Amendment ASA1-AB230

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 230

January 10, 2024 - Offered by Representative Krug.

AB230-ASA1,1,9 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), 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 (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 (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, 218.163, 218.164, 218.165, 218.166, 218.167 and 348.07 (2) (L) of the statutes; relating to: recreational vehicle manufacturers, distributors, and dealers and the definition and operation of recreational vehicles.

Analysis by the Legislative Reference Bureau

This substitute amendment makes the following changes to the bill:

1. Requires recreational vehicle (RV) manufacturers and distributors to be licensed by the department of transportation.

2. Removes the administrative fine procedure created in the bill and provides instead that the license suspension and revocation procedures that apply to motor vehicle dealers, manufacturers, and distributors apply to RV dealers, manufacturers, and distributors.

3. Requires recreational vehicle dealers to maintain a bond of not less than $50,000 executed in the name of DOT.

4. Creates a definition of RV “distributor” such that the term means “a resident or nonresident who, in whole or in part, sells or distributes new recreational vehicles to recreational vehicle dealers or who maintains distributor representatives.”

5. Creates a new, and changes an existing, definition of “fifth-wheel recreational vehicle” such that the term means “a recreational vehicle that is mounted on wheels, that is of a size and weight such that a special highway movement permit is not required, and that is designed to be towed by a motor vehicle utilizing a king pin and fifth wheel coupling device mounted above or forward of the rear axle of the tow vehicle.”

6. Creates an exception to length limits for vehicles operated on a highway. Under current law, most vehicles may not be operated on a highway if they exceed 45 feet in length. Under the substitute amendment, towed recreational vehicles may be operated on a highway so long as they do not exceed 46 feet in length.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB230-ASA1,1 Section 1. 218.10 (1b) of the statutes is created to read:

AB230-ASA1,2,5 218.10 (1b) “Area of sales responsibility” means the geographical area agreed to by the dealer and the manufacturer or distributor in a dealer agreement within which the dealer has the exclusive right to display or sell the manufacturer's new recreational vehicles of a particular line-make.

AB230-ASA1,2 Section 2. 218.10 (1c) of the statutes is created to read:

AB230-ASA1,2,9 218.10 (1c) “Camping trailer” means a vehicle with a collapsible or folding structure designed to provide temporary living quarters for recreational, camping, or travel use and to be towed upon a highway by a motor vehicle.

AB230-ASA1,3 Section 3. 218.10 (1d) of the statutes is created to read:

AB230-ASA1,2,13 218.10 (1d) “Component manufacturer” means a person, firm, corporation, or business entity that engages in the manufacturing of components, accessories, or parts used in manufacturing recreational vehicles.

AB230-ASA1,4 Section 4. 218.10 (1i) of the statutes is created to read:

AB230-ASA1,3,5 218.10 (1i) “Dealer agreement” means a written agreement or contract entered into by a dealer and a manufacturer or distributor that fixes the rights and responsibilities of the parties and pursuant to which the dealer sells new recreational vehicles.

AB230-ASA1,5 Section 5. 218.10 (1n) of the statutes is created to read:

AB230-ASA1,3,9 218.10 (1n) “Distributor” means a resident or nonresident who, in whole or in part, sells or distributes new recreational vehicles to recreational vehicle dealers or who maintains distributor representatives.

AB230-ASA1,6 Section 6. 218.10 (1o) of the statutes is created to read:

AB230-ASA1,3,13 218.10 (1o) “Factory campaign” means an effort on the part of a warrantor to contact recreational vehicle owners or dealers in order to address a part or equipment issue.

AB230-ASA1,7 Section 7. 218.10 (1p) of the statutes is created to read:

AB230-ASA1,3,16 218.10 (1p) “Family member” means an individual's spouse or an individual's child, grandchild, parent, sibling, niece, or nephew or the spouse of any of these.

AB230-ASA1,8 Section 8. 218.10 (1q) of the statutes is created to read:

AB230-ASA1,3,22 218.10 (1q) “Fifth-wheel recreational vehicle" means a recreational vehicle that is mounted on wheels, that is of a size and weight such that a special highway movement permit is not required, and that is designed to be towed by a motor vehicle utilizing a king pin and fifth wheel coupling device mounted above or forward of the rear axle of the tow vehicle.

AB230-ASA1,9 Section 9. 218.10 (1t) of the statutes is created to read:

AB230-ASA1,4,3 218.10 (1t) “Line-make” means a specific series of recreational vehicle products, the sale of which may be authorized by a dealer agreement, that satisfies all of the following:

AB230-ASA1,4,5 (a) Is targeted to a particular market segment, as determined by the decor, features, equipment, size, weight, and price range.

AB230-ASA1,4,8 (b) Has lengths and interior floor plans that distinguish the series of recreational vehicle products from other series with substantially the same decor, features, equipment, weight, and price.

AB230-ASA1,4,11 (c) Belongs to a single, distinct classification of recreational vehicle product type having a substantial degree of commonality in the construction of the chassis, frame, and body.

AB230-ASA1,10 Section 10. 218.10 (2) of the statutes is created to read:

AB230-ASA1,4,14 218.10 (2) “Model” is a series of recreational vehicle products identified by a common series trade name or trademark that is a subset of a line-make.

AB230-ASA1,11 Section 11. 218.10 (7m) of the statutes is created to read:

AB230-ASA1,4,17 218.10 (7m) “Park model recreational vehicle” means a recreational vehicle that is all of the following:

AB230-ASA1,4,19 (a) Designed and marketed as temporary living quarters for recreational, camping, travel, or seasonal use.

AB230-ASA1,4,20 (b) Not permanently affixed to real property for use as a permanent dwelling.

AB230-ASA1,4,22 (c) Built on a single chassis mounted on wheels with a gross trailer area not exceeding 400 square feet in the setup mode.

AB230-ASA1,4,24 (d) Certified by the manufacturer as complying with the ANSI A119.5 Park Model Recreational Vehicle Standard.

AB230-ASA1,12 Section 12. 218.10 (7w) of the statutes is created to read:

AB230-ASA1,5,2 218.10 (7w) “Proprietary part” means any part manufactured by or for and sold exclusively by the manufacturer.

AB230-ASA1,13 Section 13. 218.10 (8m) of the statutes is amended to read:

AB230-ASA1,5,9 218.10 (8m) “Recreational vehicle" has the meaning given in s. 340.01 (48r) means a vehicle that is designed to be towed upon a highway by a motor vehicle, that is equipped and used, or intended to be used, primarily for temporary or recreational human habitation, and that does not exceed 46 feet in length. “Recreational vehicle” includes a camping trailer, fifth-wheel recreational vehicle, park model recreational vehicle, and travel trailer.

AB230-ASA1,14 Section 14. 218.10 (8u) of the statutes is created to read:

AB230-ASA1,5,12 218.10 (8u) “Transient customer” means a customer who is temporarily traveling through a dealer's area of sales responsibility.

AB230-ASA1,15 Section 15. 218.10 (8v) of the statutes is created to read:

AB230-ASA1,5,17 218.10 (8v) “Travel trailer” means a vehicle that is mounted on wheels, that is designed to provide temporary living quarters for recreational, camping, or travel use, and that is of a size or weight that a special highway movement permit is not required when towed by a motor vehicle.

AB230-ASA1,16 Section 16. 218.10 (10) of the statutes is created to read:

AB230-ASA1,5,21 218.10 (10) “Warrantor” means a person, firm, corporation, or business entity that gives a warranty in connection with a new recreational vehicle or parts, accessories, or components of a new recreational vehicle.

AB230-ASA1,17 Section 17. 218.10 (11) of the statutes is created to read:

AB230-ASA1,5,25 218.10 (11) “Warranty” does not include service contracts, mechanical or other insurance, or extended warranties sold for separate consideration by a dealer or other person not controlled by a manufacturer.

AB230-ASA1,18 Section 18. 218.11 (title) of the statutes is amended to read:

AB230-ASA1,6,3 218.11 (title) Recreational vehicle dealers, manufacturers, and distributors regulated.

AB230-ASA1,19 Section 19. 218.11 (2) (e) of the statutes is created to read:

AB230-ASA1,6,10 218.11 (2) (e) A recreational vehicle dealer or an applicant for a recreational vehicle dealer license shall provide and maintain in force a bond or irrevocable letter of credit of not less than $50,000. The bond or letter of credit shall be executed in the name of the department of transportation for the benefit of any person who sustains a loss because of an act of a recreational vehicle dealer that constitutes grounds for the suspension or revocation of a license under sub. (6).

AB230-ASA1,20 Section 20. 218.11 (4) of the statutes is created to read:

AB230-ASA1,6,13 218.11 (4) (a) No manufacturer or distributor may engage in business as a manufacturer or distributor in this state without a license.

AB230-ASA1,6,20 (b) No manufacturers' or distributors' recreational vehicles may be sold in this state unless either the manufacturer on direct dealerships of domestic vehicles or the distributor on indirect dealerships of either domestic or foreign vehicles are licensed under par. (a). The obtaining of a license under par. (a) shall conclusively establish that a manufacturer or distributor is doing business in this state and shall subject the licensee to all provisions of the Wisconsin statutes regulating manufacturers and distributors.

AB230-ASA1,21 Section 21. 218.11 (6) (o) of the statutes is created to read:

AB230-ASA1,6,23 218.11 (6) (o) Being a dealer, manufacturer, or distributor that violates any provision of s. 218.161 to 218.167.

AB230-ASA1,22 Section 22. 218.11 (7) (b) of the statutes is repealed and recreated to read:

AB230-ASA1,7,6 218.11 (7) (b) The provisions of s. 218.0116 (4) relating to the suspension and revocation of a license applies to the suspension and revocation of the license of a recreational vehicle dealer, manufacturer, or distributor, except that the provisions s. 218.0116 (4) do not apply to the suspension or revocation of a license under sub. (6m) and that no suspension or revocation under this paragraph may be predicated on conduct related to mileage disclosure.

AB230-ASA1,23 Section 23. 218.15 of the statutes is amended to read:

AB230-ASA1,7,11 218.15 Sale or lease of used recreational vehicles. In the sale or lease of any used recreational vehicle, the sales invoice or lease agreement shall contain the point of manufacture of the used recreational vehicle, and the name of the manufacturer and the name and address of the previous owner.

AB230-ASA1,24 Section 24. 218.161 of the statutes is created to read:

AB230-ASA1,7,16 218.161 Dealer agreement requirement. (1) A manufacturer or distributor may not sell a new recreational vehicle in this state to or through a dealer without having first entered into a written dealer agreement with a dealer that has been signed by both parties.

AB230-ASA1,7,21 (2) The manufacturer shall designate the area of sales responsibility exclusively assigned to a dealer in the dealer agreement and may not change the area of sales responsibility or contract with another dealer for sale of the same model or line-make, as specified in the agreement, in the designated area of sales responsibility during the duration of the agreement.

AB230-ASA1,7,25 (3) The terms of the dealer agreement, including the area of sales responsibility, may not be reviewed or changed during the duration of the dealer agreement without the written mutual consent of the parties. The duration of the dealer agreement shall be stated in the dealer agreement.

AB230-ASA1,8,4 (4) A dealer may not sell a new recreational vehicle in this state without having first entered into a dealer agreement with a manufacturer or distributor and may not sell outside the area of sales responsibility designated in the agreement under sub. (2).

AB230-ASA1,8,7 (5) A manufacturer may not unilaterally issue a policy or procedure that violates or substantially alters a provision of the dealer agreement during the duration of the agreement.

AB230-ASA1,8,10 (6) A manufacturer shall distribute new recreational vehicles to its dealers in a fair and equitable manner. If requested, a manufacturer shall provide information on its manner of distribution.

AB230-ASA1,8,12 (7) A manufacturer shall provide its dealer with adequate technical data to perform proper service and repairs.

AB230-ASA1,25 Section 25. 218.162 of the statutes is created to read:

AB230-ASA1,8,19 218.162 Termination of dealer agreement. (1) (a) A manufacturer or distributor, directly or through any officer, agent, or employee, may terminate, cancel, or fail to renew a model, line-make, or entire dealer agreement only with good cause, and, upon renewal, may not require additional inventory stocking requirements or increased retail sales targets in excess of the market growth in the dealer's area of sales responsibility.

AB230-ASA1,8,23 (b) A manufacturer or distributor has the burden of showing good cause for terminating, canceling, or failing to renew a model, line-make, or dealer agreement with a dealer. For purposes of determining whether there is good cause for the proposed action, any of the following factors may be considered:

AB230-ASA1,8,25 1. The extent of the affected dealer's penetration in the relevant market area for the relevant model or line-make.

AB230-ASA1,9,1 2. The nature and extent of the dealer's investment in its business.

AB230-ASA1,9,3 3. The adequacy of the dealer's service facilities, equipment, parts, supplies, and personnel.

AB230-ASA1,9,4 4. The effect of the proposed action on the community.

AB230-ASA1,9,6 5. The extent and quality of the dealer's service under recreational vehicle warranties.

AB230-ASA1,9,9 6. The failure to follow agreed-upon, reasonable procedures or standards related to the overall operation of the dealership consistent with the law and the dealer agreement.

AB230-ASA1,9,10 7. The dealer's performance under the terms of its dealer agreement.

AB230-ASA1,9,13 (c) 1. Except as provided in this paragraph, a manufacturer or distributor shall provide a dealer with at least 120 days' prior written notice of termination, cancellation, or nonrenewal of a model, line-make, or entire dealer agreement.

AB230-ASA1,9,23 2. The notice under subd. 1. shall state all reasons for the proposed termination, cancellation, or nonrenewal and shall state that if, within 30 days following receipt of the notice, the dealer provides to the manufacturer or distributor a written notice of intent to cure all claimed deficiencies, the dealer will then have 120 days following receipt of the notice to rectify the deficiencies. If the deficiencies are rectified within 120 days, the manufacturer's or distributor's notice is voided. If the dealer fails to provide the notice of intent to cure the deficiencies in the prescribed period, the termination, cancellation, or nonrenewal takes effect 30 days after the dealer's receipt of the notice unless the dealer has new and untitled inventory on hand that may be disposed of as provided under sub. (3).