Minnesota Legislature
SF 934
1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/21/2013 09:09am
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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, subdivision 23;
168A.01, by adding a subdivision; 168A.153; 168A.40, subdivision 4; 325E.21,
subdivisions 1, 1a, 4, 8, by adding a subdivision; proposing coding for new law
in Minnesota Statutes, chapter 168A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 168.27, subdivision 23, is amended to read:
Subd. 23.
deleted text begin Registrar may file chargesdeleted text end new text begin County or city attorney to prosecutenew text end .
The
deleted text begin registrar or the registrar's appointed inspectors may file charges with thedeleted text end county attorney
new text begin or city attorney may file charges new text end against any licensee who violates any of the provisions of
this sectionnew text begin or section 325E.21new 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. 2.
Minnesota Statutes 2012, section 168A.01, is amended by adding a subdivision
to read:
new text begin Subd. 8c. new text end
new text begin Aged vehicle. new text end
new text begin
"Aged vehicle" means a vehicle with a manufacturer's
designated model year equal to or greater than the seventeenth calendar year immediately
preceding the current calendar year, not including those vehicles registered as collector or
designated as a restored pioneer vehicle.
new text end
Sec. 3.
new text begin
[168A.1525] AFFIDAVIT OF SALABILITY.
new text end
new text begin
(a) Any person or unit of government upon whose property or in whose possession
is found any abandoned motor vehicle, or any owner of a motor vehicle whose title
certificate is faulty, lost, or destroyed and is thereby unable to transfer title to the motor
vehicle, may apply to a law enforcement agency in which the motor vehicle is located for
an affidavit of salability. The affidavit of salability gives authority for a vehicle to be sold
to or given to a dealer for recycling or dismantling in lieu of a certificate of title.
new text end
new text begin
(b) The application for an affidavit of salability shall set out the name and address of
the applicant, and the year, make, model, and vehicle identification number of the motor
vehicle, if ascertainable, together with any other identifying features, and shall contain a
concise statement of the facts surrounding the abandonment, or a statement that the title of
the motor vehicle is lost or destroyed, or the reasons for the defect of title in the owner.
The applicant shall execute an affidavit stating that the facts alleged are true and that no
material fact has been withheld. A law enforcement agency must execute any request for
an affidavit of salability at the time of request.
new text end
Sec. 4.
Minnesota Statutes 2012, section 168A.153, is amended to read:
168A.153 REPORT OF VEHICLE RECEIPT.
Subdivision 1.
Older model vehicle.
A dealer who buys an older model vehicle to
be dismantled or destroyed shall report to the department within deleted text begin 30deleted text end new text begin 15new text end days including the
vehicle's license plate number and identification number, and the seller's name and driver's
license numbernew text begin . A dealer who accepts an affidavit of salability in lieu of a certificate of
title as allowed by section 168A.1525 must report to the department the information
required by this subdivision by the close of business the day after the transactionnew text end .
Subd. 2.
Late-model or high-value vehicle.
A dealer who buys a late-model or
high-value vehicle to be dismantled or destroyed shall notify the secured party, if any, and
the commissioner new text begin within 15 days new text end in the manner prescribed in subdivision 3. deleted text begin The dealer
must then properly destroy the certificate of titledeleted text end new text begin A dealer who accepts an affidavit of
salability in lieu of a certificate of title as allowed by section 168A.1525 must report to
the department the information required by this subdivision by the close of business the
day after the transactionnew text end .
new text begin Subd. 2a. new text end
new text begin Aged vehicle. new text end
new text begin
(a) A dealer who buys an aged vehicle to be dismantled
or destroyed shall report to the department within 15 days including the vehicle's license
plate number and identification number and the seller's name.
new text end
new text begin
(b) No certificate of title or other documentation is required for purchase of an
aged vehicle.
new text end
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. The notificationdeleted text end new text begin A dealer must maintain the
certificate of title, if any, on a vehicle for three years before destroying the title as prescribed
by the commissioner. Notifications under this sectionnew 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.
Sec. 5.
Minnesota Statutes 2012, section 168A.40, subdivision 4, is amended to read:
Subd. 4.
Automobile theft prevention account.
new text begin (a) new text end A special revenue account is
created in the state treasury to be credited with the proceeds of the surcharge imposed
under subdivision 3. Of the revenue in the account, $1,300,000 each year must be
transferred to the general fund. Revenues in excess of $1,300,000 each year may be used
only for the automobile theft prevention program described in section 65B.84new text begin , and for
the purposes described in paragraph (b)new text end .
new text begin new text end
new text begin
(b) An auto theft victim whose vehicle was sold to a dealer may apply to the
commissioner for payment from the account an amount equal to fair market value of the
vehicle. Dealers who forfeit a stolen vehicle to a law enforcement agency may apply
to the commissioner for payment from the account an amount equal to the amount the
dealer paid for the vehicle.
new text end
Sec. 6.
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 a person engaged in the business of
buying or selling scrap metal, or both, new text begin and includes salvage pools, new text end but does not include
a person engaged exclusively in the business of buying or selling new or used motor
vehicles deleted text begin or motor vehicle partsdeleted text end new text begin for resalenew text end , paper or wood products, rags or furniture, or
secondhand machinery.
Sec. 7.
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 keepdeleted text end new text begin createnew 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) an accurate new text begin and complete new text end 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 and license plate number, if any;
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
acquirednew text begin and a unique transaction identifiernew text end ;
deleted text begin (3)deleted text end new text begin (4)new text end the name and address of the person selling or delivering the scrap metal;
deleted text begin (4)deleted text end new text begin (5)new text end the new text begin identification new text end number new text begin and state of issue new text end of the check or electronic transfer
used to purchase the scrap metal;
deleted text begin (5)deleted text end new text begin (6)new text end the new text begin identification new text end numbernew text begin and state of issuenew text end of the seller's or deliverer's
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 signaturenew text begin proof of identificationnew text end ; deleted text begin and
deleted text end
deleted text begin (6)deleted text end new text begin (7)new text end the license plate number and description of the vehicle used by the person
when delivering the scrap metal, and any identifying marks on the vehicle, such as a
business name, decals, or markings, if applicablenew text begin ; and
new text end
new text begin (8) a statement signed by the seller, under penalty of perjury, attesting that the scrap
metal or motor vehicle, to the best of the seller's knowledge, is not stolen and is free of any
liens or encumbrances and the seller has the right to sell it. This paragraph only applies if
the scrap metal or motor vehicle is acquired from an individualnew 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.
(d) 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
(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.
new text end
Sec. 8.
Minnesota Statutes 2012, section 325E.21, subdivision 4, is amended to read:
Subd. 4.
Registration required.
(a) Every scrap metal dealer shall register with
and participate in the criminal alert network described in section 299A.61. The dealer
shall ensure that the dealer's system for receiving incoming notices from the network is
in proper working order and ready to receive incoming notices. The dealer shall check
the system for incoming notices twice each day the business is open, once upon opening
and then again before closing. The dealer shall inform all employees involved in the
purchasing or receiving of scrap metal of alerts received relating to scrap metal of the type
that might be conceivably sold to the dealer. In addition, the dealer shall post copies of the
alerts in a conspicuous location.
(b) The scrap metal dealer shall pay to the commissioner of public safety a $50
annual fee to participate in the criminal alert network and for the educational materials
described in section 299C.25.
(c) The commissioner shall notify the scrap metal dealer if a message sent to the
dealer is returned as undeliverable or is otherwise not accepted for delivery by the dealer's
system. The dealer shall take action necessary to ensure that future messages are received.
new text begin
(d) Law enforcement agencies shall enter all appropriate information to the criminal
alert network described in section 299A.61, regarding any complaint they have received
pertaining to the theft of scrap metal or motor vehicles within 24 hours of receiving such
complaint.
new text end
Sec. 9.
Minnesota Statutes 2012, section 325E.21, subdivision 8, is amended to read:
Subd. 8.
deleted text begin Property held by law enforcementdeleted text end new text begin Investigative holds; confiscation of
vehiclesnew text end .
(a) Whenever a law enforcement official from any agency has probable cause to
believe that property in the possession of a scrap metal dealer is stolen or is evidence of a
crime and notifies the dealer not to sell the itemdeleted text begin , the item may not be sold or removeddeleted 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 remainsdeleted text end new text begin must be confirmed in writing by the
originating agency within 72 hours and will remainnew text end in effect for deleted text begin 90deleted text end new text begin 30new text end days from the date
of initial notification, or until deleted text begin itdeleted text end new text begin the investigative holdnew text end is canceled deleted text begin or a seizure order is
issueddeleted text end new text begin , renewed, or until an order to confiscate is issuednew text end , whichever comes first.
(b) If an item is identified as stolen or evidence in a criminal case, deleted text begin thedeleted text end new text begin anew text end law
enforcement official may:
(1) physically deleted text begin seizedeleted text end new text begin confiscatenew text end and remove it from thenew text begin scrap metalnew text end dealer, pursuant to
a written order deleted text begin from the law enforcement officialdeleted 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 shopdeleted text end new text begin under paragraph (a), and leave it on the license premisesnew text end .
(c) When an item is deleted text begin seizeddeleted text end new text begin confiscatednew 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 dealerdeleted text end the name
and telephone number of the deleted text begin seizingdeleted text end new text begin confiscatingnew text end agency and investigator, and the case
number related to the deleted text begin seizuredeleted text end new text begin confiscationnew text end .
(d) A dealer may request seized property be returned in accordance with section
626.04.
(e) When an order to hold or seize is no longer necessary, the law enforcement
official shall so notify the dealer.
Sec. 10.
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 Preemption of local ordinances. new text end
new text begin
This section preempts and supersedes
any local ordinance or rule concerning the same subject manner.
new text end
Sec. 11. new text begin SEARCHABLE ELECTRONIC DATABASE STEERING
COMMITTEE.
new text end
new text begin
Stakeholders shall form a steering committee to develop recommendations for
creation of a searchable electronic database for scrap metal and motor vehicle purchases
regulated by Minnesota Statutes, section 325E.31. The steering committee shall
include industry representatives, dealers, and law enforcement agencies, and shall make
recommendations related to:
new text end
new text begin
(1) the feasibility and potential effectiveness of the database;
new text end
new text begin
(2) elimination of multiple reporting for scrap metal dealers;
new text end
new text begin
(3) database rules and controls;
new text end
new text begin
(4) data privacy, security, confidentiality, and record retention guidelines;
new text end
new text begin
(5) costs and cost allocations;
new text end
new text begin
(6) critical data for uploading and storage;
new text end
new text begin
(7) investigative guidelines; and
new text end
new text begin
(8) compliance guidelines.
new text end
new text begin
The steering committee shall report their recommendations to the commissioner of public
safety no later than January 15, 2014.
new text end