Wisconsin Legislature: Trans 128.10(2)(f)

5. The vehicle is an abandoned vehicle that was or is being disposed of by a duly authorized municipal or county representative under s. 342.40 (2), Stats.

6. The vehicle is sold under s. 779.48 (2), Stats., to enforce a towing or storage lien under s. 779.415, Stats., a garage or livery lien granted by s. 779.43 (3), Stats., or a mechanics lien granted by s. 779.41, Stats.

7. The vehicle is sold to enforce a landlord storage lien under s. 704.05 (5), Stats.

8. Transfer of title to the vehicle is ordered by a court, or a court declares a person to be the vehicle owner.

9. Any other situation in which the interest of an owner in a vehicle passes to a different person other than by voluntary transfer.

Note: A person attempting to register a vehicle that is subject to suspension for an unpaid citation may be subject to the forfeiture in s. 341.04 (2), Stats. Making a knowingly false statement on an application for title is a Class H felony. s. 342.06 (2), Stats. Making a false statement on an application for a duplicate title or license or to induce any other action by the department subjects a person to a forfeiture of up to $500. s. 345.17 (2), Stats.

(4) Requests for additional information. The department may request information sufficient to make a determination as to the applicability of the exceptions specified in sub. (3) from a purchaser and may withhold issuance of title and registration pending receipt of that information.

Note: Section 342.12 (2), Stats., permits withholding of title where ownership is unclear.

(5) Application disposition when transfer of ownership refused.

(a) When the department refuses to allow a transfer of ownership under s. 341.63 (1) (c), Stats., because of unpaid citations, and a transfer of ownership is determined not to have been made in good faith or in order to defeat the purpose of the TVRP case under sub. (2), the department may do any of the following:

1. Create a new title, without charge, in the name of the seller and send it to the seller with a letter explaining why the transfer of ownership was refused.

2. Return to the purchaser all fees submitted by the purchaser with an explanation why the transfer of ownership was refused. If proof of registration was issued in error, the fees may be returned only after the purchaser complies with a department request for return of that proof of registration.

3. Notify by letter any secured party shown on the purchaser’s application for transfer of ownership that transfer of ownership was refused.

(b) The decision to refuse registration under this section is reviewable. All decisions shall include the reason transfer of title was denied and include the following notice or a similar writing providing notice of the person’s right to a hearing:

RIGHT TO A HEARING: s. 342.26, Stats., provides you a right to a hearing on this order to decline to issue a title before the Division of Hearings and Appeals as a Ch. 227 Contested Case.
You may request a hearing by filing a written appeal within 30 days of the date of this order with the Division of Hearings and Appeals, 5005 University Avenue, Room 201, Madison, WI 53705.
All appeals must include the name and address of the appellant, a description of the action that is being contested, the effective date of the action, a copy of this order if possible, a concise statement of the reasons for objecting to the action, the type of relief the appellant is seeking, the name and address of any person who may be expected to appear on behalf of the appellant, and the request for a hearing. s. HA 1.04 (2).

Note: s. HA 1.04 (1) imposes the 30-day time limit for appeals.

History: CR 07-065: cr. Register December 2007 No. 624, eff. 1-1-08.

Trans 128.10 Effect of bankruptcy on vehicle registration.

(1) Bankruptcy that precedes TVRP suspension. In any case in which the department is notified of a pending bankruptcy proceeding and applicability of a stay under 11 USC 362, the department shall release any registration suspension imposed under this chapter affecting the vehicle registration of the debtor. The authority may not refile its notice of unpaid judgment, citation or towing and storage charges associated with a parking citation until the stay is no longer in effect.

Note: The co-debtor stay under 11 USC 1301 applies only to consumer debt. Fines, forfeitures, and towing and storage charges associated with parking citations are not consumer debt. Therefore the co-debtor stay of 11 USC 1301 does not impact TVRP cases involving a non-bankrupt person who is liable with a bankruptcy person.

(2) Effect on vehicle registration.

(a) Reinstatement. A vehicle owner whose vehicle registration is suspended or subject to refusal under this chapter who files a petition in bankruptcy, and from whom collection of a pre-bankruptcy debt arising prior to the filing of the petition is stayed under 11 USC 362, may reinstate his or her vehicle registration. The person shall be subject to all the same reinstatement, filing and fee requirements as any other person seeking registration reinstatement following a registration refusal or suspension.

Note: Liability for forfeitures is not “consumer debt” under 11 USC 101 (8). Therefore, Ch. 13 co-debtor stay does not prohibit collection against non-bankrupt persons who are liable on a debt with a bankrupt person.

(b) Release of suspension ordered in violation of automatic stay. If the department is notified that a stay prohibiting action against a debtor under 11 USC 362 was in effect at the time the department suspended a debtor’s vehicle registration under this chapter, the department shall reinstate the bankruptcy debtor’s vehicle registration without any reinstatement fee.

(c) Reimposition of suspension. The department may suspend or refuse a debtor’s vehicle registration that was released under sub. (1) or this subsection upon a subsequent TVRP case filing by a suspending authority. Such a filing shall be deemed a representation by the authority that the debt described in the filing was not discharged or satisfied within the bankruptcy proceeding and that no bankruptcy stay is in effect.

Note: While forfeitures are not generally dischargeable under 11 USC 523 (a) (8), towing and storage charges would ordinarily be discharged in a bankruptcy proceeding. Authorities and delegated agencies are encouraged to consider each type of debt separately in deciding whether to order the department to suspend or refuse registration.

(d) Proof. The department may require satisfactory proof that a registrant’s debts from a forfeiture or towing and storage charges associated with a parking citation have been discharged in a bankruptcy proceeding in any case where a debtor seeks to reinstate a vehicle registration after the bankruptcy case is closed or dismissed, a discharge has been granted, the automatic stay has been lifted, terminated, annulled or modified, or a suspending authority has filed a subsequent notice under par. (c). Acceptable proof may include copies of the schedules for the bankruptcy case listing the suspending authority as a claimant in the bankruptcy, proof of the filing date, such as the notice of bankruptcy filing mailed by the bankruptcy court or a copy of the petition containing the clerk’s file stamp showing the date the petition was filed, and an affidavit that the debt is dischargeable under the United States bankruptcy code and has been discharged.

Note: Forfeitures and fine debts are not dischargeable in Ch. 7 bankruptcies. 23 USC 527 (a) (7). Criminal fines are not dischargeable in Ch. 13 bankruptcies either. 23 USC 1328 (a) (3).

(e) Disputes. In any case where a debtor registrant and a suspending authority dispute whether a discharge has affected debt for which registration refusal or suspension is requested, or in any case where a debtor registrant claims a forfeiture was discharged in a ch. 7 bankruptcy or a criminal fine was discharged in any bankruptcy proceeding, the department may require one or both parties to obtain a court order that decides whether the debt is discharged.

(f) Court determinations. The department shall accept court findings or orders regarding discharge of a claim in an action between the registrant and the suspending authority as determinative, and may impose or release a registration suspension or refusal in accordance with the determination of the court.

Note: While the Department does not have authority to require debtors to provide a certain type of notice of bankruptcy filing to it under federal law, debtors who are subject vehicle registration suspensions under s. 345.28 (4) (a) 2., Stats., will find that the Department’s reaction to a bankruptcy filing is faster and more predictable under this section if the Department is listed on the mailing matrix for the proceeding with an address of Wisconsin Department of Transportation, Uninsured Motorists Unit, P.O. Box 7919, Madison, WI 53707-7919.

(3) Voluntary proceedings by wage earners for amortization of debts. The department may not release a registration refusal or suspension based solely upon a court order entered under s. 128.21, Stats.

Note: Voluntary wage earner proceedings affect only executions, attachments or garnishments, and do not affect suspensions of vehicle registration. s. 128.21 (1), Stats.

History: CR 07-065: cr. Register December 2007 No. 624, eff. 1-1-08.

Trans 128.11 Renewal forms for vehicle registration.

(1) Record keeping. The department is not required to keep copies of renewal notices nor to maintain any record of evidence of mailing renewal notices or of renewal notices that are returned to the department or its agent as undeliverable by the U.S. postal service.

(2) Renewal notice not provided. The department is not required to create or mail a vehicle registration renewal notice to a registrant if any of the following apply:

(a) The registration is suspended under s. 20.905 (2), 341.63 (1), 344.08 or 344.14, Stats.

(b) The registration is revoked under s. 344.25, Stats.

(d) The vehicle was not registered in the preceding registration period.

Note: If a person did not register a vehicle during the last registration period (lengths of these periods vary by vehicle type), the department assumes the vehicle does not need to be registered because it was sold, scrapped, or moved to another state.

History: CR 07-065: cr. Register December 2007 No. 624, eff. 1-1-08.

Trans 128.12 Resolution of errors.

(1) Errors identified by person.

(a) If a person notifies the department that a department error has resulted in suspension or refusal of a vehicle’s registration, the department shall review its records related to the suspension and conduct such additional investigations as it deems appropriate. If the department concludes as a result of the review and any investigation that refusal or suspension of registration is unwarranted, the department shall modify its records and allow registration for the vehicles to be issued.

(b) If the department does not modify its records and allow registration to be issued under sub. (2), the department shall direct the person to contact the suspending authority that submitted the order for registration refusal or suspension to the department and have it investigate the matter and, if appropriate, submit a notice of satisfaction to the department in the manner described in s. Trans 128.04 (5).

(2) Error identified by suspending authority. To correct an error in a notice of unpaid judgment, unpaid citation or unpaid towing and storage charges associated with a parking citation sent to the department, a suspending authority shall submit a notice of satisfaction to the department as described in s. Trans 128.04 (5). To establish a correct record, the suspending authority shall submit a new notice of unpaid judgment, unpaid citation or unpaid towing and storage charges associated with a parking citation containing the correct information and fee required by s. Trans 128.05 (13).

History: CR 07-065: cr. Register December 2007 No. 624, eff. 1-1-08.

Trans 128.13 Cost of traffic violation and registration program.

(1) General. In accordance with s. 85.13, Stats., the department shall charge the cost of the development and operation of the traffic violation and registration program to all participating local units of government or other authorities based on the number of cases processed on their behalf.

(2) Development cost amortization.

(a) The cost of development of systems for the traffic violation and registration program shall be amortized over the 4-year period following implementation of those systems.

(b) The cost of enhancements, improvements or additional development of the system shall be amortized over the 4-year period following the implementation of such enhancements, improvements or additional development.

(3) Rate of payment.

(a) The department shall establish the rate of payment required for each TVRP case submitted by a suspending authority based on the following factors:

1. The estimated annual volume of cases that will be processed by the department as calculated under ss. Trans 128.04 (2) to (5) and 128.14 which serves as the denominator in the rate calculation equation.

2. The estimated cost of operation, including employee salaries and fringe benefits, office space, office supplies and equipment, postage, computer charges, printing and forms, the annual amount of amortized enhancement, as described in sub. (2), any deficit from prior fiscal periods, and other necessary expenses which serves as the numerator in the rate calculation equation.

(b) The rate of payment may be recalculated from time to time to reflect the costs of the program to the department. Rate increases, if any, may be imposed only on or after the next July 1 following the recalculation.

(c) The department shall notify all participants of the rate of payment at least 30 days prior to the effective date of the rate.

(4) Method of payment. Participants shall pay the department for cases processed by one of the following methods:

(a) Payment at the time the notice of unpaid judgment is submitted by a court to the department for processing.

