HF 3145

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/27/2023 01:33pm

A bill for an act
relating to transportation; modifying motor vehicle dealer access to replacement
license plates; clarifying the operation of used motor vehicles by motor vehicle
dealers and their employees; amending Minnesota Statutes 2022, sections 168.27,
subdivision 16, by adding a subdivision; 168A.02, subdivision 2; 168A.03,
subdivision 2; 168A.11, subdivision 1.

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

Section 1.

Minnesota Statutes 2022, section 168.27, subdivision 16, is amended to read:

Subd. 16.

Dealer plates: distinguishing number, fee, tax, use.

(a) The registrar shall
issue to every motor vehicle dealer, upon a request from the motor vehicle dealer licensed
as provided in subdivision 2 or 3, one or more plates displaying a general distinguishing
number. This subdivision does not apply to a scrap metal processor, a used vehicle parts
dealer, or a vehicle salvage pool. The fee for each of the first four plates is $75 per registration
year, of which $60 must be paid to the registrar and the remaining $15 is payable as sales
tax on motor vehicles under section 297B.035. For each additional plate, the dealer shall
pay the registrar a fee of $25 and a sales tax on motor vehicles of $15 per registration year.
The registrar shall deposit the tax in the state treasury to be credited as provided in section
297B.09. Replacement new text begin dealer new text end plates are subject to the fees in section 168.12. Motor vehicles,
new or used, owned by the motor vehicle dealership and bearing the number plate, except
vehicles leased to the user who is not an employee of the dealer during the term of the lease,
held for hire, or customarily used by the dealer as a tow truck, service truck, or parts vehicle,
may be driven upon the streets and highways of this state:

(1) by the motor vehicle dealer or dealer's spouse, or any full-time employee of the motor
vehicle dealer for either private or business purposes;

(2) by a part-time employee when the use is directly related to a particular business
transaction of the dealer;

(3) for demonstration purposes by any prospective buyer for a period of 48 hours or in
the case of a truck, truck-tractor, or semitrailer, for a period of seven days; or

(4) in a promotional event that lasts no longer than four days in which at least three
motor vehicles are involved.

(b) new text begin A used motor vehicle with current Minnesota registration but not bearing the number
plate described in paragraph (a) and held out for sale by a motor vehicle dealer is governed
by subdivision 17a.
new text end

new text begin (c) new text end A new or used motor vehicle sold by the motor vehicle dealer and bearing the motor
vehicle dealer's number plate may be driven upon the public streets and highways for a
period of 72 hours by the buyer for either of the following purposes: (1) removing the vehicle
from this state for registration in another state, or (2) permitting the buyer to use the motor
vehicle before the buyer receives number plates pursuant to registration. Use of a motor
vehicle by the buyer under clause (2) before the buyer receives number plates pursuant to
registration constitutes a use of the public streets or highways for the purpose of the time
requirements for registration of motor vehicles.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2022, section 168.27, is amended by adding a subdivision to
read:

new text begin Subd. 17a. new text end

new text begin Dealers; duplicate or replacement plates. new text end

new text begin (a) For purposes of this
subdivision, "motor vehicle dealer" has the meaning given in section 168.002, subdivision
6; "duplicate or replacement plates" means replacement plates issued under section 168.29;
and "registration" has the meaning given in section 168A.01, subdivision 16c.
new text end

new text begin (b) Notwithstanding section 168A.11, subdivision 1, every licensed motor vehicle dealer
seeking duplicate or replacement plates for a motor vehicle held for resale and currently
registered in Minnesota under section 168.12 must submit to the department an application
for a certificate of title under section 168A.05.
new text end

new text begin (c) Unless a certificate of title has been issued naming the motor vehicle dealer as the
owner under section 168A.05, used motor vehicles with current registration in Minnesota
and held for sale by a motor vehicle dealer bearing duplicate or replacement plates must
not be driven upon the streets and highways of this state by:
new text end

new text begin (1) the motor vehicle dealer or dealer's spouse for private purposes; or
new text end

new text begin (2) a full-time or part-time employee of the motor vehicle dealer when the use is not
directly related to a particular business transaction of the dealer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2022, section 168A.02, subdivision 2, is amended to read:

Subd. 2.

Vehicle registration without title.

new text begin Except as provided in section 168.27,
subdivision 17a, new text end the department shall not register or renew the registration of a vehicle for
which a certificate of title is required unless a certificate of title has been issued to the owner,
an application therefor has been delivered to and approved by the department, or the vehicle
has a Minnesota certificate of title and is being held for resale by a dealer under section
168A.11.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2022, section 168A.03, subdivision 2, is amended to read:

Subd. 2.

Dealers.

new text begin Except as provided in section 168.27, subdivision 17a, new text end no certificate
of title need be obtained for a vehicle owned by a manufacturer or dealer and held for sale,
even though incidentally moved on the highway or used pursuant to section 168.27 new text begin ,
subdivisions 16 and 17, new text end or 168.28, or a vehicle used by a manufacturer solely for testing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2022, section 168A.11, subdivision 1, is amended to read:

Subdivision 1.

Requirements upon subsequent transfer; service fee.

(a) A dealer who
buys a vehicle and holds it for resale need not apply for a certificate of title new text begin , except as
provided under section 168.27, subdivision 17a new text end . Upon transferring the vehicle to another
person, other than by the creation of a security interest, the dealer shall promptly execute
the assignment and warranty of title by a dealer, showing the names and addresses of the
transferee and of any secured party holding a security interest created or reserved at the
time of the resale, and the date of the security agreement in the spaces provided therefor on
the certificate of title or secure reassignment.

(b) If a dealer elects to apply for a certificate of title on a vehicle held for resale, the
dealer need not register the vehicle new text begin except as provided in section 168.27, subdivision 17a.
If a dealer elects to apply for a certificate of title on a vehicle held for resale but is not
requesting duplicate or replacement plates under section 168.12, the dealer need not register
the vehicle new text end but shall pay one month's registration tax. If a dealer elects to apply for a
certificate of title on a vehicle held for resale, the department shall not place any legend on
the title that no motor vehicle sales tax was paid by the dealer, but may indicate on the title
whether the vehicle is a new or used vehicle.

(c) With respect to motor vehicles subject to the provisions of section 325E.15, the dealer
shall also, in the space provided therefor on the certificate of title or secure reassignment,
state the true cumulative mileage registered on the odometer or that the exact mileage is
unknown if the odometer reading is known by the transferor to be different from the true
mileage.

(d) The transferee shall complete the application for title section on the certificate of
title or separate title application form prescribed by the department. The dealer shall mail
or deliver the certificate to the registrar or deputy registrar with the transferee's application
for a new certificate and appropriate taxes and fees, within ten business days.

(e) With respect to vehicles sold to buyers who will remove the vehicle from this state,
the dealer shall remove any license plates from the vehicle, issue a 31-day temporary permit
pursuant to section 168.091, and notify the registrar within 48 hours of the sale that the
vehicle has been removed from this state. The notification must be made in an electronic
format prescribed by the registrar. The dealer may contract with a deputy registrar for the
notification of sale to an out-of-state buyer. The deputy registrar may charge a fee of $7 per
transaction to provide this service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end