2023 - 2024 LEGISLATURE
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2023 SENATE BILL 225
April 14, 2023 - Introduced by Senators TESTIN, HESSELBEIN, FEYEN, SPREITZER and
WANGGAARD, cosponsored by Representatives KRUG, CONSIDINE, CONLEY,
DOYLE, GREEN, JOERS, SCHMIDT and SUBECK. Referred to Committee on
Transportation and Local Government.
1 AN ACT to amend 218.10 (8m), 340.01 (6m), 340.01 (18m), 340.01 (48r), 341.25
2 (1) (i), 348.08 (1) (i) and 348.08 (1) (j); and to create 218.10 (1b), 218.10 (1c),
3 218.10 (1d), 218.10 (1i), 218.10 (1n), 218.10 (1o), 218.10 (1p), 218.10 (1q), 218.10
4 (1t), 218.10 (2), 218.10 (7m), 218.10 (7w), 218.10 (8u), 218.10 (8v), 218.10 (8w),
5 218.10 (10), 218.10 (11), 218.161, 218.162, 218.163, 218.164, 218.165, 218.166,
6 218.167 and 218.17 (1) of the statutes; relating to: recreational vehicle
7 manufacturers, distributors, and dealers, the definition of recreational
8 vehicles, and providing a penalty.
Analysis by the Legislative Reference Bureau
This bill provides additional regulation of recreational vehicle (RV) dealers,
manufacturers, and distributors and expands the definition of recreational vehicle
for purposes of vehicle registration and equipment requirements.
Under current law, RV dealers must be licensed by the Department of
Transportation. An RV dealer license may be denied, suspended, or revoked for a
number of reasons, including failure to comply with licensing requirements,
committing certain types of fraud, or engaging in unconscionable business practices.
In addition, persons who violate the statutes governing RV dealer licensure may be
required to forfeit between $25 and $100 for a first offense and may be fined between
$25 and $100 for a second or subsequent offense within three years.
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SENATE BILL 225
This bill provides additional regulation of RV dealers and regulates various
aspects of the relationship between RV dealers and RV manufacturers or
distributors. Specifically, among other things, the bill does all of the following:
1. Requires a dealer agreement between each RV dealer and the manufacturer
or distributor of the RVs the dealer sells. The bill further specifies certain contents
of the agreement, including an exclusive sales area for each RV dealer.
2. Prohibits RV manufacturers and distributors from terminating or failing to
renew a dealer agreement without good cause. The bill provides criteria that must
be considered when assessing whether good cause exists.
3. Requires an RV manufacturer or distributor to provide notice before
terminating or nonrenewing a dealer agreement and provides that a termination or
nonrenewal must be rescinded upon certain actions by an RV dealer.
4. Provides that an RV dealer may terminate or nonrenew an agreement with
an RV manufacturer upon 30 days' notice.
5. In certain cases, requires an RV manufacturer to repurchase certain
products provided to RV dealers, including new RVs, certain RV accessories, and
certain repair equipment, upon termination of a dealer agreement.
6. Requires an RV manufacturer or distributor to allow an RV dealer to
designate a family member as a successor to its dealer agreement.
7. Specifies obligations with regard to warranty repairs.
8. Provides that DOT may administratively fine any person who violates the
provisions of the bill up to $1,000 for each violation.
Current law defines “recreational vehicle” for purposes of vehicle registration,
vehicle equipment standards and certain other vehicle regulation. This bill modifies
and expands the definition of “recreational vehicle” for these purposes. Among the
changes, “recreational vehicle” is specifically expanded to include a camping trailer
and a “truck camper,” which is defined as “a portable unit that is constructed to
provide temporary living quarters for recreational, camping, or travel use and that
consists of a roof, floor, and sides and that is designed to be loaded onto and unloaded
from the back of a pickup truck.” The vehicles that satisfy the expanded definition
may not be operated on a highway unless registered with DOT and must meet certain
equipment requirements, including requirements related to brakes, safety glass,
and coupling.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
1 SECTION 1. 218.10 (1b) of the statutes is created to read:
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SENATE BILL 225 SECTION 1
1 218.10 (1b) “Area of sales responsibility” means the geographical area agreed
2 to by the dealer and the manufacturer or distributor in a dealer agreement within
3 which the dealer has the exclusive right to display or sell the manufacturer's new
4 recreational vehicles of a particular line-make.
5 SECTION 2. 218.10 (1c) of the statutes is created to read:
6 218.10 (1c) “Camping trailer” means a vehicle with a collapsible or folding
7 structure designed to provide temporary living quarters for recreational, camping,
8 or travel use and to be towed upon a highway by a motor vehicle.
