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SB225-SSA1,13 3Section 13. 218.10 (8m) of the statutes is amended to read:
SB225-SSA1,5,94 218.10 (8m) “Recreational vehicle" has the meaning given in s. 340.01 (48r)
5means a vehicle that is designed to be towed upon a highway by a motor vehicle, that
6is equipped and used, or intended to be used, primarily for temporary or recreational
7human habitation, and that does not exceed 46 feet in length. “Recreational vehicle”
8includes a camping trailer, fifth-wheel recreational vehicle, park model recreational
9vehicle, and travel trailer
.
SB225-SSA1,14 10Section 14. 218.10 (8u) of the statutes is created to read:
SB225-SSA1,5,1211 218.10 (8u) “Transient customer” means a customer who is temporarily
12traveling through a dealer's area of sales responsibility.
SB225-SSA1,15 13Section 15. 218.10 (8v) of the statutes is created to read:
SB225-SSA1,5,1714 218.10 (8v) “Travel trailer” means a vehicle that is mounted on wheels, that
15is designed to provide temporary living quarters for recreational, camping, or travel
16use, and that is of a size or weight that a special highway movement permit is not
17required when towed by a motor vehicle.
SB225-SSA1,16 18Section 16. 218.10 (10) of the statutes is created to read:
SB225-SSA1,5,2119 218.10 (10) “Warrantor” means a person, firm, corporation, or business entity
20that gives a warranty in connection with a new recreational vehicle or parts,
21accessories, or components of a new recreational vehicle.
SB225-SSA1,17 22Section 17. 218.10 (11) of the statutes is created to read:
SB225-SSA1,5,2523 218.10 (11) “Warranty” does not include service contracts, mechanical or other
24insurance, or extended warranties sold for separate consideration by a dealer or
25other person not controlled by a manufacturer.
SB225-SSA1,18
1Section 18. 218.11 (title) of the statutes is amended to read:
SB225-SSA1,6,3 2218.11 (title) Recreational vehicle dealers, manufacturers, and
3distributors
regulated.
SB225-SSA1,19 4Section 19. 218.11 (2) (e) of the statutes is created to read:
SB225-SSA1,6,105 218.11 (2) (e) A recreational vehicle dealer or an applicant for a recreational
6vehicle dealer license shall provide and maintain in force a bond or irrevocable letter
7of credit of not less than $50,000. The bond or letter of credit shall be executed in the
8name of the department of transportation for the benefit of any person who sustains
9a loss because of an act of a recreational vehicle dealer that constitutes grounds for
10the suspension or revocation of a license under sub. (6).
SB225-SSA1,20 11Section 20. 218.11 (4) of the statutes is created to read:
SB225-SSA1,6,1312 218.11 (4) (a) No manufacturer or distributor may engage in business as a
13manufacturer or distributor in this state without a license.
SB225-SSA1,6,2014 (b) No manufacturers' or distributors' recreational vehicles may be sold in this
15state unless either the manufacturer on direct dealerships of domestic vehicles or the
16distributor on indirect dealerships of either domestic or foreign vehicles are licensed
17under par. (a). The obtaining of a license under par. (a) shall conclusively establish
18that a manufacturer or distributor is doing business in this state and shall subject
19the licensee to all provisions of the Wisconsin statutes regulating manufacturers and
20distributors.
SB225-SSA1,21 21Section 21. 218.11 (6) (o) of the statutes is created to read:
SB225-SSA1,6,2322 218.11 (6) (o) Being a dealer, manufacturer, or distributor that violates any
23provision of s. 218.161 to 218.167.
SB225-SSA1,22 24Section 22. 218.11 (7) (b) of the statutes is repealed and recreated to read:
SB225-SSA1,7,6
1218.11 (7) (b) The provisions of s. 218.0116 (4) relating to the suspension and
2revocation of a license applies to the suspension and revocation of the license of a
3recreational vehicle dealer, manufacturer, or distributor, except that the provisions
4s. 218.0116 (4) do not apply to the suspension or revocation of a license under sub.
