HF 3296

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/07/2022 03:56pm

A bill for an act
relating to motor vehicles; amending various requirements governing motor vehicle
titles and disclosure; making technical and clarifying changes; amending Minnesota
Statutes 2020, sections 168A.01, subdivision 17b, by adding a subdivision;
168A.04, subdivisions 1, 4; 168A.05, subdivision 3; 168A.151, subdivision 1;
168A.152, subdivisions 1, 1a; 325F.662, subdivision 3; 325F.6641; 325F.6642;
325F.665, subdivision 14; repealing Minnesota Statutes 2020, sections 168A.01,
subdivision 17a; 325F.6644.

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

Section 1.

Minnesota Statutes 2020, section 168A.01, is amended by adding a subdivision
to read:

new text begin Subd. 16b. new text end

new text begin Recovered intact vehicle. new text end

new text begin "Recovered intact vehicle" means a vehicle that
was:
new text end

new text begin (1) verified by the vehicle insurer to be stolen and declared a total loss; and
new text end

new text begin (2) subsequently recovered with damage that is not in excess of 80 percent of its value
immediately before it was stolen.
new text end

Sec. 2.

Minnesota Statutes 2020, section 168A.01, subdivision 17b, is amended to read:

Subd. 17b.

Salvage vehicle.

new text begin (a) new text end "Salvage vehicle" means a vehicle deleted text begin that has a salvage
certificate of title deleted text end new text begin (1) for which an insurance company has declared a total loss or paid a
total loss claim, or (2) that has been involved in a collision or other event in which the cost
of repairs exceeds 80 percent of the value of the vehicle immediately before the damage
occurred new text end .

new text begin (b) Salvage vehicle does not include a recovered intact vehicle.
new text end

Sec. 3.

Minnesota Statutes 2020, section 168A.04, subdivision 1, is amended to read:

Subdivision 1.

Contents.

The application for the first certificate of title of a vehicle or
manufactured home in this state, or for reissuance of a certificate of title for a manufactured
home under section 168A.142, deleted text begin shall deleted text end new text begin must new text end be made by the owner to the department on the
form prescribed by the department and deleted text begin shall deleted text end new text begin must new text end contain:

(1) the first, middle, and last names, the dates of birth, and addresses of all owners who
are natural persons, the full names and addresses of all other owners;

(2) a description of the vehicle or manufactured home including, so far as the following
data exists, its make, model, year, identifying number in the case of a vehicle or serial
number in the case of a manufactured home, type of body, and whether new or used;

(3) the date of purchase by applicant, the name and address of the person from whom
the vehicle or manufactured home was acquired, the names and addresses of any secured
parties in the order of their priority, and the dates of their respective security agreements;

(4) with respect to motor vehicles subject to the provisions of section 325E.15, the true
cumulative mileage registered on the odometer or that the actual mileage is unknown if the
odometer reading is known by the owner to be different from the true mileage;

(5) deleted text begin with respect to vehicles subject to section 325F.6641, deleted text end whether the vehicle sustained
damage by collision or other occurrence deleted text begin which exceeded 70 percent of the actual cash value deleted text end new text begin
that meets the disclosure requirements under section 325F.6641, subdivision 1 new text end ; and

(6) any further information the department reasonably requires to identify the vehicle
or manufactured home and to enable it to determine whether the owner is entitled to a
certificate of title, and the existence or nonexistence and priority of any security interest in
the vehicle or manufactured home.

Sec. 4.

Minnesota Statutes 2020, section 168A.04, subdivision 4, is amended to read:

Subd. 4.

Vehicle last registered out of state.

