SB96-SSA1,1,11
1An Act to renumber 218.0133 (2) (d);
to renumber and amend 218.0125 (1);
2to amend 218.0116 (1) (km), 218.0116 (1) (rm), 218.0116 (10), 218.0125 (2),
3218.0125 (3), 218.0125 (4), 218.0125 (5), 218.0133 (title), 218.0133 (2) (a),
4218.0133 (2) (b) 1. b., 218.0133 (2) (b) 1. c., 218.0133 (2) (b) 2., 218.0133 (4) (a),
5218.0133 (5) (a) 2., 218.0133 (5) (d), 218.0133 (6) (b) and 218.0163 (1) (a); and
6to create 218.0116 (1) (um), 218.0116 (1) (vm), 218.0116 (1) (wm), 218.0116 (1)
7(xm), 218.0116 (1) (y), 218.0116 (1) (ym), 218.0116 (1) (ys), 218.0125 (1) (b),
8218.0125 (3m), 218.0125 (4m), 218.0128, 218.0133 (1) (c), 218.0133 (2) (d) 2.,
9218.0133 (2) (d) 3., 218.0133 (2) (f), 218.0133 (4) (e), 218.0133 (4) (f), 218.0133
10(5) (a) 4d., 218.0133 (5) (a) 4h., 218.0133 (5) (a) 4p., 218.0133 (5) (a) 4t. and
11218.0133 (7) of the statutes;
relating to: motor vehicle dealers.
Analysis by the Legislative Reference Bureau
Under current law, each manufacturer, importer, distributor, and dealer of
motor vehicles that wishes to sell motor vehicles in this state must be licensed by the
Department of Transportation (DOT). The manufacturer, importer, or distributor
may have its license revoked and may be liable for pecuniary losses and attorney fees
incurred by the dealer, if the manufacturer, importer, or distributor takes certain
actions with respect to a dealer that have been enumerated as violations.
This substitute amendment enumerates several additional actions of a
manufacturer, importer, or distributor, other than a manufacturer, importer, or
distributor of motorcycles, with respect to a dealer as violations. These newly
designated violations are: 1) conditioning certain agreements or approvals on the
dealer's entry into a contract that allows the manufacturer, importer, or distributor
to control the disposition or use of the dealer's dealership facilities; 2) unreasonably
conditioning certain agreements or approvals on the dealer's improvement of the
dealer's dealership facilities at a substantial cost to the dealer; 3) unreasonably
requiring a dealer to maintain exclusive facilities for a particular line make of motor
vehicles; 4) taking certain adverse actions against a dealer for charging a lawful
service fee to a retail customer; 5) taking certain adverse actions against a dealer
because, without the dealer's knowledge that the purchaser intended to export the
motor vehicle, a motor vehicle purchaser exported a motor vehicle; 6) with certain
exceptions, requiring a dealer to provide the manufacturer, importer, or distributor
with information regarding the dealer's retail customers; 7) transferring nonpublic
customer information obtained from a dealer to another dealer or otherwise using
nonpublic customer information obtained from a dealer for a nonpermitted use; and
8) failing to properly indemnify a dealer.
Under current law, a manufacturer, importer, or distributor must reasonably
compensate a dealer that performs certain motor vehicle service work for the
manufacturer, importer, or distributor. Covered service work is work to rectify
product defects or other defects covered by the warranty provided by the
manufacturer, importer, or distributor, certain motor vehicle delivery or preparation
obligations, and any other work approved by the manufacturer, importer, or
distributor. The manufacturer, importer, or distributor must compensate the dealer,
for service, at the effective labor rate charged to all customers and, for parts,
generally at not less than the amount the dealer charges other retail service
customers for the parts. To be eligible for compensation, a dealer must notify the
manufacturer, importer, or distributor of the amount that the dealer charges other
retail service customers for parts. The manufacturer, importer, or distributor may
require the dealer to provide documentary substantiation of the claimed amount the
dealer charges for parts.
