1.1                          A bill for an act 
  1.2             relating to motor vehicles; requiring vehicle buyer to 
  1.3             notify registrar of motor vehicles of vehicle transfer 
  1.4             within ten days; imposing fees and penalties; 
  1.5             appropriating money; amending Minnesota Statutes 1994, 
  1.6             sections 168.101, subdivision 2; 168.11, subdivision 
  1.7             3; 168.15; 168.17; 168A.05, subdivision 5; and 
  1.8             168A.10, subdivisions 1 and 2; proposing coding for 
  1.9             new law in Minnesota Statutes, chapter 168; repealing 
  1.10            Minnesota Statutes 1994, section 168A.10, subdivision 
  1.11            6. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1994, section 168.101, 
  1.14  subdivision 2, is amended to read: 
  1.15     Subd. 2.  [UNLAWFUL TRANSFER TO MINOR.] Any person who 
  1.16  knowingly sells or in any manner knowingly transfers title of a 
  1.17  passenger automobile or truck to a person who is prohibited from 
  1.18  owning a passenger automobile or truck under the provisions of 
  1.19  subdivision 1 shall be guilty of a misdemeanor. 
  1.20     Subd. 2a.  [FAILURE TO SEND TO REGISTRAR WITHIN TEN DAYS.] 
  1.21  Any person who knowingly fails to mail in the application for 
  1.22  registration or transfer with appropriate taxes and fees to the 
  1.23  registrar of motor vehicles or otherwise fails to submit said 
  1.24  forms and remittance to the registrar within 14 ten days 
  1.25  following date of sale shall be guilty of a misdemeanor.  
  1.26     Sec. 2.  Minnesota Statutes 1994, section 168.11, 
  1.27  subdivision 3, is amended to read: 
  1.28     Subd. 3.  If the registrar fails to mail to the registered 
  2.1   owner of a motor vehicle a notification of renewal for the motor 
  2.2   vehicle at least 30 days before the expiration of the vehicle's 
  2.3   registration, and all past due taxes and fees have been paid, 
  2.4   the registrar must provide at no charge a written statement to 
  2.5   that effect to the registered owner at the owner's request.  The 
  2.6   registrar must retain in the registrar's files a record 
  2.7   sufficient to demonstrate whether any owner of a registered 
  2.8   motor vehicle has been notified by mail of the renewal of the 
  2.9   registration.  The registrar shall mail, with each notification 
  2.10  of renewal mailed in 1996, a "Notice of Sale" in postcard form, 
  2.11  which contains the vehicle's title number and vehicle 
  2.12  identification number, with sufficient space for the owner to 
  2.13  record the name, address, and driver's license number of a 
  2.14  purchaser, the vehicle's purchase price, and its date of sale.  
  2.15  The form must include clear instructions regarding the owner's 
  2.16  responsibility to complete and return the form pursuant to 
  2.17  section 168A.10, subdivision 1. 
  2.18     Sec. 3.  Minnesota Statutes 1994, section 168.15, is 
  2.19  amended to read: 
  2.20     168.15 [RIGHTS AS TO REGISTRATION CERTIFICATES AND NUMBER 
  2.21  PLATES.] 
  2.22     Upon the transfer of ownership, destruction, theft, 
  2.23  dismantling as such, or the permanent removal by the owner 
  2.24  thereof from this state of any motor vehicle registered in 
  2.25  accordance with the provisions of this chapter, the right of the 
  2.26  owner of such vehicle to use the registration certificate and 
  2.27  number plates assigned such vehicle shall expire, and such 
  2.28  certificate and any existing plates shall be, by such owner, 
  2.29  forthwith returned, with transportation prepaid, to the 
  2.30  registrar with a signed notice of the date and manner of 
  2.31  termination of ownership, giving the name and post office 
  2.32  address, with street and number, if in a city, of the person to 
  2.33  whom transferred.  No fee may be charged for a return of plates 
  2.34  under this section.  When the ownership of a motor vehicle shall 
  2.35  be transferred to another who shall forthwith register the same 
  2.36  in the other's name, the registrar may permit the manual 
  3.1   delivery of such plates to the new owner of such vehicle.  When 
  3.2   seeking to become the owner by gift, trade, or purchase of any 
  3.3   vehicle for which a registration certificate has been 
  3.4   theretofore issued under the provisions of this chapter, a 
  3.5   person shall join with the registered owner in transmitting with 
  3.6   the application the registration certificate, with the 
  3.7   assignment and notice of sale duly executed upon the reverse 
  3.8   side thereof, or, in case of loss of such certificate, with such 
  3.9   proof of loss by sworn statement, in writing, as shall be 
  3.10  satisfactory to the registrar.  Upon the transfer of any motor 
  3.11  vehicle by a manufacturer or dealer, for use within the state, 
  3.12  whether by sale, lease, or otherwise, such manufacturer or 
  3.13  dealer shall, within seven ten days after such transfer, file 
  3.14  with the registrar a notice or report containing the date of 
  3.15  such transfer, a description of such motor vehicles, and the 
  3.16  name, street and number of residence, if in a city, and the post 
  3.17  office address of the transferee, and shall transmit therewith 
  3.18  the transferee's application for registration thereof. 
