1.1                          A bill for an act 
  1.2             relating to motor vehicles; modifying definition of 
  1.3             registered owner of motor vehicle; regulating 
  1.4             temporary registration permits for vehicles; modifying 
  1.5             registration renewal notice procedures; modifying 
  1.6             procedures relating to vehicle transactions with 
  1.7             dealers; clarifying regulatory responsibilities for 
  1.8             vehicle insurance; modifying provisions governing 
  1.9             expiration dates for drivers' licenses and 
  1.10            identification cards; making clarifying changes; 
  1.11            amending Minnesota Statutes 2002, sections 168.011, 
  1.12            subdivision 5a; 168.09, subdivision 7; 168.11, 
  1.13            subdivision 3; 168.187, by adding a subdivision; 
  1.14            168A.11; 169.798, subdivision 1; 171.07, subdivision 
  1.15            4; 171.27. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 2002, section 168.011, 
  1.18  subdivision 5a, is amended to read: 
  1.19     Subd. 5a.  [REGISTERED OWNER.] "Registered owner" means any 
  1.20  person, firm, association, or corporation, other than a secured 
  1.21  party, having title to a motor vehicle.  If a passenger 
  1.22  automobile, as defined in subdivision 7, is under lease for a 
  1.23  term of 180 days or more, the lessee is deemed to be the 
  1.24  registered owner, for purposes of registration only, provided 
  1.25  that the application for renewal of the registration of a 
  1.26  passenger automobile described in this subdivision shall be sent 
  1.27  to the lessor. 
  1.28     Sec. 2.  Minnesota Statutes 2002, section 168.09, 
  1.29  subdivision 7, is amended to read: 
  1.30     Subd. 7.  [DISPLAY OF TEMPORARY PERMIT; SPECIAL PLATES.] 
  2.1   (a) A vehicle that displays a special plate issued under section 
  2.2   168.021; 168.12, subdivision 2, 2a, 2b, 2c, or 2d; 168.123; 
  2.3   168.124; 168.125; 168.126; 168.128; or 168.129 may this chapter 
  2.4   must display a temporary permit in conjunction with expired 
  2.5   registration if: 
  2.6      (1) the current registration tax and all other fees have 
  2.7   been paid in full; and 
  2.8      (2) the plate requires replacement under section 168.12, 
  2.9   subdivision 1, paragraph (b), clause (3) the current 
  2.10  registration tax and all other fees have been paid in full. 
  2.11     (b) A vehicle that is registered under section 168.10 may 
  2.12  display a temporary permit in conjunction with expired 
  2.13  registration, with or without a registration license plate, if: 
  2.14     (1) the license plates have been applied for and the 
  2.15  registration tax has been paid in full, as provided for in 
  2.16  section 168.10; and 
  2.17     (2) the vehicle is used solely as a collector vehicle while 
  2.18  displaying the temporary permit and not used for general 
  2.19  transportation purposes. 
  2.20     (c) A vehicle must display the temporary permit without any 
  2.21  license plate if: 
  2.22     (1) the vehicle is newly registered in the state and the 
  2.23  owner has applied for a special plate issued under this chapter 
  2.24  and paid all current registration taxes and fees; or 
  2.25     (2) the vehicle is currently registered and one or more of 
  2.26  the license plates has been lost and the vehicle currently 
  2.27  displays or has applied to display a special plate issued under 
  2.28  this chapter. 
  2.29     (d) The permit is valid for a period of 60 30 days and can 
  2.30  be renewed for additional 30-day periods if required.  The 
  2.31  permit must be in a form prescribed by the commissioner of 
  2.32  public safety and whenever practicable must be posted upon the 
  2.33  driver's side of the rear window on the inside of the vehicle.  
  2.34  The permit is valid only for the vehicle for which it was issued 
  2.35  to allow a reasonable time for the new license plates to be 
  2.36  manufactured and delivered to the applicant. 
  3.1      Sec. 3.  Minnesota Statutes 2002, section 168.11, 
  3.2   subdivision 3, is amended to read: 
  3.3      Subd. 3.  [RENEWAL.] (a) If the registrar fails to mail to 
  3.4   the registered owner of a motor vehicle a notification of 
  3.5   renewal for the motor vehicle at least 30 days before the 
  3.6   expiration of the vehicle's registration, and all past due taxes 
  3.7   and fees have been paid, the registrar must provide at no charge 
  3.8   a written statement to that effect to the registered owner at 
  3.9   the owner's request.  The registrar must retain in the 
  3.10  registrar's files a record sufficient to demonstrate whether any 
  3.11  owner of a registered motor vehicle has been notified by mail of 
  3.12  the renewal of the registration. 
  3.13     (b) Unless notified otherwise, the registrar shall send 
  3.14  registration notices for leased vehicles to the lessor.  At the 
  3.15  election of the lessor and upon written notice to the registrar, 
  3.16  the registrar shall send the renewal notices for all of the 
  3.17  lessor's leased vehicles directly to their registered owners as 
  3.18  defined in section 168.011, subdivision 5a. 