(b) Payment at the time the notice of unpaid citation or unpaid towing and storage charges associated with a parking citation is submitted by an authority or delegated agency to the department for processing.

(c) Pre–payment by establishing an account with the department against which charges shall be made at the time any of the following occur:

1. Notice of unpaid judgment is processed for the local unit of government or other authority identified by a court on the notice of unpaid judgment form.

2. Notice of unpaid citation or unpaid towing and storage charges associated with a parking citation is processed for the authority or delegated agency of the local unit of government.

(d) Automatic debit of the participants banking account through the automated clearing house, or ACH, transaction system of the federal reserve bank.

(5) Accounting report. The department shall provide to each active participant a monthly report on the status of their financial account established under sub. (4) (c).

(6) Refunds. When a participating local unit of government or other authority has elected to pay under sub. (4) (c), and later terminates participation as provided in s. Trans 128.03, any unused balance in the account shall be refunded by the department. An authority may request a refund of an unused balance under sub. (4) (c) at any time, but must elect another means of payment as a condition of continued participation in the program.

History: CR 07-065: cr. Register December 2007 No. 624, eff. 1-1-08.

Trans 128.14 Electronic notification of unpaid judgments, citations or towing and storage charges.

(1) Agreement. A suspending authority may enter into an agreement with the department to provide for electronic reporting of unpaid judgments, citations, or towing and storage charges associated with a parking citation.

(2) Consolidated reporting. A suspending authority that has entered into an agreement under sub. (1) may report multiple unpaid judgments applicable to a single person, or multiple citations or towing and storage charges associated with a parking citation that are applicable to a single vehicle or registration number in one consolidated report, provided that the suspending authority maintains a mechanism by which persons may determine the court case number, citation number, amount due and other identifying information related to unpaid judgments, citations, or towing and storage charges associated with a parking citation by contacting the suspending authority and providing the TVRP suspension number or the registration number of any vehicle affected. A consolidated report is composed of a discrete set of unpaid judgments, citations or towing and storage charges associated with a parking citation. After submitting the report to the department, an authority may not subsequently add unpaid judgments, citations or towing and storage charges associated with a parking citation to a consolidated report TVRP case.

Note: This provision does not prohibit the filing of a separate TVRP suspension report that includes a debt not listed in a prior report.

(3) Reporting requirements. Electronic notification reports submitted under this section shall be completed in the manner directed by the department and contain all information required by the department.

(4) Processing. The department may reject any electronic notification that does not meet the requirements of sub. (3).

(5) Records. The department may remove all records of unpaid judgments, citations or towing and storage charges associated with a parking citation reported under this section from the department’s records 6 years after the date of entry into the department’s records. Nothing herein shall prohibit a suspending authority from refiling notices of unpaid judgments, citations or towing and storage charges associated with a parking citation following removal from department records if they remain unpaid. The fee required by s. Trans 128.13 shall be payable for each refiled judgment, citation or towing and storage charge associated with a parking citation.

(6) Notice to vehicle owner. A registration renewal notice sent to a person for a vehicle that is subject to a suspension issued following notice provided under this section shall include the TVRP suspension number for the citations, judgments or towing and storage charges associated with a parking citation for each TVRP case and the contact information for the suspending authority that filed the notice with the department. The department may include other information in the notice at its discretion.

History: CR 07-065: cr. Register December 2007 No. 624, eff. 1-1-08.

Trans 128.15 Control group testing. The department may decline to issue any notice required by this chapter, or amend a notice to exclude information otherwise required under s. Trans 128.04, for the purpose of testing the effectiveness of such notice. Any such pilot program shall be limited to a defined portion of the vehicles registered in this state. The study shall be limited to 2 years in duration, but may be extended an additional 2 years upon the introduction of legislation or administrative rules to extend the pilot to vehicles not within the scope of the pilot.

History: CR 07-065: cr. Register December 2007 No. 624, eff. 1-1-08.