Bill Text: MN HF2736 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Junked motor vehicle buyer class eligibility expanded, and commissioner of public safety directed to make changes to Minnesota Rules.
Sponsorship: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2012-03-29 - HF indefinitely postponed [HF2736 Detail]
Download: Minnesota-2011-HF2736-Engrossed.html
1.2relating to public safety; motor vehicles; motor vehicle dealer regulations;
1.3expanding the class of eligible buyers for junked vehicles; directing the
1.4commissioner of public safety to make certain changes to Minnesota Rules;
1.5amending Minnesota Statutes 2010, sections 168.27, subdivisions 2, 3, 3c;
1.6168A.151, subdivision 6.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 168.27, subdivision 2, is amended to read:
1.9 Subd. 2. New motor vehicle dealer. (a) A new motor vehicle dealer licensee may
1.10sell, broker, wholesale, or auction and solicit and advertise the sale, brokerage, wholesale,
1.11or auction of new motor vehicles covered by the franchise and any used motor vehicles,
1.12and may lease and solicit and advertise the lease of new motor vehicles and any used
1.13motor vehicles. New motor vehicle dealer sales or leases may be either for consumer
1.14use at retail or for resale to a dealer. A new motor vehicle dealer may engage in the
1.15business of buying or otherwise acquiring vehicles for dismantling the vehicles and
1.16selling used parts and remaining scrap materials under chapter 168A, except that a new
1.17motor vehicle dealer may not purchase a junked vehicle from a salvage pool, insurance
1.18company, or its agent unless the dealer is also licensed as a used vehicle parts dealer or
1.19licensed as a scrap metal processor. Nothing in this subdivision requires an applicant for
1.20a dealer license who proposes to deal in: (1) new and unused motor vehicle bodies; or
1.21(2) type A, B, or C motor homes as defined in section168.002, subdivision 27 , to have
1.22a bona fide contract or franchise in effect with either the first-stage manufacturer of the
1.23motor home or the manufacturer or distributor of any motor vehicle chassis upon which
1.24the new and unused motor vehicle body is mounted. The modification or conversion
1.25of a new van-type vehicle into a multipurpose passenger vehicle which is not a motor
2.1home does not constitute dealing in new or unused motor vehicle bodies, and a person
2.2engaged in the business of selling these van-type vehicles must have a bona fide contract
2.3or franchise with the appropriate manufacturer under subdivision 10. A van converter
2.4or modifier who owns these modified or converted van-type vehicles may sell them at
2.5wholesale to new motor vehicle dealers having a bona fide contract or franchise with the
2.6first-stage manufacturer of the vehicles.
2.7(b) The requirements pertaining to franchises do not apply to persons who remodel
2.8or convert motor vehicles for medical purposes. For purposes of this subdivision, "medical
2.9purpose" means certification by a licensed physician that remodeling or conversion of a
2.10motor vehicle is necessary to enable a disabled person to use the vehicle.
2.11(c) A new motor vehicle dealer shall not deliver a manufacturer's or importer's
2.12certificate of origin for a passenger automobile, pickup truck, or van requiring a certificate
2.13of title according to chapter 168A to any person in conjunction with the sale of a vehicle
2.14except to the department, another new motor vehicle dealer licensed to sell the same
2.15line or make, or a person whose primary business is picking up and delivering motor
2.16vehicle title documents.
2.17(d) If a new motor vehicle dealer agrees to sell or lease a new motor vehicle using
2.18the services of a motor vehicle broker, the new motor vehicle dealer may not refuse to
2.19deliver possession of the vehicle to the buyer or lessee. This paragraph does not require
2.20delivery unless all arrangements have been properly completed for payment, insurance
2.21required by law, titling, transfer, and registration of the new vehicle and any trade-in
2.22vehicle. Delivery may take place at or away from the dealership.
2.23 Sec. 2. Minnesota Statutes 2010, section 168.27, subdivision 3, is amended to read:
2.24 Subd. 3. Used motor vehicle dealer. A used motor vehicle dealer licensee may sell,
2.25lease, broker, wholesale, or auction and solicit and advertise the sale, lease, brokerage,
2.26wholesale, or auction of any used motor vehicles for consumer use at retail or for resale to
2.27a dealer. A used motor vehicle dealer may engage in the business of buying or otherwise
2.28acquiring vehicles for dismantling the vehicles and selling used parts and remaining scrap
2.29materials under chapter 168A, except that a used motor vehicle dealer may not acquire a
2.30junked vehicle from a salvage pool, insurance company, or its agent, unless the dealer is
2.31also licensed as a used vehicle parts dealer or licensed as a scrap metal processor.