  3.19     Sec. 4.  Minnesota Statutes 2002, section 168.187, is 
  3.20  amended by adding a subdivision to read: 
  3.21     Subd. 27.  [WHEN REGISTRATION PROHIBITED; PROHIBITION 
  3.22  RESCINDED.] (a) The registrar or designee shall not allow a 
  3.23  vehicle to be registered, shall not issue a license plate, and 
  3.24  shall not issue any permit for a vehicle licensed under this 
  3.25  section if the vehicle is owned by or assigned to a commercial 
  3.26  motor carrier who is under an operations out-of-service order 
  3.27  issued by an agency of the federal government with authority to 
  3.28  take that action under federal law or regulation. 
  3.29     (b) The registrar or designee may suspend, revoke, or 
  3.30  remove the vehicle registration license plate or vehicle 
  3.31  registration permit to a vehicle licensed under this section if 
  3.32  the vehicle is assigned to a commercial motor carrier who is 
  3.33  under an operations out-of-service order issued by an agency of 
  3.34  the federal government with authority to take that action under 
  3.35  federal law or regulation. 
  3.36     (c) If the operations out-of-service order issued by the 
  4.1   federal agency is rescinded, the registrar may reinstate vehicle 
  4.2   registration under this section; provided that registration 
  4.3   taxes and fees have been paid. 
  4.4      Sec. 5.  Minnesota Statutes 2002, section 168A.11, is 
  4.5   amended to read: 
  4.6      168A.11 [PURCHASE OF VEHICLE BY DEALER.] 
  4.7      Subdivision 1.  [APPLICATION UPON SUBSEQUENT TRANSFER.] (a) 
  4.8   If A dealer who buys a vehicle and, holds it for resale and 
  4.9   procures the certificate of title from the owner, and complies 
  4.10  with subdivision 2 hereof, the dealer need not apply for a 
  4.11  certificate of title, but unless applying for salvage title as 
  4.12  required by section 168A.151.  Upon transferring the vehicle to 
  4.13  another person, other than by the creation of a security 
  4.14  interest, the dealer shall promptly execute the assignment and 
  4.15  warranty of title by a dealer, showing the names and addresses 
  4.16  of the transferee and of any secured party holding a security 
  4.17  interest created or reserved at the time of the resale, and the 
  4.18  date of the security agreement in the spaces provided therefor 
  4.19  on the certificate or secure reassignment.  
  4.20     (b) With respect to For motor vehicles subject to the 
  4.21  provisions of section 325E.15, the dealer shall also, in the 
  4.22  space provided therefor on the certificate or secure 
  4.23  reassignment, state (1) the true cumulative mileage registered 
  4.24  on the odometer or (2) that the exact mileage is unknown if the 
  4.25  odometer reading is known by the transferor to be different from 
  4.26  the true mileage.  
  4.27     (c) The transferee shall complete the application for title 
  4.28  section on the certificate of title or separate title 
  4.29  application form prescribed by the department.  The dealer shall 
  4.30  mail or deliver the certificate to the registrar or deputy 
  4.31  registrar with the transferee's application for a new 
  4.32  certificate and appropriate taxes and fees, within ten business 
  4.33  days.  For a vehicle sold to a nonresident and not required by 
  4.34  law to be registered in this state, the dealer shall remove any 
  4.35  license plates from the vehicle and notify the registrar 
  4.36  electronically within 48 hours of the sale.  The registrar shall 
  5.1   issue an electronic receipt that may be printed and used as a 
  5.2   31-day temporary permit without charge, notwithstanding section 
  5.3   168.091.  The dealer may provide to the purchaser all documents 
  5.4   necessary to effect transfer of ownership. 
  5.5      Subd. 2.  [PURCHASE RECEIPT.] A dealer, On buying a vehicle 
  5.6   for which the seller does not present a certificate of title, 
  5.7   shall at the time that is titled or registered in Minnesota, a 
  5.8   dealer, within 48 hours of taking delivery of the 
  5.9   vehicle execute a purchase receipt for the vehicle in a format 
  5.10  designated by the department, and deliver a copy to the seller.  
  5.11  In a format and at a time prescribed by the registrar, the 
  5.12  dealer, shall notify the registrar that the vehicle is being 
  5.13  held for resale by the dealer electronically. 
  5.14     Subd. 3.  [RECORDS.] Every dealer shall maintain for three 
  5.15  years at an established place of business a record in the form 
  5.16  the department prescribes of every vehicle bought, sold, or 
  5.17  exchanged, or received for sale or exchange, which shall must be 
  5.18  open to inspection by a representative of the department or 
  5.19  peace officer during reasonable business hours.  With respect to 
  5.20  For motor vehicles subject to the provisions of section 325E.15, 
  5.21  the record shall must include either the true mileage as stated 
  5.22  by the previous owner or the fact that the previous owner stated 
  5.23  the actual cumulative mileage was unknown; the record also shall 
  5.24  must include either the true mileage the dealer stated upon 
  5.25  transferring the vehicle or the fact the dealer stated the 
  5.26  mileage was unknown. 
