HF 2287

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to recreational vehicles; requiring a title 
  1.3             for certain recreational vehicles; providing criminal 
  1.4             penalties; amending Minnesota Statutes 1998, sections 
  1.5             84.79; 84.80, subdivision 1; 84.86, subdivision 1; and 
  1.6             84.924, subdivision 1; proposing coding for new law in 
  1.7             Minnesota Statutes, chapter 84. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9                              ARTICLE 1 
  1.10                    RECREATIONAL VEHICLE TITLING 
  1.11     Section 1.  [84.93] [DEFINITIONS.] 
  1.12     Subdivision 1.  [APPLICABILITY.] For purposes of sections 
  1.13  84.93 to 84.9395, the terms defined in this section have the 
  1.14  meanings given them. 
  1.15     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
  1.16  commissioner of the department of natural resources. 
  1.17     Subd. 3.  [DEPUTY REGISTRAR.] "Deputy registrar" means a 
  1.18  person appointed or hired by the commissioner of public safety 
  1.19  under section 168.33. 
  1.20     Subd. 4.  [MANUFACTURER'S OR IMPORTER'S CERTIFICATE OF 
  1.21  ORIGIN.] "Manufacturer's or importer's certificate of origin" 
  1.22  means a certificate with the authorized signature of the 
  1.23  manufacturer or importer of a recreational vehicle, describing 
  1.24  and identifying the recreational vehicle, giving the name and 
  1.25  address of the person to whom the recreational vehicle is first 
  1.26  sold by the manufacturer or importer, and containing executed 
  2.1   assignments of the recreational vehicle to an applicant for a 
  2.2   certificate of title on the recreational vehicle in this state.  
  2.3      Subd. 5.  [RECREATIONAL VEHICLE.] "Recreational vehicle" 
  2.4   means an off-highway motorcycle as defined under section 84.787, 
  2.5   an off-road vehicle as defined under section 84.797, a 
  2.6   snowmobile as defined under section 84.81, or an all-terrain 
  2.7   vehicle as defined under section 84.92. 
  2.8      Subd. 6.  [SECURED PARTY.] "Secured party" means a secured 
  2.9   party as defined in section 336.9-105, paragraph (1), clause 
  2.10  (m), having a security interest in a recreational vehicle and 
  2.11  includes a lienholder.  
  2.12     Subd. 7.  [SECURITY AGREEMENT.] "Security agreement" has 
  2.13  the meaning given it in section 336.9-105, paragraph (1), clause 
  2.14  (l). 
  2.15     Subd. 8.  [SECURITY INTEREST.] "Security interest" has the 
  2.16  meaning given it in section 336.1-201, clause (37), and includes 
  2.17  statutory liens for which lien statements are filed.  
  2.18     Subd. 9.  [TITLED RECREATIONAL VEHICLE.] "Titled 
  2.19  recreational vehicle" means a recreational vehicle required to 
  2.20  have a certificate of title under section 84.9305, subdivision 1.
  2.21     Sec. 2.  [84.9305] [CERTIFICATE OF TITLE REQUIRED.] 
  2.22     Subdivision 1.  [REQUIREMENT.] Except as provided in 
  2.23  subdivision 2, a recreational vehicle used in the state must 
  2.24  have a certificate of title if: 
  2.25     (1) the recreational vehicle is owned by a resident of this 
  2.26  state and is kept in the state for more than 90 consecutive 
  2.27  days; or 
  2.28     (2) the recreational vehicle is kept in the state for more 
  2.29  than 60 consecutive days and has not been issued a certificate 
  2.30  of title or similar document from another jurisdiction.  
  2.31     Subd. 2.  [EXEMPT RECREATIONAL VEHICLE.] A recreational 
  2.32  vehicle is not required to have a certificate of title if the 
  2.33  recreational vehicle is: 
  2.34     (1) owned by a manufacturer or dealer and held for sale; 
  2.35     (2) used by a manufacturer solely for testing; 
  2.36     (3) from another jurisdiction and kept in this state for 60 
  3.1   consecutive days or less; or 
  3.2      (4) owned by the United States, this or another state, or a 
  3.3   political subdivision of this state. 
  3.4      Subd. 3.  [TITLE REQUIRED FOR TRANSFER.] A person may not 
  3.5   sell or otherwise transfer a titled recreational vehicle without 
  3.6   delivering to the person acquiring the recreational vehicle a 
  3.7   certificate of title with an assignment on it to show title in 
  3.8   the person acquiring the recreational vehicle.  A person may not 
  3.9   acquire a recreational vehicle required to have a certificate of 
  3.10  title without obtaining a certificate of title for the 
  3.11  recreational vehicle in the person's name. 
  3.12     Subd. 4.  [NO LEGAL TITLE WITHOUT CERTIFICATE.] A person 
  3.13  acquiring a recreational vehicle through a sale or gift does not 
  3.14  acquire a right, title, claim, or interest in the recreational 
  3.15  vehicle until the person has been issued a certificate of title 
  3.16  to the recreational vehicle or has received a manufacturer's or 
  3.17  importer's certificate of origin.  A waiver or estoppel does not 
  3.18  operate in favor of that person against another person who has 
  3.19  obtained possession of the certificate of title or 
  3.20  manufacturer's or importer's certificate of origin for the 
  3.21  recreational vehicle for valuable consideration.  
