6. Requires an RV manufacturer or distributor to allow an RV dealer to
designate a family member as a successor to its dealer agreement.
7. Specifies obligations with regard to warranty repairs.
8. Provides that DOT may administratively fine any person who violates the
provisions of the bill up to $1,000 for each violation.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report.
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:
AB1112,1 1Section 1. 218.10 (1b) of the statutes is created to read:
AB1112,2,52 218.10 (1b) “Area of sales responsibility” means the geographical area agreed
3to by the dealer and the manufacturer or distributor in a dealer agreement within
4which the dealer has the exclusive right to display or sell the manufacturer's new
5recreational vehicles of a particular line-make.
AB1112,2 6Section 2. 218.10 (1d) of the statutes is created to read:
AB1112,2,97 218.10 (1d) “Component manufacturer” means a person, firm, corporation, or
8business entity that engages in the manufacturing of components, accessories, or
9parts used in manufacturing recreational vehicles.
AB1112,3 10Section 3. 218.10 (1i) of the statutes is created to read:
AB1112,3,4
1218.10 (1i) “Dealer agreement” means a written agreement or contract entered
2into by a dealer and a manufacturer or distributor that fixes the rights and
3responsibilities of the parties and pursuant to which the dealer sells new
4recreational vehicles.
AB1112,4 5Section 4. 218.10 (1n) of the statutes is created to read:
AB1112,3,76 218.10 (1n) “Distributor” means a person, firm, corporation, or business entity
7that purchases new recreational vehicles for resale to dealers.
AB1112,5 8Section 5. 218.10 (1o) of the statutes is created to read:
AB1112,3,119 218.10 (1o) “Factory campaign” means an effort on the part of a warrantor to
10contact recreational vehicle owners or dealers in order to address a part or equipment
11issue.
AB1112,6 12Section 6. 218.10 (1p) of the statutes is created to read:
AB1112,3,1413 218.10 (1p) “Family member” means an individual's spouse or an individual's
14child, grandchild, parent, sibling, niece, or nephew or the spouse of any of these.
AB1112,7 15Section 7. 218.10 (1q) of the statutes is created to read:
AB1112,3,2116 218.10 (1q) “Fifth-wheel travel trailer" means a vehicle mounted on wheels
17that is designed to provide temporary living quarters for recreational, camping, or
18travel use, that is of a size and weight that a special highway movement permit is
19not required, and that is designed to be towed by a motor vehicle that contains a
20towing mechanism that is mounted above or forward of the rear axle of the tow
21vehicle.
AB1112,8 22Section 8. 218.10 (1t) of the statutes is created to read:
AB1112,3,2523 218.10 (1t) “Line-make” means a specific series of recreational vehicle
24products, the sale of which may be authorized by a dealer agreement, that satisfies
25all of the following:
AB1112,4,2
1(a) Is targeted to a particular market segment, as determined by the decor,
2features, equipment, size, weight, and price range.
AB1112,4,53 (b) Has lengths and interior floor plans that distinguish the series of
4recreational vehicle products from other series with substantially the same decor,
5features, equipment, weight, and price.
AB1112,4,86 (c) Belongs to a single, distinct classification of recreational vehicle product
7type having a substantial degree of commonality in the construction of the chassis,
8frame, and body.
AB1112,9 9Section 9. 218.10 (2) of the statutes is created to read:
AB1112,4,1110 218.10 (2) “Model” is a series of recreational vehicle products identified by a
11common series trade name or trademark that is a subset of a line-make.
AB1112,10 12Section 10. 218.10 (7m) of the statutes is created to read:
AB1112,4,1413 218.10 (7m) “Park model recreational vehicle” means a recreational vehicle
14that is all of the following:
AB1112,4,1615 (a) Designed and marketed as temporary living quarters for recreational,
16camping, travel, or seasonal use.
AB1112,4,1717 (b) Not permanently affixed to real property for use as a permanent dwelling.
AB1112,4,1918 (c) Built on a single chassis mounted on wheels with a gross trailer area not
19exceeding 400 square feet in the setup mode.
AB1112,4,2120 (d) Certified by the manufacturer as complying with the ANSI A119.5 Park
21Model Recreational Vehicle Standard.
AB1112,11 22Section 11. 218.10 (7w) of the statutes is created to read:
AB1112,4,2423 218.10 (7w) “Proprietary part” means any part manufactured by or for and sold
24exclusively by the manufacturer.
AB1112,12 25Section 12. 218.10 (8m) of the statutes is amended to read:
AB1112,5,6
1218.10 (8m) “Recreational vehicle" has the meaning given in s. 340.01 (48r)
2means a vehicle that is designed to be towed upon a highway by a motor vehicle, that
3is equipped and used, or intended to be used, primarily for temporary or recreational
4human habitation, that has walls of rigid construction, and that does not exceed 45
5feet in length. “Recreational vehicle” includes a fifth-wheel travel trailer, park
6model recreational vehicle, travel trailer, and truck camper
.
