SF 934

as introduced - 88th Legislature (2013 - 2014) Posted on 04/02/2013 12:44pm

A bill for an act
relating to commerce; regulating motor vehicles; amending regulation of scrap
metal processing; requiring proof of ownership or hold period for vehicles
purchased for scrap; creating the automated property system; creating criminal
penalties; amending Minnesota Statutes 2012, sections 168.27, subdivisions 1a,
19a, 23, 24; 168A.153, subdivisions 1, 3; 325E.21, subdivisions 1, 1a, 3, 6, 8, 9,
by adding subdivisions; repealing Minnesota Statutes 2012, section 168A.153,
subdivision 2.

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

Section 1.

Minnesota Statutes 2012, section 168.27, subdivision 1a, is amended to read:

Subd. 1a.

Dealer license categories.

(a) No person shall engage in the business of
selling new motor vehicles or shall offer to sell, solicit, deliver, or advertise the sale of
new motor vehicles without first acquiring a new motor vehicle dealer license.

(b) No person shall engage in the business of selling used motor vehicles or shall
offer to sell, solicit, deliver, or advertise the sale of used motor vehicles without first
acquiring a used motor vehicle dealer license.

(c) No person shall engage in the business of buying or otherwise acquiring vehicles
deleted text begin other than hulks deleted text end ; or offering to buy or otherwise acquire, or soliciting or advertising the
buying or acquiring of, vehicles deleted text begin other than hulks deleted text end for processing and selling the metal for
remelting without first acquiring a scrap metal processor license.

deleted text begin For purposes of this paragraph, a "hulk" is a motor vehicle that is incapable, under
its own power, of moving and is incapable of transporting persons or property and has had
valuable used parts removed. Its sole value is its metallic content.
deleted text end

(d) No person shall be primarily engaged in the business of buying or otherwise
acquiring vehicles for the purpose of dismantling the vehicles and selling used parts and
the remaining scrap metals without first acquiring a used vehicle parts dealer license.

(e) No person shall engage in the business of storing and displaying, offering to store
or display, or soliciting or advertising the storing or displaying, for sale, of damaged
or junked vehicles as an agent or escrow agent of an insurance company without first
acquiring a vehicle salvage pool license.

(f) No person shall engage in the business of leasing motor vehicles or shall offer to
lease, solicit or advertise to lease motor vehicles without first acquiring a motor vehicle
lessor license.

(g) No person shall engage in the business of wholesaling motor vehicles to dealers
for resale or shall offer to sell, solicit or advertise the sale of motor vehicles to dealers for
resale without first acquiring a motor vehicle wholesaler license.

(h) No person shall engage in the business of auctioning motor vehicles for more
than one owner at an auction or shall offer to sell, solicit or advertise the sale of motor
vehicles at auction without first acquiring a motor vehicle auctioneer license.

(i) No person shall engage in the business of brokering motor vehicles without first
acquiring a motor vehicle broker's license.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 2.

Minnesota Statutes 2012, section 168.27, subdivision 19a, is amended to read:

Subd. 19a.

Injunction.

The commissioner or a county attorney may institute a civil
action in the name of the state in district court for an injunction prohibiting a violation of
this section and for civil penalties not to exceed $1,000 for each violation of subdivision
2, 3, new text begin 3a, new text end 4, 5a, 6, 7, or 7a new text begin , or section 325E.21 new text end . The court, upon proper proof that the
defendant has engaged in a practice prohibited by this section, may enjoin the future
commission of that practice and award civil penalties for violations of subdivision 2, 3, new text begin 3a,
new text end 4, 5a, 6, 7, or 7a new text begin , or section 325E.21 new text end . It is not a defense to an action that the state may have
adequate remedies at law. Service of process must be as in any other civil suit, except that
where a defendant in the action is a natural person or firm residing outside the state, or is a
foreign corporation, service of process may also be made by personal service outside the
state; in the manner provided by section 5.25; or as the court may direct. Process is valid
if it satisfies the requirements of due process of law, whether or not the defendant is doing
business in Minnesota regularly or habitually. Nothing in this subdivision limits the rights
or remedies otherwise available to persons under common law or other statutes of this state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 3.