5(6m) and that no suspension or revocation under this paragraph may be predicated
6on conduct related to mileage disclosure.
SB225-SSA1,23 7Section 23. 218.15 of the statutes is amended to read:
SB225-SSA1,7,11 8218.15 Sale or lease of used recreational vehicles. In the sale or lease of
9any used recreational vehicle, the sales invoice or lease agreement shall contain the
10point of manufacture of the used recreational vehicle, and the name of the
11manufacturer and the name and address of the previous owner.
SB225-SSA1,24 12Section 24. 218.161 of the statutes is created to read:
SB225-SSA1,7,16 13218.161 Dealer agreement requirement. (1) A manufacturer or
14distributor may not sell a new recreational vehicle in this state to or through a dealer
15without having first entered into a written dealer agreement with a dealer that has
16been signed by both parties.
SB225-SSA1,7,21 17(2) The manufacturer shall designate the area of sales responsibility
18exclusively assigned to a dealer in the dealer agreement and may not change the area
19of sales responsibility or contract with another dealer for sale of the same model or
20line-make, as specified in the agreement, in the designated area of sales
21responsibility during the duration of the agreement.
SB225-SSA1,7,25 22(3) The terms of the dealer agreement, including the area of sales
23responsibility, may not be reviewed or changed during the duration of the dealer
24agreement without the written mutual consent of the parties. The duration of the
25dealer agreement shall be stated in the dealer agreement.
SB225-SSA1,8,4
1(4) A dealer may not sell a new recreational vehicle in this state without having
2first entered into a dealer agreement with a manufacturer or distributor and may not
3sell outside the area of sales responsibility designated in the agreement under sub.
4(2).
SB225-SSA1,8,7 5(5) A manufacturer may not unilaterally issue a policy or procedure that
6violates or substantially alters a provision of the dealer agreement during the
7duration of the agreement.
SB225-SSA1,8,10 8(6) A manufacturer shall distribute new recreational vehicles to its dealers in
9a fair and equitable manner. If requested, a manufacturer shall provide information
10on its manner of distribution.
SB225-SSA1,8,12 11(7) A manufacturer shall provide its dealer with adequate technical data to
12perform proper service and repairs.
SB225-SSA1,25 13Section 25. 218.162 of the statutes is created to read:
SB225-SSA1,8,19 14218.162 Termination of dealer agreement. (1) (a) A manufacturer or
15distributor, directly or through any officer, agent, or employee, may terminate,
16cancel, or fail to renew a model, line-make, or entire dealer agreement only with good
17cause, and, upon renewal, may not require additional inventory stocking
18requirements or increased retail sales targets in excess of the market growth in the
19dealer's area of sales responsibility.
SB225-SSA1,8,2320 (b) A manufacturer or distributor has the burden of showing good cause for
21terminating, canceling, or failing to renew a model, line-make, or dealer agreement
22with a dealer. For purposes of determining whether there is good cause for the
23proposed action, any of the following factors may be considered:
SB225-SSA1,8,2524 1. The extent of the affected dealer's penetration in the relevant market area
25for the relevant model or line-make.
SB225-SSA1,9,1
12. The nature and extent of the dealer's investment in its business.
SB225-SSA1,9,32 3. The adequacy of the dealer's service facilities, equipment, parts, supplies,
3and personnel.
SB225-SSA1,9,44 4. The effect of the proposed action on the community.
SB225-SSA1,9,65 5. The extent and quality of the dealer's service under recreational vehicle
6warranties.
SB225-SSA1,9,97 6. The failure to follow agreed-upon, reasonable procedures or standards
8related to the overall operation of the dealership consistent with the law and the
9dealer agreement.
SB225-SSA1,9,1010 7. The dealer's performance under the terms of its dealer agreement.
SB225-SSA1,9,1311 (c) 1. Except as provided in this paragraph, a manufacturer or distributor shall
12provide a dealer with at least 120 days' prior written notice of termination,
13cancellation, or nonrenewal of a model, line-make, or entire dealer agreement.