This substitute amendment requires most manufacturers, importers, or
distributors to compensate a dealer based on the dealer's "effective nonwarranty
labor rate" and "average percentage markup over dealer cost for parts." To be eligible
for compensation, a dealer must provide the manufacturer, importer, or dealer with
100 sequential repair orders for qualifying nonwarranty repairs or all repair orders
for qualifying nonwarranty repairs performed in a 90-day period. Qualifying
nonwarranty repairs are repairs that are not covered by a warranty, but would be
covered by the warranty of a manufacturer, importer, or distributor if the repaired
vehicle was covered by the warranty. The effective nonwarranty labor rate is
determined by dividing the total customer labor charges for qualifying nonwarranty
repairs by the total number of hours that would be allowed for the repairs if the
repairs were made under the manufacturer's, importer's, or distributors time
allowances. The dealer's average percentage markup over dealer cost for parts is
determined by dividing total charges for parts for qualifying nonwarranty repairs by
the total dealer cost for the parts. Within 30 days of receiving the substantiating
repair orders, the manufacturer, importer, or distributor must begin compensating
the dealer based on the rates calculated from the orders. If there is a conflict between
the rates calculated by the manufacturer, importer, or distributor and the dealer, the
manufacturer, importer, or distributor must provide a written notice and
explanation of the dispute to the dealer. These changes to service compensation do
not apply to manufacturers, importers, or distributors of motorcycles.
Under current law, with certain exceptions, when a manufacturer on direct
dealership, a distributor on indirect dealership, or an importer on direct dealership
(grantor) has entered into an agreement with a motor vehicle dealer and the grantor
or dealer terminates, cancels, or does not renew the agreement, the grantor must pay
to the dealer specified termination benefits. Among these benefits, the grantor must
repurchase from the dealer unsold motor vehicles, parts, and accessories that meet
certain criteria and pay the dealer a certain amount for the dealership facilities, but
then the grantor is entitled to the possession and use of the dealership facilities.
Among the exceptions that allow a termination without payment of benefits are the
termination, cancellation, or nonrenewal of an agreement following a determination
that the dealer engaged in fraud or theft against the grantor and the termination or
cancellation of an agreement by a dealer without adequate notice.
This substitute amendment generally requires payment of termination
benefits upon the termination, cancellation, or nonrenewal of a franchise that may
constitute less than the entire agreement between the grantor and dealer. This
substitute amendment also generally requires a grantor to provide several
additional items of termination benefits, including removing signs from the
dealership facility, in certain cases, and reimbursing the dealer for certain computer
material and service contractual expenses and certain facility renovation expenses.
In addition, if the cancellation or nonrenewal of a franchise is due to a
manufacturer's, importer's, or distributor's termination, cancellation, or
discontinuation of a motor vehicle line make, the grantor must generally compensate
the dealer in an amount not less than the fair market value of the terminated or
nonrenewed franchise on the date immediately preceding the date the grantor
announced the termination, cancellation, or discontinuation of the line make. The
termination benefits changes do not apply to manufacturers, importers, or
distributors of motorcycles. This substitute amendment also provides several
additional exceptions that allow termination, cancellation, or nonrenewal of a
franchise without the payment of termination benefits. These are termination,
cancellation, or nonrenewal: 1) after revocation of a necessary dealer license; 2)
based on the dealer's failure to remain open during customary business hours for
seven consecutive days; 3) based on the dealer's conviction of certain crimes; and 4)
based on the dealer being subject to a bankruptcy or receivership filing. These new
exceptions do not apply to manufacturers, importers, or distributors of motorcycles
or their dealers.
This substitute amendment also requires a manufacturer, importer, or
distributor, other than a manufacturer, importer, or distributor of motorcycles, to
indemnify a dealer against certain claims alleging defective or negligent
manufacture or design of the vehicle or its parts or accessories. Failure to adequately
indemnify a dealer may result in the revocation of the manufacturer's, importer's,
or distributor's license or liability for the dealer's pecuniary losses and attorney fees.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB96-SSA1, s. 1
1Section
1. 218.0116 (1) (km) of the statutes is amended to read:
SB96-SSA1,4,32
218.0116
(1) (km) Being a manufacturer, importer
, or distributor who violates
3s. 218.0121, 218.0122, 218.0123, 218.0124
or, 218.0125
, or 218.0128.
SB96-SSA1, s. 2
4Section
2. 218.0116 (1) (rm) of the statutes is amended to read:
SB96-SSA1,4,95
218.0116
(1) (rm) Being a grantor, as defined in s. 218.0133 (1) (b),
except a
6motorcycle grantor, as defined in s. 218.0133 (1) (c), who fails to pay a motor vehicle
7dealer
agreement franchise termination benefits under s. 218.0133
or being a
8motorcycle grantor who fails to pay a motor vehicle dealer agreement termination
9benefits under s. 218.0133.
