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

CHAPTER 99--S.F.No. 1333

An act

relating to commerce; enacting a car buyers' bill of rights; requiring disclosures; regulating the sale of "certified" used motor vehicles;

amending Minnesota Statutes 2006, sections 53C.01, by adding subdivisions; 53C.08, by adding a subdivision; 325F.662, subdivision 10, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 53C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 53C.01, is amended by adding a subdivision to read:

new text begin Subd. 12a. new text end

new text begin Service contract. new text end

new text begin "Service contract" means a motor vehicle service contract as defined in section 65B.29. new text end

Sec. 2.

Minnesota Statutes 2006, section 53C.01, is amended by adding a subdivision to read:

new text begin Subd. 12b. new text end

new text begin Surface protection product. new text end

new text begin "Surface protection product" means the following products: new text end

new text begin (1) undercoating; new text end

new text begin (2) rustproofing; new text end

new text begin (3) chemical or film paint sealant or protectant; or new text end

new text begin (4) chemical sealant or stain inhibitor for carpet and fabric. new text end

Sec. 3.

Minnesota Statutes 2006, section 53C.01, is amended by adding a subdivision to read:

new text begin Subd. 12c. new text end

new text begin Theft deterrent device. new text end

new text begin "Theft deterrent device" means the following devices: new text end

new text begin (1) a vehicle alarm system; new text end

new text begin (2) a window etch product; new text end

new text begin (3) a body part marking product; new text end

new text begin (4) a steering lock; new text end

new text begin (5) a pedal or ignition lock; or new text end

new text begin (6) a fuel or ignition kill switch. new text end

Sec. 4.

Minnesota Statutes 2006, section 53C.08, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Disclosures required. new text end

new text begin Prior to the execution of a retail installment contract, the seller shall provide to a buyer, and obtain the buyer's signature on, a written disclosure that sets forth the following information: new text end

new text begin (1) a description and the total price of all items sold in the following categories if the contract includes a charge for the item: new text end

new text begin (i) a service contract; new text end

new text begin (ii) an insurance product; new text end

new text begin (iii) a debt cancellation agreement; new text end

new text begin (iv) a theft deterrent device; or new text end

new text begin (v) a surface protection product; new text end

new text begin (2) the amount that would be calculated under the contract as the regular installment payment if charges for the items referenced under clause (1) are not included in the contract; new text end

new text begin (3) the amount that would be calculated under the contract as the regular installment payment if charges for the items referenced under clause (1) are included in the contract; and new text end

new text begin (4) the disclosures required under this subdivision must be in at least ten-point type and must be contained in a single document that is separate from the retail installment contract and any other vehicle purchase documents. new text end

Sec. 5.

new text begin [53C.083] CONSUMER REPORT DISCLOSURE. new text end

new text begin (a) When a consumer report from a consumer reporting agency has been obtained by a lender or retail seller for use in connection with an application for credit initiated by a buyer for the purchase or lease of a motor vehicle: new text end

new text begin (1) the lender shall provide to the retail seller, upon written request of the buyer, and unless required by federal law to provide the adverse action notice, prior to the sale or lease of the motor vehicle, the name of each credit reporting agency providing a consumer report that was obtained and used by the lender; new text end

new text begin (2) the retail seller shall provide, prior to the sale or lease of the motor vehicle the following notice in at least ten-point boldface type on a document separate from the sale or lease contract, which must also include the name, address, and telephone number of four principal consumer reporting agencies: new text end

new text begin "NOTICE TO MOTOR VEHICLE CREDIT APPLICANT new text end

new text begin A consumer report from a consumer reporting agency was used in connection with your application to finance the acquisition of a motor vehicle. Consumer reports include data about your credit history and payment patterns. Consumer reports are important because they are used in determining whether to extend credit and may be used to determine the annual percentage rate you may be offered. new text end

new text begin If you have questions about your consumer report, you are entitled to know the name, address, and telephone number of the consumer reporting agency that provided the consumer report used to evaluate your loan application. You may ask the dealer for this information. You may then contact the consumer reporting agency at the address and telephone number provided. You are entitled under federal law to a free copy annually of your consumer report by calling 1-877-322-8228 or visiting annualcreditreport.com"; and new text end

new text begin (3) upon written request of the buyer, the retail seller shall obtain from the lender the consumer reporting agency information specified in clause (1) and shall provide that information to the buyer. new text end

new text begin (b) This section does not require a dealer to provide more than one disclosure for each purchase or lease transaction. For purposes of this section, "consumer report" and "consumer reporting agency" have the meanings given in section 13C.001. new text end

Sec. 6.

Minnesota Statutes 2006, section 325F.662, is amended by adding a subdivision to read:

new text begin Subd. 8a. new text end

new text begin Certified motor vehicle. new text end

new text begin (a) It is unlawful for a dealer to advertise for sale or sell a used motor vehicle as "certified" or use any similar descriptive term in the advertisement or the sale of a used motor vehicle that implies the vehicle has been certified to meet the terms of a used motor vehicle certification program if any of the following apply: new text end

new text begin (1) the dealer knows or should know that the odometer on the vehicle does not indicate actual mileage, has been rolled back or otherwise altered to show fewer miles, or has been replaced with an odometer showing fewer miles than actually driven; new text end

new text begin (2) the dealer knows or should know that the vehicle was reacquired by the vehicle's manufacturer or a dealer pursuant to state or federal warranty laws; new text end

new text begin (3) the dealer knows or should know that the title to the vehicle has been inscribed with the notation "damaged," "flood," "junk," "lemon law buyback," "manufacturer repurchase," "nonrepairable," "rebuilt," "reconditioned," "salvage," or similar title designation required by this state or another state; new text end

new text begin (4) the dealer knows or should know that the vehicle has sustained damage in an impact, fire, or flood, that substantially impairs the use or safety of the vehicle; new text end

new text begin (5) the dealer knows or should know that the vehicle has sustained frame damage; new text end

new text begin (6) prior to sale, the dealer fails to provide the buyer with a completed inspection report indicating all the components inspected; new text end

new text begin (7) the dealer disclaims any warranties of merchantability on the vehicle; or new text end

new text begin (8) the vehicle is sold "AS IS". new text end

new text begin (b) This section does not abrogate or limit any disclosure obligation imposed by any other law. new text end

Sec. 7.

Minnesota Statutes 2006, section 325F.662, subdivision 10, is amended to read:

Subd. 10.

Limitation on actions.

A private civil action brought by a consumer under this section new text begin with respect to a warranty claim new text end must be commenced within one year of the expiration of the express warranty.

Sec. 8.

new text begin EFFECTIVE DATE. new text end

new text begin This act is effective January 1, 2008. new text end

Presented to the governor May 18, 2007

Signed by the governor May 21, 2007, 2:27 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes