Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

SF 1496

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 03/27/2019 08:52am

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

Current Version - 2nd Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8
1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18
7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 9.1 9.2 9.3
9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16
9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24
9.25 9.26 9.27 9.28 9.29 9.30
10.1 10.2 10.3 10.4 10.5
10.6 10.7 10.8
10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21
10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 11.1 11.2 11.3 11.4 11.5
11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21
11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29
12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29
13.30 13.31 13.32 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19
15.20
15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 16.1 16.2 16.3 16.4 16.5 16.6 16.7
16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15
16.16
16.17 16.18

A bill for an act
relating to motor vehicles; modifying various provisions governing motor vehicle
titling and registration;amending Minnesota Statutes 2018, sections 80E.13;
168.013, subdivisions 1a, 6; 168.27, by adding subdivisions; 168.301, subdivision
3; 168.33, subdivision 8a; 168.346, subdivision 1; 168A.12, subdivision 2; 168A.17,
by adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 168A.

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

Section 1.

Minnesota Statutes 2018, section 80E.13, is amended to read:


80E.13 UNFAIR PRACTICES BY MANUFACTURERS, DISTRIBUTORS,
FACTORY BRANCHES.

It is unlawful and an unfair practice for a manufacturer, distributor, or factory branch
to engage in any of the following practices:

(a) delay, refuse, or fail to deliver new motor vehicles or new motor vehicle parts or
accessories in reasonable time and in reasonable quantity relative to the new motor vehicle
dealer's facilities and sales potential in the dealer's relevant market area, after having accepted
an order from a new motor vehicle dealer having a franchise for the retail sale of any new
motor vehicle sold or distributed by the manufacturer or distributor, if the new motor vehicle
or new motor vehicle parts or accessories are publicly advertised as being available for
delivery or actually being delivered. This clause is not violated, however, if the failure is
caused by acts or causes beyond the control of the manufacturer;

(b) refuse to disclose to any new motor vehicle dealer handling the same line make, the
manner and mode of distribution of that line make within the relevant market area;

(c) obtain money, goods, service, or any other benefit from any other person with whom
the dealer does business, on account of, or in relation to, the transaction between the dealer
and the other person, other than for compensation for services rendered, unless the benefit
is promptly accounted for, and transmitted to, the new motor vehicle dealer;

(d) increase prices of new motor vehicles which the new motor vehicle dealer had ordered
for private retail consumers prior to the dealer's receiving the written official price increase
notification. A sales contract signed by a private retail consumer shall constitute evidence
of each order if the vehicle is in fact delivered to that customer. In the event of manufacturer
price reductions, the amount of any reduction received by a dealer shall be passed on to the
private retail consumer by the dealer if the retail price was negotiated on the basis of the
previous higher price to the dealer;

(e) offer any refunds or other types of inducements to any new motor vehicle dealer for
the purchase of new motor vehicles of a certain line make without making the same offer
to all other new motor vehicle dealers in the same line make within geographic areas
reasonably determined by the manufacturer;

(f) release to any outside party, except under subpoena or in an administrative or judicial
proceeding involving the manufacturer or dealer, any business, financial, or personal
information which may be provided by the dealer to the manufacturer, without the express
written consent of the dealer or unless pertinent to judicial or governmental administrative
proceedings or to arbitration proceedings of any kind;

(g) deny any new motor vehicle dealer the right of free association with any other new
motor vehicle dealer for any lawful purpose;

(h) unfairly discriminate among its new motor vehicle dealers with respect to warranty
reimbursement or authority granted its new vehicle dealers to make warranty adjustments
with retail customers;

(i) compete with a new motor vehicle dealer in the same line make operating under an
agreement or franchise from the same manufacturer, distributor, or factory branch. A
manufacturer, distributor, or factory branch is considered to be competing when it has an
ownership interest, other than a passive interest held for investment purposes, in a dealership
of its line make located within the state. A manufacturer, distributor, or factory branch shall
not, however, be deemed to be competing when operating a dealership, either temporarily
or for a reasonable period, which is for sale to any qualified independent person at a fair
and reasonable price, or when involved in a bona fide relationship in which an independent
person has made a significant investment subject to loss in the dealership and can reasonably
expect to acquire full ownership and full management and operational control of the
dealership within a reasonable time on reasonable terms and conditions;

