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HF 1214

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 05/03/2013 05:32pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to commerce; regulating motor vehicles; amending regulation of scrap
metal processing; requiring proof of ownership or hold period for vehicles
purchased for scrap; creating the automated property system; creating criminal
penalties; amending Minnesota Statutes 2012, sections 168.27, subdivisions
1a, 19a, 23; 168A.153, subdivision 3; 325E.21, subdivisions 1, 1a, 3, 6, 8, 9,
by adding subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 168.27, subdivision 1a, is amended to read:


Subd. 1a.

Dealer license categories.

(a) No person shall engage in the business of
selling new motor vehicles or shall offer to sell, solicit, deliver, or advertise the sale of
new motor vehicles without first acquiring a new motor vehicle dealer license.

(b) No person shall engage in the business of selling used motor vehicles or shall
offer to sell, solicit, deliver, or advertise the sale of used motor vehicles without first
acquiring a used motor vehicle dealer license.

(c) No person shall engage in the business of buying or otherwise acquiring vehicles
deleted text begin other than hulksdeleted text end ; or offering to buy or otherwise acquire, or soliciting or advertising the
buying or acquiring of, vehicles deleted text begin other than hulksdeleted text end for processing and selling the metal for
remelting without first acquiring a scrap metal processor license.

deleted text begin For purposes of this paragraph, a "hulk" is a motor vehicle that is incapable, under
its own power, of moving and is incapable of transporting persons or property and has had
valuable used parts removed. Its sole value is its metallic content.
deleted text end

(d) No person shall be primarily engaged in the business of buying or otherwise
acquiring vehicles for the purpose of dismantling the vehicles and selling used parts and
the remaining scrap metals without first acquiring a used vehicle parts dealer license.

(e) No person shall engage in the business of storing and displaying, offering to store
or display, or soliciting or advertising the storing or displaying, for sale, of damaged
or junked vehicles as an agent or escrow agent of an insurance company without first
acquiring a vehicle salvage pool license.

(f) No person shall engage in the business of leasing motor vehicles or shall offer to
lease, solicit or advertise to lease motor vehicles without first acquiring a motor vehicle
lessor license.

(g) No person shall engage in the business of wholesaling motor vehicles to dealers
for resale or shall offer to sell, solicit or advertise the sale of motor vehicles to dealers for
resale without first acquiring a motor vehicle wholesaler license.

(h) No person shall engage in the business of auctioning motor vehicles for more
than one owner at an auction or shall offer to sell, solicit or advertise the sale of motor
vehicles at auction without first acquiring a motor vehicle auctioneer license.

(i) No person shall engage in the business of brokering motor vehicles without first
acquiring a motor vehicle broker's license.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 2.

Minnesota Statutes 2012, section 168.27, subdivision 19a, is amended to read:


Subd. 19a.

Injunction.

The commissioner or a county attorney may institute a civil
action in the name of the state in district court for an injunction prohibiting a violation of
this section and for civil penalties not to exceed $1,000 for each violation of subdivision
new text begin 1a, clause (d) or (e),new text end 2, 3,new text begin 3a,new text end 4, 5a, 6, 7, or 7anew text begin , or section 325E.21new text end . The court, upon
proper proof that the defendant has engaged in a practice prohibited by this section, may
enjoin the future commission of that practice and award civil penalties for violations of
subdivisionnew text begin 1a, clause (d) or (e),new text end 2, 3,new text begin 3a,new text end 4, 5a, 6, 7, or 7anew text begin , or section 325E.21new text end . It is not a
defense to an action that the state may have adequate remedies at law. Service of process
must be as in any other civil suit, except that where a defendant in the action is a natural
person or firm residing outside the state, or is a foreign corporation, service of process
may also be made by personal service outside the state; in the manner provided by section
5.25; or as the court may direct. Process is valid if it satisfies the requirements of due
process of law, whether or not the defendant is doing business in Minnesota regularly or
habitually. Nothing in this subdivision limits the rights or remedies otherwise available to
persons under common law or other statutes of this state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 3.

Minnesota Statutes 2012, section 168.27, subdivision 23, is amended to read:


Subd. 23.

deleted text begin Registrar may file chargesdeleted text end new text begin County or city attorney to prosecutenew text end .

The
deleted text begin registrar or the registrar's appointed inspectors may file charges with thedeleted text end new text begin city or new text end county
attorney new text begin may file charges new text end against any licensee who violates any of the provisions of this
sectionnew text begin or section 325E.21new text end , includingnew text begin ,new text end but not limited to, the grounds for suspension or
revocation set out in subdivision 12.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 4.

Minnesota Statutes 2012, section 168A.153, subdivision 3, is amended to read:


Subd. 3.

Notification on vehicle to be dismantled or destroyed; service fee.

deleted text begin Within the time frames prescribed in subdivisions 1 and 2 of acquiring a vehicle titled and
registered in Minnesota, a dealer shall notify the registrar that the dealership purchased the
vehicle to be dismantled or destroyed.
deleted text end new text begin The dealer must maintain the certificate of title on
the vehicle for three years before destroying the title as prescribed by the commissioner.
new text end The notificationnew text begin under subdivision 1new text end must be made electronically as prescribed by the
registrar. The dealer may contract this service to a deputy registrar and the registrar may
charge a fee not to exceed $7 per transaction to provide this service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 5.

Minnesota Statutes 2012, section 325E.21, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the terms defined in
this subdivision have the meanings given.

(b) "Law enforcement agency" or "agency" means a duly authorized municipal,
county, state, or federal law enforcement agency.

(c) "Person" means an individual, partnership, limited partnership, limited liability
company, corporation, or other entity.

(d) "Scrap metal" means:

(1) wire and cable commonly and customarily used by communication and electric
utilities; and

(2) copper, aluminum, or any other metal purchased primarily for its reuse or
recycling value as raw metal, including metal that is combined with other materials
at the time of purchase.

(e) "Scrap metal dealer" or "dealer" meansnew text begin :
new text end

new text begin (1) any of the following licensees under section 168.27: scrap metal processor, used
vehicle parts dealer, or vehicle salvage pool;
new text end

new text begin (2) a used motor vehicle dealer licensee under section 168.27 who engages in the
business of buying or otherwise acquiring vehicles for dismantling and selling used parts
and remaining scrap materials; and
new text end

new text begin (3)new text end a person engaged in the business of buying or selling scrap metal, or bothdeleted text begin , but doesdeleted text end new text begin .
new text end

new text begin The terms donew text end not include a person engaged exclusively in the business of buying or selling
new deleted text begin ordeleted text end new text begin motor vehicles,new text end used motor vehicles deleted text begin or motor vehicle partsdeleted text end new text begin for resale and in
whole other than as specified in clause (2)
new text end , paper or wood products, rags or furniture, or
secondhand machinery.

new text begin (f) "Interchange file specification format" means the most recent version of the
Minneapolis automated property system interchange file specification format.
new text end

new text begin (g) "Billable transaction fee" means the fee assessed by the automated property
system to the jurisdiction in which a dealer is located.
new text end

new text begin (h) "Hold period" means a period of consecutive business days, excluding Saturdays,
Sundays, and holidays, during which time a motor vehicle may not be scrapped, resold,
dismantled, or destroyed.
new text end

new text begin (i) "Motor vehicle" has the meaning given in section 169.011, subdivision 42.
new text end

new text begin (j) "Proof of identification" means a valid driver's license, valid Minnesota
identification card, or valid driver's license or identification card issued by another state
or a province of Canada, if the document includes the person's photograph, full name,
birth date, and signature.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 6.

Minnesota Statutes 2012, section 325E.21, subdivision 1a, is amended to read:


Subd. 1a.

Purchase or acquisition record required.

(a) Every scrap metal dealer,
including an agent, employee, or representative of the dealer, shall keep a written record at
the time of each purchase or acquisition of scrap metal. The record must include:

(1) an accurate account or description, including the weight if customarily purchased
by weight, of the scrap metal purchased or acquired;

(2) the date, time, and place of the receipt of the scrap metal purchased or acquired;

(3) the name and address of the person selling or delivering the scrap metal;

(4) the number of the check or electronic transfer used to purchase the scrap metal;

new text begin (5) if the scrap metal purchased or acquired is a motor vehicle under subdivision 11,
the dates of the hold period and the payment method under subdivision 3, paragraph (b);
new text end

deleted text begin (5)deleted text end new text begin (6)new text end the number of the seller's or deliverer's driver's license, Minnesota
identification card number, or other identification document number of an identification
document issued for identification purposes by any state, federal, or foreign government if
the document includes the person's photograph, full name, birth date, and signature; deleted text begin and
deleted text end

deleted text begin (6)deleted text end new text begin (7)new text end the license plate number and description of the vehicle used by the person
when delivering the scrap metal, and any identifying marks on the vehicle, such as a
business name, decals, or markings, if applicablenew text begin ; and
new text end

new text begin (8) a statement signed by the seller, under penalty of perjury as provided in section
609.48, attesting that the scrap metal is not stolen and is free of any liens or encumbrances
and the seller has the right to sell it
new text end .

(b) The record, as well as the scrap metal purchased or received, shall at all
reasonable times be open to the inspection of any law enforcement agency.

(c) No record is required for property purchased from merchants, manufacturers or
wholesale dealers, having an established place of business, or of any goods purchased
at open sale from any bankrupt stock, but a bill of sale or other evidence of open or
legitimate purchase of the property shall be obtained and kept by the person, which must
be shown upon demand to any law enforcement agency.

(d) Except as otherwise provided in this section, a scrap metal dealer or the dealer's
agent, employee, or representative may not disclose personal information concerning a
customer without the customer's consent unless the disclosure is made in response to a
request from a law enforcement agency. A scrap metal dealer must implement reasonable
safeguards to protect the security of the personal information and prevent unauthorized
access to or disclosure of the information. For purposes of this paragraph, "personal
information" is any individually identifiable information gathered in connection with a
record under paragraph (a).

new text begin (e) This subdivision expires January 1, 2015.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 7.

Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Purchase or acquisition record required. new text end

new text begin (a) Every scrap metal dealer,
including an agent, employee, or representative of the dealer, shall create a permanent
record written in English, using ink or an electronic record program at the time of each
purchase or acquisition of scrap metal. The record must include:
new text end

new text begin (1) a complete and accurate account or description, including the weight, if
customarily purchased by weight, of the scrap metal purchased or acquired;
new text end

new text begin (2) if the scrap metal purchased or acquired is a motor vehicle, the vehicle
identification number; license plate number, if any, including state of issue and month and
year of validation; and vehicle make, model, and color;
new text end

new text begin (3) the date, time, and place of the receipt of the scrap metal purchased or acquired
and a unique transaction identifier;
new text end

new text begin (4) the deliverer's full name, residence, address, primary telephone number, and an
accurate description, including sex, height, weight, eye color, hair color, and, if known,
race;
new text end

new text begin (5) the amount paid and the number of the check or electronic transfer used to
purchase the scrap metal;
new text end

new text begin (6) if the scrap metal purchased or acquired is a motor vehicle under subdivision 11,
the dates of the hold period and the payment method under subdivision 3, paragraph (b);
new text end

new text begin (7) the identification number and state of issue of the seller's or deliverer's proof of
identification;
new text end

new text begin (8) the license plate number and description of the vehicle used by the person when
delivering the scrap metal, including the vehicle make and model, and any identifying
marks on the vehicle, such as a business name, decals, or markings, if applicable;
new text end

new text begin (9) a digital photograph or single frame image from a video recording that clearly
and accurately depicts the scrap metal offered for sale, including the license plate if
affixed and the scrap metal is a motor vehicle, and a front facial view of the person selling
or delivering the scrap metal. Photographs must be clearly and accurately associated
with their respective record;
new text end

new text begin (10) a statement signed by the seller, under penalty of perjury as provided in section
609.48, attesting that the scrap metal is not stolen and is free of any liens or encumbrances
and the seller has the right to sell it;
new text end

new text begin (11) a duplicate copy of the title, if any, provided by the seller of a motor vehicle; and
new text end

new text begin (12) a duplicate copy of the receipt, which must include at least the following
information: the name and address of the dealer, the date and time the scrap metal was
received by the dealer, an accurate description of the scrap metal, the signature of the
seller, and the amount paid for the scrap metal.
new text end

new text begin (b) The record, as well as the scrap metal purchased or received, shall at all
reasonable times be open to the inspection of any law enforcement agency.
new text end

new text begin (c) The records specified under paragraph (a), clauses (1), (2), (3), and (5), are
required for property purchased from merchants, manufacturers, salvage pools, insurance
companies, rental car companies, financial institutions, charities, dealers licensed under
section 168.27, or wholesale dealers having an established place of business, or of any
goods purchased at open sale from any bankrupt stock.
new text end

new text begin (d) The dealer must provide a copy of the receipt required under paragraph (a),
clause (12), to the seller in every transaction.
new text end

new text begin (e) Law enforcement agencies in the jurisdiction where a dealer is located may
conduct regular and routine inspections to ensure compliance, refer violations to the city
or county attorney for criminal prosecution, and notify the registrar of motor vehicles.
The registrar shall inspect a dealer who holds a license under section 168.27 every 18
months to ensure compliance.
new text end

new text begin (f) Local jurisdictions in which dealers are located are authorized to recover costs
associated with compliance activities under paragraph (e) from the dealer, including
automated property system billable transaction fees.
new text end

new text begin (g) Except as otherwise provided in this section, a scrap metal dealer or the dealer's
agent, employee, or representative may not disclose personal information concerning a
customer without the customer's consent unless the disclosure is made in response to a
request from a law enforcement agency. A scrap metal dealer must implement reasonable
safeguards to protect the security of the personal information and prevent unauthorized
access to or disclosure of the information. For purposes of this paragraph, "personal
information" is any individually identifiable information gathered in connection with a
record under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 8.

Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
to read:


new text begin Subd. 1c. new text end

new text begin Automated property system. new text end

new text begin (a) Dealers must completely and accurately
provide all the record information required in subdivision 1b by transferring it from their
computer to the automated property system, by the close of business each day, using
the interchange file specification format.
new text end

new text begin (b) A dealer who does not have an electronic point-of-sale program may request to
be provided software by the automated property system to record the required information.
If the dealer uses a commercially available electronic point-of-sale program to record the
information required in this section, it must submit the information using the interchange
file specification format. Any record submitted by a dealer that does not conform to
the interchange file specification format must be corrected and resubmitted the next
business day.
new text end

new text begin (c) A dealer must display a sign of sufficient size, in a conspicuous place in the
premises, which informs all patrons that all transactions are reported to law enforcement
daily.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 9.

Minnesota Statutes 2012, section 325E.21, subdivision 3, is amended to read:


Subd. 3.

Payment by check or electronic transfer required.

new text begin (a) Except as
provided in paragraph (b),
new text end a scrap metal dealer or the dealer's agent, employee, or
representative shall pay for all scrap metal purchases only by check or electronic transfer.

new text begin (b) For purchase of a motor vehicle under subdivision 11, payment shall be made
by mailed check or by electronic transfer of funds to a bank account. Checks shall be
payable only to the individual providing proof of identification at the time of purchase.
The dealer shall retain a record of the mailing address or unique transaction identifier for
a period of three years and such information shall at all reasonable times be open for
inspection by law enforcement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 10.

Minnesota Statutes 2012, section 325E.21, subdivision 6, is amended to read:


Subd. 6.

Criminal deleted text begin penaltydeleted text end new text begin penaltiesnew text end .

new text begin (a) Except as provided in paragraphs (b) and
(c),
new text end a scrap metal dealer, or the agent, employee, or representative of the dealer, who
intentionally violates a provision of this section, is guilty of a misdemeanor.

new text begin (b) A scrap metal dealer, or an agent, employee, or representative of a scrap metal
dealer, who is convicted of violating this section a second time within a period of five
years, is guilty of a gross misdemeanor.
new text end

new text begin (c) A scrap metal dealer, or an agent, employee, or representative of a scrap metal
dealer, who is convicted of violating this section a third or subsequent time within a period
of five years is guilty of a felony and may be sentenced to imprisonment for not more than
three years or to payment of a fine of not more than $5,000, or both.
new text end

new text begin (d) Criminal penalties under this section are in addition to other remedies provided
by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to crimes
committed on or after that date.
new text end

Sec. 11.

