1 | | - | Date of enactment: March 21, 2024 |
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2 | | - | 2023 Assembly Bill 230 Date of publication*: March 22, 2024 |
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3 | | - | 2023 WISCONSIN ACT 164 |
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4 | | - | AN ACT to amend 218.10 (8m), 218.11 (title), 218.15, 340.01 (6m), 340.01 (18m), 340.01 (48r), 341.25 (1) (i), |
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5 | | - | 348.08 (1) (i) and 348.08 (1) (j); to repeal and recreate 218.11 (7) (b); and to create 218.10 (1b), 218.10 (1c), 218.10 |
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6 | | - | (1d), 218.10 (1i), 218.10 (1n), 218.10 (1o), 218.10 (1p), 218.10 (1q), 218.10 (1t), 218.10 (2), 218.10 (7m), 218.10 |
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7 | | - | (7w), 218.10 (8u), 218.10 (8v), 218.10 (10), 218.10 (11), 218.11 (2) (e), 218.11 (4), 218.11 (6) (o), 218.161, 218.162, |
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8 | | - | 218.163, 218.164, 218.165, 218.166, 218.167 and 348.07 (2) (L) of the statutes; relating to: recreational vehicle |
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9 | | - | manufacturers, distributors, and dealers and the definition and operation of recreational vehicles. |
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10 | | - | The people of the state of Wisconsin, represented in |
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11 | | - | senate and assembly, do enact as follows: |
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12 | | - | SECTION 1. 218.10 (1b) of the statutes is created to |
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13 | | - | read: |
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14 | | - | 218.10 (1b) “Area of sales responsibility” means the |
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15 | | - | geographical area agreed to by the dealer and the manu- |
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16 | | - | facturer or distributor in a dealer agreement within which |
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17 | | - | the dealer has the exclusive right to display or sell the |
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18 | | - | manufacturer’s new recreational vehicles of a particular |
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19 | | - | line−make. |
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20 | | - | SECTION 2. 218.10 (1c) of the statutes is created to |
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21 | | - | read: |
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22 | | - | 218.10 (1c) “Camping trailer” means a vehicle with |
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23 | | - | a collapsible or folding structure designed to provide |
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24 | | - | temporary living quarters for recreational, camping, or |
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25 | | - | travel use and to be towed upon a highway by a motor |
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| 1 | + | LRB-0774/1 |
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| 2 | + | EVM:cjs |
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| 3 | + | 2023 - 2024 LEGISLATURE |
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| 4 | + | 2023 ASSEMBLY BILL 230 |
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| 5 | + | April 6, 2023 - Introduced by Representatives KRUG, CONSIDINE, CONLEY, DOYLE, |
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| 6 | + | GREEN, JOERS, SCHMIDT and SUBECK, cosponsored by Senators TESTIN, |
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| 7 | + | HESSELBEIN, FEYEN, SPREITZER and WANGGAARD. Referred to Committee on |
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| 8 | + | Consumer Protection. |
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| 9 | + | ***AUTHORS SUBJECT TO CHANGE*** |
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| 10 | + | AN ACT to amend 218.10 (8m), 340.01 (6m), 340.01 (18m), 340.01 (48r), 341.25 |
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| 11 | + | (1) (i), 348.08 (1) (i) and 348.08 (1) (j); and to create 218.10 (1b), 218.10 (1c), |
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| 12 | + | 218.10 (1d), 218.10 (1i), 218.10 (1n), 218.10 (1o), 218.10 (1p), 218.10 (1q), 218.10 |
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| 13 | + | (1t), 218.10 (2), 218.10 (7m), 218.10 (7w), 218.10 (8u), 218.10 (8v), 218.10 (8w), |
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| 14 | + | 218.10 (10), 218.10 (11), 218.161, 218.162, 218.163, 218.164, 218.165, 218.166, |
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| 15 | + | 218.167 and 218.17 (1) of the statutes; relating to: recreational vehicle |
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| 16 | + | manufacturers, distributors, and dealers, the definition of recreational |
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| 17 | + | vehicles, and providing a penalty. |
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| 18 | + | Analysis by the Legislative Reference Bureau |
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| 19 | + | This bill provides additional regulation of recreational vehicle (RV) dealers, |
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| 20 | + | manufacturers, and distributors and expands the definition of recreational vehicle |
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| 21 | + | for purposes of vehicle registration and equipment requirements. |
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| 22 | + | Under current law, RV dealers must be licensed by the Department of |
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| 23 | + | Transportation. An RV dealer license may be denied, suspended, or revoked for a |
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| 24 | + | number of reasons, including failure to comply with licensing requirements, |
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| 25 | + | committing certain types of fraud, or engaging in unconscionable business practices. |
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| 26 | + | In addition, persons who violate the statutes governing RV dealer licensure may be |
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| 27 | + | required to forfeit between $25 and $100 for a first offense and may be fined between |
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| 28 | + | $25 and $100 for a second or subsequent offense within three years. |
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| 36 | + | 8 - 2 -2023 - 2024 Legislature LRB-0774/1 |
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| 37 | + | EVM:cjs |
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| 38 | + | ASSEMBLY BILL 230 |
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| 39 | + | This bill provides additional regulation of RV dealers and regulates various |
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| 40 | + | aspects of the relationship between RV dealers and RV manufacturers or |
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| 41 | + | distributors. Specifically, among other things, the bill does all of the following: |
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| 42 | + | 1. Requires a dealer agreement between each RV dealer and the manufacturer |
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| 43 | + | or distributor of the RVs the dealer sells. The bill further specifies certain contents |
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| 44 | + | of the agreement, including an exclusive sales area for each RV dealer. |
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| 45 | + | 2. Prohibits RV manufacturers and distributors from terminating or failing to |
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| 46 | + | renew a dealer agreement without good cause. The bill provides criteria that must |
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| 47 | + | be considered when assessing whether good cause exists. |
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| 48 | + | 3. Requires an RV manufacturer or distributor to provide notice before |
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| 49 | + | terminating or nonrenewing a dealer agreement and provides that a termination or |
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| 50 | + | nonrenewal must be rescinded upon certain actions by an RV dealer. |
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| 51 | + | 4. Provides that an RV dealer may terminate or nonrenew an agreement with |
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| 52 | + | an RV manufacturer upon 30 days' notice. |
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| 53 | + | 5. In certain cases, requires an RV manufacturer to repurchase certain |
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| 54 | + | products provided to RV dealers, including new RVs, certain RV accessories, and |
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| 55 | + | certain repair equipment, upon termination of a dealer agreement. |
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| 56 | + | 6. Requires an RV manufacturer or distributor to allow an RV dealer to |
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| 57 | + | designate a family member as a successor to its dealer agreement. |
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| 58 | + | 7. Specifies obligations with regard to warranty repairs. |
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| 59 | + | 8. Provides that DOT may administratively fine any person who violates the |
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| 60 | + | provisions of the bill up to $1,000 for each violation. |
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| 61 | + | Current law defines “recreational vehicle” for purposes of vehicle registration, |
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| 62 | + | vehicle equipment standards and certain other vehicle regulation. This bill modifies |
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| 63 | + | and expands the definition of “recreational vehicle” for these purposes. Among the |
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| 64 | + | changes, “recreational vehicle” is specifically expanded to include a camping trailer |
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| 65 | + | and a “truck camper,” which is defined as “a portable unit that is constructed to |
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| 66 | + | provide temporary living quarters for recreational, camping, or travel use and that |
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| 67 | + | consists of a roof, floor, and sides and that is designed to be loaded onto and unloaded |
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| 68 | + | from the back of a pickup truck.” The vehicles that satisfy the expanded definition |
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| 69 | + | may not be operated on a highway unless registered with DOT and must meet certain |
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| 70 | + | equipment requirements, including requirements related to brakes, safety glass, |
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| 71 | + | and coupling. |
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| 72 | + | Because this bill creates a new crime or revises a penalty for an existing crime, |
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| 73 | + | the Joint Review Committee on Criminal Penalties may be requested to prepare a |
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| 74 | + | report. |
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| 75 | + | For further information see the state fiscal estimate, which will be printed as |
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| 76 | + | an appendix to this bill. |
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| 77 | + | The people of the state of Wisconsin, represented in senate and assembly, do |
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| 78 | + | enact as follows: |
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| 79 | + | SECTION 1. 218.10 (1b) of the statutes is created to read:1 - 3 -2023 - 2024 Legislature |
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| 80 | + | LRB-0774/1 |
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| 81 | + | EVM:cjs |
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| 82 | + | SECTION 1 |
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| 83 | + | ASSEMBLY BILL 230 |
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| 84 | + | 218.10 (1b) “Area of sales responsibility” means the geographical area agreed |
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| 85 | + | to by the dealer and the manufacturer or distributor in a dealer agreement within |
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| 86 | + | which the dealer has the exclusive right to display or sell the manufacturer's new |
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| 87 | + | recreational vehicles of a particular line-make. |
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| 88 | + | SECTION 2. 218.10 (1c) of the statutes is created to read: |
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| 89 | + | 218.10 (1c) “Camping trailer” means a vehicle with a collapsible or folding |
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| 90 | + | structure designed to provide temporary living quarters for recreational, camping, |
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| 91 | + | or travel use and to be towed upon a highway by a motor vehicle. |
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| 92 | + | SECTION 3. 218.10 (1d) of the statutes is created to read: |
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| 93 | + | 218.10 (1d) “Component manufacturer” means a person, firm, corporation, or |
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| 94 | + | business entity that engages in the manufacturing of components, accessories, or |
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| 95 | + | parts used in manufacturing recreational vehicles. |
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| 96 | + | SECTION 4. 218.10 (1i) of the statutes is created to read: |
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| 97 | + | 218.10 (1i) “Dealer agreement” means a written agreement or contract entered |
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| 98 | + | into by a dealer and a manufacturer or distributor that fixes the rights and |
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| 99 | + | responsibilities of the parties and pursuant to which the dealer sells new |
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| 100 | + | recreational vehicles. |
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| 101 | + | SECTION 5. 218.10 (1n) of the statutes is created to read: |
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| 102 | + | 218.10 (1n) “Distributor” means a person, firm, corporation, or business entity |
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| 103 | + | that purchases new recreational vehicles for resale to dealers. |
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| 104 | + | SECTION 6. 218.10 (1o) of the statutes is created to read: |
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| 105 | + | 218.10 (1o) “Factory campaign” means an effort on the part of a warrantor to |
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| 106 | + | contact recreational vehicle owners or dealers in order to address a part or equipment |
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| 107 | + | issue. |
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| 108 | + | SECTION 7. 218.10 (1p) of the statutes is created to read: |
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| 133 | + | 25 - 4 -2023 - 2024 Legislature LRB-0774/1 |
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| 134 | + | EVM:cjs |
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| 135 | + | SECTION 7 ASSEMBLY BILL 230 |
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| 136 | + | 218.10 (1p) “Family member” means an individual's spouse or an individual's |
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| 137 | + | child, grandchild, parent, sibling, niece, or nephew or the spouse of any of these. |
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| 138 | + | SECTION 8. 218.10 (1q) of the statutes is created to read: |
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| 139 | + | 218.10 (1q) “Fifth-wheel travel trailer" means a vehicle mounted on wheels |
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| 140 | + | that is designed to provide temporary living quarters for recreational, camping, or |
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| 141 | + | travel use, that is of a size and weight that a special highway movement permit is |
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| 142 | + | not required, and that is designed to be towed by a motor vehicle that contains a |
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| 143 | + | towing mechanism that is mounted above or forward of the rear axle of the tow |
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27 | | - | SECTION 3. 218.10 (1d) of the statutes is created to |
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28 | | - | read: |
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29 | | - | 218.10 (1d) “Component manufacturer” means a |
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30 | | - | person, firm, corporation, or business entity that engages |
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31 | | - | in the manufacturing of components, accessories, or parts |
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32 | | - | used in manufacturing recreational vehicles. |
