SB99,60,2217
218.0116
(5) The licensor may inspect the pertinent books, records, letters and
18contracts of a licensee and shall determine the cost of an examination. The cost of
19an examination shall be paid by
such the licensee so examined within 30 days after
20demand
therefor for the examination by the licensor
, and the. The licensor may
21maintain an action for the recovery of
such the costs
of the examination in any court
22of competent jurisdiction.
SB99, s. 175
23Section
175. 218.01 (3) (e) of the statutes is renumbered 218.0116 (6) and
24amended to read:
SB99,61,10
1218.0116
(6) If a licensee is a firm, corporation or limited liability company, it
2shall be sufficient cause for the denial, suspension or revocation of a license that any
3officer, director, trustee or manager of the firm, corporation or limited liability
4company, or any member in case of a partnership, has been guilty of any act or
5omission which would be cause for refusing, suspending or revoking a license to
such 6that party as an individual. Each licensee shall be responsible for the acts of any or
7all of his or her salespersons while acting as his or her agent, if the licensee approved
8of or had knowledge of the acts or other similar acts and after
such approval 9approving of or
obtaining knowledge
of the acts retained the benefit, proceeds, profits
10or advantages accruing from the acts or otherwise ratified the acts.
SB99, s. 176
11Section
176. 218.01 (3) (f) 1. of the statutes is renumbered 218.0116 (7) (a) 1.
12and amended to read:
SB99,61,2513
218.0116
(7) (a) 1. A manufacturer, importer or distributor who seeks to enter
14into a franchise agreement establishing or relocating a motor vehicle dealership,
15parts outlet or service outlet within the relevant market area of an existing
16enfranchised dealer of the line make of motor vehicle shall first notify
, in writing
, the
17department of transportation and
each such that existing enfranchised dealer of its
18intention to establish or relocate a dealership or outlet. Within 30 days of receiving
19the notice or within 30 days after the end of any appeal procedure provided by the
20manufacturer, importer or distributor, whichever is later, any existing enfranchised
21dealer of the same line make to whom the manufacturer, importer or distributor is
22required to give notice under this
subdivision paragraph may file with the
23department of transportation and the division of hearings and appeals a complaint
24protesting the proposed establishment or relocation of the dealership or outlet within
25the relevant market area of the existing enfranchised dealer.
SB99,62,8
12. If a complaint is filed
under subd. 1., the department of transportation shall
2inform the manufacturer, importer or distributor that a timely complaint has been
3filed, that a hearing is required, and that the proposed franchise agreement may not
4be entered into until the division of hearings and appeals has held a hearing, nor
5thereafter, if the division of hearings and appeals determines that there is good cause
6for not permitting the proposed establishment or relocation of the dealership or
7outlet. In the event of multiple complaints, hearings shall be consolidated to expedite
8the disposition of the issue.
SB99, s. 177
9Section
177. 218.01 (3) (f) 2. of the statutes is renumbered 218.0116 (7) (b), and
10218.0116 (7) (b) 8., as renumbered, is amended to read:
SB99,62,1311
218.0116
(7) (b) 8. The effect the denial of
such the proposed establishment or
12relocation would have on the license applicant, dealer or outlet operator who is
13seeking to establish or relocate a dealership or outlet.
SB99, s. 178
14Section
178. 218.01 (3) (f) 3. of the statutes is renumbered 218.0116 (7) (c).
SB99, s. 179
15Section
179. 218.01 (3) (f) 4. (intro.) of the statutes is renumbered 218.0116
16(7) (d) (intro.) and amended to read:
SB99,62,1717
218.0116
(7) (d) (intro.) For purposes of this
paragraph subsection:
SB99, s. 180
18Section
180. 218.01 (3) (f) 4. a. of the statutes is renumbered 218.0116 (7) (d)
191h. and amended to read:
SB99,63,220
218.0116
(7) (d) 1h. The reopening or replacement of a dealership or outlet that
21has been closed for less than 2 years, at the original location or within 2 miles of the
22original location by the closest highway route, is not the establishment of a motor
23vehicle dealership or outlet, unless the location is within 4 miles, by the closest
24highway route, of another franchised dealer of the same line make and is closer to
25that dealer than the closed dealership or outlet.
