Wisconsin Administrative Code › Department of Transportation › Chapter Trans 140 - Motor Vehicle Dealer Financial Eligibility And Bond Claim Requirements › Subchapter I - Dealer Security and Financial Eligibility Requirements › Section Trans 140.027 - Criteria for supplemental security

Current through June 24, 2024
(1) AMOUNT. The
				department may require supplemental bonds of motor vehicle dealers or
				wholesalers according to their annual vehicle sales and their total points in
				the current licensing period. The department shall provide a licensee or
				applicant written notice of the requirement for supplemental security. The
				department may require supplemental securities of applicants for such licenses
				according to the department's estimates of their annual retail vehicle sales
				and their total points for the licensing period for which the application is
				made. The department may determine or estimate points and annual vehicle sales
				according to subs. (2) and (3). Bonds shall be in the amounts described in the
				following table:
SUPPLEMENTAL BOND CALCULATION
Number of points
1
2
3
4
5
6 or more
Number of vehicles sold at retail per year
0-249
5,000
10,000
15,000
20,000
25,000
30,000 to 50,000
250-999
15,000
23,000
30,000
38,000
45,000
55,000 to 75,000
1,000 and above
25,000
35,000
45,000
55,000
65,000
75,000 to 100,000
(2)
				DETERMINING POINTS.
(a)
General.
The department may assess points against a licensed
				dealer or wholesaler, or an applicant for a license, who has violated any
				provisions in ss.
				218.0101 to
				218.0163, Stats.,
				or rules interpreting ss.
				218.0101 to
				218.0163, Stats.,
				that constitute grounds for the suspension or revocation of their license. The
				department may also assess points against a licensed dealer, wholesaler, or an
				applicant for a license when the department has reasonable cause to doubt the
				licensee or applicant's financial responsibility or solvency. The department
				shall provide a licensee or applicant written notice of a point assessment.
				Written notice of a point assessment shall specify the reasons for the point
				assessment, including the issuance of a complaint to revoke or suspend a
				license, a written stipulation to a conditional license, a civil forfeiture
				complaint or citation, notice of denial of a license, and a special order
				issued by the division of hearings and appeals. All points assessed by the
				department shall remain in effect for the duration of the current licensing
				period, and any new point assessments shall be added to the existing point
				total for that licensee throughout the current licensing period.
(b)
Effect of point assessments from
				previous licensing period.
The department may assess additional points
				or carry over points to a new licensing period under the following conditions:
1. The department may assess additional
				points for current violations when point assessments in previous licensing
				periods demonstrate a pattern of violations or repeat offenses.
2. The department may carry over point
				assessments from one licensing period to the next period for which a dealer or
				wholesaler makes application if a significant share of the licensee's or
				applicant's ownership or employees includes persons who were assessed points,
				or who were directly involved in violations causing points to be assessed, when
				they were last licensed by the department.
(c)
Appeals to eliminate point
				accumulations.
A licensee may, after 12 months of posting additional
				security, submit to the department evidence of eliminating the compliance or
				financial problems cited by the department when it assessed points, and ask
				that the department reduce or eliminate the licensee's current points. The
				licensee may submit only one request regarding the same point assessments
				during the licensing period. -
(d)
Point assessments.
The department may assess points according
				to the following table:
Grounds for assessing points
No. of points per violation
ss.
								218.0114(1),
								(4), (5), and (20),
								218.0116(1)
								(d) and (p),
								342.06(2),
								342.16(1m),
								347.415,
								Stats.
4-6
s.
								218.0116(1)
								(bm), (c), (cm), (dm) to (f), (gm), (im) 2., (j), and
								(m), Stats., where the department has
								estimated that the loss to the consumer was greater than $500
4-6
s.
								218.0116(1)
								(bm), (c), (cm), (dm) to (f), (gm), (im) 2., (j), and
								(m), Stats., where the department has
								estimated that the loss to the consumer was less than or equal to $500
1-3
Other provisions of ss.
								218.0101 to
								218.0163, Stats.,
								not specifically listed in this table
1-3
s.
								218.0116(1)
								(a), Stats., where the department has found
								financial insolvency or irresponsibility as demonstrated by:
Ratio of current assets to current liabilities is
								less than 1.25 but greater than or equal to 1.00
1-3
Total assets exceed total liabilities, but by less
								than 35 percent
1-3
Ratio of current assets to current liabilities is
								less than 1.00; or negative net worth
6
Other indications of financial insolvency or
								irresponsibility not specifically listed in the table
1-3
s.
								218.0116(1)
								(a), Stats., where the department has found
								financial insolvency or irresponsibility as demonstrated by:
Ratio of current assets to current liabilities is
								less than 1.25 but greater than or equal to 1.00
1-3
Total assets exceed total liabilities, but by less
								than 35 percent
1-3
Ratio of current assets to current liabilities is
								less than 1.00; or negative net worth
6
Other indications of financial insolvency or
								irresponsibility not specifically listed in the table
1-3