Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB225 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 SENATE BILL 225
5	5	April 14, 2023 - Introduced by Senators TESTIN, HESSELBEIN, FEYEN, SPREITZER and
6	6	WANGGAARD, cosponsored by Representatives KRUG, CONSIDINE, CONLEY,
7	7	DOYLE, GREEN, JOERS, SCHMIDT and SUBECK. Referred to Committee on
8	8	Transportation and Local Government.
9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to amend 218.10 (8m), 340.01 (6m), 340.01 (18m), 340.01 (48r), 341.25
11	11	(1) (i), 348.08 (1) (i) and 348.08 (1) (j); and to create 218.10 (1b), 218.10 (1c),
12	12	218.10 (1d), 218.10 (1i), 218.10 (1n), 218.10 (1o), 218.10 (1p), 218.10 (1q), 218.10
13	13	(1t), 218.10 (2), 218.10 (7m), 218.10 (7w), 218.10 (8u), 218.10 (8v), 218.10 (8w),
14	14	218.10 (10), 218.10 (11), 218.161, 218.162, 218.163, 218.164, 218.165, 218.166,
15	15	218.167 and 218.17 (1) of the statutes; relating to: recreational vehicle
16	16	manufacturers, distributors, and dealers, the definition of recreational
17	17	vehicles, and providing a penalty.
18	18	Analysis by the Legislative Reference Bureau
19	19	This bill provides additional regulation of recreational vehicle (RV) dealers,
20	20	manufacturers, and distributors and expands the definition of recreational vehicle
21	21	for purposes of vehicle registration and equipment requirements.
22	22	Under current law, RV dealers must be licensed by the Department of
23	23	Transportation. An RV dealer license may be denied, suspended, or revoked for a
24	24	number of reasons, including failure to comply with licensing requirements,
25	25	committing certain types of fraud, or engaging in unconscionable business practices.
26	26	In addition, persons who violate the statutes governing RV dealer licensure may be
27	27	required to forfeit between $25 and $100 for a first offense and may be fined between
28	28	$25 and $100 for a second or subsequent offense within three years.
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38	38	SENATE BILL 225
39	39	This bill provides additional regulation of RV dealers and regulates various
40	40	aspects of the relationship between RV dealers and RV manufacturers or
41	41	distributors. Specifically, among other things, the bill does all of the following:
42	42	1. Requires a dealer agreement between each RV dealer and the manufacturer
43	43	or distributor of the RVs the dealer sells. The bill further specifies certain contents
44	44	of the agreement, including an exclusive sales area for each RV dealer.
45	45	2. Prohibits RV manufacturers and distributors from terminating or failing to
46	46	renew a dealer agreement without good cause. The bill provides criteria that must
47	47	be considered when assessing whether good cause exists.
48	48	3. Requires an RV manufacturer or distributor to provide notice before
49	49	terminating or nonrenewing a dealer agreement and provides that a termination or
50	50	nonrenewal must be rescinded upon certain actions by an RV dealer.
51	51	4. Provides that an RV dealer may terminate or nonrenew an agreement with
52	52	an RV manufacturer upon 30 days' notice.
53	53	5. In certain cases, requires an RV manufacturer to repurchase certain
54	54	products provided to RV dealers, including new RVs, certain RV accessories, and
55	55	certain repair equipment, upon termination of a dealer agreement.
56	56	6. Requires an RV manufacturer or distributor to allow an RV dealer to
57	57	designate a family member as a successor to its dealer agreement.
58	58	7. Specifies obligations with regard to warranty repairs.
59	59	8. Provides that DOT may administratively fine any person who violates the
60	60	provisions of the bill up to $1,000 for each violation.
61	61	Current law defines “recreational vehicle” for purposes of vehicle registration,
62	62	vehicle equipment standards and certain other vehicle regulation. This bill modifies
63	63	and expands the definition of “recreational vehicle” for these purposes. Among the
64	64	changes, “recreational vehicle” is specifically expanded to include a camping trailer
65	65	and a “truck camper,” which is defined as “a portable unit that is constructed to
66	66	provide temporary living quarters for recreational, camping, or travel use and that
67	67	consists of a roof, floor, and sides and that is designed to be loaded onto and unloaded
68	68	from the back of a pickup truck.” The vehicles that satisfy the expanded definition
69	69	may not be operated on a highway unless registered with DOT and must meet certain
70	70	equipment requirements, including requirements related to brakes, safety glass,
71	71	and coupling.
72	72	Because this bill creates a new crime or revises a penalty for an existing crime,
73	73	the Joint Review Committee on Criminal Penalties may be requested to prepare a
74	74	report.
75	75	For further information see the state fiscal estimate, which will be printed as
76	76	an appendix to this bill.
77	77	The people of the state of Wisconsin, represented in senate and assembly, do
78	78	enact as follows:
79	79	SECTION 1. 218.10 (1b) of the statutes is created to read:1 - 3 -2023 - 2024 Legislature
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82	82	SECTION 1
83	83	SENATE BILL 225
84	84	218.10 (1b) “Area of sales responsibility” means the geographical area agreed
85	85	to by the dealer and the manufacturer or distributor in a dealer agreement within
86	86	which the dealer has the exclusive right to display or sell the manufacturer's new
87	87	recreational vehicles of a particular line-make.
