SB99,53,53
218.0116
(1) (q) Being a manufacturer, factory branch or distributor who
4engages in any action which transfers to a motor vehicle dealer any responsibility of
5the manufacturer, factory branch or distributor under s.
218.015 218.0171.
SB99, s. 157
6Section
157. 218.01 (3) (a) 36. (intro.) of the statutes is renumbered 218.0116
7(1) (qm) (intro.).
SB99, s. 158
8Section
158. 218.01 (3) (a) 36. a. of the statutes is renumbered 218.0116 (1)
9(qm) 1. and amended to read:
SB99,53,1210
218.0116
(1) (qm) 1. Fails to notify the department of transportation of any
11revision or addition to an agreement as required under
sub. (2) (bd) 1. s. 218.0114 (7)
12(a) 2.
SB99, s. 159
13Section
159. 218.01 (3) (a) 36. b. of the statutes is renumbered 218.0116 (1)
14(qm) 2. and amended to read:
SB99,53,1715
218.0116
(1) (qm) 2. Fails to revise or remove portions of an agreement that the
16department of transportation declares to contain provisions which are inconsistent
17with
sub. (2) (bm) s. 218.0114 (9).
SB99, s. 160
18Section
160. 218.01 (3) (a) 36. c. of the statutes is renumbered 218.0116 (1)
19(qm) 3. and amended to read:
SB99,53,2320
218.0116
(1) (qm) 3. Requires or coerces a dealer or distributor to
execute sign 21an agreement, as a condition of obtaining or continuing a franchise, that contains
22provisions that are void or prohibited under
sub. (2) (bm) s. 218.0114 (9) or attempts
23to enforce an agreement with void or prohibited provisions.
SB99, s. 161
24Section
161. 218.01 (3) (a) 36. d. of the statutes is renumbered 218.0116 (1)
25(qm) 4. (intro.) and amended to read:
SB99,54,9
1218.0116
(1) (qm) 4. (intro.) Requires or coerces a dealer or distributor to
2execute sign an agreement that requires arbitration as a condition of obtaining or
3continuing a franchise, unless the dealer or distributor has the option of signing an
4otherwise identical agreement without the arbitration provision or unless the
5agreement provides for arbitration on a case-by-case basis and only when both
6parties elect to refer the matter to arbitration. This
subd. 36. d. subdivision does not
7apply to a manufacturer or distributor who enters into an agreement that creates a
8new franchise for a new line make of motor vehicle, if
the each of the following is
9applicable:
SB99,54,11
10a. The arbitration provision was the subject of good faith negotiations with a
11representative group of dealers
, and if each.
SB99,54,14
12b. Each dealer voluntarily accepts the arbitration provision after receiving a
13franchise offering circular under s. 553.27 (4) that discloses the existence and effect
14of the arbitration provision
, and if the.
SB99,54,17
15c. The manufacturer or dealer files a copy of the franchise offering circular and
16proof of good faith negotiation and voluntary acceptance of the arbitration with any
17filing required under
sub. (2) (bd) 1. s. 218.0114 (7) (a).
SB99, s. 162
18Section
162. 218.01 (3) (a) 37. of the statutes is renumbered 218.0116 (1) (r)
19and amended to read:
SB99,54,2320
218.0116
(1) (r) Being a manufacturer, distributor or importer who fails to
21designate in writing the area of sales responsibility assigned to a motor vehicle
22dealer or who changes or attempts to change an area of sales responsibility to avoid
23the requirements of
par. (f) sub. (7).
SB99, s. 163
24Section
163. 218.01 (3) (a) 38. of the statutes is renumbered 218.0116 (1) (rm)
25and amended to read:
SB99,55,3
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.
SB99, s. 164
4Section
164. 218.01 (3) (a) 39. of the statutes is renumbered 218.0116 (1) (s)
5and amended to read:
SB99,55,86
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).
SB99, s. 165
9Section
165. 218.01 (3) (a) 40. of the statutes is renumbered 218.0116 (1) (sm)
10and amended to read:
SB99,55,1111
218.0116
(1) (sm) Having violated s.