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33 | | - | SECTION 4. 218.10 (1i) of the statutes is created to |
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34 | | - | read: |
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35 | | - | 218.10 (1i) “Dealer agreement” means a written |
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36 | | - | agreement or contract entered into by a dealer and a man- |
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37 | | - | ufacturer or distributor that fixes the rights and responsi- |
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38 | | - | bilities of the parties and pursuant to which the dealer |
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39 | | - | sells new recreational vehicles. |
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40 | | - | SECTION 5. 218.10 (1n) of the statutes is created to |
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41 | | - | read: |
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42 | | - | 218.10 (1n) “Distributor” means a resident or non- |
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43 | | - | resident who, in whole or in part, sells or distributes new |
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44 | | - | recreational vehicles to recreational vehicle dealers or |
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45 | | - | who maintains distributor representatives. |
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46 | | - | SECTION 6. 218.10 (1o) of the statutes is created to |
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47 | | - | read: |
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48 | | - | 218.10 (1o) “Factory campaign” means an effort on |
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49 | | - | the part of a warrantor to contact recreational vehicle |
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50 | | - | owners or dealers in order to address a part or equipment |
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51 | | - | issue. |
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52 | | - | SECTION 7. 218.10 (1p) of the statutes is created to |
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53 | | - | read: |
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54 | | - | * Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s |
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55 | | - | partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 164 2023 Assembly Bill 230 |
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56 | | - | 218.10 (1p) “Family member” means an individual’s |
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57 | | - | spouse or an individual’s child, grandchild, parent, sib- |
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58 | | - | ling, niece, or nephew or the spouse of any of these. |
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59 | | - | SECTION 8. 218.10 (1q) of the statutes is created to |
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60 | | - | read: |
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61 | | - | 218.10 (1q) “Fifth−wheel recreational vehicle” |
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62 | | - | means a recreational vehicle that is mounted on wheels, |
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63 | | - | that is of a size and weight such that a special highway |
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64 | | - | movement permit is not required, and that is designed to |
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65 | | - | be towed by a motor vehicle utilizing a kingpin and 5th |
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66 | | - | wheel coupling device mounted above or forward of the |
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67 | | - | rear axle of the tow vehicle. |
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68 | | - | SECTION 9. 218.10 (1t) of the statutes is created to |
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69 | | - | read: |
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70 | | - | 218.10 (1t) “Line−make” means a specific series of |
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71 | | - | recreational vehicle products, the sale of which may be |
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72 | | - | authorized by a dealer agreement, that satisfies all of the |
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| 145 | + | SECTION 9. 218.10 (1t) of the statutes is created to read: |
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| 146 | + | 218.10 (1t) “Line-make” means a specific series of recreational vehicle |
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| 147 | + | products, the sale of which may be authorized by a dealer agreement, that satisfies |
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| 148 | + | all of the following: |
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| 149 | + | (a) Is targeted to a particular market segment, as determined by the decor, |
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| 150 | + | features, equipment, size, weight, and price range. |
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| 151 | + | (b) Has lengths and interior floor plans that distinguish the series of |
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| 152 | + | recreational vehicle products from other series with substantially the same decor, |
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| 153 | + | features, equipment, weight, and price. |
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| 154 | + | (c) Belongs to a single, distinct classification of recreational vehicle product |
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| 155 | + | type having a substantial degree of commonality in the construction of the chassis, |
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| 156 | + | frame, and body. |
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| 157 | + | SECTION 10. 218.10 (2) of the statutes is created to read: |
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| 158 | + | 218.10 (2) “Model” is a series of recreational vehicle products identified by a |
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| 159 | + | common series trade name or trademark that is a subset of a line-make. |
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| 160 | + | SECTION 11. 218.10 (7m) of the statutes is created to read: |
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| 187 | + | EVM:cjs |
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| 188 | + | SECTION 11 |
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| 189 | + | ASSEMBLY BILL 230 |
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| 190 | + | 218.10 (7m) “Park model recreational vehicle” means a recreational vehicle |
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| 191 | + | that is all of the following: |
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| 192 | + | (a) Designed and marketed as temporary living quarters for recreational, |
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| 193 | + | camping, travel, or seasonal use. |
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| 194 | + | (b) Not permanently affixed to real property for use as a permanent dwelling. |
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| 195 | + | (c) Built on a single chassis mounted on wheels with a gross trailer area not |
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| 196 | + | exceeding 400 square feet in the setup mode. |
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| 197 | + | (d) Certified by the manufacturer as complying with the ANSI A119.5 Park |
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| 198 | + | Model Recreational Vehicle Standard. |
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| 199 | + | SECTION 12. 218.10 (7w) of the statutes is created to read: |
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| 200 | + | 218.10 (7w) “Proprietary part” means any part manufactured by or for and sold |
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| 201 | + | exclusively by the manufacturer. |
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| 202 | + | SECTION 13. 218.10 (8m) of the statutes is amended to read: |
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| 203 | + | 218.10 (8m) “Recreational vehicle" has the meaning given in s. 340.01 (48r) |
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| 204 | + | means a vehicle that is designed to be towed upon a highway by a motor vehicle, that |
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| 205 | + | is equipped and used, or intended to be used, primarily for temporary or recreational |
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| 206 | + | human habitation, and that does not exceed 45 feet in length. “Recreational vehicle” |
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| 207 | + | includes a camping trailer, fifth-wheel travel trailer, park model recreational |
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| 208 | + | vehicle, travel trailer, and truck camper. |
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| 209 | + | SECTION 14. 218.10 (8u) of the statutes is created to read: |
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| 210 | + | 218.10 (8u) “Transient customer” means a customer who is temporarily |
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| 211 | + | traveling through a dealer's area of sales responsibility. |
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| 212 | + | SECTION 15. 218.10 (8v) of the statutes is created to read: |
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| 213 | + | 218.10 (8v) “Travel trailer” means a vehicle that is mounted on wheels, that |
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| 214 | + | is designed to provide temporary living quarters for recreational, camping, or travel |
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| 239 | + | 25 - 6 -2023 - 2024 Legislature LRB-0774/1 |
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| 240 | + | EVM:cjs |
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| 241 | + | SECTION 15 ASSEMBLY BILL 230 |
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| 242 | + | use, and that is of a size or weight that a special highway movement permit is not |
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| 243 | + | required when towed by a motor vehicle. |
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| 244 | + | SECTION 16. 218.10 (8w) of the statutes is created to read: |
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| 245 | + | 218.10 (8w) “Truck camper" means a portable unit that is constructed to |
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| 246 | + | provide temporary living quarters for recreational, camping, or travel use and that |
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| 247 | + | consists of a roof, floor, and sides and that is designed to be loaded onto and unloaded |
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| 248 | + | from the back of a pickup truck. |
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| 249 | + | SECTION 17. 218.10 (10) of the statutes is created to read: |
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| 250 | + | 218.10 (10) “Warrantor” means a person, firm, corporation, or business entity |
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| 251 | + | that gives a warranty in connection with a new recreational vehicle or parts, |
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| 252 | + | accessories, or components of a new recreational vehicle. |
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| 253 | + | SECTION 18. 218.10 (11) of the statutes is created to read: |
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| 254 | + | 218.10 (11) “Warranty” does not include service contracts, mechanical or other |
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| 255 | + | insurance, or extended warranties sold for separate consideration by a dealer or |
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| 256 | + | other person not controlled by a manufacturer. |
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| 257 | + | SECTION 19. 218.161 of the statutes is created to read: |
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| 258 | + | 218.161 Dealer agreement requirement. (1) A manufacturer or |
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| 259 | + | distributor may not sell a new recreational vehicle in this state to or through a dealer |
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| 260 | + | without having first entered into a written dealer agreement with a dealer that has |
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| 261 | + | been signed by both parties. |
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| 262 | + | (2) The manufacturer shall designate the area of sales responsibility |
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| 263 | + | exclusively assigned to a dealer in the dealer agreement and may not change the area |
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| 264 | + | of sales responsibility or contract with another dealer for sale of the same model or |
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| 265 | + | line-make, as specified in the agreement, in the designated area of sales |
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| 266 | + | responsibility during the duration of the agreement. |
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| 294 | + | SECTION 19 |
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| 295 | + | ASSEMBLY BILL 230 |
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| 296 | + | (3) The terms of the dealer agreement, including the area of sales |
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| 297 | + | responsibility, may not be reviewed or changed during the duration of the dealer |
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| 298 | + | agreement without the written mutual consent of the parties. The duration of the |
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| 299 | + | dealer agreement shall be stated in the dealer agreement. |
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| 300 | + | (4) A dealer may not sell a new recreational vehicle in this state without having |
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| 301 | + | first entered into a dealer agreement with a manufacturer or distributor and may not |
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| 302 | + | sell outside the area of sales responsibility designated in the agreement under sub. |
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| 303 | + | (2). |
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| 304 | + | (5) A manufacturer may not unilaterally issue a policy or procedure that |
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| 305 | + | violates or substantially alters a provision of the dealer agreement during the |
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| 306 | + | duration of the agreement. |
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| 307 | + | (6) A manufacturer shall distribute new recreational vehicles to its dealers in |
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| 308 | + | a fair and equitable manner. If requested, a manufacturer shall provide information |
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| 309 | + | on its manner of distribution. |
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| 310 | + | (7) A manufacturer shall provide its dealer with adequate technical data to |
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| 311 | + | perform proper service and repairs. |
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| 312 | + | SECTION 20. 218.162 of the statutes is created to read: |
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| 313 | + | 218.162 Termination of dealer agreement. (1) (a) A manufacturer or |
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| 314 | + | distributor, directly or through any officer, agent, or employee, may terminate, |
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| 315 | + | cancel, or fail to renew a model, line-make, or entire dealer agreement only with good |
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| 316 | + | cause, and, upon renewal, may not require additional inventory stocking |
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| 317 | + | requirements or increased retail sales targets in excess of the market growth in the |
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| 318 | + | dealer's area of sales responsibility. |
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| 319 | + | (b) A manufacturer or distributor has the burden of showing good cause for |
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| 320 | + | terminating, canceling, or failing to renew a model, line-make, or dealer agreement |
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| 347 | + | SECTION 20 ASSEMBLY BILL 230 |
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| 348 | + | with a dealer. For purposes of determining whether there is good cause for the |
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| 349 | + | proposed action, any of the following factors may be considered: |
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| 350 | + | 1. The extent of the affected dealer's penetration in the relevant market area |
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| 351 | + | for the relevant model or line-make. |
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| 352 | + | 2. The nature and extent of the dealer's investment in its business. |
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| 353 | + | 3. The adequacy of the dealer's service facilities, equipment, parts, supplies, |
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| 354 | + | and personnel. |
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| 355 | + | 4. The effect of the proposed action on the community. |
