SB99: Bill Text

SB99,92,3 (2) Any such statements, threats, promises, acts, contracts or offers of contracts, set forth in par. (a) sub. (1) are declared unfair trade practices and unfair competition and against the policy of this state, are unlawful and are prohibited.

SB99,92,8 (3) No sales finance company, and no officer, agent or representative thereof of a sales finance company, shall induce or coerce or attempt to induce or coerce any retail motor vehicle dealer to transfer to such the sales finance company any of the dealer's retail instalment sales contracts in this state of such dealer on any motor vehicle by any of the following acts or means, namely:

SB99,92,13 (a) By any statement or representation, express or implied, made directly or indirectly, that the manufacturer, wholesaler or distributor of such the motor vehicles will grant such the dealer a franchise to handle such the manufacturer's, wholesaler's or distributor's motor vehicles if such the dealer shall will sell, assign or transfer all or part of such retail sales contracts to such sales finance company.

SB99,92,18 (b) By any statement or representation, express or implied, made directly or indirectly, that the manufacturer, wholesaler or distributor of such motor vehicles will in any manner benefit or injure such the dealer if such the dealer shall does or shall does not sell, assign or transfer all or part of such the dealer's retail sales contracts to such the sales finance company.

SB99,92,25 (c) By an express or implied statement or representation made directly or indirectly, that there is an express or implied obligation on the part of such the dealer to so sell, assign or transfer all or part of such the dealer's retail sales contracts on such the manufacturer's, wholesaler's or distributor's motor vehicles to such the sales finance company because of any relationship or affiliation between such the sales finance company and the manufacturer, wholesaler or distributor of such motor vehicles.

SB99,93,3 (4) Any such statement statements or representations set forth in par. (c) sub. (3) are declared to be unfair trade practices and , unfair competition and against the policy of this state, and are unlawful and are prohibited.

SB99,93,8 (5) Any retail motor vehicle dealer who, pursuant to any inducement, statement, promise or threat hereinbefore declared unlawful under this section, shall sell, assign or transfer any or all of the dealer's retail instalment contracts shall not be guilty of any unlawful act and may be compelled to testify to each such unlawful act.

SB99,93,19 (6) No manufacturer shall directly or indirectly pay or give, or contract to pay or give, anything of service or value to any sales finance company licensee in this state, and no such sales finance company licensee in this state shall accept or receive or contract or agree to accept or receive directly or indirectly any payment or thing of service of or value from any manufacturer, if the effect of the payment or the giving of any such the thing of service or value by the manufacturer, or the acceptance or receipt thereof of the payment or thing of service or value by the sales finance company licensee, may be to lessen or eliminate competition or tend to grant an unfair trade advantage or create a monopoly in the sales finance company licensee who accepts or receives the payment, thing or service of value or contracts or agrees to accept or receive the same.

Note: Manufacturer, wholesaler and distributor are defined under s. 218.0101, as renumbered by this bill, as manufacturer, wholesalers and distributors of motor vehicles. Redundant and superfluous language is deleted.

SB99, s. 271 Section 271. 218.01 (7a) of the statutes is renumbered 218.0146.

SB99, s. 272 Section 272. 218.01 (7b) (title) of the statutes is renumbered 218.0147 (title).

SB99, s. 273 Section 273. 218.01 (7b) of the statutes is renumbered 218.0147 (1) and amended to read:

SB99,94,11 218.0147 (1) No minor shall may purchase or lease any motor vehicle unless the minor, at the time of purchase or lease, submits to the seller or lessor a statement verified before a person authorized to administer oaths and made and signed by either parent of the purchaser or lessee, if such the signing parent has custody of the minor or, if neither parent has custody, then by the person having custody, setting forth that the purchaser or lessee has consent to purchase or lease the vehicle. The signature on the statement shall not impute any liability for the purchase price of the motor vehicle or for any payments under the consumer lease to the consenting person. The statement shall not adversely affect any other arrangement for the assumption of liability for the purchase price or any lease payments which the consenting person may make.

SB99,94,18 (2) If a motor vehicle is purchased by a minor, the signed statement described in sub. (1) shall accompany the application for a certificate of title and shall be filed by the department of transportation with the application. Failure to obtain the consent or to forward it, together with the application for a certificate of title in the event of the purchase of a motor vehicle, shall not void the contract of sale or consumer lease of a motor vehicle in the hands of an innocent holder, without notice, for value and in the ordinary course of business.

SB99,94,21 (3) Any person who sells or leases a motor vehicle to a minor with knowledge of such that fact without procuring such a the statement described in sub. (1) may be fined not more than $200 or imprisoned for not more than 6 months or both.

SB99, s. 274 Section 274. 218.01 (7m) (title) of the statutes is renumbered 218.0136 (title).

SB99, s. 275 Section 275. 218.01 (7m) (a) of the statutes is renumbered 218.0136 (1) and amended to read:

SB99,95,10 218.0136 (1) A licensee may not file a complaint or petition with the division of hearings and appeals or bring an action under sub. (9) (a) s. 218.0163 (1), based on an alleged violation of this section ss. 218.0101 to 218.0163 by any other licensee or pursuant to sub. (3) (f) or (fm), (3c) or (3x) under s. 218.0116 (7) or (8), 218.0131 or 218.0134, unless the licensee serves a demand for mediation upon the other licensee before or contemporaneous with the filing of the complaint or petition or the bringing of the action. A demand for mediation shall be in writing and served upon the other licensee by certified mail at an address designated for that licensee in the licensor's records. The demand for mediation shall contain a brief statement of the dispute and the relief sought by the licensee filing the demand.

SB99, s. 276 Section 276. 218.01 (7m) (b) of the statutes is renumbered 218.0136 (2).

SB99, s. 277 Section 277. 218.01 (7m) (c) of the statutes is renumbered 218.0136 (3) and amended to read:

SB99,96,3 218.0136 (3) The service of a demand for mediation under par. (a) sub. (1) shall stay the time for the filing of any complaint or petition with the division of hearings and appeals or for bringing an action under sub. (9) (a) s. 218.0163 (1), based on an alleged violation of this section ss. 218.0101 to 218.0163 by the other licensee or pursuant to sub. (3) (f) or (fm), (3c) or (3x) under s. 218.0116 (7) or (8), 218.0131 or 218.0134, until the representatives of both licensees have met with a mutually selected mediator for the purpose of attempting to resolve the dispute. If a complaint or petition is filed before the meeting, the division of hearings and appeals or the court shall enter an order suspending the proceeding or action until the meeting has occurred and may, upon the written stipulation of all parties to the proceeding or action that they wish to continue to mediate under this subsection section, enter an order suspending the proceeding or action for as long a period as the division of hearings and appeals or court considers to be appropriate. A suspension order issued under this paragraph subsection may be revoked upon motion of any party or upon motion of the division of hearings and appeals or the court.

SB99, s. 278 Section 278. 218.01 (7m) (d) of the statutes is renumbered 218.0136 (4) and amended to read:

SB99,96,9 218.0136 (4) The licensor shall encourage licensees under this subsection section to establish, maintain and administer a panel of mediators who have the character, ability and training to serve as mediators and who have knowledge of the motor vehicle industry.

SB99, s. 279 Section 279. 218.01 (7r) of the statutes is renumbered 218.0137 and amended to read:

SB99,96,19 218.0137 Arbitration of disputes between licensees. A manufacturer, importer or distributor and a dealer may agree to submit a dispute arising under a franchise agreement or under this section ss. 218.0101 to 218.0163 to binding arbitration. Unless agreed otherwise in an agreement that complies with subs. (2) (bm) 2. and (3) (a) 36. d. ss. 218.0114 (9) (b) and 218.0116 (1) (qm) 4., any arbitration proceeding shall be voluntary, initiated by serving a written demand for arbitration on the other party, and shall be conducted under the provisions of the state of Wisconsin arbitration plan administered by representatives of the licensees.

SB99, s. 280 Section 280. 218.01 (7t) of the statutes is renumbered 218.0138 and amended to read:

SB99,97,3 218.0138 Immunity and presumption of good faith. A mediator or arbitrator is immune from civil liability for any good faith act or omission within the scope of the mediator's or arbitrator's performance of his or her powers and duties under sub. (7m) s. 218.0136 or the arbitration plan referred to in sub. (7r) s. 218.0137. Every act or omission of a mediator or arbitrator is presumed to be a good faith act or omission. This presumption may be overcome only by clear and convincing evidence.

