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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 94-S.F.No. 1379 
                  An act relating to motor vehicles; excluding cost of 
                  air bag repair or replacement and related repair costs 
                  from motor vehicle damage calculations for salvage 
                  title and consumer disclosure purposes; amending 
                  Minnesota Statutes 2004, sections 168A.04, subdivision 
                  4; 168A.151, subdivision 1; 325F.6641, subdivisions 1, 
                  2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2004, section 168A.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [VEHICLE LAST REGISTERED OUT OF STATE.] If the 
        application refers to a vehicle last previously registered in 
        another state or country, the application shall contain or be 
        accompanied by: 
           (1) any certificate of title issued by the other state or 
        country; 
           (2) any other information and documents the department 
        reasonably requires to establish the ownership of the vehicle 
        and the existence or nonexistence and priority of any security 
        interest in it; 
           (3) the certificate of a person authorized by the 
        department that the identifying number of the vehicle has been 
        inspected and found to conform to the description given in the 
        application, or any other proof of the identity of the vehicle 
        the department reasonably requires; and 
           (4) with respect to vehicles subject to section 325F.6641, 
        whether the vehicle sustained damage by collision or other 
        occurrence which exceeded 70 percent of actual cash 
        value.  Damage, for the purpose of this calculation, does not 
        include the actual cost incurred to repair, replace, or 
        reinstall inflatable safety restraints and other vehicle 
        components that must be replaced due to the deployment of the 
        inflatable safety restraints. 
           Sec. 2.  Minnesota Statutes 2004, section 168A.151, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SALVAGE TITLES.] (a) When an insurer, 
        licensed to conduct business in Minnesota, acquires ownership of 
        a late-model or high-value vehicle through payment of damages, 
        the insurer shall immediately apply for a salvage certificate of 
        title or shall stamp the existing certificate of title with the 
        legend "SALVAGE CERTIFICATE OF TITLE" in a manner prescribed by 
        the department.  Within 48 hours of taking possession of a 
        vehicle through payment of damages, an insurer must notify the 
        department in a manner prescribed by the department. 
           (b) Any person who acquires a damaged motor vehicle with an 
        out-of-state title and the cost of repairs exceeds the value of 
        the damaged vehicle or a motor vehicle with an out-of-state 
        salvage title or certificate, as proof of ownership, shall 
        immediately apply for a salvage certificate of title.  A 
        self-insured owner of a late-model or high-value vehicle who 
        sustains damage by collision or other occurrence which exceeds 
        70 percent of its actual cash value shall immediately apply for 
        a salvage certificate of title.  Damage, for the purpose of this 
        calculation, does not include the actual cost incurred to 
        repair, replace, or reinstall inflatable safety restraints and 
        other vehicle components that must be replaced due to the 
        deployment of the inflatable safety restraints. 
           Sec. 3.  Minnesota Statutes 2004, section 325F.6641, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DAMAGE.] (a) If a motor vehicle has 
        sustained damage by collision or other occurrence which exceeds 
        70 percent of its actual cash value immediately prior to 
        sustaining damage, the seller must disclose that fact to the 
        buyer, if the seller has actual knowledge of the damage.  The 
        amount of damage is determined by the retail cost of repairing 
        the vehicle based on a complete written retail repair estimate 
        or invoice, exclusive of the actual cost incurred to repair, 
        replace, or reinstall inflatable safety restraints and other 
        vehicle components that must be replaced due to the deployment 
        of the inflatable safety restraints. 
           (b) The disclosure required under this subdivision must be 
        made in writing on the application for title and registration or 
        other transfer document, in a manner prescribed by the registrar 
        of motor vehicles.  The registrar shall revise the certificate 
        of title form, including the assignment by seller (transferor) 
        and reassignment by licensed dealer sections of the form, the 
        separate application for title forms, and other transfer 
        documents to accommodate this disclosure.  If the seller is a 
        motor vehicle dealer licensed pursuant to section 168.27, the 
        disclosure required by this section must be made orally by the 
        dealer to the prospective buyer in the course of the sales 
        presentation.  
           (c) Upon transfer and application for title to a vehicle 
        covered by this subdivision, the registrar shall record the term 
        "rebuilt" on the first Minnesota certificate of title and all 
        subsequent Minnesota certificates of title used for that vehicle.
           Sec. 4.  Minnesota Statutes 2004, section 325F.6641, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FORM OF DISCLOSURE.] The disclosure required in 
        this section must be made in substantially the following form: 
        "To the best of my knowledge, this vehicle has ..... has not 
        ..... sustained damage, exclusive of any costs to repair, 
        replace, or reinstall air bags and other components that were 
        replaced due to deployment of air bags, in excess of 70 percent 
        actual cash value." 
           Presented to the governor May 21, 2005 
           Signed by the governor May 25, 2005, 12:25 p.m.