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SB658,1,6 1An Act to renumber and amend 341.51 (2), 341.55 (1) and 341.55 (2); to amend
2218.0114 (5) (c) and 340.01 (74t); and to create 218.0116 (1) (ns), 341.47 (1) (e)
3and 341.51 (2) (c) of the statutes; relating to: motor vehicle dealer and
4wholesaler facilities and licensure requirements, certain registration plates
5issued to motor vehicle dealers, distributors, or manufacturers, and creating
6and modifying administrative rules.
Analysis by the Legislative Reference Bureau
This bill makes several changes to the statutes and administrative code
provisions governing motor vehicle dealers and wholesalers. In particular, the bill
does the following:
1. Under current law, a motor vehicle wholesaler or an applicant for a motor
vehicle wholesaler license must provide and maintain in force a bond or irrevocable
letter of credit of not less than $25,000. The bill increases that amount to $50,000.
2. Under current law, manufacturers, importers, distributors, and dealers of
motor vehicles must be licensed by the Department of Transportation. A licensee
may have its license revoked if the licensee takes certain actions that have been
enumerated as violations. Under current law, one such violation is the willful failure
to provide and maintain certain facilities and business records. DOT has
promulgated rules providing specific requirements related to what types of facilities
must be maintained and what and how records must be maintained.

The bill modifies some of these administrative rules related to facilities and
records and imposes additional requirements, including:
a. Requiring dealers to maintain a facility that is heated and electrified.
b. Specifying that dealers' vehicle display lots must be not less than 9 feet by
18 feet.
c. Prohibiting more than five dealers or wholesalers from sharing a single
building.
d. Requiring dealers to have an office of not less than 8 feet by 8 feet with a door,
walls, lighting, and certain furnishings.
e. For shared facilities, requiring dealers and wholesalers to have a designated
vehicle display lot of not less than 9 feet by 18 feet.
3. The bill creates a new license violation for a licensee's failure to have the
required facilities staffed and open to the public for a reasonable number of hours
each week. The bill also creates an administrative rule requiring dealers,
wholesalers, and auction dealers to establish weekly business hours and providing
minimum weekly hours.
4. Under current law, a dealer, distributor, manufacturer, or transporter of
certain vehicles (registrant) who registers with DOT may be issued registration
plates, in lieu of regular registration plates, for use on vehicles that are owned or
repossessed by a registrant and that are being offered for sale; are in transit from the
factory to a distributor or dealer or from the dealer to the purchaser; are being used
by a manufacturer primarily for trial tests; are being repossessed; are being
reconditioned for resale; or are being foreclosed or resold.
Under the bill, such a registration plate may also be used for a vehicle that is
being operated by a wholesaler from its point of purchase to its point of sale or to a
dealer's business facility.
5. Currently, upon registration, DOT provides two registration plates to a
registrant, and a registrant may receive additional plates upon payment of a $5 fee.
Under the bill, DOT may deny a request for additional plates if a registrant has been
previously issued at least 10 plates.
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:
SB658,1 1Section 1. 218.0114 (5) (c) of the statutes is amended to read:
SB658,3,22 218.0114 (5) (c) A wholesaler or a wholesale dealer or an applicant for a
3wholesaler or wholesale dealer license shall provide and maintain in force a bond or
4irrevocable letter of credit of not less than $25,000 $50,000. The bond or letter of
5credit shall be executed in the name of the department of transportation for the

1benefit of any person who sustains a loss because of an act or omission by the
2wholesaler or wholesale dealer.
SB658,2 3Section 2. 218.0116 (1) (ns) of the statutes is created to read:
SB658,3,54 218.0116 (1) (ns) Failure to have the facilities required under sub. (3) (a) staffed
5and open to the public for a reasonable number of hours each week.
SB658,3 6Section 3. 340.01 (74t) of the statutes is amended to read:
SB658,3,77 340.01 (74t) “Wholesaler" has the meaning given in s. 218.0101 (6) (38).
SB658,4 8Section 4. 341.47 (1) (e) of the statutes is created to read:
SB658,3,109 341.47 (1) (e) Is being operated by a wholesaler from its point of purchase to
10its point of sale or to a dealer's business facility.