SB99, s. 281 Section 281. 218.01 (8) of the statutes is renumbered 218.0161 and amended to read:

SB99,97,10 218.0161 Penalties. Except for sub. (3) (a) 1., 3., 6., 7., 11., 12., 13., 20., 25., 29. and 30. s. 218.0116 (1) (a), (b), (cm), (d), (f), (fm), (g), (jm), (m), (o) and (om), and except for violations for sub. (2) (a), (2a), (3a) (c) or (7b) s. 218.0114 (1), 218.0117 (3), 218.0119 or 218.0147, any person violating this section ss. 218.0101 to 218.0163 may be required to forfeit not less than $25 nor more than $500 for each violation.

SB99, s. 282 Section 282. 218.01 (8m) of the statutes is renumbered 218.0162 and amended to read:

SB99,97,17 218.0162 Commencement of action. Upon the request of the licensor, the department of justice or the district attorney may commence an action in the name of the state to recover a forfeiture under sub. (8) s. 218.0161. An action under sub. (8) s. 218.0161 shall be commenced within 3 years after the occurrence of the unlawful act or practice which is the subject of the action.

SB99, s. 283 Section 283. 218.01 (9) of the statutes is renumbered 218.0163 and amended to read:

SB99,97,25 218.0163 Civil damages. (1) Without exhausting any administrative remedy available under an agreement or this section ss. 218.0101 to 218.0163, except as provided in sub. (3) (f) and (fm) s. 218.0116 (7) and (8), a licensee may recover damages in a court of competent jurisdiction for pecuniary loss, together with actual costs including a reasonable attorney fee fees, if the pecuniary loss is caused by any of the following:

SB99,98,3 (a) A violation by any other licensee of sub. (3) (a) 4., 11., 15., 16., 17., 22., 23., 24., 26., 32., 35., 36., 37., 38., 39., 40., 41. or 43. s. 218.0116 (1) (bm), (f), (h), (hm), (i), (km), (L), (Lm), (mm), (pm), (q), (qm), (r), (rm), (s), (sm), (t) or (u).

SB99,98,5 (b) Any unfair practice found by a licensor or the division of hearings and appeals under sub. (5) (a) s. 218.0152 (1).

SB99,98,8 (1m) If a court finds that a violation or practice described in par. (a) 1. or 2. sub. (1) (a) or (b) is wilful, a licensee shall recover damages in an amount equal to 3 times the pecuniary loss, together with actual costs including reasonable attorney fees.

SB99,98,13 (2) Any retail buyer, lessee or prospective lessee suffering pecuniary loss because of a violation by a licensee of sub. (3) (a) 4., 5., 6., 8., 9., 10., 11., 18., 25. or 31. s. 218.0116 (1) (bm), (c), (cm), (dm), (e), (em), (f), (im), (m) or (p) may recover damages for the loss in any court of competent jurisdiction together with costs, including reasonable attorney fees.

SB99, s. 284 Section 284. 218.0116 (1) (i) 1. of the statutes is created to read:

SB99,98,15 218.0116 (1) (i) 1. (intro.) In this paragraph:

SB99,98,18 a. "Due regard to the equities" means treatment in enforcing an agreement that is fair and equitable to a motor vehicle dealer or distributor and that is not discriminatory compared to similarly situated dealers or distributors.

SB99,98,23 b. "Just provocation" means a material breach by a motor vehicle dealer or distributor, due to matters within the dealer's or distributor's control, of a reasonable and necessary provision of an agreement and the breach is not cured within a reasonable time after written notice of the breach has been received from the manufacturer, importer or distributor.

Note: Recreates definitions previously contained in s. 218.01 (3) (a) 17., for proper placement consistent with current style.

SB99, s. 285 Section 285. 218.0116 (1) (im) 1. of the statutes is created to read:

SB99,99,2 218.0116 (1) (im) 1. In this paragraph, "bushing" means:

SB99,99,6 a. With respect to an order or contract of purchase, the practice of increasing the selling price of a motor vehicle above that originally quoted the purchaser as evidenced by a purchase order or contract which has been signed by both the purchaser and dealer licensee.

SB99,99,10 b. With respect to a consumer lease or prelease agreement, the practice of increasing the gross capitalized cost above that originally quoted the lessee or prospective lessee as evidenced by a consumer lease or prelease agreement which has been signed by both the lessee or prospective lessee and the dealer licensee.