Minnesota Statutes 2012, section 168.27, subdivision 23, is amended to read:

Subd. 23.

deleted text begin Registrar may file charges deleted text end new text begin County or city attorney to prosecute new text end .

The
deleted text begin registrar or the registrar's appointed inspectors may file charges with the deleted text end county attorney
new text begin may file charges new text end against any licensee who violates any of the provisions of this section new text begin or
section 325E.21 new text end , including but not limited to, the grounds for suspension or revocation
set out in subdivision 12.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 4.

Minnesota Statutes 2012, section 168.27, subdivision 24, is amended to read:

Subd. 24.

Bonds.

(a) Except as otherwise provided in this subdivision, all persons
licensed according to this section shall keep in full force and effect a bond with a corporate
surety to be approved by the registrar of motor vehicles in the following amounts; in the
case of boat trailer, snowmobile trailer, horse trailer or motorized bicycle dealers, or
dealers in trailers with a manufacturer's rated carrying capacity under 15,000 pounds
designed to transport small construction or farm equipment, in the amount of $5,000; and
as to all other persons in the amount of $50,000. The bond must be conditioned on the
faithful performance by the licensee of the obligations imposed on persons engaged in
motor vehicle transactions by the laws of this state, including the conduct required of a
licensee by this section new text begin , section 325E.21, new text end and other sections governing the sale or transfer
of motor vehicles, and the payment of all taxes, license fees, and penalties. The bond must
be for the benefit of the state of Minnesota and any transferor, seller, deleted text begin or deleted text end purchaser new text begin , or
owner new text end of a motor vehicle for any monetary loss caused by failure of the licensee to meet
the obligations enumerated above. Proceedings on the forfeiture of the bonds must be
commenced in the district court of the county wherein the business of the licensed person
was carried on, or if in more than one county, the county in which the offense occurred. This
subdivision does deleted text begin not deleted text end apply to a used vehicle parts dealer deleted text begin or deleted text end new text begin and new text end a scrap metal processor.

(b) This subdivision does not apply to:

(1) a dealer in new trailers designed to transport small construction or farm
equipment in any year following a year in which the dealer had less than $500,000 in gross
receipts from the sale of such trailers; or

(2) a dealer in new trailers designed to transport small construction or farm
equipment who has been a dealer in such trailers for less than one year and who the
department reasonably determines will have gross receipts of less than $500,000 during
the first year of business.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 5.

Minnesota Statutes 2012, section 168A.153, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Older model vehicle deleted text end new text begin Report of vehicle purchased for scrap new text end .

new text begin (a) new text end A
dealer who deleted text begin buys an older model deleted text end new text begin purchases or accepts for purchase a motor new text end vehicle to be
dismantled or destroyed shall report to the department deleted text begin within 30 days including the vehicle's
license plate number and identification number, and the seller's name and driver's license
number. deleted text end new text begin , by the close of business the day after the transaction, the following information:
new text end

new text begin (1) the vehicle's license plate number and vehicle identification number (VIN);
new text end

new text begin (2) the make, model, and color of the motor vehicle;
new text end

new text begin (3) the seller's name and driver's license number or number on an identification card;
new text end

new text begin (4) the receipt and bill of sale;
new text end

new text begin (5) the title number or, if no title, the bill of sale; and
new text end

new text begin (6) any applicable hold period under section 325E.21 and the expiration date of
the hold.
new text end

new text begin (b) If a conditional sale under section 325E.21 is canceled, the dealer must
immediately report the cancellation to the department. The dealer shall notify any secured
party of the transaction within five business days after accepting the motor vehicle.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 6.

Minnesota Statutes 2012, section 168A.153, subdivision 3, is amended to read:

Subd. 3.

Notification on vehicle to be dismantled or destroyed; service fee.

deleted text begin Within the time frames prescribed in subdivisions 1 and 2 of acquiring a vehicle titled and
registered in Minnesota, a dealer shall notify the registrar that the dealership purchased the
vehicle to be dismantled or destroyed. deleted text end new text begin The dealer must maintain the certificate of title on
the vehicle for three years before destroying the title as prescribed by the commissioner.
new text end The notification new text begin under subdivision 1 new text end must be made electronically as prescribed by the
registrar. The dealer may contract this service to a deputy registrar and the registrar may
charge a fee not to exceed $7 per transaction to provide this service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 7.