  3.22     Sec. 3.  [84.931] [APPLICATION AND ISSUANCE OF CERTIFICATE 
  3.23  OF TITLE.] 
  3.24     Subdivision 1.  [APPLICATION.] The owner of a titled 
  3.25  recreational vehicle must apply for the first certificate of 
  3.26  title of a recreational vehicle in this state to the 
  3.27  commissioner or a deputy registrar on a form prescribed by the 
  3.28  commissioner.  The appropriate fee under section 84.935 must 
  3.29  accompany the application.  The application must be signed by 
  3.30  the owner and contain: 
  3.31     (1) the full names, dates of birth, and addresses of owners 
  3.32  who are natural persons and the full names and addresses of 
  3.33  other owners; 
  3.34     (2) a description of the recreational vehicle including its 
  3.35  make, model, year, and the manufacturer's identification number; 
  3.36     (3) the date of purchase by the applicant and the name and 
  4.1   address of the person from whom the recreational vehicle was 
  4.2   acquired; 
  4.3      (4) the name and address of the person who is to possess 
  4.4   the title and any conditions of possession; and 
  4.5      (5) other information required by the commissioner to 
  4.6   determine whether the owner is entitled to a certificate of 
  4.7   title and whether security interests exist in the recreational 
  4.8   vehicle.  
  4.9      Subd. 2.  [ISSUANCE.] (a) The commissioner shall issue a 
  4.10  certificate of title for a recreational vehicle upon 
  4.11  verification that:  
  4.12     (1) the application is genuine; 
  4.13     (2) the applicant is the owner of the recreational vehicle; 
  4.14  and 
  4.15     (3) the required fee has been paid.  
  4.16     (b) The original certificate of title must be mailed to the 
  4.17  first secured party disclosed in the application or, if none, to 
  4.18  the owner named in the application.  
  4.19     Subd. 3.  [CONTENTS.] (a) A certificate of title issued by 
  4.20  the commissioner must contain: 
  4.21     (1) the date issued; 
  4.22     (2) the full names, dates of birth, and addresses of owners 
  4.23  who are natural persons and the full names and addresses of 
  4.24  other owners; 
  4.25     (3) the names and addresses of secured parties; 
  4.26     (4) the title number assigned to the recreational vehicle; 
  4.27     (5) a description of the recreational vehicle including its 
  4.28  make, model, year of manufacture, and manufacturer's 
  4.29  identification number; 
  4.30     (6) spaces for assignment of title by the owner or by the 
  4.31  dealer and for warranting that the signer is the owner and that 
  4.32  the recreational vehicle is not subject to security interests, 
  4.33  liens, or encumbrances except as noted on the face of the 
  4.34  certificate of title; 
  4.35     (7) spaces on the certificate for application of title by a 
  4.36  new owner subject to the security interests of secured parties 
  5.1   named and for the assignment or release of the security interest 
  5.2   of a secured party; and 
  5.3      (8) other information the commissioner may require. 
  5.4      (b) A certificate of title issued by the commissioner is 
  5.5   prima facie evidence of the facts appearing on it. 
  5.6      Subd. 4.  [ISSUANCE WITHOUT ABSOLUTE PROOF OF OWNERSHIP.] 
  5.7   (a) If application is made for a certificate of title for a 
  5.8   recreational vehicle and the commissioner is not satisfied of 
  5.9   the ownership of the recreational vehicle or the existence of 
  5.10  security interests in the recreational vehicle, the recreational 
  5.11  vehicle may be assigned a title number but the commissioner must:
  5.12     (1) withhold issuance of a certificate of title until the 
  5.13  applicant presents documents that satisfy the commissioner of 
  5.14  the applicant's ownership of the recreational vehicle and of any 
  5.15  security interest in the recreational vehicle; or 
  5.16     (2) require the applicant to file a bond in the form 
  5.17  prescribed by the commissioner and executed by the applicant as 
  5.18  a condition to issuing a certificate of title.  
  5.19     (b) A bond filed under this subdivision must be accompanied 
  5.20  by the deposit of cash or executed by a surety company 
  5.21  authorized to do business in this state.  The bond must be in an 
  5.22  amount equal to 1-1/2 times the value of the recreational 
  5.23  vehicle as determined by the commissioner.  The bond must be 
  5.24  conditioned to indemnify prior owners, secured parties, and 
  5.25  later purchasers of the recreational vehicle or persons 
  5.26  acquiring a security interest in the recreational vehicle, or 
  5.27  successors in interest of the persons, against expenses, losses, 
  5.28  or damages, including reasonable attorney fees, by reason of the 
  5.29  issuance of the certificate of title to the recreational vehicle 
  5.30  or on account of a defect in or undisclosed security interest 
  5.31  upon the right, title, and interest of the applicant in the 
  5.32  recreational vehicle.  
  5.33     (c) An interested person has a right of action to recover 
  5.34  on the bond for a breach of its conditions, but the aggregate 
  5.35  liability of the surety to all persons may not exceed the amount 
  5.36  of the bond.  
  6.1      (d) The commissioner shall return the bond and any deposit 
  6.2   accompanying the bond if: 
  6.3      (1) the commissioner has not been notified of the pendency 
  6.4   of an action to recover on the bond; 
  6.5      (2) questions of ownership and outstanding security 
  6.6   interests have been resolved to the satisfaction of the 
  6.7   commissioner; 
  6.8      (3) the bond has been posted for three years; and 
  6.9      (4) the currently valid certificate of title is surrendered.
  6.10     Subd. 5.  [RECORDS.] (a) The commissioner shall maintain 
  6.11  records of certificates of title issued under this section. 
  6.12     (b) Records relating to recreational vehicle titling 
  6.13  maintained by the commissioner are public records and are open 
  6.14  to public inspection during regular office hours. 
