Minnesota Session Laws - 2002, Regular Session

                            CHAPTER 343-S.F.No. 3075 
                  An act relating to motor vehicles; providing for 
                  payment of sales tax on a motor vehicle sold in 
                  violation of dealer licensing requirements; abolishing 
                  misdemeanor penalty for committing fraud in an 
                  application for certificate of title to a motor 
                  vehicle; amending Minnesota Statutes 2000, sections 
                  168A.30, subdivision 2; 297B.035, subdivision 3. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 168A.30, 
        subdivision 2, is amended to read: 
           Subd. 2.  [WILLFUL OR FRAUDULENT ACT OR FAILURE TO ACT; 
        MISDEMEANORS.] A person is guilty of a misdemeanor who: 
           (1) with fraudulent intent permits another, not entitled 
        thereto, to use or have possession of a certificate of title; 
           (2) willfully fails to mail or deliver a certificate of 
        title to the department within the time required by sections 
        168A.01 to 168A.31; 
           (3) willfully fails to deliver to the transferee a 
        certificate of title within ten days after the time required by 
        sections 168A.01 to 168A.31; 
           (4) commits a fraud in any application for a certificate of 
        title; 
           (5) fails to notify the department of any fact as required 
        by sections 168A.01 to 168A.31, except for the facts included in 
        the notice of sale described in section 168A.10, subdivision 1; 
        or 
           (6) (5) willfully violates any other provision of sections 
        168A.01 to 168A.31 except as otherwise provided in sections 
        168A.01 to 168A.31. 
           Sec. 2.  Minnesota Statutes 2000, section 297B.035, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SALE IN VIOLATION OF LICENSING REQUIREMENT.] 
        Motor vehicles sold by a new motor vehicle dealer in 
        contravention of section 168.27, subdivision 2, paragraph (a), 
        3, 6, or 10, paragraph (a), clause (1)(ii), shall not be 
        considered to have been acquired or purchased for resale in the 
        ordinary or regular course of business for the purposes of this 
        chapter, and the dealer seller shall be required to pay the 
        excise tax due on the purchase of those vehicles.  The sale by a 
        lessor of a new motor vehicle under lease within 120 days of the 
        commencement of the lease is deemed a sale in contravention of 
        section 168.27, subdivision 10, paragraph (a), clause (1)(ii), 
        unless the lessor holds a valid contract or franchise with the 
        manufacturer or distributor of the vehicle.  Notwithstanding 
        section 297B.11, the rights of a dealer to appeal any amounts 
        owed by the dealer under this subdivision are governed 
        exclusively by the hearing procedure under section 168.27, 
        subdivision 13. 
           [EFFECTIVE DATE.] This section is effective for sales and 
        purchases occurring after June 30, 2002. 
           Presented to the governor April 15, 2002 
           Signed by the governor April 17, 2002, 9:36 a.m.