AB640, s. 2
1Section 2. Subchapter XI of chapter 218 [precedes 218.60] of the statutes is
2created to read:
AB640,3,33 Chapter 218
AB640,3,64 Subchapter XI
5 POWERSPORTS VEHICLE MANUFACTURERS,
6 DISTRIBUTORS, AND dealers
AB640,3,7 7218.60 Definitions. In this subchapter:
AB640,3,12 8(1) "Affiliate" means, with respect to a powersports vehicle manufacturer or
9powersports vehicle distributor or factory branch of either, a parent company, wholly
10or partially owned subsidiary, or any other person controlled by or under common
11control with the powersports vehicle manufacturer, powersports vehicle distributor,
12or factory branch.
AB640,3,13 13(2) "All-terrain vehicle" has the meaning given in s. 340.01 (2g).
AB640,3,14 14(3) "Business entity" has the meaning given in s. 13.62 (5).
AB640,3,16 15(4) "Department" means the department of agriculture, trade and consumer
16protection.
AB640,3,20 17(5) "Golf cart" means a vehicle whose speed attainable in one mile does not
18exceed 20 miles per hour on a paved, level surface, and is designed and intended to
19convey one or more persons and equipment to play the game of golf in an area
20designated as a golf course.
AB640,3,25 21(6) "Lightweight utility vehicle" means an engine-driven device having a gross
22weight of more than 700 pounds but not more than 1,999 pounds that is designed to
23travel on 4 or more low-pressure tires, is equipped with a cargo area, and is used
24primarily off a highway. "Lightweight utility vehicle" does not include golf carts or
25low-speed vehicles.
AB640,4,3
1(7) "Low-pressure tire" means a tire that is designed to be mounted on a rim
2with a maximum diameter of 14 inches and to be inflated with an operating pressure
3not to exceed 20 pounds per square inch as recommended by the manufacturer.
AB640,4,7 4(8) "Low-speed vehicle" means a low-speed vehicle, as defined in 49 CFR
5571.3
, that satisfies the equipment standards under 49 CFR 571.500 and that was
6originally manufactured to meet the applicable equipment standards under 49 CFR
7571.500
. "Low-speed vehicle" does not include a golf cart.
AB640,4,8 8(9) "Moped" has the meaning given in s. 340.01 (29m).
AB640,4,10 9(10) "Off-road motorcycle" means a motorcycle, as defined in s. 340.01 (32),
10that is not required to be registered under ch. 341.
AB640,4,11 11(11) "Personal watercraft" has the meaning given in s. 30.50 (9d).
AB640,4,13 12(12) "Powersports vehicle" means an all-terrain vehicle, snowmobile,
13lightweight utility vehicle, personal watercraft, off-road motorcycle, or moped.
AB640,4,14 14(13) (a) "Powersports vehicle dealer" means any of the following:
AB640,4,1715 1. A business entity engaged in the business of selling any all-terrain vehicle,
16snowmobile, lightweight utility vehicle, personal watercraft, off-road motorcycle, or
17moped for a profit at wholesale or retail.
AB640,4,1918 2. An all-terrain vehicle dealer registered with the department of natural
19resources under s. 23.33 (2) (dm) 1.
AB640,4,2120 3. A snowmobile dealer registered with the department of natural resources
21under s. 350.12 (3) (c) 1.
AB640,4,2322 4. A moped dealer licensed by the department of transportation under s.
23218.41.
AB640,5,3
1(b) "Powersports vehicle dealer" does not include any dealer licensed under
2subch. I of this chapter with respect to any category of powersports vehicle for which
3that license applies.
AB640,5,4 4(14) (a) "Powersports vehicle distributor" means any of the following:
AB640,5,85 1. A business entity that is engaged in the business of selling or distributing
6any all-terrain vehicle, snowmobile, lightweight utility vehicle, personal watercraft,
7off-road motorcycle, or moped to powersports vehicle dealers or that maintains
8distributor representatives.
AB640,5,109 2. An all-terrain vehicle distributor registered with the department of natural
10resources under s. 23.33 (2) (dm) 1.
AB640,5,1211 3. A snowmobile distributor registered with the department of natural
12resources under s. 350.12 (3) (c) 1.
AB640,5,1413 4. A factory branch of any powersports vehicle distributor described in subds.
141. to 3.
AB640,5,1715 (b) "Powersports vehicle distributor" does not include any distributor licensed
16under subch. I of this chapter with respect to any category of powersports vehicle for
17which that license applies.
AB640,5,18 18(15) (a) "Powersports vehicle manufacturer" means any of the following:
AB640,5,2119 1. A business entity engaged in the business of manufacturing any all-terrain
20vehicle, snowmobile, lightweight utility vehicle, personal watercraft, off-road
21motorcycle, or moped for sale to the public.
AB640,5,2322 2. An all-terrain vehicle manufacturer registered with the department of
23natural resources under s. 23.33 (2) (dm) 1.
AB640,5,2524 3. A snowmobile manufacturer registered with the department of natural
25resources under s. 350.12 (3) (c) 1.
AB640,6,2
14. A factory branch of any powersports vehicle manufacturer described in
2subds. 1. to 3.
AB640,6,53 (b) "Powersports vehicle manufacturer" does not include any manufacturer
4licensed under subch. I of this chapter with respect to any category of powersports
5vehicle for which that license applies.
AB640,6,6 6(16) "Snowmobile" has the meaning given in s. 340.01 (58a).
AB640,6,10 7(17) "Trade secret" has the meaning given in s. 134.90 (1) (c), and may include
8business plans, marketing plans or strategies, customer lists, contracts, sales data,
9financial information, or any other confidential or proprietary information within
10the definition under s. 134.90 (1) (c).
AB640,6,14 11218.61 Prohibited practices by powersports vehicle manufacturers
12and distributors.
No powersports vehicle manufacturer or powersports vehicle
13distributor, and no agent, officer, factory representative, or affiliate of a powersports
14vehicle manufacturer or powersports vehicle distributor, may do any of the following:
AB640,6,16 15(1) Discriminate between powersports vehicle dealers by doing any of the
16following:
AB640,6,1917 (a) Selling or offering to sell a like powersports vehicle to one dealer at a lower
18actual price than the actual price offered to another dealer for the same model
19similarly equipped.
AB640,6,2120 (b) Selling or offering to sell parts or accessories to one dealer at a lower actual
21price than the actual price offered to another dealer.
AB640,6,2422 (c) Using a promotion plan, marketing plan, allocation plan, flooring assistance
23plan, or other similar device that results in a lower actual price on powersports
24vehicles, parts, or accessories being charged to one dealer over another dealer.
AB640,7,7
1(d) Adopting a method or changing an existing method for the allocation,
2scheduling, or delivery of new powersports vehicles, parts, or accessories to its
3dealers that is not fair, reasonable, and equitable. Upon the request of a powersports
4vehicle dealer, a powersports vehicle manufacturer shall disclose in writing to the
5dealer the method by which new powersports vehicles, parts, and accessories are
6allocated, scheduled, or delivered to its dealers handling the same line or make of
7vehicles.
AB640,7,13 8(2) Give preferential treatment to some powersports vehicle dealers over
9others by refusing or failing to deliver, in reasonable quantities and within a
10reasonable time after receipt of an order, to any dealer holding a franchise for a line
11or make of powersports vehicles sold or distributed by the manufacturer any new
12powersports vehicle, part, or accessory, if the powersports vehicle, part, or accessory
13is being delivered to other dealers.
AB640,7,14 14(3) Compete with a powersports vehicle dealer by doing any of the following:
AB640,7,1715 (a) Acting in the capacity of a powersports vehicle dealer or owning, operating,
16or controlling, whether directly or indirectly, a powersports vehicle dealership in this
17state.
AB640,7,2318 (b) Owning, operating, or controlling, whether directly or indirectly, a service
19facility in this state for the repair or maintenance of powersports vehicles under the
20manufacturer's new powersports vehicle warranty and extended warranty. This
21paragraph does not prohibit a powersports vehicle manufacturer from owning or
22operating a service facility for the purpose of providing or performing maintenance,
23repair, or service work on powersports vehicles that are owned by the manufacturer.
AB640,7,25 24(4) Use any trade secret obtained from a powersports vehicle dealer to unfairly
25compete with the dealer without the prior written consent of the dealer.
AB640,8,2
1(5) Coerce, threaten, intimidate, or require, either directly or indirectly, a
2powersports vehicle dealer to do any of the following:
AB640,8,63 (a) Accept, buy, or order any powersports vehicle, part, or accessory, or other
4commodity or service not voluntarily ordered or requested, or buy, order, or pay
5anything of value for any item in order to obtain a powersports vehicle, part, or
6accessory, or other commodity that has been voluntarily ordered or requested.
AB640,8,77 (b) Enter into any agreement that violates this section.
AB640,8,118 (c) Order or accept delivery of a powersports vehicle with special features,
9accessories, or equipment not included in the list price of the vehicle as advertised
10by the manufacturer, except features, accessories, or equipment that are voluntarily
11requested or ordered by the dealer or that are required by law.
AB640,8,14 12(6) Require a change in capital structure or means of financing for the
13dealership if the powersports vehicle dealer at all times meets the reasonable,
14written, and uniformly applied capital standards determined by the manufacturer.
AB640,8,18 15(7) Prevent or attempt to prevent a dealer from making reasonable changes in
16the capital structure of a dealership or in the means by which the dealership is
17financed if the powersports vehicle dealer meets the reasonable, written, and
18uniformly applied capital requirements determined by the manufacturer.
