11. Paying dealers an amount for labor that is less than the amount dealers
charge their retail customers for labor.
12. Requiring or coercing dealers to grant rights of first refusal or other
preferences related to purchasing dealer franchises.
13. Requiring that arbitration or legal proceedings take place outside this
state.
The bill also specifies that a franchisor may, without violating the restrictions
identified above, offer by auction powersports vehicles to all dealers and provide
certain programs to dealers.
Under the bill, a franchisor may be required to forfeit not less than $100 nor
more than $1,000 for each violation of these restrictions. The Department of
Agriculture, Trade and Consumer Protection (DATCP) has jurisdiction to investigate
and enforce these restrictions, and DATCP, represented by the Department of
Justice, or a district attorney may bring an action on behalf of the state. In addition,
any dealer injured by a violation of these restrictions may bring a civil action against
the violating franchisor for temporary or permanent injunctive relief or for damages
or both. The dealer may recover actual damages caused by the violation, as well as
costs and reasonable attorney fees.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB302, s. 1 1Section 1. 165.25 (4) (ar) of the statutes, as affected by 2009 Wisconsin Act 28,
2is amended to read:
SB302,3,33 165.25 (4) (ar) The department of justice shall furnish all legal services
4required by the department of agriculture, trade and consumer protection relating
5to the enforcement of ss. 91.68, 93.73, 100.171, 100.173, 100.174, 100.175, 100.177,
6100.18, 100.182, 100.195, 100.20, 100.205, 100.207, 100.209, 100.21, 100.28, 100.37,

1100.42, 100.50, 100.51, 100.55, and 846.45, subch. XI of ch. 218, and chs. 126, 136,
2344, 704, 707, and 779, together with any other services as are necessarily connected
3to the legal services.
SB302, s. 2 4Section 2. Subchapter XI of chapter 218 [precedes 218.60] of the statutes is
5created to read:
SB302,3,66 Chapter 218
SB302,3,97 Subchapter XI
8 POWERSPORTS VEHICLE MANUFACTURERS,
9 DISTRIBUTORS, AND dealers
SB302,3,10 10218.60 Definitions. In this subchapter:
SB302,3,15 11(1) "Affiliate" means, with respect to a powersports vehicle manufacturer or
12powersports vehicle distributor or factory branch of either, a parent company, wholly
13or partially owned subsidiary, or any other person controlled by or under common
14control with the powersports vehicle manufacturer, powersports vehicle distributor,
15or factory branch.
SB302,3,16 16(2) "All-terrain vehicle" has the meaning given in s. 340.01 (2g).
SB302,3,17 17(3) "Business entity" has the meaning given in s. 13.62 (5).
SB302,3,19 18(4) "Department" means the department of agriculture, trade and consumer
19protection.
SB302,3,23 20(5) "Golf cart" means a vehicle whose speed attainable in one mile does not
21exceed 20 miles per hour on a paved, level surface, and is designed and intended to
22convey one or more persons and equipment to play the game of golf in an area
23designated as a golf course.
SB302,4,3 24(6) "Lightweight utility vehicle" means an engine-driven device having a gross
25weight of more than 700 pounds but not more than 1,999 pounds that is designed to

1travel on 4 or more low-pressure tires, is equipped with a cargo area, and is used
2primarily off-highway. "Lightweight utility vehicle" does not include golf carts or
3low-speed vehicles.
SB302,4,6 4(7) "Low-pressure tire" means a tire that is designed to be mounted on a rim
5with a maximum diameter of 14 inches and to be inflated with an operating pressure
6not to exceed 20 pounds per square inch as recommended by the manufacturer.
SB302,4,10 7(8) "Low-speed vehicle" means a low-speed vehicle, as defined in 49 CFR
8571.3
, that satisfies the equipment standards under 49 CFR 571.500 and that was
9originally manufactured to meet the applicable equipment standards under 49 CFR
10571.500
. "Low-speed vehicle" does not include a golf cart.
