SF 2046

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 10/25/2023 09:17am

A bill for an act
relating to consumer protection; modifying and adding provision governing the
sale of certain motor vehicles; amending Minnesota Statutes 2022, sections 53C.01,
subdivision 12c, by adding a subdivision; 53C.08, subdivision 1a; 325F.662,
subdivisions 2, 3.

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

Section 1.

Minnesota Statutes 2022, section 53C.01, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Global positioning system starter interrupt device. new text end

new text begin "Global positioning
system starter interrupt device" or "GPS starter interrupt device" means a device installed
on a motor vehicle by a motor vehicle dealer that enables an individual who is not in
possession of the motor vehicle to remotely disable the motor vehicle's ignition. GPS starter
interrupt device includes a device commonly referred to as a fuel or ignition kill switch.
new text end

Sec. 2.

Minnesota Statutes 2022, section 53C.01, subdivision 12c, is amended to read:

Subd. 12c.

Theft deterrent device.

"Theft deterrent device" means the following devices:

(1) a vehicle alarm system;

(2) a window etch product;

(3) a body part marking product;

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

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

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

Sec. 3.

Minnesota Statutes 2022, section 53C.08, subdivision 1a, is amended to read:

Subd. 1a.

Disclosures required.

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:

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

(i) a service contract;

(ii) an insurance product;

(iii) a debt cancellation agreement;

(iv) a theft deterrent device; or

(v) a surface protection product;

(2) new text begin if a GPS starter interrupt device is installed on the motor vehicle, regardless of
whether the contract includes a charge for the GPS starter interrupt device;
new text end

new text begin (3) new text end 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;

deleted text begin (3) deleted text end new text begin (4) new text end 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

deleted text begin (4) deleted text end new text begin (5) new text end 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.

Sec. 4.

Minnesota Statutes 2022, section 325F.662, subdivision 2, is amended to read:

Subd. 2.

Written warranty required.

(a) Every used motor vehicle sold by a dealer is
covered by an express warranty which the dealer shall provide to the consumer new text begin in writing new text end .
At a minimum, the express warranty applies for the following terms:

(1) if the used motor vehicle has less than 36,000 miles, the warranty must remain in
effect for at least 60 days or 2,500 miles, whichever comes first;

(2) if the used motor vehicle has 36,000 miles or more, but less than 75,000 miles, the
warranty must remain in effect for at least 30 days or 1,000 miles, whichever comes first new text begin ;
and
new text end

new text begin (3) unless the vehicle is sold by a new motor vehicle dealer, as defined in section 168.27,
subdivision 2, if the used motor vehicle has 75,000 miles or more, the warranty must remain
in effect for at least 15 days or 500 miles, whichever comes first new text end .

(b) The express warranty must require the dealer, in the event of a malfunction, defect,
or failure in a covered part, to repair or replace the covered part, or at the dealer's election,
to accept return of the used motor vehicle from the consumer and provide a refund to the
consumer.

(c) For used motor vehicles with less than 36,000 miles, the dealer's express warranty
shall cover, at minimum, the following parts:

(1) with respect to the engine, all lubricated parts, intake manifolds, engine block, cylinder
head, rotary engine housings, and ring gear;

(2) with respect to the transmission, the automatic transmission case, internal parts, and
the torque converter; or, the manual transmission case, and the internal parts;

(3) with respect to the drive axle, the axle housings and internal parts, axle shafts, drive
shafts and output shafts, and universal joints; but excluding the secondary drive axle on
vehicles, other than passenger vans, mounted on a truck chassis;

(4) with respect to the brakes, the master cylinder, vacuum assist booster, wheel cylinders,
hydraulic lines and fittings, and disc brakes calipers;

(5) with respect to the steering, the steering gear housing and all internal parts, power
steering pump, valve body, piston, and rack;

(6) the water pump;

(7) the externally mounted mechanical fuel pump;

(8) the radiator;

(9) the alternator, generator, and starter.

(d) For used motor vehicles with 36,000 miles or more deleted text begin , but less than 75,000 miles, deleted text end the
dealer's express warranty shall cover, at minimum, the following parts:

(1) with respect to the engine, all lubricated parts, intake manifolds, engine block, cylinder
head, rotary engine housings, and ring gear;

(2) with respect to the transmission, the automatic transmission case, internal parts, and
the torque converter; or, the manual transmission case, and internal parts;

(3) with respect to the drive axle, the axle housings and internal parts, axle shafts, drive
shafts and output shafts, and universal joints; but excluding the secondary drive axle on
vehicles, other than passenger vans, mounted on a truck chassis;

(4) with respect to the brakes, the master cylinder, vacuum assist booster, wheel cylinders,
hydraulic lines and fittings, and disc brake calipers;

(5) with respect to the steering, the steering gear housing and all internal parts, power
steering pump, valve body, and piston;

(6) the water pump;

(7) the externally mounted mechanical fuel pump.

(e)(1) A dealer's obligations under the express warranty remain in effect notwithstanding
the fact that the warranty period has expired, if the consumer promptly notified the dealer
of the malfunction, defect, or failure in the covered part within the specified warranty period
and, within a reasonable time after notification, brings the vehicle or arranges with the dealer
to have the vehicle brought to the dealer for inspection and repair.

(2) If a dealer does not have a repair facility, the dealer shall designate where the vehicle
must be taken for inspection and repair.

(3) In the event the malfunction, defect, or failure in the covered part occurs at a location
which makes it impossible or unreasonable to return the vehicle to the selling dealer, the
consumer may have the repairs completed elsewhere with the consent of the selling dealer,
which consent may not be unreasonably withheld.

(4) Notwithstanding the provisions of this paragraph, a consumer may have nonwarranty
maintenance and nonwarranty repairs performed other than by the selling dealer and without
the selling dealer's consent.

(f) Nothing in this section diminishes the obligations of a manufacturer under an express
warranty issued by the manufacturer. The express warranties created by this section do not
require a dealer to repair or replace a covered part if the repair or replacement is covered
by a manufacturer's new car warranty, or the manufacturer otherwise agrees to repair or
replace the part.

(g) The express warranties created by this section do not cover defects or repair problems
which result from collision, abuse, negligence, or lack of adequate maintenance following
sale to the consumer.

(h) The terms of the express warranty, including the duration of the warranty and the
parts covered, must be fully, accurately, and conspicuously disclosed by the dealer on the
front of the Buyers Guide.

Sec. 5.

Minnesota Statutes 2022, 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) new text begin except for a used motor vehicle described in subdivision 2, paragraph (a), clause (3),
new text end 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) new text begin except for a used motor vehicle described in subdivision 2, paragraph (a), clause (3),
new text end 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;

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

deleted text begin (8) deleted text end new text begin (7) new text end 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

deleted text begin (9) deleted text end new text begin (8) new text end that has been issued a certificate of title that bears a "salvage" brand or stamp
under section 168A.151.