HF 1756

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to public safety; regulating salvage certificates of title and certain
vehicles being dismantled or destroyed; requiring electronic notification;
amending Minnesota Statutes 2006, sections 168A.151, subdivision 1; 168A.153.

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

Section 1.

Minnesota Statutes 2006, section 168A.151, subdivision 1, is amended to
read:

Subdivision 1.

Salvage titles.

(a) When an insurer, licensed to conduct business in
Minnesota, acquires ownership of a late-model or high-value vehicle through payment
of damages, the insurer shall immediately apply for a salvage certificate of title or shall
stamp the existing certificate of title with the legend "SALVAGE CERTIFICATE OF
TITLE" in a manner prescribed by the department. Within 48 hours of taking possession
of a vehicle through payment of damages, an insurer must notify the department in a
manner prescribed by the department.

(b) deleted text begin Any person who acquires a damaged motor vehicle with an out-of-state title and
the cost of repairs exceeds the value of the damaged vehicle or a motor vehicle with an
out-of-state salvage title or certificate, as proof of ownership, shall immediately apply for
a salvage certificate of title. deleted text end new text begin A person shall immediately apply for a salvage certificate
of title if the person acquires a damaged late-model or high-value motor vehicle with an
out-of-state title and the vehicle:
new text end

new text begin (1) is a vehicle that was acquired by an insurer through payment of damages; new text end

new text begin (2) is a vehicle for which the cost of repairs exceeds the value of the damaged
vehicle; or
new text end

new text begin (3) has an out-of-state salvage certificate of title as proof of ownership.
new text end

new text begin (c) new text end A self-insured owner of a late-model or high-value vehicle who sustains damage
by collision or other occurrence which exceeds 70 percent of its actual cash value
shall immediately apply for a salvage certificate of title. Damage, for the purpose of
this calculation, does not include the actual cost incurred to repair, replace, or reinstall
inflatable safety restraints and other vehicle components that must be replaced due to the
deployment of the inflatable safety restraints.

Sec. 2.

Minnesota Statutes 2006, section 168A.153, is amended to read:

168A.153 REPORT OF VEHICLE RECEIPT deleted text begin ; SURRENDER OF
CERTIFICATE deleted text end .

Subdivision 1.

Older model vehicle.

A dealer who buys an older model vehicle
to be dismantled or destroyed shall report to the department within 30 days including
the vehicle's license plate number and identification number, and the seller's name and
driver's license number.

Subd. 2.

Late-model or high-value vehicle.

A dealer who buys a late-model or
high-value vehicle to be dismantled or destroyed shall notify the secured party, if any, and
deleted text begin then surrender the certificate of title and a properly completed application for a salvage
certificate of title to the department within ten days deleted text end new text begin the commissioner in the manner
prescribed in subdivision 3. The dealer must then properly destroy the certificate of title new text end .

new text begin Subd. 3. new text end

new text begin Notification on vehicle to be dismantled or destroyed; service fee.
new text end

new 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. The notification 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 end