HF 1901

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/13/2012 12:11pm

A bill for an act
relating to transportation; amending regulation of scrap vehicle purchasing;
proposing coding for new law in Minnesota Statutes, chapter 168.

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

Section 1.

new text begin [168.2705] SCRAP VEHICLE DEALERS; PROOF OF TITLE OR
HOLD.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Proof of identification" means the seller's valid driver's license, valid Minnesota
identification card, or other identification document issued by any state, federal, or foreign
government if the document includes the person's photograph, full name, birth date, and
signature.
new text end

new text begin (c) "Scrap vehicle" means a motor vehicle acquired: (1) for processing and selling
the metal for remelting, or (2) for dismantling and selling used parts and remaining scrap
materials.
new text end

new text begin (d) "Scrap vehicle dealer" means a licensee under section 168.27 that acquires
scrap vehicles.
new text end

new text begin Subd. 2. new text end

new text begin Scrap vehicle transactions. new text end

new text begin (a) A scrap vehicle dealer who acquires a
scrap vehicle must obtain:
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new text begin (1) except as provided in paragraph (b), a certificate of title or salvage title matching
the vehicle identification number of the scrap vehicle, and any applicable lien releases;
new text end

new text begin (2) a copy of the seller's proof of identification; and
new text end

new text begin (3) a statement signed by the seller, under penalty of perjury, attesting that the motor
vehicle is not stolen and is free of any liens or encumbrances and that the seller has the
right to sell the motor vehicle.
new text end

new text begin (b) A scrap vehicle dealer may agree to purchase a scrap vehicle without proof of
title under paragraph (a), clause (1), provided that the dealer shall:
new text end

new text begin (1) enter into a purchase agreement with the seller, which must include the following
information on the scrap vehicle: (i) vehicle identification number; (ii) make, model, and
color; and (iii) license plate number, if any;
new text end

new text begin (2) not scrap, dismantle, or in any way destroy the scrap vehicle for seven days
following the date of the purchase agreement; and
new text end

new text begin (3) report the vehicle identification number to the local law enforcement agency
having jurisdiction over the scrap vehicle dealer's business, within one business day
following the date of the purchase agreement.
new text end

new text begin Subd. 3. new text end

new text begin Purchase from other dealers or merchants. new text end

new text begin (a) Subdivision 2 does not
apply when a scrap vehicle is purchased from:
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new text begin (1) an insurance company, rental car company, financial institution, or charity; or
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new text begin (2) a licensee under section 168.27.
new text end

new text begin (b) A scrap vehicle dealer acquiring a scrap vehicle under this subdivision shall
obtain the seller's business name and address, a copy of the seller's proof of identification,
and, if available, a bill of sale or other evidence of open or legitimate purchase.
new text end

new text begin Subd. 4. new text end

new text begin Retention period; investigative holds and seizure. new text end

new text begin (a) Copies of
documentation and reports required under this section shall be retained by the scrap
vehicle dealer for a minimum period of three years and shall at all reasonable times be
open to the inspection of any law enforcement agency or officer.
new text end

new text begin (b) The provisions of section 325E.21, subdivision 8, apply to scrap vehicles in
the possession of a scrap vehicle dealer.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012, and applies to
transactions occurring on or after that date.
new text end