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| 356 | + | 5. The extent and quality of the dealer's service under recreational vehicle |
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| 357 | + | warranties. |
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| 358 | + | 6. The failure to follow agreed-upon, reasonable procedures or standards |
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| 359 | + | related to the overall operation of the dealership consistent with the law and the |
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| 360 | + | dealer agreement. |
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| 361 | + | 7. The dealer's performance under the terms of its dealer agreement. |
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| 362 | + | (c) 1. Except as provided in this paragraph, a manufacturer or distributor shall |
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| 363 | + | provide a dealer with at least 120 days' prior written notice of termination, |
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| 364 | + | cancellation, or nonrenewal of a model, line-make, or entire dealer agreement. |
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| 365 | + | 2. The notice under subd. 1. shall state all reasons for the proposed termination, |
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| 366 | + | cancellation, or nonrenewal and shall state that if, within 30 days following receipt |
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| 367 | + | of the notice, the dealer provides to the manufacturer or distributor a written notice |
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| 368 | + | of intent to cure all claimed deficiencies, the dealer will then have 120 days following |
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| 369 | + | receipt of the notice to rectify the deficiencies. If the deficiencies are rectified within |
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| 370 | + | 120 days, the manufacturer's or distributor's notice is voided. If the dealer fails to |
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| 371 | + | provide the notice of intent to cure the deficiencies in the prescribed period, the |
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| 372 | + | termination, cancellation, or nonrenewal takes effect 30 days after the dealer's |
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| 397 | + | 25 - 9 -2023 - 2024 Legislature |
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| 398 | + | LRB-0774/1 |
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| 399 | + | EVM:cjs |
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| 400 | + | SECTION 20 |
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| 401 | + | ASSEMBLY BILL 230 |
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| 402 | + | receipt of the notice unless the dealer has new and untitled inventory on hand that |
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| 403 | + | may be disposed of as provided under sub. (3). |
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| 404 | + | 3. The notice period under subd. 1. may be reduced to 30 days if the grounds |
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| 405 | + | for termination, cancellation, or nonrenewal are due to any of the following: |
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| 406 | + | a. A dealer or one of its owners being convicted of a felony. |
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| 407 | + | b. The abandonment or closing of the business operations of the dealer for 10 |
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| 408 | + | consecutive business days unless the closing is due to an act of God, strike, labor |
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| 409 | + | difficulty, or other cause over which the dealer has no control. |
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| 410 | + | c. A significant misrepresentation by the dealer materially affecting the |
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| 411 | + | business relationship. |
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| 412 | + | d. A suspension of, revocation of, or refusal to renew the dealer's license by the |
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| 413 | + | department. |
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| 414 | + | 4. The notice provisions of this paragraph do not apply if the reason for |
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| 415 | + | termination, cancellation, or nonrenewal is insolvency, the occurrence of an |
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| 416 | + | assignment for the benefit of creditors, or bankruptcy. |
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| 417 | + | (2) A dealer may terminate, cancel, or fail to renew a model, line-make, or |
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| 418 | + | entire dealer agreement with a manufacturer or distributor with or without good |
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| 419 | + | cause at any time by giving 30 days' written notice to the manufacturer. If the |
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| 420 | + | termination, cancellation, or nonrenewal is for good cause, the dealer has the burden |
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| 421 | + | of showing good cause. Any of the following items, among others, may be deemed |
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| 422 | + | good cause for the proposed action by a dealer: |
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| 423 | + | (a) A manufacturer being convicted of a felony. |
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| 424 | + | (b) The business operations of the manufacturer have been abandoned or closed |
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| 425 | + | for 10 consecutive business days, unless the closing is due to an act of God, strike, |
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| 426 | + | labor difficulty, or other cause over which the manufacturer has no control. |
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| 452 | + | EVM:cjs |
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| 453 | + | SECTION 20 ASSEMBLY BILL 230 |
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| 454 | + | (c) A significant misrepresentation by the manufacturer materially affecting |
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| 455 | + | the business relationship. |
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| 456 | + | (d) A material violation of this subchapter that is not cured within 30 days after |
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| 457 | + | written notice by the dealer. |
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| 458 | + | (e) A declaration by the manufacturer of insolvency, the occurrence of an |
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| 459 | + | assignment for the benefit of creditors, or bankruptcy. |
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| 460 | + | (f) A manufacturer's material violation of the dealer agreement that is not |
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| 461 | + | cured within 120 days after written notice by the dealer. |
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| 462 | + | (g) Manufacturer coercion of the dealer under s. 218.166. |
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| 463 | + | (h) Manufacturer violation of area of sales responsibility protections or |
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| 464 | + | allowing other dealers to violate these protections. |
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| 465 | + | (3) If the dealer agreement is terminated, canceled, or not renewed by the |
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| 466 | + | dealer for good cause, the manufacturer shall, at the election of the dealer and within |
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| 467 | + | 45 days after termination, cancellation, or nonrenewal, repurchase all of the |
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74 | | - | (a) Is targeted to a particular market segment, as |
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75 | | - | determined by the decor, features, equipment, size, |
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76 | | - | weight, and price range. |
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77 | | - | (b) Has lengths and interior floor plans that distin- |
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78 | | - | guish the series of recreational vehicle products from |
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79 | | - | other series with substantially the same decor, features, |
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80 | | - | equipment, weight, and price. |
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81 | | - | (c) Belongs to a single, distinct classification of |
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82 | | - | recreational vehicle product type having a substantial |
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83 | | - | degree of commonality in the construction of the chassis, |
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84 | | - | frame, and body. |
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85 | | - | SECTION 10. 218.10 (2) of the statutes is created to |
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86 | | - | read: |
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87 | | - | 218.10 (2) “Model” is a series of recreational vehicle |
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88 | | - | products identified by a common series trade name or |
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89 | | - | trademark that is a subset of a line−make. |
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90 | | - | SECTION 11. 218.10 (7m) of the statutes is created to |
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91 | | - | read: |
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92 | | - | 218.10 (7m) “Park model recreational vehicle” |
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93 | | - | means a recreational vehicle that is all of the following: |
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94 | | - | (a) Designed and marketed as temporary living quar- |
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95 | | - | ters for recreational, camping, travel, or seasonal use. |
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96 | | - | (b) Not permanently affixed to real property for use |
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97 | | - | as a permanent dwelling. |
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98 | | - | (c) Built on a single chassis mounted on wheels with |
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99 | | - | a gross trailer area not exceeding 400 square feet in the |
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100 | | - | setup mode. |
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101 | | - | (d) Certified by the manufacturer as complying with |
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102 | | - | the ANSI A119.5 Park Model Recreational Vehicle Stan- |
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103 | | - | dard. |
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104 | | - | SECTION 12. 218.10 (7w) of the statutes is created to |
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105 | | - | read: |
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106 | | - | 218.10 (7w) “Proprietary part” means any part man- |
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107 | | - | ufactured by or for and sold exclusively by the manufac- |
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108 | | - | turer. |
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109 | | - | SECTION 13. 218.10 (8m) of the statutes is amended |
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110 | | - | to read: |
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111 | | - | 218.10 (8m) “Recreational vehicle” has the meaning |
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112 | | - | given in s. 340.01 (48r) means a vehicle that is designed |
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113 | | - | to be towed upon a highway by a motor vehicle, that is |
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114 | | - | equipped and used, or intended to be used, primarily for |
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115 | | - | temporary or recreational human habitation, and that |
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116 | | - | does not exceed 46 feet in length. “Recreational vehicle” |
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117 | | - | includes a camping trailer, 5th−wheel recreational vehi- |
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118 | | - | cle, park model recreational vehicle, and travel trailer. |
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119 | | - | SECTION 14. 218.10 (8u) of the statutes is created to |
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120 | | - | read: |
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121 | | - | 218.10 (8u) “Transient customer” means a customer |
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122 | | - | who is temporarily traveling through a dealer’s area of |
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123 | | - | sales responsibility. |
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124 | | - | SECTION 15. 218.10 (8v) of the statutes is created to |
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125 | | - | read: |
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126 | | - | 218.10 (8v) “Travel trailer” means a vehicle that is |
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127 | | - | mounted on wheels, that is designed to provide tempo- |
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128 | | - | rary living quarters for recreational, camping, or travel |
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129 | | - | use, and that is of a size or weight that a special highway |
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130 | | - | movement permit is not required when towed by a motor |
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| 469 | + | (a) All new, untitled recreational vehicles that were acquired from the |
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| 470 | + | manufacturer or distributor within 18 months before the date of the notice of |
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| 471 | + | termination, cancellation, or nonrenewal that have not been used, except for |
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| 472 | + | demonstration purposes, and that have not been altered or damaged, at 100 percent |
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| 473 | + | of the net invoice cost, including transportation, less applicable rebates and |
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| 474 | + | discounts to the dealer. If any of the recreational vehicles repurchased is damaged, |
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| 475 | + | the amount due to the dealer shall be reduced by the cost to repair the damaged |
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| 476 | + | recreational vehicle. Damage prior to delivery to the dealer will not disqualify |
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| 477 | + | repurchase under this subsection. Any repurchased recreational vehicle must be |
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| 478 | + | paid for in full before the recreational vehicle is removed from the dealer's premises. |
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| 504 | + | LRB-0774/1 |
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| 505 | + | EVM:cjs |
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| 506 | + | SECTION 20 |
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| 507 | + | ASSEMBLY BILL 230 |
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| 508 | + | Upon payment under this paragraph, recreational vehicles must be immediately |
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| 509 | + | surrendered to the manufacturer. |
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| 510 | + | (b) All undamaged accessories or proprietary parts sold to the dealer for resale |
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| 511 | + | within the 12 months prior to termination, cancellation, or nonrenewal, if |
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| 512 | + | accompanied by the original invoice, at 105 percent of the original net price paid to |
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| 513 | + | the manufacturer or distributor to compensate the dealer for handling, packing, and |
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| 514 | + | shipping the parts. |
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| 515 | + | (c) Any properly functioning diagnostic equipment, special tools, current |
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| 516 | + | signage, or other equipment and machinery at 100 percent of the dealer's net cost |
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| 517 | + | plus freight, destination, delivery, and distribution charges and sales taxes, if any, |
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| 518 | + | if the equipment, tools, signage, or machinery was purchased by the dealer within |
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| 519 | + | 5 years before termination, cancellation, or nonrenewal and upon the |
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| 520 | + | manufacturer's or distributor's request and can no longer be used in the normal |
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| 521 | + | course of the dealer's ongoing business. |