  6.15     Subd. 6.  [GROUNDS FOR REFUSAL TO ISSUE CERTIFICATE OF 
  6.16  TITLE.] The commissioner may not issue a certificate of title if 
  6.17  a required fee is not paid or the commissioner has reasonable 
  6.18  grounds to believe that: 
  6.19     (1) the applicant is not the owner of the recreational 
  6.20  vehicle; 
  6.21     (2) the application contains a false statement; or 
  6.22     (3) the applicant failed to furnish required information or 
  6.23  documents or additional information the commissioner reasonably 
  6.24  requires. 
  6.25     Sec. 4.  [84.9315] [DEALER ACQUISITION AND TRANSFER.] 
  6.26     Subdivision 1.  [CERTIFICATE OF ORIGIN REQUIRED.] (a) A 
  6.27  dealer may not purchase or acquire a new titled recreational 
  6.28  vehicle without obtaining a manufacturer's or importer's 
  6.29  certificate of origin from the seller. 
  6.30     (b) A manufacturer, importer, dealer, or other person may 
  6.31  not sell or otherwise dispose of a new titled recreational 
  6.32  vehicle to a dealer for purposes of display and resale without 
  6.33  delivering to the dealer a manufacturer's or importer's 
  6.34  certificate of origin. 
  6.35     Subd. 2.  [CONTENTS OF CERTIFICATE.] The manufacturer's or 
  6.36  importer's certificate of origin must be of a form prescribed by 
  7.1   the commissioner and contain: 
  7.2      (1) a description of the recreational vehicle, including 
  7.3   its trade name, if any, year, series or model, and 
  7.4   manufacturer's identification number; 
  7.5      (2) certification of the date of transfer of the 
  7.6   recreational vehicle and the name and address of the person to 
  7.7   whom the recreational vehicle was transferred; 
  7.8      (3) certification that the transfer of the recreational 
  7.9   vehicle was in ordinary trade and commerce; 
  7.10     (4) the signature and address of a representative of the 
  7.11  person transferring the recreational vehicle; 
  7.12     (5) an assignment form, including the name and address of 
  7.13  the person the recreational vehicle is to be transferred to, a 
  7.14  certification that the recreational vehicle is new, and a 
  7.15  warranty that the title at the time of delivery is subject only 
  7.16  to the security interests stated on the title; and 
  7.17     (6) any other information required by the commissioner.  
  7.18     Subd. 3.  [SALE OF NEW RECREATIONAL VEHICLE.] A dealer 
  7.19  selling or exchanging a new titled recreational vehicle, before 
  7.20  delivering the recreational vehicle to a purchaser, shall apply 
  7.21  to the commissioner for a new title in the name of the 
  7.22  purchaser.  The application must contain the name and address of 
  7.23  any secured party holding a security interest created or 
  7.24  reserved at the time of sale and the date of the security 
  7.25  agreement and must be accompanied by a manufacturer's or 
  7.26  importer's certificate of origin.  The application must be 
  7.27  signed by the dealer and the owner, and the dealer shall 
  7.28  promptly mail or deliver the application to the commissioner or 
  7.29  a deputy registrar.  
  7.30     Subd. 4.  [USED RECREATIONAL VEHICLE ACQUIRED FOR 
  7.31  RESALE.] (a) If a dealer buys or acquires a used titled 
  7.32  recreational vehicle for resale, the dealer must apply to the 
  7.33  commissioner or deputy registrar and obtain a title number 
  7.34  before selling or exchanging the recreational vehicle in the 
  7.35  same manner as a new recreational vehicle on forms the 
  7.36  commissioner provides or apply for and obtain a certificate of 
  8.1   title. 
  8.2      (b) If a dealer acquires a used titled recreational vehicle 
  8.3   for resale and the recreational vehicle is covered by a 
  8.4   certificate of title that is surrendered to the dealer by the 
  8.5   owner at the time of delivery of the recreational vehicle, the 
  8.6   dealer need not send the certificate of title to the 
  8.7   commissioner.  Upon transferring the recreational vehicle to 
  8.8   another person, the dealer must promptly execute the assignment, 
  8.9   showing the name and address of the person to whom the 
  8.10  recreational vehicle is transferred and forward the certificate 
  8.11  to the commissioner or deputy registrar with the application for 
  8.12  a new certificate of title. 
  8.13     Subd. 5.  [RECREATIONAL VEHICLE WITH FOREIGN 
  8.14  REGISTRATION.] (a)  Except as provided in paragraph (b), an 
  8.15  application for a certificate of title for a recreational 
  8.16  vehicle last registered in another state or foreign country must 
  8.17  contain or be accompanied by: 
  8.18     (1) a certificate of title or registration issued by the 
  8.19  other state or foreign country; and 
  8.20     (2) other information or documents the commissioner 
  8.21  requires to establish the ownership of the recreational vehicle 
  8.22  and the existence of any security interests. 
  8.23     (b) If the state or foreign country where the recreational 
  8.24  vehicle was last registered does not issue certificates of 
  8.25  title, the application must contain or be accompanied by: 
  8.26     (1) a proper bill of sale or sworn statement of ownership, 
  8.27  certificate of registration, or evidence of ownership as 
  8.28  required by the law of the state or foreign country; and 
  8.29     (2) any other information or documents the commissioner 
  8.30  requires to establish the ownership of the recreational vehicle 
  8.31  and the existence of any security interests. 
  8.32     Sec. 5.  [84.932] [TRANSFER BY OWNER.] 
  8.33     Subdivision 1.  [VOLUNTARY TRANSFER.] (a) An owner who 
  8.34  transfers a titled recreational vehicle must execute the 
  8.35  assignment and warranty of title to the person to whom the 
  8.36  recreational vehicle is transferred in the space provided on the 
  9.1   certificate of title when the recreational vehicle is delivered. 
  9.2      (b) The person acquiring the recreational vehicle must 
  9.3   obtain a new certificate of title by applying to the 
  9.4   commissioner or a deputy registrar on a form prescribed by the 
  9.5   commissioner and submitting the required fee.  The application 
  9.6   for certificate of title must be filed within 15 days after 
  9.7   delivery of the recreational vehicle to the person acquiring the 
  9.8   recreational vehicle.  
  9.9      (c) Upon request of the owner or the person who acquired 
  9.10  the recreational vehicle, a secured party in possession of the 
  9.11  certificate of title must deliver the certificate to the person 
  9.12  acquiring the recreational vehicle, the commissioner, or a 
  9.13  deputy registrar, unless the transfer is a breach of the 
  9.14  security agreement.  The delivery of the certificate does not 
  9.15  affect the rights of the secured party under the security 
  9.16  agreement. 
  9.17     (d) If a security interest or encumbrance is first created 
  9.18  at the time of transfer of ownership, the certificate must be 
  9.19  retained by or delivered to the secured party.  
  9.20     Subd. 2.  [TRANSFER BY LAW.] (a) Except as otherwise 
  9.21  provided in sections 84.9305 to 84.9395, if the ownership of a 
  9.22  titled recreational vehicle is transferred by operation of law, 
  9.23  including inheritance or bequest, order in bankruptcy, 
  9.24  insolvency, replevin, execution, sale, or satisfaction of 
  9.25  mechanic's lien, or repossession upon default in performance of 
  9.26  the terms of a security agreement, the person acquiring the 
  9.27  recreational vehicle by operation of law must promptly submit 
  9.28  the last certificate of title, if available, or the 
  9.29  manufacturer's or importer's certificate of origin or other 
  9.30  satisfactory proof of the transfer of ownership to the 
  9.31  commissioner or deputy registrar with the application for a new 
  9.32  certificate of title and the required fee. 
  9.33     (b) If a secured party acquires a titled recreational 
  9.34  vehicle under the terms of a security agreement or by operation 
  9.35  of law, the secured party must promptly submit to the 
  9.36  commissioner, a deputy registrar, or the person acquiring the 
 10.1   recreational vehicle from the secured party the last certificate 
 10.2   of title, if available, an application for a new certificate of 
 10.3   title with the required fee, and an affidavit by the secured 
 10.4   party or an authorized representative stating the facts 
 10.5   entitling the secured party to possession and ownership of the 
 10.6   recreational vehicle, including a copy of the journal entry, 
 10.7   court order, or instrument upon which the claim of possession 
 10.8   and ownership is founded.  If the secured party cannot produce 
 10.9   the required proof of ownership, the secured party may submit 
 10.10  other evidence with the application and the commissioner may 
 10.11  issue a new certificate of title if the evidence provides 
 10.12  satisfactory proof of ownership. 
 10.13     Sec. 6.  [84.9325] [TEMPORARY RECREATIONAL VEHICLE USE 
 10.14  PERMITS.] 
 10.15     Subdivision 1.  [ISSUANCE TO TITLE APPLICANT.] (a) The 
 10.16  commissioner may issue a temporary recreational vehicle use 
 10.17  permit to a person applying for a certificate of title for a new 
 10.18  or used recreational vehicle to allow that person to operate the 
 10.19  recreational vehicle in this state pending completion of the 
 10.20  titling process.  
 10.21     (b) The recreational vehicle use permit must be carried 
 10.22  aboard the recreational vehicle to allow immediate inspection.  
 10.23  The recreational vehicle use permit must contain a description 
 10.24  of the recreational vehicle, including its trade name, if any, 
 10.25  year, series or model, manufacturer's identification number, and 
 10.26  any other information prescribed by the commissioner.  A permit 
 10.27  is valid only for the recreational vehicle for which it is 
 10.28  issued. 
 10.29     Subd. 2.  [DISTRIBUTION TO DEALERS.] The commissioner may 
 10.30  distribute permits in booklet form to licensed dealers.  If the 
 10.31  dealer issues a permit, the dealer must submit a recreational 
 10.32  vehicle use permit information form to the commissioner.  The 
 10.33  commissioner must provide information forms that require the 
 10.34  name of the person to whom the recreational vehicle use permit 
 10.35  was issued, the recreational vehicle description, dates of issue 
 10.36  and expiration, and any other information prescribed by the 
 11.1   commissioner. 
 11.2      Sec. 7.  [84.933] [DUPLICATE CERTIFICATE.] 
 11.3      Subdivision 1.  [FORM AND ISSUANCE.] (a) The commissioner 
 11.4   may issue a duplicate certificate of title under this section.  
 11.5   The duplicate certificate of title must be a certified copy 
 11.6   plainly marked "duplicate" across its face and must contain the 
 11.7   legend:  "This duplicate certificate of title may be subject to 
 11.8   the rights of a person under the original certificate."  It must 
 11.9   be mailed to the first secured party named in it or, if none, to 
 11.10  the owner.  The commissioner shall indicate in the department 
 11.11  records that a duplicate has been issued.  
 11.12     (b) As a condition to issuing a duplicate certificate of 
 11.13  title, the commissioner may require a bond from the applicant in 
 11.14  the manner and form prescribed in section 84.931, subdivision 4, 
 11.15  paragraph (b).  
 11.16     Subd. 2.  [WAITING PERIOD TO ISSUE NEW CERTIFICATE OF 
 11.17  TITLE.] The commissioner may not issue a new certificate of 
 11.18  title to a person acquiring a recreational vehicle under an 
 11.19  application made on a duplicate certificate of title until at 
 11.20  least 15 days after receiving the application. 
 11.21     Subd. 3.  [DISAPPEARANCE OF ORIGINAL CERTIFICATE.] If a 
 11.22  certificate of title is lost, stolen, or destroyed, the owner or 
 11.23  legal representative of the owner named in the certificate may 
 11.24  obtain a duplicate by applying to the commissioner, furnishing 
 11.25  information the commissioner requires concerning the original 
 11.26  certificate, and furnishing the circumstances of its loss or 
 11.27  destruction.  
 11.28     Subd. 4.  [MUTILATED OR ILLEGIBLE CERTIFICATE.] If an 
 11.29  original certificate of title is mutilated or rendered 
 11.30  illegible, the person in possession of the title must return it 
 11.31  to the commissioner with the application for a duplicate. 
 11.32     Subd. 5.  [RECOVERY OF LOST OR STOLEN CERTIFICATE.] If a 
 11.33  lost or stolen certificate of title for which a duplicate has 
 11.34  been issued is recovered, the lost or stolen certificate of 
 11.35  title must be surrendered promptly to the commissioner for 
 11.36  cancellation. 
 12.1      Sec. 8.  [84.9335] [SUSPENSION OR REVOCATION OF 
 12.2   CERTIFICATE.] 
 12.3      Subdivision 1.  [SUSPENSION OR REVOCATION.] The 
 12.4   commissioner shall suspend or revoke a certificate of title upon 
 12.5   notice and reasonable opportunity to be heard if authorized by 
 12.6   law or if the commissioner finds that: 
 12.7      (1) the certificate of title was fraudulently procured or 
 12.8   erroneously issued; or 
 12.9      (2) the recreational vehicle has been scrapped, dismantled, 
 12.10  or destroyed. 
 12.11     Subd. 2.  [DUTIES OF OWNER.] If the commissioner suspends 
 12.12  or revokes a certificate of title, the owner or person in 
 12.13  possession of the certificate of title, immediately upon 
 12.14  receiving notice of the suspension or revocation, shall mail or 
 12.15  deliver the certificate to the commissioner. 
 12.16     Subd. 3.  [SEIZURE OR IMPOUNDMENT.] The commissioner may 
 12.17  seize and impound a certificate of title that has been suspended 
 12.18  or revoked. 
 12.19     Subd. 4.  [SUBSEQUENT GOOD FAITH PURCHASER.] Suspension or 
 12.20  revocation of a certificate of title does not affect the 
 12.21  validity of a subsequent transfer to a purchaser relying in good 
 12.22  faith on the assignment of a suspended or revoked title if the 
 12.23  certificate of title was not surrendered to or seized by the 
 12.24  commissioner under subdivisions 2 and 3, and the commissioner 
 12.25  shall issue a new certificate of title to an applicant who is a 
 12.26  good faith purchaser for value in those circumstances. 
 12.27     Sec. 9.  [84.934] [RESPONSIBILITIES OF COMMISSIONER.] 
 12.28     The commissioner shall prescribe and provide suitable forms 
 12.29  of applications, certificates of title, notices of security 
 12.30  interests, and other notices and forms necessary to implement 
 12.31  sections 84.9305 to 84.9395.  In addition, the commissioner may: 
 12.32     (1) make necessary investigations to procure information 
 12.33  required to implement sections 84.9305 to 84.9395; 
 12.34     (2) assign a manufacturer's number to a recreational 
 12.35  vehicle if the recreational vehicle does not have a number or 
 12.36  the number is destroyed or obliterated; or 
 13.1      (3) adopt and enforce rules necessary to implement sections 
 13.2   84.9305 to 84.9395. 
 13.3      Sec. 10.  [84.9345] [PENALTIES.] 
 13.4      Subdivision 1.  [FELONY.] A person is guilty of a felony 
 13.5   and punishable by imprisonment for a term of not more than four 
 13.6   years, or payment of a fine of not more than $5,000, or both, if 
 13.7   the person with fraudulent intent:  
 13.8      (1) uses a false or fictitious name or address, makes a 
 13.9   material false statement, fails to disclose a security interest, 
 13.10  or conceals any other material fact in an application for a 
 13.11  certificate of title; or 
 13.12     (2) submits a false, forged, or fictitious document in 
 13.13  support of an application for a certificate of title.  
 13.14     Subd. 2.  [MISDEMEANOR.] A person is guilty of a 
 13.15  misdemeanor if that person: 
 13.16     (1) with fraudulent intent permits another to use or 
 13.17  possess a certificate of title who is not entitled to use or 
 13.18  possess the certificate of title; 
 13.19     (2) willfully fails to mail or deliver a certificate of 
 13.20  title to the commissioner or a deputy registrar within ten days 
 13.21  after the time required; 
 13.22     (3) willfully fails to deliver to a person acquiring a 
 13.23  recreational vehicle a certificate of title within ten days 
 13.24  after the time required; 
 13.25     (4) commits a fraud in an application for a certificate of 
 13.26  title; or 
 13.27     (5) fails to notify the commissioner of a fact as required 
 13.28  by law. 
 13.29     Sec. 11.  [84.935] [TITLE FEES.] 
 13.30     Subdivision 1.  [FEES.] (a) The fee to be paid to the 
 13.31  commissioner: 
 13.32     (1) for issuing an original certificate of title, including 
 13.33  the concurrent notation of an assignment of the security 
 13.34  interest and its subsequent release or satisfaction, is 
 13.35  $.......; 
 13.36     (2) for each security interest when first noted upon a 
 14.1   certificate of title, including the concurrent notation of an 
 14.2   assignment of the security interest and its subsequent release 
 14.3   or satisfaction, is $.......; 
 14.4      (3) for transferring the interest of an owner and issuing a 
 14.5   new certificate of title, is $.......; 
 14.6      (4) for each assignment of a security interest when first 
 14.7   noted on a certificate of title, unless noted concurrently with 
 14.8   the security interest, is $.......; and 
 14.9      (5) for issuing a duplicate certificate of title, is 
 14.10  $........ 
 14.11     (b) In addition to other statutory fees and taxes, a filing 
 14.12  fee of $....... is imposed on every application.  The filing fee 
 14.13  must be shown as a separate item on title renewal notices sent 
 14.14  by the commissioner. 
 14.15     Subd. 2.  [DEPOSIT OF FEE.] (a) Fees collected under this 
 14.16  section must be deposited in the state treasury and credited as 
 14.17  follows: 
 14.18     (1) for an off-highway motorcycle, to the off-highway 
 14.19  motorcycle account; 
 14.20     (2) for an off-road vehicle, to the off-road vehicle 
 14.21  account; 
 14.22     (3) for a snowmobile, to the snowmobile trails and 
 14.23  enforcement account; and 
 14.24     (4) for an all-terrain vehicle, to the all-terrain vehicle 
 14.25  account. 
 14.26     (b) Notwithstanding paragraph (a), a deputy registrar who 
 14.27  originates an application shall retain the filing fee under 
 14.28  subdivision 1, paragraph (b).  
 14.29     Sec. 12.  [84.9355] [INAPPLICABLE LIENS AND SECURITY 
 14.30  INTERESTS.] 
 14.31     The requirements of sections 84.9305 to 84.9395 relating to 
 14.32  security interests and certificate of title do not apply to or 
 14.33  affect: 
 14.34     (1) a lien given by statute or rule of law to a supplier of 
 14.35  services or materials for the recreational vehicle while the 
 14.36  recreational vehicle is in the possession of the lienholder; 
 15.1      (2) a lien given by statute to the United States, this 
 15.2   state, or a political subdivision of this state; or 
 15.3      (3) a security interest in a recreational vehicle created 
 15.4   by a manufacturer or dealer who holds the recreational vehicle 
 15.5   for sale.  
 15.6      Sec. 13.  [84.936] [SECURITY INTERESTS.] 
 15.7      Subdivision 1.  [VALIDITY.] Unless excepted by section 
 15.8   84.9355, a security interest in a titled recreational vehicle is 
 15.9   not valid against creditors of the owner or subsequent 
 15.10  transferees or secured parties of the recreational vehicle 
 15.11  unless perfected as provided in sections 84.9305 to 84.9395.  
 15.12     Subd. 2.  [PERFECTION.] A security interest is perfected by 
 15.13  the delivery to the commissioner of the existing certificate of 
 15.14  title, if any, or an application for a certificate of title, 
 15.15  containing the name and address of the secured party, the date 
 15.16  of the security agreement, and the required fee.  It is 
 15.17  perfected as of the time of its creation if the delivery is 
 15.18  completed within the following ten days.  In other instances it 
 15.19  is perfected as of the time of the delivery.  The method 
 15.20  provided in sections 84.9305 to 84.9395 is exclusive.  
 15.21     Sec. 14.  [84.9365] [OWNER-CREATED SECURITY INTEREST.] 
 15.22     (a) Paragraphs (b) to (e) apply if an owner creates a 
 15.23  security interest in a titled recreational vehicle.  
 15.24     (b) The owner shall immediately execute the application in 
 15.25  the space provided on the certificate of title or on a separate 
 15.26  form prescribed by the commissioner, show the name and address 
 15.27  of the secured party on the certificate, and have the 
 15.28  certificate, application, and required fee delivered to the 
 15.29  secured party.  
 15.30     (c) The secured party shall immediately have the 
 15.31  certificate, application, and required fee mailed or delivered 
 15.32  to the commissioner.  
 15.33     (d) Upon request of the owner or subordinate secured party, 
 15.34  a secured party in possession of the certificate of title shall 
 15.35  either (1) mail or deliver the certificate to the subordinate 
 15.36  secured party for delivery to the commissioner, or (2) upon 
 16.1   receiving from the subordinate secured party the owner's 
 16.2   application and the required fee, mail or deliver them to the 
 16.3   commissioner with the certificate.  The delivery of the 
 16.4   certificate does not affect the rights of the first secured 
 16.5   party under the security agreement.  
 16.6      (e) Upon receiving the certificate of title, application, 
 16.7   and required fee, the commissioner shall either endorse on the 
 16.8   certificate or issue a new certificate containing the name and 
 16.9   address of the new secured party, and mail or deliver the 
 16.10  certificate to the first secured party named on it.  
 16.11     Sec. 15.  [84.937] [SECURITY INTEREST PREVIOUSLY 
 16.12  PERFECTED.] 
 16.13     (a) If a security interest in a recreational vehicle is 
 16.14  perfected under other applicable Minnesota law on January 1, 
 16.15  2000, the security interest continues perfected:  
 16.16     (1) until its perfection lapses under the law under which 
 16.17  it was perfected or would lapse in the absence of a further 
 16.18  filing; or 
 16.19     (2) until a certificate of title for the recreational 
 16.20  vehicle is issued and the security interest is perfected under 
 16.21  section 84.936. 
 16.22     (b) The assignment, release, or satisfaction of a 
 16.23  previously perfected security interest in a recreational vehicle 
 16.24  is governed by the laws under which it was perfected.  
 16.25     Sec. 16.  [84.9375] [SATISFACTION OF SECURITY INTEREST.] 
 16.26     Subdivision 1.  [RELEASE.] Upon the satisfaction of a 
 16.27  security interest in a recreational vehicle for which the 
 16.28  certificate of title is in the possession of the secured party, 
 16.29  the secured party, within 15 days, shall execute a release of 
 16.30  the security interest in the space provided on the certificate 
 16.31  or as prescribed by the commissioner, and mail or deliver the 
 16.32  certificate and release to the next secured party named or, if 
 16.33  none, to the owner or a person who delivers to the secured party 
 16.34  an authorization from the owner to receive the certificate.  The 
 16.35  owner, other than a dealer holding the recreational vehicle for 
 16.36  resale, shall promptly have the certificate, the release, and 
 17.1   the required fee mailed or delivered to the commissioner, who 
 17.2   shall release the secured party's rights on the certificate or 
 17.3   issue a new certificate.  
 17.4      Subd. 2.  [RELEASE OF SUBORDINATE SECURITY INTEREST.] Upon 
 17.5   the satisfaction of a security interest in a recreational 
 17.6   vehicle for which the certificate of title is in the possession 
 17.7   of a prior secured party, the secured party whose security 
 17.8   interest is satisfied shall execute a release in the form 
 17.9   prescribed by the commissioner and, within 15 days after 
 17.10  satisfaction, deliver the release to the owner or a person who 
 17.11  delivers to the secured party. 
 17.12     Sec. 17.  [84.938] [DISCLOSURE OF SECURITY AGREEMENT.] 
 17.13     A secured party named in a certificate of title, upon 
 17.14  written request of the owner or other secured party named on the 
 17.15  certificate, must disclose pertinent information about the 
 17.16  security agreement and the indebtedness secured by it. 
 17.17     Sec. 18.  [84.9385] [EFFECT OF SUSPENSION OR REVOCATION ON 
 17.18  SECURITY INTEREST.] 
 17.19     Suspension or revocation of a certificate of title does 
 17.20  not, in itself, affect the validity of a security interest noted 
 17.21  on it. 
 17.22     Sec. 19.  [84.939] [UNDISCLOSED SECURITY INTERESTS.] 
 17.23     If the commissioner is not satisfied that there are no 
 17.24  undisclosed security interests created before the recreational 
 17.25  vehicle is initially titled, the commissioner may, in addition 
 17.26  to the options under section 84.931, subdivision 4, issue a 
 17.27  distinctive certificate of title for the recreational vehicle 
 17.28  containing the legend:  "This recreational vehicle may be 
 17.29  subject to an undisclosed lien," and any other information the 
 17.30  commissioner prescribes.  
 17.31     Sec. 20.  [84.9393] [LIENS ATTACHING TO RECREATIONAL 
 17.32  VEHICLE.] 
 17.33     (a) A nonpossessory lien on a titled recreational vehicle 
 17.34  is not perfected unless a lien statement is filed with the 
 17.35  commissioner. 
 17.36     (b) The lien statement must include:  
 18.1      (1) the recreational vehicle owner's name and address; 
 18.2      (2) the statute under which the lien is taken; 
 18.3      (3) the name and address of the lienholder; and 
 18.4      (4) the title number of the recreational vehicle.  
 18.5      (c) The commissioner shall note the time and date of filing 
 18.6   the lien statement.  
 18.7      Sec. 21.  [84.9395] [STOLEN RECREATIONAL VEHICLE.] 
 18.8      Subdivision 1.  [DUTY OF PEACE OFFICERS.] A peace officer 
 18.9   aware of a stolen or converted recreational vehicle shall 
 18.10  immediately furnish the commissioner with information concerning 
 18.11  the theft or conversion. 
 18.12     Subd. 2.  [DUTY OF COMMISSIONER.] The commissioner, upon 
 18.13  receiving a report of the theft or conversion of a recreational 
 18.14  vehicle, shall record the report information, including the make 
 18.15  of the stolen or converted recreational vehicle and its 
 18.16  manufacturer's identification number, if any.  The commissioner 
 18.17  shall prepare a list of recreational vehicles reported stolen 
 18.18  and those recovered as disclosed by the reports submitted.  The 
 18.19  report may be distributed as the commissioner deems advisable. 
 18.20     Subd. 3.  [DUTY OF OWNER.] If a stolen or converted 
 18.21  recreational vehicle is recovered, the owner shall immediately 
 18.22  notify the commissioner.  
 18.23     Sec. 22.  [EFFECTIVE DATE.] 
 18.24     Sections 1 to 21 are effective January 1, 2000. 
 18.25                             ARTICLE 2 
 18.26                       CONFORMING AMENDMENTS 
 18.27     Section 1.  Minnesota Statutes 1998, section 84.79, is 
 18.28  amended to read: 
 18.29     84.79 [RULEMAKING; ACCIDENT REPORT.] 
 18.30     (a) With a view of achieving proper use of off-highway 
 18.31  motorcycles consistent with protection of the environment, the 
 18.32  commissioner, in consultation with the commissioners of public 
 18.33  safety and transportation, shall adopt rules under chapter 14 
 18.34  relating to: 
 18.35     (1) registration and titling of off-highway motorcycles and 
 18.36  display of registration numbers; 
 19.1      (2) use of off-highway motorcycles insofar as game and fish 
 19.2   resources are affected; 
 19.3      (3) use of off-highway motorcycles on public lands and 
 19.4   waters under the jurisdiction of the commissioner; 
 19.5      (4) uniform signs to be used by the state, counties, and 
 19.6   cities necessary or desirable to control, direct, or regulate 
 19.7   the operation and use of off-highway motorcycles; and 
 19.8      (5) off-highway motorcycle sound levels. 