SB658,5 11Section 5. 341.51 (2) of the statutes is renumbered 341.51 (2) (a) and amended
12to read:
SB658,3,1513 341.51 (2) (a) Upon registering a dealer, distributor, manufacturer, or
14transporter, the department also shall issue 2 registration plates to the registrant.
15The department, upon receiving a fee of $5 for each additional plate desired by a
SB658,3,23 16(b) A dealer, distributor, or manufacturer of motor vehicles, trailers or,
17semitrailers, $5 for each additional plate desired by a dealer, distributor or
18manufacturer of recreational vehicles and $5 for each additional plate desired by a
19transporter,
or recreational vehicles or a transporter of vehicles may request the
20issuance of registration plates in addition to those issued under par. (a). Except as
21provided in par. (c), upon request and payment of a $5 fee for each additional plate,
22the department
shall issue to the registered dealer, distributor, manufacturer or
23transporter
the additional plates as ordered to the requester.
SB658,4,3
1(d) The department may charge a fee of $2 per plate equal to the fee provided
2in s. 341.16 (1) (a)
for replacing a lost, damaged, or illegible plates plate issued under
3this subsection.
SB658,6 4Section 6. 341.51 (2) (c) of the statutes is created to read:
SB658,4,105 341.51 (2) (c) If a dealer, distributor, or manufacturer of motor vehicles,
6trailers, semitrailers, or recreational vehicles or a transporter of vehicles has been
7issued at least 10 registration plates under this subsection, the department may
8approve or deny any request by that requester for additional registration plates. The
9department may establish criteria for approving or denying requests under this
10paragraph.
SB658,7 11Section 7. 341.55 (1) of the statutes is renumbered 341.55 (1) (intro.) and
12amended to read:
SB658,4,1713 341.55 (1) (intro.) A dealer, distributor, or manufacturer or an employee of any
14of them
a dealer, distributor, or manufacturer who operates or consents to the
15operation of a vehicle under purported authority of a registration plate issued to the
16dealer, distributor, or manufacturer pursuant to under s. 341.51 when such if any of
17the following applies:
SB658,4,20 18(a) The vehicle is not owned or being repossessed by, or consigned for sale to,
19the dealer, distributor, or manufacturer or, even though owned or being repossessed
20by, or consigned for sale to, the dealer, distributor or manufacturer,
.
SB658,4,22 21(b) The operation of the vehicle does not come within any of the exceptions listed
22in
satisfy the requirements of s. 341.47 (1) (a) to (d) or is not in compliance with.
SB658,4,24 23(c) If s. 341.51 (2m) applies, the operation of the vehicle does not satisfy the
24requirements of
s. 341.51 (2m);.
SB658,8
1Section 8. 341.55 (2) of the statutes is renumbered 341.55 (2) (intro.) and
2amended to read:
SB658,5,53 341.55 (2) (intro.) Any Subject to sub. (1), a person who operates a vehicle under
4purported authority of a registration plate issued to a dealer, distributor, or
5manufacturer under s. 341.51, knowing that the any of the following applies:
SB658,5,7 6(a) The vehicle is not owned or being repossessed by, or consigned for sale to,
7a dealer, distributor, or manufacturer or.
SB658,5,9 8(b) The operation of the vehicle does not come within any of the exceptions listed
9in
satisfy the requirements of s. 341.47 (1) (a) to (d) or is.
SB658,5,11 10(c) If s. 341.51 (2m) applies, the operation of the vehicle does not in compliance
11with
satisfy the requirements of s. 341.51 (2m);.
SB658,9 12Section 9. Trans 138.03 (1) (a) (intro.) of the administrative code is amended
13to read:
SB658,5,1514 Trans 138.03 (1) (a) (intro.) A permanent building in this state wherein there
15are
that is heated and electrified and that contains facilities for all of the following:
SB658,10 16Section 10. Trans 138.03 (1) (a) 1. of the administrative code is amended to
17read:
SB658,5,2118 Trans 138.03 (1) (a) 1. A business office to maintain the books, records, and files
19necessary to conduct business. A business office under this subdivision shall be not
20less than 8 feet by 8 feet with a door, shall have not fewer than 4 rigid walls, and shall
21be furnished with a desk, lighting, and a locking filing cabinet.
