HF 737

as introduced - 87th Legislature (2011 - 2012) Posted on 02/28/2011 10:00am

A bill for an act
relating to commerce; prohibiting a motor vehicle dealer from selling a service
contract from an unregistered provider; amending Minnesota Statutes 2010,
sections 59B.02, by adding a subdivision; 168.27, subdivision 12; proposing
coding for new law in Minnesota Statutes, chapter 59B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 59B.02, is amended by adding a
subdivision to read:

new text begin Subd. 5b. new text end

new text begin Motor vehicle dealer. new text end

new text begin "Motor vehicle dealer" means a person engaged in
the business of selling new and unused motor vehicles or used motor vehicles, or both;
having an established place of business for the sale, trade, and display of the motor
vehicles; and having in possession motor vehicles for the purpose of sale or trade.
new text end

Sec. 2.

new text begin [59B.035] OBLIGATIONS OF MOTOR VEHICLE DEALER.
new text end

new text begin Subdivision 1. new text end

new text begin Prohibition. new text end

new text begin It is unlawful for a motor vehicle dealer to sell, or
facilitate in any manner the sale of, a service contract issued by a provider that is not
registered as required by this chapter at the time of sale.
new text end

new text begin Subd. 2. new text end

new text begin Remedy. new text end

new text begin In addition to any other remedy that may be available at law,
a motor vehicle dealer that has violated subdivision 1 is responsible to the consumer
for all contractual obligations of the provider under the service contract in the event of
the provider's nonperformance.
new text end

Sec. 3.

Minnesota Statutes 2010, section 168.27, subdivision 12, is amended to read:

Subd. 12.

Grounds for suspension and revocation.

(a) A license may be
suspended or revoked by the registrar of motor vehicles upon proof satisfactory to the
registrar of any of the following:

(1) violations of any of the provisions of this chapter or chapter new text begin 59B, new text end 168A, 297B,
325E, or 325F;

(2) violation of or refusal to comply with the requests and order of the registrar;

(3) failure to make or provide to the registrar all listings, notices, and reports
required by the registrar;

(4) failure to pay to the registrar all taxes, fees, and arrears due from and by such
dealer;

(5) failure to duly apply for renewal of license provided for in this section;

(6) revocation of previous license, of which the records of the registrar relating to
the revocation are prima facie evidence of the previous revocation;

(7) failure of continued occupancy of an established place of business;

(8) sale of a new and unused current model motor vehicle other than the make of
motor vehicle described in the franchise or contract filed with the original application or
renewal thereof, without permission from the registrar;

(9) sale of a new and unused current model motor vehicle to anyone except for
consumer use, or to a dealer duly licensed to sell the same make of motor vehicle;

(10) material misstatement or misrepresentation in application for license or renewal;

(11) having advertised, printed, displayed, published, distributed, broadcast,
or televised or caused or permitted to be advertised, printed, displayed, published,
distributed, broadcast, or televised in any manner whatsoever, or having made orally any
statement or representation with regard to the sale, lease, or financing of motor vehicles
that is false, deceptive, or misleading;

(12) having been convicted of violating section 325F.69, or having been enjoined
due to a violation of section 325F.69;

(13) having been convicted of violating the Minnesota Odometer Law, section
325E.14, 325E.15, or 325E.16, or the federal odometer law, United States Code, title
15, sections 1981 to 1991;

(14) having been convicted of violating the sale of motor vehicles on Sunday law,
section 168.275;

(15) having been convicted under section 609.53 of receiving or selling stolen
vehicles; or

(16) having pleaded guilty, entered a plea of nolo contendere or no contest, or having
been found guilty in a court of competent jurisdiction of any charge of failure to pay state
or federal income or sales taxes or felony charge of forgery, embezzlement, obtaining
money under false pretenses, theft by swindle, extortion, conspiracy to defraud, or bribery.

(b) With respect to paragraph (a), clauses (12), (13), (15), and (16), the registrar
may suspend or revoke a license immediately upon receiving certification of conviction
or permanent injunction. A hearing is required under subdivision 13 within 30 days
following a summary suspension or revocation under this paragraph, if a hearing is
requested by the licensee.

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective January 1, 2012.
new text end