SB302,4,12 11(9) "Off-road motorcycle" means a motorcycle, as defined in s. 340.01 (32), that
12is not required to be registered under ch. 341.
SB302,4,13 13(10) "Personal watercraft" has the meaning given in s. 30.50 (9d).
SB302,4,15 14(11) "Powersports vehicle" means an all-terrain vehicle, snowmobile,
15lightweight utility vehicle, personal watercraft, or off-road motorcycle.
SB302,4,16 16(12) (a) "Powersports vehicle dealer" means any of the following:
SB302,4,1817 1. A business entity engaged in the business of selling any powersports vehicle
18for a profit to retail customers in this state.
SB302,4,2019 2. An all-terrain vehicle dealer registered with the department of natural
20resources under s. 23.33 (2) (dm) 1.
SB302,4,2221 3. A snowmobile dealer registered with the department of natural resources
22under s. 350.12 (3) (c) 1.
SB302,4,2523 (b) "Powersports vehicle dealer" does not include any dealer licensed under
24subch. I of this chapter with respect to any category of powersports vehicle for which
25that license applies or any dealer located outside this state.
SB302,5,1
1(13) (a) "Powersports vehicle distributor" means any of the following:
SB302,5,42 1. A business entity that is engaged in the business of selling or distributing
3any powersports vehicle to powersports vehicle dealers or that maintains distributor
4representatives.
SB302,5,65 2. An all-terrain vehicle distributor registered with the department of natural
6resources under s. 23.33 (2) (dm) 1.
SB302,5,87 3. A snowmobile distributor registered with the department of natural
8resources under s. 350.12 (3) (c) 1.
SB302,5,109 4. A factory branch of any powersports vehicle distributor described in subds.
101. to 3.
SB302,5,1311 (b) "Powersports vehicle distributor" does not include any distributor licensed
12under subch. I of this chapter with respect to any category of powersports vehicle for
13which that license applies.
SB302,5,14 14(14) (a) "Powersports vehicle manufacturer" means any of the following:
SB302,5,1615 1. A business entity engaged in the business of manufacturing any powersports
16vehicle for sale to the public.
SB302,5,1817 2. An all-terrain vehicle manufacturer registered with the department of
18natural resources under s. 23.33 (2) (dm) 1.
SB302,5,2019 3. A snowmobile manufacturer registered with the department of natural
20resources under s. 350.12 (3) (c) 1.
SB302,5,2221 4. A factory branch of any powersports vehicle manufacturer described in
22subds. 1. to 3.
SB302,5,2523 (b) "Powersports vehicle manufacturer" does not include any manufacturer
24licensed under subch. I of this chapter with respect to any category of powersports
25vehicle for which that license applies.
SB302,6,5
1(15) "Retail sales program" means a program offered to a powersports vehicle
2dealer by either a powersports vehicle manufacturer or a powersports vehicle
3distributor intended to provide to a retail customer an incentive, such as an instant
4rebate, an extended warranty, cash, or financing, to purchase a powersports vehicle,
5part, or accessory.
SB302,6,6 6(16) "Snowmobile" has the meaning given in s. 340.01 (58a).
SB302,6,12 7(17) "Wholesale order program" means a sales program offered by a
8powersports vehicle manufacturer or a powersports vehicle distributor to a
9powersports vehicle dealer in which the powersports vehicle dealer purchases
10powersports vehicles directly from the powersports vehicle manufacturer or
11powersports vehicle distributor for the purpose of reselling the powersports vehicles
12to retail customers.
SB302,6,16 13218.61 Prohibited practices by powersports vehicle manufacturers
14and distributors.