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| 522 | + | (4) If a dealer agreement is terminated, canceled, or not renewed by the |
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| 523 | + | manufacturer or distributor without good cause in violation of sub. (1), the |
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| 524 | + | manufacturer or distributor shall repurchase dealer recreational vehicles, |
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| 525 | + | accessories, and other equipment in the manner provided in sub. (3). |
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| 526 | + | (5) (a) A dealer is not prohibited from selling any remaining in-stock inventory |
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| 527 | + | of a particular model or line-make after a dealer agreement has been terminated, |
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| 528 | + | cancelled, or not renewed by the manufacturer. |
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| 529 | + | (b) If recreational vehicles of a model or line-make subject to a terminated |
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| 530 | + | agreement are not repurchased or required to be repurchased by the manufacturer |
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| 531 | + | or distributor, the dealer may continue to sell recreational vehicles that are subject |
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| 556 | + | EVM:cjs |
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| 557 | + | SECTION 20 ASSEMBLY BILL 230 |
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| 558 | + | to the terminated dealer agreement and are currently in stock until those |
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| 559 | + | recreational vehicles are no longer in the dealer's inventory. |
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| 560 | + | (6) When taking on an additional line-make, a dealer shall notify in writing |
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| 561 | + | any manufacturer with whom the dealer has a dealer agreement of the same |
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| 562 | + | line-make at least 30 days prior to entering into a dealer agreement with the |
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| 563 | + | manufacturer of the additional line-make. |
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| 564 | + | SECTION 21. 218.163 of the statutes is created to read: |
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| 565 | + | 218.163 Transfer of ownership. (1) If a dealer desires to make a change in |
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| 566 | + | ownership by the sale of business assets, stock transfer, or otherwise, the dealer shall |
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| 567 | + | give the manufacturer or distributor written notice at least 10 business days before |
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| 568 | + | the closing, along with all supporting documentation as may be reasonably required |
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| 569 | + | by the manufacturer or distributor to determine if an objection to the sale may be |
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| 570 | + | made. In the absence of a breach by the selling dealer of its dealer agreement or this |
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| 571 | + | subchapter, the manufacturer or distributor may not object to the proposed change |
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| 572 | + | in ownership unless any of the following applies to the prospective transferee: |
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| 573 | + | (a) The transferee has previously been terminated for cause by the |
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| 574 | + | manufacturer. |
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| 575 | + | (b) The transferee has been convicted of a felony or any crime of fraud, deceit, |
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| 576 | + | or moral turpitude. |
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| 577 | + | (c) The transferee lacks any license required by law. |
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| 578 | + | (d) The transferee does not have an active line of credit sufficient to purchase |
---|
| 579 | + | a manufacturer's product. |
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| 580 | + | (e) The transferee has undergone in the last 10 years bankruptcy, insolvency, |
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| 581 | + | a general assignment for the benefit of creditors, or the appointment of a receiver, |
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| 582 | + | trustee, or conservator to take possession of the transferee's business or property. |
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| 608 | + | LRB-0774/1 |
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| 609 | + | EVM:cjs |
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| 610 | + | SECTION 21 |
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| 611 | + | ASSEMBLY BILL 230 |
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| 612 | + | (2) If a manufacturer or distributor objects to a proposed change in ownership, |
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| 613 | + | the manufacturer or distributor shall give written notice of its reasons to the dealer |
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| 614 | + | within 7 business days after receipt of the dealer's notification and complete |
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| 615 | + | documentation. The manufacturer or distributor has the burden of proof with regard |
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| 616 | + | to its objection. If the manufacturer or distributor does not give timely notice of its |
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| 617 | + | objection, the change, sale, or transfer shall be approved. |
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| 618 | + | (3) (a) A manufacturer or distributor shall provide a dealer an opportunity to |
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| 619 | + | designate, in writing, a family member as a successor to the dealership in the event |
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| 620 | + | of the death, incapacity, or retirement of the dealer. A manufacturer or distributor |
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| 621 | + | may not prevent or refuse to honor the succession unless the manufacturer or |
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| 622 | + | distributor has provided to the dealer written notice of its objections within 10 |
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| 623 | + | business days after receipt of the dealer's modification of the dealer's succession |
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| 624 | + | plan. In the absence of a breach of the dealer agreement, the manufacturer may |
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| 625 | + | object to the succession only for any of the following reasons: |
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| 626 | + | 1. Conviction of the successor of a felony or any crime of fraud, deceit, or moral |
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| 627 | + | turpitude. |
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| 628 | + | 2. Bankruptcy or insolvency of the successor during the past 10 years. |
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| 629 | + | 3. Prior termination by the manufacturer of the successor for breach of a dealer |
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| 630 | + | agreement. |
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| 631 | + | 4. The lack of an active line of credit for the successor sufficient to purchase the |
---|
| 632 | + | manufacturer's product. |
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| 633 | + | 5. The lack of any license for the successor required by law. |
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| 634 | + | (b) The manufacturer or distributor has the burden of proof regarding its |
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| 635 | + | objection. A family member may not succeed to a dealership if the succession |
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| 660 | + | EVM:cjs |
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| 661 | + | SECTION 21 ASSEMBLY BILL 230 |
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| 662 | + | involves, without the manufacturer's or distributor's consent, a relocation of the |
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| 663 | + | business or an alteration of the terms and conditions of the dealer agreement. |
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| 664 | + | SECTION 22. 218.164 of the statutes is created to read: |
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| 665 | + | 218.164 Warranty obligation. (1) Each warrantor shall do all of the |
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| 666 | + | following: |
---|
| 667 | + | (a) Specify, in writing, to each of the warrantor's dealers, the dealer's |
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| 668 | + | obligations, if any, for preparation, delivery, and warranty service on the warrantor's |
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| 669 | + | products. |
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| 670 | + | (b) Compensate the dealer for warranty service performed by the dealer that |
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| 671 | + | is covered by the warrantor's own warranty. |
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| 672 | + | (c) Provide the dealer with the schedule of compensation to be paid and the time |
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| 673 | + | allowances for the performance of any work and service. The schedule of |
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| 674 | + | compensation shall include reasonable compensation for diagnostic work as well as |
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| 675 | + | warranty labor. If the schedule of compensation required by this paragraph does not |
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| 676 | + | include a particular repair, the warrantor shall reimburse the dealer for warranty |
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| 677 | + | service for the actual time expended unless the warrantor demonstrates that the |
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| 678 | + | actual time was not reasonable. If the warrantor demonstrates that the actual time |
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| 679 | + | was not reasonable, the dealer shall be paid a reasonable sum. |
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| 680 | + | (2) Time allowances for the diagnosis and performance of warranty labor shall |
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| 681 | + | be reasonable for the work to be performed. The compensation of a dealer for |
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| 682 | + | warranty labor may not be less than the lowest retail labor rate actually charged by |
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| 683 | + | the dealer in the ordinary course of business for like nonwarranty labor as long as |
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| 684 | + | the rate is reasonable. |
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| 685 | + | (3) The warrantor shall reimburse the dealer for any warranty part at actual |
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| 686 | + | wholesale cost plus a minimum 30 percent handling charge and the cost, if any, of |
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| 711 | + | 25 - 15 -2023 - 2024 Legislature |
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| 712 | + | LRB-0774/1 |
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| 713 | + | EVM:cjs |
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| 714 | + | SECTION 22 |
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| 715 | + | ASSEMBLY BILL 230 |
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| 716 | + | freight to return such part to the warrantor. If a part is sent to the dealer at no cost, |
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| 717 | + | the dealer is entitled to payment of 30 percent of the wholesale cost of the part from |
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| 718 | + | warrantor as a handling charge. The maximum handling charge for a part shall not |
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| 719 | + | exceed $300. If the warrantor requires the dealer to return a warranty part, |
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| 720 | + | accessory, or complete component, the warrantor shall reimburse the dealer the cost |
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| 721 | + | of freight to return the part, accessory, or component. |
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| 722 | + | (4) Warranty audits of dealer records may be conducted by the warrantor on |
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| 723 | + | a reasonable basis, and dealer claims for warranty compensation may not be denied |
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| 724 | + | except for cause, including performance of nonwarranty repairs, material |
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| 725 | + | noncompliance with the warrantor's published policies and procedures, lack of |
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| 726 | + | material documentation, fraud, or misrepresentation. |
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| 727 | + | (5) A dealer shall submit warranty claims within 45 days after completing |
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| 728 | + | work. |
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| 729 | + | (6) A dealer shall notify the warrantor as soon as is reasonably possible, |
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| 730 | + | verbally or in writing, if the dealer is unable or unwilling to perform material or |
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| 731 | + | repetitive warranty repairs. |
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| 732 | + | (7) A warrantor shall disapprove warranty claims in writing within 45 days |
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| 733 | + | after the date of submission by the dealer in the manner and form prescribed by the |
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| 734 | + | warrantor. Claims not specifically disapproved in writing within 45 days shall be |
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| 735 | + | construed to be approved and must be paid within 60 days. |
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| 736 | + | (8) No warrantor may do any of the following: |
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| 737 | + | (a) Fail to perform any of its warranty obligations with respect to its warranted |
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| 738 | + | products. |
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| 739 | + | (b) Fail to include, in written notices of factory campaigns to recreational |
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| 740 | + | vehicle owners and dealers, the expected date by which necessary parts and |
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| 765 | + | 25 - 16 -2023 - 2024 Legislature LRB-0774/1 |
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| 766 | + | EVM:cjs |
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| 767 | + | SECTION 22 ASSEMBLY BILL 230 |
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| 768 | + | equipment, including tires and chassis or chassis parts, will be available to dealers |
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| 769 | + | to perform the factory campaign work. A warrantor may ship parts to the dealer to |
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| 770 | + | affect the factory campaign work, and, if parts provided are in excess of the dealer's |
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| 771 | + | requirements, the dealer may return unused parts to the warrantor for credit after |
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| 772 | + | completion of the campaign. |
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| 773 | + | (c) Fail to compensate any of its dealers for authorized repairs effected by the |
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| 774 | + | dealer of merchandise damaged in manufacture or transit to the dealer if the carrier |
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| 775 | + | is designated by the warrantor, factory branch, distributor, or distributor branch. |
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| 776 | + | (d) Fail to compensate any of its dealers for authorized warranty service in |
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| 777 | + | accordance with the time allowances set forth in the schedule of compensation under |
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| 778 | + | sub. (1) (c) if performed in a timely and competent manner. |
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| 779 | + | (e) Intentionally misrepresent in any way to purchasers of recreational |
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| 780 | + | vehicles that warranties with respect to the manufacture, performance, or design of |
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| 781 | + | the vehicle are made by the dealer as warrantor or co-warrantor. |
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| 782 | + | (f) Require the dealer to make warranties to customers in any manner related |
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| 783 | + | to the manufacture of the recreational vehicle. |
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| 784 | + | (9) No dealer may do any of the following: |
---|
| 785 | + | (a) Fail to perform predelivery inspection functions, as specified by the |
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| 786 | + | warrantor, in a competent and timely manner. |
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| 787 | + | (b) Fail to perform warranty service work authorized by the warrantor in a |
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| 788 | + | reasonably competent and timely manner on any transient customer's vehicle of the |
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| 789 | + | same line-make unless the dealer determines that the customer is acting in a |
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| 790 | + | manner detrimental to its business. |
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| 791 | + | (c) Fail to track actual time expended to perform warranty work not governed |
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| 792 | + | by time allowances in the schedule of compensation under sub. (1) (c). |
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| 817 | + | 25 - 17 -2023 - 2024 Legislature |
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| 818 | + | LRB-0774/1 |
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| 819 | + | EVM:cjs |
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| 820 | + | SECTION 22 |
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| 821 | + | ASSEMBLY BILL 230 |
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| 822 | + | (d) Claim an agency relationship with the warrantor or manufacturer. |
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| 823 | + | (e) Misrepresent the terms of any warranty. |
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| 824 | + | (10) Notwithstanding the terms of any dealer agreement, all of the following |
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| 825 | + | apply: |
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| 826 | + | (a) A warrantor shall indemnify, defend, and hold harmless its dealer against |
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| 827 | + | any losses or damages to the extent such losses or damages are caused by the |
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| 828 | + | negligence or willful misconduct of the warrantor. A dealer may not be denied |
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| 829 | + | indemnification or a defense for failing to discover, disclose, or remedy a defect in the |
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| 830 | + | design or manufacturing of the recreational vehicle. A dealer shall provide to the |
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| 831 | + | warrantor a copy of any suit in which allegations are made under this section within |
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| 832 | + | 10 days after receiving the suit. This paragraph shall continue to apply even after |
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| 833 | + | the recreational vehicle is titled. Indemnification shall include court costs, |
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| 834 | + | reasonable attorney fees, and expert witness fees incurred by the dealer. |
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| 835 | + | (b) A dealer shall indemnify, defend, and hold harmless its warrantor against |
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| 836 | + | any losses or damages to the extent such losses or damages are caused by the |
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| 837 | + | negligence or willful misconduct of the dealer. The warrantor shall provide to the |
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| 838 | + | dealer a copy of any suit in which allegations are made under this section within 10 |
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| 839 | + | days after receiving the suit. This paragraph shall continue to apply even after the |
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| 840 | + | recreational vehicle is titled. Indemnification must include court costs, reasonable |
---|
| 841 | + | attorney fees, and expert witness fees incurred by the warrantor. |
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| 842 | + | SECTION 23. 218.165 of the statutes is created to read: |
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| 843 | + | 218.165 Inspection of recreational vehicles. (1) Whenever a new |
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| 844 | + | recreational vehicle is damaged prior to transit to the dealer or is damaged in transit |
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| 845 | + | to the dealer when the carrier or means of transportation has been selected by the |
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| 846 | + | manufacturer or distributor, the dealer shall notify the manufacturer or distributor |
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| 871 | + | 25 - 18 -2023 - 2024 Legislature LRB-0774/1 |
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| 872 | + | EVM:cjs |
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| 873 | + | SECTION 23 ASSEMBLY BILL 230 |
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| 874 | + | of the damage within the time frame specified in the dealer agreement and do any |
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| 875 | + | of the following: |
---|
| 876 | + | (a) Request from the manufacturer or distributor authorization to replace the |
---|
| 877 | + | components, parts, and accessories damaged or otherwise correct the damage. |
---|
| 878 | + | (b) Reject the vehicle within the time frame set forth in sub. (4). |
---|
| 879 | + | (2) If a manufacturer or distributor refuses or fails to authorize repair of |
---|
| 880 | + | damage described under sub. (1) within 10 days after receipt of notification under |
---|
| 881 | + | sub. (1) or if the dealer rejects the recreational vehicle because of damage, ownership |
---|
| 882 | + | of the new recreational vehicle reverts to the manufacturer or distributor. |
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| 883 | + | (3) A dealer shall exercise due care in custody of a damaged recreational |
---|
| 884 | + | vehicle, but the dealer shall have no other obligations, financial or otherwise, with |
---|
| 885 | + | respect to that recreational vehicle. |
---|
| 886 | + | (4) The time frame for inspection and rejection by the dealer shall be part of |
---|
| 887 | + | the dealer agreement and may not be less than 2 business days after the physical |
---|
| 888 | + | delivery of the recreational vehicle. |
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| 889 | + | SECTION 24. 218.166 of the statutes is created to read: |
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| 890 | + | 218.166 Coercion. (1) In this section, “coerce” includes threatening to |
---|
| 891 | + | terminate, cancel, or not renew a dealer agreement without good cause or |
---|
| 892 | + | threatening to withhold product lines or delay product delivery as an inducement to |
---|
| 893 | + | amending the dealer agreement. |
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| 894 | + | (2) A manufacturer or distributor may not coerce or attempt to coerce a dealer |
---|
| 895 | + | to do any of the following: |
---|
| 896 | + | (a) Purchase a product that the dealer did not order. |
---|
| 897 | + | (b) Enter into an agreement with the manufacturer or distributor. |
---|
| 898 | + | (c) Take any action that is unfair or unreasonable to the dealer. |
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| 923 | + | 25 - 19 -2023 - 2024 Legislature |
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| 924 | + | LRB-0774/1 |
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| 925 | + | EVM:cjs |
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| 926 | + | SECTION 24 |
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| 927 | + | ASSEMBLY BILL 230 |
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| 928 | + | (d) Enter into an agreement that requires the dealer to submit its disputes to |
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| 929 | + | binding arbitration or otherwise waive rights or responsibilities provided under this |
---|
| 930 | + | subchapter. |
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| 931 | + | (e) Forego exercising a right authorized by a dealer agreement or any law |
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| 932 | + | governing the manufacturer-dealer relationship. |
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| 933 | + | (3) A dealer bears the burden of proof regarding the prohibited acts described |
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| 934 | + | in sub. (2). |
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| 935 | + | SECTION 25. 218.167 of the statutes is created to read: |
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| 936 | + | 218.167 Dispute resolution. (1) A dealer, manufacturer, distributor, or |
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| 937 | + | warrantor injured by a violation of this subchapter by another dealer, manufacturer, |
---|
| 938 | + | distributor, or warrantor may bring a civil action in circuit court to recover actual |
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| 939 | + | damages. The court shall award attorney fees and costs to the prevailing party in |
---|
| 940 | + | an action under this section. Venue for any civil action authorized by this section |
---|
| 941 | + | shall be exclusively in the county in which the dealership is located. In an action |
---|
| 942 | + | involving more than one dealer, venue may be in any county in which a dealer who |
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| 943 | + | is party to the action is located. |
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| 944 | + | (2) (a) Before bringing suit under this section, the party bringing suit for an |
---|
| 945 | + | alleged violation shall serve a written demand for mediation upon the offending |
---|
| 946 | + | party. This paragraph does not apply to a proceeding for injunctive relief. |
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| 947 | + | (b) A demand for mediation under this subsection shall be served upon the |
---|
| 948 | + | offending party by certified mail at the address stated within the dealer agreement |
---|
| 949 | + | between the parties or, if the address is not contained in the agreement or the address |
---|
| 950 | + | is no longer valid, the address on the offending party's license filed with this state. |
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| 951 | + | In the event of a civil action between 2 dealers, the demand shall be mailed to the |
---|
| 952 | + | address on the dealer's license filed with this state. |
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| 977 | + | 25 - 20 -2023 - 2024 Legislature LRB-0774/1 |
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| 978 | + | EVM:cjs |
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| 979 | + | SECTION 25 ASSEMBLY BILL 230 |
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| 980 | + | (c) A demand for mediation under this subsection shall contain a brief |
---|
| 981 | + | statement of the dispute and the relief sought by the party filing the demand. |
---|
| 982 | + | (d) Within 20 days after the date a demand for mediation is served under par. |
---|
| 983 | + | (b), the parties shall mutually select an independent mediator and meet with the |
---|
| 984 | + | mediator for the purpose of attempting to resolve the dispute. The meeting place |
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| 985 | + | shall be in this state in a location selected by the mediator. The mediator may extend |
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| 986 | + | the date of the meeting for good cause shown by either party or upon stipulation of |
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| 987 | + | both parties. |
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| 988 | + | (e) The service of a demand for mediation under this subsection stays the time |
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| 989 | + | for the filing of any complaint, petition, protest, or action under this subchapter until |
---|
| 990 | + | representatives of both parties have met with a mutually selected mediator for the |
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| 991 | + | purpose of attempting to resolve the dispute. If a complaint, petition, protest, or |
---|
| 992 | + | action is filed before that meeting, the court shall enter an order suspending the |
---|
| 993 | + | proceeding or action until the meeting has occurred and may, upon written |
---|
| 994 | + | stipulation of all parties to the proceeding or action that they wish to continue to |
---|
| 995 | + | mediate under this subsection, enter an order suspending the proceeding or action |
---|
| 996 | + | for as long a period as the court considers appropriate. A suspension order issued |
---|
| 997 | + | under this paragraph may be revoked by the court. |
---|
| 998 | + | (f) The parties to a mediation under this subsection shall bear their own costs |
---|
| 999 | + | for attorney fees and divide equally the cost of the mediator. |
---|
| 1000 | + | (3) In addition to the remedies provided in this section, and notwithstanding |
---|
| 1001 | + | the existence of any additional remedy at law, a dealer or manufacturer may apply |
---|
| 1002 | + | to a circuit court for the grant, upon a hearing and for cause shown, of a temporary |
---|
| 1003 | + | or permanent injunction, or both, restraining any person from acting as a dealer, |
---|
| 1004 | + | manufacturer, or distributor without being properly licensed under this chapter, |
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| 1029 | + | 25 - 21 -2023 - 2024 Legislature |
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| 1030 | + | LRB-0774/1 |
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| 1031 | + | EVM:cjs |
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| 1032 | + | SECTION 25 |
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| 1033 | + | ASSEMBLY BILL 230 |
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| 1034 | + | from violating or continuing to violate any of the provisions of this subchapter, or |
---|
| 1035 | + | from failing or refusing to comply with the requirements of this subchapter. An |
---|
| 1036 | + | injunction under this subsection shall be issued without bond. A single act in |
---|
| 1037 | + | violation of any of the provisions of this subchapter is sufficient to authorize the |
---|
| 1038 | + | issuance of an injunction. |
---|
| 1039 | + | SECTION 26. 218.17 (1) of the statutes is created to read: |
---|
| 1040 | + | 218.17 (1) The department may suspend or revoke any dealer, manufacturer, |
---|
| 1041 | + | or distributor license upon a finding that any such party violated any provision of ss. |
---|
| 1042 | + | 218.161 to 218.167. The department may impose, levy, and collect by legal process |
---|
| 1043 | + | fines, in an amount not to exceed $1,000 for each violation, against any person or |
---|
| 1044 | + | entity if it finds that such person or entity has violated any provision of ss. 218.161 |
---|
| 1045 | + | to 218.167. A person against whom a fine is imposed under this section is entitled |
---|
| 1046 | + | to an administrative hearing or other proceeding authorized under state law to |
---|
| 1047 | + | contest the action or fine levied, or about to be levied, against the person or entity. |
---|
| 1048 | + | SECTION 27. 340.01 (6m) of the statutes is amended to read: |
---|
| 1049 | + | 340.01 (6m) “Camping trailer" means a vehicle with a collapsible or folding |
---|
| 1050 | + | structure designed for human habitation and to provide temporary living quarters |
---|
| 1051 | + | for recreation, camping, or travel use and to be towed upon a highway by a motor |
---|
132 | | - | SECTION 16. 218.10 (10) of the statutes is created to |
---|
133 | | - | read: |
---|
134 | | - | 218.10 (10) “Warrantor” means a person, firm, cor- |
---|
135 | | - | poration, or business entity that gives a warranty in con- |
---|
136 | | - | nection with a new recreational vehicle or parts, acces- |
---|
137 | | - | sories, or components of a new recreational vehicle. |
---|
138 | | - | SECTION 17. 218.10 (11) of the statutes is created to |
---|
139 | | - | read: |
---|
140 | | - | 218.10 (11) “Warranty” does not include service con- |
---|
141 | | - | tracts, mechanical or other insurance, or extended war- |
---|
142 | | - | ranties sold for separate consideration by a dealer or other |
---|
143 | | - | person not controlled by a manufacturer. |
---|
144 | | - | SECTION 18. 218.11 (title) of the statutes is amended |
---|
145 | | - | to read: |
---|
146 | | - | 218.11 (title) Recreational vehicle dealers, manu- |
---|
147 | | - | facturers, and distributors regulated. |
---|
148 | | - | SECTION 19. 218.11 (2) (e) of the statutes is created |
---|
149 | | - | to read: |
---|
150 | | - | 218.11 (2) (e) A recreational vehicle dealer or an |
---|
151 | | - | applicant for a recreational vehicle dealer license shall |
---|
152 | | - | provide and maintain in force a bond or irrevocable letter |
---|
153 | | - | of credit of not less than $50,000. The bond or letter of |
---|
154 | | - | credit shall be executed in the name of the department of |
---|
155 | | - | transportation for the benefit of any person who sustains |
---|
156 | | - | a loss because of an act of a recreational vehicle dealer |
---|
157 | | - | that constitutes grounds for the suspension or revocation |
---|
158 | | - | of a license under sub. (6). |
---|
159 | | - | SECTION 20. 218.11 (4) of the statutes is created to |
---|
160 | | - | read: |
---|
161 | | - | 218.11 (4) (a) No manufacturer or distributor may |
---|
162 | | - | engage in business as a manufacturer or distributor in this |
