1.1 	A bill for an act
1.2 	relating to natural resources; providing for suspension of certain registrations 
1.3 	and licenses as a penalty for payment with a dishonored check; providing for 
1.4 	delivery of a watercraft certificate of title to the owner; providing penalties;
1.5 	amending Minnesota Statutes 2004, sections 84.796; 84.805; 84.88, by adding 
1.6 	a subdivision; 84.929; 86B.401, by adding a subdivision; 86B.885; 86B.895, 
1.7 	subdivision 2, by adding a subdivision.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 84.796, is amended to read:
1.10 	84.796 PENALTIES.
1.11 	(a) A person who violates a provision of section  84.788,  84.789,  84.793, or  84.795 is 
1.12 	guilty of a misdemeanor. 
1.13 	(b) A person who violates a provision of a rule adopted under section  84.79 is guilty 
1.14 	of a petty misdemeanor. 
1.15 	(c) The commissioner shall suspend the registration of an individual's off-highway 
1.16 	motorcycle if the individual paid for the registration by means of a dishonored check to a 
1.17 	deputy registrar of motor vehicles. The suspension continues until the deputy registrar 
1.18 	of motor vehicles informs the commissioner that the dishonored check has been paid in 
1.19 	full. The commissioner shall enter into procedural contracts with deputy registrars for 
1.20 	purposes of this paragraph.

1.21 	Sec. 2. Minnesota Statutes 2004, section 84.805, is amended to read:
1.22 	84.805 PENALTIES.
1.23 	(a) A person who violates any provision of sections  84.797 to  84.804 is guilty of a 
1.24 	misdemeanor. 
2.1 	(b) The commissioner shall suspend the registration of an individual's off-road 
2.2 	vehicle if the individual paid for the registration by means of a dishonored check to a 
2.3 	deputy registrar of motor vehicles. The suspension continues until the deputy registrar 
2.4 	of motor vehicles informs the commissioner that the dishonored check has been paid in 
2.5 	full. The commissioner shall enter into procedural contracts with deputy registrars for 
2.6 	purposes of this paragraph.

2.7 	Sec. 3. Minnesota Statutes 2004, section 84.88, is amended by adding a subdivision to 
2.8 	read:
2.9 		Subd. 3.Penalty; dishonored check. The commissioner shall suspend the 
2.10 	registration of an individual's snowmobile under section 84.82 or an individual's 
2.11 	snowmobile state trail sticker under section 84.8205 if the individual paid for the 
2.12 	registration or sticker by means of a dishonored check to a deputy registrar of motor 
2.13 	vehicles. The suspension continues until the deputy registrar of motor vehicles informs 
2.14 	the commissioner that the dishonored check has been paid in full. The commissioner shall 
2.15 	enter into procedural contracts with deputy registrars for purposes of this subdivision.

2.16 	Sec. 4. Minnesota Statutes 2004, section 84.929, is amended to read:
2.17 	84.929 PENALTIES.
2.18 	(a) Any person who violates any provision of sections  84.92 to  84.928 or rules of the 
2.19 	commissioner is guilty of a misdemeanor. 
2.20 	(b) The commissioner shall suspend the registration of an individual's all-terrain 
2.21 	vehicle if the individual paid for the registration by means of a dishonored check to a 
2.22 	deputy registrar of motor vehicles. The suspension continues until the deputy registrar 
2.23 	of motor vehicles informs the commissioner that the dishonored check has been paid in 
2.24 	full. The commissioner shall enter into procedural contracts with deputy registrars for 
2.25 	purposes of this paragraph.

2.26 	Sec. 5. Minnesota Statutes 2004, section 86B.401, is amended by adding a subdivision 
2.27 	to read:
2.28 		Subd. 14.Penalty; dishonored check. The commissioner shall suspend the license 
2.29 	of an individual's watercraft if the individual paid for the license by means of a dishonored 
2.30 	check to a deputy registrar of motor vehicles. The suspension continues until the deputy 
2.31 	registrar of motor vehicles informs the commissioner that the dishonored check has been 
2.32 	paid in full. The commissioner shall enter into procedural contracts with deputy registrars 
2.33 	for purposes of this subdivision.

3.1 	Sec. 6. Minnesota Statutes 2004, section 86B.885, is amended to read:
3.2 	86B.885 OWNER-CREATED SECURITY INTEREST.
3.3 	Paragraphs (a) to (d) apply if an owner creates a security interest in a titled watercraft.
3.4 	(a) The owner shall immediately execute the application in the space provided on the 
3.5 	certificate of title or on a separate form prescribed by the commissioner, show the name 
3.6 	and address of the secured party on the certificate, and have the certificate, application, 
3.7 	and required fee delivered to the secured party.
3.8 	(b) The secured party shall immediately have the certificate, application, and 
3.9 	required fee mailed or delivered to the commissioner.
3.10 	(c) Upon request of the owner or subordinate secured party, a secured party in 
3.11 	possession of the certificate of title shall either (1) mail or deliver the certificate to the 
3.12 	subordinate secured party for delivery to the commissioner, or (2) upon receiving from the 
3.13 	subordinate secured party the owner's application and the required fee, mail or deliver 
3.14 	them to the commissioner with the certificate. The delivery of the certificate does not 
3.15 	affect the rights of the first secured party under the security agreement.
3.16 	(d) Upon receiving the certificate of title, application, and required fee, the 
3.17 	commissioner shall either endorse on the certificate or issue a new certificate containing 
3.18 	the name and address of the new secured party, and mail or deliver the certificate to the 
3.19 	first secured party named on it owner. The secured party or parties shall be notified that 
3.20 	the security interest has been recorded.

3.21 	Sec. 7. Minnesota Statutes 2004, section 86B.895, subdivision 2, is amended to read:
3.22 		Subd. 2.Release of subordinate security interest. Upon the satisfaction of a 
3.23 	security interest in a watercraft for which the certificate of title is in the possession 
3.24 	of a prior secured party, the secured party whose security interest is satisfied shall 
3.25 	execute a release in the form prescribed by the commissioner and, within 15 days after 
3.26 	satisfaction, deliver the release to the owner or a person who delivers to the secured 
3.27 	party an authorization from the owner to receive it. The secured party in possession of the 
3.28 	certificate of title shall either deliver the certificate to the owner, or the person authorized 
3.29 	by the owner, for delivery to the commissioner, or upon receipt of the release, mail 
3.30 	or deliver it with the certificate to the commissioner, who shall release the subordinate 
3.31 	secured party's rights on the certificate or issue a new certificate.

3.32 	Sec. 8. Minnesota Statutes 2004, section 86B.895, is amended by adding a subdivision 
3.33 	to read:
4.1 		Subd. 3.Certificate with owner. Upon the satisfaction of a security interest in a 
4.2 	watercraft for which the certificate of title is in the possession of the owner, the secured 
4.3 	party shall, within 15 days, execute a release of security interest in the format prescribed 
4.4 	by the commissioner and mail or deliver the notification with release to the owner or 
4.5 	any person who delivers to the secured party an authorization from the owner to receive 
4.6 	the release.