If the application refers to a vehicle last
previously registered in another state or country, the application deleted text begin shall deleted text end new text begin must new text end contain or be
accompanied by:

(1) any certificate of title issued by the other state or country;

(2) any other information and documents the department reasonably requires to establish
the ownership of the vehicle and the existence or nonexistence and priority of any security
interest in it;

(3) the certificate of a person authorized by the department that the identifying number
of the vehicle has been inspected and found to conform to the description given in the
application, or any other proof of the identity of the vehicle the department reasonably
requires; and

(4) deleted text begin with respect to vehicles subject to section 325F.6641, deleted text end whether the vehicle sustained
damage by collision or other occurrence deleted text begin which exceeded 70 percent of actual cash value deleted text end new text begin
that meets the disclosure requirements under section 325F.6641, subdivision 1 new text end . Damage,
for the purpose of deleted text begin this deleted text end new text begin the new text end calculation new text begin under this clause new text end , 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.

Sec. 5.

Minnesota Statutes 2020, section 168A.05, subdivision 3, is amended to read:

Subd. 3.

Content of certificate.

(a) Each certificate of title issued by the department
deleted text begin shall deleted text end new text begin must new text end contain:

(1) the date issued;

(2) the first, middle, and last names and the dates of birth of all owners who are natural
persons, and the full names of all other owners;

(3) the residence address of the owner listed first if that owner is a natural person or the
address if that owner is not a natural person;

(4) the names of any secured parties, and the address of the first secured party, listed in
the order of priority (i) as shown on the application, or (ii) if the application is based on a
certificate of title, as shown on the certificate, or (iii) as otherwise determined by the
department;

(5) any liens filed pursuant to a court order or by a public agency responsible for child
support enforcement against the owner;

(6) the title number assigned to the vehicle;

(7) a description of the vehicle including, so far as the following data exists, its make,
model, year, identifying number, type of body, whether new or used, and if a new vehicle,
the date of the first sale of the vehicle for use;

(8) with respect to a motor vehicle subject to section 325E.15, (i) the true cumulative
mileage registered on the odometer or (ii) that the actual mileage is unknown if the odometer
reading is known by the owner to be different from the true mileage;

(9) new text begin if applicable, one or more of the following:
new text end

new text begin (i) new text end with respect to a vehicle subject to sections deleted text begin 325F.6641 deleted text end new text begin 168A.151 new text end and 325F.6642, the
appropriate deleted text begin term deleted text end new text begin brand new text end "flood damaged," deleted text begin "rebuilt," deleted text end new text begin "salvage," new text end "prior salvage," or
"reconstructed";

deleted text begin (10) deleted text end new text begin (ii) new text end with respect to a vehicle contaminated by methamphetamine production, if the
registrar has received the certificate of title and notice described in section 152.0275,
subdivision 2, paragraph (g), the deleted text begin term deleted text end new text begin brand new text end "hazardous waste contaminated vehicle"; new text begin and
new text end

deleted text begin (11) deleted text end new text begin (iii) new text end with respect to a vehicle subject to section 325F.665, the deleted text begin term deleted text end new text begin brand new text end "lemon
law vehicle"; and

deleted text begin (12) deleted text end new text begin (10) new text end any other data the department prescribes.

(b) For a certificate of title on a vehicle that is a restored pioneer vehicle:

(1) the identifying number must be the valid identifying number as provided under
section 168A.04, subdivision 5;

(2) the year of the vehicle must be the year of original vehicle manufacture and not the
year of restoration; and

(3) the title must not bear a "reconstructed vehicle" brand.

Sec. 6.

Minnesota Statutes 2020, section 168A.151, subdivision 1, is amended to read:

Subdivision 1.

Salvage deleted text begin titles deleted text end new text begin and prior salvage brands new text end .