  5.27     Sec. 6.  Minnesota Statutes 2002, section 169.798, 
  5.28  subdivision 1, is amended to read: 
  5.29     Subdivision 1.  [AUTHORITY.] The commissioner of public 
  5.30  safety shall have the power and perform the duties imposed by 
  5.31  sections 65B.41 to 65B.71, this section, and sections 169.797 
  5.32  and 169.799, and may adopt rules to implement and provide 
  5.33  effective administration of the provisions requiring security 
  5.34  and governing termination of security. 
  5.35     Sec. 7.  Minnesota Statutes 2002, section 171.07, 
  5.36  subdivision 4, is amended to read: 
  6.1      Subd. 4.  [EXPIRATION.] (a) Except as otherwise provided in 
  6.2   this subdivision, the expiration date of Minnesota 
  6.3   identification cards of applicants under the age of 65 shall be 
  6.4   is the birthday of the applicant in the fourth year following 
  6.5   the date of issuance of the card. 
  6.6      (b) Minnesota identification cards issued to applicants age 
  6.7   65 or over shall be are valid for the lifetime of the applicant. 
  6.8      (c) The expiration date for an Under-21 identification card 
  6.9   is the cardholder's 21st birthday.  The commissioner shall issue 
  6.10  an identification card to a holder of an Under-21 identification 
  6.11  card who applies for the card, pays the required fee, and 
  6.12  presents proof of identity and age, unless the commissioner 
  6.13  determines that the applicant is not qualified for the 
  6.14  identification card. 
  6.15     (d) The commissioner may set an expiration date for an 
  6.16  identification card that is earlier than the date specified in 
  6.17  this subdivision.  An expiration date established under this 
  6.18  paragraph must not be based solely on the age of the 
  6.19  identification card holder. 
  6.20     Sec. 8.  Minnesota Statutes 2002, section 171.27, is 
  6.21  amended to read: 
  6.22     171.27 [EXPIRATION OF LICENSE.] 
  6.23     Subdivision 1.  [AGE 21 AND OLDER.] The expiration date for 
  6.24  each driver's license, other than Under-21 licenses, is the 
  6.25  birthday of the driver in the fourth year following the date of 
  6.26  issuance of the license.  The birthday of the driver shall be is 
  6.27  as indicated on the application for a driver's license provided 
  6.28  in Minnesota Rules, part 7410.0400, or successor rules.  A 
  6.29  license may be renewed on or before expiration or within one 
  6.30  year after expiration upon application, payment of the required 
  6.31  fee, and passing the examination required of all drivers for 
  6.32  renewal.  Driving privileges shall be extended or renewed on or 
  6.33  preceding the expiration date of an existing driver's license 
  6.34  unless the commissioner believes that the licensee is no longer 
  6.35  qualified as a driver.  
  6.36     Subd. 2.  [UNDER-21 LICENSE.] The expiration date for each 
  7.1   Under-21 license shall be is the 21st birthday of the licensee.  
  7.2   Upon the licensee attaining the age of 21 and upon the 
  7.3   application, payment of the required fee, and passing the 
  7.4   examination required of all drivers for renewal, the 
  7.5   commissioner shall issue a driver's license shall be issued 
  7.6   unless the commissioner determines that the licensee is no 
  7.7   longer qualified as a driver. 
  7.8      Subd. 3.  [PROVISIONAL LICENSE.] The expiration date for 
  7.9   each provisional license is two years after the date of 
  7.10  application for the provisional license. 
  7.11     Subd. 4.  [MEMBERS OF THE ARMED FORCES.] Any valid 
  7.12  Minnesota driver's license issued to a person then or 
  7.13  subsequently on active duty with the Armed Forces of the United 
  7.14  States, or the person's spouse, shall continue in full force and 
  7.15  effect without requirement for renewal until 90 days after the 
  7.16  date of the person's discharge from such service, provided that 
  7.17  a spouse's license must be renewed if the spouse is residing 
  7.18  within the state at the time the license expires or within 90 
  7.19  days after the spouse returns to Minnesota and resides within 
  7.20  the state. 
  7.21     Subd. 5.  [COMMISSIONER'S AUTHORITY.] The commissioner may 
  7.22  set an expiration date for a driver's license that is earlier 
  7.23  than the date specified in this section.  An expiration date 
  7.24  established under this subdivision must not be based solely on 
  7.25  the age of the driver.  A license may be renewed on or before 
  7.26  expiration or within one year after expiration upon application, 
  7.27  payment of the required fee, and passing the examination 
  7.28  required of all drivers for renewal.  The commissioner shall 
  7.29  extend or renew driving privileges on or preceding the 
  7.30  expiration date of an existing driver's license unless the 
  7.31  commissioner believes that the licensee is no longer qualified 
  7.32  as a driver.