,8
1(c) If the complainant prevails, at the hearing held under par. (a), he or she shall
2have a cause of action against the defendant manufacturer, factory branch or
3distributor
for reasonable expenses and attorney fees incurred in such the matter.
4If the manufacturer, factory branch or distributor prevails, the division of hearings
5and appeals shall include in its order approving the termination of the franchise
6agreement such conditions as that are reasonable and adequate to afford the
7complainant an opportunity to receive fair and reasonable compensation for the
8value of the dealership.
AB969, s. 190 9Section 190. 218.01 (3c) (e) of the statutes is renumbered 218.0131 (4) and
10amended to read:
AB969,61,1311 218.0131 (4) Nothing in this subsection section shall prevent a dealer, during
12the dealer's lifetime, from designating any person as his or her successor dealer by
13written instrument filed with the manufacturer, factory branch or distributor.
AB969, s. 191 14Section 191. 218.01 (3n) (title) of the statutes is renumbered 218.0132 (title).
AB969, s. 192 15Section 192. 218.01 (3n) (a) of the statutes is renumbered 218.0132 (1) (a) and
16amended to read:
AB969,61,2117 218.0132 (1) (a) For purposes of sub. (3) (a) 17. s. 218.0116 (1) (i), the
18termination, cancellation or discontinuation of a motor vehicle line make will be
19considered to be the cancellation or failure to renew the franchise of a motor vehicle
20dealer or distributor of that line make even if that line make is part of an agreement
21that includes other line makes but.
AB969,61,25 22(b) Notwithstanding par. (a), a manufacturer, importer or distributor may
23change, add or delete models, specifications, model names, numbers or identifying
24marks or similar characteristics of motor vehicles that it markets without effecting
25a cancellation or failure to renew a franchise
.
AB969, s. 193
1Section 193. 218.01 (3n) (b) (intro.) of the statutes is renumbered 218.0132 (2)
2(intro.) and amended to read:
AB969,62,53 218.0132 (2) (intro.) The cancellation or nonrenewal of a franchise shall not be
4a violation of sub. (3) (a) 17. s. 218.0116 (1) (i) if all of the following requirements are
5met:
AB969, s. 194 6Section 194. 218.01 (3n) (b) 1. of the statutes is renumbered 218.0132 (2) (a).
AB969, s. 195 7Section 195. 218.01 (3n) (b) 2. of the statutes is renumbered 218.0132 (2) (b).
AB969, s. 196 8Section 196. 218.01 (3n) (b) 3. of the statutes is renumbered 218.0132 (2) (c)
9and amended to read:
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