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SF 1379

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

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

Current Version - 1st Engrossment

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A bill for an act
relating to motor vehicles; excluding cost of air bag
repair or replacement and related repair costs from
motor vehicle damage calculations for salvage title
and consumer disclosure purposes; amending Minnesota
Statutes 2004, sections 168A.04, subdivision 4;
168A.151, subdivision 1; 325F.6641, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2004, 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 shall 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) with respect to vehicles subject to section 325F.6641,
whether the vehicle sustained damage by collision or other
occurrence which exceeded 70 percent of actual cash
value. new text beginDamage, for the purpose of this calculation, 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.
new text end

Sec. 2.

Minnesota Statutes 2004, section 168A.151,
subdivision 1, is amended to read:


Subdivision 1.

Salvage titles.

(a) When an insurer,
licensed to conduct business in Minnesota, acquires ownership of
a late-model or high-value vehicle through payment of damages,
the insurer shall immediately apply for a salvage certificate of
title or shall stamp the existing certificate of title with the
legend "SALVAGE CERTIFICATE OF TITLE" in a manner prescribed by
the department. Within 48 hours of taking possession of a
vehicle through payment of damages, an insurer must notify the
department in a manner prescribed by the department.

(b) Any person who acquires a damaged motor vehicle with an
out-of-state title and the cost of repairs exceeds the value of
the damaged vehicle or a motor vehicle with an out-of-state
salvage title or certificate, as proof of ownership, shall
immediately apply for a salvage certificate of title. A
self-insured owner of a late-model or high-value vehicle who
sustains damage by collision or other occurrence which exceeds
70 percent of its actual cash value shall immediately apply for
a salvage certificate of title. new text beginDamage, for the purpose of this
calculation, 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.
new text end

Sec. 3.

Minnesota Statutes 2004, section 325F.6641,
subdivision 1, is amended to read:


Subdivision 1.

Damage.

(a) If a motor vehicle has
sustained damage by collision or other occurrence which exceeds
70 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 invoicenew text begin, exclusive of 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
new text end.

(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 shall revise 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. 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.

(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.

Sec. 4.

Minnesota Statutes 2004, section 325F.6641,
subdivision 2, is amended to read:


Subd. 2.

Form of disclosure.

The disclosure required in
this section must be made in substantially the following form:
"To the best of my knowledge, this vehicle has ..... has not
..... sustained damagenew text begin, exclusive of any costs to repair,
replace, or reinstall air bags and other components that were
replaced due to deployment of air bags,
new text endin excess of 70 percent
actual cash value."