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LRBs0099/1
EVM:cdc
2019 - 2020 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO SENATE BILL 304
October 7, 2019 - Offered by Senators Bernier and Fitzgerald.
SB304-SSA1,1,4 1An Act to amend 218.0125 (3m) (a), 218.0125 (3m) (b), 218.0125 (3m) (c) 1. and
2218.0125 (5); and to create 218.0125 (8) of the statutes; relating to:
3compensation of motor vehicle dealers by manufacturers, importers, or
4distributors for certain service work.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB304-SSA1,1 5Section 1. 218.0125 (3m) (a) of the statutes is amended to read:
SB304-SSA1,2,36 218.0125 (3m) (a) Subject to sub. (4m), a manufacturer, importer, or
7distributor, except a manufacturer, importer, or distributor of motorcycles with
8respect to a dealer of the manufacturer's, importer's, or distributor's motorcycles,
9shall reasonably compensate a dealer who performs work to rectify the product or
10warranty
defects of under a warranty or recall issued by the manufacturer, importer,
11or distributor or to satisfy delivery and preparation obligations of the manufacturer,

1importer, or distributor
or who performs any other repair work required, requested,
2or approved by the manufacturer, importer, or distributor or for which the
3manufacturer, importer, or distributor has agreed to pay.
SB304-SSA1,2 4Section 2. 218.0125 (3m) (b) of the statutes is amended to read:
SB304-SSA1,2,165 218.0125 (3m) (b) Reasonable compensation under par. (a) for labor is equal
6to the dealer's effective nonwarranty labor rate multiplied by the number of hours
7allowed for the repair under the manufacturer's, importer's, or distributor's time
8allowances used in compensating the dealer for warranty work. A dealer may
9request that the time allowance for work on a specific vehicle include an additional
10amount of time for diagnostic or repair work performed on the vehicle. The request
11shall be made in the manner and with all the documentation and information
12reasonably required by the manufacturer, importer, or distributor. A request for an
13additional amount of time allowance under this paragraph may not be unreasonably
14denied by the manufacturer, importer, or distributor.
Reasonable compensation
15under par. (a) for parts is equal to the dealer's cost for the parts multiplied by the
16dealer's average percentage markup over dealer cost for parts.
SB304-SSA1,3 17Section 3. 218.0125 (3m) (c) 1. of the statutes is amended to read:
SB304-SSA1,2,2418 218.0125 (3m) (c) 1. The effective nonwarranty labor rate is determined, using
19the submitted substantiating orders under sub. (4m) (a) 2., by dividing the total
20customer labor charges for qualifying nonwarranty repairs in the repair orders by
21the total number of hours that would be allowed for the repairs if the repairs were
22made under the manufacturer's, importer's, or distributor's time allowances used in
23compensating the dealer for warranty work
generated the total customer labor
24charges as indicated in the repair orders
.
SB304-SSA1,4 25Section 4. 218.0125 (5) of the statutes is amended to read:
SB304-SSA1,3,13
1218.0125 (5) A manufacturer, importer, or distributor who fails to compensate
2a dealer for parts or labor at an amount not less than the amount the dealer charges
3its other retail service customers for parts or labor used to perform similar work shall
4not be found to have violated this section if the manufacturer, importer, or distributor
5shows that, for a manufacturer, importer, or distributor of motorcycles with respect
6to a dealer of the manufacturer's, importer's, or distributor's motorcycles, the
7amount is not reasonably competitive to the amounts charged to retail service
8customers by other similarly situated franchised motor vehicle dealers in this state
9for the same parts or labor when used by those dealers to perform similar work or,
10for any other manufacturer, importer, or distributor, the amount is not reasonably
11competitive to the amounts charged to retail service customers by other similarly
12situated franchised motor vehicle dealers in this state in performing qualifying
13nonwarranty repairs.
SB304-SSA1,5 14Section 5. 218.0125 (8) of the statutes is created to read:
SB304-SSA1,3,1915 218.0125 (8) A manufacturer, importer, or distributor may not assess any
16penalty, fee, or surcharge against an individual dealer for the purpose of recovering
17costs associated with compensating the dealer under this section. This subsection
18does not prohibit a manufacturer, importer, or distributor from increasing the price
19charged for goods or services in the ordinary course of business.
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