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

                            CHAPTER 135-S.F.No. 1404 
                  An act relating to motor vehicles; requiring vehicle 
                  buyer to notify registrar of motor vehicles of vehicle 
                  transfer within ten days; imposing fees and penalties; 
                  amending Minnesota Statutes 1996, sections 168.101, 
                  subdivision 2; and 168.15, subdivision 1; proposing 
                  coding for new law in Minnesota Statutes, chapter 168; 
                  repealing Minnesota Statutes 1996, section 168A.10, 
                  subdivision 6. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 168.101, 
        subdivision 2, is amended to read: 
           Subd. 2.  [UNLAWFUL TRANSFER TO MINOR.] Any person who 
        knowingly sells or in any manner knowingly transfers title of a 
        passenger automobile or truck to a person who is prohibited from 
        owning a passenger automobile or truck under the provisions of 
        subdivision 1 shall be guilty of a misdemeanor. 
           Subd. 2a.  [FAILURE TO SEND TO REGISTRAR WITHIN TEN DAYS.] 
        Any person who knowingly fails to mail in the application for 
        registration or transfer with appropriate taxes and fees to the 
        registrar of motor vehicles or otherwise fails to submit said 
        forms and remittance to the registrar within 14 ten days 
        following date of sale shall be guilty of a misdemeanor.  
           Sec. 2.  Minnesota Statutes 1996, section 168.15, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TRANSFER OF OWNERSHIP.] Except as provided 
        in subdivision 3, upon the transfer of ownership, destruction, 
        theft, dismantling as such, or the permanent removal by the 
        owner thereof from this state of any motor vehicle registered in 
        accordance with the provisions of this chapter, the right of the 
        owner of such vehicle to use the registration certificate and 
        number plates assigned such vehicle shall expire, and such 
        certificate and any existing plates shall be, by such owner, 
        forthwith returned, with transportation prepaid, to the 
        registrar with a signed notice of the date and manner of 
        termination of ownership, giving the name and post office 
        address, with street and number, if in a city, of the person to 
        whom transferred.  No fee may be charged for a return of plates 
        under this section.  When the ownership of a motor vehicle shall 
        be transferred to another who shall forthwith register the same 
        in the other's name, the registrar may permit the manual 
        delivery of such plates to the new owner of such vehicle.  When 
        seeking to become the owner by gift, trade, or purchase of any 
        vehicle for which a registration certificate has been 
        theretofore issued under the provisions of this chapter, a 
        person shall join with the registered owner in transmitting with 
        the application the registration certificate, with the 
        assignment and notice of sale duly executed upon the reverse 
        side thereof, or, in case of loss of such certificate, with such 
        proof of loss by sworn statement, in writing, as shall be 
        satisfactory to the registrar.  Upon the transfer of any motor 
        vehicle by a manufacturer or dealer, for use within the state, 
        whether by sale, lease, or otherwise, such manufacturer or 
        dealer shall, within seven ten days after such transfer, file 
        with the registrar a notice or report containing the date of 
        such transfer, a description of such motor vehicles, and the 
        name, street and number of residence, if in a city, and the post 
        office address of the transferee, and shall transmit therewith 
        the transferee's application for registration thereof. 
           Sec. 3.  [168.301] [VEHICLE TRANSFER DEADLINES; FEES; 
        SANCTIONS.] 
           Subdivision 1.  [SURRENDER PLATES AND ASSIGN TAX PAID.] On 
        transferring a motor vehicle, the transferor shall surrender the 
        registration plates and assign the registration tax paid to the 
        credit of the transferee. 
           Subd. 2.  [TEN DAYS TO FILE.] The transferee's rights to 
        the transferred vehicle's registration plates and credit for 
        taxes paid on the vehicle expire after ten days have elapsed 
        from the date of transfer unless:  (1) the transfer has been 
        filed as provided under section 168A.10; or (2) the transferee 
        is a dealer licensed under section 168.27, and is complying with 
        section 168A.11.  
           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 
        14 days. 
           Subd. 4.  [REINSTATEMENT FEE.] When the commissioner has 
        suspended license plates on a vehicle because the transferee has 
        failed to deliver the title certificate within ten days as 
        provided in subdivision 1, the transferee shall pay a $5 fee 
        before the registration is reinstated. 
           Subd. 5.  [VERIFICATION OF COMPLIANCE.] A person does not 
        violate this section or section 168.09, subdivision 1, by reason 
        of suspension, if the person provides verification from the 
        registrar that the title transfer with fees and taxes were filed 
        with the registrar prior to being cited for violating this 
        section or the vehicle was purchased from a licensed Minnesota 
        dealer.  The verification of compliance must be presented to the 
        appropriate law enforcement agency within seven days after being 
        charged or to the court on or before the date set for appearance.
           Subd. 6.  [REGISTRATION SUSPENSION.] The commissioner of 
        public safety may suspend the registration of any owner who 
        violates this section. 
           Sec. 4.  [REPEALER.] 
           Minnesota Statutes 1996, section 168A.10, subdivision 6, is 
        repealed. 
           Presented to the governor May 9, 1997 
           Signed by the governor May 12, 1997, 11:02 a.m.

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