In this subd. 4. a., "closed" means
1the effective date of the termination or expiration of the dealership's or outlet's
2license or franchise, whichever is earlier.
SB99,63,10
31m. The reopening or replacement of a dealership or outlet that has been closed
4for less than 2 years at a location other than the original location and other than a
5location within 2 miles of the original location by the closest highway route, but
6within the area of sales responsibility that had been assigned to the closed dealership
7or outlet by the manufacturer, importer or distributor is not the establishment of a
8motor vehicle dealership or outlet, unless the new location is within 6 miles, by the
9closest highway route, of another franchised dealer of the same line make and is
10closer to that dealer than the closed dealership or outlet.
SB99,63,14
111q. The reopening or replacement of a dealership or outlet that has been closed
12for 2 or more years or that is at a location outside of the area of sales responsibility
13that had been assigned to the closed dealership or outlet by the manufacturer,
14importer or distributor is the establishment of a dealership or outlet.
Note: The definition of "closed" is recreated by this bill as s. 218.0116 (7) (d) 1d. for
proper placement consistent with current style.
SB99, s. 181
15Section
181. 218.01 (3) (f) 4. b. of the statutes is renumbered 218.0116 (7) (d)
162.
SB99, s. 182
17Section
182. 218.01 (3) (f) 4. c. of the statutes is renumbered 218.0116 (7) (d)
183. and amended to read:
SB99,64,719
218.0116
(7) (d) 3. The establishment or relocation of a service or parts outlet
20requires that notice be given under
subd. 1. par. (a) to existing enfranchised dealers
21who are otherwise entitled to receive
such notice
under par. (a) and who are
22authorized to perform work to rectify product or warranty defects or delivery and
23preparation obligations on the same line make as the proposed service outlet or to
1use a trade name, trademark or service mark that is also proposed to be used by the
2proposed service or parts outlet, except that the establishment or relocation of a
3service or parts outlet that is owned and operated by a motor vehicle dealership
4enfranchised by the manufacturer, importer or distributor requires that notice be
5given only to existing dealers who are otherwise entitled to receive
such notice
under
6par. (a) and who hold a franchise to sell the same line make as the dealership that
7will own and operate the proposed service or parts outlet.
SB99, s. 183
8Section
183. 218.01 (3) (f) 4. d. of the statutes is renumbered 218.0116 (7) (d)
94. and amended to read:
SB99,64,1310
218.0116
(7) (d) 4. A manufacturer's, importer's or distributor's authorization
11of a fleet owner to perform warranty or delivery and preparation work only on the
12fleet owner's own vehicles is not the establishment of a service outlet. In this
subd.
134. d., "fleet subdivision:
SB99,64,17
14a. "Fleet owner" means a person who owns for its own use or for the use of others
1510 or more motor vehicles of the current or preceding model year manufactured or
16sold by the manufacturer, importer or distributor who is authorizing the warranty
17work to be performed
, except that "fleet.
SB99,64,19
18b. "Fleet owner" does not include persons engaged in the business of leasing
19motor vehicles to individual consumers.
SB99, s. 184
20Section
184. 218.01 (3) (f) 4. e. of the statutes is renumbered 218.0116 (7) (d)
215.
SB99, s. 185
22Section
185. 218.01 (3) (fm) of the statutes is renumbered 218.0116 (8).
SB99, s. 186
23Section
186. 218.01 (3) (g) of the statutes is renumbered 218.0116 (9) and
24amended to read:
SB99,65,3
1218.0116
(9) Any person in interest aggrieved by a decision of the division of
2hearings and appeals or an order of the division of banking may have a review
thereof 3of the decision as provided in ch. 227.