88	88	SECTION 2. 218.10 (1c) of the statutes is created to read:
89	89	218.10 (1c) “Camping trailer” means a vehicle with a collapsible or folding
90	90	structure designed to provide temporary living quarters for recreational, camping,
91	91	or travel use and to be towed upon a highway by a motor vehicle.
92	92	SECTION 3. 218.10 (1d) of the statutes is created to read:
93	93	218.10 (1d) “Component manufacturer” means a person, firm, corporation, or
94	94	business entity that engages in the manufacturing of components, accessories, or
95	95	parts used in manufacturing recreational vehicles.
96	96	SECTION 4. 218.10 (1i) of the statutes is created to read:
97	97	218.10 (1i) “Dealer agreement” means a written agreement or contract entered
98	98	into by a dealer and a manufacturer or distributor that fixes the rights and
99	99	responsibilities of the parties and pursuant to which the dealer sells new
100	100	recreational vehicles.
101	101	SECTION 5. 218.10 (1n) of the statutes is created to read:
102	102	218.10 (1n) “Distributor” means a person, firm, corporation, or business entity
103	103	that purchases new recreational vehicles for resale to dealers.
104	104	SECTION 6. 218.10 (1o) of the statutes is created to read:
105	105	218.10 (1o) “Factory campaign” means an effort on the part of a warrantor to
106	106	contact recreational vehicle owners or dealers in order to address a part or equipment
107	107	issue.
108	108	SECTION 7. 218.10 (1p) of the statutes is created to read:
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135	135	SECTION 7 SENATE BILL 225
136	136	218.10 (1p) “Family member” means an individual's spouse or an individual's
137	137	child, grandchild, parent, sibling, niece, or nephew or the spouse of any of these.
138	138	SECTION 8. 218.10 (1q) of the statutes is created to read:
139	139	218.10 (1q) “Fifth-wheel travel trailer" means a vehicle mounted on wheels
140	140	that is designed to provide temporary living quarters for recreational, camping, or
141	141	travel use, that is of a size and weight that a special highway movement permit is
142	142	not required, and that is designed to be towed by a motor vehicle that contains a
143	143	towing mechanism that is mounted above or forward of the rear axle of the tow
144	144	vehicle.
145	145	SECTION 9. 218.10 (1t) of the statutes is created to read:
146	146	218.10 (1t) “Line-make” means a specific series of recreational vehicle
147	147	products, the sale of which may be authorized by a dealer agreement, that satisfies
148	148	all of the following:
149	149	(a) Is targeted to a particular market segment, as determined by the decor,
150	150	features, equipment, size, weight, and price range.
151	151	(b) Has lengths and interior floor plans that distinguish the series of
152	152	recreational vehicle products from other series with substantially the same decor,
153	153	features, equipment, weight, and price.
154	154	(c) Belongs to a single, distinct classification of recreational vehicle product
155	155	type having a substantial degree of commonality in the construction of the chassis,
156	156	frame, and body.
157	157	SECTION 10. 218.10 (2) of the statutes is created to read:
158	158	218.10 (2) “Model” is a series of recreational vehicle products identified by a
159	159	common series trade name or trademark that is a subset of a line-make.
160	160	SECTION 11. 218.10 (7m) of the statutes is created to read:
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188	188	SECTION 11
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190	190	218.10 (7m) “Park model recreational vehicle” means a recreational vehicle
191	191	that is all of the following:
192	192	(a) Designed and marketed as temporary living quarters for recreational,
193	193	camping, travel, or seasonal use.
194	194	(b) Not permanently affixed to real property for use as a permanent dwelling.
195	195	(c) Built on a single chassis mounted on wheels with a gross trailer area not
196	196	exceeding 400 square feet in the setup mode.
197	197	(d) Certified by the manufacturer as complying with the ANSI A119.5 Park
198	198	Model Recreational Vehicle Standard.
199	199	SECTION 12. 218.10 (7w) of the statutes is created to read:
200	200	218.10 (7w) “Proprietary part” means any part manufactured by or for and sold
201	201	exclusively by the manufacturer.
202	202	SECTION 13. 218.10 (8m) of the statutes is amended to read:
203	203	218.10 (8m) “Recreational vehicle" has the meaning given in s. 340.01 (48r)
204	204	means a vehicle that is designed to be towed upon a highway by a motor vehicle, that
205	205	is equipped and used, or intended to be used, primarily for temporary or recreational
206	206	human habitation, and that does not exceed 45 feet in length. “Recreational vehicle”
207	207	includes a camping trailer, fifth-wheel travel trailer, park model recreational
208	208	vehicle, travel trailer, and truck camper.
209	209	SECTION 14. 218.10 (8u) of the statutes is created to read:
210	210	218.10 (8u) “Transient customer” means a customer who is temporarily
211	211	traveling through a dealer's area of sales responsibility.
212	212	SECTION 15. 218.10 (8v) of the statutes is created to read:
213	213	218.10 (8v) “Travel trailer” means a vehicle that is mounted on wheels, that
214	214	is designed to provide temporary living quarters for recreational, camping, or travel
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241	241	SECTION 15 SENATE BILL 225
242	242	use, and that is of a size or weight that a special highway movement permit is not
243	243	required when towed by a motor vehicle.
244	244	SECTION 16. 218.10 (8w) of the statutes is created to read:
245	245	218.10 (8w) “Truck camper" means a portable unit that is constructed to
246	246	provide temporary living quarters for recreational, camping, or travel use and that
247	247	consists of a roof, floor, and sides and that is designed to be loaded onto and unloaded
248	248	from the back of a pickup truck.