(j) prevent a new motor vehicle dealer from transferring or assigning a new motor vehicle
dealership to a qualified transferee. There shall be no transfer, assignment of the franchise,
or major change in the executive management of the dealership, except as is otherwise
provided in sections 80E.01 to 80E.17, without consent of the manufacturer, which shall
not be withheld without good cause. In determining whether good cause exists for
withholding consent to a transfer or assignment, the manufacturer, distributor, factory
branch, or importer has the burden of proving that the transferee is a person who is not of
good moral character or does not meet the franchisor's existing and reasonable capital
standards and, considering the volume of sales and service of the new motor vehicle dealer,
reasonable business experience standards in the market area. Denial of the request must be
in writing and delivered to the new motor vehicle dealer within 60 days after the manufacturer
receives the completed application customarily used by the manufacturer, distributor, factory
branch, or importer for dealer appointments. If a denial is not sent within this period, the
manufacturer shall be deemed to have given its consent to the proposed transfer or change.
In the event of a proposed sale or transfer of a franchise, the manufacturer, distributor,
factory branch, or importer shall be permitted to exercise a right of first refusal to acquire
the franchisee's assets or ownership if:

(1) the franchise agreement permits the manufacturer, distributor, factory branch, or
importer to exercise a right of first refusal to acquire the franchisee's assets or ownership
in the event of a proposed sale or transfer;

(2) the proposed transfer of the dealership or its assets is of more than 50 percent of the
ownership or assets;

(3) the manufacturer, distributor, factory branch, or importer notifies the dealer in writing
within 60 days of its receipt of the complete written proposal for the proposed sale or transfer
on forms generally utilized by the manufacturer, distributor, factory branch, or importer for
such purposes and containing the information required therein and all documents and
agreements relating to the proposed sale or transfer;

(4) the exercise of the right of first refusal will result in the dealer and dealer's owners
receiving the same or greater consideration with equivalent terms of sale as is provided in
the documents and agreements submitted to the manufacturer, distributor, factory branch,
or importer under clause (3);

(5) the proposed change of 50 percent or more of the ownership or of the dealership
assets does not involve the transfer or sale of assets or the transfer or issuance of stock by
the dealer or one or more dealer owners to a family member, including a spouse, child,
stepchild, grandchild, spouse of a child or grandchild, brother, sister, or parent of the dealer
owner; to a manager who has been employed in the dealership for at least four years and is
otherwise qualified as a dealer operator; or to a partnership or corporation owned and
controlled by one or more of such persons; and

(6) the manufacturer, distributor, factory branch, or importer agrees to pay the reasonable
expenses, including reasonable attorney fees, which do not exceed the usual customary and
reasonable fees charged for similar work done for other clients incurred by the proposed
new owner and transferee before the manufacturer, distributor, factory branch, or importer
exercises its right of first refusal, in negotiating and implementing the contract for the
proposed change of ownership or transfer of dealership assets. However, payment of such
expenses and attorney fees shall not be required if the dealer has not submitted or caused
to be submitted an accounting of those expenses within 20 days after the dealer's receipt of
the manufacturer, distributor, factory branch, or importer's written request for such an
accounting. The manufacturer, distributor, factory branch, or importer may request such an
accounting before exercising its right of first refusal. The obligation created under this clause
is enforceable by the transferee;

(k) threaten to modify or replace or modify or replace a franchise with a succeeding
franchise that would adversely alter the rights or obligations of a new motor vehicle dealer
under an existing franchise or that substantially impairs the sales or service obligations or
investments of the motor vehicle dealer;

(l) unreasonably deny the right to acquire factory program vehicles to any dealer holding
a valid franchise from the manufacturer to sell the same line make of vehicles, provided
that the manufacturer may impose reasonable restrictions and limitations on the purchase
or resale of program vehicles to be applied equitably to all of its franchised dealers. For the
purposes of this paragraph, "factory program vehicle" has the meaning given the term in
section 80E.06, subdivision 2;