Minnesota Statutes 2012, section 325E.21, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the terms defined in
this subdivision have the meanings given.

(b) "Law enforcement agency" or "agency" means a duly authorized municipal,
county, state, or federal law enforcement agency.

(c) "Person" means an individual, partnership, limited partnership, limited liability
company, corporation, or other entity.

(d) "Scrap metal" means:

(1) wire and cable commonly and customarily used by communication and electric
utilities; and

(2) copper, aluminum, or any other metal purchased primarily for its reuse or
recycling value as raw metal, including metal that is combined with other materials
at the time of purchase.

(e) "Scrap metal dealer" or "dealer" means new text begin :
new text end

new text begin (1) a scrap metal processor licensee or used vehicle parts dealer licensee under
section 168.27;
new text end

new text begin (2) a used motor vehicle dealer licensee who engages in the business of buying or
otherwise acquiring vehicles for dismantling and selling used parts and remaining scrap
materials; and
new text end

new text begin (3) new text end a person engaged in the business of buying or selling scrap metal, or both deleted text begin , but does deleted text end new text begin .
new text end

new text begin The terms do new text end not include a person engaged exclusively in the business of buying or selling
new deleted text begin or deleted text end new text begin motor vehicles, new text end used motor vehicles deleted text begin or motor vehicle parts deleted text end new text begin other than as specified
in clause (2) new text end , paper or wood products, rags or furniture, or secondhand machinery.

new text begin (f) "Interchange file specification format" means the current version of the
Minneapolis automated property system interchange file specification format.
new text end

new text begin (g) "Billable transaction fee" means the fee assessed by the automated property
system to the jurisdiction in which a dealer is located.
new text end

new text begin (h) "Hold period" means a period of consecutive business days, excluding Saturdays,
Sundays, and holidays, during which time a motor vehicle may not be scrapped, resold,
dismantled, or destroyed.
new text end

new text begin (i) "Motor vehicle" has the meaning given in section 169.011, subdivision 42.
new text end

new text begin (j) "Proof of identification" means a valid driver's license; valid Minnesota
identification card; or valid driver's license or identification card issued by another state
or province of Canada, if the document includes the person's photograph, full name,
birth date, and signature.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 8.

Minnesota Statutes 2012, section 325E.21, subdivision 1a, is amended to read:

Subd. 1a.

Purchase or acquisition record required.

(a) Every scrap metal
dealer, including an agent, employee, or representative of the dealer, shall deleted text begin keep deleted text end new text begin create new text end a
new text begin permanent record, new text end written new text begin in English, using ink or an electronic new text end record new text begin program, new text end at the
time of each purchase or acquisition of scrap metal. The record must include:

(1) deleted text begin an deleted text end new text begin a complete and new text end accurate account or description, including the weight if
customarily purchased by weight, of the scrap metal purchased or acquired;

new text begin (2) if the scrap metal purchased or acquired is a motor vehicle, the vehicle
identification number; license plate number, if any, including state of issue and month and
year of validation; and vehicle make, model, and color;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end the date, time, and place of the receipt of the scrap metal purchased or
acquired new text begin and a unique transaction identifier new text end ;

deleted text begin (3) deleted text end new text begin (4) new text end the new text begin full new text end name deleted text begin and deleted text end new text begin , residence new text end address new text begin , primary telephone number, and an
accurate description new text end of the person selling or delivering the scrap metal new text begin , including sex,
height, weight, eye color, hair color, and if known, race new text end ;

deleted text begin (4) deleted text end new text begin (5) the amount paid, and new text end the number of the check deleted text begin or electronic transfer deleted text end used to
purchase the scrap metal;

new text begin (6) if the scrap metal purchased or acquired is a motor vehicle, whether it is a
conditional sale;
new text end

deleted text begin (5) deleted text end new text begin (7) new text end the new text begin identification new text end number new text begin and state of issue new text end of the seller's or deliverer's
deleted text begin driver's license, Minnesota identification card number, or other identification document
number of an identification document issued for identification purposes by any state,
federal, or foreign government if the document includes the person's photograph, full
name, birth date, and signature deleted text end new text begin proof of identification new text end ; deleted text begin and
deleted text end

deleted text begin (6) deleted text end new text begin (8) new text end the license plate number and description of the vehicle used by the person
when delivering the scrap metal, new text begin including the vehicle make and model, new text end and any identifying
marks on the vehicle, such as a business name, decals, or markings, if applicable deleted text begin . deleted text end new text begin ;
new text end

new text begin (9) a digital color photograph or single frame color image from a digital video
recording that clearly and accurately depicts the scrap metal offered for sale, including
the license plate if affixed and the scrap metal is a motor vehicle, and a front facial view
of the person selling or delivering the scrap metal. Photographs must be clearly and
accurately associated with their respective record;
new text end

new text begin (10) a statement signed by the seller, under penalty of perjury, attesting that the
scrap metal is not stolen and is free of any liens or encumbrances and the seller has the
right to sell it;
new text end

new text begin (11) a duplicate copy of the title, if any, provided by the seller of a motor vehicle; and
new text end

new text begin (12) a duplicate copy of the receipt, which must include at least the following
information: the name and address of the dealer, the date and time the scrap metal was
received by the dealer, an accurate description of the scrap metal, the signature of the
seller, and the amount paid for the scrap metal.
new text end

(b) The record, as well as the scrap metal purchased or received, shall at all
reasonable times be open to the inspection of any law enforcement agency.

(c) No record is required for property purchased from merchants, manufacturers or
wholesale dealers, having an established place of business, or of any goods purchased
at open sale from any bankrupt stock, but a bill of sale or other evidence of open or
legitimate purchase of the property shall be obtained and kept by the person, which must
be shown upon demand to any law enforcement agency.

new text begin (d) The dealer must provide a copy of the receipt required under paragraph (a),
clause (12), to the seller in every transaction.
new text end

new text begin (e) Law enforcement agencies in the jurisdiction where a dealer is located may
conduct regular and routine inspections to ensure compliance, refer violations to county
attorney offices for criminal prosecution, and notify the registrar of motor vehicles. The
registrar shall inspect a dealer who holds a license under section 168.27 every 18 months
to ensure compliance.
new text end

new text begin (f) Local jurisdictions in which dealers are located are authorized to recover costs
associated with compliance activities under paragraph (e) from the dealer, including
automated property system billable transaction fees.
new text end

deleted text begin (d) deleted text end new text begin (g) new text end Except as otherwise provided in this section, a scrap metal dealer or the
dealer's agent, employee, or representative may not disclose personal information
concerning a customer without the customer's consent unless the disclosure is made
in response to a request from a law enforcement agency. A scrap metal dealer must
implement reasonable safeguards to protect the security of the personal information and
prevent unauthorized access to or disclosure of the information. For purposes of this
paragraph, "personal information" is any individually identifiable information gathered in
connection with a record under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 9.

Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Automated property system. new text end

new text begin (a) Dealers must completely and
accurately provide all the record information required in subdivision 1a by transferring it
from their computer to the automated property system via their Internet service provider,
by the close of business each day, using the interchange file specification format.
new text end

new text begin (b) A dealer who does not have an electronic point-of-sale program may request to
be provided software by the automated property system to record the required information.
If the dealer uses a commercially available electronic point-of-sale program to record the
information required in this section, it must submit the information using the interchange
file specification format. Any record submitted by a dealer that does not conform to
the interchange file specification format must be corrected and resubmitted the next
business day.
new text end

new text begin (c) A dealer must display a sign of sufficient size, in a conspicuous place in the
premises, which informs all patrons that all transactions are reported to law enforcement
daily.
new text end

Sec. 10.

Minnesota Statutes 2012, section 325E.21, subdivision 3, is amended to read:

Subd. 3.

