HF 2623

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to transportation; recategorizing certain 
  1.3             types of trailers for purposes of dealer bond 
  1.4             requirements; providing for an alternative type of 
  1.5             bond; amending Minnesota Statutes 2002, section 
  1.6             168.27, subdivision 24.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 168.27, 
  1.9   subdivision 24, is amended to read: 
  1.10     Subd. 24.  [BONDS.] (a) Except as otherwise provided in 
  1.11  this subdivision, all persons licensed according to this section 
  1.12  shall keep in full force and effect a bond with a corporate 
  1.13  surety to be approved by the registrar of motor vehicles in the 
  1.14  following amounts; in the case of boat trailer, snowmobile 
  1.15  trailer, horse trailer or motorized bicycle dealers, or dealers 
  1.16  in trailers designed to transport small construction or farm 
  1.17  equipment, in the amount of $5,000; and as to all other persons 
  1.18  in the amount of $50,000.  The bond must be conditioned on the 
  1.19  faithful performance by the licensee of the obligations imposed 
  1.20  on persons engaged in motor vehicle transactions by the laws of 
  1.21  this state, including the conduct required of a licensee by this 
  1.22  section and other sections governing the sale or transfer of 
  1.23  motor vehicles, and the payment of all taxes, license fees, and 
  1.24  penalties.  The bond must be for the benefit of the state of 
  1.25  Minnesota and any transferor, seller, or purchaser of a motor 
  1.26  vehicle for any monetary loss caused by failure of the licensee 
  2.1   to meet the obligations enumerated above.  Proceedings on the 
  2.2   forfeiture of the bonds must be commenced in the district court 
  2.3   of the county wherein the business of the licensed person was 
  2.4   carried on, or if in more than one county, the county in which 
  2.5   the offense occurred.  This subdivision does not apply to a used 
  2.6   vehicle parts dealer or a scrap metal processor. 
  2.7      (b) If a dealer required to have a $5,000 corporate surety 
  2.8   bond under this subdivision is unable to obtain one, as shown by 
  2.9   rejections from two companies in the business of issuing such 
  2.10  bonds, the dealer is exempt from the requirement to have a 
  2.11  corporate surety bond if the dealer executes and files with the 
  2.12  commissioner a signature bond signed by the dealer, without 
  2.13  sureties, on a bond form provided by the commissioner, for the 
  2.14  benefit of the same parties as bonds described in paragraph (a), 
  2.15  conditioned upon the requirements stated in paragraph (a), and 
  2.16  conditioned further upon the dealer: 
  2.17     (1) not having control of amounts owed by customers to the 
  2.18  state for motor vehicle excise taxes, registration fees, filing 
  2.19  fees, or any other purpose; 
  2.20     (2) instructing all customers to pay all amounts described 
  2.21  in clause (1) through customer checks written directly to the 
  2.22  state or to the appropriate state agency as payee; and 
  2.23     (3) ensuring that all customer payments of obligations to 
  2.24  the state described in clauses (1) and (2) are delivered to the 
  2.25  state within two business days. 
  2.26     Sec. 2.  [EFFECTIVE DATE.] 
  2.27     Section 1 is effective the day following final enactment.