SB225,,83 (3) If the dealer agreement is terminated, canceled, or not renewed by the dealer for good cause, the manufacturer shall, at the election of the dealer and within 45 days after termination, cancellation, or nonrenewal, repurchase all of the following:

SB225,,84 (a) All new, untitled recreational vehicles that were acquired from the manufacturer or distributor within 18 months before the date of the notice of termination, cancellation, or nonrenewal that have not been used, except for demonstration purposes, and that have not been altered or damaged, at 100 percent of the net invoice cost, including transportation, less applicable rebates and discounts to the dealer. If any of the recreational vehicles repurchased is damaged, the amount due to the dealer shall be reduced by the cost to repair the damaged recreational vehicle. Damage prior to delivery to the dealer will not disqualify repurchase under this subsection. Any repurchased recreational vehicle must be paid for in full before the recreational vehicle is removed from the dealer’s premises. Upon payment under this paragraph, recreational vehicles must be immediately surrendered to the manufacturer.

SB225,,85 (b) All undamaged accessories or proprietary parts sold to the dealer for resale within the 12 months prior to termination, cancellation, or nonrenewal, if accompanied by the original invoice, at 105 percent of the original net price paid to the manufacturer or distributor to compensate the dealer for handling, packing, and shipping the parts.

SB225,,86 (c) Any properly functioning diagnostic equipment, special tools, current signage, or other equipment and machinery at 100 percent of the dealer’s net cost plus freight, destination, delivery, and distribution charges and sales taxes, if any, if the equipment, tools, signage, or machinery was purchased by the dealer within 5 years before termination, cancellation, or nonrenewal and upon the manufacturer’s or distributor’s request and can no longer be used in the normal course of the dealer’s ongoing business.

SB225,,87 (4) If a dealer agreement is terminated, canceled, or not renewed by the manufacturer or distributor without good cause in violation of sub. (1), the manufacturer or distributor shall repurchase dealer recreational vehicles, accessories, and other equipment in the manner provided in sub. (3).

SB225,,88 (5) (a) A dealer is not prohibited from selling any remaining in-stock inventory of a particular model or line-make after a dealer agreement has been terminated, cancelled, or not renewed by the manufacturer.

SB225,,89 (b) If recreational vehicles of a model or line-make subject to a terminated agreement are not repurchased or required to be repurchased by the manufacturer or distributor, the dealer may continue to sell recreational vehicles that are subject to the terminated dealer agreement and are currently in stock until those recreational vehicles are no longer in the dealer’s inventory.

SB225,,90 (6) When taking on an additional line-make, a dealer shall notify in writing any manufacturer with whom the dealer has a dealer agreement of the same line-make at least 30 days prior to entering into a dealer agreement with the manufacturer of the additional line-make.

SB225,21 Section 21. 218.163 of the statutes is created to read:

SB225,,92 218.163 Transfer of ownership. (1) If a dealer desires to make a change in ownership by the sale of business assets, stock transfer, or otherwise, the dealer shall give the manufacturer or distributor written notice at least 10 business days before the closing, along with all supporting documentation as may be reasonably required by the manufacturer or distributor to determine if an objection to the sale may be made. In the absence of a breach by the selling dealer of its dealer agreement or this subchapter, the manufacturer or distributor may not object to the proposed change in ownership unless any of the following applies to the prospective transferee:

SB225,,93 (a) The transferee has previously been terminated for cause by the manufacturer.

SB225,,94 (b) The transferee has been convicted of a felony or any crime of fraud, deceit, or moral turpitude.

SB225,,95 (c) The transferee lacks any license required by law.

SB225,,96 (d) The transferee does not have an active line of credit sufficient to purchase a manufacturer’s product.

SB225,,97 (e) The transferee has undergone in the last 10 years bankruptcy, insolvency, a general assignment for the benefit of creditors, or the appointment of a receiver, trustee, or conservator to take possession of the transferee’s business or property.

SB225,,98 (2) If a manufacturer or distributor objects to a proposed change in ownership, the manufacturer or distributor shall give written notice of its reasons to the dealer within 7 business days after receipt of the dealer’s notification and complete documentation. The manufacturer or distributor has the burden of proof with regard to its objection. If the manufacturer or distributor does not give timely notice of its objection, the change, sale, or transfer shall be approved.

SB225,,99 (3) (a) A manufacturer or distributor shall provide a dealer an opportunity to designate, in writing, a family member as a successor to the dealership in the event of the death, incapacity, or retirement of the dealer. A manufacturer or distributor may not prevent or refuse to honor the succession unless the manufacturer or distributor has provided to the dealer written notice of its objections within 10 business days after receipt of the dealer’s modification of the dealer’s succession plan. In the absence of a breach of the dealer agreement, the manufacturer may object to the succession only for any of the following reasons:

SB225,,100 1. Conviction of the successor of a felony or any crime of fraud, deceit, or moral turpitude.

SB225,,101 2. Bankruptcy or insolvency of the successor during the past 10 years.

SB225,,102 3. Prior termination by the manufacturer of the successor for breach of a dealer agreement.

SB225,,103 4. The lack of an active line of credit for the successor sufficient to purchase the manufacturer’s product.

SB225,,104 5. The lack of any license for the successor required by law.

SB225,,105 (b) The manufacturer or distributor has the burden of proof regarding its objection. A family member may not succeed to a dealership if the succession involves, without the manufacturer’s or distributor’s consent, a relocation of the business or an alteration of the terms and conditions of the dealer agreement.

SB225,22 Section 22. 218.164 of the statutes is created to read:

SB225,,107 218.164 Warranty obligation. (1) Each warrantor shall do all of the following:

SB225,,108 (a) Specify, in writing, to each of the warrantor’s dealers, the dealer’s obligations, if any, for preparation, delivery, and warranty service on the warrantor’s products.

SB225,,109 (b) Compensate the dealer for warranty service performed by the dealer that is covered by the warrantor’s own warranty.

SB225,,110 (c) Provide the dealer with the schedule of compensation to be paid and the time allowances for the performance of any work and service. The schedule of compensation shall include reasonable compensation for diagnostic work as well as warranty labor. If the schedule of compensation required by this paragraph does not include a particular repair, the warrantor shall reimburse the dealer for warranty service for the actual time expended unless the warrantor demonstrates that the actual time was not reasonable. If the warrantor demonstrates that the actual time was not reasonable, the dealer shall be paid a reasonable sum.

SB225,,111 (2) Time allowances for the diagnosis and performance of warranty labor shall be reasonable for the work to be performed. The compensation of a dealer for warranty labor may not be less than the lowest retail labor rate actually charged by the dealer in the ordinary course of business for like nonwarranty labor as long as the rate is reasonable.