SB96-SSA1, s. 3
10Section
3. 218.0116 (1) (um) of the statutes is created to read:
SB96-SSA1,4,1511
218.0116
(1) (um) 1. In this paragraph, "site control contract" means a contract
12that grants authority to a manufacturer, importer, or distributor or an affiliate of a
13manufacturer, importer, or distributor, during the term of an agreement or after the
14termination, cancellation, or nonrenewal of an agreement, to control the disposition
15or use of or to lease the dealer's dealership facilities.
SB96-SSA1,5,1016
2. Being a manufacturer, importer, or distributor, except a manufacturer,
17importer, or distributor of motorcycles with respect to a dealer or prospective dealer
18of the manufacturer's, importer's, or distributor's motorcycles, who conditions entry
1into an agreement or renewal of an agreement or approval of the addition of a line
2make of motor vehicles, franchise relocation, ownership or management change, or
3transfer of dealership assets on the entry by the dealer or prospective dealer into a
4site control contract or who coerces or attempts to coerce a dealer or prospective
5dealer to enter into a site control contract. This subdivision does not prohibit a site
6control contract for which the dealer or prospective dealer receives a separate and
7valuable consideration. This subdivision does not apply to a site control contract that
8is in existence on the effective date of this subdivision .... [LRB inserts date], unless
9the contract is amended, modified, changed, or renewed after the effective date of this
10subdivision .... [LRB inserts date].
SB96-SSA1, s. 4
11Section
4. 218.0116 (1) (vm) of the statutes is created to read:
SB96-SSA1,6,812
218.0116
(1) (vm) Unless the technology of a motor vehicle reasonably requires
13improvement of dealership facilities to accommodate the adequate sale and service
14of the motor vehicle or the reasonable business considerations of the manufacturer
15and dealer justify improvement of dealership facilities, being a manufacturer,
16importer, or distributor, except a manufacturer, importer, or distributor of
17motorcycles with respect to a dealer or prospective dealer of the manufacturer's,
18importer's, or distributor's motorcycles, who conditions entry into an agreement or
19renewal of an agreement or approval of the addition of a line make of motor vehicles,
20franchise relocation, ownership or management change, or transfer of dealership
21assets on the improvement of dealership facilities at a substantial cost to the dealer
22or prospective dealer or who coerces or attempts to coerce a dealer or prospective
23dealer to improve dealership facilities at a substantial cost to the dealer or
24prospective dealer. This paragraph does not prohibit improvement of dealership
25facilities at a substantial cost to the dealer or prospective dealer if the dealer or
1prospective dealer has agreed to undertake the improvement and received a separate
2and valuable consideration for the improvement. The burden of proof to demonstrate
3the technological necessity or business justification of the facilities improvement is
4on the manufacturer, importer, or distributor. This paragraph does not apply to an
5agreement to improve dealership facilities at a substantial cost to the dealer or
6prospective dealer that is in existence on the effective date of this paragraph .... [LRB
7inserts date], unless the agreement is amended, modified, changed, or renewed after
8the effective date of this paragraph .... [LRB inserts date].
SB96-SSA1, s. 5
9Section
5. 218.0116 (1) (wm) of the statutes is created to read:
SB96-SSA1,6,2510
218.0116
(1) (wm) Being a manufacturer, importer, or distributor, except a
11manufacturer, importer, or distributor of motorcycles with respect to a dealer of the
12manufacturer's, importer's, or distributor's motorcycles, who unreasonably requires
13or coerces or attempts to coerce a dealer to provide or maintain exclusive facilities
14for a particular line make of motor vehicles or unreasonably refuses to permit or
15approve the addition of another line make to the dealership facilities of a dealer
16taking into consideration the reasonable business considerations of the
17manufacturer, importer, or distributor and the dealer. The burden of proof to
18demonstrate the reasonableness of the provision or maintenance of exclusive
19facilities or the refusal to permit or approve the addition of another line make is on
20the manufacturer, importer, or distributor. This paragraph does not apply to an
21agreement for a dealer to provide or maintain exclusive facilities for a particular line
22make of motor vehicles and for which the dealer has received separate and valuable
23consideration that is in existence on the effective date of this paragraph .... [LRB
24inserts date], unless the agreement is amended, modified, changed, or renewed after
25the effective date of this paragraph .... [LRB inserts date].