9 SECTION 3. 218.10 (1d) of the statutes is created to read:
10 218.10 (1d) “Component manufacturer” means a person, firm, corporation, or
11 business entity that engages in the manufacturing of components, accessories, or
12 parts used in manufacturing recreational vehicles.
13 SECTION 4. 218.10 (1i) of the statutes is created to read:
14 218.10 (1i) “Dealer agreement” means a written agreement or contract entered
15 into by a dealer and a manufacturer or distributor that fixes the rights and
16 responsibilities of the parties and pursuant to which the dealer sells new
17 recreational vehicles.
18 SECTION 5. 218.10 (1n) of the statutes is created to read:
19 218.10 (1n) “Distributor” means a person, firm, corporation, or business entity
20 that purchases new recreational vehicles for resale to dealers.
21 SECTION 6. 218.10 (1o) of the statutes is created to read:
22 218.10 (1o) “Factory campaign” means an effort on the part of a warrantor to
23 contact recreational vehicle owners or dealers in order to address a part or equipment
24 issue.
25 SECTION 7. 218.10 (1p) of the statutes is created to read:
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SENATE BILL 225 SECTION 7
1 218.10 (1p) “Family member” means an individual's spouse or an individual's
2 child, grandchild, parent, sibling, niece, or nephew or the spouse of any of these.
3 SECTION 8. 218.10 (1q) of the statutes is created to read:
4 218.10 (1q) “Fifth-wheel travel trailer" means a vehicle mounted on wheels
5 that is designed to provide temporary living quarters for recreational, camping, or
6 travel use, that is of a size and weight that a special highway movement permit is
7 not required, and that is designed to be towed by a motor vehicle that contains a
8 towing mechanism that is mounted above or forward of the rear axle of the tow
9 vehicle.
10 SECTION 9. 218.10 (1t) of the statutes is created to read:
11 218.10 (1t) “Line-make” means a specific series of recreational vehicle
12 products, the sale of which may be authorized by a dealer agreement, that satisfies
13 all of the following:
14 (a) Is targeted to a particular market segment, as determined by the decor,
15 features, equipment, size, weight, and price range.
16 (b) Has lengths and interior floor plans that distinguish the series of
17 recreational vehicle products from other series with substantially the same decor,
18 features, equipment, weight, and price.
19 (c) Belongs to a single, distinct classification of recreational vehicle product
20 type having a substantial degree of commonality in the construction of the chassis,
21 frame, and body.
22 SECTION 10. 218.10 (2) of the statutes is created to read:
23 218.10 (2) “Model” is a series of recreational vehicle products identified by a
24 common series trade name or trademark that is a subset of a line-make.
25 SECTION 11. 218.10 (7m) of the statutes is created to read:
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SENATE BILL 225 SECTION 11
1 218.10 (7m) “Park model recreational vehicle” means a recreational vehicle
2 that is all of the following:
3 (a) Designed and marketed as temporary living quarters for recreational,
4 camping, travel, or seasonal use.
5 (b) Not permanently affixed to real property for use as a permanent dwelling.
6 (c) Built on a single chassis mounted on wheels with a gross trailer area not
7 exceeding 400 square feet in the setup mode.
8 (d) Certified by the manufacturer as complying with the ANSI A119.5 Park
9 Model Recreational Vehicle Standard.
10 SECTION 12. 218.10 (7w) of the statutes is created to read:
11 218.10 (7w) “Proprietary part” means any part manufactured by or for and sold
12 exclusively by the manufacturer.
13 SECTION 13. 218.10 (8m) of the statutes is amended to read:
14 218.10 (8m) “Recreational vehicle" has the meaning given in s. 340.01 (48r)
15 means a vehicle that is designed to be towed upon a highway by a motor vehicle, that
16 is equipped and used, or intended to be used, primarily for temporary or recreational
17 human habitation, and that does not exceed 45 feet in length. “Recreational vehicle”
18 includes a camping trailer, fifth-wheel travel trailer, park model recreational
19 vehicle, travel trailer, and truck camper.
20 SECTION 14. 218.10 (8u) of the statutes is created to read:
21 218.10 (8u) “Transient customer” means a customer who is temporarily
22 traveling through a dealer's area of sales responsibility.
23 SECTION 15. 218.10 (8v) of the statutes is created to read:
24 218.10 (8v) “Travel trailer” means a vehicle that is mounted on wheels, that
25 is designed to provide temporary living quarters for recreational, camping, or travel
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SENATE BILL 225 SECTION 15
1 use, and that is of a size or weight that a special highway movement permit is not
2 required when towed by a motor vehicle.