SB658,11 22Section 11. Trans 138.03 (1) (b) of the administrative code is amended to read:
SB658,5,2523 Trans 138.03 (1) (b) A vehicle display lot of not less than 9 feet by 18 feet
24adjacent to the business office, unless all vehicles offered for sale are displayed
25within the business building.
SB658,12
1Section 12. Trans 138.03 (3) (intro.) of the administrative code is renumbered
2Trans 138.03 (3) (ag) and amended to read:
SB658,6,53 Trans 138.03 (3) (ag) More Not more than one five motor vehicle dealer dealers,
4wholesaler wholesalers, or other business businesses may share a single permanent
5building.
SB658,13 6Section 13. Trans 138.03 (3) (a) of the administrative code is renumbered
7Trans 138.03 (3) (am), and Trans 138.03 (3) (am) 2. and 3., as renumbered, are
8amended to read:
SB658,6,119 Trans 138.03 (3) (am) 2. Separate Have its own designated vehicle display lot
10of not less than 9 feet by 18 feet separate from areas vehicle display lots used by other
11licensees; and.
SB658,6,1612 3. With each license application, provide a copy of the lease agreement between
13the owner of the property and the dealer along with a diagram of the facilities for the
14designated location. If the dealer sublets the facilities from a lessee, that dealer shall
15provide a copy of the sublease and a copy of the lease authorizing the lessee to execute
16subleases.
SB658,14 17Section 14. Trans 138.03 (3) (b) of the administrative code is amended to read:
SB658,6,2218 Trans 138.03 (3) (b) Each licensee sharing a permanent building with another
19licensee shall satisfy all of the requirements of par. (a) (am) within 1 year 6 months
20after July 1, 1991 or the the effective date of this paragraph .... [LRB inserts date].
21The
license for each noncomplying dealership licensee may be denied or suspended
22until the dealership facilities comply with this section.
SB658,15 23Section 15. Trans 138.03 (3) (c) of the administrative code is repealed.
SB658,16 24Section 16. Trans 138.04 (3) (intro.) of the administrative code is amended to
25read:
SB658,7,18
1Trans 138.04 (3) (intro.) Retention requirements. The used vehicle
2information described in sub. (1) (f) shall be maintained for a period of 5 years, as
3required by s. 342.16, Stats., and all other required records shall be maintained for
4a period of 5 years from the date of sale, including copies of factory invoices, dealer
5reassignment forms, consignment agreements, purchase contracts, MV1 or MV11
6Wisconsin title, registration, or license plate applications, Wisconsin buyers guides,
7regular and conforming power of attorney forms, prior owner odometer disclosure
8statements, dealer's subsequent odometer disclosure statements, lessor's notices to
9lessees relating to odometer disclosure required at end of lease, and lessee's odometer
10disclosure statement completed at end of lease. The records shall be kept in the place
11of business during the business hours indicated on the sign required under s. Trans
12138.06 (2)
and shall be retrievable by an employee of the licensee and open to
13inspection and copying by a representative of the department during reasonable
14business hours. Multi-location dealerships may keep records at a single location.
15If the location is out of state, the dealerships shall reimburse the department for
16actual and necessary expenses, plus wages pursuant to the appropriate state
17compensation plan or applicable labor agreement for examining the documents at
18that location. The actual and necessary expenses charged include the following:
SB658,17 19Section 17. Trans 138.045 of the administrative code is created to read:
SB658,7,21 20Trans 138.045 Hours of operation. (1) Motor vehicle dealers shall establish
21weekly business hours, including at least 4 consecutive hours, 2 days per week.
SB658,7,23 22(2) Motor vehicle wholesalers shall establish weekly business hours, including
23at least 4 consecutive hours, one day per week.
SB658,7,25 24(3) Motor vehicle auction dealers shall establish weekly business hours,
25including at least 6 consecutive hours, one day per week.
SB658,18
1Section 18. Trans 138.06 (2) of the administrative code is amended to read:
SB658,8,32 Trans 138.06 (2) A sign posted on or adjacent to the entrance door describing
3the dealer's business hours, as established under s. Trans 138.045.
SB658,19 4Section 19. Effective dates. This act takes effect on the day after publication,
5except as follows:
SB658,8,66 (1) The treatment of administrative rules takes effect as provided in s. 227.265.
SB658,8,77 (End)
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