Note: Recreates a definition previously contained in s. 218.01 (3) (a) 18., for proper placement consistent with current style. The former text referred to "this section", the only occurrence of the term "bushing" is in this statutory subunit. As a result, "section" is replaced by "paragraph".

SB99, s. 286 Section 286. 218.0116 (7) (d) 1d. of the statutes is created to read:

SB99,99,13 218.0116 (7) (d) 1d. "Closed" means the effective date of the termination or expiration of a dealership's or outlet's license or franchise, whichever is earlier.

Note: Recreates a definition previously contained in s. 218.01 (3) (f) 4. a., for proper placement consistent with current style.

SB99, s. 287 Section 287. 218.015 of the statutes is renumbered 218.0171, and 218.0171 (1) (c) and (e), as renumbered, are amended to read:

SB99,99,19 218.0171 (1) (c) "Manufacturer" means a manufacturer as defined in s. 218.01 (1) (L) 218.0101 (20) and agents of the manufacturer, including an importer, a distributor, factory branch, distributor branch and any warrantors of the manufacturer's motor vehicles, but not including a motor vehicle dealer.

SB99,99,21 (e) "Motor vehicle dealer" has the meaning given under s. 218.01 (1) (n) 218.0101 (23) (a).

SB99, s. 288 Section 288. 218.017 of the statutes is renumbered 218.0172, and 218.0172 (1) (b), (c), (d) and (e), as renumbered, are amended to read:

SB99,100,4 218.0172 (1) (b) "Consumer" has the meaning given in s. 218.015 218.0171 (1) (b).

SB99,100,5 (c) "Manufacturer" has the meaning given in s. 218.015 218.0171 (1) (c).

SB99,100,6 (d) "Motor vehicle" has the meaning given in s. 218.015 218.0171 (1) (d).

SB99,100,8 (e) "Motor vehicle dealer" means a motor vehicle dealer, as defined in s. 218.01 (1) (n) 218.0101 (23) (a), that sells new motor vehicles.

SB99, s. 289 Section 289. 218.12 (5) of the statutes is amended to read:

SB99,100,14 218.12 (5) The provision of s. 218.01 (3) 218.0116 relating to the denial, suspension and revocation of a motor vehicle salesperson's license shall apply to the denial, suspension and revocation of a mobile home salesperson's license so far as applicable, except that such provision does not apply to the denial, suspension or revocation of a license under sub. (3m).

SB99, s. 290 Section 290. 218.12 (6) of the statutes is amended to read:

SB99,100,18 218.12 (6) The provisions of s. 218.01 (3) (g) and (5) ss. 218.0116 (9) and 218.0152 shall apply to this section, mobile home sales practices and the regulation of travel trailer or mobile home salespersons, as far as applicable.

SB99, s. 291 Section 291. 218.205 (2) (a) of the statutes is amended to read:

SB99,100,22 218.205 (2) (a) Motor vehicle dealers licensed under s. 218.01 (2) 218.0114 who remove, but do not sell, as such, parts of motor vehicles prior to sale of such vehicles to motor vehicle salvage dealers or scrap metal processors.

SB99, s. 292 Section 292. 218.21 (1m) of the statutes is amended to read:

SB99,101,2 218.21 (1m) The department may not require information relating to the applicant's solvency or financial standing if the applicant provides a bond in the amount provided in sub. (4) and under conditions specified in s. 218.01 (2) (h) 2. 218.0114 (20) (b).

SB99, s. 293 Section 293. 218.21 (4) (a) of the statutes is amended to read:

SB99,101,9 218.21 (4) (a) Unless the applicant furnishes a bond, or other adequate collateral as security, of not less than $25,000 under conditions provided by s. 218.01 (2) (h) 2. 218.0114 (20) (b), every application shall be accompanied by a current financial statement to determine the applicant's solvency as required under sub. (1). Except as provided in par. (b), this paragraph does not apply to the application of a scrap metal processor.

SB99, s. 294 Section 294. 218.21 (6) of the statutes is amended to read:

SB99,101,12 218.21 (6) A bond may be required under conditions as provided by s. 218.01 (2) (h) 2. 218.0114 (20) (b).