(m) fail or refuse to offer to its same line make franchised dealers all models manufactured
for that line make, other than alternative fuel vehicles as defined in section 216C.01,
subdivision 1b
. Failure to offer a model is not a violation of this section if the failure is not
arbitrary and is due to a lack of manufacturing capacity, a strike, labor difficulty, or other
cause over which the manufacturer, distributor, or factory branch has no control;

(n) require a dealer to pay an extra fee, or remodel, renovate, or recondition the dealer's
existing facilities, or purchase unreasonable advertising displays, training, tools, or other
materials, or to require the dealer to establish exclusive facilities or dedicated personnel as
a prerequisite to receiving a model or a series of vehicles;

(o) require a dealer by program, incentive provision, or otherwise to adhere to
performance standards that are not applied uniformly to other similarly situated dealers.

A performance standard, sales objective, or program for measuring dealership performance
that may have a material effect on a dealer, including the dealer's right to payment under
any incentive or reimbursement program, and the application of the standard or program
by a manufacturer, distributor, or factory branch must be fair, reasonable, equitable, and
based on accurate information. Upon written request by any of its franchised dealers located
within Minnesota, a manufacturer, distributor, or factory branch must provide the method
or formula used by the manufacturer in establishing the sales volumes for receiving a rebate
or incentive and the specific calculations for determining the required sales volumes of the
inquiring dealer and any of the manufacturer's other Minnesota-franchised new motor vehicle
dealers of the same line-make located within 75 miles of the inquiring dealer. Nothing
contained in this section requires a manufacturer, distributor, or factory branch to disclose
confidential business information of any of its franchised dealers or the required numerical
sales volumes that any of its franchised dealers must attain to receive a rebate or incentive.
An inquiring dealer may file a civil action as provided in section 80E.17 without a showing
of injury if a manufacturer, distributor, or factory branch fails to make the disclosure required
by this section.

A manufacturer, distributor, or factory branch has the burden of proving that the performance
standard, sales objective, or program for measuring dealership performance is fair, reasonable,
and uniformly applied under this section;

(p) assign or change a dealer's area of sales effectiveness arbitrarily or without due regard
to the present pattern of motor vehicle sales and registrations within the dealer's market.
The manufacturer, distributor, or factory branch must provide at least 90 days' notice of the
proposed change. The change may not take effect if the dealer commences a civil action
within the 90 days' notice period to determine whether the manufacturer, distributor, or
factory branch met its obligations under this section. The burden of proof in such an action
shall be on the manufacturer or distributor. In determining at the evidentiary hearing whether
a manufacturer, distributor, or factory branch has assigned or changed the dealer's area of
sales effectiveness or is proposing to assign or change the dealer's area of sales effectiveness
arbitrarily or without due regard to the present pattern of motor vehicle sales and registrations
within the dealer's market, the court may take into consideration the relevant circumstances,
including, but not limited to:

(1) the traffic patterns between consumers and the same line-make franchised dealers
of the affected manufacturer, distributor, or factory branch who are located within the
market;

(2) the pattern of new vehicle sales and registrations of the affected manufacturer,
distributor, or factory branch within various portions of the area of sales effectiveness and
within the market as a whole;

(3) the growth or decline in population, density of population, and new car registrations
in the market;

(4) the presence or absence of natural geographical obstacles or boundaries, such as
rivers;

(5) the proximity of census tracts or other geographic units used by the affected
manufacturer, factory branch, distributor, or distributor branch in determining the same
line-make dealers' respective areas of sales effectiveness; and

(6) the reasonableness of the change or proposed change to the dealer's area of sales
effectiveness, considering the benefits and harm to the petitioning dealer, other same
line-make dealers, and the manufacturer, distributor, or factory branch;

(q) to charge back, withhold payment, deny vehicle allocation, or take any other adverse
action against a dealer when a new vehicle sold by the dealer has been exported to a foreign
country, unless the manufacturer, distributor, or factory branch can show that at the time
of sale, the customer's information was listed on a known or suspected exporter list made
available to the dealer, or the dealer knew or reasonably should have known of the purchaser's
intention to export or resell the motor vehicle in violation of the manufacturer's export
policy. There is a rebuttable presumption that the dealer did not know or should not have
reasonably known that the vehicle would be exported or resold in violation of the
manufacturer's export policy if the vehicle is titled and registered in any state of the United
States; deleted text beginor
deleted text end

new text begin (r) to implement a charge back or withhold payment to a dealer that is solely due to an
unreasonable delay by the registrar, as defined in section 168.002, subdivision 29, in the
transfer or registration of a new motor vehicle. The dealer must give the manufacturer notice
of the state's delay in writing. Within 30 days of any notice of a charge back, withholding
of payments, or denial of a claim, the dealer must transmit to the manufacturer: (1)
documentation to demonstrate the vehicle sale and delivery as reported; and (2) a written
attestation signed by the dealer operator or general manager stating that the delay is
attributable to the state. This clause expires on June 30, 2022; or
new text end

deleted text begin (r)deleted text endnew text begin (s)new text end to require a dealer or prospective dealer by program, incentive provision, or
otherwise to construct improvements to its or a predecessor's facilities or to install new signs
or other franchisor image elements that replace or substantially alter improvements, signs,
or franchisor image elements completed within the preceding ten years that were required
and approved by the manufacturer, distributor, or factory branch, including any such
improvements, signs, or franchisor image elements that were required as a condition of the
dealer or predecessor dealer receiving an incentive or other compensation from the
manufacturer, distributor, or factory branch.

This paragraph shall not apply to a program or agreement that provides lump sum payments
to assist dealers in making facility improvements or to pay for signs or franchisor image
elements when such payments are not dependent on the dealer selling or purchasing specific
numbers of new vehicles and shall not apply to a program that is in effect with more than
one Minnesota dealer on August 1, 2018, nor to any renewal of such program, nor to a
modification that is not a substantial modification of a material term or condition of such
program.

Sec. 2.

Minnesota Statutes 2018, section 168.013, subdivision 1a, is amended to read:


Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined in
section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax is $10
plus an additional tax equal to 1.25 percent of the base value.

(b) Subject to the classification provisions herein, "base value" means the manufacturer's
suggested retail price of the vehicle including destination charge using list price information
published by the manufacturer or determined by the registrar if no suggested retail price
exists, and shall not include the cost of each accessory or item of optional equipment
separately added to the vehicle and the suggested retail price.new text begin In the case of the first
registration of a new vehicle sold or leased by a licensed dealer, the dealer may elect to
individually determine the base value of the vehicle using suggested retail price information
provided by the manufacturer. The registrar must use the base value determined by the
dealer to properly classify the vehicle. A dealer that elects to make the determination must
retain a copy of the suggested retail price label or other supporting documentation with the
vehicle transaction records maintained under Minnesota Rules, part 7400.5200.
new text end

(c) If the manufacturer's list price information contains a single vehicle identification
number followed by various descriptions and suggested retail prices, the registrar shall
select from those listings only the lowest price for determining base value.

(d) If unable to determine the base value because the vehicle is specially constructed,
or for any other reason, the registrar may establish such value upon the cost price to the
purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
or use tax or any local sales or other local tax.

(e) The registrar shall classify every vehicle in its proper base value class as follows:

FROM
TO
$
0
$ 199.99
$
200
$ 399.99

and thereafter a series of classes successively set in brackets having a spread of $200
consisting of such number of classes as will permit classification of all vehicles.

(f) The base value for purposes of this section shall be the middle point between the
extremes of its class.

(g) The registrar shall establish the base value, when new, of every passenger automobile
and hearse registered prior to the effective date of Extra Session Laws 1971, chapter 31,
using list price information published by the manufacturer or any nationally recognized
firm or association compiling such data for the automotive industry. If unable to ascertain
the base value of any registered vehicle in the foregoing manner, the registrar may use any
other available source or method. The registrar shall calculate tax using base value
information available to dealers and deputy registrars at the time the application for
registration is submitted. The tax on all previously registered vehicles shall be computed
upon the base value thus determined taking into account the depreciation provisions of
paragraph (h).

(h) The annual additional tax must be computed upon a percentage of the base value as
follows: during the first year of vehicle life, upon 100 percent of the base value; for the
second year, 90 percent of such value; for the third year, 80 percent of such value; for the
fourth year, 70 percent of such value; for the fifth year, 60 percent of such value; for the
sixth year, 50 percent of such value; for the seventh year, 40 percent of such value; for the
eighth year, 30 percent of such value; for the ninth year, 20 percent of such value; for the
tenth year, ten percent of such value; for the 11th and each succeeding year, the sum of $25.

(i) In no event shall the annual additional tax be less than $25.

(j) For any vehicle previously registered in Minnesota and regardless of prior ownership,
the total amount due under this subdivision and subdivision 1m must not exceed the smallest
total amount previously paid or due on the vehicle.

Sec. 3.

Minnesota Statutes 2018, section 168.013, subdivision 6, is amended to read:


Subd. 6.

Listing by dealers.

The owner of every motor vehicle not exempted by section
168.012 or 168.28deleted text begin, shalldeleted text endnew text begin mustnew text end, so long as it is subject to taxation within the state, new text beginannually
new text end list and register the same and pay the tax deleted text beginherein provided annuallydeleted text endnew text begin under this sectionnew text end;
provided, however, that any dealer in motor vehicles, to whom dealer's plates have been
issued as provided in this chapter, coming into the possession of deleted text beginany suchdeleted text endnew text begin anew text end motor vehicle
to be held solely for the purpose of sale or demonstration or both, deleted text beginshall bedeleted text endnew text begin isnew text end entitled to
withhold the tax new text begindue on the vehicle from the prior registration period or new text endbecoming due deleted text beginon
such vehicle
deleted text end for the following yearnew text begin and no lien for registration tax as provided in section
168.31, subdivision 6, shall attach
new text end. When, thereafter, deleted text beginsuchdeleted text endnew text begin thenew text end vehicle is otherwise used or
is sold, leased, or rented to another person, firm, corporation, or association, the tax for the
remainder of the year, prorated on a monthly basis, deleted text beginshall becomedeleted text endnew text begin becomesnew text end payable
immediately.

Sec. 4.

Minnesota Statutes 2018, section 168.27, is amended by adding a subdivision to
read:


new text begin Subd. 32. new text end

new text begin Multiple licenses. new text end

new text begin If a single legal entity holds more than one new or used
vehicle dealer license, new and used vehicles owned by the entity may be held and offered
for sale at any of the licensed dealership locations without assigning vehicle ownership or
title from one licensee to another. This subdivision does not authorize the sale or offering
for sale of new vehicles by a licensee that is not authorized by the manufacturer to sell that
make of new vehicles.
new text end

Sec. 5.

Minnesota Statutes 2018, section 168.27, is amended by adding a subdivision to
read:


new text begin Subd. 33. new text end

new text begin Designated dealer title and registration liaison. new text end

new text begin The registrar must designate
by name and provide contact information for one or more registrar employees as needed to
(1) promptly and effectively respond to questions from licensed dealers, and (2) troubleshoot
dealer issues related to vehicle titling and registration.
new text end

Sec. 6.

Minnesota Statutes 2018, section 168.301, subdivision 3, is amended to read:


Subd. 3.

Late fee.

In addition to any fee or tax otherwise authorized or imposed upon
the transfer of title for a motor vehicle, the commissioner of public safety shall impose a
$2 additional fee for failure to deliver a title transfer within ten business days.new text begin This
subdivision does not apply to transfers from licensed vehicle dealers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, or upon completion of the
necessary programming changes to the driver and vehicle services information system,
whichever is earlier.
new text end

Sec. 7.

Minnesota Statutes 2018, section 168.33, subdivision 8a, is amended to read:


Subd. 8a.

Electronic transmission.

new text begin(a) new text endIf 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 deleted text begin(ii)deleted text endnew text begin (2)new text end.

new text begin (b) The commissioner must establish reasonable performance, security, technical, and
financial standards to approve companies that provide computer software and services to
motor vehicle dealers to electronically transmit vehicle title transfer and registration
information. An approved company must be offered access to department facilities, staff,
and technology on a fair and reasonable basis.
new text end

Sec. 8.

Minnesota Statutes 2018, section 168.346, subdivision 1, is amended to read:


Subdivision 1.

Vehicle registration data; federal compliance.

(a) Data on an individual
provided to register a vehicle shall be treated as provided by United States Code, title 18,
section 2721, as in effect on May 23, 2005, and shall be disclosed as required or permitted
by that section. new text beginLicensed dealers may obtain data for uses as permitted by United States
Code, title 18, section 2721, subsections (b)(2), (3), (7), and (13).
new text endThe commissioner shall
disclose the data in bulk form to an authorized recipient upon request for any of the
permissible uses described in United States Code, title 18, section 2721.

(b) The registered owner of a vehicle who is an individual may consent in writing to the
commissioner to disclose the individual's personal information exempted by United States
Code, title 18, section 2721, to any person who makes a written request for the personal
information. If the registered owner is an individual and so authorizes disclosure, the
commissioner shall implement the request.

(c) If authorized by the registered owner as indicated in paragraph (b), the registered
owner's personal information may be used, rented, or sold solely for bulk distribution by
organizations for business purposes including surveys, marketing, or solicitation.

Sec. 9.

Minnesota Statutes 2018, section 168A.12, subdivision 2, is amended to read:


Subd. 2.

Owner's interest terminated or vehicle sold by secured party.

If the interest
of the owner is terminated or the vehicle is sold under a security agreement by a secured
party named in the certificate of titlenew text begin or an assignee of the secured partynew text end, the transferee shall
promptly mail or deliver to the department the last certificate of title, if available, an
application for a new certificate in the format the department prescribes, and an affidavit
made by or on behalf of the secured party new text beginor assignee new text endthat the interest of the owner was
lawfully terminated or the vehicle sold pursuant to the terms of the security agreement. If
the secured party new text beginor assignee new text endsucceeds to the interest of the owner and holds the vehicle for
resale, the secured party new text beginor assignee new text endneed not secure a new certificate of title provided that
a notice thereof in a format designated by the department is mailed or delivered by the
secured party new text beginor assignee new text endto the department in duplicate within 48 hours, but upon transfer
to another person the secured party new text beginor assignee new text endshall promptly execute assignment and
warranty of title and mail or deliver to the transferee or the department the certificate, if
available, the affidavit, and other documents required to be sent to the department by the
transferee.

Sec. 10.

Minnesota Statutes 2018, section 168A.17, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Notice of perfection by dealer. new text end

new text begin When a security interest in a vehicle sold by
a dealer licensed under section 168.27 is perfected under subdivision 2, the dealer may
provide a statement of perfection to the secured party on a form provided by the department.
The statement must certify compliance with subdivision 2 and contain the date of delivery
to the department. The information provided in the dealer's statement is considered prima
facie evidence of the facts contained in it.
new text end

Sec. 11.

new text begin [168A.241] DRIVER AND VEHICLE SERVICES EXECUTIVE STEERING
COMMITTEE.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "committee" means the Driver
and Vehicle Services Executive Steering Committee established in this section.
new text end

new text begin Subd. 2. new text end

new text begin Members. new text end

new text begin The committee consists of 22 members, appointed as follows:
new text end

new text begin (1) five members appointed by the commissioner of public safety who are employees
who work in the Driver and Vehicle Services Division;
new text end

new text begin (2) five members appointed by the chief information officer who are employees who
work in the Office of MN.IT Services, which must include leadership staff for the driver
and vehicle services information system;
new text end

new text begin (3) two members appointed by the executive director of the Minnesota Automobile
Dealers Association;
new text end

new text begin (4) one member appointed by the executive director of the Northland Independent
Automobile Dealer Association;
new text end

new text begin (5) one member who performs auctions exclusively for dealers licensed under section
168.27 and not for the general public, appointed by the commissioner following consultation
with eligible auto auctions;
new text end

new text begin (6) six members appointed by the board of directors of the Minnesota Deputy Registrars
Association; and
new text end

new text begin (7) two members appointed by the board of directors of the Minnesota Deputy Registrar
Business Owners Association.
new text end

new text begin Subd. 3. new text end

new text begin Terms; vacancies. new text end

new text begin Section 15.059 governs the committee, except that committee
members must not receive compensation for serving on the committee.
new text end

new text begin Subd. 4. new text end

new text begin Chair. new text end

new text begin The committee must elect a chair from among its members. The chair
serves for a term of four years and may not serve more than two full consecutive terms. If
a chair ceases to be a member of the committee, the committee shall select a chair to serve
the remainder of the vacated term and that partial term shall not count toward the chair's
term limit.
new text end

new text begin Subd. 5. new text end

new text begin Meetings. new text end

new text begin (a) The chair must convene the committee at least two times per
year.
new text end

new text begin (b) The committee is subject to chapter 13D. A committee meeting occurs when a quorum
is present and the members receive information, discuss, or take action on any matter relating
to the committee's duties. The committee may conduct meetings as provided in section
13D.015 or 13D.02. The committee may conduct meetings at any location in the state that
is appropriate for the purposes of the committee, provided the location is open and accessible
to the public. Enforcement of this paragraph is governed by section 13D.06, subdivisions
1 and 2.
new text end

new text begin Subd. 6. new text end

new text begin Administrative support. new text end

new text begin The commissioner must provide support staff, office
space, and administrative services for the committee.
new text end

new text begin Subd. 7. new text end

new text begin Duties. new text end

new text begin The committee's duties include, but are not limited to:
new text end

new text begin (1) serving in an advisory capacity to the commissioner of public safety and the director
of driver and vehicle services on matters relevant to oversight and accountability of projects
within driver and vehicle services that impact the information systems used to issue
identification cards and motor vehicle titles and registrations by:
new text end

new text begin (i) creating working groups to encourage participation with stakeholders and driver and
vehicle services staff on information system changes used for the issuance of identification
cards and motor vehicle titles and registrations; and
new text end

new text begin (ii) reviewing status reports from Independent Verification and Validation (IV&V)
services for projects and audits that impact driver and vehicle services information systems;
and
new text end

new text begin (2) reviewing and making recommendations with respect to work plans, policy initiatives,
major activities, and strategic planning, with regard to the issuance of identification cards
and providing motor vehicle title and registration services.
new text end

new text begin Subd. 8. new text end

new text begin Report and recommendations. new text end

new text begin By February 15 each year, the commissioner
must submit to the chairs and ranking minority members of the committees in the house of
representatives and the senate with jurisdiction over motor vehicle title and registration a
report that summarizes the committee's activities in the previous calendar year, the issues
identified by the committee, methods taken or suggested to address the issues, and
recommendations for legislative action, if needed. The report must include draft legislation
to implement recommended legislative action.
new text end

new text begin Subd. 9. new text end

new text begin Expiration. new text end

new text begin The committee expires June 30, 2029.
new text end

Sec. 12. new text beginVEHICLE REGISTRATION TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin (a) The Vehicle Registration Task Force consists of the
following 20 members:
new text end

new text begin (1) four senators, including two senators appointed by the senate majority leader and
two senators appointed by the senate minority leader;
new text end

new text begin (2) four members of the house of representatives, including two members appointed by
the speaker of the house and two members appointed by the minority leader of the house
of representatives;
new text end

new text begin (3) one member appointed by the governor from the Office of the Governor;
new text end

new text begin (4) the commissioner of transportation or a designee;
new text end

new text begin (5) the chief financial officer of the Department of Transportation or a designee;
new text end

new text begin (6) the commissioner of public safety or a designee;
new text end

new text begin (7) the director of Driver and Vehicle Services Division of the Department of Public
Safety or a designee;
new text end

new text begin (8) the chief financial officer of the Department of Public Safety or a designee;
new text end

new text begin (9) the state chief information officer or a designee;
new text end

new text begin (10) the chief financial officer of MN.IT Services or a designee;
new text end

new text begin (11) one deputy registrar appointed by the Minnesota Deputy Registrar Association;
new text end

new text begin (12) one deputy registrar appointed by the Minnesota Deputy Registrar Business Owners
Association; and
new text end

new text begin (13) two members, one of whom is familiar with the title and registration process,
appointed by the Minnesota Automobile Dealers Association.
new text end

new text begin (b) Appointing authorities must make initial appointments to the Vehicle Registration
Task Force by June 1, 2019.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The Vehicle Registration Task Force is established to study various
methods of vehicle registration and the corresponding fee structures. At a minimum, the
task force must study how each of the following methods could be implemented in Minnesota
in a revenue neutral manner: flat rate, weight-based, value-based, and age-based.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By January 15, 2020, the task force shall report to the chairs and ranking
minority members of the legislative committees with jurisdiction over transportation policy
and finance. The report must:
new text end

new text begin (1) summarize the activities of the task force;
new text end

new text begin (2) provide an explanation of how each method examined could be implemented in
Minnesota in a revenue neutral manner;
new text end

new text begin (3) provide recommendations by the task force on which method is preferable and why;
and
new text end

new text begin (4) include any draft legislation needed to implement the recommendations.
new text end

new text begin Subd. 4. new text end

new text begin First meeting; chair. new text end

new text begin The chair of the Legislative Coordinating Commission
must convene the first meeting of the Vehicle Registration Task Force by July 1, 2019. At
the first meeting, the task force shall elect a chair by a majority vote of those members
present.
new text end

new text begin Subd. 5. new text end

new text begin Meetings. new text end

new text begin The meetings of the commission are subject to Minnesota Statutes,
chapter 13D.
new text end

new text begin Subd. 6. new text end

new text begin Administration. new text end

new text begin (a) The Legislative Coordinating Commission shall provide
administrative services for the commission.
new text end

new text begin (b) The Department of Transportation, the Department of Public Safety, and MN.IT
Services must provide the task force with general informational and technical support.
new text end

new text begin Subd. 7. new text end

new text begin Compensation. new text end

new text begin Public members are compensated as provided in Minnesota
Statutes, section 15.059, subdivision 3.
new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin This section expires the day after submitting the report required
in subdivision 3 or on January 16, 2020, whichever is later.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13. new text beginDRIVER AND VEHICLE SERVICES EXECUTIVE STEERING
COMMITTEE FIRST APPOINTMENTS; FIRST MEETING; FIRST REPORT.
new text end

new text begin (a) Appointing authorities must make initial appointments to the Driver and Vehicle
Services Executive Steering Committee under Minnesota Statutes, section 168A.241, by
August 1, 2019.
new text end

new text begin (b) The commissioner of public safety must convene the first meeting of the Driver and
Vehicle Services Executive Steering Committee by September 15, 2019.
new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 168A.241, subdivision 5, paragraph
(a), the Driver and Vehicle Services Executive Steering Committee must meet one time in
2019.
new text end

new text begin (d) Notwithstanding Minnesota Statutes, section 168A.241, subdivision 8, the Driver
and Vehicle Services Executive Steering Committee must submit its first report under
subdivision 8 by February 15, 2020.
new text end

new text begin (e) By September 15, 2019, the commissioner of public safety must identify 11 of the
members who shall serve terms coterminous with the governor. The other 11 members shall
serve terms that end on the first Monday in January one year after the terms of the other
members.
new text end

Sec. 14. new text beginTEMPORARY MOTOR VEHICLE PERMITS.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, sections 168.09, subdivision 7; 168.091,
subdivision 1; and 168.092, subdivision 1, a temporary permit under any of those sections
may be issued for a period of up to 180 days, in consultation with the commissioner of
public safety.
new text end

new text begin (b) A temporary permit may only be issued under this section due to inability of the
driver and vehicle information system to complete a motor vehicle transaction in a timely
manner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15. new text beginEFFECTIVE DATE.
new text end

new text begin Except as otherwise provided, this act is effective August 1, 2019.
new text end