SB96-SSA1, s. 6
1Section
6
. 218.0116 (1) (xm) of the statutes is created to read:
SB96-SSA1,7,82
218.0116
(1) (xm) Being a manufacturer, importer, or distributor, except a
3manufacturer, importer, or distributor of motorcycles with respect to a dealer of the
4manufacturer's, importer's, or distributor's motorcycles, who charges back,
5withholds payment, denies vehicle allocation, or takes other adverse action against
6a dealer for charging a service fee to a retail customer in any amount that is not
7prohibited under ss. 218.0101 to 218.0163 or rules promulgated by the department
8of transportation under ss. 218.0101 to 218.0163.
SB96-SSA1, s. 7
9Section
7. 218.0116 (1) (y) of the statutes is created to read:
SB96-SSA1,7,2210
218.0116
(1) (y) Being a manufacturer, importer, or distributor, except a
11manufacturer, importer, or distributor of motorcycles with respect to a dealer of the
12manufacturer's, importer's, or distributor's motorcycles, who charges back,
13withholds payment, denies vehicle allocation, or takes other adverse action against
14a dealer because a motor vehicle sold by the dealer has been exported to a foreign
15country unless the dealer knew or reasonably should have known that the purchaser
16intended to export the vehicle or resell the vehicle for export. If the motor vehicle is
17titled or registered in any state in this country, it is presumed that the dealer had no
18knowledge that the purchaser intended to export the vehicle or resell the vehicle for
19export. The manufacturer, importer, or distributor may rebut the presumption. The
20burden of proof to demonstrate that the dealer knew or reasonably should have
21known that the purchaser intended to export the vehicle or resell the vehicle for
22export is on the manufacturer, importer, or distributor.
SB96-SSA1, s. 8
23Section
8. 218.0116 (1) (ym) of the statutes is created to read:
SB96-SSA1,8,724
218.0116
(1) (ym) Being a manufacturer, importer, or distributor, except a
25manufacturer, importer, or distributor of motorcycles with respect to a dealer of the
1manufacturer's, importer's, or distributor's motorcycles, who requires or coerces, or
2attempts to require or coerce, a dealer to provide the manufacturer, importer, or
3distributor with information regarding the retail customers of the dealer unless the
4information is necessary for the sale and delivery of a new motor vehicle to a retail
5buyer, to validate and pay customer or dealer incentives, for warranty
6reimbursement substantiation under s. 218.0125, or to enable the manufacturer,
7importer, or distributor to fulfill safety, recall, or other legal obligations.
SB96-SSA1, s. 9
8Section
9. 218.0116 (1) (ys) of the statutes is created to read:
SB96-SSA1,8,179
218.0116
(1) (ys) Being a manufacturer, importer, or distributor, except a
10manufacturer, importer, or distributor of motorcycles with respect to a dealer of the
11manufacturer's, importer's, or distributor's motorcycles, who transfers nonpublic
12customer information that was obtained from a dealer to another franchised dealer
13while the dealer from which the information was obtained remains a franchised
14dealer unless the dealer from which the information was obtained agrees to the
15transfer, or who uses any nonpublic personal information, as defined in
16 CFR 313.3 16(n), obtained from a dealer unless the use falls within an exception under
16 CFR
17313.14 or
313.15.
SB96-SSA1, s. 10
18Section
10. 218.0116 (10) of the statutes is amended to read:
SB96-SSA1,9,219
218.0116
(10) In addition to the licensor's authority to deny, suspend
, or revoke
20a license under ss. 218.0101 to 218.0163, the division of banking, after public
21hearing, may issue a special order enjoining any licensee from engaging in any act
22or practice which is determined by the division of banking to be in violation of any
23provision of sub. (1), and the division of hearings and appeals may be petitioned to
24and, after notice and hearing, may issue
such a special order
after notice and hearing
1thereon enjoining a licensee from engaging in any act or practice which the division
2of hearing and appeals determines to be in violation of any provision of sub. (1).