Payment by check or electronic transfer required.

new text begin (a) new text end A scrap metal
dealer or the dealer's agent, employee, or representative shall pay for all scrap metal
purchases new text begin over $100 and for all motor vehicles new text end only by check deleted text begin or electronic transfer deleted text end new text begin as
provided in paragraph (c) new text end .

new text begin (b) For purchases not identified in paragraph (a), payment may be made by check as
provided in paragraph (c), or by electronic transfer.
new text end

new text begin (c) For payment by check, the scrap metal dealer or the dealer's agent, employee,
or representative must send the check by certified mail, return receipt requested, to the
seller's home or business address on the first business day following the completion
of the transaction. Checks shall be payable only to the individual providing proof of
identification at the time of purchase.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 11.

Minnesota Statutes 2012, section 325E.21, subdivision 6, is amended to read:

Subd. 6.

Criminal deleted text begin penalty deleted text end new text begin penalties new text end .

new text begin (a) Except as provided in paragraphs (b) and
(c), new text end a scrap metal dealer, or the agent, employee, or representative of the dealer, who
intentionally violates a provision of this section, is guilty of a misdemeanor.

new text begin (b) A scrap metal processor, or an agent, employee, or representative of a scrap
metal processor who is convicted of violating this section a second time within a period of
five years, is guilty of a gross misdemeanor.
new text end

new text begin (c) A scrap metal processor, or an agent, employee, or representative of a scrap metal
processor, who is convicted of violating this section a third or subsequent time within a
period of five years is guilty of a felony and may be sentenced to imprisonment for not
more than three years or to payment of a fine of not more than $5,000, or both.
new text end

new text begin (d) Criminal penalties under this section are in addition to other remedies provided
by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to crimes
committed on or after that date.
new text end

Sec. 12.

Minnesota Statutes 2012, section 325E.21, subdivision 8, is amended to read:

Subd. 8.

deleted text begin Property held by law enforcement deleted text end new text begin Investigative holds; confiscation of
vehicles new text end .

(a) Whenever a law enforcement official from any agency deleted text begin has probable cause
to believe that property in the possession of deleted text end new text begin notifies new text end a scrap metal dealer deleted text begin is stolen or is
evidence of a crime and notifies the dealer deleted text end not to sell deleted text begin the deleted text end new text begin an new text end item, deleted text begin the item may not be sold
or removed deleted text end new text begin the scrap metal dealer shall not (1) process or sell the item, or (2) remove or
allow its removal new text end from the premises. This investigative hold deleted text begin remains deleted text end new text begin must be confirmed in
writing by the originating agency within 72 hours and will remain new text end in effect for deleted text begin 90 deleted text end new text begin 30 new text end days
from the date of initial notification, or until deleted text begin it deleted text end new text begin the investigative hold new text end is canceled or deleted text begin a seizure
order is issued deleted text end new text begin renewed, or until an order to confiscate is issued new text end , whichever comes first.

(b) If an item is identified as stolen or evidence in a criminal case, deleted text begin the deleted text end new text begin a new text end law
enforcement official new text begin or designee new text end may:

(1) physically deleted text begin seize deleted text end new text begin confiscate new text end and remove it from the new text begin scrap metal new text end dealer, pursuant to
a written order deleted text begin from the law enforcement official deleted text end ; or

(2) place the item on hold or extend the hold deleted text begin as provided in this section and leave it
in the shop deleted text end new text begin under paragraph (a) and leave it in the licensed premise new text end .

deleted text begin (c) deleted text end When an item is deleted text begin seized deleted text end new text begin confiscated new text end , the person doing so shall provide
identification upon request of the new text begin scrap metal new text end dealer, and shall provide deleted text begin the dealer deleted text end the name
and telephone number of the deleted text begin seizing deleted text end new text begin confiscating new text end agency and investigator, and the case
number related to the deleted text begin seizure deleted text end new text begin confiscation new text end .

deleted text begin (d) A dealer may request seized property be returned in accordance with section
626.04.
deleted text end

deleted text begin (e) deleted text end new text begin (c) new text end When an new text begin investigative hold or new text end order to deleted text begin hold or seize deleted text end new text begin confiscate new text end is no longer
necessary, the law enforcement official new text begin or designee new text end shall so notify the deleted text begin dealer deleted text end new text begin licensee new text end .

new text begin (d) If an order to confiscate is not issued during the investigative hold, or a law
enforcement official does not physically remove the motor vehicle from the premises
within 15 calendar days from issuance of the order, a scrap metal dealer may process
or otherwise dispose of the motor vehicle.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 13.

Minnesota Statutes 2012, section 325E.21, subdivision 9, is amended to read:

Subd. 9.

Video security cameras required.

(a) Each scrap metal dealer shall install
and maintain at each location new text begin digital color new text end video surveillance cameras, new text begin or digital color
new text end still deleted text begin digital deleted text end cameras deleted text begin , or similar devices deleted text end positioned to record or photograph a frontal view
showing new text begin a readily identifiable image of new text end the face of each seller or prospective seller of scrap
metal who enters the location. The scrap metal dealer shall also photograph the seller's or
prospective seller's vehicle, including license plate, either by new text begin digital color new text end video camera or
new text begin digital color new text end still deleted text begin digital deleted text end camera, so that an accurate and complete description of it may
be obtained from the recordings made by the cameras. The new text begin digital color new text end video camera
or still deleted text begin digital deleted text end camera must be kept in operating condition new text begin and must be shown to a law
enforcement officer for inspection upon request new text end . The camera must record and display the
accurate date and time. The video camera must be turned on at all times when the location
is open for business and at any other time when scrap metal is purchased.

(b) If the scrap metal dealer does not purchase some or any scrap metal at a specific
business location, the dealer need not comply with this subdivision with respect to those
purchases.

new text begin (c) Recordings and images required by paragraph (a) shall be retained by the scrap
metal dealer for a minimum period of 90 days and shall at all reasonable times be open to
the inspection of any law enforcement agency.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 14.

Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Vehicles with proof of ownership; five-day hold period. new text end

new text begin Except as
provided in subdivision 11, no dealer shall purchase a motor vehicle unless the seller:
new text end

new text begin (1) provides the vehicle title and lien releases, if the vehicle is subject to any liens, or
an official bill of sale issued by a public impound lot, each listing the vehicle identification
number;
new text end

new text begin (2) provides proof of identification matching the name listed on the vehicle title or
bill of sale issued by a public impound lot; and
new text end

new text begin (3) signs a statement, under penalty of perjury, attesting that the motor vehicle is
not stolen and is free of any liens or encumbrances and that the seller has the right to sell
the motor vehicle.
new text end

new text begin (b) The dealer shall:
new text end

new text begin (1) hold the vehicle during the five-day hold period;
new text end

new text begin (2) not scrap, resell, dismantle, or in any way destroy the vehicle; and
new text end

new text begin (3) not complete vehicle purchase transaction and disburse payment until after
the five-day hold period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 15.

Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Vehicle without proof of ownership; 15-day hold period. new text end

new text begin (a) If the
seller does not provide the information required in subdivision 10, no dealer shall purchase
a motor vehicle unless the seller:
new text end

new text begin (1) agrees in writing to a conditional sale with a 15-day hold period prior to
completion of the transaction and disbursement of payment;
new text end

new text begin (2) provides proof of identification; and
new text end

new text begin (3) signs a statement, under penalty of perjury, attesting that the motor vehicle is
not stolen and is free of any liens or encumbrances and that the seller has the right to sell
the motor vehicle.
new text end

new text begin (b) The dealer shall:
new text end

new text begin (1) hold the vehicle during the 15-day hold period;
new text end

new text begin (2) comply with reporting requirements under subdivision 1a by the end of the
first day of the hold period;
new text end

new text begin (3) not scrap, resell, dismantle, or in any way destroy the vehicle during the 15-day
hold period;
new text end

new text begin (4) check the vehicle identification number with the registrar and local law
enforcement on the last day of the 15-day hold period to confirm that the vehicle has
not been reported as stolen; and
new text end

new text begin (5) not complete the vehicle purchase transaction and disburse payment until after
the 15-day hold period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 168A.153, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end