---|
163 | | - | state without a license. |
---|
164 | | - | (b) No manufacturers’ or distributors’ recreational |
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165 | | - | vehicles may be sold in this state unless either the manu- − 3 − 2023 Wisconsin Act 164 2023 Assembly Bill 230 |
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166 | | - | facturer on direct dealerships of domestic vehicles or the |
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167 | | - | distributor on indirect dealerships of either domestic or |
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168 | | - | foreign vehicles are licensed under par. (a). The obtain- |
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169 | | - | ing of a license under par. (a) shall conclusively establish |
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170 | | - | that a manufacturer or distributor is doing business in this |
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171 | | - | state and shall subject the licensee to all provisions of the |
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172 | | - | Wisconsin statutes regulating manufacturers and distrib- |
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173 | | - | utors. |
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174 | | - | SECTION 21. 218.11 (6) (o) of the statutes is created |
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175 | | - | to read: |
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176 | | - | 218.11 (6) (o) Being a dealer, manufacturer, or dis- |
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177 | | - | tributor that violates any provision of ss. 218.161 to |
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178 | | - | 218.167. |
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179 | | - | SECTION 22. 218.11 (7) (b) of the statutes is repealed |
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180 | | - | and recreated to read: |
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181 | | - | 218.11 (7) (b) The provisions of s. 218.0116 (4) relat- |
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182 | | - | ing to the suspension and revocation of a license applies |
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183 | | - | to the suspension and revocation of the license of a recre- |
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184 | | - | ational vehicle dealer, manufacturer, or distributor, |
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185 | | - | except that the provisions s. 218.0116 (4) do not apply to |
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186 | | - | the suspension or revocation of a license under sub. (6m) |
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187 | | - | and that no suspension or revocation under this paragraph |
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188 | | - | may be predicated on conduct related to mileage disclo- |
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189 | | - | sure. |
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190 | | - | SECTION 23. 218.15 of the statutes is amended to |
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191 | | - | read: |
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192 | | - | 218.15 Sale or lease of used recreational vehicles. |
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193 | | - | In the sale or lease of any used recreational vehicle, the |
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194 | | - | sales invoice or lease agreement shall contain the point of |
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195 | | - | manufacture of the used recreational vehicle, and the |
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196 | | - | name of the manufacturer and the name and address of |
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197 | | - | the previous owner. |
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198 | | - | SECTION 24. 218.161 of the statutes is created to read: |
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199 | | - | 218.161 Dealer agreement requirement. (1) A |
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200 | | - | manufacturer or distributor may not sell a new recre- |
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201 | | - | ational vehicle in this state to or through a dealer without |
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202 | | - | having first entered into a written dealer agreement with |
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203 | | - | a dealer that has been signed by both parties. |
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204 | | - | (2) The manufacturer shall designate the area of sales |
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205 | | - | responsibility exclusively assigned to a dealer in the |
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206 | | - | dealer agreement and may not change the area of sales |
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207 | | - | responsibility or contract with another dealer for sale of |
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208 | | - | the same model or line−make, as specified in the agree- |
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209 | | - | ment, in the designated area of sales responsibility during |
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210 | | - | the duration of the agreement. |
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211 | | - | (3) The terms of the dealer agreement, including the |
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212 | | - | area of sales responsibility, may not be reviewed or |
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213 | | - | changed during the duration of the dealer agreement |
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214 | | - | without the written mutual consent of the parties. The |
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215 | | - | duration of the dealer agreement shall be stated in the |
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216 | | - | dealer agreement. |
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217 | | - | (4) A dealer may not sell a new recreational vehicle |
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218 | | - | in this state without having first entered into a dealer |
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219 | | - | agreement with a manufacturer or distributor and may |
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220 | | - | not sell outside the area of sales responsibility designated |
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221 | | - | in the agreement under sub. (2). |
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222 | | - | (5) A manufacturer may not unilaterally issue a pol- |
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223 | | - | icy or procedure that violates or substantially alters a pro- |
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224 | | - | vision of the dealer agreement during the duration of the |
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225 | | - | agreement. |
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226 | | - | (6) A manufacturer shall distribute new recreational |
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227 | | - | vehicles to its dealers in a fair and equitable manner. If |
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228 | | - | requested, a manufacturer shall provide information on |
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229 | | - | its manner of distribution. |
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230 | | - | (7) A manufacturer shall provide its dealer with ade- |
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231 | | - | quate technical data to perform proper service and |
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232 | | - | repairs. |
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233 | | - | SECTION 25. 218.162 of the statutes is created to read: |
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234 | | - | 218.162 Termination of dealer agreement. (1) (a) |
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235 | | - | A manufacturer or distributor, directly or through any |
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236 | | - | officer, agent, or employee, may terminate, cancel, or fail |
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237 | | - | to renew a model, line−make, or entire dealer agreement |
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238 | | - | only with good cause, and, upon renewal, may not require |
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239 | | - | additional inventory stocking requirements or increased |
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240 | | - | retail sales targets in excess of the market growth in the |
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241 | | - | dealer’s area of sales responsibility. |
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242 | | - | (b) A manufacturer or distributor has the burden of |
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243 | | - | showing good cause for terminating, canceling, or failing |
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244 | | - | to renew a model, line−make, or dealer agreement with |
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245 | | - | a dealer. For purposes of determining whether there is |
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246 | | - | good cause for the proposed action, any of the following |
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247 | | - | factors may be considered: |
---|
248 | | - | 1. The extent of the affected dealer’s penetration in |
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249 | | - | the relevant market area for the relevant model or line− |
---|
250 | | - | make. |
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251 | | - | 2. The nature and extent of the dealer’s investment in |
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252 | | - | its business. |
---|
253 | | - | 3. The adequacy of the dealer’s service facilities, |
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254 | | - | equipment, parts, supplies, and personnel. |
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255 | | - | 4. The effect of the proposed action on the commu- |
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256 | | - | nity. |
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257 | | - | 5. The extent and quality of the dealer’s service under |
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258 | | - | recreational vehicle warranties. |
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259 | | - | 6. The failure to follow agreed−upon, reasonable pro- |
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260 | | - | cedures or standards related to the overall operation of |
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261 | | - | the dealership consistent with the law and the dealer |
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262 | | - | agreement. |
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263 | | - | 7. The dealer’s performance under the terms of its |
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264 | | - | dealer agreement. |
---|
265 | | - | (c) 1. Except as provided in this paragraph, a manu- |
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266 | | - | facturer or distributor shall provide a dealer with at least |
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267 | | - | 120 days’ prior written notice of termination, cancella- |
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268 | | - | tion, or nonrenewal of a model, line−make, or entire |
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269 | | - | dealer agreement. |
---|
270 | | - | 2. The notice under subd. 1. shall state all reasons for |
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271 | | - | the proposed termination, cancellation, or nonrenewal |
---|
272 | | - | and shall state that if, within 30 days following receipt of |
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273 | | - | the notice, the dealer provides to the manufacturer or dis- |
---|
274 | | - | tributor a written notice of intent to cure all claimed defi- |
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275 | | - | ciencies, the dealer will then have 120 days following |
---|
276 | | - | receipt of the notice to rectify the deficiencies. If the defi- |
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277 | | - | ciencies are rectified within 120 days, the manufacturer’s − 4 −2023 Wisconsin Act 164 2023 Assembly Bill 230 |
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278 | | - | or distributor’s notice is voided. If the dealer fails to pro- |
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279 | | - | vide the notice of intent to cure the deficiencies in the pre- |
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280 | | - | scribed period, the termination, cancellation, or nonre- |
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281 | | - | newal takes effect 30 days after the dealer’s receipt of the |
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282 | | - | notice unless the dealer has new and untitled inventory on |
---|
283 | | - | hand that may be disposed of as provided under sub. (3). |
---|
284 | | - | 3. The notice period under subd. 1. may be reduced |
---|
285 | | - | to 30 days if the grounds for termination, cancellation, or |
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286 | | - | nonrenewal are due to any of the following: |
---|
287 | | - | a. A dealer or one of its owners being convicted of a |
---|
288 | | - | felony. |
---|
289 | | - | b. The abandonment or closing of the business opera- |
---|
290 | | - | tions of the dealer for 10 consecutive business days |
---|
291 | | - | unless the closing is due to an act of God, strike, labor dif- |
---|
292 | | - | ficulty, or other cause over which the dealer has no con- |
---|
293 | | - | trol. |
---|
294 | | - | c. A significant misrepresentation by the dealer |
---|
295 | | - | materially affecting the business relationship. |
---|
296 | | - | d. A suspension of, revocation of, or refusal to renew |
---|
297 | | - | the dealer’s license by the department. |
---|
298 | | - | 4. The notice provisions of this paragraph do not |
---|
299 | | - | apply if the reason for termination, cancellation, or non- |
---|
300 | | - | renewal is insolvency, the occurrence of an assignment |
---|
301 | | - | for the benefit of creditors, or bankruptcy. |
---|
302 | | - | (2) A dealer may terminate, cancel, or fail to renew |
---|
303 | | - | a model, line−make, or entire dealer agreement with a |
---|
304 | | - | manufacturer or distributor with or without good cause at |
---|
305 | | - | any time by giving 30 days’ written notice to the manu- |
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306 | | - | facturer. If the termination, cancellation, or nonrenewal |
---|
307 | | - | is for good cause, the dealer has the burden of showing |
---|
308 | | - | good cause. Any of the following items, among others, |
---|
309 | | - | may be deemed good cause for the proposed action by a |
---|
310 | | - | dealer: |
---|
311 | | - | (a) A manufacturer being convicted of a felony. |
---|
312 | | - | (b) The business operations of the manufacturer have |
---|
313 | | - | been abandoned or closed for 10 consecutive business |
---|
314 | | - | days, unless the closing is due to an act of God, strike, |
---|
315 | | - | labor difficulty, or other cause over which the manufac- |
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316 | | - | turer has no control. |
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317 | | - | (c) A significant misrepresentation by the manufac- |
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318 | | - | turer materially affecting the business relationship. |
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319 | | - | (d) A material violation of this subchapter that is not |
---|
320 | | - | cured within 30 days after written notice by the dealer. |
---|
321 | | - | (e) A declaration by the manufacturer of insolvency, |
---|
322 | | - | the occurrence of an assignment for the benefit of credi- |
---|
323 | | - | tors, or bankruptcy. |
---|
324 | | - | (f) A manufacturer’s material violation of the dealer |
---|
325 | | - | agreement that is not cured within 120 days after written |
---|
326 | | - | notice by the dealer. |
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327 | | - | (g) Manufacturer coercion of the dealer under s. |
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328 | | - | 218.166. |
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329 | | - | (h) Manufacturer violation of area of sales responsi- |
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330 | | - | bility protections or allowing other dealers to violate |
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331 | | - | these protections. |
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332 | | - | (3) If the dealer agreement is terminated, canceled, |
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333 | | - | or not renewed by the dealer for good cause, the manufac- |
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334 | | - | turer shall, at the election of the dealer and within 45 days |
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335 | | - | after termination, cancellation, or nonrenewal, repur- |
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336 | | - | chase all of the following: |
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337 | | - | (a) All new, untitled recreational vehicles that were |
---|
338 | | - | acquired from the manufacturer or distributor within 18 |
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339 | | - | months before the date of the notice of termination, can- |
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340 | | - | cellation, or nonrenewal that have not been used, except |
