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HF 2136

as introduced - 87th Legislature (2011 - 2012) Posted on 02/08/2012 12:06pm

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 8a, 12a; 168A.151, subdivision 1; 325F.6641; 325F.6644,
subdivision 1; repealing Minnesota Statutes 2010, section 168A.01, subdivision
6a.

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

Section 1.

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


Subd. 8a.

Late-model vehicle.

"Late-model vehicle" means a vehicle manufactured
in the current deleted text begin modeldeleted text end new text begin calendarnew text end year or the five deleted text begin modeldeleted text end new text begin calendarnew text end years immediately preceding
the current deleted text begin modeldeleted text end new text begin calendarnew text end year.

Sec. 2.

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


Subd. 12a.

Older model vehicle.

"Older model vehicle" means a vehicle
manufactured in the sixth deleted text begin modeldeleted text end new text begin calendarnew text end year immediately preceding the current deleted text begin modeldeleted text end
new text begin calendar new text end year or earlier deleted text begin that is not a high-value vehicledeleted text end .

Sec. 3.

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-modeldeleted text begin or high-valuedeleted text end 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 begin 48 hours of taking possessiondeleted text end new text begin
ten days of obtaining the titlenew 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 deleted text begin or high-valuedeleted text end motor 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 deleted text begin or high-valuedeleted text end vehicle deleted text begin whodeleted text end new text begin thatnew text end sustains
damage by collision or other occurrence which exceeds deleted text begin 70deleted text end new text begin 80new text end percent of its actual cash
value shall immediately apply for a salvage certificate of title. deleted text begin 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.
deleted text end

Sec. 4.

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


325F.6641 DISCLOSURE OF MOTOR VEHICLE DAMAGE.

Subdivision 1.

Damage.

(a) If a new text begin late-model new text end motor vehicle has sustained damage
by collision or other occurrence which exceeds deleted text begin 70deleted text end new 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 restraintsdeleted 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 end new text begin 80new text end percent actual cash value."

Sec. 5.

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


Subdivision 1.

Damage disclosure.

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

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 168A.01, subdivision 6a, new text end new text begin is repealed.
 new text end