(a) When an insurer, licensed
to conduct business in Minnesota, acquires ownership of a deleted text begin late-model or high-value deleted text end vehicle new text begin ,
excluding a recovered intact vehicle, new text end through payment of damages, the insurer deleted text begin shall deleted text end new text begin must:
new text end

new text begin (1) for a late-model or high-value vehicle, new text end immediately apply for a deleted text begin salvage deleted text end certificate
of title new text begin that bears a "salvage" brand new text end or deleted text begin shall deleted text end stamp the existing certificate of title with deleted text begin the
legend deleted text end " deleted text begin SALVAGE deleted text end new text begin salvage new text end deleted text begin CERTIFICATE OF TITLE deleted text end " in a manner prescribed by the
department new text begin ; or
new text end

new text begin (2) for a vehicle that is not subject to clause (1), immediately apply for a certificate of
title that bears a "prior salvage" brand new text end new text begin or stamp the existing certificate of title with "prior
salvage" in a manner prescribed by the department new text end .

new text begin (b) new text end Within ten days of obtaining the title of a vehicle through payment of damages, an
insurer must notify the department in a manner prescribed by the department.

deleted text begin (b) deleted text end new text begin (c) new text end A person deleted text begin shall deleted text end new text begin must new text end immediately apply for a deleted text begin salvage deleted text end certificate of title new text begin that bears
a "salvage" brand new text end if the person acquires a damaged late-model or high-value vehicle deleted text begin with
an out-of-state title and the vehicle deleted text end new text begin that new text end :

(1) deleted text begin is a vehicle that deleted text end was acquired by an insurer through payment of damages;

(2) deleted text begin is a vehicle for which the deleted text end new text begin will incur a new text end cost of repairs new text begin that new text end exceeds the value of the
damaged vehicle; deleted text begin or
deleted text end

(3) has an out-of-state salvage certificate of title as proof of ownership deleted text begin . deleted text end new text begin ; or
new text end

new text begin (4) bears the brand "damaged," "repairable," "salvage," or any similar term on the
certificate of title.
new text end

new text begin (d) A person must immediately apply for a certificate of title that bears a "prior salvage"
brand if the person acquires a damaged vehicle and:
new text end

new text begin (1) a "salvage" brand is not required under paragraph (c); and
new text end

new text begin (2) the vehicle:
new text end

new text begin (i) bears the brand "damaged," "repairable," "salvage," "rebuilt," "reconditioned," or
any similar term on the certificate of title; or
new text end

new text begin (ii) had a salvage certificate of title or brand issued at any time in the vehicle's history
by any other jurisdiction.
new text end

deleted text begin (c) deleted text end new text begin (e) new text end A self-insured owner of a deleted text begin late-model or high-value deleted text end vehicle that sustains damage
by collision or other occurrence which exceeds 80 percent of its actual cash value deleted text begin shall deleted text end new text begin
must new text end new text begin :
new text end

new text begin (1) for a late-model or high-value vehicle, new text end immediately apply for a deleted text begin salvage deleted text end certificate
of title deleted text begin . deleted text end new text begin that bears a "salvage" brand; or
new text end

new text begin (2) for a vehicle that is not subject to clause (1), immediately apply for a certificate of
title that bears a "prior salvage" brand.
new text end

Sec. 7.

Minnesota Statutes 2020, section 168A.152, subdivision 1, is amended to read:

Subdivision 1.

Certificate of inspection.

new text begin (a) new text end A deleted text begin salvage deleted text end certificate of title new text begin that bears a
"salvage" brand or stamp new text end authorizes the holder to possess, transport, and transfer ownership
in a vehicle. A deleted text begin salvage deleted text end certificate of title new text begin that bears a "salvage" brand or stamp new text end does not
authorize the holder to register a vehicle. deleted text begin A certificate of title must not be issued for a vehicle
for which a salvage certificate of title has been issued unless
deleted text end

new text begin (b) For a late-model or high-value vehicle with a certificate of title that bears a "salvage"
brand or stamp, the commissioner must not issue a certificate of title that bears a "prior
salvage" brand unless the application for title is accompanied by new text end a certification of inspection
in the form and content specified by the department deleted text begin accompanies the application for a
certificate of title deleted text end .

Sec. 8.

Minnesota Statutes 2020, section 168A.152, subdivision 1a, is amended to read:

Subd. 1a.