No powersports vehicle manufacturer or powersports vehicle
15distributor, and no agent, officer, factory representative, or affiliate of a powersports
16vehicle manufacturer or powersports vehicle distributor, may do any of the following:
SB302,6,18 17(1) Discriminate between powersports vehicle dealers by doing any of the
18following:
SB302,6,2519 (a) Selling or offering to sell a powersports vehicle to one powersports vehicle
20dealer under a wholesale order program and not offering the same wholesale order
21program to all powersports vehicle dealers. This paragraph does not prohibit a
22wholesale order program from providing different benefits to different powersports
23vehicle dealers based on the level of the wholesale orders placed by the powersports
24vehicle dealers if the benefits are not tied to incentives or benefits available to the
25powersports vehicle dealers under a retail sales program.
SB302,7,3
1(b) Tying incentives that a powersports vehicle dealer receives under any retail
2sales program to any order that a powersports vehicle dealer places under a
3wholesale order program.
SB302,7,54 (c) Offering any retail sales program that includes parts, accessories, prepaid
5maintenance, and warranties tied to a wholesale order program.
SB302,7,126 (d) Adopting a method or changing an existing method for the allocation,
7scheduling, or delivery of new powersports vehicles, parts, or accessories to its
8dealers that is not fair, reasonable, and equitable. Upon the request of a powersports
9vehicle dealer, a powersports vehicle manufacturer shall disclose in writing to the
10dealer the general method by which new powersports vehicles, parts, and accessories
11are allocated, scheduled, or delivered to its dealers handling the same line or make
12of vehicles.
SB302,7,18 13(2) Make to a powersports vehicle dealer a secret payment or allowance of
14rebates, refunds, commissions, or unearned discounts, whether in the form of money
15or an extension of special services or privileges to some but not all powersports
16vehicle dealers purchasing upon like terms and conditions, if the payment or
17allowance tends to destroy competition and causes injury to any competitor of the
18powersports vehicle dealer.
SB302,7,24 19(3) Give preferential treatment to some powersports vehicle dealers over
20others by refusing or failing to deliver, in reasonable quantities and within a
21reasonable time after receipt of an order, to any dealer holding a franchise for a line
22or make of powersports vehicles sold or distributed by the manufacturer, any new
23powersports vehicle, part, or accessory, if the powersports vehicle, part, or accessory
24is being delivered to other dealers.
SB302,8,4
1(4) Compete with a powersports vehicle dealer by, for more than one year,
2acting in the capacity of a powersports vehicle dealer or owning, operating, or
3controlling, whether directly or indirectly, a powersports vehicle dealership in this
4state.
SB302,8,8 5(5) Prevent or attempt to prevent a dealer from making reasonable changes in
6the capital structure of a dealership or in the means by which the dealership is
7financed if the powersports vehicle dealer meets the reasonable, written, and
8uniformly applied capital requirements determined by the manufacturer.
SB302,8,15 9(6) Unreasonably require the powersports vehicle dealer to change the location
10of, or require any substantial alterations to, the powersports vehicle dealer's place
11of business. This subsection does not prohibit a powersports vehicle manufacturer
12or powersports vehicle distributor and a powersports vehicle dealer from entering
13into an arms-length agreement in which the parties exchange bargained-for
14consideration and part of the bargained-for consideration is changing locations of
15the dealership or altering the powersports vehicle dealer's place of business.
SB302,8,17 16(7) Fail to hold harmless and indemnify a powersports vehicle dealer against
17losses, including lawsuits and court costs, arising from any of the following:
SB302,8,2118 (a) The manufacture or performance of any powersports vehicle, part, or
19accessory if the lawsuit involves representations by the manufacturer on the
20manufacture or performance of a powersports vehicle, and there is no claim of
21negligence on the part of the powersports vehicle dealer.
SB302,8,2322 (b) Damage to merchandise in transit where the manufacturer specifies the
23carrier.
SB302,9,3
1(c) The manufacturer's failure to defend product liability suits concerning the
2powersports vehicle, part, or accessory provided to the dealer where there is no
3independent claim against the powersports vehicle dealer.
SB302,9,54 (d) Any other act performed by the manufacturer that is not requested by the
5powersports vehicle dealer.