  3.19     Upon the transfer of any automobile engine or motor, except 
  3.20  a new engine or motor, transferred with intent that the same be 
  3.21  installed in a new automobile, and whether such transfer be made 
  3.22  by a manufacturer or dealer, or otherwise, and whether by sale, 
  3.23  lease or otherwise, the transferor shall, within two days after 
  3.24  such transfer, file with the registrar a notice or report 
  3.25  containing the date of such transfer and a description, together 
  3.26  with the maker's number of the engine or motor, and the name and 
  3.27  post office address of the purchaser, lessee, or other 
  3.28  transferee. 
  3.29     Sec. 4.  Minnesota Statutes 1994, section 168.17, is 
  3.30  amended to read: 
  3.31     168.17 [SUSPENSION OF REGISTRATION.] 
  3.32     All registrations and issue of number plates shall be 
  3.33  subject to amendment, suspension, modification or revocation by 
  3.34  the registrar summarily for any violation of or neglect to 
  3.35  comply with the provisions of this chapter or when the 
  3.36  transferee fails to comply with section 168A.10, subdivision 2, 
  4.1   within 30 days of the date of sale.  In any case where the 
  4.2   proper registration of a motor vehicle is dependent upon 
  4.3   procuring information entailing such delay as to unreasonably 
  4.4   deprive the owner of the use of the motor vehicle, the registrar 
  4.5   may issue a tax receipt and plates conditionally.  In any case 
  4.6   when revoking a registration for cause, the registrar shall have 
  4.7   authority to demand the return of the number plates and 
  4.8   registration certificates, and, if necessary, to seize the 
  4.9   number plates issued for such registration. 
  4.10     Sec. 5.  [168.301] [VEHICLE TRANSFER DEADLINES; FEES; 
  4.11  SANCTIONS.] 
  4.12     Subdivision 1.  [SURRENDER PLATES AND ASSIGN TAX PAID.] On 
  4.13  transferring a motor vehicle, the tranferor shall surrender the 
  4.14  registration plates and assign the registration tax paid to the 
  4.15  credit of the transferee. 
  4.16     Subd. 2.  [TEN DAYS TO FILE.] The tranferee's rights to the 
  4.17  transferred vehicle's registration plates and credit for taxes 
  4.18  paid on the vehicle expire after ten days have elapsed from the 
  4.19  date of transfer unless the transferee has executed and 
  4.20  delivered to the department an application for a new certificate 
  4.21  of title as provided under section 168A.10, subdivision 2.  
  4.22     Subd. 3.  [LATE FEE.] In addition to any fee or tax 
  4.23  otherwise authorized or imposed upon the transfer of title for a 
  4.24  motor vehicle, a transferee who has failed to execute and 
  4.25  deliver to the department an application for new certificate of 
  4.26  title, as provided under section 168A.10, subdivision 2, within 
  4.27  14 days of assignment, shall pay a $2 fee to the registrar. 
  4.28     Subd. 4.  [REINSTATEMENT FEE.] When the commissioner has 
  4.29  suspended an owner's registration because the transferee has 
  4.30  failed to execute and deliver an application for a new 
  4.31  certificate of title within ten days as provided in subdivision 
  4.32  2, the transferee shall pay a $5 fee before the registration is 
  4.33  reinstated. 
  4.34     Subd. 5.  [VERIFICATION OF COMPLIANCE.] A person does not 
  4.35  violate this section or section 168.09, subdivision 1, by reason 
  4.36  of suspension, if the person provides verification from the 
  5.1   registrar that the title transfer with fees and taxes were filed 
  5.2   with the registrar prior to the alleged violation of this 
  5.3   section or section 168.09, subdivision 1, or that the vehicle 
  5.4   was purchased from a licensed Minnesota dealer.  The 
  5.5   verification of compliance must be presented to the appropriate 
  5.6   law enforcement agency within seven days after the date of the 
  5.7   citation or to the court on or before the date set for 
  5.8   appearance. 