Duties of salvage vehicle purchaser.

No salvage vehicle purchaser shall
possess or retain a salvage vehicle which does not have a deleted text begin salvage deleted text end certificate of title new text begin that
bears a "salvage" brand new text end . The salvage vehicle purchaser deleted text begin shall deleted text end new text begin must new text end display the deleted text begin salvage deleted text end
certificate of title upon the request of any appropriate public authority.

Sec. 9.

Minnesota Statutes 2020, section 325F.662, subdivision 3, is amended to read:

Subd. 3.

Exclusions.

Notwithstanding the provisions of subdivision 2, a dealer is not
required to provide an express warranty for a used motor vehicle:

(1) sold for a total cash sale price of less than $3,000, including the trade-in value of
any vehicle traded in by the consumer, but excluding tax, license fees, registration fees, and
finance charges;

(2) with an engine designed to use diesel fuel;

(3) with a gross weight, as defined in section 168.002, subdivision 13, in excess of 9,000
pounds;

(4) that has been custom-built or modified for show or for racing;

(5) that is eight years of age or older, as calculated from the first day in January of the
designated model year of the vehicle;

(6) that has been produced by a manufacturer which has never manufactured more than
10,000 motor vehicles in any one year;

(7) that has 75,000 miles or more at time of sale;

(8) that has not been manufactured in compliance with applicable federal emission
standards in force at the time of manufacture as provided by the Clean Air Act, United
States Code, title 42, sections 7401 through 7642, and regulations adopted pursuant thereto,
and safety standards as provided by the National Traffic and Motor Safety Act, United
States Code, title 15, sections 1381 through 1431, and regulations adopted pursuant thereto;
or

(9) that has been issued a deleted text begin salvage deleted text end certificate of title new text begin that bears a "salvage" brand or stamp new text end
under section 168A.151.

Sec. 10.

Minnesota Statutes 2020, section 325F.6641, is amended to read:

325F.6641 DISCLOSURE OF VEHICLE DAMAGE.

Subdivision 1.

new text begin Prior new text end damage new text begin disclosure new text end .

(a) If a deleted text begin late-model deleted text end vehicle deleted text begin , as defined in
section 168A.01, subdivision 8a, deleted text end has sustained damage by collision or other occurrence
which exceeds 80 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 invoice.

(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 deleted text begin shall revise deleted text end new text begin must design new text end 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. deleted text begin 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.
deleted text end

deleted text begin (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.
deleted text end

Subd. 2.

deleted text begin Form of deleted text end Disclosure new text begin requirements new text end .

new text begin (a) If a motor vehicle dealer licensed under
section 168.27 offers a vehicle for sale in the course of a sales presentation to any prospective
buyer the dealer must provide a written disclosure and, except for sales performed online,
an oral disclosure of:
new text end

new text begin (1) prior vehicle damage as required under subdivision 1;
new text end

new text begin (2) the existence or requirement of any title brand under sections 168A.05, subdivision
3, 168A.151, 325F.6642, or 325F.665, subdivision 14, if the dealer has actual knowledge
of the brand; and
new text end

new text begin (3) if a motor vehicle, which is part of a licensed motor vehicle dealer's inventory, has
been submerged or flooded above the bottom dashboard while parked on the dealer's lot.
new text end

new text begin (b) If a person receives a flood disclosure as described in paragraph (a), clause (3),
whether from a motor vehicle dealer or another seller, and subsequently offers that vehicle
for sale, the person must provide the same disclosure to any prospective subsequent buyer.
new text end

new text begin (c) Written disclosure under this subdivision must be signed by the buyer and maintained
in the motor vehicle dealer's sales file in the manner prescribed by the registrar of motor
vehicles.
new text end

new text begin (d) new text end The disclosure required in deleted text begin this section deleted text end new text begin subdivision 1 new text end must be made in substantially
the following form: "To the best of my knowledge, this vehicle has ..... has not ..... sustained
damage in excess of 80 percent actual cash value."