SB225-SSA1,9,2314 2. The notice under subd. 1. shall state all reasons for the proposed termination,
15cancellation, or nonrenewal and shall state that if, within 30 days following receipt
16of the notice, the dealer provides to the manufacturer or distributor a written notice
17of intent to cure all claimed deficiencies, the dealer will then have 120 days following
18receipt of the notice to rectify the deficiencies. If the deficiencies are rectified within
19120 days, the manufacturer's or distributor's notice is voided. If the dealer fails to
20provide the notice of intent to cure the deficiencies in the prescribed period, the
21termination, cancellation, or nonrenewal takes effect 30 days after the dealer's
22receipt of the notice unless the dealer has new and untitled inventory on hand that
23may be disposed of as provided under sub. (3).
SB225-SSA1,9,2524 3. The notice period under subd. 1. may be reduced to 30 days if the grounds
25for termination, cancellation, or nonrenewal are due to any of the following:
SB225-SSA1,10,1
1a. A dealer or one of its owners being convicted of a felony.
SB225-SSA1,10,42 b. The abandonment or closing of the business operations of the dealer for 10
3consecutive business days unless the closing is due to an act of God, strike, labor
4difficulty, or other cause over which the dealer has no control.
SB225-SSA1,10,65 c. A significant misrepresentation by the dealer materially affecting the
6business relationship.
SB225-SSA1,10,87 d. A suspension of, revocation of, or refusal to renew the dealer's license by the
8department.
SB225-SSA1,10,119 4. The notice provisions of this paragraph do not apply if the reason for
10termination, cancellation, or nonrenewal is insolvency, the occurrence of an
11assignment for the benefit of creditors, or bankruptcy.
SB225-SSA1,10,17 12(2) A dealer may terminate, cancel, or fail to renew a model, line-make, or
13entire dealer agreement with a manufacturer or distributor with or without good
14cause at any time by giving 30 days' written notice to the manufacturer. If the
15termination, cancellation, or nonrenewal is for good cause, the dealer has the burden
16of showing good cause. Any of the following items, among others, may be deemed
17good cause for the proposed action by a dealer:
SB225-SSA1,10,1818 (a) A manufacturer being convicted of a felony.
SB225-SSA1,10,2119 (b) The business operations of the manufacturer have been abandoned or closed
20for 10 consecutive business days, unless the closing is due to an act of God, strike,
21labor difficulty, or other cause over which the manufacturer has no control.
SB225-SSA1,10,2322 (c) A significant misrepresentation by the manufacturer materially affecting
23the business relationship.
SB225-SSA1,10,2524 (d) A material violation of this subchapter that is not cured within 30 days after
25written notice by the dealer.
SB225-SSA1,11,2
1(e) A declaration by the manufacturer of insolvency, the occurrence of an
2assignment for the benefit of creditors, or bankruptcy.
SB225-SSA1,11,43 (f) A manufacturer's material violation of the dealer agreement that is not
4cured within 120 days after written notice by the dealer.
SB225-SSA1,11,55 (g) Manufacturer coercion of the dealer under s. 218.166.
SB225-SSA1,11,76 (h) Manufacturer violation of area of sales responsibility protections or
7allowing other dealers to violate these protections.
SB225-SSA1,11,11 8(3) If the dealer agreement is terminated, canceled, or not renewed by the
9dealer for good cause, the manufacturer shall, at the election of the dealer and within
1045 days after termination, cancellation, or nonrenewal, repurchase all of the
11following:
SB225-SSA1,11,2312 (a) All new, untitled recreational vehicles that were acquired from the
13manufacturer or distributor within 18 months before the date of the notice of
14termination, cancellation, or nonrenewal that have not been used, except for
15demonstration purposes, and that have not been altered or damaged, at 100 percent
16of the net invoice cost, including transportation, less applicable rebates and
17discounts to the dealer. If any of the recreational vehicles repurchased is damaged,
18the amount due to the dealer shall be reduced by the cost to repair the damaged
19recreational vehicle. Damage prior to delivery to the dealer will not disqualify
20repurchase under this subsection. Any repurchased recreational vehicle must be
21paid for in full before the recreational vehicle is removed from the dealer's premises.