218.017 218.0172.
SB99, s. 166
12Section
166. 218.01 (3) (a) 41. of the statutes is renumbered 218.0116 (1) (t)
13and amended to read:
SB99,55,2114
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.
SB99, s. 167
22Section
167. 218.01 (3) (a) 42. of the statutes is renumbered 218.0116 (1) (tm)
23and amended to read:
SB99,56,3
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).
SB99, s. 168
4Section
168. 218.01 (3) (a) 43. of the statutes is renumbered 218.0116 (1) (u).
SB99, s. 169
5Section
169. 218.01 (3) (ag) of the statutes is renumbered 218.0116 (1g) and
6amended to read:
SB99,56,157
218.0116
(1g) (a) A license described in
sub. (2) (d) s. 218.0114 (14) shall be
8denied, restricted, limited or suspended if the applicant or licensee is an individual
9who fails to comply, after appropriate notice, with a subpoena or warrant issued by
10the department of workforce development or a county child support agency under s.
1159.53 (5) and related to paternity or child support proceedings or who is delinquent
12in making court-ordered payments of child or family support, maintenance, birth
13expenses, medical expenses or other expenses related to the support of a child or
14former spouse, as provided in a memorandum of understanding entered into under
15s. 49.857.
SB99,56,1816
(b) A license described in
par. (d) 1., 2., 3. or 5.
s. 218.0114 (14) (a), (b), (c) or (e) 17shall be suspended or revoked if the department of revenue certifies under s. 73.0301
18that the applicant or licensee is liable for delinquent taxes.
SB99,56,2119
(c) No provision of
this section ss. 218.0101 to 218.0163 that entitles an
20applicant or licensee to a notice or hearing applies to a denial, restriction, limitation,
21suspension or revocation of a license under this
paragraph subsection.
SB99, s. 170
22Section
170. 218.01 (3) (am) of the statutes is renumbered 218.0116 (1m) and
23amended to read:
SB99,56,2524
218.0116
(1m) (a) A license described in
sub. (2) (dr) s. 218.0114 (16) shall be
25denied if any of the
follow following applies:
SB99,57,2
11. The applicant fails to provide the information required under
sub. (2) (ig) 1.
2s. 218.0114 (21g) (a).
SB99,57,73
2. The department of revenue certifies under s. 73.0301 that the applicant is
4liable for delinquent taxes. An applicant whose license is denied under this
subd. 1.
5b. subdivision for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1.
6b. and hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or
7hearing under this
subsection section.
SB99,57,178
3. The applicant is an individual who fails to comply, after appropriate notice,
9with a subpoena or warrant issued by the department of workforce development or
10a county child support agency under s. 59.53 (5) and related to paternity or child
11support proceedings or who is delinquent in making court-ordered payments of child
12or family support, maintenance, birth expenses, medical expenses or other expenses
13related to the support of a child or former spouse, as provided in a memorandum of
14understanding entered into under s. 49.857. An applicant whose application is
15denied under this
subd. 1. c. subdivision is entitled to a notice and hearing under s.
1649.857 but is not entitled to any other notice or hearing under
this section ss.
17218.0101 to 218.0163.
SB99,58,318
(b) A license described in
sub. (2) (dr) s. 218.0114 (16) shall be restricted or
19suspended if the licensee is an individual who fails to comply, after appropriate
20notice, with a subpoena or warrant issued by the department of workforce
21development or a county child support agency under s. 59.53 (5) and related to
22paternity or child support proceedings or who is delinquent in making court-ordered
23payments of child or family support, maintenance, birth expenses, medical expenses
24or other expenses related to the support of a child or former spouse, as provided in
25a memorandum of understanding entered into under s. 49.857. A licensee whose
1license is restricted or suspended under this
subdivision paragraph is entitled to a
2notice and hearing under s. 49.857 but is not entitled to any other notice or hearing
3under
this section ss. 218.0101 to 218.0163.