SB96-SSA1, s. 11
3Section
11. 218.0125 (1) of the statutes is renumbered 218.0125 (1) (intro.) and
4amended to read:
SB96-SSA1,9,55
218.0125
(1) (intro.) In this section
, "dealer:
SB96-SSA1,9,8
6(a) "Dealer cost" means the wholesale cost for a part as listed in the
7manufacturer's, importer's or distributor's current price schedules or, if the part is
8not so listed, the dealer's original invoice cost for the part.
SB96-SSA1, s. 12
9Section
12. 218.0125 (1) (b) of the statutes is created to read:
SB96-SSA1,9,1310
218.0125
(1) (b) "Qualifying nonwarranty repairs" means nonwarranty repairs
11that would be covered by the warranty of a manufacturer, importer, or distributor if
12the vehicle being repaired was covered by the warranty. The term does not include
13routine maintenance.
SB96-SSA1,9,2415
218.0125
(2) A manufacturer, importer
, or distributor shall, for the protection
16of the buying public, specify the delivery and preparation obligations of its dealers
17before delivery of new motor vehicles to retail buyers.
Except for a manufacturer,
18importer, or distributor of motorcycles with respect to a dealer of the manufacturer's,
19importer's, or distributor's motorcycles, the specification shall be in writing. A copy
20of the delivery and preparation obligations of its dealers shall be filed with the
21department of transportation by every licensed motor vehicle manufacturer,
22importer
, or distributor and shall constitute the dealer's only responsibility for
23product liability as between the dealer and the manufacturer, importer
, or
24distributor. Any mechanical, body
, or parts defects arising from any
express or
1implied warranties of the manufacturer, importer
, or distributor shall constitute the
2manufacturer's, importer's
, or distributor's product or warranty liability.
The
SB96-SSA1,10,12
3(2m) A manufacturer, importer
, or distributor
of motorcycles with respect to
4a dealer of the manufacturer's, importer's, or distributor's motorcycles shall
5reasonably compensate any authorized dealer who performs work to rectify the
6manufacturer's, importer's
, or distributor's product or warranty defects or delivery
7and preparation obligations or who performs any other work required, requested
, or
8approved by the manufacturer, importer
, or distributor or for which the
9manufacturer, importer
, or distributor has agreed to pay, including compensation for
10labor at a labor rate equal to the effective labor rate charged all customers and for
11parts at an amount not less than the amount the dealer charges its other retail
12service customers for parts used in performing similar work by the dealer.
SB96-SSA1,11,314
218.0125
(3) To be eligible for compensation for parts under sub.
(2) (2m), a
15dealer
of motorcycles shall notify the manufacturer, importer
, or distributor
of
16motorcycles in writing of the amounts that the dealer charges its other retail service
17customers for parts and request that it be paid for parts in accordance with this
18section. The notice may be limited to the dealer's average markup over dealer cost
19that the dealer charges its other retail service customers for parts used to perform
20similar work. The notice shall be served upon the manufacturer, importer
, or
21distributor not less than 30 days before the date on which the dealer requests that
22the manufacturer, importer
, or distributor begin paying the dealer for parts at the
23stated amounts. The manufacturer, importer
, or distributor shall pay the dealer, as
24provided in this section, at the amounts stated in the dealer notice for parts used in
25work performed on and after the beginning date stated in the notice.
This section
1applies to a manufacturer, importer, or distributor of motorcycles with respect to a
2dealer of the manufacturer's, importer's, or distributor's motorcycles and those
3dealers.
SB96-SSA1,11,135
218.0125
(3m) (a) Subject to sub. (4m), a manufacturer, importer, or
6distributor, except a manufacturer, importer, or distributor of motorcycles with
7respect to a dealer of the manufacturer's, importer's, or distributor's motorcycles,
8shall reasonably compensate a dealer who performs work to rectify the product or
9warranty defects of the manufacturer, importer, or distributor or to satisfy delivery
10and preparation obligations of the manufacturer, importer, or distributor or who
11performs any other work required, requested, or approved by the manufacturer,
12importer, or distributor or for which the manufacturer, importer, or distributor has
13agreed to pay.
SB96-SSA1,11,1914
(b) Reasonable compensation under par. (a) for labor is equal to the dealer's
15effective nonwarranty labor rate multiplied by the number of hours allowed for the
16repair under the manufacturer's, importer's, or distributor's time allowances used
17in compensating the dealer for warranty work. Reasonable compensation under par.
18(a) for parts is equal to the dealer's cost for the parts multiplied by the sum of 1 and
19the dealer's average percentage markup over dealer cost for parts.
SB96-SSA1,11,2520
(c) 1. The effective nonwarranty labor rate is determined, using the submitted
21substantiating orders under sub. (4m) (a) 2., by dividing the total customer labor
22charges for qualifying nonwarranty repairs in the repair orders by the total number
23of hours that would be allowed for the repairs if the repairs were made under the
24manufacturer's, importer's, or distributor's time allowances used in compensating
25the dealer for warranty work.
SB96-SSA1,12,4
12. A dealer's average percentage markup over dealer cost for parts is
2determined, using the submitted substantiating orders under sub. (4m) (a) 2., by
3dividing total charges for parts in the repair orders by the total dealer cost for the
4parts.
SB96-SSA1,12,136
218.0125
(4) The manufacturer, importer
, or distributor
of motorcycles with
7respect to a dealer of the manufacturer's, importer's, or distributor's motorcycles 8may require the dealer, at reasonable intervals, to provide the manufacturer,
9importer
, or distributor with documents or information regarding a reasonable
10number of sales to other retail service customers of parts used by the dealer to
11perform similar work in order to substantiate that the amounts requested in the
12dealer's notice are consistent with the amounts that the dealer charges its other
13retail service customers for parts used by the dealer to perform similar work.
SB96-SSA1, s. 17
14Section
17. 218.0125 (4m) of the statutes is created to read:
SB96-SSA1,12,1715
218.0125
(4m) (a) To be eligible for compensation for labor or parts under sub.
16(3m), a dealer shall submit to the manufacturer, importer, or distributor all of the
17following:
SB96-SSA1,12,1918
1. A written notice of the claimed effective nonwarranty labor rate or average
19percentage markup over dealer cost for parts.
SB96-SSA1,12,2320
2. Either 100 sequential repair orders for qualifying nonwarranty repairs or
21all repair orders for qualifying nonwarranty repairs performed in a 90-day period,
22whichever is less. All repair orders under this subdivision must be for repairs made
23no more than 180 days before the submission.
SB96-SSA1,13,824
(b) Not more than 30 days after receiving a submission under par. (a), the
25manufacturer, importer, or distributor shall begin compensating the dealer based on
1the effective nonwarranty labor rate or average percentage markup over dealer cost
2for parts that is substantiated by the submission. If the manufacturer, importer, or
3distributor disputes the dealer's claimed labor rate or markup, the manufacturer,
4importer, or distributor shall notify the dealer in writing that it disputes the labor
5rate or markup. A notice under this paragraph shall include a written explanation
6of the reason for the dispute, including the labor rate or markup that the
7manufacturer, importer, or distributor has determined is substantiated by the
8submission.
SB96-SSA1,13,2110
218.0125
(5) A manufacturer, importer
, or distributor who fails to compensate
11a dealer for parts at an amount not less than the amount the dealer charges its other
12retail service customers for parts used to perform similar work shall not be found to
13have violated this section if the manufacturer, importer
, or distributor shows that
,
14for a manufacturer, importer, or distributor of motorcycles with respect to a dealer
15of the manufacturer's, importer's, or distributor's motorcycles, the amount is not
16reasonably competitive to the amounts charged to retail service customers by other
17similarly situated franchised motor vehicle dealers in this state for the same parts
18when used by those dealers to perform similar work
or, for any other manufacturer,
19importer, or distributor, the amount is not reasonably competitive to the amounts
20charged to retail service customers by other similarly situated franchised motor
21vehicle dealers in this state in performing qualifying nonwarranty repairs.
SB96-SSA1,14,10
23218.0128 Product liability. A manufacturer, importer, or distributor, except
24a manufacturer, importer, or distributor of motorcycles with respect to a dealer of the
25manufacturer's, importer's, or distributor's motorcycles, shall defend, indemnify,
1and hold harmless a dealer against any claim, judgment, or settlement for damages,
2court costs, expert witness fees, attorney fees, or other expenses arising out of a
3complaint, claim, or lawsuit to the extent that the complaint, claim, or lawsuit is
4caused by alleged defective or negligent manufacture, assembly, or design of a motor
5vehicle, part, or accessory by the manufacturer, importer, or distributor. If a
6complaint, claim, or lawsuit involves acts or omissions of both the manufacturer,
7importer, or distributor and the dealer, the manufacturer, importer, or distributor is
8not obligated to defend the dealer against a claim arising out of the dealer's alleged
9acts or omissions and is not obligated to indemnify the dealer against any part of a
10judgment or settlement that arises out of the dealer's alleged acts or omissions.
SB96-SSA1, s. 20
11Section
20. 218.0133 (title) of the statutes is amended to read:
SB96-SSA1,14,12
12218.0133 (title)
Agreement termination Termination benefits.
SB96-SSA1, s. 21
13Section
21. 218.0133 (1) (c) of the statutes is created to read:
SB96-SSA1,14,1814
218.0133
(1) (c) "Motorcycle grantor" means a manufacturer of motorcycles on
15direct dealership, a distributor of motorcycles on indirect dealership, or an importer
16of motorcycles on direct dealership, with respect to a dealer of the manufacturer's,
17importer's, or distributor's motorcycles, that has entered into an agreement with a
18motor vehicle dealer.
SB96-SSA1, s. 22
19Section
22. 218.0133 (2) (a) of the statutes is amended to read:
SB96-SSA1,15,320
218.0133
(2) (a) Except as provided in sub. (5) and subject to sub. (3), when a
21motorcycle grantor or
motor vehicle
a dealer
of its motorcycles terminates, cancels
, 22or does not renew an agreement
a , the motorcycle grantor shall pay
a motor vehicle 23the dealer all of the termination benefits under pars. (b) to (e)
, and when a grantor
24that is not a motorcycle grantor or a dealer of its motor vehicles terminates, cancels,
25or does not renew a franchise, the grantor shall pay the motor vehicle dealer all of
1the termination benefits under pars. (b) to (e). When a grantor that is not a
2motorcycle grantor terminates, cancels, or does not renew a franchise, the grantor
3shall pay the motor vehicle dealer the termination benefits under par. (f).
SB96-SSA1, s. 23
4Section
23. 218.0133 (2) (b) 1. b. of the statutes is amended to read:
SB96-SSA1,15,125
218.0133
(2) (b) 1. b. 218.0133
(2) (b) 1. b.
The If the grantor is a motorcycle
6grantor, the motor vehicle has not been operated more than 300 miles for
7manufacturer's tests, predelivery tests
, and motor vehicle dealer exchange in
8addition to operation required for motor vehicle delivery from the grantor.
If the
9grantor is not a motorcycle grantor, the motor vehicle has not been operated more
10than 500 miles for manufacturer's tests, predelivery tests, and motor vehicle dealer
11exchange in addition to operation required for motor vehicle delivery from the
12grantor or another dealer of the same line make.
SB96-SSA1, s. 24
13Section
24. 218.0133 (2) (b) 1. c. of the statutes is amended to read:
SB96-SSA1,15,1714
218.0133
(2) (b) 1. c. The motor vehicle was acquired as part of the motor vehicle
15dealer's original inventory or from the grantor or
in the ordinary course of business 16from another motor vehicle dealer of the same line make who acquired the motor
17vehicle from the grantor.
SB96-SSA1, s. 25
18Section
25. 218.0133 (2) (b) 2. of the statutes is amended to read:
SB96-SSA1,16,419
218.0133
(2) (b) 2. A
motorcycle grantor may not be required to repurchase a
20motor vehicle under this paragraph unless the date on the original dealer invoice is
21within 12 months of the date on which the motor vehicle dealer terminates, cancels
, 22or does not renew an agreement or is within 18 months of the date on which the
23grantor terminates, cancels
, or does not renew an agreement.
A grantor that is not
24a motorcycle grantor may not be required to repurchase a motor vehicle under this
25paragraph unless the vehicle is of the current or one-year prior model year or the
1date on the original dealer invoice is within 12 months of the date on which the motor
2vehicle dealer terminates, cancels, or does not renew a franchise or is within 18
3months of the date on which the grantor terminates, cancels, or does not renew a
4franchise.
SB96-SSA1, s. 26
5Section
26. 218.0133 (2) (d) of the statutes is renumbered 218.0133 (2) (d) 1.
SB96-SSA1, s. 27
6Section
27. 218.0133 (2) (d) 2. of the statutes is created to read:
SB96-SSA1,16,97
218.0133
(2) (d) 2. If the dealer leases a sign from the grantor or an entity
8controlled by the grantor, the grantor, except a motorcycle grantor, shall terminate
9or arrange for the termination of the lease.
SB96-SSA1, s. 28
10Section
28. 218.0133 (2) (d) 3. of the statutes is created to read:
SB96-SSA1,16,1311
218.0133
(2) (d) 3. The grantor, except a motorcycle grantor, is responsible for
12the removal of a sign subject to subd. 1. or 2. from the dealership facility and shall
13bear the costs of the removal.
SB96-SSA1, s. 29
14Section
29. 218.0133 (2) (f) of the statutes is created to read:
SB96-SSA1,16,2215
218.0133
(2) (f) The grantor, except a motorcycle grantor, shall reimburse the
16motor vehicle dealer for the amount of any obligations that extend beyond the
17effective date of the termination, cancellation, or nonrenewal under contracts for
18computer hardware, software, maintenance, or other related service entered into by
19the dealer and required by the grantor for 18 months or the remaining term of the
20contracts, whichever is less, unless the computer hardware, software, maintenance,
21or other related service was used to support the operations of a franchise other than
22the franchise that was terminated, cancelled, or not renewed.
SB96-SSA1, s. 30
23Section
30. 218.0133 (4) (a) of the statutes is amended to read:
SB96-SSA1,17,724
218.0133
(4) (a) Except as provided in sub. (5) and subject to
par. pars. (d)
and
25(f), when a grantor
except a motorcycle grantor terminates, cancels
, or does not
1renew
an agreement a franchise a grantor shall, upon request, pay a motor vehicle
2dealer the termination benefits under par. (b) or (c)
and under par. (e), and when a
3motorcycle grantor terminates, cancels, or does not renew an agreement, a
4motorcycle grantor shall, upon request, pay a dealer the termination benefits under
5par. (b) or (c). If a motor vehicle dealer receives benefits under par. (b) or (c)
and par.
6(f) does not apply, the grantor shall be entitled to the possession and use of the
7dealership facilities for the period that the termination benefits payment covers.
SB96-SSA1, s. 31
8Section
31. 218.0133 (4) (e) of the statutes is created to read:
SB96-SSA1,17,179
218.0133
(4) (e) If a dealer completed construction or renovation of its
10dealership facilities not more than 24 months before receiving the notice of the
11franchise termination, cancellation, or nonrenewal and the construction or
12renovation was required by the grantor, the grantor except a motorcycle grantor
13shall pay the dealer an amount equal to the dealer's actual cost for the construction
14or renovation, less any allowances or credits provided to the dealer by the grantor for
15the construction or renovation and less any tax savings accruing to the dealer's
16benefit prior to the notice of the franchise termination, cancellation, or nonrenewal
17from depreciation write-offs related to the construction or renovation.
SB96-SSA1, s. 32
18Section
32. 218.0133 (4) (f) of the statutes is created to read:
SB96-SSA1,17,2419
218.0133
(4) (f) If the termination, cancellation, or nonrenewal relates to fewer
20than all of the franchises operated by a dealer at a single location, the amount of the
21termination benefit under this subsection shall be based on the percentage of total
22square footage attributed to the franchise being terminated, cancelled, or not
23renewed at the effective date of the termination, cancellation, or nonrenewal. This
24paragraph does not apply to a motorcycle grantor.
SB96-SSA1, s. 33
25Section
33. 218.0133 (5) (a) 2. of the statutes is amended to read:
SB96-SSA1,18,6
1218.0133
(5) (a) 2. 218.0133
(5) (a) 2. A motor vehicle dealer who terminates
2or cancels an agreement
with a motorcycle grantor without giving the grantor 60
3days' notice or the notice required under the agreement, whichever is less
or who
4terminates or cancels a franchise with a grantor that is not a motorcycle grantor
5without giving the grantor 60 days' notice or the notice required under the
6agreement, whichever is less.
SB96-SSA1, s. 34
7Section
34
. 218.0133 (5) (a) 4d. of the statutes is created to read:
SB96-SSA1,18,108
218.0133
(5) (a) 4d. A motor vehicle dealer who has any license that is required
9to operate its dealership revoked. This subdivision does not apply to a motorcycle
10grantor or a dealer of its motorcycles with respect to the motorcycle grantor.
