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Minnesota Legislature

Office of the Revisor of Statutes

HF 2736

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 04/02/2012 11:54am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/07/2012
1st Engrossment Posted on 03/22/2012

Current Version - 1st Engrossment

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A bill for an act
relating to public safety; motor vehicles; motor vehicle dealer regulations;
expanding the class of eligible buyers for junked vehicles; directing the
commissioner of public safety to make certain changes to Minnesota Rules;
amending Minnesota Statutes 2010, sections 168.27, subdivisions 2, 3, 3c;
168A.151, subdivision 6.

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

Section 1.

Minnesota Statutes 2010, section 168.27, subdivision 2, is amended to read:


Subd. 2.

New motor vehicle dealer.

(a) A new motor vehicle dealer licensee may
sell, broker, wholesale, or auction and solicit and advertise the sale, brokerage, wholesale,
or auction of new motor vehicles covered by the franchise and any used motor vehicles,
and may lease and solicit and advertise the lease of new motor vehicles and any used
motor vehicles. New motor vehicle dealer sales or leases may be either for consumer
use at retail or for resale to a dealer. A new motor vehicle dealer may engage in the
business of buying or otherwise acquiring vehicles for dismantling the vehicles and
selling used parts and remaining scrap materials under chapter 168A, except that a new
motor vehicle dealer may not purchase a junked vehicle from a salvage pool, insurance
company, or its agent unless the dealer is also licensed as a used vehicle parts dealernew text begin or
licensed as a scrap metal processor
new text end. Nothing in this subdivision requires an applicant for
a dealer license who proposes to deal in: (1) new and unused motor vehicle bodies; or
(2) type A, B, or C motor homes as defined in section 168.002, subdivision 27, to have
a bona fide contract or franchise in effect with either the first-stage manufacturer of the
motor home or the manufacturer or distributor of any motor vehicle chassis upon which
the new and unused motor vehicle body is mounted. The modification or conversion
of a new van-type vehicle into a multipurpose passenger vehicle which is not a motor
home does not constitute dealing in new or unused motor vehicle bodies, and a person
engaged in the business of selling these van-type vehicles must have a bona fide contract
or franchise with the appropriate manufacturer under subdivision 10. A van converter
or modifier who owns these modified or converted van-type vehicles may sell them at
wholesale to new motor vehicle dealers having a bona fide contract or franchise with the
first-stage manufacturer of the vehicles.

(b) The requirements pertaining to franchises do not apply to persons who remodel
or convert motor vehicles for medical purposes. For purposes of this subdivision, "medical
purpose" means certification by a licensed physician that remodeling or conversion of a
motor vehicle is necessary to enable a disabled person to use the vehicle.

(c) A new motor vehicle dealer shall not deliver a manufacturer's or importer's
certificate of origin for a passenger automobile, pickup truck, or van requiring a certificate
of title according to chapter 168A to any person in conjunction with the sale of a vehicle
except to the department, another new motor vehicle dealer licensed to sell the same
line or make, or a person whose primary business is picking up and delivering motor
vehicle title documents.

(d) If a new motor vehicle dealer agrees to sell or lease a new motor vehicle using
the services of a motor vehicle broker, the new motor vehicle dealer may not refuse to
deliver possession of the vehicle to the buyer or lessee. This paragraph does not require
delivery unless all arrangements have been properly completed for payment, insurance
required by law, titling, transfer, and registration of the new vehicle and any trade-in
vehicle. Delivery may take place at or away from the dealership.

Sec. 2.

Minnesota Statutes 2010, section 168.27, subdivision 3, is amended to read:


Subd. 3.

Used motor vehicle dealer.

A used motor vehicle dealer licensee may sell,
lease, broker, wholesale, or auction and solicit and advertise the sale, lease, brokerage,
wholesale, or auction of any used motor vehicles for consumer use at retail or for resale to
a dealer. A used motor vehicle dealer may engage in the business of buying or otherwise
acquiring vehicles for dismantling the vehicles and selling used parts and remaining scrap
materials under chapter 168A, except that a used motor vehicle dealer may not acquire a
junked vehicle from a salvage pool, insurance company, or its agent, unless the dealer is
also licensed as a used vehicle parts dealernew text begin or licensed as a scrap metal processornew text end.

Sec. 3.

Minnesota Statutes 2010, section 168.27, subdivision 3c, is amended to read:


Subd. 3c.

Vehicle salvage pool.

A vehicle salvage pool licensee may store and
display and may solicit and advertise the storing and displaying, for sale, of damaged or
junked vehicles as an agent or escrow agent of an insurance company. A vehicle salvage
pool licensee shall not sell junked vehicles to any party other than a licensed used parts
dealernew text begin or a licensed scrap metal processornew text end.

Sec. 4.

Minnesota Statutes 2010, section 168A.151, subdivision 6, is amended to read:


Subd. 6.

Authority under junking certificate.

A junking certificate authorizes the
holder only to possess and transport the vehicle, except that a salvage pool or insurance
company, or its agent, may sell an unrepairable total loss vehicle with a junking certificate
to a licensed used parts dealernew text begin or a licensed scrap metal processornew text end.

Sec. 5. new text beginRULE CHANGE.
new text end

new text begin The commissioner shall amend Minnesota Rules, part 7400.5300, subpart 3, to
remove the words "from Minnesota" and to allow a dealer to sell a junked vehicle as
described in Minnesota Rules, part 7400.5300, subpart 3, to a purchaser whom the
dealer verifies is a licensed scrap metal processor. The commissioner must comply with
Minnesota Statutes, section 14.389, subdivision 5, in adopting the amendment.
new text end