SF 3883

as introduced - 91st Legislature (2019 - 2020) Posted on 03/03/2020 09:39am

A bill for an act
relating to motor vehicles; requiring new and used motor vehicle dealers to disclose
recalls prior to sale; amending Minnesota Statutes 2018, sections 325F.662, by
adding a subdivision; 325F.664.

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

Section 1.

Minnesota Statutes 2018, section 325F.662, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Disclosure of recalls. new text end

new text begin Prior to the sale of a used motor vehicle, a used motor
vehicle dealer must disclose to a consumer in writing any (1) federal safety recall for a
defect or noncompliance, or (2) federal emissions recall, that has been performed or applies
to the vehicle.
new text end

Sec. 2.

Minnesota Statutes 2018, section 325F.664, is amended to read:

325F.664 NEW MOTOR VEHICLE deleted text begin DAMAGE deleted text end DISCLOSURES.

Subdivision 1.

Definition.

For the purposes of this section, the term "new motor vehicle"
means a motor vehicle as defined in section 80E.03, subdivision 7, including vehicles driven
for demonstration purposes.

Subd. 2.

Disclosure of damage exceeding four percent of retail price new text begin ; federal
recalls new text end .

(a) Before the sale of a new motor vehicle, a dealer must disclose and describe to
the buyer, in a clear and conspicuous written statement and orally in the course of the sales
presentation deleted text begin , deleted text end new text begin :
new text end

new text begin (1) new text end any damage to the vehicle of which the dealer had actual knowledge, if the dealer's
cost of repairs exceeded four percent of the manufacturer's suggested retail price, or $500,
whichever is greater deleted text begin . deleted text end new text begin ; and
new text end

new text begin (2) any (i) federal safety recall for a defect or noncompliance, or (ii) federal emissions
recall, that has been performed or applies to the new motor vehicle.
new text end

(b) A manufacturer, distributor, or importer must disclose and describe to its franchised
dealers, in a clear and conspicuous written statement, any repaired damage exceeding four
percent of the manufacturer's suggested retail price, or $500, whichever is greater.

(c) Damaged or stolen glass, tires, wheels, bumpers, radios, and in-dash audio components
are excluded from the disclosure requirements of this subdivision if the damaged or stolen
parts are replaced with identical manufacturer's original equipment.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective August 1, 2020, and apply to sales of new and used motor
vehicles on and after that date.
new text end