2017 - 2018 LEGISLATURE
May 19, 2017 - Introduced by Representatives Schraa, R. Brooks and Petryk,
cosponsored by Senators Petrowski, Cowles and Olsen. Referred to
Committee on Transportation.
1An Act to repeal
134.405 (3m), 134.405 (5) (a) (intro.) and 134.405 (5) (am); to
134.405 (5) (a) 1., 134.405 (5) (a) 2. and 134.405 (5) (a) 3.; to amend
134.405 (2), 134.405 (3) (a) (intro.), 218.20 (1r) and 218.23 (1r); and to create
218.20 (1v) of the statutes;
relating to: acquisition of a motor vehicle by scrap
5metal dealers and motor vehicle salvage dealers.
Analysis by the Legislative Reference Bureau
This bill requires scrap metal processors and dealers who acquire a motor
vehicle for scrap or salvage to comply with the same requirements as motor vehicle
salvage dealers, and changes certain requirements that apply before a motor vehicle
salvage dealer may acquire a motor vehicle in which another person holds a security
This bill changes the definition of a “motor vehicle salvage dealer" to include a
scrap metal processor or scrap metal dealer who acquires a motor vehicle for scrap
or salvage. Under current law, a motor vehicle salvage dealer must be licensed by
the Department of Transportation and comply with certain requirements. Under
current law, a “scrap metal processor" is a person who processes or scraps motor
vehicles but does not sell motor vehicles or vehicle parts and whose business is
limited to a fixed location where scrap metal is processed into prepared grades for
sale for remelting. A “scrap metal dealer" is a person engaged in the business of
buying or selling scrap metal. The bill also eliminates certain requirements under
current law that apply to scrap metal dealers who acquire a motor vehicle, relating
to the acquisition of a motor vehicle whose certificate of title identifies a holder of a
security interest, that are the same as requirements that apply to motor vehicle
salvage dealers under current law.
In addition, the bill allows a licensed motor vehicle salvage dealer to acquire a
motor vehicle whose certificate of title identifies a holder of a security interest, for
the purpose of wrecking or junking the vehicle, if the dealer pays the amount of the
outstanding obligation represented by the security interest in full to the security
interest holder when the dealer obtains the title for the vehicle. Current law
prohibits a motor vehicle salvage dealer from acquiring such a motor vehicle.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
134.405 (2) of the statutes is amended to read:
134.405 (2) Purchases of ferrous scrap. Except as provided in sub. (3m), a 3A
scrap metal dealer may purchase scrap metal other than nonferrous scrap, a metal 4
article, or a proprietary article from any person over the age of 18.
134.405 (3) (a) (intro.) of the statutes is amended to read:
(a) (intro.) Subject to par. (b)
and except as provided in sub. (3m)
a scrap dealer may purchase nonferrous scrap, metal articles, or proprietary articles 8
from any person who is over the age of 18 if all of the following apply:
134.405 (3m) of the statutes is repealed.
134.405 (5) (a) (intro.) of the statutes is repealed.
134.405 (5) (a) 1. of the statutes is renumbered 134.405 (5) (ad).
134.405 (5) (a) 2. of the statutes is renumbered 134.405 (5) (ah).
134.405 (5) (a) 3. of the statutes is renumbered 134.405 (5) (ap).
134.405 (5) (am) of the statutes is repealed.
218.20 (1r) of the statutes is amended to read:
“Motor vehicle salvage dealer" means a person who purchases and 17
resells motor vehicles for wrecking, processing, scrapping, recycling, or dismantling
purposes or who carries on or conducts the business of wrecking, processing, 2
scrapping, or dismantling motor vehicles or selling parts of motor vehicles so 3
processed. Motor vehicle salvage dealer includes a motor vehicle scavenger and a
4scrap metal processor or scrap metal dealer who acquires a motor vehicle for scrap
218.20 (1v) of the statutes is created to read:
“Scrap metal dealer" has the meaning given in s. 134.405 (1) (h).
218.23 (1r) of the statutes is amended to read:
No licensed motor vehicle salvage dealer may acquire a motor 10
vehicle for the purpose of wrecking or junking the motor vehicle if the certificate of 11
title for the motor vehicle identifies a holder of a security interest in the motor 12
vehicle, unless the dealer, when obtaining the certificate of title for the vehicle, pays
13the outstanding amount of the obligation represented by the security interest in full
14to the holder of the security interest