SB99, s. 187
4Section
187. 218.01 (3) (h) of the statutes is renumbered 218.0116 (10) and
5amended to read:
SB99,65,116
218.0116
(10) In addition to the licensor's authority to deny, suspend or revoke
7a license under
this section ss. 218.0101 to 218.0163, the division of banking, after
8public hearing, may issue a special order enjoining any licensee from engaging in any
9act or practice which is determined by the division of banking to be in violation of any
10provision of
par. (a) sub. (1), and the division of hearings and appeals may be
11petitioned to issue such a special order after notice and hearing thereon.
SB99, s. 188
12Section
188. 218.01 (3a) (title) of the statutes is renumbered 218.0117 (title).
SB99, s. 189
13Section
189. 218.01 (3a) (a) of the statutes is renumbered 218.0117 (1) and
14amended to read:
SB99,65,2015
218.0117
(1) If a dealer, distributor or manufacturer is convicted under s.
16341.55 (1) a
second 2nd or subsequent time within the same registration year, the
17department of transportation shall revoke the license of
such the dealer, distributor
18or manufacturer for a period not to exceed one year. For the purposes of this
19paragraph subsection, the conviction of
the an employe of a dealer, distributor or
20manufacturer shall be counted as a conviction of the employer.
SB99, s. 190
21Section
190. 218.01 (3a) (b) of the statutes is renumbered 218.0117 (2) and
22amended to read:
SB99,65,2523
218.0117
(2) If a transporter is convicted under s. 341.55 (3) a 2nd or
24subsequent time within the same license period, the department of transportation
25shall revoke the license of
such the transporter for a period not to exceed one year.
SB99, s. 191
1Section
191. 218.01 (3a) (c) of the statutes is renumbered 218.0117 (3) and
2amended to read:
SB99,66,83
218.0117
(3) A dealer, distributor, manufacturer or transporter whose license
4has been revoked shall
forthwith immediately surrender its registration plates to a
5traffic officer or peace officer designated by the department of transportation. A
6dealer, distributor, manufacturer or transporter who fails to return the plates as
7required by this
subsection section may be fined not more than $200 or imprisoned
8for not more than 6 months or both.
Note: "(F)orthwith" is replaced with "immediately" and "for" is added for constancy
with current style.
SB99, s. 192
9Section
192. 218.01 (3a) (d) of the statutes is renumbered 218.0117 (4).
SB99, s. 193
10Section
193. 218.01 (3c) (title) of the statutes is renumbered 218.0131 (title).
SB99, s. 194
11Section
194. 218.01 (3c) (b) of the statutes is renumbered 218.0131 (1) and
12amended to read:
SB99,66,2213
218.0131
(1) Any designated family member of a deceased or incapacitated
14dealer shall have the right to succeed
such the deceased or incapacitated dealer in
15the ownership or operation of the dealership under the existing franchise agreement
16provided if the designated family member gives the manufacturer, factory branch or
17distributor written notice of his or her intention to do so within 120 days of the
18dealer's death or incapacity
and, unless there exists good cause for refusal to honor
19such the succession on the part of the manufacturer, factory branch or distributor.
20The manufacturer, factory branch or distributor may request, and the designated
21family member shall provide,
such personal and financial data
as is that are 22reasonably necessary to determine whether the succession should be honored.
SB99, s. 195
1Section
195. 218.01 (3c) (c) of the statutes is renumbered 218.0131 (2) and
2amended to read:
SB99,67,183
218.0131
(2) If a manufacturer, factory branch or distributor believes it has
4good cause for refusing to honor the succession to the ownership and operation of a
5dealership by a family member of a deceased or incapacitated dealer under the
6existing franchise agreement,
such the manufacturer, factory branch or distributor
7may, within 30 days of receipt of notice of the designated family member's intent to
8succeed the dealer in the ownership and operation of the dealership, serve upon
such 9the designated family member and the department of transportation notice of its
10refusal to honor the succession and of its intent to discontinue the existing franchise
11agreement with the dealership no sooner than 60 days from the date
such the notice
12is served.