AB640,8,20 19(8) Unreasonably require the powersports vehicle dealer to change the location
20of, or require any substantial alterations to, the dealer's place of business.
AB640,8,22 21(9) Fail to hold harmless and indemnify a powersports vehicle dealer against
22losses, including lawsuits and court costs, arising from any of the following:
AB640,9,223 (a) The manufacture or performance of any powersports vehicle, part, or
24accessory if the lawsuit involves representations by the manufacturer on the

1manufacture or performance of a powersports vehicle without negligence on the part
2of the dealer.
AB640,9,43 (b) Damage to merchandise in transit where the manufacturer specifies the
4carrier.
AB640,9,65 (c) The manufacturer's failure to jointly defend product liability suits
6concerning the powersports vehicle, part, or accessory provided to the dealer.
AB640,9,77 (d) Any other act performed by the manufacturer.
AB640,9,9 8(10) Unfairly prevent or attempt to prevent a powersports vehicle dealer from
9receiving reasonable compensation for the value of a powersports vehicle.
AB640,9,13 10(11) Fail to pay to a powersports vehicle dealer, within 60 days after receipt of
11a valid claim, a payment agreed to be made by the manufacturer on grounds that a
12new powersports vehicle or a prior year's model is in the dealer's inventory at the
13time of introduction of new model powersports vehicles.
AB640,9,15 14(12) Deny a powersports vehicle dealer the right of free association with any
15other powersports vehicle dealer for any lawful purpose.
AB640,9,18 16(13) Charge increased prices without having given written notice to the
17powersports vehicle dealer at least 15 days before the effective date of the price
18increase.
AB640,9,20 19(14) Permit factory authorized warranty service to be performed upon
20powersports vehicles or accessories by persons other than their franchised dealers.
AB640,9,23 21(15) Pay less than the amount the powersports vehicle dealer charges its retail
22customers for parts when used to perform similar work less the wholesale cost for the
23furnished part as listed in the manufacturer's current price schedules.
AB640,9,25 24(16) Pay to a powersports vehicle dealer an amount for labor that is less than
25the amount the dealer charges its retail customers for labor.
AB640,10,3
1(17) Require or coerce a powersports vehicle dealer to grant a manufacturer a
2right of first refusal or other preference to purchase the dealer's franchise or place
3of business or both unless there is not another financially qualified purchaser.
AB640,10,4 4(18) Require a powersports vehicle dealer to do any of the following:
AB640,10,65 (a) Accept delivery of a number or percentage of powersports vehicles during
6a specific period related to a sales order.
AB640,10,87 (b) Maintain an inventory in excess of the inventory needed for a period of 90
8days.
AB640,10,119 (c) Purchase unreasonable advertising displays or other materials or
10unreasonably require a powersports vehicle dealer to remodel or renovate existing
11facilities as a prerequisite to receiving a model or series of powersports vehicles.
AB640,10,13 12(19) Require that any arbitration proceeding or legal action between the
13parties takes place in a venue other than this state.
AB640,10,16 14218.62 Penalties and civil actions. (1) Any person who violates s. 218.61
15may be required to forfeit not less than $100 nor more than $1,000 for each separate
16violation.
AB640,10,19 17(2) The department shall investigate violations of this section. The department
18or the department of justice, after consulting with the department, or any district
19attorney, upon informing the department, may on behalf of the state:
AB640,10,2420 (a) Bring an action for temporary or permanent injunctive or other relief for any
21violation of this section. In such an action for injunctive relief, irreparable harm is
22presumed. The court may, upon entry of final judgment, award restitution when
23appropriate to any person suffering loss because of a violation of this section if proof
24of such loss is submitted to the satisfaction of the court.
AB640,11,2
1(b) Bring an action in any court of competent jurisdiction for the penalties
2authorized under sub. (1).
AB640,11,11 3(3) In addition to any other available remedies, any person injured by a
4violation of s. 218.61 may bring a civil action against the person who violated s.
5218.61 for temporary or permanent injunctive relief or for damages or both. Upon
6finding that the defendant is violating or has violated s. 218.61, the court shall enjoin
7the defendant from continuing the violation, regardless of whether the plaintiff has
8suffered actual damages. In any action authorized under this subsection, any person
9who violates s. 218.61 shall be liable for 3 times the amount of actual damages caused
10by the violation and, notwithstanding s. 814.04 (1), the costs of the action, including
11reasonable attorney fees.
AB640, s. 3 12Section 3. Initial applicability.
AB640,11,1413 (1) This act first applies to actions taken, and events occurring, on the effective
14date of this subsection.
AB640, s. 4 15Section 4. Effective date.
AB640,11,1716 (1) This act takes effect on the first day of the 3rd month beginning after
17publication.
AB640,11,1818 (End)
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