EVM:emw
2021 - 2022 LEGISLATURE
2021 Senate BILL 658
October 26, 2021 - Introduced by Senators Petrowski, Cowles, Pfaff, Ringhand,
Wanggaard, Roth and Ballweg, cosponsored by Representatives Spiros,
Born, Callahan, Conley, Duchow, Loudenbeck, Murphy, Novak,
Ortiz-Velez, Plumer, Rozar, Sinicki, Skowronski and Spreitzer. Referred to
Committee on Transportation and Local Government.
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.