Minnesota Statutes 2012, section 325E.21, subdivision 8, is amended to read:


Subd. 8.

deleted text begin Property held by law enforcementdeleted text end new text begin Investigative holds; confiscation of
vehicles
new text end .

(a) Whenever a law enforcement official from any agency has probable cause to
believe that property in the possession of a scrap metal dealer is stolen or is evidence of a
crime and notifies the dealer not to sell the item, deleted text begin the item may not be sold or removeddeleted text end new text begin the
scrap metal dealer shall not (1) process or sell the item, or (2) remove or allow its removal
new text end from the premises. This investigative hold deleted text begin remainsdeleted text end new text begin must be confirmed in writing by the
originating agency within 72 hours and will remain
new text end in effect for deleted text begin 90deleted text end new text begin 30new text end days from the
date of initial notification, or until deleted text begin itdeleted text end new text begin the investigative holdnew text end is canceled or deleted text begin a seizure order
is issued
deleted text end new text begin renewed, or until a law enforcement notification to confiscate or a directive to
release is issued
new text end , whichever comes first.

(b) If an item is identified as stolen or evidence in a criminal case, deleted text begin thedeleted text end new text begin anew text end law
enforcement official may:

(1) physically deleted text begin seizedeleted text end new text begin confiscatenew text end and remove it from the new text begin scrap metal new text end dealer, pursuant to
a written deleted text begin order from the law enforcement officialdeleted text end new text begin notificationnew text end ; deleted text begin or
deleted text end

(2) place the item on hold or extend the hold deleted text begin as provided in this section and leave it
in the shop
deleted text end new text begin under paragraph (a) and leave it in the licensed premises; or
new text end

new text begin (3) direct its release to a registered owner or owner's agentnew text end .

deleted text begin (c)deleted text end When an item is deleted text begin seizeddeleted text end new text begin confiscatednew text end , the person doing so shall provide identification
upon request of the new text begin scrap metal new text end dealer, and shall provide deleted text begin the dealerdeleted text end the name and telephone
number of the deleted text begin seizingdeleted text end new text begin confiscatingnew text end agency and investigator, and the case number related to
the deleted text begin seizuredeleted text end new text begin confiscationnew text end .

deleted text begin (d)deleted text end new text begin (c)new text end A dealer may request seized property be returned in accordance with section
626.04.

deleted text begin (e)deleted text end new text begin (d)new text end When an deleted text begin order to hold or seizedeleted text end new text begin investigative hold or notification to confiscate
new text end is no longer necessary, the law enforcement official new text begin or designee new text end shall so notify the deleted text begin dealer
deleted text end new text begin licenseenew text end .

new text begin (e) A scrap metal dealer may process or otherwise dispose of the motor vehicle if:
new text end

new text begin (1) a notification to confiscate is not issued during the investigative hold; or
new text end

new text begin (2) a law enforcement official does not physically remove the motor vehicle from the
premises within 15 calendar days from issuance of a notification to confiscate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 12.

Minnesota Statutes 2012, section 325E.21, subdivision 9, is amended to read:


Subd. 9.

Video security cameras required.

(a) Each scrap metal dealer shall install
and maintain at each location video surveillance cameras, still digital cameras, or similar
devices positioned to record or photograph a frontal view showing new text begin a readily identifiable
image of
new text end the face of each seller or prospective seller of scrap metal who enters the location.
The scrap metal dealer shall also photograph the seller's or prospective seller's vehicle,
including license plate, either by video camera or still digital camera, so that an accurate
and complete description of it may be obtained from the recordings made by the cameras.
The video camera or still digital camera must be kept in operating conditionnew text begin and must be
shown to a law enforcement officer for inspection upon request
new text end . The camera must record
and display the accurate date and time. The video camera must be turned on at all times
when the location is open for business and at any other time when scrap metal is purchased.

