HF 2188

as introduced - 90th Legislature (2017 - 2018) Posted on 03/07/2017 12:55pm

A bill for an act
relating to commerce; allowing an exemption from posting a surety bond for certain
vehicle dealers who demonstrate financial responsibility; amending Minnesota
Statutes 2016, section 168.27, subdivision 24.

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

Section 1.

Minnesota Statutes 2016, section 168.27, subdivision 24, is amended to read:

Subd. 24.

Bonds.

(a) Except as otherwise provided in this subdivision, all persons
licensed according to this section shall keep in full force and effect a bond with a corporate
surety to be approved by the registrar of motor vehicles in the following amounts; in the
case of boat trailer, snowmobile trailer, horse trailer or motorized bicycle dealers, or dealers
in trailers with a manufacturer's rated carrying capacity under 15,000 pounds designed to
transport small construction or farm equipment, in the amount of $5,000; and as to all other
persons in the amount of $50,000. The bond must be conditioned on the faithful performance
by the licensee of the obligations imposed on persons engaged in motor vehicle transactions
by the laws of this state, including the conduct required of a licensee by this section and
other sections governing the sale or transfer of motor vehicles, and the payment of all taxes,
license fees, and penalties. The bond must be for the benefit of the state of Minnesota and
any transferor, seller, or purchaser of a motor vehicle for any monetary loss caused by failure
of the licensee to meet the obligations enumerated above. Proceedings on the forfeiture of
the bonds must be commenced in the district court of the county wherein the business of
the licensed person was carried on, or if in more than one county, the county in which the
offense occurred. This subdivision does not apply to a used vehicle parts dealer or a scrap
metal processor.

(b) This subdivision does not apply to:

(1) a dealer in new trailers designed to transport small construction or farm equipment
in any year following a year in which the dealer had less than $500,000 in gross receipts
from the sale of such trailers; or

(2) a dealer in new trailers designed to transport small construction or farm equipment
who has been a dealer in such trailers for less than one year and who the department
reasonably determines will have gross receipts of less than $500,000 during the first year
of business.

new text begin (c) A licensee may apply for an exemption to the bond requirement under this subdivision.
A licensee seeking an exemption must provide the commissioner with an itemized financial
statement showing the assets and liabilities of the applicant. If the commissioner determines,
from the financial statement or otherwise, that the applicant is financially responsible, the
commissioner may exempt the applicant from furnishing a bond until the commissioner
orders otherwise.
new text end