3 SECTION 16. 218.10 (8w) of the statutes is created to read:
4 218.10 (8w) “Truck camper" means a portable unit that is constructed to
5 provide temporary living quarters for recreational, camping, or travel use and that
6 consists of a roof, floor, and sides and that is designed to be loaded onto and unloaded
7 from the back of a pickup truck.
8 SECTION 17. 218.10 (10) of the statutes is created to read:
9 218.10 (10) “Warrantor” means a person, firm, corporation, or business entity
10 that gives a warranty in connection with a new recreational vehicle or parts,
11 accessories, or components of a new recreational vehicle.
12 SECTION 18. 218.10 (11) of the statutes is created to read:
13 218.10 (11) “Warranty” does not include service contracts, mechanical or other
14 insurance, or extended warranties sold for separate consideration by a dealer or
15 other person not controlled by a manufacturer.
16 SECTION 19. 218.161 of the statutes is created to read:
17 218.161 Dealer agreement requirement. (1) A manufacturer or
18 distributor may not sell a new recreational vehicle in this state to or through a dealer
19 without having first entered into a written dealer agreement with a dealer that has
20 been signed by both parties.
21 (2) The manufacturer shall designate the area of sales responsibility
22 exclusively assigned to a dealer in the dealer agreement and may not change the area
23 of sales responsibility or contract with another dealer for sale of the same model or
24 line-make, as specified in the agreement, in the designated area of sales
25 responsibility during the duration of the agreement.
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SENATE BILL 225 SECTION 19
1 (3) The terms of the dealer agreement, including the area of sales
2 responsibility, may not be reviewed or changed during the duration of the dealer
3 agreement without the written mutual consent of the parties. The duration of the
4 dealer agreement shall be stated in the dealer agreement.
5 (4) A dealer may not sell a new recreational vehicle in this state without having
6 first entered into a dealer agreement with a manufacturer or distributor and may not
7 sell outside the area of sales responsibility designated in the agreement under sub.
8 (2).
9 (5) A manufacturer may not unilaterally issue a policy or procedure that
10 violates or substantially alters a provision of the dealer agreement during the
11 duration of the agreement.
12 (6) A manufacturer shall distribute new recreational vehicles to its dealers in
13 a fair and equitable manner. If requested, a manufacturer shall provide information
14 on its manner of distribution.
15 (7) A manufacturer shall provide its dealer with adequate technical data to
16 perform proper service and repairs.
17 SECTION 20. 218.162 of the statutes is created to read:
18 218.162 Termination of dealer agreement. (1) (a) A manufacturer or
19 distributor, directly or through any officer, agent, or employee, may terminate,
20 cancel, or fail to renew a model, line-make, or entire dealer agreement only with good
21 cause, and, upon renewal, may not require additional inventory stocking
22 requirements or increased retail sales targets in excess of the market growth in the
23 dealer's area of sales responsibility.
24 (b) A manufacturer or distributor has the burden of showing good cause for
25 terminating, canceling, or failing to renew a model, line-make, or dealer agreement
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SENATE BILL 225 SECTION 20
1 with a dealer. For purposes of determining whether there is good cause for the
2 proposed action, any of the following factors may be considered:
3 1. The extent of the affected dealer's penetration in the relevant market area
4 for the relevant model or line-make.
5 2. The nature and extent of the dealer's investment in its business.
6 3. The adequacy of the dealer's service facilities, equipment, parts, supplies,
7 and personnel.
8 4. The effect of the proposed action on the community.
9 5. The extent and quality of the dealer's service under recreational vehicle
10 warranties.
11 6. The failure to follow agreed-upon, reasonable procedures or standards
12 related to the overall operation of the dealership consistent with the law and the
13 dealer agreement.
14 7. The dealer's performance under the terms of its dealer agreement.
15 (c) 1. Except as provided in this paragraph, a manufacturer or distributor shall
16 provide a dealer with at least 120 days' prior written notice of termination,
17 cancellation, or nonrenewal of a model, line-make, or entire dealer agreement.
18 2. The notice under subd. 1. shall state all reasons for the proposed termination,
19 cancellation, or nonrenewal and shall state that if, within 30 days following receipt
20 of the notice, the dealer provides to the manufacturer or distributor a written notice
21 of intent to cure all claimed deficiencies, the dealer will then have 120 days following
22 receipt of the notice to rectify the deficiencies. If the deficiencies are rectified within
23 120 days, the manufacturer's or distributor's notice is voided. If the dealer fails to
24 provide the notice of intent to cure the deficiencies in the prescribed period, the
25 termination, cancellation, or nonrenewal takes effect 30 days after the dealer's
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SENATE BILL 225 SECTION 20
1 receipt of the notice unless the dealer has new and untitled inventory on hand that
2 may be disposed of as p