Sec. 11.

Minnesota Statutes 2020, section 325F.6642, is amended to read:

325F.6642 TITLE BRANDING.

Subdivision 1.

Flood damage.

If the application for title and registration indicates that
the vehicle has been classified as a total loss deleted text begin vehicle deleted text end because of water or flood damage new text begin , or
that the vehicle bears a "flood damaged" or similar brand new text end , the registrar of motor vehicles
deleted text begin shall deleted text end new text begin must new text end record the deleted text begin term deleted text end new text begin brand new text end "flood damaged" on the certificate of title and all subsequent
certificates of title issued for that vehicle.

Subd. 2.

deleted text begin Total loss deleted text end new text begin Salvage new text end vehicles.

new text begin (a) new text end Upon transfer and application for title to all
deleted text begin total loss deleted text end vehicles new text begin for which the "salvage" brand is required under section 168A.151,
subdivision 1 new text end , the registrar of motor vehicles deleted text begin shall deleted text end new text begin must (1) new text end record the deleted text begin term deleted text end new text begin brand new text end " deleted text begin prior deleted text end
salvage" on the first deleted text begin Minnesota deleted text end certificate of title new text begin , new text end and new text begin (2) subject to section 168A.152,
record the brand "prior salvage" on new text end all subsequent deleted text begin Minnesota deleted text end certificates of title deleted text begin used deleted text end new text begin issued new text end
for that vehicle.

new text begin (b) Notwithstanding paragraph (a), a "prior salvage" brand is not required for a recovered
intact vehicle, as defined in section 168A.01, subdivision 16b.
new text end

deleted text begin Subd. 3. deleted text end

deleted text begin Out-of-state vehicles. deleted text end

deleted text begin (a) Upon transfer and application for title of all repaired
vehicles with out-of-state titles that bear the term "damaged," "salvage," "rebuilt,"
"reconditioned," or any similar term, the registrar of motor vehicles shall record the term
"prior salvage" on the first Minnesota certificate of title and all subsequent Minnesota
certificates of title used for that vehicle.
deleted text end

deleted text begin (b) The registrar shall mark "prior salvage" on the first Minnesota certificate of title and
all subsequent certificates of title issued for any vehicle which came into the state unrepaired
and for which a salvage certificate of title was issued.
deleted text end

deleted text begin (c) For vehicles with out-of-state titles which bear the term "flood damaged," the registrar
of motor vehicles shall record the term "flood damaged" on the first Minnesota certificate
of title and all subsequent Minnesota certificates of title issued for that vehicle.
deleted text end

deleted text begin (d) the registrar shall mark "prior salvage" on the first Minnesota certificate of title and
all subsequent certificates of title issued for any vehicle that had a salvage certificate of title
issued at any time in the vehicle's history by any other jurisdiction.
deleted text end

new text begin Subd. 2a. new text end

new text begin Prior salvage. new text end

new text begin Upon application for title to all vehicles for which the "prior
salvage" brand is required under section 168A.151, subdivision 1, the registrar of motor
vehicles must record the brand "prior salvage" on the certificate of title and all subsequent
certificates of title issued for that vehicle.
new text end

new text begin Subd. 2b. new text end

new text begin Certain damaged vehicles. new text end

new text begin Upon transfer and application for title to a vehicle
that is subject to section 325F.6641, subdivision 1, the registrar of motor vehicles must (1)
record the brand "salvage" on the first certificate of title, and (2) subject to section 168A.152,
record the brand "prior salvage" on all subsequent certificates of title issued for that vehicle.
new text end

Subd. 4.

Reconstructed vehicles.

For vehicles that are reconstructed within the meaning
of section 168A.15, the registrar deleted text begin shall deleted text end new text begin must new text end record the deleted text begin term deleted text end new text begin brand new text end "reconstructed" on the
certificate of title and all subsequent certificates of title.

