(b) An application for a vehicle auctioneer license shall be filed with the Secretary of State, duly verified by oath, in such form as the Secretary of State…”
Iowa.
Iowa Admin. Code 761-425.20 (322)
425.20(2) Retail auction sales. Any person who sells at public auction more than six vehicles in a 12-month period shall obtain the appropriate dealer's license. All certificates of title for the vehicles offered for sale at public auction shall be duly assigned to the dealer.
425.20(3) Place of business. A dealer's license issued under this rule does not require a place of business.
425.20(4) Exceptions.
a. The state of Iowa, counties, cities and other governmental subdivisions are not required to obtain a dealer's license to sell their vehicles at retail.
b. This rule does not apply to a vehicle owner, or to an auctioneer representing the owner, selling vehicles at a retail auction if the vehicles were acquired by the owner for consumer use, the vehicles are incidental to the auction, and only one owner's vehicles are sold.
Michigan.
A person shall not carry on or conduct the business of buying, selling, brokering, leasing, negotiating a lease, or dealing in 5 or more vehicles of a type required to be titled under this act in a 12-month period unless the person obtains a dealer license from the secretary of state authorizing the carrying on or conducting of that business. A person shall not carry on or conduct the business of buying, selling, brokering, leasing, negotiating a lease, or dealing in 5 or more distressed, late model vehicles or salvageable parts to 5 or more of those vehicles in a 12-month period unless the person obtains a used or secondhand vehicle parts dealer, an automotive recycler, or a salvage pool license from the secretary of state or is an insurance company admitted to conduct business in this state. A person shall not carry on or conduct the business of buying 5 or more vehicles in a 12-month period to process into scrap metal or store or display 5 or more vehicles in a 12-month period as an agent or escrow agent of an insurance company unless the person obtains a dealer license from the secretary of state. A vehicle scrap metal processor that does not purchase vehicles or salvageable parts from unlicensed persons is not required to obtain a dealer license. A person from another state shall not purchase, sell, or otherwise deal in distressed, late model vehicles or salvageable parts unless the person obtains a foreign salvage vehicle dealer license from the secretary of state under section 248b.3 A person, including a dealer, shall not purchase or acquire a distressed, late model vehicle or a salvageable part through a salvage pool, auction, or broker without a license as a salvage vehicle agent. The secretary of state shall investigate and seek prosecution, if necessary, of persons allegedly conducting a business without a license.”
Minnesota.
Minn. Admin. Code 7400.0900.
Subpart 1. New motor vehicles. A person who solicits, accepts, offers for sale, or sells new motor vehicles on consignment must be licensed as a new motor vehicle dealer and must have a franchise for each type of new motor vehicle sold on consignment.
Subp. 2. Used motor vehicles. A person who solicits, accepts, offers for sale, or sells used motor vehicles on consignment must be licensed as a new motor vehicle dealer, a used motor vehicle dealer, a motor vehicle wholesaler, or a motor vehicle auctioneer.
Subp. 3. Auctioneers. This part does not apply to a licensed auctioneer selling motor vehicles at an auction if, in the ordinary course of the auctioneer's business, the sale of motor vehicles is incidental to the sale of other real or personal property.
Summary of the Factual Data and Analytical Methodologies:
No data was collected in developing this rule.
Analysis Regarding Rule’s Effect on Small Businesses:
Because the department may not enforce its 2021 interpretation of the policy against buyers who apply for a license with any of the 5 Jefferson County plaintiffs and the 2 Milwaukee County plaintiffs, the department as of September 18, 2023 decided the 2004 policy of allowing applications to serve as interim buyers licenses would apply to all Wisconsin buyer license applicants and auto auctions., This rulemaking will allow the department to uniformly regulate buyer’s licenses and protect consumers in accordance with its interpretation of s. 218.34(1)(a), Stats. without significant or long-term effects on small businesses. The agency contact person listed below is also the small business regulatory coordinator for this proposed rule. This proposed rule, fiscal estimate, and other related documents may be viewed at https://docs.legis.wisconsin.gov/code. Agency Contact Person:
Maura Schifalacqua
State of Wisconsin Department of Transportation
Division of Motor Vehicles
4822 Madison Yards Way
Madison, Wisconsin 53705
Place Where Comments Should Be Submitted and Deadline: Comments may be submitted to the agency contact person listed above or through the Legislature’s Administrative Rules website http://docs.legis.wisconsin.gov/code until the deadline given in the forthcoming notice of public hearing. TEXT OF RULE
SECTION 1. Trans 138.02 (13m) and (13r) is created to read:
Trans 138.02 (13m) “Valid motor vehicle buyer license” means a written authorization issued by the department that authorizes the holder to bid on or to purchase at a motor vehicle auction dealer, to an applicant that meets the requirements under s. Trans 138.0225. Trans 138.02 (13r) “Motor vehicle buyer” has the meaning provided in s. 218.01.01 (22m).
SECTION 2. Trans 138.0225 is created to read:
Trans 138.0225 License requirements. (1) Only persons specified in s. 218.34 (1) (a), Stats., may bid on or purchase motor vehicles at motor vehicle auction dealers. A motor vehicle buyer shall carry his or her license when engaged in business and display the license upon request. (1m) Applicants for a valid motor vehicle buyer license must be at least 18-years-old and an employee of a licensed motor vehicle dealer, as evidenced by a copy of the sponsoring dealer’s license certificate issued by the appropriate regulatory authority.
(Note) A person may obtain the motor vehicle buyer’s license application form MV2941 through the department’s website or by contacting the department at the following address:
Wisconsin Department of Transportation
Dealer and Agent Section
PO Box 7909
Madison WI 52707-7909
(2) A motor vehicle buyer license is not valid until the department receives a complete application with applicable fees for the license on a form specified by the department, the department approves the application in a manner determined by the department, and the department issues a license to the applicant.
(3) The effective period of a valid motor vehicle buyer license begins when the department issues the license. A valid motor vehicle buyer license sponsored by a Wisconsin dealer expires on the same date as the sponsoring motor vehicle dealer license. A motor vehicle buyer license sponsored by an out-of-state dealership expires on the same date as the out-of-state dealer license or 12 months from the date the department issues the license, whichever is sooner.
(4) A person must have a separate motor vehicle buyer license for each employer, and application signed by each dealer, if buying for more than one employer.
(5) Any person whose valid motor vehicle license expires may renew their license in the manner specified by s. Trans 138.0225 (1m) Section 3. EFFECTIVE DATE. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register, as provided in s. 227.22 (2) (intro.), Stats.
(END OF RULE TEXT)
Signed this ____ day of February, 2024.
________________________________________________
Craig Thompson, Secretary
State of Wisconsin Department of Transportation
