Date Enacted: April 23, 2014
Date Effective: April 23, 2014
Wisconsin AB 262 is a revision to a past bill regarding motor vehicle dealer bonds. The amendment increases the expected auto dealer bond as well as the bonding amount for Department of Transportation (DOT) title and registration processing contractors. Bonding amounts for subcontractors of DOT contractors are also affected.
If you fall into any of these categories, there are some changes to the bonding laws you must abide by. Keep reading for vital information on how the bill’s revisions may affect you.
Car Dealer Bond Amounts Increased
AB 262 amends the bond coverage for motor vehicle dealers by increasing the motor vehicle dealer bond amount from $25,000 to $50,000. This law also affects used car dealer bonds, so if you own a used car dealership this change applies to you as well.
The good news is that if you sell motorcycles only, your motor vehicle bond needs to be just $5,000.
Letters of credit in the same amounts as bonds will also be accepted, and need to be in the name of the DOT.
Department of Transportation Title and Processing Services Contractors
The changes to this bill also affect Department of Transportation (DOT) title and processing service contractors. The DOT is allowed to contract with whomever they see fit to perform these services. The program these contractors work under is called the automated processing partnership system (APPS) program.
The contracted individuals are still held to the existing requisite bond of $10,000 for applications to process registration renewal transactions and $25,000 for applicants for processing of titles and original registration transactions.
The updated bill modifies existing rules by indicating that if the applicant is also a subcontractor of the DOT’s motor vehicle emission inspection and maintenance program (I/M program), and the I/M contractor has more than 100 subcontractors applying as agents, then the I/M contractor can provide the letter of credit or surety bond for these applicants. The bond or credit amount for each of these subcontractors is $2,000.
Other Notable Changes
Changes of Address
Changes of address may now be filed by any electronic means the department allows, in addition to the formerly accepted phone and mail notifications. As before, a person must notify the department within 30 days of a change in their principal business address.
Weigh Station Inspections
Past rules required vehicles weighing 8,000 pounds or more to stop at open weigh stations and when requested, allow the truck and its haul to be weighed, inspected and/or measured. Changes to the existing law revise the weight to 10,000 pounds.
Wisconsin’s AB 262 affected the above noted changes, but also created many administrative amendments. These amendments address items such as wording regarding fees and specifications of administrative codes.
Check out the full revised Wisconsin Auto Dealer Bond Act for more details.
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