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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 45-S.F.No. 1056 
                  An act relating to motor vehicles; providing for 
                  issuance of registration plates and stickers to motor 
                  vehicle dealers; providing for electronic transmission 
                  of motor vehicle transfers; authorizing an optional 
                  electronic transfer fee for electronic transfer of 
                  ownership records; amending Minnesota Statutes 2004, 
                  sections 168.27, by adding a subdivision; 168.33, 
                  subdivision 7, by adding a subdivision; 168.66, 
                  subdivision 14, by adding a subdivision. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2004, section 168.27, is 
        amended by adding a subdivision to read: 
           Subd. 28.  [DISTRIBUTION OF PLATES AND STICKERS.] The 
        commissioner may distribute registration plates and stickers to 
        be held and issued by new and used motor vehicle dealers.  A 
        dealer may issue registration plates and stickers only in 
        conjunction with and at the time of the sale of a vehicle by the 
        dealer.  A dealer permitted to hold and issue registration 
        plates and stickers must be equipped with electronic 
        transmission technology and trained in its use.  Before 
        receiving registration plates and stickers under this 
        subdivision a dealer must adopt and implement security and 
        record keeping requirements satisfactory to the commissioner.  
        The commissioner may revoke the authority granted under this 
        subdivision for any violation of law or rule governing the 
        issuance of registration plates and stickers, any violation of 
        the dealer's security and record keeping plan, or any other 
        action that in the commissioner's opinion adversely affects the 
        registration system.  The dealer is financially responsible for 
        the cost and tax value of any unaccounted inventory. 
           Sec. 2.  Minnesota Statutes 2004, section 168.33, 
        subdivision 7, is amended to read: 
           Subd. 7.  [FILING FEE.] (a) In addition to all other 
        statutory fees and taxes, a filing fee of: 
           (i) $4.50 is imposed on every motor vehicle registration 
        renewal, excluding pro rate transactions; and 
           (ii) $7 is imposed on every other type of vehicle 
        transaction, including pro rate transactions; 
        except that a filing fee may not be charged for a document 
        returned for a refund or for a correction of an error made by 
        the Department of Public Safety, a licensed auto dealer, or a 
        deputy registrar.  The filing fee must be shown as a separate 
        item on all registration renewal notices sent out by the 
        department.  No filing fee or other fee may be charged for the 
        permanent surrender of a certificate of title and license plates 
        for a motor vehicle.  
           (b) Filing fees collected under this subdivision by the 
        department must be paid into the state treasury and credited to 
        the highway user tax distribution fund, except fees for 
        registrations of motor vehicles.  Filing fees collected for 
        registrations of motor vehicles in conjunction with a title 
        transfer or first application in this state must be paid into 
        the state treasury with 50 percent of the money credited to the 
        general fund and 50 percent credited to the highway user tax 
        distribution fund. 
           (c) A motor vehicle dealer shall retain $2.50 of each 
        filing fee imposed under this subdivision for a completed 
        transaction involving the sale of a motor vehicle to or by a 
        licensed dealer, if the dealer electronically transmits the 
        transaction to the department or deputy registrar.  The 
        department shall develop procedures to implement this 
        subdivision in consultation with the Minnesota Deputy Registrar 
        Association and the Minnesota Automobile Dealers Association.  
        Deputy registrars shall not be prohibited from receiving and 
        processing required documents supporting an electronic 
        transaction. 
           Sec. 3.  Minnesota Statutes 2004, section 168.33, is 
        amended by adding a subdivision to read: 
           Subd. 8a.  [ELECTRONIC TRANSMISSION.] If 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 (ii). 
           Sec. 4.  Minnesota Statutes 2004, section 168.66, 
        subdivision 14, is amended to read: 
           Subd. 14.  [CASH SALE PRICE.] "Cash sale price" means the 
        price at which the seller would in good faith sell to the buyer, 
        and the buyer would in good faith buy from the seller, the motor 
        vehicle which is the subject matter of the retail installment 
        contract, if such sale were a sale for cash, instead of a retail 
        installment sale.  The cash sale price may include any taxes, 
        charges for delivery, servicing, repairing, or improving the 
        motor vehicle, including accessories and their installation, and 
        any other charges agreed upon between the parties.  The cash 
        price may not include a documentary fee or document 
        administration fee in excess of $50 for services actually 
        rendered to, for, or on behalf of, the retail buyer in 
        preparing, handling, and processing documents relating to the 
        motor vehicle and the closing of the retail sale.  "Documentary 
        fee" and "document administration fee" do not include an 
        optional electronic transfer fee as defined under subdivision 25.
           Sec. 5.  Minnesota Statutes 2004, section 168.66, is 
        amended by adding a subdivision to read: 
           Subd. 25.  [OPTIONAL ELECTRONIC TRANSFER FEE.] "Optional 
        electronic transfer fee" means a charge for services agreed upon 
        between the parties for electronic transmission of ownership 
        records.  The charge must be separately stated and identified as 
        "optional electronic transfer fee" on the sales agreement 
        maintained under Minnesota Rules, part 7400.5200.  At least half 
        of the fee must be paid to an electronic transmission service 
        provider. 
           Presented to the governor May 6, 2005 
           Signed by the governor May 9, 2005, 11:05 p.m.