249	249	SECTION 17. 218.10 (10) of the statutes is created to read:
250	250	218.10 (10) “Warrantor” means a person, firm, corporation, or business entity
251	251	that gives a warranty in connection with a new recreational vehicle or parts,
252	252	accessories, or components of a new recreational vehicle.
253	253	SECTION 18. 218.10 (11) of the statutes is created to read:
254	254	218.10 (11) “Warranty” does not include service contracts, mechanical or other
255	255	insurance, or extended warranties sold for separate consideration by a dealer or
256	256	other person not controlled by a manufacturer.
257	257	SECTION 19. 218.161 of the statutes is created to read:
258	258	218.161 Dealer agreement requirement. (1) A manufacturer or
259	259	distributor may not sell a new recreational vehicle in this state to or through a dealer
260	260	without having first entered into a written dealer agreement with a dealer that has
261	261	been signed by both parties.
262	262	(2) The manufacturer shall designate the area of sales responsibility
263	263	exclusively assigned to a dealer in the dealer agreement and may not change the area
264	264	of sales responsibility or contract with another dealer for sale of the same model or
265	265	line-make, as specified in the agreement, in the designated area of sales
266	266	responsibility during the duration of the agreement.
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294	294	SECTION 19
295	295	SENATE BILL 225
296	296	(3) The terms of the dealer agreement, including the area of sales
297	297	responsibility, may not be reviewed or changed during the duration of the dealer
298	298	agreement without the written mutual consent of the parties. The duration of the
299	299	dealer agreement shall be stated in the dealer agreement.
300	300	(4) A dealer may not sell a new recreational vehicle in this state without having
301	301	first entered into a dealer agreement with a manufacturer or distributor and may not
302	302	sell outside the area of sales responsibility designated in the agreement under sub.
303	303	(2).
304	304	(5) A manufacturer may not unilaterally issue a policy or procedure that
305	305	violates or substantially alters a provision of the dealer agreement during the
306	306	duration of the agreement.
307	307	(6) A manufacturer shall distribute new recreational vehicles to its dealers in
308	308	a fair and equitable manner. If requested, a manufacturer shall provide information
309	309	on its manner of distribution.
310	310	(7) A manufacturer shall provide its dealer with adequate technical data to
311	311	perform proper service and repairs.
312	312	SECTION 20. 218.162 of the statutes is created to read:
313	313	218.162 Termination of dealer agreement. (1) (a) A manufacturer or
314	314	distributor, directly or through any officer, agent, or employee, may terminate,
315	315	cancel, or fail to renew a model, line-make, or entire dealer agreement only with good
316	316	cause, and, upon renewal, may not require additional inventory stocking
317	317	requirements or increased retail sales targets in excess of the market growth in the
318	318	dealer's area of sales responsibility.
319	319	(b) A manufacturer or distributor has the burden of showing good cause for
320	320	terminating, canceling, or failing to renew a model, line-make, or dealer agreement
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347	347	SECTION 20 SENATE BILL 225
348	348	with a dealer. For purposes of determining whether there is good cause for the
349	349	proposed action, any of the following factors may be considered:
350	350	1. The extent of the affected dealer's penetration in the relevant market area
351	351	for the relevant model or line-make.
352	352	2. The nature and extent of the dealer's investment in its business.
353	353	3. The adequacy of the dealer's service facilities, equipment, parts, supplies,
354	354	and personnel.
355	355	4. The effect of the proposed action on the community.
356	356	5. The extent and quality of the dealer's service under recreational vehicle
357	357	warranties.
358	358	6. The failure to follow agreed-upon, reasonable procedures or standards
359	359	related to the overall operation of the dealership consistent with the law and the
360	360	dealer agreement.
361	361	7. The dealer's performance under the terms of its dealer agreement.
362	362	(c) 1. Except as provided in this paragraph, a manufacturer or distributor shall
363	363	provide a dealer with at least 120 days' prior written notice of termination,
364	364	cancellation, or nonrenewal of a model, line-make, or entire dealer agreement.
365	365	2. The notice under subd. 1. shall state all reasons for the proposed termination,
366	366	cancellation, or nonrenewal and shall state that if, within 30 days following receipt
367	367	of the notice, the dealer provides to the manufacturer or distributor a written notice
368	368	of intent to cure all claimed deficiencies, the dealer will then have 120 days following
369	369	receipt of the notice to rectify the deficiencies. If the deficiencies are rectified within
370	370	120 days, the manufacturer's or distributor's notice is voided. If the dealer fails to
371	371	provide the notice of intent to cure the deficiencies in the prescribed period, the
372	372	termination, cancellation, or nonrenewal takes effect 30 days after the dealer's
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400	400	SECTION 20
401	401	SENATE BILL 225
402	402	receipt of the notice unless the dealer has new and untitled inventory on hand that
403	403	may be disposed of as provided under sub. (3).
404	404	3. The notice period under subd. 1. may be reduced to 30 days if the grounds
405	405	for termination, cancellation, or nonrenewal are due to any of the following:
406	406	a. A dealer or one of its owners being convicted of a felony.
407	407	b. The abandonment or closing of the business operations of the dealer for 10
408	408	consecutive business days unless the closing is due to an act of God, strike, labor
409	409	difficulty, or other cause over which the dealer has no control.
