AB667: Bill Text

LRB-3109/2

ISR&TNF:jlg:mrc

1999 - 2000 LEGISLATURE

1999 Assembly BILL 667

January 19, 2000 - Introduced by Representatives Pettis, Musser, Ladwig, Schneider, Goetsch, Ainsworth, Brandemuehl, Vrakas, Nass, Freese, Townsend and Gunderson, cosponsored by Senator Huelsman. Referred to Committee on Transportation.

AB667,1,3 An Act to amend 342.15 (1) (a), 342.15 (1) (c), 342.15 (3) and 342.18 (1); and to create 342.09 (4), 342.10 (1) (dr), 342.10 (2) (a) 5. and 342.15 (1) (e) of the statutes; relating to: the transfer of an interest in a motor vehicle.

Analysis by the Legislative Reference Bureau

Under current law, upon transferring an interest in a motor vehicle, the owner is required to execute an assignment and warranty of title to the purchaser of the motor vehicle and deliver the certificate of title to the purchaser. The owner must also disclose the motor vehicle's mileage in writing to the purchaser and, in most cases, remove the registration plates from the motor vehicle. After an owner complies with these requirements, the owner is no longer liable as an owner for any damages that result from operation of the motor vehicle.

Current law also requires the purchaser of a motor vehicle to forward the transferred certificate of title with an application for a new certificate of title to the department of transportation (DOT). A purchaser must also apply within two business days after the transfer of interest in the motor vehicle to DOT for temporary registration plates.

Under this bill, DOT must attach a notice of transfer of interest to each certificate of title it issues after the effective date of this bill. The notice must be easily detachable from the certificate of title and include spaces for the signatures of the owner, the names and addresses of the owner and purchaser, the date of the transfer of interest and the amount paid by the purchaser. This bill requires the owner of a motor vehicle who transfers an interest in a motor vehicle for which a certificate of title was issued by DOT after the effective date of this bill to forward to DOT a completed notice of transfer of interest within two business days after the transfer of interest. This bill does not apply to transfers of salvage vehicles or transfers by motor vehicle dealers.

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:

AB667, s. 1 Section 1. 342.09 (4) of the statutes is created to read:

AB667,2,3 342.09 (4) The department shall maintain a record of all notices of transfer of interest received under s. 342.15 (1) (e) according to vehicle identification number.

AB667, s. 2 Section 2. 342.10 (1) (dr) of the statutes is created to read:

AB667,2,6 342.10 (1) (dr) An easily detachable notice of transfer of interest required under s. 342.15 (1) (e) shall be attached to the certificate of title.

AB667, s. 3 Section 3. 342.10 (2) (a) 5. of the statutes is created to read:

AB667,2,11 342.10 (2) (a) 5. The notice of transfer of interest shall contain spaces for the signature of the transferor, the name and address of the transferor, the name and address of the transferee, the date of the transfer and the amount paid by the transferee.

AB667, s. 4 Section 4. 342.15 (1) (a) of the statutes is amended to read:

AB667,2,19 342.15 (1) (a) If an owner transfers an interest in a vehicle, other than by the creation of a security interest, the owner shall comply with the requirements of par. (e) and s. 342.155 and, at the time of the delivery of the vehicle, execute an assignment and warranty of title to the transferee in the space provided therefor on the certificate, and cause the certificate to be mailed or delivered to the transferee, except that if the vehicle being transferred is a junk vehicle or has been junked, the owner shall return the certificate to the department in accordance with s. 342.34.

AB667, s. 5 Section 5. 342.15 (1) (c) of the statutes is amended to read:

AB667,3,6 342.15 (1) (c) If an owner transfers his or her interest in a salvage vehicle, the owner shall at the time of the delivery of the vehicle, execute an assignment and warranty of title to the transferee in the space provided therefor on the certificate, and cause the certificate to be mailed or delivered to the transferee , and comply with the requirements of par. (e).

AB667, s. 6 Section 6. 342.15 (1) (e) of the statutes is created to read:

AB667,3,15 342.15 (1) (e) An owner who transfers an interest in a vehicle for which the certificate of title was issued by the department after the effective date of this paragraph .... [revisor inserts date], shall within 2 days after the transfer forward to the department a notice of transfer of interest. The notice of transfer of interest submitted to the department under this subsection shall be in the form specified under s. 342.10 (1) (dr) and (2) (a) 5. and include the signature of the transferor, the name and address of the transferor, the name and address of the transferee, the date of the transfer of interest and the amount paid by the transferee.

AB667, s. 7 Section 7. 342.15 (3) of the statutes is amended to read:

AB667,3,23 342.15 (3) Except as provided in s. 342.16 with respect to a vehicle which is not a salvage vehicle and as between the parties, a transfer by an owner is not effective until the provisions of this section, other than sub. (1) (e), have been complied with. An owner who has delivered possession of the vehicle to the transferee and has complied with the provisions of this section, other than sub. (1) (e), requiring action by him or her is not liable as owner for any damages thereafter resulting from operation of the vehicle.

AB667, s. 8 Section 8. 342.18 (1) of the statutes is amended to read:

AB667,4,7 342.18 (1) The department, upon receipt of a properly assigned certificate of title, with an application for a new certificate of title, the required fee and any other transfer documents required by law, to support the transfer, shall issue a new certificate of title in the name of the transferee as owner. The department may not refuse to issue a new certificate of title to a transferee under this subsection if the transferor of the motor vehicle fails to submit the notice of transfer of interest required under s. 342.15 (1) (e).

AB667, s. 9 Section 9. Initial applicability.

AB667,4,10 (1) This act first applies to certificate of titles issued by the department of transportation on the effective date of this subsection.

AB667, s. 10 Section 10. Effective date.

AB667,4,13 (1) This act takes effect on the first day of the 6th month beginning after publication.

AB667,4,14 (End)