Chapter Trans 138

Trans 138.09(1) (1) Suspension.

Trans 138.09(1)(a) (a) No motor vehicle dealer may sell, offer to sell, or buy vehicles while the dealer’s license is suspended.

Trans 138.09(1)(b) (b) A motor vehicle dealer also engaged in business activities on the same premises which do not require a license issued by the department, such as the sale of motor vehicle accessories or repair of motor vehicles, may continue to conduct this unlicensed business while the dealer’s license is suspended. However, if such activities are conducted within the indoor facilities the dealer ordinarily uses to display motor vehicles offered for sale or lease with an option of purchase, then during the suspension all motor vehicles offered for sale or lease shall either be removed from those facilities or moved to a location in those facilities not accessible to consumers.

Trans 138.09(1)(c) (c) No licensed salesperson may be present at the dealership during the period of suspension, without the written permission of the department. The department may not grant permission unless the particular conditions of the salesperson’s employment require the salesperson’s presence to perform duties unrelated to the activities regulated by the department under ch. 218, Stats.

Trans 138.09(2) (2) Denial.

Trans 138.09(2)(a) (a) Except as provided in par. (b), no person whose application for an initial motor vehicle dealer license has been denied may do business as a motor vehicle dealer.

Trans 138.09(2)(b) (b) If the applicant held a valid license in the previous license year, the applicant may continue to do business after the applicant’s application has been denied, as authorized under s. 227.51 (2), Stats., provided the applicant meets all of the following requirements:

Trans 138.09(2)(b)1. 1. At the time of the license application, the applicant was a motor vehicle dealer whose motor vehicle dealer license had neither expired nor been revoked.

Trans 138.09(2)(b)2. 2. The applicant applied for an identical license for the same dealership and was denied.

Trans 138.09(2)(b)3. 3. The applicant requested a hearing to review the license denial within 30 days of the department’s denial.

Trans 138.09(2)(b)4. 4. The applicant paid all fees required for issuance of dealer registration plates for the new licensing period.

Trans 138.09(2)(b)5. 5. The applicant satisfied all of the requirements of s. 227.51 (2), Stats.

Trans 138.09(2)(c) (c) The department shall provide an applicant to whom par. (b) applies with dealer registration plates, salesperson licenses and a license for the dealership. The validity of all such licenses is conditional, pending the outcome of the review of the license denial. In the event the review by the division of hearings and appeals affirms the license denial, the dealer shall collect and surrender to the department all registration plates, salesperson licenses and the dealer license issued under this paragraph. Salesperson licenses shall be surrendered immediately. Registration plates and the dealer license shall be surrendered within 30 days.

Trans 138.09(2)(d) (d) The department may, upon request, permit an existing motor vehicle dealer continuously licensed during the preceding year, whose application for a license during the next license period is denied, up to 30 days to sell the motor vehicles in the dealer’s possession at the time of the denial, provided:

Trans 138.09(2)(d)1. 1. The dealer agrees to observe all special conditions imposed by the department.

Trans 138.09(2)(d)2. 2. The dealer’s request is received by the department within 7 days of the date when the denial takes place and includes a list of all motor vehicles in the dealer’s possession, including the vehicle identification number of each vehicle.

Trans 138.09(2)(d)3. 3. The dealer physically possesses the title certificate for each vehicle to be offered for sale.

Trans 138.09(2)(d)4. 4. Unless par. (b) applies, a dealer whose license has been denied may not offer, sell or lease with an option of purchase any motor vehicles to retail buyers and may not buy any vehicles, or accept motor vehicle trade-ins or consignments, during the 30-day period.

Trans 138.09(2)(d)5. 5. The 30-day period begins on the date of the department’s letter denying the license. However, if par. (b) applies, the 30-day period begins on the date of the order of the division of hearings and appeals affirming the department’s denial of the license.

Trans 138.09(3) (3) Revocation.

Trans 138.09(3)(a) (a) Except as provided in par. (b), no person whose motor vehicle dealer license has been revoked may do business as a motor vehicle dealer after the effective date of the revocation.

Trans 138.09(3)(b) (b) Unless prohibited by the order of revocation, the department may, upon request, allow a motor vehicle dealer whose license is revoked an extension period, up to 30 days beyond the otherwise effective date of the revocation, to sell the motor vehicles in the dealer’s possession at the time of the revocation, provided:

Trans 138.09(3)(b)1. 1. The dealer agrees to observe all special conditions imposed by the department.

Trans 138.09(3)(b)2. 2. The dealer’s request includes a list of all motor vehicles in the dealer’s possession including the vehicle identification number of each.

Trans 138.09(3)(b)3. 3. The dealer physically possesses the title certificate for each vehicle to be offered for sale.

Trans 138.09(3)(b)4. 4. The request is made prior to the effective date of the revocation.

Trans 138.09(3)(b)5. 5. The dealer does not offer, sell or lease with an option to purchase motor vehicles to retail buyers and does not buy any vehicles or accept motor vehicle trade-ins or consignments.

Trans 138.09(4) (4) Voluntary surrender. The department may permit a motor vehicle dealer up to 30 days to sell motor vehicles in the dealer’s possession at the time the dealer voluntarily surrenders his or her license, provided:

Trans 138.09(4)(a) (a) The dealer agrees to observe all special conditions imposed by the department.

Trans 138.09(4)(b) (b) The dealer provides the department a list of all motor vehicles in the dealer’s possession, including their vehicle identification numbers, within 7 days of the date when the license is received by the department.

Trans 138.09(4)(c) (c) The dealer physically possesses the title certificate for each vehicle to be offered for sale.

Trans 138.09(4)(d) (d) The dealer does not offer, sell, or lease with an option to purchase vehicles to retail buyers and may not buy any vehicles, or accept motor vehicle trade-ins or consignments, during the 30-day period.

Trans 138.09(4)(e) (e) The 30-day period begins on the date the department receives the license or the list of vehicles in the dealer’s possession, whichever is later.

Trans 138.09 History History: Cr. Register, June, 1991, No. 426, eff. 7-1-91; am. (2) (c) and (d) 5., Register, January, 1996, No. 481, eff. 2-1-96; CR 22-048: am. (1), (2) (b) (intro.), (d) 2., (3) (b) 2., (4) (b) Register July 2023 No. 811, eff. 8-1-23.