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SF 1333

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

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

Current Version - 3rd Engrossment

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A bill for an act
relating to commerce; enacting a car buyers' bill of rights; requiring disclosures;
regulating the sale of "certified" used motor vehicles; amending Minnesota
Statutes 2006, sections 53C.01, by adding subdivisions; 53C.08, by adding a
subdivision; 325F.662, subdivision 10, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapter 53C.

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

Section 1.

Minnesota Statutes 2006, section 53C.01, is amended by adding a
subdivision to read:


new text begin Subd. 12a. new text end

new text begin Service contract. new text end

new text begin "Service contract" means a motor vehicle service
contract as defined in section 65B.29.
new text end

Sec. 2.

Minnesota Statutes 2006, section 53C.01, is amended by adding a subdivision
to read:


new text begin Subd. 12b. new text end

new text begin Surface protection product. new text end

new text begin "Surface protection product" means the
following products:
new text end

new text begin (1) undercoating;
new text end

new text begin (2) rustproofing;
new text end

new text begin (3) chemical or film paint sealant or protectant; or
new text end

new text begin (4) chemical sealant or stain inhibitor for carpet and fabric.
new text end

Sec. 3.

Minnesota Statutes 2006, section 53C.01, is amended by adding a subdivision
to read:


new text begin Subd. 12c. new text end

new text begin Theft deterrent device. new text end

new text begin "Theft deterrent device" means the following
devices:
new text end

new text begin (1) a vehicle alarm system;
new text end

new text begin (2) a window etch product;
new text end

new text begin (3) a body part marking product;
new text end

new text begin (4) a steering lock;
new text end

new text begin (5) a pedal or ignition lock; or
new text end

new text begin (6) a fuel or ignition kill switch.
new text end

Sec. 4.

Minnesota Statutes 2006, section 53C.08, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Disclosures required. new text end

new text begin Prior to the execution of a retail installment
contract, the seller shall provide to a buyer, and obtain the buyer's signature on, a written
disclosure that sets forth the following information:
new text end

new text begin (1) a description and the total price of all items sold in the following categories if
the contract includes a charge for the item:
new text end

new text begin (i) a service contract;
new text end

new text begin (ii) an insurance product;
new text end

new text begin (iii) a debt cancellation agreement;
new text end

new text begin (iv) a theft deterrent device; or
new text end

new text begin (v) a surface protection product;
new text end

new text begin (2) the amount that would be calculated under the contract as the regular installment
payment if charges for the items referenced under clause (1) are not included in the
contract;
new text end

new text begin (3) the amount that would be calculated under the contract as the regular installment
payment if charges for the items referenced under clause (1) are included in the contract;
and
new text end

new text begin (4) the disclosures required under this subdivision must be in at least ten-point type
and must be contained in a single document that is separate from the retail installment
contract and any other vehicle purchase documents.
new text end

Sec. 5.

new text begin [53C.083] CONSUMER REPORT DISCLOSURE.
new text end

new text begin (a) When a consumer report from a consumer reporting agency has been obtained
by a lender or retail seller for use in connection with an application for credit initiated
by a buyer for the purchase or lease of a motor vehicle:
new text end

new text begin (1) the lender shall provide to the retail seller, upon written request of the buyer, and
unless required by federal law to provide the adverse action notice, prior to the sale or
lease of the motor vehicle, the name of each credit reporting agency providing a consumer
report that was obtained and used by the lender;
new text end

new text begin (2) the retail seller shall provide, prior to the sale or lease of the motor vehicle the
following notice in at least ten-point boldface type on a document separate from the sale
or lease contract, which must also include the name, address, and telephone number of
four principal consumer reporting agencies:
new text end

new text begin "NOTICE TO MOTOR VEHICLE CREDIT APPLICANT
new text end

new text begin A consumer report from a consumer reporting agency was used in connection with
your application to finance the acquisition of a motor vehicle. Consumer reports include
data about your credit history and payment patterns. Consumer reports are important
because they are used in determining whether to extend credit and may be used to
determine the annual percentage rate you may be offered.
new text end

new text begin If you have questions about your consumer report, you are entitled to know the
name, address, and telephone number of the consumer reporting agency that provided the
consumer report used to evaluate your loan application. You may ask the dealer for this
information. You may then contact the consumer reporting agency at the address and
telephone number provided. You are entitled under federal law to a free copy annually of
your consumer report by calling 1-877-322-8228 or visiting annualcreditreport.com"; and
new text end

new text begin (3) upon written request of the buyer, the retail seller shall obtain from the lender
the consumer reporting agency information specified in clause (1) and shall provide that
information to the buyer.
new text end

new text begin (b) This section does not require a dealer to provide more than one disclosure for
each purchase or lease transaction. For purposes of this section, "consumer report" and
"consumer reporting agency" have the meanings given in section 13C.001.
new text end

Sec. 6.

Minnesota Statutes 2006, section 325F.662, is amended by adding a subdivision
to read:


new text begin Subd. 8a. new text end

new text begin Certified motor vehicle. new text end

new text begin (a) It is unlawful for a dealer to advertise for
sale or sell a used motor vehicle as "certified" or use any similar descriptive term in
the advertisement or the sale of a used motor vehicle that implies the vehicle has been
certified to meet the terms of a used motor vehicle certification program if any of the
following apply:
new text end

new text begin (1) the dealer knows or should know that the odometer on the vehicle does not
indicate actual mileage, has been rolled back or otherwise altered to show fewer miles, or
has been replaced with an odometer showing fewer miles than actually driven;
new text end

new text begin (2) the dealer knows or should know that the vehicle was reacquired by the vehicle's
manufacturer or a dealer pursuant to state or federal warranty laws;
new text end

new text begin (3) the dealer knows or should know that the title to the vehicle has been inscribed
with the notation "damaged," "flood," "junk," "lemon law buyback," "manufacturer
repurchase," "nonrepairable," "rebuilt," "reconditioned," "salvage," or similar title
designation required by this state or another state;
new text end

new text begin (4) the dealer knows or should know that the vehicle has sustained damage in an
impact, fire, or flood, that substantially impairs the use or safety of the vehicle;
new text end

new text begin (5) the dealer knows or should know that the vehicle has sustained frame damage;
new text end

new text begin (6) prior to sale, the dealer fails to provide the buyer with a completed inspection
report indicating all the components inspected;
new text end

new text begin (7) the dealer disclaims any warranties of merchantability on the vehicle; or
new text end

new text begin (8) the vehicle is sold "AS IS".
new text end

new text begin (b) This section does not abrogate or limit any disclosure obligation imposed by
any other law.
new text end

Sec. 7.

Minnesota Statutes 2006, section 325F.662, subdivision 10, is amended to read:


Subd. 10.

Limitation on actions.

A private civil action brought by a consumer
under this section new text beginwith respect to a warranty claim new text endmust be commenced within one year
of the expiration of the express warranty.

Sec. 8. new text beginEFFECTIVE DATE.
new text end

new text begin This act is effective January 1, 2008.
new text end