Wisconsin Legislative Council
ACT MEMO
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Prepared by: David Moore, Principal Attorney May 6, 2024
2023 Wisconsin Act 164
[2023 Assembly Bill 230]
Recreational Vehicle Dealers,
Distributors, and Manufacturers
2023 Wisconsin Act 164 makes changes to the definition of “recreational vehicle,” subjects recreational
vehicle distributors and manufacturers to regulation by the Department of Transportation (DOT), and
creates a framework for regulating the relationship between recreational vehicle manufacturers,
distributors, and dealers.
BACKGROUND
State law requires that a person be licensed by the DOT before engaging in the business of selling
“recreational vehicles” to a consumer or to the retail market. For this purpose, prior law defined
“recreational vehicle” to mean “a vehicle that is designed to be towed upon a highway by a motor
vehicle, that is equipped and used, or intended to be used, primarily for temporary or recreational
human habitation, that has walls of rigid construction, and that does not exceed 45 feet in length.”
The requirement to be licensed to engage in the business of selling recreational vehicles applies to
recreational vehicle dealers and recreational vehicle salespersons. Subject to certain exceptions, a
recreational vehicle dealer is “a person who, for a commission or other thing of value, sells, exchanges,
buys or rents, or offers or attempts to negotiate a sale or exchange of an interest in a recreational vehicle
or who is engaged wholly or in part in the business of selling recreational vehicles, whether or not the
recreational vehicles are owned by the person.” The term “salesperson” is defined to mean “any person
who is employed by a manufacturer or dealer to sell or lease recreational vehicles.”
2023 WISCONSIN ACT 164
The act modifies the definition of “recreational vehicle” to:
Extend the maximum length of a recreational vehicle from 45 to 46 feet.
Remove the requirement that a recreational vehicle have walls of rigid construction.
Enumerate as included in the definition of recreational vehicle all of the following: a camping
trailer, fifth-wheel recreational vehicle, park model recreational vehicle, and travel trailer. The act
provides definitions for each of these specific types of recreational vehicles.
The act also makes various changes to DOT’s regulation of recreational vehicle sales. It requires that a
recreational vehicle dealer, as a condition of licensure, provide and maintain in force a bond or
irrevocable letter of credit of not less than $50,000. It also imposes department licensure requirements
on any recreational vehicle manufacturer or distributor that sells recreational vehicles in this state. - 2 -
Finally, the act establishes requirements regulating the relationship between recreational vehicle
manufacturers, distributors, and dealers. These provisions include the following:
Dealer Agreements Required. Under the act, a manufacturer or distributor must enter into a
dealer agreement to sell a recreational vehicle to or through a dealer in this state. Likewise, a dealer
may not sell a new recreational vehicle in this state without having first entered into a dealer
agreement with a manufacturer or distributor. Every dealer agreement must include certain
components, including a designation of the area of sales responsibility exclusively assigned to the
dealer.
Termination of Dealer Agreements Regulated. The act establishes procedures for
terminating, canceling, or failing to renew a dealer agreement. Under the act, a manufacturer or
distributor may terminate, cancel, or fail to renew a dealer agreement only for good cause. A dealer
may terminate, cancel, or fail to renew a model, make-line, or entire agreement with a manufacturer
or distributor with or without good cause at any time by giving 30 days’ written notice to the
manufacturer. If the dealer shows good cause exists to terminate the agreement, the manufacturer
or distributor is required to repurchase certain inventory if the dealer so elects.
Dealer Ownership Changes. The act requires a dealer who wishes to make a change in
ownership to give the manufacturer or distributor written notice at least 10 business days before the
closing, along with certain documents, and provides that the manufacturer or distributor may not
object to the proposed change except for certain specified reasons.
Warranty Obligations. The act establishes requirements regarding warranty obligations,
including that a warrantor specify a dealer’s obligation in writing, compensate the dealer for
warranty service performed by the dealer that is covered by the warranty, and provide the dealer
with the schedule of compensation to be paid and the time allowances for the performances of any
work and service.
Inspection of Recreational Vehicles. The act establishes various obligations for dealers and
manufacturers and distributors regarding new recreational vehicles that are damaged prior to
transit to the dealer or are damaged in transit to the dealer when the manufacturer or distributor
has selected the carrier or means of transportation.
Coercion Prohibited. The act prohibits manufacturers or distributors from coercing or
attempting to coerce a dealer into taking various actions.
Dispute Resolution. The act provides mechanisms for resolving disputes between a dealer,
manufacturer, distributor, or warrantor. The act requires a dealer, manufacturer, distributor, or
warrantor injured by a violation of the act by another dealer, manufacturer, distributor, or
warrantor to attempt to resolve the dispute through mediation before the party alleged to be injured
may bring a civil action in circuit court.
Effective date: October 1, 2024
For a full history of the bill, visit the Legislature’s bill history page.
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