SB302,9,7 6(8) Unfairly prevent or attempt to prevent a powersports vehicle dealer from
7receiving reasonable compensation for the value of a powersports vehicle.
SB302,9,9 8(9) Deny a powersports vehicle dealer the right of free association with any
9other powersports vehicle dealer for any lawful purpose.
SB302,9,12 10(10) Charge increased prices without having given written notice to the
11powersports vehicle dealer at least 30 days before the effective date of the price
12increase.
SB302,9,14 13(11) Reimburse anyone other than an authorized powersports vehicle dealer
14for warranty service performed on a powersports vehicle.
SB302,9,17 15(12) Pay less than the amount of the manufacturer's suggested retail price for
16parts used by powersports vehicle dealers to perform warranty work under a
17manufacturer's warranty provided to a retail customer.
SB302,9,19 18(13) Pay to a powersports vehicle dealer an amount for labor that is less than
19the amount the dealer charges its retail customers for labor.
SB302,9,22 20(14) Require or coerce a powersports vehicle dealer to grant a manufacturer a
21right of first refusal or other preference to purchase the dealer's franchise or place
22of business or both unless there is not another financially qualified purchaser.
SB302,9,24 23(15) Require that any arbitration proceeding or legal action between the
24parties take place in a jurisdiction other than this state.
SB302,10,4
1218.62 Approved practices by powersports vehicle manufacturers and
2distributors.
Notwithstanding s. 218.61, a powersports vehicle manufacturer or
3powersports vehicle distributor, and its respective agents, officers, factory
4representatives, and affiliates, may do any of the following:
SB302,10,6 5(1) Offer by auction powersports vehicles to all powersports vehicle dealers
6under the same terms and not based on a wholesale order program.
SB302,10,9 7(2) Provide tiered wholesale programs, tiered wholesale flooring plans, tiered
8retail programs, and tiered demonstration unit programs to powersports vehicle
9dealers.
SB302,10,13 10(3) Offer programs to all powersports vehicle dealers based on customer
11satisfaction scores that provide benefits to powersports vehicle dealers that obtain
12a customer satisfaction score set by the powersports vehicle distributor or
13powersports vehicle manufacturer.
SB302,10,16 14218.63 Penalties and civil actions. (1) Any person who violates s. 218.61
15may be required to forfeit not less than $100 nor more than $1,000 for each separate
16violation.
SB302,10,19 17(2) The department shall investigate violations of s. 218.61. The department
18or the department of justice, after consulting with the department, or any district
19attorney, upon informing the department, may on behalf of the state:
SB302,10,2320 (a) Bring an action for temporary or permanent injunctive or other relief for any
21violation of s. 218.61. The court may, upon entry of final judgment, award restitution
22when appropriate to any person suffering loss because of a violation of s. 218.61 if
23proof of such loss is submitted to the satisfaction of the court.
SB302,10,2524 (b) Bring an action in any court of competent jurisdiction for the penalties
25authorized under sub. (1).
SB302,11,9
1(3) In addition to any other available remedies, any person injured by a
2violation of s. 218.61 may bring a civil action against the person who violated s.
3218.61 for temporary or permanent injunctive relief or for damages or both. Upon
4finding that the defendant is violating or has violated s. 218.61, the court shall enjoin
5the defendant from continuing the violation, regardless of whether the plaintiff has
6suffered actual damages. In any action authorized under this subsection, any person
7who violates s. 218.61 shall be liable for the amount of actual damages caused by the
8violation and, notwithstanding s. 814.04 (1), the costs of the action, including
9reasonable attorney fees.
SB302, s. 3 10Section 3. Initial applicability.
SB302,11,1211 (1) This act first applies to actions taken, and events occurring, on the effective
12date of this subsection.
SB302, s. 4 13Section 4. Effective date.
SB302,11,1514 (1) This act takes effect on the first day of the 3rd month beginning after
15publication.
SB302,11,1616 (End)
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