SF 1056

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to motor vehicles; providing for issuance of
registration plates and stickers to motor vehicle
dealers; providing for electronic transmission of
motor vehicle transfers; authorizing an optional
electronic transfer fee for electronic transfer of
ownership records; amending Minnesota Statutes 2004,
sections 168.27, by adding a subdivision; 168.33,
subdivision 7, by adding a subdivision; 168.66,
subdivision 14, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 168.27, is
amended by adding a subdivision to read:

new text begin Subd. 28. new text end

new text begin Distribution of plates and stickers. new text end

new text begin The
commissioner may distribute registration plates and stickers to
be held and issued by new and used motor vehicle dealers. A
dealer may issue registration plates and stickers only in
conjunction with and at the time of the sale of a vehicle by the
dealer. A dealer permitted to hold and issue registration
plates and stickers must be equipped with electronic
transmission technology and trained in its use. Before
receiving registration plates and stickers under this
subdivision a dealer must adopt and implement security and
record keeping requirements satisfactory to the commissioner.
The commissioner may revoke the authority granted under this
subdivision for any violation of law or rule governing the
issuance of registration plates and stickers, any violation of
the dealer's security and record keeping plan, or any other
action that in the commissioner's opinion adversely affects the
registration system. The dealer is financially responsible for
the cost and tax value of any unaccounted inventory.
new text end

Sec. 2.

Minnesota Statutes 2004, section 168.33,
subdivision 7, is amended to read:

Subd. 7.

Filing fee.

(a) In addition to all other
statutory fees and taxes, a filing fee of:

(i) $4.50 is imposed on every motor vehicle registration
renewal, excluding pro rate transactions; and

(ii) $7 is imposed on every other type of vehicle
transaction, including pro rate transactions;

except that a filing fee may not be charged for a document
returned for a refund or for a correction of an error made by
the Department of Public Safety, a licensed auto dealer, or a
deputy registrar. The filing fee must be shown as a separate
item on all registration renewal notices sent out by the
department. No filing fee or other fee may be charged for the
permanent surrender of a certificate of title and license plates
for a motor vehicle.

(b) Filing fees collected under this subdivision by the
department must be paid into the state treasury and credited to
the highway user tax distribution fund, except fees for
registrations of motor vehicles. Filing fees collected for
registrations of motor vehicles in conjunction with a title
transfer or first application in this state must be paid into
the state treasury with 50 percent of the money credited to the
general fund and 50 percent credited to the highway user tax
distribution fund.

deleted text begin (c) A motor vehicle dealer shall retain $2.50 of each
filing fee imposed under this subdivision for a completed
transaction involving the sale of a motor vehicle to or by a
licensed dealer, if the dealer electronically transmits the
transaction to the department or deputy registrar. The
department shall develop procedures to implement this
subdivision in consultation with the Minnesota Deputy Registrar
Association and the Minnesota Automobile Dealers Association.
Deputy registrars shall not be prohibited from receiving and
processing required documents supporting an electronic
transaction.
deleted text end

Sec. 3.

Minnesota Statutes 2004, section 168.33, is
amended by adding a subdivision to read:

new text begin Subd. 8a. new text end

new text begin Electronic transmission. new text end

new text begin If the commissioner
accepts electronic transmission of a motor vehicle transfer and
registration by a new or used motor vehicle dealer, a deputy
registrar who is equipped with electronic transmission
technology and trained in its use shall receive the filing fee
provided for in subdivision 7 and review the transfer of each
new or used motor vehicle to determine its genuineness and
regularity before issuance of a certificate of title, and shall
receive and retain the filing fee under subdivision 7, paragraph
(a), clause (ii).
new text end

Sec. 4.

Minnesota Statutes 2004, section 168.66,
subdivision 14, is amended to read:

Subd. 14.

Cash sale price.

"Cash sale price" means the
price at which the seller would in good faith sell to the buyer,
and the buyer would in good faith buy from the seller, the motor
vehicle which is the subject matter of the retail installment
contract, if such sale were a sale for cash, instead of a retail
installment sale. The cash sale price may include any taxes,
charges for delivery, servicing, repairing, or improving the
motor vehicle, including accessories and their installation, and
any other charges agreed upon between the parties. The cash
price may not include a documentary fee or document
administration fee in excess of $50 for services actually
rendered to, for, or on behalf of, the retail buyer in
preparing, handling, and processing documents relating to the
motor vehicle and the closing of the retail sale. new text begin "Documentary
fee" and "document administration fee" do not include an
optional electronic transfer fee as defined under subdivision 25.
new text end

Sec. 5.

Minnesota Statutes 2004, section 168.66, is
amended by adding a subdivision to read:

new text begin Subd. 25. new text end

new text begin Optional electronic transfer fee. new text end

new text begin "Optional
electronic transfer fee" means a charge for services agreed upon
between the parties for electronic transmission of ownership
records. The charge must be separately stated and identified as
"optional electronic transfer fee" on the sales agreement
maintained under Minnesota Rules, part 7400.5200. At least half
of the fee must be paid to an electronic transmission service
provider.
new text end