SB99,58,94
(c) A license described in
sub. (2) (dr) s. 218.0114 (16) shall be revoked if the
5department of revenue certifies under s. 73.0301 that the licensee is liable for
6delinquent taxes. A licensee whose license is revoked under this
subdivision 7paragraph for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and
8hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing
9under this
subsection section.
SB99, s. 171
10Section
171. 218.01 (3) (b) of the statutes is renumbered 218.0116 (2) and
11amended to read:
SB99,58,1712
218.0116
(2) The licensor may without
prior notice deny the application for a
13license within 60 days after receipt
thereof of the application by written notice to the
14applicant, stating the grounds for
such the denial. Within 30 days after
such 15receiving the notice, the applicant may petition the division of hearings and appeals
16to conduct a hearing to review the denial, and a hearing shall be scheduled with
17reasonable promptness.
Note: "[P]rior" is inserted to eliminate an internal inconsistency.
SB99, s. 172
18Section
172. 218.01 (3) (bf) of the statutes is renumbered 218.0116 (3) and
19amended to read:
SB99,59,420
218.0116
(3) (a) 1. Except as provided in subd.
1. b. 2., the department of
21transportation shall not license
an applicant as a dealer
an applicant for the sale or
22lease of motor vehicles at retail unless
such the applicant owns or leases a vehicle
23display lot and a permanent building
wherein in which there are facilities to display
24motor vehicles and
facilities to repair functional and nonfunctional parts of motor
1vehicles
and, where replacement parts, repair tools and equipment to service motor
2vehicles are kept, and at which
place of business shall be kept and maintained the
3books, records and files necessary to conduct the
dealer's business
shall be kept and
4maintained.
SB99,59,6
51m. A residence, tent or temporary stand is not a sufficiently permanent
place
6of business building within the meaning of
this paragraph subd. 1.
SB99,59,117
2. The requirements in subd. 1.
a. that an applicant own or lease a vehicle
8display lot and that the permanent building owned or leased by the applicant contain
9facilities to display motor vehicles do not apply to persons who are engaged only in
10the leasing of motor vehicles and who do not maintain an inventory of motor vehicles
11offered for lease.
SB99,59,1712
(b) An approved service contract with an established repair shop having the
13repair parts and repair facilities specified in
subd.
par. (a) 1. shall serve in lieu of the
14applicant's owning or leasing the applicant's own repair facilities if
such the service
15connection is within a reasonable distance from the applicant's place of business and
16if
such the service connection guarantees in writing the making of the repairs or
17replacements ordered by the dealer.
SB99,59,1918
(c) This
paragraph subsection does not apply to persons who deal only in
19mopeds or motor bicycles.
SB99, s. 173
20Section
173. 218.01 (3) (c) of the statutes is renumbered
218.0116 (4) and amended to read:
SB99,60,221
218.0116
(4) (a) No license may be suspended or revoked except after a hearing
22thereon on the possible suspension or revocation. Except as provided in
subd. 2. par.
23(b), the licensor shall give the licensee at least 5 days' notice of the time and place of
24such the hearing
, and the. The order suspending or revoking
such the license shall
1not be effective until after 10 days' written notice
thereof of the order to the licensee,
2after
such the hearing
under this paragraph has been
had held.
SB99,60,73
(b) When in the licensor's opinion the best interest of the public or the trade
4demands it, for conduct or under circumstances specified in
this section ss. 218.0101
5to 218.0163 or in rules promulgated by the licensor, the licensor may suspend a
6license upon not less than 24 hours' notice of hearing and with not less than 24 hours'
7notice of the suspension of the license.
SB99,60,148
(c) Matters involving suspensions or revocations brought before the
9department of transportation shall be heard and decided upon by the division of
10hearings and appeals. If the department of transportation requests the division of
11hearings and appeals to hear a matter brought before the department of
12transportation under
subd. 2. par. (b), the division of hearings and appeals shall hear
13and decide the matter within 30 days after the date of the department of
14transportation's request.
SB99, s. 174
15Section
174. 218.01 (3) (d) of the statutes is renumbered 218.0116 (5) and
16amended to read:
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).