Subd. 5.

Manner of branding.

deleted text begin The deleted text end new text begin Each brand new text end designation deleted text begin of "flood damaged," "rebuilt,"
"prior salvage," or "reconstructed" deleted text end new text begin under this section or section 168A.05, subdivision 3,
168A.151, or 325F.665, subdivision 14, required new text end on a certificate of title deleted text begin shall deleted text end new text begin must new text end be made
by the registrar of motor vehicles in a clear and conspicuous manner, in a deleted text begin color deleted text end new text begin format new text end
different from all other writing on the certificate of title.

deleted text begin Subd. 6. deleted text end

deleted text begin Total loss vehicle; definition. deleted text end

deleted text begin For the purposes of this section, "total loss
vehicle" means a vehicle damaged by collision or other occurrence, for which a salvage
certificate of title has been issued. Total loss vehicle does not include a stolen and recovered
vehicle verified by the insurer who declared the vehicle to be a total loss vehicle unless
there is more than minimal damage to the vehicle as determined by the registrar.
deleted text end

deleted text begin Subd. 7. deleted text end

deleted text begin Dealer disclosure. deleted text end

deleted text begin If a licensed motor vehicle dealer offers for sale a vehicle
with a branded title, the dealer shall orally disclose the existence of the brand in the course
of the sales presentation.
deleted text end

deleted text begin Subd. 8. deleted text end

deleted text begin Flood damage; dealer lots. deleted text end

deleted text begin If a motor vehicle, which is part of a licensed motor
vehicle dealer's inventory, has been submerged or flooded above the bottom of the dashboard
while parked on the dealer's lot, the dealer must disclose that fact in writing to any buyer
and must orally disclose that fact in the course of a sales presentation to any prospective
buyer. The buyer must also disclose the existence of the flood damage in writing to any
subsequent buyer.
deleted text end

Sec. 12.

Minnesota Statutes 2020, section 325F.665, subdivision 14, is amended to read:

Subd. 14.

Title branding.

(a) Upon transfer and application for title of all vehicles
subject to this section, the registrar of motor vehicles shall record the term "lemon law
vehicle" on the certificate of title and all subsequent certificates of title for that vehicle.

(b) For vehicles with out-of-state titles that bear the term "lemon law vehicle," or any
similar term, the registrar of motor vehicles shall record the term "lemon law vehicle" on
the first Minnesota certificate of title and all subsequent Minnesota certificates of title issued
for that vehicle.

deleted text begin (c) The designation of "lemon law vehicle" on a certificate of title must be made by the
registrar of motor vehicles in a clear and conspicuous manner, in a color different from all
other writing on the certificate of title.
deleted text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, sections 168A.01, subdivision 17a; and 325F.6644, new text end new text begin are repealed.
new text end

Sec. 14. new text begin EFFECTIVE DATE.
new text end

new text begin Unless specified otherwise, this act is effective January 1, 2023.
new text end

APPENDIX

Repealed Minnesota Statutes: H3296-1

168A.01 DEFINITIONS.

Subd. 17a.

Salvage title.

"Salvage title" means a certificate of title that is issued to a vehicle declared a repairable total loss vehicle under section 168A.151 and includes an existing certificate of title that has been stamped with the legend "salvage certificate of title" in accordance with section 168A.151.

325F.6644 APPLICATION.

Subdivision 1.

Damage disclosure.

Section 325F.6641 does not apply to commercial motor vehicles with a gross vehicle weight rating of 16,000 pounds or more or to motorcycles.

Subd. 2.

Title branding.

Section 325F.6642 does not apply to (1) commercial motor vehicles with a gross vehicle weight rating of 16,000 pounds or more or to motorcycles, other than reconstructed vehicles, as defined in section 168A.01, subdivision 16; and (2) restored pioneer vehicles, as defined in section 168A.01, subdivision 16a.