22Upon payment under this paragraph, recreational vehicles must be immediately
23surrendered to the manufacturer.
SB225-SSA1,12,324 (b) All undamaged accessories or proprietary parts sold to the dealer for resale
25within the 12 months prior to termination, cancellation, or nonrenewal, if

1accompanied by the original invoice, at 105 percent of the original net price paid to
2the manufacturer or distributor to compensate the dealer for handling, packing, and
3shipping the parts.
SB225-SSA1,12,104 (c) Any properly functioning diagnostic equipment, special tools, current
5signage, or other equipment and machinery at 100 percent of the dealer's net cost
6plus freight, destination, delivery, and distribution charges and sales taxes, if any,
7if the equipment, tools, signage, or machinery was purchased by the dealer within
85 years before termination, cancellation, or nonrenewal and upon the
9manufacturer's or distributor's request and can no longer be used in the normal
10course of the dealer's ongoing business.
SB225-SSA1,12,14 11(4) If a dealer agreement is terminated, canceled, or not renewed by the
12manufacturer or distributor without good cause in violation of sub. (1), the
13manufacturer or distributor shall repurchase dealer recreational vehicles,
14accessories, and other equipment in the manner provided in sub. (3).
SB225-SSA1,12,17 15(5) (a) A dealer is not prohibited from selling any remaining in-stock inventory
16of a particular model or line-make after a dealer agreement has been terminated,
17cancelled, or not renewed by the manufacturer.
SB225-SSA1,12,2218 (b) If recreational vehicles of a model or line-make subject to a terminated
19agreement are not repurchased or required to be repurchased by the manufacturer
20or distributor, the dealer may continue to sell recreational vehicles that are subject
21to the terminated dealer agreement and are currently in stock until those
22recreational vehicles are no longer in the dealer's inventory.
SB225-SSA1,13,2 23(6) When taking on an additional line-make, a dealer shall notify in writing
24any manufacturer with whom the dealer has a dealer agreement of the same

1line-make at least 30 days prior to entering into a dealer agreement with the
2manufacturer of the additional line-make.
SB225-SSA1,26 3Section 26. 218.163 of the statutes is created to read:
SB225-SSA1,13,11 4218.163 Transfer of ownership. (1) If a dealer desires to make a change in
5ownership by the sale of business assets, stock transfer, or otherwise, the dealer shall
6give the manufacturer or distributor written notice at least 10 business days before
7the closing, along with all supporting documentation as may be reasonably required
8by the manufacturer or distributor to determine if an objection to the sale may be
9made. In the absence of a breach by the selling dealer of its dealer agreement or this
10subchapter, the manufacturer or distributor may not object to the proposed change
11in ownership unless any of the following applies to the prospective transferee:
SB225-SSA1,13,1312 (a) The transferee has previously been terminated for cause by the
13manufacturer.
SB225-SSA1,13,1514 (b) The transferee has been convicted of a felony or any crime of fraud, deceit,
15or moral turpitude.
SB225-SSA1,13,1616 (c) The transferee lacks any license required by law.
SB225-SSA1,13,1817 (d) The transferee does not have an active line of credit sufficient to purchase
18a manufacturer's product.
SB225-SSA1,13,2119 (e) The transferee has undergone in the last 10 years bankruptcy, insolvency,
20a general assignment for the benefit of creditors, or the appointment of a receiver,
21trustee, or conservator to take possession of the transferee's business or property.