SB99, s. 295 Section 295. 218.22 (1) (intro.) of the statutes is amended to read:

SB99,101,19 218.22 (1) (intro.) The department shall issue a license to the applicant for a motor vehicle salvage dealer's license upon the receipt of a properly completed application form accompanied by the fee required under sub. (2) (c) or (d), upon being satisfied that the applicant is financially solvent or that the applicant has furnished a bond, or other adequate collateral as security, of not less than $25,000 under conditions provided by s. 218.01 (2) (h) 2. 218.0114 (20) (b), and of good character and:

SB99, s. 296 Section 296. 218.22 (3) (m) of the statutes is amended to read:

SB99,101,22 218.22 (3) (m) Having sold a retail instalment contract to a sales finance company not licensed under s. 218.01 ss. 218.0101 to 218.0163.

SB99, s. 297 Section 297. 218.22 (5) of the statutes is amended to read:

SB99,102,3 218.22 (5) No salvage dealer licensed under ss. 218.205 to 218.23 shall be licensed as a dealer under s. 218.01 (2) 218.0114 at his or her salvage dealer location, provided that nothing herein shall prohibit licensing and transacting of both businesses at the same location where the salvage operations are physically separated.

SB99, s. 298 Section 298. 218.40 (3) of the statutes is amended to read:

SB99,102,9 218.40 (3) "Moped dealer" means any person, firm or corporation, who is engaged wholly or in part in the business of selling mopeds. Provided, however,, except that a person, firm or corporation who is also a motor vehicle dealer under s. 218.01 ss. 218.0101 to 218.0163 shall be governed and regulated by the provisions of s. 218.01 ss. 218.0101 to 218.0163 and not this section.

SB99, s. 299 Section 299. 218.505 of the statutes is amended to read:

SB99,102,13 218.505 Salvage pools to be licensed as wholesalers. No motor vehicle salvage pool may engage in business as such unless licensed as a wholesaler under s. 218.01 ss. 218.0101 to 218.0163.

SB99, s. 300 Section 300. 220.285 (1) of the statutes is amended to read:

SB99,102,25 220.285 (1) Any state bank, trust company bank, licensee under s. ss. 138.09, 138.12, 218.01 218.0101 to 218.0163, 218.02, 218.04 or 218.05 or ch. 217 may cause any or all records kept by such bank or licensee to be recorded, copied or reproduced by any photostatic, photographic or miniature photographic process or by optical imaging if the process employed correctly, accurately and permanently copies, reproduces or forms a medium for copying, reproducing or recording the original record on a film or other durable material. A bank or licensee may thereafter dispose of the original record after first obtaining the written consent of the division. This section, excepting that part of it which requires written consent of the division, is applicable to national banking associations insofar as it does not contravene federal law.

SB99, s. 301 Section 301. 227.43 (1) (bg) of the statutes is amended to read:

SB99,103,8 227.43 (1) (bg) Assign a hearing examiner to preside over any hearing or review under ss. 84.30 (18), 84.31 (6) (a), 85.013 (1), 86.073 (3), 86.16 (5), 86.195 (9) (b), 86.32 (1), 114.134 (4) (b), 114.135 (9), 114.20 (19), 175.05 (4) (b), 194.145 (1), 194.46, 218.01 (2) (bd) 2. and (c) 2., (3) (b), (c), (f) 1., (fm) 1. and (h) and (3c) (d) 218.0114 (7) (d) and (12) (b), 218.0116 (2), (4), (7) (a), (8) (a) and (10), 218.0131 (3), 218.11 (7) (a) and (b), 218.22 (4) (a) and (b), 218.32 (4) (a) and (b), 218.41 (4), 218.51 (5) (a) and (b), 341.09 (2m) (d), 342.26, 343.69 and 348.25 (9).

SB99, s. 302 Section 302. 340.01 (11) (d) of the statutes is amended to read:

SB99,103,12 340.01 (11) (d) A finance company licensed under s. ss. 138.09 or 218.01 218.0101 to 218.0163 who sells or offers for sale motor vehicles repossessed or foreclosed by it under the terms of a security contract.

SB99, s. 303 Section 303. 340.01 (28e) of the statutes is amended to read:

SB99,103,18 340.01 (28e) "Manufacturers buyback vehicle" means a motor vehicle repurchased by its manufacturer, or by an authorized distributor or dealer with compensation from the manufacturer, because of a nonconformity that was not corrected after a reasonable attempt to repair the nonconformity under s. 218.015 218.0171 or under a similar law of another state.

SB99, s. 304 Section 304. 340.01 (35e) of the statutes is amended to read: