LRB-3053/3
PJH:kmg:pg
2003 - 2004 LEGISLATURE
February 5, 2004 - Introduced by Representative Freese, cosponsored by Senator
Leibham. Referred to Committee on Transportation.
AB821,1,4 1An Act to amend 218.0111 (1) (intro.), 218.0114 (1), 218.0114 (13) (b) and (c),
2218.0114 (18) and 218.33 (2) (a); and to create 218.0101 (22m), 218.0114 (14)
3(fm) and 218.34 of the statutes; relating to: motor vehicle buyers, granting
4rule-making authority, and providing a penalty.
Analysis by the Legislative Reference Bureau
Current law requires a motor vehicle dealer, motor vehicle salesperson, and
motor vehicle sales finance company to have a license issued by the Department of
Transportation (DOT) in order to conduct business. A motor vehicle dealer is
responsible for ensuring that each motor vehicle salesperson in his or her employ has
a valid license. Failure to comply with these licensing requirements may result in
a fine of not less than $500 nor more than $5,000. This bill defines a motor vehicle
buyer as a person who is employed by one or more motor vehicle dealers to bid on or
purchase a motor vehicle from a motor vehicle dealer or a motor vehicle auction and
requires a motor vehicle buyer and a motor vehicle wholesaler to be licensed. A motor
vehicle buyer must obtain a separate license for each motor vehicle dealer on whose
behalf the buyer operates and each motor vehicle dealer is responsible for ensuring
that each motor vehicle buyer in his or her employ has a valid license.
Under current law, motor vehicles sold at a motor vehicle auction may only be
sold to licensed motor vehicle dealers. Under the bill, motor vehicles sold at a motor
vehicle auction may be sold to licensed motor vehicle dealers, licensed motor vehicle
wholesalers, and licensed motor vehicle buyers. The licensed dealer, wholesaler, or
buyer must display his or her valid license and include his or her license number on

each sheet of any bid submitted to a motor vehicle auction and on any document
evidencing the purchase of a motor vehicle from the auction. Prior to accepting a bid,
the motor vehicle auction must verify that the license number displayed on the buyer
or bidder's license and the number included on the bid or other documents are
identical. After a motor vehicle is sold at an auction, the motor vehicle auction must
include information, to be determined by DOT, to indicate that ownership of the
vehicle was transferred by a motor vehicle auction.
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:
AB821, s. 1 1Section 1. 218.0101 (22m) of the statutes is created to read:
AB821,2,52 218.0101 (22m) "Motor vehicle buyer" means an individual who is employed
3by or who has contracted with one or more motor vehicle dealers to bid on or purchase
4a motor vehicle being held and offered for sale by a motor vehicle dealer or motor
5vehicle auction.
AB821, s. 2 6Section 2. 218.0111 (1) (intro.) of the statutes is amended to read:
AB821,2,107 218.0111 (1) (intro.) The department of transportation shall issue the licenses
8provided for in s. 218.0114 (14) (a) to (f) (fm) and have supervision over the licensees
9in respect to all of the provisions of ss. 218.0101 to 218.0163, except that the division
10of banking shall have jurisdiction and control over all of the following:
AB821, s. 3 11Section 3. 218.0114 (1) of the statutes is amended to read:
AB821,3,412 218.0114 (1) No motor vehicle dealer, motor vehicle wholesaler, motor vehicle
13salesperson, motor vehicle buyer, or sales finance company may engage in business
14as a motor vehicle dealer, motor vehicle wholesaler, motor vehicle salesperson, motor
15vehicle buyer,
or sales finance company in this state without a license therefor as
16provided in ss. 218.0101 to 218.0163. If any motor vehicle dealer acts as a motor
17vehicle salesperson, he or she shall secure a motor vehicle salesperson's license in

1addition to a motor vehicle dealer license. Every motor vehicle dealer shall be
2responsible for the licensing of every motor vehicle salesperson or motor vehicle
3buyer
in his or her employ. Any person violating this subsection may be fined not less
4than $500 nor more than $5,000.
AB821, s. 4 5Section 4. 218.0114 (13) (b) and (c) of the statutes are amended to read:
AB821,3,86 218.0114 (13) (b) The department of transportation shall promulgate rules
7establishing the license period for each type of license described in sub. (14) (a) to (f)
8(fm).
AB821,3,109 (c) The department of transportation may promulgate rules establishing
10expiration dates for the various types of licenses described in sub. (14) (a) to (f) (fm).
AB821, s. 5 11Section 5. 218.0114 (14) (fm) of the statutes is created to read:
AB821,3,1412 218.0114 (14) (fm) For motor vehicle buyers, $6. Any motor vehicle buyer who
13buys a motor vehicle on behalf of more than one dealership must hold a separate
14motor vehicle buyer license for each employing dealership.
AB821, s. 6 15Section 6. 218.0114 (18) of the statutes is amended to read:
AB821,4,216 218.0114 (18) Every salesperson, factory representative or, distributor
17representative, or motor vehicle buyer shall carry his or her license when engaged
18in business, and display the license upon request. The license shall name the
19licensee's employer or motor vehicle dealership for whom the motor vehicle buyer is
20buying
. Upon leaving an employer, or, in the case of a buyer, terminating a buying
21relationship with a motor vehicle dealership,
the licensee shall immediately
22surrender the license to his or her employer or to the dealership, who shall mail the
23license to the licensor. If during the license period the licensee again is employed or
24acts as a salesperson or motor vehicle buyer, he or she shall make application for
25reissue of a salesperson's or motor vehicle buyer license. There shall be no fee in

1connection with the subsequent applications application for a salesperson's license.
2The fee for a subsequent application for a motor vehicle buyer license is $6
.
AB821, s. 7 3Section 7. 218.33 (2) (a) of the statutes is amended to read:
AB821,4,74 218.33 (2) (a) Sales of motor vehicles shall be confined to those offered by
5licensed motor vehicle dealers and shall be sold made only to licensed motor vehicle
6dealers
a person who is qualified under s. 218.34 to purchase, or submit a bid for the
7purchase of, a motor vehicle from a motor vehicle auction
.
AB821, s. 8 8Section 8. 218.34 of the statutes is created to read:
AB821,4,11 9218.34 Purchases from a motor vehicle auction. (1) No person may
10purchase or submit a bid for the purchase of a motor vehicle from a motor vehicle
11auction unless the following conditions are satisfied:
AB821,4,1312 (a) The person holds a valid motor vehicle dealer, motor vehicle wholesaler, or
13motor vehicle buyer license.
AB821,4,1614 (b) If licensed as a motor vehicle buyer, the person bids on a vehicle for only one
15motor vehicle dealer at a time, and uses that dealer's funds when purchasing the
16vehicle.
AB821,4,2117 (c) The person displays his or her valid motor vehicle dealer, motor vehicle
18wholesaler, or motor vehicle buyer license to the motor vehicle auction and includes
19his or her license number on each sheet of any bid submitted to a motor vehicle
20auction for the purchase of a motor vehicle or other document evidencing the
21purchase of a motor vehicle from a motor vehicle auction.
AB821,5,3 22(2) No motor vehicle auction may accept a bid for the purchase of a motor
23vehicle or complete the sale transaction unless the person who submits the bid or
24offers to purchase a motor vehicle from the motor vehicle auction satisfies the
25requirements of sub. (1) and the motor vehicle auction verifies that the motor vehicle

1dealer license, motor vehicle wholesaler license, or motor vehicle buyer license
2number displayed on the person's license and included on each sheet of that person's
3bid or other document evidencing the purchase of a motor vehicle are identical.
AB821,5,7 4(3) For each motor vehicle sold by a motor vehicle auction, the motor vehicle
5auction shall enter on the certificate of title, or on the form or in the automated
6format used to reassign the title, any information that the department requires to
7indicate that ownership of the vehicle was transferred by a motor vehicle auction.
AB821,5,88 (End)
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