(b) If the scrap metal dealer does not purchase some or any scrap metal at a specific
business location, the dealer need not comply with this subdivision with respect to those
purchases.

new text begin (c) Recordings and images required by paragraph (a) shall be retained by the scrap
metal dealer for a minimum period of 30 days and shall at all reasonable times be open to
the inspection of any law enforcement agency.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 13.

Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Vehicles with proof of ownership. new text end

new text begin Except as provided in subdivision 11,
no dealer shall purchase a motor vehicle unless the seller:
new text end

new text begin (1) provides the vehicle title and lien releases, if the vehicle is subject to any liens, or
an official bill of sale issued by a public impound lot, each listing the vehicle identification
number;
new text end

new text begin (2) provides proof of identification matching the name listed on the vehicle title or
bill of sale issued by a public impound lot; and
new text end

new text begin (3) signs a statement, under penalty of perjury as provided in section 609.48,
attesting that the motor vehicle is not stolen and is free of any liens or encumbrances and
that the seller has the right to sell the motor vehicle.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 14.

Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Vehicle without proof of ownership; five-day hold period. new text end

new text begin (a) If the
seller does not provide the information required in subdivision 10, no dealer shall purchase
a motor vehicle unless the seller:
new text end

new text begin (1) agrees in writing to a conditional sale with a five-day hold period prior to
completion of the transaction and disbursement of payment;
new text end

new text begin (2) provides proof of identification; and
new text end

new text begin (3) signs a statement, under penalty of perjury as provided in section 609.48,
attesting that the motor vehicle is not stolen and is free of any liens or encumbrances and
that the seller has the right to sell the motor vehicle.
new text end

new text begin (b) The dealer shall:
new text end

new text begin (1) hold the vehicle during the five-day hold period;
new text end

new text begin (2) comply, on or after January 1, 2015, with reporting requirements under
subdivision 1c by the end of the first day of the hold period;
new text end

new text begin (3) not scrap, resell, dismantle, or in any way destroy the vehicle during the five-day
hold period;
new text end

new text begin (4) check the vehicle identification number with the registrar and local law
enforcement on the last day of the five-day hold period to confirm that the vehicle has not
been reported as stolen;
new text end

new text begin (5) not complete the vehicle purchase transaction and disburse payment until after
the five-day hold period; and
new text end

new text begin (6) make any payment to the seller in accordance with subdivision 3, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 15.

Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
to read:


new text begin Subd. 12. new text end

new text begin Purchase from other dealers or merchants. new text end

new text begin (a) Subdivisions 10 and
11 do not apply when a scrap vehicle is purchased from:
new text end

new text begin (1) an insurance company, a rental car company, a financial institution, or a charity; or
new text end

new text begin (2) a licensee under section 168.27.
new text end

new text begin (b) A scrap vehicle dealer acquiring a scrap vehicle under this subdivision shall
obtain the information required under subdivision 1b, paragraph (c).
new text end

Sec. 16.

Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
to read:


new text begin Subd. 13. new text end

new text begin Model affidavit; right to sell vehicle. new text end

new text begin By July 15, 2013, the Minnesota
Chiefs of Police Association, in consultation with the Minnesota Sheriff's Association,
Minnesota Police and Peace Officers Association, and Minnesota County Attorney's
Association, shall develop a model affidavit for use by scrap metal dealers under
subdivision 1a, paragraph (a), clause (8); subdivision 10, clause (3); and subdivision 11,
paragraph (a), clause (3).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17. new text begin AUTOMATED PROPERTY SYSTEM STANDARDS.
new text end

new text begin (a) By July 1, 2014, the Minneapolis Police Department, in consultation with the
scrap metal industry, law enforcement, prosecutors, and legislators, shall develop standards
for implementation and use of the automated property system as provided under section
325E.21, subdivision 1c. By July 15, 2014, the department shall provide copies of the
standards to all scrap metal dealers required to report using the automated property system.
new text end

new text begin (b) By January 15, 2014, the department shall submit proposed standards to
the chairs and ranking minority members of the senate and house of representatives
committees and divisions having jurisdiction over criminal justice policy and funding.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end