410	410	c. A significant misrepresentation by the dealer materially affecting the
411	411	business relationship.
412	412	d. A suspension of, revocation of, or refusal to renew the dealer's license by the
413	413	department.
414	414	4. The notice provisions of this paragraph do not apply if the reason for
415	415	termination, cancellation, or nonrenewal is insolvency, the occurrence of an
416	416	assignment for the benefit of creditors, or bankruptcy.
417	417	(2) A dealer may terminate, cancel, or fail to renew a model, line-make, or
418	418	entire dealer agreement with a manufacturer or distributor with or without good
419	419	cause at any time by giving 30 days' written notice to the manufacturer. If the
420	420	termination, cancellation, or nonrenewal is for good cause, the dealer has the burden
421	421	of showing good cause. Any of the following items, among others, may be deemed
422	422	good cause for the proposed action by a dealer:
423	423	(a) A manufacturer being convicted of a felony.
424	424	(b) The business operations of the manufacturer have been abandoned or closed
425	425	for 10 consecutive business days, unless the closing is due to an act of God, strike,
426	426	labor difficulty, or other cause over which the manufacturer has no control.
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453	453	SECTION 20 SENATE BILL 225
454	454	(c) A significant misrepresentation by the manufacturer materially affecting
455	455	the business relationship.
456	456	(d) A material violation of this subchapter that is not cured within 30 days after
457	457	written notice by the dealer.
458	458	(e) A declaration by the manufacturer of insolvency, the occurrence of an
459	459	assignment for the benefit of creditors, or bankruptcy.
460	460	(f) A manufacturer's material violation of the dealer agreement that is not
461	461	cured within 120 days after written notice by the dealer.
462	462	(g) Manufacturer coercion of the dealer under s. 218.166.
463	463	(h) Manufacturer violation of area of sales responsibility protections or
464	464	allowing other dealers to violate these protections.
465	465	(3) If the dealer agreement is terminated, canceled, or not renewed by the
466	466	dealer for good cause, the manufacturer shall, at the election of the dealer and within
467	467	45 days after termination, cancellation, or nonrenewal, repurchase all of the
468	468	following:
469	469	(a) All new, untitled recreational vehicles that were acquired from the
470	470	manufacturer or distributor within 18 months before the date of the notice of
471	471	termination, cancellation, or nonrenewal that have not been used, except for
472	472	demonstration purposes, and that have not been altered or damaged, at 100 percent
473	473	of the net invoice cost, including transportation, less applicable rebates and
474	474	discounts to the dealer. If any of the recreational vehicles repurchased is damaged,
475	475	the amount due to the dealer shall be reduced by the cost to repair the damaged
476	476	recreational vehicle. Damage prior to delivery to the dealer will not disqualify
477	477	repurchase under this subsection. Any repurchased recreational vehicle must be
478	478	paid for in full before the recreational vehicle is removed from the dealer's premises.
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506	506	SECTION 20
507	507	SENATE BILL 225
508	508	Upon payment under this paragraph, recreational vehicles must be immediately
509	509	surrendered to the manufacturer.
510	510	(b) All undamaged accessories or proprietary parts sold to the dealer for resale
511	511	within the 12 months prior to termination, cancellation, or nonrenewal, if
512	512	accompanied by the original invoice, at 105 percent of the original net price paid to
513	513	the manufacturer or distributor to compensate the dealer for handling, packing, and
514	514	shipping the parts.
515	515	(c) Any properly functioning diagnostic equipment, special tools, current
516	516	signage, or other equipment and machinery at 100 percent of the dealer's net cost
517	517	plus freight, destination, delivery, and distribution charges and sales taxes, if any,
518	518	if the equipment, tools, signage, or machinery was purchased by the dealer within
519	519	5 years before termination, cancellation, or nonrenewal and upon the
520	520	manufacturer's or distributor's request and can no longer be used in the normal
521	521	course of the dealer's ongoing business.
522	522	(4) If a dealer agreement is terminated, canceled, or not renewed by the
523	523	manufacturer or distributor without good cause in violation of sub. (1), the
524	524	manufacturer or distributor shall repurchase dealer recreational vehicles,
525	525	accessories, and other equipment in the manner provided in sub. (3).
526	526	(5) (a) A dealer is not prohibited from selling any remaining in-stock inventory
527	527	of a particular model or line-make after a dealer agreement has been terminated,
528	528	cancelled, or not renewed by the manufacturer.
529	529	(b) If recreational vehicles of a model or line-make subject to a terminated
530	530	agreement are not repurchased or required to be repurchased by the manufacturer
531	531	or distributor, the dealer may continue to sell recreational vehicles that are subject
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556	556	EVM:cjs
557	557	SECTION 20 SENATE BILL 225
558	558	to the terminated dealer agreement and are currently in stock until those
559	559	recreational vehicles are no longer in the dealer's inventory.
560	560	(6) When taking on an additional line-make, a dealer shall notify in writing
561	561	any manufacturer with whom the dealer has a dealer agreement of the same
562	562	line-make at least 30 days prior to entering into a dealer agreement with the
563	563	manufacturer of the additional line-make.
564	564	SECTION 21. 218.163 of the statutes is created to read:
565	565	218.163 Transfer of ownership. (1) If a dealer desires to make a change in
566	566	ownership by the sale of business assets, stock transfer, or otherwise, the dealer shall
567	567	give the manufacturer or distributor written notice at least 10 business days before
568	568	the closing, along with all supporting documentation as may be reasonably required
569	569	by the manufacturer or distributor to determine if an objection to the sale may be
570	570	made. In the absence of a breach by the selling dealer of its dealer agreement or this
571	571	subchapter, the manufacturer or distributor may not object to the proposed change
572	572	in ownership unless any of the following applies to the prospective transferee:
573	573	(a) The transferee has previously been terminated for cause by the
574	574	manufacturer.
575	575	(b) The transferee has been convicted of a felony or any crime of fraud, deceit,
576	576	or moral turpitude.
577	577	(c) The transferee lacks any license required by law.
578	578	(d) The transferee does not have an active line of credit sufficient to purchase
579	579	a manufacturer's product.
580	580	(e) The transferee has undergone in the last 10 years bankruptcy, insolvency,
581	581	a general assignment for the benefit of creditors, or the appointment of a receiver,
582	582	trustee, or conservator to take possession of the transferee's business or property.
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608	608	LRB-2343/1
609	609	EVM:cjs
610	610	SECTION 21
611	611	SENATE BILL 225
612	612	(2) If a manufacturer or distributor objects to a proposed change in ownership,
613	613	the manufacturer or distributor shall give written notice of its reasons to the dealer
614	614	within 7 business days after receipt of the dealer's notification and complete
615	615	documentation. The manufacturer or distributor has the burden of proof with regard
616	616	to its objection. If the manufacturer or distributor does not give timely notice of its
617	617	objection, the change, sale, or transfer shall be approved.
618	618	(3) (a) A manufacturer or distributor shall provide a dealer an opportunity to
619	619	designate, in writing, a family member as a successor to the dealership in the event
620	620	of the death, incapacity, or retirement of the dealer. A manufacturer or distributor
621	621	may not prevent or refuse to honor the succession unless the manufacturer or
622	622	distributor has provided to the dealer written notice of its objections within 10
623	623	business days after receipt of the dealer's modification of the dealer's succession
624	624	plan. In the absence of a breach of the dealer agreement, the manufacturer may
625	625	object to the succession only for any of the following reasons:
626	626	1. Conviction of the successor of a felony or any crime of fraud, deceit, or moral
627	627	turpitude.
628	628	2. Bankruptcy or insolvency of the successor during the past 10 years.
629	629	3. Prior termination by the manufacturer of the successor for breach of a dealer
630	630	agreement.
631	631	4. The lack of an active line of credit for the successor sufficient to purchase the
632	632	manufacturer's product.
633	633	5. The lack of any license for the successor required by law.
634	634	(b) The manufacturer or distributor has the burden of proof regarding its
635	635	objection. A family member may not succeed to a dealership if the succession
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660	660	EVM:cjs
661	661	SECTION 21 SENATE BILL 225
662	662	involves, without the manufacturer's or distributor's consent, a relocation of the
663	663	business or an alteration of the terms and conditions of the dealer agreement.
664	664	SECTION 22. 218.164 of the statutes is created to read:
665	665	218.164 Warranty obligation. (1) Each warrantor shall do all of the
666	666	following:
667	667	(a) Specify, in writing, to each of the warrantor's dealers, the dealer's
668	668	obligations, if any, for preparation, delivery, and warranty service on the warrantor's
669	669	products.
670	670	(b) Compensate the dealer for warranty service performed by the dealer that
671	671	is covered by the warrantor's own warranty.
672	672	(c) Provide the dealer with the schedule of compensation to be paid and the time
673	673	allowances for the performance of any work and service. The schedule of
674	674	compensation shall include reasonable compensation for diagnostic work as well as
675	675	warranty labor. If the schedule of compensation required by this paragraph does not
676	676	include a particular repair, the warrantor shall reimburse the dealer for warranty
677	677	service for the actual time expended unless the warrantor demonstrates that the
678	678	actual time was not reasonable. If the warrantor demonstrates that the actual time
679	679	was not reasonable, the dealer shall be paid a reasonable sum.
680	680	(2) Time allowances for the diagnosis and performance of warranty labor shall
681	681	be reasonable for the work to be performed. The compensation of a dealer for
682	682	warranty labor may not be less than the lowest retail labor rate actually charged by
683	683	the dealer in the ordinary course of business for like nonwarranty labor as long as
684	684	the rate is reasonable.
685	685	(3) The warrantor shall reimburse the dealer for any warranty part at actual
686	686	wholesale cost plus a minimum 30 percent handling charge and the cost, if any, of
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711	711	25 - 15 -2023 - 2024 Legislature
712	712	LRB-2343/1
713	713	EVM:cjs
714	714	SECTION 22
715	715	SENATE BILL 225
716	716	freight to return such part to the warrantor. If a part is sent to the dealer at no cost,
717	717	the dealer is entitled to payment of 30 percent of the wholesale cost of the part from
718	718	warrantor as a handling charge. The maximum handling charge for a part shall not
719	719	exceed $300. If the warrantor requires the dealer to return a warranty part,
720	720	accessory, or complete component, the warrantor shall reimburse the dealer the cost
721	721	of freight to return the part, accessory, or component.
722	722	(4) Warranty audits of dealer records may be conducted by the warrantor on
723	723	a reasonable basis, and dealer claims for warranty compensation may not be denied
724	724	except for cause, including performance of nonwarranty repairs, material
725	725	noncompliance with the warrantor's published policies and procedures, lack of
726	726	material documentation, fraud, or misrepresentation.
727	727	(5) A dealer shall submit warranty claims within 45 days after completing
728	728	work.
729	729	(6) A dealer shall notify the warrantor as soon as is reasonably possible,
730	730	verbally or in writing, if the dealer is unable or unwilling to perform material or
731	731	repetitive warranty repairs.
732	732	(7) A warrantor shall disapprove warranty claims in writing within 45 days
733	733	after the date of submission by the dealer in the manner and form prescribed by the
734	734	warrantor. Claims not specifically disapproved in writing within 45 days shall be
735	735	construed to be approved and must be paid within 60 days.
736	736	(8) No warrantor may do any of the following:
737	737	(a) Fail to perform any of its warranty obligations with respect to its warranted
738	738	products.
739	739	(b) Fail to include, in written notices of factory campaigns to recreational
740	740	vehicle owners and dealers, the expected date by which necessary parts and
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766	766	EVM:cjs
767	767	SECTION 22 SENATE BILL 225
768	768	equipment, including tires and chassis or chassis parts, will be available to dealers
769	769	to perform the factory campaign work. A warrantor may ship parts to the dealer to
770	770	affect the factory campaign work, and, if parts provided are in excess of the dealer's
771	771	requirements, the dealer may return unused parts to the warrantor for credit after
772	772	completion of the campaign.
773	773	(c) Fail to compensate any of its dealers for authorized repairs effected by the
774	774	dealer of merchandise damaged in manufacture or transit to the dealer if the carrier
775	775	is designated by the warrantor, factory branch, distributor, or distributor branch.
776	776	(d) Fail to compensate any of its dealers for authorized warranty service in
777	777	accordance with the time allowances set forth in the schedule of compensation under
778	778	sub. (1) (c) if performed in a timely and competent manner.
779	779	(e) Intentionally misrepresent in any way to purchasers of recreational
780	780	vehicles that warranties with respect to the manufacture, performance, or design of
781	781	the vehicle are made by the dealer as warrantor or co-warrantor.
782	782	(f) Require the dealer to make warranties to customers in any manner related
783	783	to the manufacture of the recreational vehicle.
784	784	(9) No dealer may do any of the following:
785	785	(a) Fail to perform predelivery inspection functions, as specified by the
786	786	warrantor, in a competent and timely manner.
787	787	(b) Fail to perform warranty service work authorized by the warrantor in a
788	788	reasonably competent and timely manner on any transient customer's vehicle of the
789	789	same line-make unless the dealer determines that the customer is acting in a
790	790	manner detrimental to its business.
791	791	(c) Fail to track actual time expended to perform warranty work not governed
792	792	by time allowances in the schedule of compensation under sub. (1) (c).
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818	818	LRB-2343/1
819	819	EVM:cjs
820	820	SECTION 22
821	821	SENATE BILL 225
822	822	(d) Claim an agency relationship with the warrantor or manufacturer.
823	823	(e) Misrepresent the terms of any warranty.
824	824	(10) Notwithstanding the terms of any dealer agreement, all of the following
825	825	apply:
826	826	(a) A warrantor shall indemnify, defend, and hold harmless its dealer against
827	827	any losses or damages to the extent such losses or damages are caused by the
828	828	negligence or willful misconduct of the warrantor. A dealer may not be denied
829	829	indemnification or a defense for failing to discover, disclose, or remedy a defect in the
830	830	design or manufacturing of the recreational vehicle. A dealer shall provide to the
831	831	warrantor a copy of any suit in which allegations are made under this section within
832	832	10 days after receiving the suit. This paragraph shall continue to apply even after
833	833	the recreational vehicle is titled. Indemnification shall include court costs,
834	834	reasonable attorney fees, and expert witness fees incurred by the dealer.
835	835	(b) A dealer shall indemnify, defend, and hold harmless its warrantor against
836	836	any losses or damages to the extent such losses or damages are caused by the
837	837	negligence or willful misconduct of the dealer. The warrantor shall provide to the
838	838	dealer a copy of any suit in which allegations are made under this section within 10
839	839	days after receiving the suit. This paragraph shall continue to apply even after the
840	840	recreational vehicle is titled. Indemnification must include court costs, reasonable
841	841	attorney fees, and expert witness fees incurred by the warrantor.
842	842	SECTION 23. 218.165 of the statutes is created to read:
843	843	218.165 Inspection of recreational vehicles. (1) Whenever a new
844	844	recreational vehicle is damaged prior to transit to the dealer or is damaged in transit
845	845	to the dealer when the carrier or means of transportation has been selected by the
846	846	manufacturer or distributor, the dealer shall notify the manufacturer or distributor
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872	872	EVM:cjs
873	873	SECTION 23 SENATE BILL 225
874	874	of the damage within the time frame specified in the dealer agreement and do any
875	875	of the following:
876	876	(a) Request from the manufacturer or distributor authorization to replace the
877	877	components, parts, and accessories damaged or otherwise correct the damage.
878	878	(b) Reject the vehicle within the time frame set forth in sub. (4).
879	879	(2) If a manufacturer or distributor refuses or fails to authorize repair of
880	880	damage described under sub. (1) within 10 days after receipt of notification under
881	881	sub. (1) or if the dealer rejects the recreational vehicle because of damage, ownership
882	882	of the new recreational vehicle reverts to the manufacturer or distributor.
883	883	(3) A dealer shall exercise due care in custody of a damaged recreational
884	884	vehicle, but the dealer shall have no other obligations, financial or otherwise, with
885	885	respect to that recreational vehicle.
886	886	(4) The time frame for inspection and rejection by the dealer shall be part of
887	887	the dealer agreement and may not be less than 2 business days after the physical
888	888	delivery of the recreational vehicle.
889	889	SECTION 24. 218.166 of the statutes is created to read:
890	890	218.166 Coercion. (1) In this section, “coerce” includes threatening to
891	891	terminate, cancel, or not renew a dealer agreement without good cause or
892	892	threatening to withhold product lines or delay product delivery as an inducement to
893	893	amending the dealer agreement.
894	894	(2) A manufacturer or distributor may not coerce or attempt to coerce a dealer
895	895	to do any of the following:
896	896	(a) Purchase a product that the dealer did not order.
897	897	(b) Enter into an agreement with the manufacturer or distributor.
898	898	(c) Take any action that is unfair or unreasonable to the dealer.
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924	924	LRB-2343/1
925	925	EVM:cjs
926	926	SECTION 24
927	927	SENATE BILL 225
928	928	(d) Enter into an agreement that requires the dealer to submit its disputes to
929	929	binding arbitration or otherwise waive rights or responsibilities provided under this
930	930	subchapter.
931	931	(e) Forego exercising a right authorized by a dealer agreement or any law
932	932	governing the manufacturer-dealer relationship.
933	933	(3) A dealer bears the burden of proof regarding the prohibited acts described
934	934	in sub. (2).
935	935	SECTION 25. 218.167 of the statutes is created to read:
936	936	218.167 Dispute resolution. (1) A dealer, manufacturer, distributor, or
937	937	warrantor injured by a violation of this subchapter by another dealer, manufacturer,
938	938	distributor, or warrantor may bring a civil action in circuit court to recover actual
939	939	damages. The court shall award attorney fees and costs to the prevailing party in
940	940	an action under this section. Venue for any civil action authorized by this section
941	941	shall be exclusively in the county in which the dealership is located. In an action
942	942	involving more than one dealer, venue may be in any county in which a dealer who
943	943	is party to the action is located.
944	944	(2) (a) Before bringing suit under this section, the party bringing suit for an
945	945	alleged violation shall serve a written demand for mediation upon the offending
946	946	party. This paragraph does not apply to a proceeding for injunctive relief.
947	947	(b) A demand for mediation under this subsection shall be served upon the
948	948	offending party by certified mail at the address stated within the dealer agreement
949	949	between the parties or, if the address is not contained in the agreement or the address
950	950	is no longer valid, the address on the offending party's license filed with this state.
951	951	In the event of a civil action between 2 dealers, the demand shall be mailed to the
952	952	address on the dealer's license filed with this state.
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978	978	EVM:cjs
979	979	SECTION 25 SENATE BILL 225
980	980	(c) A demand for mediation under this subsection shall contain a brief
981	981	statement of the dispute and the relief sought by the party filing the demand.
982	982	(d) Within 20 days after the date a demand for mediation is served under par.
983	983	(b), the parties shall mutually select an independent mediator and meet with the
984	984	mediator for the purpose of attempting to resolve the dispute. The meeting place
985	985	shall be in this state in a location selected by the mediator. The mediator may extend
986	986	the date of the meeting for good cause shown by either party or upon stipulation of
987	987	both parties.
988	988	(e) The service of a demand for mediation under this subsection stays the time
989	989	for the filing of any complaint, petition, protest, or action under this subchapter until
990	990	representatives of both parties have met with a mutually selected mediator for the
991	991	purpose of attempting to resolve the dispute. If a complaint, petition, protest, or
992	992	action is filed before that meeting, the court shall enter an order suspending the
993	993	proceeding or action until the meeting has occurred and may, upon written
994	994	stipulation of all parties to the proceeding or action that they wish to continue to
995	995	mediate under this subsection, enter an order suspending the proceeding or action
996	996	for as long a period as the court considers appropriate. A suspension order issued
997	997	under this paragraph may be revoked by the court.
998	998	(f) The parties to a mediation under this subsection shall bear their own costs
999	999	for attorney fees and divide equally the cost of the mediator.
1000	1000	(3) In addition to the remedies provided in this section, and notwithstanding
1001	1001	the existence of any additional remedy at law, a dealer or manufacturer may apply
1002	1002	to a circuit court for the grant, upon a hearing and for cause shown, of a temporary
1003	1003	or permanent injunction, or both, restraining any person from acting as a dealer,
1004	1004	manufacturer, or distributor without being properly licensed under this chapter,
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1031	1031	EVM:cjs
1032	1032	SECTION 25
1033	1033	SENATE BILL 225
1034	1034	from violating or continuing to violate any of the provisions of this subchapter, or
1035	1035	from failing or refusing to comply with the requirements of this subchapter. An
1036	1036	injunction under this subsection shall be issued without bond. A single act in
1037	1037	violation of any of the provisions of this subchapter is sufficient to authorize the
1038	1038	issuance of an injunction.
1039	1039	SECTION 26. 218.17 (1) of the statutes is created to read:
1040	1040	218.17 (1) The department may suspend or revoke any dealer, manufacturer,
1041	1041	or distributor license upon a finding that any such party violated any provision of ss.
1042	1042	218.161 to 218.167. The department may impose, levy, and collect by legal process
1043	1043	fines, in an amount not to exceed $1,000 for each violation, against any person or
1044	1044	entity if it finds that such person or entity has violated any provision of ss. 218.161
1045	1045	to 218.167. A person against whom a fine is imposed under this section is entitled
1046	1046	to an administrative hearing or other proceeding authorized under state law to
1047	1047	contest the action or fine levied, or about to be levied, against the person or entity.
1048	1048	SECTION 27. 340.01 (6m) of the statutes is amended to read:
1049	1049	340.01 (6m) “Camping trailer" means a vehicle with a collapsible or folding
1050	1050	structure designed for human habitation and to provide temporary living quarters
1051	1051	for recreation, camping, or travel use and to be towed upon a highway by a motor
1052	1052	vehicle.
1053	1053	SECTION 28. 340.01 (18m) of the statutes is amended to read:
1054	1054	340.01 (18m) “Fifth-wheel recreational vehicle" means a recreational vehicle
1055	1055	that is towed by a vehicle with a flatbed frame so the trailer hitch of the recreational
1056	1056	vehicle is bolted to the flatbed frame of the towing vehicle mounted on wheels that
1057	1057	is designed to provide temporary living quarters for recreational, camping, or travel
1058	1058	use, that is of a size and weight that a special highway movement permit is not
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1084	1084	EVM:cjs
1085	1085	SECTION 28 SENATE BILL 225
1086	1086	required, and that is designed to be towed by a motor vehicle that contains a towing
1087	1087	mechanism that is mounted above or forward of the rear axle of the tow vehicle.
1088	1088	SECTION 29. 340.01 (48r) of the statutes is amended to read:
1089	1089	340.01 (48r) “Recreational vehicle" means a vehicle that is designed to be
1090	1090	towed upon a highway by a motor vehicle, that is equipped and used, or intended to
1091	1091	be used, primarily for temporary or recreational human habitation, that has walls
1092	1092	of rigid construction, and that does not exceed 45 feet in length. “Recreational
1093	1093	vehicle” includes a camping trailer, fifth-wheel recreational vehicle, park model
1094	1094	recreational vehicle, as defined in s. 218.10 (7m), travel trailer, as defined in s. 218.10
1095	1095	(8v), and truck camper, as defined in s. 218.10 (8w).
1096	1096	SECTION 30. 341.25 (1) (i) of the statutes is amended to read:
1097	1097	341.25 (1) (i) For each recreational vehicle, and for each camping trailer, a fee
1098	1098	of $15.
1099	1099	SECTION 31. 348.08 (1) (i) of the statutes is amended to read:
1100	1100	348.08 (1) (i) A 3-vehicle combination consisting of a towing vehicle and, in
1101	1101	order by weight, with the lighter of the towed vehicles as the 3rd vehicle in the
1102	1102	3-vehicle combination unless not structurally possible, a recreational vehicle or
1103	1103	camping trailer as the 2nd vehicle, and a recreational vehicle, camping trailer, or
1104	1104	trailer carrying any vehicle for recreational use or carrying no load as the 3rd vehicle
1105	1105	may, without a permit, be operated on a highway if the overall length of the
1106	1106	combination of vehicles does not exceed 65 feet and, if the total weight, including any
1107	1107	load, of all towed vehicles exceeds 3,000 pounds, one of the towed vehicles is equipped
1108	1108	with brakes. No 3-vehicle combination may operate under this paragraph if
1109	1109	highway or weather conditions include heavy snow, freezing rain, icy roads, high
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1133	1133	24 - 23 -2023 - 2024 Legislature
1134	1134	LRB-2343/1
1135	1135	EVM:cjs
1136	1136	SECTION 31
1137	1137	SENATE BILL 225
1138	1138	winds, limited visibility, or upon a highway that is closed or partially closed by the
1139	1139	department due to highway conditions.
1140	1140	SECTION 32. 348.08 (1) (j) of the statutes is amended to read:
1141	1141	348.08 (1) (j) A 3-vehicle combination not exceeding 70 feet in overall length
1142	1142	may, without a permit, be operated on a highway if the towing vehicle serving as the
1143	1143	power unit is equipped with a 5th wheel and kingpin connection by which the 2nd
1144	1144	vehicle in the 3-vehicle combination is drawn, the 2nd vehicle in the 3-vehicle
1145	1145	combination is a recreational vehicle or camping trailer, including any combination
1146	1146	camping-horse trailer, the 3rd vehicle in the 3-vehicle combination is a recreational
1147	1147	vehicle or camping trailer or a trailer carrying any vehicle for recreational use,
1148	1148	carrying equestrian equipment and equestrian supplies for recreational purposes,
1149	1149	or carrying no load, and, if the total weight, including any load, of all towed vehicles
1150	1150	exceeds 3,000 pounds, one of the towed vehicles is equipped with brakes. No
1151	1151	3-vehicle combination may operate under this paragraph if highway or weather
1152	1152	conditions include heavy snow, freezing rain, icy roads, high winds, limited visibility,
1153	1153	or upon a highway that is closed or partially closed by the department due to highway
1154	1154	conditions.
1155	1155	(END)
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