  5.9      Subd. 6.  [REGISTRATION SUSPENSION.] The commissioner of 
  5.10  public safety may suspend the registration of any owner who 
  5.11  violates this section. 
  5.12     Sec. 6.  Minnesota Statutes 1994, section 168A.05, 
  5.13  subdivision 5, is amended to read: 
  5.14     Subd. 5.  [ASSIGNMENT AND WARRANTY OF TITLE FORMS.] (a) The 
  5.15  certificate of title shall contain forms: 
  5.16     (1) for assignment and warranty of title by the owner, and 
  5.17  for; 
  5.18     (2) for assignment and warranty of title by a dealer, and 
  5.19  shall contain forms for applications; 
  5.20     (3) to apply for a certificate of title by a transferee, 
  5.21  and the naming of; 
  5.22     (4) to name a secured party, and shall include; and 
  5.23     (5) language necessary to implement to make the disclosure 
  5.24  required by section 325F.6641. 
  5.25     (b) The certificate of title must also include a form that 
  5.26  contains the vehicle's title number and vehicle identification 
  5.27  number with sufficient space for the owner to record the name, 
  5.28  address, and driver's license number of a purchaser, the 
  5.29  vehicle's purchase price, and its date of sale.  The form must 
  5.30  be entitled "Notice of Sale" and must include clear instructions 
  5.31  regarding the owner's responsibility to complete and return the 
  5.32  form pursuant to section 168A.10, subdivision 1. 
  5.33     Sec. 7.  Minnesota Statutes 1994, section 168A.10, 
  5.34  subdivision 1, is amended to read: 
  5.35     Subdivision 1.  [ASSIGNMENT AND WARRANTY OF TITLE; MILEAGE; 
  5.36  NOTICE OF SALE.] If an owner transfers interest in a vehicle 
  6.1   other than by the creation of a security interest, the owner 
  6.2   shall at the time of the delivery of the vehicle execute an 
  6.3   assignment and warranty of title to the transferee and shall 
  6.4   state the actual selling price in the space provided therefor on 
  6.5   the certificate.  The owner shall also complete the "Notice of 
  6.6   Sale," by recording the name, address, and driver's license 
  6.7   number of the purchaser, the vehicle's purchase price, and its 
  6.8   date of sale.  The owner shall return this form to the 
  6.9   department within seven days of the date of sale.  With respect 
  6.10  to motor vehicles subject to the provisions of section 325E.15, 
  6.11  the transferor shall also, in the space provided therefor on the 
  6.12  certificate, state the true cumulative mileage registered on the 
  6.13  odometer or that the actual mileage is unknown if the odometer 
  6.14  reading is known by the transferor to be different from the true 
  6.15  mileage.  The transferor shall cause the certificate and 
  6.16  assignment to be delivered to the transferee immediately. 
  6.17     Sec. 8.  Minnesota Statutes 1994, section 168A.10, 
  6.18  subdivision 2, is amended to read: 
  6.19     Subd. 2.  [APPLICATION FOR NEW CERTIFICATE.] Except as 
  6.20  provided in section 168A.11, the transferee shall, within ten 
  6.21  days after assignment to the transferee of the vehicle title 
  6.22  certificate, execute the application for a new certificate of 
  6.23  title in the space provided therefor on the certificate, and 
  6.24  cause the certificate of title to be mailed or delivered to the 
  6.25  department.  Failure of the transferee to comply with this 
  6.26  subdivision shall result in the revocation of the vehicle's 
  6.27  registration under section 168.17. 
  6.28     Sec. 9.  [APPROPRIATION.] 
  6.29     $343,000 is appropriated from the general fund to the 
  6.30  commissioner of public safety to pay the cost of the notices 
  6.31  required by this act, to be available until June 30, 1997. 
  6.32     Sec. 10.  [REPEALER.] 
  6.33     Minnesota Statutes 1994, section 168A.10, subdivision 6, is 
  6.34  repealed. 
  6.35     Sec. 11.  [EFFECTIVE DATE.] 
  6.36     Sections 2, 6, and 7 are effective January 1, 1996.  
  7.1   Sections 4 and 8 are effective for sales on and after August 1, 
  7.2   1995.