Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 186-S.F.No. 547 
           An act relating to motor vehicles; exempting from 
          certain franchising requirements those dealers who 
          remodel or convert motor vehicles for medical purposes;
          prohibiting issuance of a motor vehicle dealer license 
          to a person convicted of certain crimes; authorizing 
          immediate revocation or suspension of motor vehicle 
          dealer licenses upon conviction; removing an exception 
          allowing a motor vehicle dealer to register a vehicle 
          without a certificate of title; amending Minnesota 
          Statutes 1984, sections 168.27, subdivisions 2, 11, 
          12, and 24; and 168A.02, subdivision 2. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 168.27, 
subdivision 2, is amended to read: 
    Subd. 2.  [NEW MOTOR VEHICLE DEALER.] (a) No person shall 
engage in the business of selling or arranging the sale of new 
motor vehicles or shall offer to sell, solicit, arrange or 
advertise the sale of new motor vehicles without first acquiring 
a new motor vehicle dealer license.  A new motor vehicle dealer 
licensee shall be entitled thereunder to sell, broker, wholesale 
or auction and to solicit and advertise the sale, broker, 
wholesale or auction of new motor vehicles covered by his 
franchise and any used motor vehicles or to lease and to solicit 
and advertise the lease of new motor vehicles and any used motor 
vehicles and such sales or leases may be either for consumer use 
at retail or for resale to a dealer.  Nothing herein shall be 
construed to require an applicant for a dealer license who 
proposes to deal in new and unused motor vehicle bodies to have 
a bona fide contract or franchise in effect with the 
manufacturer or distributor of any motor vehicle chassis upon 
which the new and unused motor vehicle body is mounted.  
    (b) The requirements pertaining to franchises do not apply 
to persons who remodel or convert motor vehicles for medical 
purposes.  For purposes of this subdivision, "medical purpose" 
means certification by a licensed physician that remodeling or 
conversion of a motor vehicle is necessary to enable a 
handicapped person to use the vehicle. 
    Sec. 2.  Minnesota Statutes 1984, section 168.27, 
subdivision 11, is amended to read: 
    Subd. 11.  [LICENSES.] Upon the filing of an application 
for a license and the proper fee, the registrar is authorized, 
unless the application on its face appears to be invalid, to 
grant a 90 day temporary license and during said 90 day period 
shall investigate the fitness of the applicant, inspect the site 
and make such other investigation as is necessary to insure 
compliance with the licensing law.  The registrar may extend the 
temporary license 30 days.  At the end of the period of 
investigation the license shall either be granted or 
denied.  The license must be denied if within the previous five 
years the applicant was enjoined due to a violation of section 
325F.69 or convicted of violating sections 325E.14, 325E.15, 
325E.16, or 325F.69, or convicted under section 609.53 of 
receiving or selling stolen vehicles, or convicted of violating 
United States Code, title 15, sections 1981 to 1991, as amended 
through December 31, 1984.  If the application is approved, the 
registrar shall license the applicant as a motor vehicle dealer 
for the remainder of the calendar year, and issue a certificate 
of license therefor as the registrar may provide upon which 
shall be placed a distinguishing number of identification of 
such dealer. Each initial application for a license shall be 
accompanied by a fee of $50 in addition to the annual fee.  The 
annual fee shall be $76.  All initial fees and annual fees which 
shall be paid into the state treasury and credited to the 
general fund.  If the initial application is received by the 
registrar after July 1 of any year, the first annual fee shall 
be reduced by one-half. 
    Sec. 3.  Minnesota Statutes 1984, section 168.27, 
subdivision 12, is amended to read: 
    Subd. 12.  [GROUNDS FOR SUSPENSION AND REVOCATION.] A 
license may be suspended or revoked by the registrar of motor 
vehicles upon proof satisfactory to him of any of the following: 
             (1) Violations of any of the provisions of this chapter; 
             (2) Violation of or refusal to comply with the requests 
and order of the registrar; 
             (3) Failure to make or provide to the registrar all 
listings, notices, and reports required by him; 
             (4) Failure to pay to the registrar all taxes, fees, and 
arrears due from and by such dealer; 
             (5) Failure to duly apply for renewal of license provided 
for herein; 
             (6) Revocation of previous license, of which the records 
of the registrar relating thereto shall be prima facie evidence 
of such previous revocation; 
             (7) Failure of continued occupancy of an established place 
of business; 
             (8) Sale of a new and unused current model motor vehicle 
other than the make of motor vehicle described in the franchise 
or contract filed with the original application or renewal 
thereof, without permission from the registrar; 
             (9) Sale of a new and unused current model motor vehicle 
to anyone except for consumer use, or to a dealer duly licensed 
to sell the same make of motor vehicle; 
             (10) Material misstatement or misrepresentation in 
application for license or renewal thereof; 
             (11) Having advertised, printed, displayed, published, 
distributed, broadcast or televised or caused or permitted to be 
advertised, printed, displayed, published, distributed, 
broadcast or televised in any manner whatsoever, or having made 
orally any statement or representation with regard to the sale, 
lease or financing of motor vehicles which is false, deceptive 
or misleading; 
    (12) Having been convicted of making a fraudulent sale, 
lease, transaction or repossession or having been convicted of 
violating any of the provisions of sections 325.78 to 325.79 
violating section 325F.69, or having been enjoined due to a 
violation of section 325F.69; 
    (13) Having been convicted of violating the Minnesota 
odometer law, sections 325.821 to 325.824 section 325E.14, 
325E.15, or 325E.16, or the federal odometer law, United States 
Code, title 15 U.S.C., Sections 1981 to 1991, as amended through 
December 31, 1984; 
    (14) Having been convicted of violating the sale of motor 
vehicles on Sunday law, section 168.275; or 
    (15) Having been convicted under section 609.53 of 
receiving or selling stolen vehicles. 
    With respect to clauses (12), (13), and (15), the registrar 
may suspend or revoke a license immediately upon receiving 
certification of conviction or permanent injunction.  A hearing 
is required under subdivision 13 within 30 days following a 
summary suspension or revocation under this paragraph, if a 
hearing is requested by the licensee.  
    Sec. 4.  Minnesota Statutes 1984, section 168.27, 
subdivision 24, is amended to read: 
    Subd. 24.  [BONDS.] All persons licensed hereunder shall 
keep in full force and effect a bond with a corporate surety to 
be approved by the registrar of motor vehicles in amounts as 
herein provided; in the case of boat, snowmobile trailer, or 
motorized bicycle dealers in the amount of $5,000; and as to all 
other persons in the amount of $25,000.  The bond shall be 
conditioned on the faithful performance by the licensee of the 
obligations imposed by the laws of this state, including the 
conduct required of a licensee by this section and other 
sections governing the sale or transfer of motor vehicles, and 
the payment of all taxes, license fees and penalties.  The bond 
shall be for the benefit of the state of Minnesota and any 
transferor, seller, or purchaser of a motor vehicle for any 
monetary loss caused by failure of the licensee to meet the 
obligations enumerated above.  Proceedings on the forfeiture of 
the bonds shall be commenced in the district court of the county 
wherein the business of the licensed person was carried on, or 
if in more than one county, the county in which the offense 
occurred. 
    Sec. 5.  Minnesota Statutes 1984, section 168A.02, 
subdivision 2, is amended to read:  
    Subd. 2.  The department shall not register or renew the 
registration of a vehicle for which a certificate of title is 
required, except in the name of a dealer, unless a certificate 
of title has been issued to the owner or an application therefor 
has been delivered to and approved by the department. 
    Sec. 6.  [EFFECTIVE DATE.] 
    Sections 1 to 5 are effective the day following final 
enactment. 
    Approved May 23, 1985