1.1                          A bill for an act 
  1.2             relating to motor vehicles; authorizing suspension of 
  1.3             a vehicle's registration in certain circumstances; 
  1.4             requiring a detachable postcard to be provided in a 
  1.5             vehicle's certificate of title and completed under 
  1.6             certain circumstances; appropriating money; amending 
  1.7             Minnesota Statutes 1998, sections 168.17; 168.301, 
  1.8             subdivisions 3 and 4; 168A.05, subdivision 5; 168A.10, 
  1.9             subdivisions 1, 2, and 5; and 168A.30, subdivision 2. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1998, section 168.17, is 
  1.12  amended to read: 
  1.13     168.17 [SUSPENSION OF REGISTRATION.] 
  1.14     All registrations and issue of number plates shall be 
  1.15  subject to amendment, suspension, modification or revocation by 
  1.16  the registrar summarily for any violation of or neglect to 
  1.17  comply with the provisions of this chapter or when the 
  1.18  transferee fails to comply with section 168A.10, subdivision 2, 
  1.19  within 30 days of the date of sale.  In any case where the 
  1.20  proper registration of a motor vehicle is dependent upon 
  1.21  procuring information entailing such delay as to unreasonably 
  1.22  deprive the owner of the use of the motor vehicle, the registrar 
  1.23  may issue a tax receipt and plates conditionally.  In any case 
  1.24  when revoking a registration for cause, the registrar shall have 
  1.25  authority to demand the return of the number plates and 
  1.26  registration certificates, and, if necessary, to seize the 
  1.27  number plates issued for such registration. 
  2.1      Sec. 2.  Minnesota Statutes 1998, section 168.301, 
  2.2   subdivision 3, is amended to read: 
  2.3      Subd. 3.  [LATE FEE.] In addition to any fee or tax 
  2.4   otherwise authorized or imposed upon the transfer of title for a 
  2.5   motor vehicle, the commissioner of public safety shall impose a 
  2.6   $2 additional fee for failure to deliver a title transfer within 
  2.7   14 10 days. 
  2.8      Sec. 3.  Minnesota Statutes 1998, section 168.301, 
  2.9   subdivision 4, is amended to read: 
  2.10     Subd. 4.  [REINSTATEMENT FEE.] When the commissioner has 
  2.11  suspended license plates on a vehicle because the transferee has 
  2.12  failed to deliver file the title certificate within ten 30 days 
  2.13  as provided in subdivision 1, the transferee shall pay a $5 $10 
  2.14  fee before the registration is reinstated. 
  2.15     Sec. 4.  Minnesota Statutes 1998, section 168A.05, 
  2.16  subdivision 5, is amended to read: 
  2.17     Subd. 5.  [ASSIGNMENT AND WARRANTY OF TITLE FORMS.] (a) The 
  2.18  certificate of title shall contain forms: 
  2.19     (1) for assignment and warranty of title by the owner, and 
  2.20  for; 
  2.21     (2) for assignment and warranty of title by a dealer, and 
  2.22  shall contain forms for applications; 
  2.23     (3) to apply for a certificate of title by a transferee, 
  2.24  and the naming of; 
  2.25     (4) to name a secured party, and shall include; and 
  2.26     (5) language necessary to implement to make the disclosure 
  2.27  required by section 325F.6641.  
  2.28     (b) The certificate of title must also include a separate 
  2.29  detachable postcard entitled "Notice of Sale" that contains, but 
  2.30  is not limited to, the vehicle's title number and vehicle 
  2.31  identification number.  The postcard must include sufficient 
  2.32  space for the owner to record the purchaser's name, address, and 
  2.33  driver's license number, if any, and the date of sale.  The 
  2.34  Notice of Sale must include clear instructions regarding the 
  2.35  owner's responsibility to complete and return the form, or to 
  2.36  transmit the required information electronically in a form 
  3.1   acceptable to the commissioner, pursuant to section 168A.10, 
  3.2   subdivision 1. 