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341 | | - | for demonstration purposes, and that have not been |
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342 | | - | altered or damaged, at 100 percent of the net invoice cost, |
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343 | | - | including transportation, less applicable rebates and dis- |
---|
344 | | - | counts to the dealer. If any of the recreational vehicles |
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345 | | - | repurchased is damaged, the amount due to the dealer |
---|
346 | | - | shall be reduced by the cost to repair the damaged recre- |
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347 | | - | ational vehicle. Damage prior to delivery to the dealer |
---|
348 | | - | will not disqualify repurchase under this subsection. Any |
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349 | | - | repurchased recreational vehicle must be paid for in full |
---|
350 | | - | before the recreational vehicle is removed from the deal- |
---|
351 | | - | er’s premises. Upon payment under this paragraph, |
---|
352 | | - | recreational vehicles must be immediately surrendered to |
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353 | | - | the manufacturer. |
---|
354 | | - | (b) All undamaged accessories or proprietary parts |
---|
355 | | - | sold to the dealer for resale within the 12 months prior to |
---|
356 | | - | termination, cancellation, or nonrenewal, if accompa- |
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357 | | - | nied by the original invoice, at 105 percent of the original |
---|
358 | | - | net price paid to the manufacturer or distributor to com- |
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359 | | - | pensate the dealer for handling, packing, and shipping the |
---|
360 | | - | parts. |
---|
361 | | - | (c) Any properly functioning diagnostic equipment, |
---|
362 | | - | special tools, current signage, or other equipment and |
---|
363 | | - | machinery at 100 percent of the dealer’s net cost plus |
---|
364 | | - | freight, destination, delivery, and distribution charges |
---|
365 | | - | and sales taxes, if any, if the equipment, tools, signage, or |
---|
366 | | - | machinery was purchased by the dealer within 5 years |
---|
367 | | - | before termination, cancellation, or nonrenewal and |
---|
368 | | - | upon the manufacturer’s or distributor’s request and can |
---|
369 | | - | no longer be used in the normal course of the dealer’s |
---|
370 | | - | ongoing business. |
---|
371 | | - | (4) If a dealer agreement is terminated, canceled, or |
---|
372 | | - | not renewed by the manufacturer or distributor without |
---|
373 | | - | good cause in violation of sub. (1), the manufacturer or |
---|
374 | | - | distributor shall repurchase dealer recreational vehicles, |
---|
375 | | - | accessories, and other equipment in the manner provided |
---|
376 | | - | in sub. (3). |
---|
377 | | - | (5) (a) A dealer is not prohibited from selling any |
---|
378 | | - | remaining in−stock inventory of a particular model or |
---|
379 | | - | line−make after a dealer agreement has been terminated, |
---|
380 | | - | cancelled, or not renewed by the manufacturer. |
---|
381 | | - | (b) If recreational vehicles of a model or line−make |
---|
382 | | - | subject to a terminated agreement are not repurchased or |
---|
383 | | - | required to be repurchased by the manufacturer or dis- |
---|
384 | | - | tributor, the dealer may continue to sell recreational vehi- |
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385 | | - | cles that are subject to the terminated dealer agreement |
---|
386 | | - | and are currently in stock until those recreational vehicles |
---|
387 | | - | are no longer in the dealer’s inventory. |
---|
388 | | - | (6) When taking on an additional line−make, a dealer |
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389 | | - | shall notify in writing any manufacturer with whom the − 5 − 2023 Wisconsin Act 164 2023 Assembly Bill 230 |
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390 | | - | dealer has a dealer agreement of the same line−make at |
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391 | | - | least 30 days prior to entering into a dealer agreement |
---|
392 | | - | with the manufacturer of the additional line−make. |
---|
393 | | - | SECTION 26. 218.163 of the statutes is created to read: |
---|
394 | | - | 218.163 Transfer of ownership. (1) If a dealer |
---|
395 | | - | desires to make a change in ownership by the sale of busi- |
---|
396 | | - | ness assets, stock transfer, or otherwise, the dealer shall |
---|
397 | | - | give the manufacturer or distributor written notice at least |
---|
398 | | - | 10 business days before the closing, along with all sup- |
---|
399 | | - | porting documentation as may be reasonably required by |
---|
400 | | - | the manufacturer or distributor to determine if an objec- |
---|
401 | | - | tion to the sale may be made. In the absence of a breach |
---|
402 | | - | by the selling dealer of its dealer agreement or this sub- |
---|
403 | | - | chapter, the manufacturer or distributor may not object to |
---|
404 | | - | the proposed change in ownership unless any of the fol- |
---|
405 | | - | lowing applies to the prospective transferee: |
---|
406 | | - | (a) The transferee has previously been terminated for |
---|
407 | | - | cause by the manufacturer. |
---|
408 | | - | (b) The transferee has been convicted of a felony or |
---|
409 | | - | any crime of fraud, deceit, or moral turpitude. |
---|
410 | | - | (c) The transferee lacks any license required by law. |
---|
411 | | - | (d) The transferee does not have an active line of |
---|
412 | | - | credit sufficient to purchase a manufacturer’s product. |
---|
413 | | - | (e) The transferee has undergone in the last 10 years |
---|
414 | | - | bankruptcy, insolvency, a general assignment for the ben- |
---|
415 | | - | efit of creditors, or the appointment of a receiver, trustee, |
---|
416 | | - | or conservator to take possession of the transferee’s busi- |
---|
417 | | - | ness or property. |
---|
418 | | - | (2) If a manufacturer or distributor objects to a pro- |
---|
419 | | - | posed change in ownership, the manufacturer or distribu- |
---|
420 | | - | tor shall give written notice of its reasons to the dealer |
---|
421 | | - | within 7 business days after receipt of the dealer’s notifi- |
---|
422 | | - | cation and complete documentation. The manufacturer |
---|
423 | | - | or distributor has the burden of proof with regard to its |
---|
424 | | - | objection. If the manufacturer or distributor does not |
---|
425 | | - | give timely notice of its objection, the change, sale, or |
---|
426 | | - | transfer shall be approved. |
---|
427 | | - | (3) (a) A manufacturer or distributor shall provide a |
---|
428 | | - | dealer an opportunity to designate, in writing, a family |
---|
429 | | - | member as a successor to the dealership in the event of the |
---|
430 | | - | death, incapacity, or retirement of the dealer. A manufac- |
---|
431 | | - | turer or distributor may not prevent or refuse to honor the |
---|
432 | | - | succession unless the manufacturer or distributor has |
---|
433 | | - | provided to the dealer written notice of its objections |
---|
434 | | - | within 10 business days after receipt of the dealer’s modi- |
---|
435 | | - | fication of the dealer’s succession plan. In the absence of |
---|
436 | | - | a breach of the dealer agreement, the manufacturer may |
---|
437 | | - | object to the succession only for any of the following rea- |
---|
438 | | - | sons: |
---|
439 | | - | 1. Conviction of the successor of a felony or any |
---|
440 | | - | crime of fraud, deceit, or moral turpitude. |
---|
441 | | - | 2. Bankruptcy or insolvency of the successor during |
---|
442 | | - | the past 10 years. |
---|
443 | | - | 3. Prior termination by the manufacturer of the suc- |
---|
444 | | - | cessor for breach of a dealer agreement. |
---|
445 | | - | 4. The lack of an active line of credit for the successor |
---|
446 | | - | sufficient to purchase the manufacturer’s product. |
---|
447 | | - | 5. The lack of any license for the successor required |
---|
448 | | - | by law. |
---|
449 | | - | (b) The manufacturer or distributor has the burden of |
---|
450 | | - | proof regarding its objection. A family member may not |
---|
451 | | - | succeed to a dealership if the succession involves, with- |
---|
452 | | - | out the manufacturer’s or distributor’s consent, a reloca- |
---|
453 | | - | tion of the business or an alteration of the terms and con- |
---|
454 | | - | ditions of the dealer agreement. |
---|
455 | | - | SECTION 27. 218.164 of the statutes is created to read: |
---|
456 | | - | 218.164 Warranty obligation. (1) Each warrantor |
---|
457 | | - | shall do all of the following: |
---|
458 | | - | (a) Specify, in writing, to each of the warrantor’s |
---|
459 | | - | dealers, the dealer’s obligations, if any, for preparation, |
---|
460 | | - | delivery, and warranty service on the warrantor’s prod- |
---|
461 | | - | ucts. |
---|
462 | | - | (b) Compensate the dealer for warranty service per- |
---|
463 | | - | formed by the dealer that is covered by the warrantor’s |
---|
464 | | - | own warranty. |
---|
465 | | - | (c) Provide the dealer with the schedule of compen- |
---|
466 | | - | sation to be paid and the time allowances for the perfor- |
---|
467 | | - | mance of any work and service. The schedule of com- |
---|
468 | | - | pensation shall include reasonable compensation for |
---|
469 | | - | diagnostic work as well as warranty labor. If the schedule |
---|
470 | | - | of compensation required by this paragraph does not |
---|
471 | | - | include a particular repair, the warrantor shall reimburse |
---|
472 | | - | the dealer for warranty service for the actual time |
---|
473 | | - | expended unless the warrantor demonstrates that the |
---|
474 | | - | actual time was not reasonable. If the warrantor demon- |
---|
475 | | - | strates that the actual time was not reasonable, the dealer |
---|
476 | | - | shall be paid a reasonable sum. |
---|
477 | | - | (2) Time allowances for the diagnosis and perfor- |
---|
478 | | - | mance of warranty labor shall be reasonable for the work |
---|
479 | | - | to be performed. The compensation of a dealer for war- |
---|
480 | | - | ranty labor may not be less than the lowest retail labor |
---|
481 | | - | rate actually charged by the dealer in the ordinary course |
---|
482 | | - | of business for like nonwarranty labor as long as the rate |
---|
483 | | - | is reasonable. |
---|
484 | | - | (3) The warrantor shall reimburse the dealer for any |
---|
485 | | - | warranty part at actual wholesale cost plus a minimum 30 |
---|
486 | | - | percent handling charge and the cost, if any, of freight to |
---|
487 | | - | return such part to the warrantor. If a part is sent to the |
---|
488 | | - | dealer at no cost, the dealer is entitled to payment of 30 |
---|
489 | | - | percent of the wholesale cost of the part from warrantor |
---|
490 | | - | as a handling charge. The maximum handling charge for |
---|
491 | | - | a part shall not exceed $300. If the warrantor requires the |
---|
492 | | - | dealer to return a warranty part, accessory, or complete |
---|
493 | | - | component, the warrantor shall reimburse the dealer the |
---|
494 | | - | cost of freight to return the part, accessory, or component. |
---|
495 | | - | (4) Warranty audits of dealer records may be con- |
---|
496 | | - | ducted by the warrantor on a reasonable basis, and dealer |
---|
497 | | - | claims for warranty compensation may not be denied |
---|
498 | | - | except for cause, including performance of nonwarranty |
---|
499 | | - | repairs, material noncompliance with the warrantor’s − 6 −2023 Wisconsin Act 164 2023 Assembly Bill 230 |
---|
500 | | - | published policies and procedures, lack of material docu- |
---|
501 | | - | mentation, fraud, or misrepresentation. |
---|
502 | | - | (5) A dealer shall submit warranty claims within 45 |
---|
503 | | - | days after completing work. |
---|
504 | | - | (6) A dealer shall notify the warrantor as soon as is |
---|
505 | | - | reasonably possible, verbally or in writing, if the dealer |
---|
506 | | - | is unable or unwilling to perform material or repetitive |
---|
507 | | - | warranty repairs. |
---|
508 | | - | (7) A warrantor shall disapprove warranty claims in |
---|
509 | | - | writing within 45 days after the date of submission by the |
---|
510 | | - | dealer in the manner and form prescribed by the warran- |
---|
511 | | - | tor. Claims not specifically disapproved in writing |
---|
512 | | - | within 45 days shall be construed to be approved and |
---|
513 | | - | must be paid within 60 days. |
---|
514 | | - | (8) No warrantor may do any of the following: |
---|
515 | | - | (a) Fail to perform any of its warranty obligations |
---|
516 | | - | with respect to its warranted products. |
---|
517 | | - | (b) Fail to include, in written notices of factory cam- |
---|
518 | | - | paigns to recreational vehicle owners and dealers, the |
---|
519 | | - | expected date by which necessary parts and equipment, |
---|
520 | | - | including tires and chassis or chassis parts, will be avail- |
---|
521 | | - | able to dealers to perform the factory campaign work. A |
---|
522 | | - | warrantor may ship parts to the dealer to affect the factory |
---|
523 | | - | campaign work, and, if parts provided are in excess of the |
---|
524 | | - | dealer’s requirements, the dealer may return unused parts |
---|
525 | | - | to the warrantor for credit after completion of the cam- |
---|
526 | | - | paign. |
---|
527 | | - | (c) Fail to compensate any of its dealers for autho- |
---|
528 | | - | rized repairs effected by the dealer of merchandise dam- |
---|
529 | | - | aged in manufacture or transit to the dealer if the carrier |
---|
530 | | - | is designated by the warrantor, factory branch, distribu- |
---|
531 | | - | tor, or distributor branch. |
---|
532 | | - | (d) Fail to compensate any of its dealers for autho- |
---|
533 | | - | rized warranty service in accordance with the time |
---|
534 | | - | allowances set forth in the schedule of compensation |
---|
535 | | - | under sub. (1) (c) if performed in a timely and competent |
---|
536 | | - | manner. |
---|
537 | | - | (e) Intentionally misrepresent in any way to pur- |
---|
538 | | - | chasers of recreational vehicles that warranties with |
---|
539 | | - | respect to the manufacture, performance, or design of the |
---|
540 | | - | vehicle are made by the dealer as warrantor or co−war- |
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541 | | - | rantor. |
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542 | | - | (f) Require the dealer to make warranties to cus- |
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543 | | - | tomers in any manner related to the manufacture of the |
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544 | | - | recreational vehicle. |
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545 | | - | (9) No dealer may do any of the following: |
---|
546 | | - | (a) Fail to perform predelivery inspection functions, |
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547 | | - | as specified by the warrantor, in a competent and timely |
---|
548 | | - | manner. |
---|
549 | | - | (b) Fail to perform warranty service work authorized |
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550 | | - | by the warrantor in a reasonably competent and timely |
---|
551 | | - | manner on any transient customer’s vehicle of the same |
---|
552 | | - | line−make unless the dealer determines that the customer |
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553 | | - | is acting in a manner detrimental to its business. |
---|
554 | | - | (c) Fail to track actual time expended to perform war- |
---|
555 | | - | ranty work not governed by time allowances in the sched- |
---|
556 | | - | ule of compensation under sub. (1) (c). |
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557 | | - | (d) Claim an agency relationship with the warrantor |
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558 | | - | or manufacturer. |
---|
559 | | - | (e) Misrepresent the terms of any warranty. |
---|
560 | | - | (10) Notwithstanding the terms of any dealer agree- |
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561 | | - | ment, all of the following apply: |
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562 | | - | (a) A warrantor shall indemnify, defend, and hold |
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563 | | - | harmless its dealer against any losses or damages to the |
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564 | | - | extent such losses or damages are caused by the negli- |
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565 | | - | gence or willful misconduct of the warrantor. A dealer |
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566 | | - | may not be denied indemnification or a defense for fail- |
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567 | | - | ing to discover, disclose, or remedy a defect in the design |
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568 | | - | or manufacturing of the recreational vehicle. A dealer |
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569 | | - | shall provide to the warrantor a copy of any suit in which |
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570 | | - | allegations are made under this section within 10 days |
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571 | | - | after receiving the suit. This paragraph shall continue to |
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572 | | - | apply even after the recreational vehicle is titled. Indem- |
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573 | | - | nification shall include court costs, reasonable attorney |
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574 | | - | fees, and expert witness fees incurred by the dealer. |
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575 | | - | (b) A dealer shall indemnify, defend, and hold harm- |
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576 | | - | less its warrantor against any losses or damages to the |
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577 | | - | extent such losses or damages are caused by the negli- |
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578 | | - | gence or willful misconduct of the dealer. The warrantor |
---|
579 | | - | shall provide to the dealer a copy of any suit in which alle- |
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580 | | - | gations are made under this section within 10 days after |
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581 | | - | receiving the suit. This paragraph shall continue to apply |
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582 | | - | even after the recreational vehicle is titled. Indemnifica- |
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583 | | - | tion must include court costs, reasonable attorney fees, |
---|
584 | | - | and expert witness fees incurred by the warrantor. |
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585 | | - | SECTION 28. 218.165 of the statutes is created to read: |
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586 | | - | 218.165 Inspection of recreational vehicles. (1) |
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587 | | - | Whenever a new recreational vehicle is damaged prior to |
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588 | | - | transit to the dealer or is damaged in transit to the dealer |
---|
589 | | - | when the carrier or means of transportation has been |
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590 | | - | selected by the manufacturer or distributor, the dealer |
---|
591 | | - | shall notify the manufacturer or distributor of the damage |
---|
592 | | - | within the time frame specified in the dealer agreement |
---|
593 | | - | and do any of the following: |
---|
594 | | - | (a) Request from the manufacturer or distributor |
---|
595 | | - | authorization to replace the components, parts, and |
---|
596 | | - | accessories damaged or otherwise correct the damage. |
---|
597 | | - | (b) Reject the vehicle within the time frame set forth |
---|
598 | | - | in sub. (4). |
---|
599 | | - | (2) If a manufacturer or distributor refuses or fails to |
---|
600 | | - | authorize repair of damage described under sub. (1) |
---|
601 | | - | within 10 days after receipt of notification under sub. (1) |
---|
602 | | - | or if the dealer rejects the recreational vehicle because of |
---|
603 | | - | damage, ownership of the new recreational vehicle |
---|
604 | | - | reverts to the manufacturer or distributor. |
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605 | | - | (3) A dealer shall exercise due care in custody of a |
---|
606 | | - | damaged recreational vehicle, but the dealer shall have − 7 − 2023 Wisconsin Act 164 2023 Assembly Bill 230 |
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607 | | - | no other obligations, financial or otherwise, with respect |
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608 | | - | to that recreational vehicle. |
---|
609 | | - | (4) The time frame for inspection and rejection by the |
---|
610 | | - | dealer shall be part of the dealer agreement and may not |
---|
611 | | - | be less than 2 business days after the physical delivery of |
---|
612 | | - | the recreational vehicle. |
---|
613 | | - | SECTION 29. 218.166 of the statutes is created to read: |
---|
614 | | - | 218.166 Coercion. (1) In this section, “coerce” |
---|
615 | | - | includes threatening to terminate, cancel, or not renew a |
---|
616 | | - | dealer agreement without good cause or threatening to |
---|
617 | | - | withhold product lines or delay product delivery as an |
---|
618 | | - | inducement to amending the dealer agreement. |
---|
619 | | - | (2) A manufacturer or distributor may not coerce or |
---|
620 | | - | attempt to coerce a dealer to do any of the following: |
---|
621 | | - | (a) Purchase a product that the dealer did not order. |
---|
622 | | - | (b) Enter into an agreement with the manufacturer or |
---|
623 | | - | distributor. |
---|
624 | | - | (c) Take any action that is unfair or unreasonable to |
---|
625 | | - | the dealer. |
---|
626 | | - | (d) Enter into an agreement that requires the dealer |
---|
627 | | - | to submit its disputes to binding arbitration or otherwise |
---|
628 | | - | waive rights or responsibilities provided under this sub- |
---|
629 | | - | chapter. |
---|
630 | | - | (e) Forego exercising a right authorized by a dealer |
---|
631 | | - | agreement or any law governing the manufacturer− |
---|
632 | | - | dealer relationship. |
---|
633 | | - | (3) A dealer bears the burden of proof regarding the |
---|
634 | | - | prohibited acts described in sub. (2). |
---|
635 | | - | SECTION 30. 218.167 of the statutes is created to read: |
---|
636 | | - | 218.167 Dispute resolution. (1) A dealer, manufac- |
---|
637 | | - | turer, distributor, or warrantor injured by a violation of |
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638 | | - | this subchapter by another dealer, manufacturer, distribu- |
---|
639 | | - | tor, or warrantor may bring a civil action in circuit court |
---|
640 | | - | to recover actual damages. The court shall award attor- |
---|
641 | | - | ney fees and costs to the prevailing party in an action |
---|
642 | | - | under this section. Venue for any civil action authorized |
---|
643 | | - | by this section shall be exclusively in the county in which |
---|
644 | | - | the dealership is located. In an action involving more |
---|
645 | | - | than one dealer, venue may be in any county in which a |
---|
646 | | - | dealer who is party to the action is located. |
---|
647 | | - | (2) (a) Before bringing suit under this section, the |
---|
648 | | - | party bringing suit for an alleged violation shall serve a |
---|
649 | | - | written demand for mediation upon the offending party. |
---|
650 | | - | This paragraph does not apply to a proceeding for injunc- |
---|
651 | | - | tive relief. |
---|
652 | | - | (b) A demand for mediation under this subsection |
---|
653 | | - | shall be served upon the offending party by certified mail |
---|
654 | | - | at the address stated within the dealer agreement between |
---|
655 | | - | the parties or, if the address is not contained in the agree- |
---|
656 | | - | ment or the address is no longer valid, the address on the |
---|
657 | | - | offending party’s license filed with this state. In the event |
---|
658 | | - | of a civil action between 2 dealers, the demand shall be |
---|
659 | | - | mailed to the address on the dealer’s license filed with |
---|
660 | | - | this state. |
---|
661 | | - | (c) A demand for mediation under this subsection |
---|
662 | | - | shall contain a brief statement of the dispute and the relief |
---|
663 | | - | sought by the party filing the demand. |
---|
664 | | - | (d) Within 20 days after the date a demand for media- |
---|
665 | | - | tion is served under par. (b), the parties shall mutually |
---|
666 | | - | select an independent mediator and meet with the media- |
---|
667 | | - | tor for the purpose of attempting to resolve the dispute. |
---|
668 | | - | The meeting place shall be in this state in a location |
---|
669 | | - | selected by the mediator. The mediator may extend the |
---|
670 | | - | date of the meeting for good cause shown by either party |
---|
671 | | - | or upon stipulation of both parties. |
---|
672 | | - | (e) The service of a demand for mediation under this |
---|
673 | | - | subsection stays the time for the filing of any complaint, |
---|
674 | | - | petition, protest, or action under this subchapter until rep- |
---|
675 | | - | resentatives of both parties have met with a mutually |
---|
676 | | - | selected mediator for the purpose of attempting to resolve |
---|
677 | | - | the dispute. If a complaint, petition, protest, or action is |
---|
678 | | - | filed before that meeting, the court shall enter an order |
---|
679 | | - | suspending the proceeding or action until the meeting has |
---|
680 | | - | occurred and may, upon written stipulation of all parties |
---|
681 | | - | to the proceeding or action that they wish to continue to |
---|
682 | | - | mediate under this subsection, enter an order suspending |
---|
683 | | - | the proceeding or action for as long a period as the court |
---|
684 | | - | considers appropriate. A suspension order issued under |
---|
685 | | - | this paragraph may be revoked by the court. |
---|
686 | | - | (f) The parties to a mediation under this subsection |
---|
687 | | - | shall bear their own costs for attorney fees and divide |
---|
688 | | - | equally the cost of the mediator. |
---|
689 | | - | (3) In addition to the remedies provided in this sec- |
---|
690 | | - | tion, and notwithstanding the existence of any additional |
---|
691 | | - | remedy at law, a dealer or manufacturer may apply to a |
---|
692 | | - | circuit court for the grant, upon a hearing and for cause |
---|
693 | | - | shown, of a temporary or permanent injunction, or both, |
---|
694 | | - | restraining any person from acting as a dealer, manufac- |
---|
695 | | - | turer, or distributor without being properly licensed |
---|
696 | | - | under this chapter, from violating or continuing to violate |
---|
697 | | - | any of the provisions of this subchapter, or from failing |
---|
698 | | - | or refusing to comply with the requirements of this sub- |
---|
699 | | - | chapter. An injunction under this subsection shall be |
---|
700 | | - | issued without bond. A single act in violation of any of |
---|
701 | | - | the provisions of this subchapter is sufficient to authorize |
---|
702 | | - | the issuance of an injunction. |
---|
703 | | - | SECTION 31. 340.01 (6m) of the statutes is amended |
---|
704 | | - | to read: |
---|
705 | | - | 340.01 (6m) “Camping trailer” means a vehicle with |
---|
706 | | - | a collapsible or folding structure designed for human |
---|
707 | | - | habitation and to provide temporary living quarters for |
---|
708 | | - | recreation, camping, or travel use and to be towed upon |
---|
709 | | - | a highway by a motor vehicle. |
---|
710 | | - | SECTION 32. 340.01 (18m) of the statutes is amended |
---|
711 | | - | to read: |
---|
712 | | - | 340.01 (18m) “Fifth−wheel recreational vehicle” |
---|
713 | | - | means a recreational vehicle that is towed by a vehicle |
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714 | | - | with a flatbed frame so the trailer hitch of the recreational − 8 −2023 Wisconsin Act 164 2023 Assembly Bill 230 |
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715 | | - | vehicle is bolted to the flatbed frame of the towing vehi- |
---|
716 | | - | cle that is mounted on wheels, that is of a size and weight |
---|
717 | | - | such that a special highway movement permit is not |
---|
718 | | - | required, and that is designed to be towed by a motor |
---|
719 | | - | vehicle utilizing a kingpin and 5th wheel coupling device |
---|
720 | | - | mounted above or forward of the rear axle of the tow |
---|
721 | | - | vehicle. |
---|
722 | | - | SECTION 33. 340.01 (48r) of the statutes is amended |
---|
723 | | - | to read: |
---|
724 | | - | 340.01 (48r) “Recreational vehicle” means a vehicle |
---|
725 | | - | that is designed to be towed upon a highway by a motor |
---|
726 | | - | vehicle, that is equipped and used, or intended to be used, |
---|
727 | | - | primarily for temporary or recreational human habita- |
---|
728 | | - | tion, that has walls of rigid construction, and that does not |
---|
729 | | - | exceed 45 46 feet in length. “Recreational vehicle” |
---|
730 | | - | includes a camping trailer, 5th−wheel recreational vehi- |
---|
731 | | - | cle, park model recreational vehicle, as defined in s. |
---|
732 | | - | 218.10 (7m), and travel trailer, as defined in s. 218.10 |
---|
733 | | - | (8v). |
---|
734 | | - | SECTION 34. 341.25 (1) (i) of the statutes is amended |
---|
735 | | - | to read: |
---|
736 | | - | 341.25 (1) (i) For each recreational vehicle, and for |
---|
737 | | - | each camping trailer, a fee of $15. |
---|
738 | | - | SECTION 35. 348.07 (2) (L) of the statutes is created |
---|
739 | | - | to read: |
---|
740 | | - | 348.07 (2) (L) Forty−six feet for a towed recreational |
---|
741 | | - | vehicle. |
---|
742 | | - | SECTION 36. 348.08 (1) (i) of the statutes is amended |
---|
743 | | - | to read: |
---|
744 | | - | 348.08 (1) (i) A 3−vehicle combination consisting of |
---|
745 | | - | a towing vehicle and, in order by weight, with the lighter |
---|
746 | | - | of the towed vehicles as the 3rd vehicle in the 3−vehicle |
---|
747 | | - | combination unless not structurally possible, a recre- |
---|
748 | | - | ational vehicle or camping trailer as the 2nd vehicle, and |
---|
749 | | - | a recreational vehicle, camping trailer, or trailer carrying |
---|
750 | | - | any vehicle for recreational use or carrying no load as the |
---|
751 | | - | 3rd vehicle may, without a permit, be operated on a high- |
---|
752 | | - | way if the overall length of the combination of vehicles |
---|
753 | | - | does not exceed 65 feet and, if the total weight, including |
---|
754 | | - | any load, of all towed vehicles exceeds 3,000 pounds, one |
---|
755 | | - | of the towed vehicles is equipped with brakes. No |
---|
756 | | - | 3−vehicle combination may operate under this paragraph |
---|
757 | | - | if highway or weather conditions include heavy snow, |
---|
758 | | - | freezing rain, icy roads, high winds, limited visibility, or |
---|
759 | | - | upon a highway that is closed or partially closed by the |
---|
| 1053 | + | SECTION 28. 340.01 (18m) of the statutes is amended to read: |
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| 1054 | + | 340.01 (18m) “Fifth-wheel recreational vehicle" means a recreational vehicle |
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| 1055 | + | that is towed by a vehicle with a flatbed frame so the trailer hitch of the recreational |
---|
| 1056 | + | vehicle is bolted to the flatbed frame of the towing vehicle mounted on wheels that |
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| 1057 | + | is designed to provide temporary living quarters for recreational, camping, or travel |
---|
| 1058 | + | use, that is of a size and weight that a special highway movement permit is not |
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| 1085 | + | SECTION 28 ASSEMBLY BILL 230 |
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| 1086 | + | required, and that is designed to be towed by a motor vehicle that contains a towing |
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| 1087 | + | mechanism that is mounted above or forward of the rear axle of the tow vehicle. |
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| 1088 | + | SECTION 29. 340.01 (48r) of the statutes is amended to read: |
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| 1089 | + | 340.01 (48r) “Recreational vehicle" means a vehicle that is designed to be |
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| 1090 | + | towed upon a highway by a motor vehicle, that is equipped and used, or intended to |
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| 1091 | + | be used, primarily for temporary or recreational human habitation, that has walls |
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| 1092 | + | of rigid construction, and that does not exceed 45 feet in length. “Recreational |
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| 1093 | + | vehicle” includes a camping trailer, fifth-wheel recreational vehicle, park model |
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| 1094 | + | recreational vehicle, as defined in s. 218.10 (7m), travel trailer, as defined in s. 218.10 |
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| 1095 | + | (8v), and truck camper, as defined in s. 218.10 (8w). |
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| 1096 | + | SECTION 30. 341.25 (1) (i) of the statutes is amended to read: |
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| 1097 | + | 341.25 (1) (i) For each recreational vehicle, and for each camping trailer, a fee |
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| 1098 | + | of $15. |
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| 1099 | + | SECTION 31. 348.08 (1) (i) of the statutes is amended to read: |
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| 1100 | + | 348.08 (1) (i) A 3-vehicle combination consisting of a towing vehicle and, in |
---|
| 1101 | + | order by weight, with the lighter of the towed vehicles as the 3rd vehicle in the |
---|
| 1102 | + | 3-vehicle combination unless not structurally possible, a recreational vehicle or |
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| 1103 | + | camping trailer as the 2nd vehicle, and a recreational vehicle, camping trailer, or |
---|
| 1104 | + | trailer carrying any vehicle for recreational use or carrying no load as the 3rd vehicle |
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| 1105 | + | may, without a permit, be operated on a highway if the overall length of the |
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| 1106 | + | combination of vehicles does not exceed 65 feet and, if the total weight, including any |
---|
| 1107 | + | load, of all towed vehicles exceeds 3,000 pounds, one of the towed vehicles is equipped |
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| 1108 | + | with brakes. No 3-vehicle combination may operate under this paragraph if |
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| 1109 | + | highway or weather conditions include heavy snow, freezing rain, icy roads, high |
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| 1137 | + | ASSEMBLY BILL 230 |
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| 1138 | + | winds, limited visibility, or upon a highway that is closed or partially closed by the |
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