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HF 2136

4th Engrossment - 87th Legislature (2011 - 2012) Posted on 05/22/2012 11:53am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to motor vehicles; regulating salvage titles; modifying the disclosure of
motor vehicle damage; amending Minnesota Statutes 2010, sections 168A.01,
subdivisions 6a, 8a, 12a; 168A.151, subdivision 1; 325F.6641; 325F.6644,
subdivision 1.

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

Section 1.

Minnesota Statutes 2010, section 168A.01, subdivision 6a, is amended to
read:


Subd. 6a.

High-value vehicle.

"High-value vehicle" means a vehicle deleted text beginmanufactured
six or more years before the start of the current model year
deleted text end that had an actual cash value in
excess of $5,000 before being damaged, or a vehicle with a manufacturer's rating of over
26,000 pounds gross vehicle weightnew text begin that is not a late-model vehiclenew text end.

Sec. 2.

Minnesota Statutes 2010, section 168A.01, subdivision 8a, is amended to read:


Subd. 8a.

Late-model vehicle.

"Late-model vehicle" means a vehicle deleted text beginmanufactured
in the current model year or the five model years
deleted text endnew text begin with a manufacturer's designated model
year equal to or greater than the fifth calendar year
new text end immediately preceding the current
deleted text begin modeldeleted text endnew text begin calendarnew text end year.

Sec. 3.

Minnesota Statutes 2010, section 168A.01, subdivision 12a, is amended to read:


Subd. 12a.

Older model vehicle.

"Older model vehicle" means a vehicle
deleted text begin manufactured in the sixth model year immediately preceding the current model year or
earlier that is not a high-value vehicle
deleted text endnew text begin that is not a late-model vehiclenew text end.

Sec. 4.

Minnesota Statutes 2010, 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 deleted text begin48 hours of taking possessiondeleted text endnew text begin
ten days of obtaining the title
new text end of a vehicle through payment of damages, an insurer must
notify the department in a manner prescribed by the department.

(b) A person shall immediately apply for a salvage certificate of title if the person
acquires a damaged late-model or high-value deleted text beginmotordeleted text end vehicle with an out-of-state title
and the vehicle:

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

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

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

(c) A self-insured owner of a late-model or high-value vehicle deleted text beginwhodeleted text endnew text begin thatnew text end sustains
damage by collision or other occurrence which exceeds deleted text begin70deleted text endnew text begin 80new text end percent of its actual cash
value shall immediately apply for a salvage certificate of title. deleted text beginDamage, 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.
deleted text end

Sec. 5.

Minnesota Statutes 2010, section 325F.6641, is amended to read:


325F.6641 DISCLOSURE OF MOTOR VEHICLE DAMAGE.

Subdivision 1.

Damage.

(a) If a deleted text beginmotordeleted text endnew text begin late-modelnew text end vehiclenew text begin, as defined in section
168A.01, subdivision 8a,
new text end has sustained damage by collision or other occurrence which
exceeds deleted text begin70deleted text endnew text begin 80new text end percent of its actual cash value immediately prior to sustaining damage, the
seller must disclose that fact to the buyer, if the seller has actual knowledge of the damage.
The amount of damage is determined by the retail cost of repairing the vehicle based on a
complete written retail repair estimate or invoicedeleted text begin, exclusive of 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
deleted text end.

(b) The disclosure required under this subdivision must be made in writing on the
application for title and registration or other transfer document, in a manner prescribed
by the registrar of motor vehicles. The registrar shall revise the certificate of title form,
including the assignment by seller (transferor) and reassignment by licensed dealer
sections of the form, the separate application for title forms, and other transfer documents
to accommodate this disclosure. If the seller is a motor vehicle dealer licensed pursuant to
section 168.27, the disclosure required by this section must be made orally by the dealer to
the prospective buyer in the course of the sales presentation.

(c) Upon transfer and application for title to a vehicle covered by this subdivision,
the registrar shall record the term "rebuilt" on the first Minnesota certificate of title and all
subsequent Minnesota certificates of title used for that vehicle.

Subd. 2.

Form of disclosure.

The disclosure required in this section must be made
in substantially the following form: "To the best of my knowledge, this vehicle has .....
has not ..... sustained damagedeleted text begin, exclusive of any costs to repair, replace, or reinstall air bags
and other components that were replaced due to deployment of air bags,
deleted text end in excess of
deleted text begin 70deleted text endnew text begin 80new text end percent actual cash value."

Sec. 6.

Minnesota Statutes 2010, section 325F.6644, subdivision 1, is amended to read:


Subdivision 1.

Damage disclosure.

Section 325F.6641 does not apply to deleted text beginvehicles
that are six years old or older as calculated from the first day of January of the designated
model year or to
deleted text end commercial motor vehicles with a gross vehicle weight rating of 16,000
pounds or more or to motorcycles.