  3.3      Sec. 5.  Minnesota Statutes 1998, section 168A.10, 
  3.4   subdivision 1, is amended to read: 
  3.5      Subdivision 1.  [ASSIGNMENT AND WARRANTY OF TITLE; MILEAGE; 
  3.6   NOTICE OF SALE.] If an owner transfers interest in a vehicle 
  3.7   other than by the creation of a security interest, the owner 
  3.8   shall at the time of the delivery of the vehicle execute an 
  3.9   assignment and warranty of title to the transferee and shall 
  3.10  state the actual selling price in the space provided therefor on 
  3.11  the certificate.  Within ten days of the date of sale, other 
  3.12  than a sale by or to a licensed motor vehicle dealer, the owner 
  3.13  shall:  (1) complete, detach, and return to the department the 
  3.14  postcard on the certificate entitled "Notice of Sale," if one is 
  3.15  provided, including the transferee's name, address, and driver's 
  3.16  license number, if any, and the date of sale; or (2) transmit 
  3.17  this information electronically in a form acceptable to the 
  3.18  commissioner.  With respect to motor vehicles subject to the 
  3.19  provisions of section 325E.15, the transferor shall also, in the 
  3.20  space provided therefor on the certificate, state the true 
  3.21  cumulative mileage registered on the odometer or that the actual 
  3.22  mileage is unknown if the odometer reading is known by the 
  3.23  transferor to be different from the true mileage.  The 
  3.24  transferor shall cause the certificate and assignment to be 
  3.25  delivered to the transferee immediately. 
  3.26     Sec. 6.  Minnesota Statutes 1998, section 168A.10, 
  3.27  subdivision 2, is amended to read: 
  3.28     Subd. 2.  [APPLICATION FOR NEW CERTIFICATE.] Except as 
  3.29  provided in section 168A.11, the transferee shall, within ten 
  3.30  days after assignment to the transferee of the vehicle title 
  3.31  certificate, execute the application for a new certificate of 
  3.32  title in the space provided therefor on the certificate, and 
  3.33  cause the certificate of title to be mailed or delivered to the 
  3.34  department.  Failure of the transferee to comply with this 
  3.35  subdivision shall result in the suspension of the vehicle's 
  3.36  registration under section 168.17. 
  4.1      Sec. 7.  Minnesota Statutes 1998, section 168A.10, 
  4.2   subdivision 5, is amended to read: 
  4.3      Subd. 5.  [COMPLIANCE REMOVES LIABILITY AFTER DELIVERY.] 
  4.4   Except as provided in section 168A.11 and as between the 
  4.5   parties, a transfer by an owner is not effective until the 
  4.6   provisions of this section have been complied with; however, an 
  4.7   owner who has delivered possession of the vehicle to the 
  4.8   transferee and has complied, or within 48 hours after such 
  4.9   delivery does comply, with the provisions of this section 
  4.10  requiring action by the owner is not liable as owner for any 
  4.11  damages resulting from operation of the vehicle after the 
  4.12  delivery of the vehicle to the transferee.  An owner is not 
  4.13  liable who has complied with the provisions of this section 
  4.14  except for completing and returning the Notice of Sale or 
  4.15  transmitting the required information electronically under 
  4.16  subdivision 1. 
  4.17     Sec. 8.  Minnesota Statutes 1998, section 168A.30, 
  4.18  subdivision 2, is amended to read: 
  4.19     Subd. 2.  [WILLFUL OR FRAUDULENT ACTS; FAILURE TO NOTIFY.] 
  4.20  A person is guilty of a misdemeanor who: 
  4.21     (1) with fraudulent intent permits another, not entitled 
  4.22  thereto, to use or have possession of a certificate of title; 
  4.23     (2) willfully fails to mail or deliver a certificate of 
  4.24  title to the department within the time required by sections 
  4.25  168A.01 to 168A.31; 
  4.26     (3) willfully fails to deliver to the transferee a 
  4.27  certificate of title within ten days after the time required by 
  4.28  sections 168A.01 to 168A.31; 
  4.29     (4) commits a fraud in any application for a certificate of 
  4.30  title; 
  4.31     (5) fails to notify the department of any fact as required 
  4.32  by sections 168A.01 to 168A.31, except for the facts included in 
  4.33  the Notice of Sale described in section 168A.10, subdivision 1; 
  4.34  or 
  4.35     (6) willfully violates any other provision of sections 
  4.36  168A.01 to 168A.31 except as otherwise provided in sections 
  5.1   168A.01 to 168A.31. 
  5.2      Sec. 9.  [APPROPRIATION.] 
  5.3      $....... is appropriated for the biennium ending June 30, 
  5.4   2001, from the general fund to the commissioner of public safety 
  5.5   to implement this act. 
  5.6      Sec. 10.  [EFFECTIVE DATE.] 
  5.7      This act is effective July 1, 2000.