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).
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: