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218.205218.205Motor vehicle salvage dealers to be licensed.
218.205(1)(1)No person may carry on or conduct the business of a motor vehicle salvage dealer unless licensed to do so by the department. Any person violating this section may be required to forfeit not less than $500 nor more than $5,000 for the first offense and may be fined not less than $500 nor more than $5,000 or imprisoned for not more than 60 days or both for a second or subsequent conviction within 5 years.
218.205(2)(2)This section shall not apply to:
218.205(2)(a)(a) Motor vehicle dealers licensed under s. 218.0114 who remove, but do not sell, as such, parts of motor vehicles prior to sale of such vehicles to motor vehicle salvage dealers or scrap metal processors.
218.205(2)(b)(b) Scrap metal processors and portable scrap metal crushers who accept motor vehicles from only:
218.205(2)(b)1.1. Licensed motor vehicle dealers;
218.205(2)(b)2.2. Licensed motor vehicle salvage dealers; or
218.205(2)(b)3.3. Municipalities, all of whom shall submit titles and reports to the department and retain records.
218.205(2)(c)(c) Any person who acquires a motor vehicle for salvage purposes for his or her own use and then sells the remainder to a motor vehicle salvage dealer or to another person who will further use that motor vehicle for salvage purposes for his or her own use before selling it to a motor vehicle salvage dealer.
218.205(2)(d)(d) Collectors of special interest vehicles who purchase or sell parts cars in compliance with s. 341.266.
218.205 HistoryHistory: 1971 c. 40; 1975 c. 288; 1977 c. 29 s. 1654 (7) (a); 1977 c. 415; 1987 a. 351 s. 2; Stats. 1987 s. 218.205; 1997 a. 120; 1999 a. 31; 2013 a. 218.
218.205 Cross-referenceCross-reference: See also s. Trans 136.01, Wis. adm. code.
218.21218.21Application for salvage dealer’s license.
218.21(1)(1)Application for license shall be made to the department, at such time, in such form or in an automated format as prescribed by the department and contain such information as the department requires and shall be accompanied by the required fee. Except as provided in sub. (1m), the department may require in the application, or otherwise, information relating to the applicant’s solvency, financial standing or other pertinent matter commensurate with the safeguarding of the public interest in the locality in which the applicant proposes to engage in business, all of which may be considered by the department in determining the fitness of the applicant to engage in business as set forth in this section.
218.21(1m)(1m)The department may not require information relating to the applicant’s solvency or financial standing if the applicant provides a bond in the amount provided in sub. (4) and under conditions specified in s. 218.0114 (20) (b).
218.21(2)(2)Application for a motor vehicle salvage dealer’s license shall be made upon the form prescribed by the department and, except as provided in sub. (2f), shall contain:
218.21(2)(a)(a) The name under which the applicant is transacting business within the state.
218.21(2)(ag)(ag) If the applicant is an individual, the social security number of the individual.
218.21(2)(am)(am) If the applicant is a person who is not an individual, the person’s federal employer identification number.
218.21(2)(b)(b) The place or places where the business is to be conducted, which must be an established place of business.
218.21(2)(c)(c) If the applicant is a sole proprietorship, the personal name and address of the applicant.
218.21(2)(d)(d) If the applicant is a partnership, the name and address of each partner.
218.21(2)(dL)(dL) If the applicant is a limited liability company, the name and address of each member.
218.21(2)(e)(e) If the applicant is a corporation, the names and addresses of its principal officers.
218.21(2)(eg)(eg) A copy of correspondence on department of natural resources letterhead indicating that the applicant has permit coverage under s. 283.33, or a statement from the department of natural resources that the applicant is not required to have a permit under s. 283.33.
218.21(2)(em)(em) A copy of correspondence on department of natural resources letterhead indicating that the applicant has registered or certified its compliance with refrigerant recovery to the department of natural resources, under its rules promulgated pursuant to s. 285.59, or a statement from the department of natural resources that the applicant is not required to register or certify under rules promulgated by the department of natural resources pursuant to s. 285.59.
218.21(2)(f)(f) Such other pertinent information as may be required by the department for the purpose of determining the eligibility of the applicant to be licensed.
218.21(2f)(2f)
218.21(2f)(a)(a) If an applicant who is an individual does not have a social security number, the applicant, as a condition of applying for or applying to renew a motor vehicle salvage dealer’s license, shall submit a statement made or subscribed under oath or affirmation to the department that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of children and families.
218.21(2f)(b)(b) Any motor vehicle salvage dealer’s license issued or renewed in reliance upon a false statement submitted by an applicant under par. (a) is invalid.
218.21(2m)(2m)
218.21(2m)(a)(a) The department shall deny an application for the issuance or renewal of a license if any information required under sub. (2) (ag) or (am) is not included in the application or if a document required under sub. (2) (eg) and (em) is not included with the application.
218.21(2m)(b)(b) The department of transportation may not disclose any information received under sub. (2) (ag) or (am) to any person except to the department of children and families for purposes of administering s. 49.22, the department of revenue for the sole purpose of requesting certifications under s. 73.0301, and the department of workforce development for the sole purpose of requesting certifications under s. 108.227.
218.21(3)(3)Every application shall be executed by the applicant, if an individual, or in the event the applicant is a partnership, limited liability company or corporation, by a partner, member or officer thereof. Every such application shall be accompanied by the fee required by law.
218.21(4)(4)
218.21(4)(a)(a) Unless the applicant furnishes a bond, or other adequate collateral as security, of not less than $25,000 under conditions provided by s. 218.0114 (20) (b), every application shall be accompanied by a current financial statement to determine the applicant’s solvency as required under sub. (1). Except as provided in par. (b), this paragraph does not apply to the application of a scrap metal processor.
218.21(4)(b)(b) Paragraph (a) does not preclude the department from requiring an applicant who is a scrap metal processor to provide information relating to the applicant’s solvency or financial standing if the applicant does not furnish a bond or other collateral as specified in par. (a) and the department has reasonable cause to believe that the applicant is financially insolvent.
218.21(5)(5)
218.21(5)(a)(a) Except as provided in par. (b), when a motor vehicle salvage dealer has an established place of business in more than one municipality in this state, he or she shall make separate application and submit a separate license fee remittance for each such municipality. A motor vehicle salvage dealer who fails to apply for each such separate license may be required to forfeit not more than $200.
218.21(5)(b)(b) A scrap metal processor with an established place of business in more than one municipality may make a single application listing all places of business to be licensed and pay a single fee for the licensing of the listed places of business.
218.21(6)(6)A bond may be required under conditions as provided by s. 218.0114 (20) (b).
218.21(7)(7)Any person who knowingly makes a false statement in an application for a motor vehicle salvage dealer license is guilty of a Class H felony.
218.21 Cross-referenceCross-reference: See also s. Trans 136.01 and ch. Trans 140, Wis. adm. code.
218.22218.22When department to license salvage dealers.
218.22(1)(1)The department shall issue a license to the applicant for a motor vehicle salvage dealer’s license upon the receipt of a properly completed application form accompanied by the fee required under sub. (2) (c) or (d), upon being satisfied that the applicant is financially solvent or that the applicant has furnished a bond, or other adequate collateral as security, of not less than $25,000 under conditions provided by s. 218.0114 (20) (b), and of good character and:
218.22(1)(a)(a) If the application is for renewal of an existing license, upon being satisfied that the applicant has complied with and will comply with this subchapter;
218.22(1)(b)(b) If the application is for an original license, upon being satisfied that:
218.22(1)(b)1.1. The applicant will comply with this subchapter; and
218.22(1)(b)2.2. The proposed site or operation will comply with all laws, the rules promulgated by the department and the locally applicable zoning or permit requirements, before beginning operations, including all laws, rules and local requirements already enacted as promulgated as of the date of application and scheduled to take effect at a later date.
218.22(2)(2)
218.22(2)(a)(a) A motor vehicle salvage dealer’s license entitles the licensee to carry on and conduct the business of a motor vehicle salvage dealer during the license period.
218.22(2)(b)1.1. The department shall promulgate rules establishing a license period.
218.22(2)(b)2.2. The department may promulgate rules establishing a uniform expiration date for all licenses issued under this section.
218.22(2)(c)(c) Except as provided in par. (d), the fee for a license issued under this section equals $75 multiplied by the number of years in the license period. The fee shall be prorated if the license period is not evenly divisible into years.
218.22(2)(d)(d) If the department issues a license under this section during the license period, the fee for the license shall equal $75 multiplied by the number of calendar years, including parts of calendar years, during which the license remains in effect. A fee determined under this paragraph may not exceed the license fee for the entire license period under par. (c).
218.22(2m)(2m)License fees collected under this subchapter shall be deposited in the transportation fund.
218.22(3)(3)The department may deny, suspend or revoke a license on any of the following grounds:
218.22(3)(a)(a) Proof of financial insolvency or other unfitness.
218.22(3)(b)(b) Material misstatement in application for license.
218.22(3)(c)(c) Filing a materially false or fraudulent income or franchise tax return as certified by the department of revenue.
218.22(3)(d)(d) Willful failure to comply with any provision of this section or any rule promulgated by the department under this section.
218.22(3)(e)(e) Willfully defrauding any retail buyer to the buyer’s damage.
218.22(3)(f)(f) Willful failure to perform any written agreement with any retail buyer.
218.22(3)(g)(g) Failure or refusal to furnish and keep in force any bond required.
218.22(3)(h)(h) Having made a fraudulent sale, transaction or repossession.
218.22(3)(i)(i) Fraudulent misrepresentation, circumvention or concealment through whatsoever subterfuge or device of any of the material particulars or the nature thereof required hereunder to be stated or furnished to the retail buyer.
218.22(3)(j)(j) Employment of fraudulent devices, methods or practices in connection with compliance with the statutes with respect to the retaking of goods under retail installment contracts and the redemption and resale of such goods.
218.22(3)(k)(k) Having indulged in any unconscionable practice relating to said business.
218.22(3)(L)(L) Having charged interest in excess of 15 percent per year.
218.22(3)(m)(m) Having sold a retail installment contract to a sales finance company not licensed under ss. 218.0101 to 218.0163.
218.22(3)(n)(n) Having violated any law relating to the sale, distribution or financing of salvaged parts.
218.22(3)(o)(o) Failure to comply with this subchapter.
218.22(3m)(3m)
218.22(3m)(a)(a) The department shall deny, restrict, limit or suspend a license if the applicant or licensee is an individual who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, or who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings, as provided in a memorandum of understanding entered into under s. 49.857.
218.22(3m)(b)(b) The department of transportation shall suspend or revoke a license if the department of revenue certifies under s. 73.0301 that the licensee is liable for delinquent taxes. A licensee whose license is suspended or revoked under this paragraph for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and a hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this section.
218.22(3m)(c)(c) The department of transportation shall suspend or revoke a license if the department of workforce development certifies under s. 108.227 that the licensee is liable for delinquent unemployment insurance contributions. A licensee whose license is suspended or revoked under this paragraph for delinquent unemployment insurance contributions is entitled to a notice under s. 108.227 (2) (b) 1. b. and a hearing under s. 108.227 (5) (a) but is not entitled to any other notice or hearing under this section.
218.22(4)(4)
218.22(4)(a)(a) The licensor may without notice deny the application for a license within 60 days after receipt thereof by written notice to the applicant, stating the grounds for such denial. Within 30 days after such notice, the applicant may petition the division of hearings and appeals to conduct a hearing to review the denial, and a hearing shall be scheduled with reasonable promptness. This paragraph does not apply to denials of applications for licenses under sub. (3m).
218.22(4)(b)(b) No license shall be suspended or revoked except after a hearing thereon. The licensor shall give the licensee at least 5 days’ notice of the time and place of such hearing. The order suspending or revoking such license shall not be effective until after 10 days’ written notice thereof to the licensee, after such hearing has been had; except that the licensor, when in its opinion the best interest of the public or the trade demands it, may suspend a license upon not less than 24 hours’ notice of hearing and with not less than 24 hours’ notice of the suspension of the license. Matters involving suspensions and revocations brought before the department shall be heard and decided upon by the division of hearings and appeals. This paragraph does not apply to licenses that are suspended or revoked under sub. (3m).
218.22(4)(c)(c) The licensor may inspect the pertinent books, records, letters and contracts of a licensee. The actual cost of each such examination shall be paid by such licensee so examined within 30 days after demand therefor by the licensor, and the licensor may maintain an action for the recovery of such costs in any court of competent jurisdiction.
218.22(5)(5)No salvage dealer licensed under ss. 218.205 to 218.23 shall be licensed as a dealer under s. 218.0114 at his or her salvage dealer location, provided that nothing herein shall prohibit licensing and transacting of both businesses at the same location where the salvage operations are physically separated.
218.22 Cross-referenceCross-reference: See also s. Trans 136.01, Wis. adm. code.
218.23218.23Licensee to maintain records; purchase and sale of vehicles by licensee.
218.23(1)(1)Whenever a licensed motor vehicle salvage dealer acquires a motor vehicle for the purpose of wrecking it, the dealer shall mail or deliver the certificate of title or if the transfer to the salvage dealer was by a bill of sale, the bill of sale, for such vehicle to the department within 30 days after the vehicle is delivered to the salvage yard unless the previous owner already has done so or, if another person is in possession of the certificate of title, as shown by the records of the department of transportation, that person already has done so. If the dealer subsequently wishes to transfer such vehicle to another person, the dealer shall make such transfer only by bill of sale. In such bill of sale, the dealer shall describe the vehicle and shall state that the certificate of title for the vehicle has been mailed or delivered to the department because the vehicle was to have been junked.
218.23(1d)(1d)No motor vehicle scavenger may acquire a motor vehicle by a bill of sale for the purpose of wrecking or junking the motor vehicle.
218.23(1g)(1g)Before a licensed motor vehicle salvage dealer may acquire a motor vehicle for the purpose of wrecking or junking the motor vehicle, the dealer shall examine the certificate of title for the motor vehicle, or examine the title records of the department if the person transferring the motor vehicle is not in possession of the certificate of title, to determine whether there is any security interest in the motor vehicle. A licensed motor vehicle salvage dealer who demonstrates that the dealer has acted in accordance with this subsection is not liable for any damages incurred by a person who asserts a security interest in a motor vehicle and who is not named on the certificate of title of the vehicle.
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2023-24 Wisconsin Statutes updated through all Supreme Court and Controlled Substances Board Orders filed before and in effect on January 1, 2025. Published and certified under s. 35.18. Changes effective after January 1, 2025, are designated by NOTES. (Published 1-1-25)