 19.9      (b) The commissioner of public safety, in consultation with 
 19.10  the commissioners of natural resources and transportation, may 
 19.11  adopt rules under chapter 14 regulating the use of off-highway 
 19.12  motorcycles on public roads. 
 19.13     (c) The operator and an officer investigating an accident 
 19.14  of an off-highway motorcycle resulting in injury requiring 
 19.15  medical attention or hospitalization to or death of a person or 
 19.16  total damage to an extent of $500 or more shall forward within 
 19.17  ten days a written report of the accident to the commissioner on 
 19.18  a form prescribed by the commissioner. 
 19.19     Sec. 2.  Minnesota Statutes 1998, section 84.80, 
 19.20  subdivision 1, is amended to read: 
 19.21     Subdivision 1.  [RULES.] The commissioner shall adopt rules 
 19.22  under chapter 14 relating to: 
 19.23     (1) the use of off-road vehicles, in a manner consistent 
 19.24  with protection of the environment, on public lands and waters 
 19.25  under the jurisdiction of the commissioner of natural resources, 
 19.26  including measures to minimize adverse impacts on soils, waters, 
 19.27  vegetation, and wildlife; 
 19.28     (2) off-road vehicle equipment and safety standards, in 
 19.29  consultation with the commissioner of public safety; 
 19.30     (3) uniform signs to be used by the state, counties, and 
 19.31  cities to control, direct, or regulate the operation and use of 
 19.32  off-road vehicles; and 
 19.33     (4) maximum off-road vehicle sound levels; and 
 19.34     (5) titling of off-road vehicles. 
 19.35     Sec. 3.  Minnesota Statutes 1998, section 84.86, 
 19.36  subdivision 1, is amended to read: 
 20.1      Subdivision 1.  With a view of achieving maximum use of 
 20.2   snowmobiles consistent with protection of the environment the 
 20.3   commissioner of natural resources shall adopt rules in the 
 20.4   manner provided by chapter 14, for the following purposes: 
 20.5      (1) Registration and titling of snowmobiles and display of 
 20.6   registration numbers. 
 20.7      (2) Use of snowmobiles insofar as game and fish resources 
 20.8   are affected. 
 20.9      (3) Use of snowmobiles on public lands and waters, or on 
 20.10  grant-in-aid trails, including, but not limited to, the use of 
 20.11  specified metal traction devices and nonmetal traction devices. 
 20.12     (4) Uniform signs to be used by the state, counties, and 
 20.13  cities, which are necessary or desirable to control, direct, or 
 20.14  regulate the operation and use of snowmobiles. 
 20.15     (5) Specifications relating to snowmobile mufflers. 
 20.16     (6) A comprehensive snowmobile information and safety 
 20.17  education and training program, including but not limited to the 
 20.18  preparation and dissemination of snowmobile information and 
 20.19  safety advice to the public, the training of snowmobile 
 20.20  operators, and the issuance of snowmobile safety certificates to 
 20.21  snowmobile operators who successfully complete the snowmobile 
 20.22  safety education and training course.  For the purpose of 
 20.23  administering such program and to defray a portion of the 
 20.24  expenses of training and certifying snowmobile operators, the 
 20.25  commissioner shall collect a fee of not to exceed $5 from each 
 20.26  person who receives the youth and young adult training and a fee 
 20.27  established under chapter 16A from each person who receives the 
 20.28  adult training.  The commissioner shall deposit the fee in the 
 20.29  snowmobile trails and enforcement account and the amount thereof 
 20.30  is appropriated annually to the commissioner of natural 
 20.31  resources for the administration of such programs.  The 
 20.32  commissioner shall cooperate with private organizations and 
 20.33  associations, private and public corporations, and local 
 20.34  governmental units in furtherance of the program established 
 20.35  under this clause.  The commissioner shall consult with the 
 20.36  commissioner of public safety in regard to training program 
 21.1   subject matter and performance testing that leads to the 
 21.2   certification of snowmobile operators. 
 21.3      (7) The operator of any snowmobile involved in an accident 
 21.4   resulting in injury requiring medical attention or 
 21.5   hospitalization to or death of any person or total damage to an 
 21.6   extent of $500 or more, shall forward a written report of the 
 21.7   accident to the commissioner on such form as the commissioner 
 21.8   shall prescribe.  If the operator is killed or is unable to file 
 21.9   a report due to incapacitation, any peace officer investigating 
 21.10  the accident shall file the accident report within ten business 
 21.11  days. 
 21.12     Sec. 4.  Minnesota Statutes 1998, section 84.924, 
 21.13  subdivision 1, is amended to read: 
 21.14     Subdivision 1.  [COMMISSIONER OF NATURAL RESOURCES.] With a 
 21.15  view of achieving proper use of all-terrain vehicles consistent 
 21.16  with protection of the environment, the commissioner of natural 
 21.17  resources shall adopt rules under chapter 14 relating to: 
 21.18     (1) registration and titling of all-terrain vehicles and 
 21.19  display of registration numbers; 
 21.20     (2) use of all-terrain vehicles insofar as game and fish 
 21.21  resources are affected; 
 21.22     (3) use of all-terrain vehicles on public lands and waters; 
 21.23     (4) uniform signs to be used by the state, counties, and 
 21.24  cities necessary or desirable to control, direct, or regulate 
 21.25  the operation and use of all-terrain vehicles; and 
 21.26     (5) specifications relating to all-terrain vehicle mufflers.
 21.27     Sec. 5.  [EFFECTIVE DATE.] 
 21.28     Sections 1 to 4 are effective January 1, 2000.