1.1 	A bill for an act
1.2 	relating to commerce; regulating the purchase and lease of new ambulances; 
1.3 	establishing a manufacturer's duty to repair, refund, or replace;amending 
1.4 	Minnesota Statutes 2004, section 325F.665, subdivision 1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 325F.665, subdivision 1, is amended to 
1.7 	read:
1.8 		Subdivision 1.Definitions. (a) For the purposes of this section, the ~~following~~ terms 
1.9 	in paragraphs (b) to (i) have the meanings given them~~:~~.
1.10 	~~(a)~~(b) "Consumer" means the purchaser or lessee, other than for purposes of resale 
1.11 	or sublease, of a new motor vehicle used for personal, family, or household purposes at 
1.12 	least 40 percent of the time, and a person to whom the new motor vehicle is transferred 
1.13 	for the same purposes during the duration of an express warranty applicable to the motor 
1.14 	vehicle~~;~~. The term also includes a new motor vehicle of the type specified in paragraph (f), 
1.15 	clause (3), purchased or leased by an ambulance service licensed under chapter 144E, and 
1.16 	a person to whom the ambulance is transferred for the same purpose during the duration of 
1.17 	any applicable express warranty.
1.18 	~~(b)~~(c) "Manufacturer" means a person engaged in the business of manufacturing, 
1.19 	assembling or distributing motor vehicles, who will, under normal business conditions 
1.20 	during the year, manufacture, assemble or distribute to dealers at least ten new motor 
1.21 	vehicles~~;~~.
1.22 	~~(c)~~(d) "Manufacturer's express warranty" and "warranty" mean the written warranty 
1.23 	of the manufacturer of a new motor vehicle of its condition and fitness for use, including 
1.24 	any terms or conditions precedent to the enforcement of obligations under that warranty~~;~~.
2.1 	~~(d)~~(e) "Lease" means a contract in the form of a lease or bailment for the use of 
2.2 	personal property by a natural person for a period of time exceeding four months, used for 
2.3 	personal, family, or household purposes at least 40 percent of the time, whether or not the 
2.4 	lessee has the option to purchase or otherwise become the owner of the property at the 
2.5 	expiration of the lease~~;~~.
2.6 	~~(e)~~(f) "Motor vehicle" means (1) a passenger automobile as defined in section  
2.7 	168.011, subdivision 7, including pickup trucks and vans, ~~and~~ (2) the self-propelled 
2.8 	motor vehicle chassis or van portion of recreational equipment as defined in section  
2.9 	168.011, subdivision 25, which is sold or leased to a consumer in this state~~;~~, and (3) the 
2.10 	self-propelled motor vehicle chassis or van portion of an ambulance as defined in section 
2.11 	144E.001, subdivision 2.
2.12 	~~(f)~~(g) "Informal dispute settlement mechanism" means an arbitration process 
2.13 	or procedure by which the manufacturer attempts to resolve disputes with consumers 
2.14 	regarding motor vehicle nonconformities and repairs that arise during the vehicle's 
2.15 	warranty period~~;~~.
2.16 	~~(g)~~(h) "Motor vehicle lessor" means a person who holds title to a motor vehicle 
2.17 	leased to a lessee under a written lease agreement or who holds the lessor's rights under 
2.18 	such agreement~~; and~~.
2.19 	~~(h)~~(i) "Early termination costs" means expenses and obligations incurred by a 
2.20 	motor vehicle lessor as a result of an early termination of a written lease agreement and 
2.21 	surrender of a motor vehicle to a manufacturer under subdivision 4, including penalties 
2.22 	for prepayment of finance arrangements.

2.23 	Sec. 2. EFFECTIVE DATE; APPLICATION.
 2.24 	Section 1 is effective August 1, 2006, and applies to new motor vehicle sales and 
2.25 	leases made on or after that date.