Such The notice shall state the specific grounds for the refusal to honor
13the succession and the discontinuance of the franchise agreement. If no notice of
14such refusal and discontinuance is timely served upon the family member and
15department of transportation, or if the division of hearings and appeals rules in favor
16of the complainant in a hearing held under
par. (d)
sub. (3), the franchise agreement
17shall continue in effect subject to termination only in the manner prescribed in this
18subchapter.
SB99, s. 196
19Section
196. 218.01 (3c) (d) of the statutes is renumbered 218.0131 (3) (a) and
20amended to read:
SB99,68,421
218.0131
(3) (a) Any designated family member who receives a notice of the
22manufacturer's, factory branch's or distributor's refusal to honor his or her
23succession to the ownership and operation of the dealership may, within the 60-day
24notice period, serve on the respondent and file in triplicate with the division of
25hearings and appeals a verified complaint for a hearing and determination by the
1division of hearings and appeals on whether good cause exists for
such the 2manufacturer's, factory branch's or distributor's refusal and discontinuance. The
3division of hearings and appeals shall forward a copy of the complaint to the
4department of transportation.
SB99,68,10
5(b) The manufacturer, factory branch or distributor shall
, at the hearing held
6under par. (a), have the burden of establishing good cause for
such its refusal by
7showing that the succession would be detrimental to the public interest or to the
8representation of the manufacturer, factory branch or distributor. The franchise
9agreement shall continue in effect until the final determination of the issues raised
10in
such the complaint.
SB99,68,18
11(c) If the complainant prevails
at the hearing held under par. (a), he or she shall
12have a cause of action against the defendant
manufacturer, factory branch or
13distributor for reasonable expenses and attorney fees incurred in
such the matter.
14If the manufacturer, factory branch or distributor prevails, the division of hearings
15and appeals shall include in its order approving the termination of the franchise
16agreement such conditions as are reasonable and adequate to afford the complainant
17an opportunity to receive fair and reasonable compensation for the value of the
18dealership.
SB99, s. 197
19Section
197. 218.01 (3c) (e) of the statutes is renumbered 218.0131 (4) and
20amended to read:
SB99,68,2321
218.0131
(4) Nothing in this
subsection section shall prevent a dealer, during
22the dealer's lifetime, from designating any person as his or her successor dealer by
23written instrument filed with the manufacturer, factory branch or distributor.
SB99, s. 198
24Section
198. 218.01 (3n) (title) of the statutes is renumbered 218.0132 (title).
SB99, s. 199
1Section
199. 218.01 (3n) (a) of the statutes is renumbered 218.0132 (1) (a) and
2amended to read:
SB99,69,73
218.0132
(1) (a) For purposes of
sub. (3) (a) 17. s. 218.0116 (1) (i), the
4termination, cancellation or discontinuation of a motor vehicle line make will be
5considered to be the cancellation or failure to renew the franchise of a motor vehicle
6dealer or distributor of that line make even if that line make is part of an agreement
7that includes other line makes
but.
SB99,69,11
8(b) Notwithstanding par. (a), a manufacturer, importer or distributor may
9change, add or delete models, specifications, model names, numbers or identifying
10marks or similar characteristics of motor vehicles that it markets
without effecting
11a cancellation or failure to renew a franchise.
SB99, s. 200
12Section
200. 218.01 (3n) (b) (intro.) of the statutes is renumbered 218.0132 (2)
13(intro.) and amended to read:
SB99,69,1614
218.0132
(2) (intro.) The cancellation or nonrenewal of a franchise shall not be
15a violation of
sub. (3) (a) 17. s. 218.0116 (1) (i) if all of the following requirements are
16met:
SB99, s. 201
17Section
201. 218.01 (3n) (b) 1. of the statutes is renumbered 218.0132 (2) (a).
SB99, s. 202
18Section
202. 218.01 (3n) (b) 2. of the statutes is renumbered 218.0132 (2) (b).
SB99, s. 203
19Section
203. 218.01 (3n) (b) 3. of the statutes is renumbered 218.0132 (2) (c)
20and amended to read:
SB99,69,2221
218.0132
(2) (c) If the franchisee is a motor vehicle dealer, the dealer receives
22the termination benefits under
sub. (3r) s. 218.0133.
SB99, s. 204
23Section
204. 218.01 (3n) (b) 4. (intro.) of the statutes is renumbered 218.0132
24(2) (d) (intro.).
SB99, s. 205
1Section
205. 218.01 (3n) (b) 4. a. of the statutes is renumbered 218.0132 (2)
2(d) 1.
SB99, s. 206
3Section
206. 218.01 (3n) (b) 4. b. of the statutes is renumbered 218.0132 (2)
4(d) 2. and amended to read:
SB99,70,125
218.0132
(2) (d) 2. Compensates the dealer or distributor for the actual
6pecuniary loss caused by the franchise cancellation or nonrenewal. In determining
7the actual pecuniary loss, the value of any continued service or parts business
8available to the dealer or distributor for the line make covered by the franchise shall
9be considered. If the dealer or distributor and the manufacturer, importer or
10distributor cannot agree on the amount of compensation to be paid under this
subd.
114. b. subdivision, either may file a declaratory judgment action in a court of
12competent jurisdiction.
SB99, s. 207
13Section
207. 218.01 (3n) (b) 4. c. of the statutes is renumbered 218.0132 (2)
14(d) 3. and amended to read:
SB99,70,2415
218.0132
(2) (d) 3. Establishes, in a proceeding brought by the dealer or
16distributor alleging that the cancellation or nonrenewal violates
sub. (3) (a) 17. s.
17218.0116 (1) (i), that the continued distribution of the line make in the United States
18would cause it economic loss and that, after the effective date of the franchise
19cancellation or nonrenewal, neither the manufacturer, importer or distributor nor
20any owner, assignee or licensee of the trademarks or service marks used for the
21purpose of designating, making known or distinguishing the line make covered by
22the franchise will use the trademarks or service marks, either alone or in conjunction
23with other marks, in designating, making known or distinguishing any line make of
24motor vehicle sold or distributed in the United States.
SB99, s. 208
1Section
208. 218.01 (3n) (b) 4. d. of the statutes is renumbered 218.0132 (2)
2(d) 4. (intro.) and amended to read:
SB99,71,63
218.0132
(2) (d) 4. (intro.) If the franchise relates to a line make that is sold or
4distributed in less than 13 states of the United States, establishes, in a proceeding
5brought by the dealer or distributor alleging that the cancellation or nonrenewal
6violates
sub. (3) (a) 17., that s. 218.0116 (1) (i) all of the following:
SB99,71,8
7a. That the continued distribution of the line make in this state would cause
8it economic loss
and that,.
SB99,71,18
9b. That after the effective date of the franchise cancellation or nonrenewal,
10neither the manufacturer, importer or distributor nor any owner, assignee or licensee
11of the trademarks or service marks used for the purpose of designating, making
12known or distinguishing the line make covered by the franchise will use
such those 13trademarks or service marks, either alone or in conjunction with other marks, in
14designating, making known or distinguishing any line make of motor vehicle sold or
15distributed in this state, except that, if the line make covered by the franchise has
16been first distributed in this state less than 2 years before the effective date of the
17cancellation or nonrenewal,
such those trademarks and service marks may be used
18in this state after 6 years from the effective date of the cancellation or nonrenewal.
SB99, s. 209
19Section
209. 218.01 (3n) (b) 4. e. of the statutes is renumbered 218.0132 (2)
20(d) 5. (intro.) and amended to read:
SB99,71,2321
218.0132
(2) (d) 5. (intro.) Establishes
, in a proceeding brought by the dealer
22or distributor alleging that the cancellation or nonrenewal violates
sub. (3) (a) 17.,
23that s. 218.0116 (1) (i) all of the following:
SB99,71,25
24a. That the continued distribution of the line make in this state is prohibited
25by law or by an order of a court or agency with jurisdiction to issue the order
and that.
SB99,72,3
1b. That the continued distribution of the line make in this state cannot be made
2to comply with the law or order through the reasonable efforts of the manufacturer,
3importer or distributor
and that,.
SB99,72,10
4c. That after the effective date of the franchise cancellation or nonrenewal,
5neither the manufacturer, importer or distributor nor any owner, assignee or licensee
6of the trademarks or service marks used for the purpose of designating, making
7known or distinguishing the line make covered by the franchise will use
such those 8trademarks or service marks, either alone or in conjunction with other marks, in
9designating, making known or distinguishing any comparable line make of motor
10vehicle sold or distributed in this state.
SB99, s. 210
11Section
210. 218.01 (3r) (title) of the statutes is renumbered 218.0133 (title).
SB99, s. 211
12Section
211. 218.01 (3r) (a) (intro.) of the statutes is renumbered 218.0133 (1)
13(intro.) and amended to read:
SB99,72,1414
218.0133
(1) (intro.) In this
subsection section:
SB99, s. 212
15Section
212. 218.01 (3r) (a) 1. of the statutes is renumbered 218.0133 (1) (a).
SB99, s. 213
16Section
213. 218.01 (3r) (a) 2. of the statutes is renumbered 218.0133 (1) (b).
SB99, s. 214
17Section
214. 218.01 (3r) (b) 1. of the statutes is renumbered 218.0133 (2) (a)
18and amended to read:
SB99,72,2219
218.0133
(2) (a) Except as provided in
par. (e) sub. (5) and subject to
par. (c) sub.
20(3), when a grantor or motor vehicle dealer terminates, cancels or does not renew an
21agreement a grantor shall pay a motor vehicle dealer all of the termination benefits
22under
subds. 2. to 5. pars. (b) to (e).
SB99, s. 215
23Section
215. 218.01 (3r) (b) 2. of the statutes is renumbered 218.0133 (2) (b)
241. (intro.) and amended to read:
SB99,73,3
1218.0133
(2) (b) 1. (intro.) A grantor shall repurchase from the motor vehicle
2dealer
any unsold new motor
vehicles
vehicle that
have meets all of the following
3criteria:
SB99,73,5
4a. The motor vehicle has not been structurally modified by a motor vehicle
5dealer
, that have.
SB99,73,9
6b. The motor vehicle has not been operated more than 300 miles for
7manufacturer's tests, predelivery tests and motor vehicle dealer exchange in
8addition to operation required for motor vehicle delivery from the grantor
and that
9the.
SB99,73,13
10c. The motor vehicle
dealer was acquired as part of the motor vehicle dealer's
11original inventory or
acquired from the grantor or from another motor vehicle dealer
12of the same line make
and who acquired the motor vehicle from the grantor.
In
13addition, a
SB99,73,18
142. A grantor may not be required to repurchase a motor vehicle under this
15subdivision paragraph unless the date on the original dealer invoice is within 12
16months of the date on which the motor vehicle dealer terminates, cancels or does not
17renew an agreement or is within 18 months of the date on which the grantor
18terminates, cancels or does not renew an agreement.
SB99,73,25
193. The repurchase price for a new motor vehicle shall be the motor vehicle
20invoice price from the grantor, plus destination, delivery or distribution charges and
21sales taxes incurred by the motor vehicle dealer, less allowances paid or credited to
22the motor vehicle dealer by the grantor. A grantor may subtract from a new motor
23vehicle repurchase price an amount equal to the diminution in wholesale value
24caused by damages to a new motor vehicle before the motor vehicle dealer delivers
25the new motor vehicle to the grantor.
SB99, s. 216
1Section
216. 218.01 (3r) (b) 3. of the statutes is renumbered 218.0133 (2) (c) 1.
2(intro.) and amended to read: