1.1                          A bill for an act 
  1.2             relating to motor vehicles; new motor vehicle dealers; 
  1.3             requiring persons to obtain a license to engage in 
  1.4             certain business practices; amending Minnesota 
  1.5             Statutes 1996, section 168.27, subdivision 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 168.27, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [NEW MOTOR VEHICLE DEALER.] (a) No person shall 
  1.10  engage in the business of selling new motor vehicles or shall 
  1.11  offer to sell, solicit, deliver, or advertise the sale of new 
  1.12  motor vehicles without first acquiring a new motor vehicle 
  1.13  dealer license.  A new motor vehicle dealer licensee shall be 
  1.14  entitled thereunder to sell, broker, wholesale, or auction and 
  1.15  to solicit and advertise the sale, broker, wholesale, or auction 
  1.16  of new motor vehicles covered by the franchise and any used 
  1.17  motor vehicles or to lease and to solicit and advertise the 
  1.18  lease of new motor vehicles and any used motor vehicles and such 
  1.19  sales or leases may be either for consumer use at retail or for 
  1.20  resale to a dealer.  A new motor vehicle dealer may engage in 
  1.21  the business of buying or otherwise acquiring vehicles for 
  1.22  dismantling the vehicles and selling used parts and remaining 
  1.23  scrap materials under chapter 168A, except that a new motor 
  1.24  vehicle dealer may not purchase a junked vehicle from a salvage 
  1.25  pool, insurance company, or its agent unless the dealer is also 
  2.1   licensed as a used vehicle parts dealer.  Nothing herein shall 
  2.2   be construed to require an applicant for a dealer license who 
  2.3   proposes to deal in:  (1) new and unused motor vehicle bodies; 
  2.4   or (2) type A, B, or C motor homes as defined in section 
  2.5   168.011, subdivision 25, to have a bona fide contract or 
  2.6   franchise in effect with either the first-stage manufacturer of 
  2.7   the motor home or the manufacturer or distributor of any motor 
  2.8   vehicle chassis upon which the new and unused motor vehicle body 
  2.9   is mounted.  The modification or conversion of a new van-type 
  2.10  vehicle into a multipurpose passenger vehicle which is not a 
  2.11  motor home does not constitute dealing in new or unused motor 
  2.12  vehicle bodies, and a person engaged in the business of selling 
  2.13  these van-type vehicles must have a bona fide contract or 
  2.14  franchise with the appropriate manufacturer under subdivision 
  2.15  10.  A van converter or modifier who owns these modified or 
  2.16  converted van-type vehicles may sell them at wholesale to new 
  2.17  motor vehicle dealers having a bona fide contract or franchise 
  2.18  with the first-stage manufacturer of the vehicles. 
  2.19     (b) The requirements pertaining to franchises do not apply 
  2.20  to persons who remodel or convert motor vehicles for medical 
  2.21  purposes.  For purposes of this subdivision, "medical purpose" 
  2.22  means certification by a licensed physician that remodeling or 
  2.23  conversion of a motor vehicle is necessary to enable a disabled 
  2.24  person to use the vehicle. 
  2.25     (c) No person, other than a new motor vehicle dealer 
  2.26  licensed under this section, may in the course of business 
  2.27  accept payment in full or part for the purchase of a new motor 
  2.28  vehicle.  Nothing in this paragraph prohibits licensed financial 
  2.29  institutions from engaging in activities related to financing 
  2.30  new vehicle purchases. 
  2.31     (d) No person, other than a new motor vehicle dealer 
  2.32  licensed under this section, may in the course of business 
  2.33  deliver a new motor vehicle to a purchaser or describe a new 
  2.34  vehicle's warranties or safety features in conjunction with the 
  2.35  delivery of a purchased new motor vehicle. 
  2.36     (e) No person, other than a new motor vehicle dealer 
  3.1   licensed under this section, may engage in the business of 
  3.2   brokering new motor vehicles without disclosing to the vehicle 
  3.3   buyer the total amount of all consideration to be received by 
  3.4   the broker from all sources as a result of the vehicle sale.  
  3.5   This disclosure must be made in writing before the motor vehicle 
  3.6   sale is completed.