AB1112,13 7Section 13. 218.10 (8u) of the statutes is created to read:
AB1112,5,98 218.10 (8u) “Transient customer” means a customer who is temporarily
9traveling through a dealer's area of sales responsibility.
AB1112,14 10Section 14. 218.10 (8v) of the statutes is created to read:
AB1112,5,1411 218.10 (8v) “Travel trailer” means a vehicle that is mounted on wheels, that
12is designed to provide temporary living quarters for recreational, camping, or travel
13use, and that is of a size or weight that a special highway movement permit is not
14required when towed by a motor vehicle.
AB1112,15 15Section 15. 218.10 (8w) of the statutes is created to read:
AB1112,5,1916 218.10 (8w) “Truck camper" means a portable unit that is constructed to
17provide temporary living quarters for recreational, camping, or travel use and that
18consists of a roof, floor, and sides and that is designed to be loaded onto and unloaded
19from the back of a pickup truck.
AB1112,16 20Section 16. 218.10 (10) of the statutes is created to read:
AB1112,5,2321 218.10 (10) “Warrantor” means a person, firm, corporation, or business entity
22that gives a warranty in connection with a new recreational vehicle or parts,
23accessories, or components of a new recreational vehicle.
AB1112,17 24Section 17. 218.10 (11) of the statutes is created to read:
AB1112,6,3
1218.10 (11) “Warranty” does not include service contracts, mechanical or other
2insurance, or extended warranties sold for separate consideration by a dealer or
3other person not controlled by a manufacturer.
AB1112,18 4Section 18. 218.161 of the statutes is created to read:
AB1112,6,8 5218.161 Dealer agreement requirement. (1) A manufacturer or
6distributor may not sell a new recreational vehicle in this state to or through a dealer
7without having first entered into a dealer agreement with a dealer that has been
8signed by both parties.
AB1112,6,13 9(2) The manufacturer shall designate the area of sales responsibility
10exclusively assigned to a dealer in the dealer agreement and may not change the area
11of sales responsibility or contract with another dealer for sale of the same model or
12line-make, as specified in the agreement, in the designated area of sales
13responsibility during the duration of the agreement.
AB1112,6,17 14(3) The terms of the dealer agreement, including the area of sales
15responsibility, may not be reviewed or changed during the duration of the dealer
16agreement without the written mutual consent of the parties. The duration of the
17dealer agreement shall be stated in the dealer agreement.
AB1112,6,21 18(4) A dealer may not sell a new recreational vehicle in this state without having
19first entered into a dealer agreement with a manufacturer or distributor and may not
20sell outside the area of sales responsibility designated in the agreement under sub.
21(2).
AB1112,6,24 22(5) A manufacturer may not unilaterally issue a policy or procedure that
23violates or substantially alters a provision of the dealer agreement during the
24duration of the agreement.
AB1112,7,3
1(6) A manufacturer shall distribute new recreational vehicles to its dealers in
2a fair and equitable manner. If requested, a manufacturer shall provide information
3on its manner of distribution.
AB1112,7,5 4(7) A manufacturer shall provide its dealer with adequate technical data to
5perform proper service and repairs.
AB1112,19 6Section 19. 218.162 of the statutes is created to read:
AB1112,7,12 7218.162 Termination of dealer agreement. (1) (a) A manufacturer or
8distributor, directly or through any officer, agent, or employee, may terminate,
9cancel, or fail to renew a model, line-make, or entire dealer agreement only with good
10cause, and, upon renewal, may not require additional inventory stocking
11requirements or increased retail sales targets in excess of the market growth in the
12dealer's area of sales responsibility.
AB1112,7,1613 (b) A manufacturer or distributor has the burden of showing good cause for
14terminating, canceling, or failing to renew a model, line-make, or dealer agreement
15with a dealer. For purposes of determining whether there is good cause for the
16proposed action, any of the following factors may be considered:
AB1112,7,1817 1. The extent of the affected dealer's penetration in the relevant market area
18for the relevant model or line-make.
AB1112,7,1919 2. The nature and extent of the dealer's investment in its business.
AB1112,7,2120 3. The adequacy of the dealer's service facilities, equipment, parts, supplies,
21and personnel.
AB1112,7,2222 4. The effect of the proposed action on the community.
AB1112,7,2423 5. The extent and quality of the dealer's service under recreational vehicle
24warranties.
AB1112,8,3
16. The failure to follow agreed-upon, reasonable procedures or standards
2related to the overall operation of the dealership consistent with the law and the
3dealer agreement.
AB1112,8,44 7. The dealer's performance under the terms of its dealer agreement.
AB1112,8,75 (c) 1. Except as provided in this paragraph, a manufacturer or distributor shall
6provide a dealer with at least 120 days' prior written notice of termination,
7cancellation, or nonrenewal of a model, line-make, or entire dealer agreement.
AB1112,8,178 2. The notice under subd. 1. shall state all reasons for the proposed termination,
9cancellation, or nonrenewal and shall state that if, within 30 days following receipt
10of the notice, the dealer provides to the manufacturer or distributor a written notice
11of intent to cure all claimed deficiencies, the dealer will then have 120 days following
12receipt of the notice to rectify the deficiencies. If the deficiencies are rectified within
13120 days, the manufacturer's or distributor's notice is voided. If the dealer fails to
14provide the notice of intent to cure the deficiencies in the prescribed period, the
15termination, cancellation, or nonrenewal takes effect 30 days after the dealer's
16receipt of the notice unless the dealer has new and untitled inventory on hand that
17may be disposed of as provided under sub. (3).
AB1112,8,1918 3. The notice period under subd. 1. may be reduced to 30 days if the grounds
19for termination, cancellation, or nonrenewal are due to any of the following:
AB1112,8,2020 a. A dealer or one of its owners being convicted of a felony.
AB1112,8,2321 b. The abandonment or closing of the business operations of the dealer for 10
22consecutive business days unless the closing is due to an act of God, strike, labor
23difficulty, or other cause over which the dealer has no control.
AB1112,8,2524 c. A significant misrepresentation by the dealer materially affecting the
25business relationship.
AB1112,9,2
1d. A suspension of, revocation of, or refusal to renew the dealer's license by the
2department.
AB1112,9,53 4. The notice provisions of this paragraph do not apply if the reason for
4termination, cancellation, or nonrenewal is insolvency, the occurrence of an
5assignment for the benefit of creditors, or bankruptcy.
AB1112,9,11 6(2) A dealer may terminate, cancel, or fail to renew a model, line-make, or
7entire dealer agreement with a manufacturer or distributor with or without good
8cause at any time by giving 30 days' written notice to the manufacturer. If the
9termination, cancellation, or nonrenewal is for good cause, the dealer has the burden
10of showing good cause. Any of the following items, among others, may be deemed
11good cause for the proposed action by a dealer:
AB1112,9,1212 (a) A manufacturer being convicted of a felony.
AB1112,9,1513 (b) The business operations of the manufacturer have been abandoned or closed
14for 10 consecutive business days, unless the closing is due to an act of God, strike,
15labor difficulty, or other cause over which the manufacturer has no control.
AB1112,9,1716 (c) A significant misrepresentation by the manufacturer materially affecting
17the business relationship.
AB1112,9,1918 (d) A material violation of this subchapter that is not cured within 30 days after
19written notice by the dealer.
AB1112,9,2120 (e) A declaration by the manufacturer of insolvency, the occurrence of an
21assignment for the benefit of creditors, or bankruptcy.
AB1112,9,2322 (f) A manufacturer's material violation of the dealer agreement that is not
23cured within 120 days after written notice by the dealer.
AB1112,9,2424 (g) Manufacturer coercion of the dealer under s. 218.166.
AB1112,10,2
1(h) Manufacturer violation of area of sales responsibility protections or
2allowing other dealers to violate these protections.
AB1112,10,6 3(3) If the dealer agreement is terminated, canceled, or not renewed by the
4dealer for good cause, the manufacturer shall, at the election of the dealer and within
545 days after termination, cancellation, or nonrenewal, repurchase all of the
6following:
AB1112,10,187 (a) All new, untitled recreational vehicles that were acquired from the
8manufacturer or distributor within 18 months before the date of the notice of
9termination, cancellation, or nonrenewal that have not been used, except for
10demonstration purposes, and that have not been altered or damaged, at 100 percent
11of the net invoice cost, including transportation, less applicable rebates and
12discounts to the dealer. If any of the recreational vehicles repurchased is damaged,
13the amount due to the dealer shall be reduced by the cost to repair the damaged
14recreational vehicle. Damage prior to delivery to the dealer will not disqualify
15repurchase under this subsection. Any repurchased recreational vehicle must be
16paid for in full before the recreational vehicle is removed from the dealer's premises.
17Upon payment under this paragraph, recreational vehicles must be immediately
18surrendered to the manufacturer.
AB1112,10,2319 (b) All undamaged accessories or proprietary parts sold to the dealer for resale
20within the 12 months prior to termination, cancellation, or nonrenewal, if
21accompanied by the original invoice, at 105 percent of the original net price paid to
22the manufacturer or distributor to compensate the dealer for handling, packing, and
23shipping the parts.
AB1112,11,524 (c) Any properly functioning diagnostic equipment, special tools, current
25signage, or other equipment and machinery at 100 percent of the dealer's net cost

1plus freight, destination, delivery, and distribution charges and sales taxes, if any,
2if the equipment, tools, signage, or machinery was purchased by the dealer within
35 years before termination, cancellation, or nonrenewal and upon the
4manufacturer's or distributor's request and can no longer be used in the normal
5course of the dealer's ongoing business.
AB1112,11,9 6(4) If a dealer agreement is terminated, canceled, or not renewed by the
7manufacturer or distributor without good cause in violation of sub. (1), the
8manufacturer or distributor shall repurchase dealer recreational vehicles,
9accessories, and other equipment in the manner provided in sub. (3).
AB1112,11,12 10(5) (a) A dealer is not prohibited from selling any remaining in-stock inventory
11of a particular model or line-make after a dealer agreement has been terminated,
12cancelled, or not renewed by the manufacturer.
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