SF 172

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/06/2012 01:52pm

A bill for an act
relating to natural resources; modifying certain requirements for titling
watercraft; amending Minnesota Statutes 2010, sections 86B.825, subdivision 3;
86B.830, subdivision 2; 86B.850, subdivision 1; 86B.885; repealing Minnesota
Statutes 2010, section 86B.850, subdivision 2.

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

Section 1.

Minnesota Statutes 2010, section 86B.825, subdivision 3, is amended to read:

Subd. 3.

Voluntary titling.

The owner of a device used or designed for navigation
on water and used on the waters of this state may obtain a certificate of title for the device,
even though it is not a watercraft as defined in section 86B.820, subdivision 14, in the
same manner and with the same effect as the owner of a watercraft required to be titled
under deleted text begin Laws 1989, chapter 335 deleted text end new text begin sections 86B.820 to 86B.920 new text end . Once titled, the device
is a titled watercraft as defined in section 86B.820, subdivision 13, and is and remains
subject to deleted text begin Laws 1989, chapter 335 deleted text end new text begin sections 86B.820 to 86B.920 new text end , to the same extent as a
watercraft required to be titled.

Sec. 2.

Minnesota Statutes 2010, section 86B.830, subdivision 2, is amended to read:

Subd. 2.

Issuance.

(a) The commissioner shall issue a certificate of title for a
watercraft upon verification that:

(1) the application is genuine;

(2) the applicant is the owner of the watercraft; and

(3) payment of the required fee.

(b) The original certificate of title must be mailed to the deleted text begin first secured party disclosed
in the application or, if none, to the deleted text end owner named in the application. new text begin Secured parties, if
any, must be mailed notification of their security interest filed.
new text end

Sec. 3.

Minnesota Statutes 2010, section 86B.850, subdivision 1, is amended to read:

Subdivision 1.

Form and issuance.

(a) The commissioner may issue a duplicate
certificate of title under this section. The duplicate certificate of title must be a certified
copy plainly marked "duplicate" across its face and must contain the legend: "This
duplicate certificate of title may be subject to the rights of a person under the original
certificate." It must be mailed deleted text begin to the first secured party named in it or, if none, deleted text end to the owner.
The commissioner shall indicate in the department records that a duplicate has been issued.

(b) As a condition to issuing a duplicate certificate of title, the commissioner may
require a bond from the applicant in the manner and form prescribed in section 86B.830,
subdivision 4, paragraph (b).

Sec. 4.

Minnesota Statutes 2010, section 86B.885, is amended to read:

86B.885 OWNER-CREATED SECURITY INTEREST.

Paragraphs (a) to (d) apply if an owner creates a security interest in a titled watercraft.

(a) The owner shall immediately execute the application in the space provided on the
certificate of title or on a separate form prescribed by the commissioner, show the name
and address of the secured party on the certificate, and have the certificate, application,
and required fee delivered to the secured party.

(b) The secured party shall immediately have the certificate, application, and
required fee mailed or delivered to the commissioner.

(c) deleted text begin Upon request of the owner or deleted text end new text begin A second or new text end subordinate secured party deleted text begin , a secured
party in possession of the certificate of title shall either (1) mail or deliver the certificate
to the subordinate secured party for delivery to the commissioner, or (2) upon receiving
from the subordinate secured party the owner's application and the required fee, mail or
deliver them to the commissioner with the certificate. The delivery of the certificate deleted text end does
not affect the rights of the first secured party under the security agreement.

(d) Upon receiving the certificate of title, application, and required fee, the
commissioner shall either endorse on the certificate or issue a new certificate containing
the name and address of the new secured party, and mail or deliver the certificate to the
deleted text begin first secured party named on it deleted text end new text begin owner. The secured party or parties shall be issued a
notification that the security interest has been recorded new text end .

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 86B.850, subdivision 2, new text end new text begin is repealed.
new text end