SB225-SSA1,14,2 22(2) If a manufacturer or distributor objects to a proposed change in ownership,
23the manufacturer or distributor shall give written notice of its reasons to the dealer
24within 7 business days after receipt of the dealer's notification and complete
25documentation. The manufacturer or distributor has the burden of proof with regard

1to its objection. If the manufacturer or distributor does not give timely notice of its
2objection, the change, sale, or transfer shall be approved.
SB225-SSA1,14,10 3(3) (a) A manufacturer or distributor shall provide a dealer an opportunity to
4designate, in writing, a family member as a successor to the dealership in the event
5of the death, incapacity, or retirement of the dealer. A manufacturer or distributor
6may not prevent or refuse to honor the succession unless the manufacturer or
7distributor has provided to the dealer written notice of its objections within 10
8business days after receipt of the dealer's modification of the dealer's succession
9plan. In the absence of a breach of the dealer agreement, the manufacturer may
10object to the succession only for any of the following reasons:
SB225-SSA1,14,1211 1. Conviction of the successor of a felony or any crime of fraud, deceit, or moral
12turpitude.
SB225-SSA1,14,1313 2. Bankruptcy or insolvency of the successor during the past 10 years.
SB225-SSA1,14,1514 3. Prior termination by the manufacturer of the successor for breach of a dealer
15agreement.
SB225-SSA1,14,1716 4. The lack of an active line of credit for the successor sufficient to purchase the
17manufacturer's product.
SB225-SSA1,14,1818 5. The lack of any license for the successor required by law.
SB225-SSA1,14,2219 (b) The manufacturer or distributor has the burden of proof regarding its
20objection. A family member may not succeed to a dealership if the succession
21involves, without the manufacturer's or distributor's consent, a relocation of the
22business or an alteration of the terms and conditions of the dealer agreement.
SB225-SSA1,27 23Section 27. 218.164 of the statutes is created to read:
SB225-SSA1,14,25 24218.164 Warranty obligation. (1) Each warrantor shall do all of the
25following:
SB225-SSA1,15,3
1(a) Specify, in writing, to each of the warrantor's dealers, the dealer's
2obligations, if any, for preparation, delivery, and warranty service on the warrantor's
3products.
SB225-SSA1,15,54 (b) Compensate the dealer for warranty service performed by the dealer that
5is covered by the warrantor's own warranty.
SB225-SSA1,15,136 (c) Provide the dealer with the schedule of compensation to be paid and the time
7allowances for the performance of any work and service. The schedule of
8compensation shall include reasonable compensation for diagnostic work as well as
9warranty labor. If the schedule of compensation required by this paragraph does not
10include a particular repair, the warrantor shall reimburse the dealer for warranty
11service for the actual time expended unless the warrantor demonstrates that the
12actual time was not reasonable. If the warrantor demonstrates that the actual time
13was not reasonable, the dealer shall be paid a reasonable sum.
SB225-SSA1,15,18 14(2) Time allowances for the diagnosis and performance of warranty labor shall
15be reasonable for the work to be performed. The compensation of a dealer for
16warranty labor may not be less than the lowest retail labor rate actually charged by
17the dealer in the ordinary course of business for like nonwarranty labor as long as
18the rate is reasonable.
SB225-SSA1,16,2 19(3) The warrantor shall reimburse the dealer for any warranty part at actual
20wholesale cost plus a minimum 30 percent handling charge and the cost, if any, of
21freight to return such part to the warrantor. If a part is sent to the dealer at no cost,
22the dealer is entitled to payment of 30 percent of the wholesale cost of the part from
23warrantor as a handling charge. The maximum handling charge for a part shall not
24exceed $300. If the warrantor requires the dealer to return a warranty part,

1accessory, or complete component, the warrantor shall reimburse the dealer the cost
2of freight to return the part, accessory, or component.
SB225-SSA1,16,7 3(4) Warranty audits of dealer records may be conducted by the warrantor on
4a reasonable basis, and dealer claims for warranty compensation may not be denied
5except for cause, including performance of nonwarranty repairs, material
6noncompliance with the warrantor's published policies and procedures, lack of
7material documentation, fraud, or misrepresentation.
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