2.32 Sec. 3. Minnesota Statutes 2010, section 168.27, subdivision 3c, is amended to read:
2.33 Subd. 3c. Vehicle salvage pool. A vehicle salvage pool licensee may store and
2.34display and may solicit and advertise the storing and displaying, for sale, of damaged or
3.1junked vehicles as an agent or escrow agent of an insurance company. A vehicle salvage
3.2pool licensee shall not sell junked vehicles to any party other than a licensed used parts
3.3dealer or a licensed scrap metal processor.
3.4 Sec. 4. Minnesota Statutes 2010, section 168A.151, subdivision 6, is amended to read:
3.5 Subd. 6. Authority under junking certificate. A junking certificate authorizes the
3.6holder only to possess and transport the vehicle, except that a salvage pool or insurance
3.7company, or its agent, may sell an unrepairable total loss vehicle with a junking certificate
3.8to a licensed used parts dealer or a licensed scrap metal processor.
3.9 Sec. 5. RULE CHANGE.
3.10The commissioner shall amend Minnesota Rules, part 7400.5300, subpart 3, to
3.11remove the words "from Minnesota" and to allow a dealer to sell a junked vehicle as
3.12described in Minnesota Rules, part 7400.5300, subpart 3, to a purchaser whom the
3.13dealer verifies is a licensed scrap metal processor. The commissioner must comply with
3.14Minnesota Statutes, section 14.389, subdivision 5, in adopting the amendment.
1.3expanding the class of eligible buyers for junked vehicles; directing the
1.4commissioner of public safety to make certain changes to Minnesota Rules;
1.5amending Minnesota Statutes 2010, sections 168.27, subdivisions 2, 3, 3c;
1.6168A.151, subdivision 6.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2010, section 168.27, subdivision 2, is amended to read:
1.9 Subd. 2. New motor vehicle dealer. (a) A new motor vehicle dealer licensee may
1.10sell, broker, wholesale, or auction and solicit and advertise the sale, brokerage, wholesale,
1.11or auction of new motor vehicles covered by the franchise and any used motor vehicles,
1.12and may lease and solicit and advertise the lease of new motor vehicles and any used
1.13motor vehicles. New motor vehicle dealer sales or leases may be either for consumer
1.14use at retail or for resale to a dealer. A new motor vehicle dealer may engage in the
1.15business of buying or otherwise acquiring vehicles for dismantling the vehicles and
1.16selling used parts and remaining scrap materials under chapter 168A, except that a new
1.17motor vehicle dealer may not purchase a junked vehicle from a salvage pool, insurance
1.18company, or its agent unless the dealer is also licensed as a used vehicle parts dealer or
1.19licensed as a scrap metal processor. Nothing in this subdivision requires an applicant for
1.20a dealer license who proposes to deal in: (1) new and unused motor vehicle bodies; or
1.21(2) type A, B, or C motor homes as defined in section
1.22a bona fide contract or franchise in effect with either the first-stage manufacturer of the
1.23motor home or the manufacturer or distributor of any motor vehicle chassis upon which
1.24the new and unused motor vehicle body is mounted. The modification or conversion
1.25of a new van-type vehicle into a multipurpose passenger vehicle which is not a motor
2.1home does not constitute dealing in new or unused motor vehicle bodies, and a person
2.2engaged in the business of selling these van-type vehicles must have a bona fide contract
2.3or franchise with the appropriate manufacturer under subdivision 10. A van converter
2.4or modifier who owns these modified or converted van-type vehicles may sell them at
2.5wholesale to new motor vehicle dealers having a bona fide contract or franchise with the
2.6first-stage manufacturer of the vehicles.
2.7(b) The requirements pertaining to franchises do not apply to persons who remodel
2.8or convert motor vehicles for medical purposes. For purposes of this subdivision, "medical
2.9purpose" means certification by a licensed physician that remodeling or conversion of a
2.10motor vehicle is necessary to enable a disabled person to use the vehicle.
2.11(c) A new motor vehicle dealer shall not deliver a manufacturer's or importer's
2.12certificate of origin for a passenger automobile, pickup truck, or van requiring a certificate
2.13of title according to chapter 168A to any person in conjunction with the sale of a vehicle
2.14except to the department, another new motor vehicle dealer licensed to sell the same
2.15line or make, or a person whose primary business is picking up and delivering motor
2.16vehicle title documents.
2.17(d) If a new motor vehicle dealer agrees to sell or lease a new motor vehicle using
2.18the services of a motor vehicle broker, the new motor vehicle dealer may not refuse to
2.19deliver possession of the vehicle to the buyer or lessee. This paragraph does not require
2.20delivery unless all arrangements have been properly completed for payment, insurance
2.21required by law, titling, transfer, and registration of the new vehicle and any trade-in
2.22vehicle. Delivery may take place at or away from the dealership.
2.23 Sec. 2. Minnesota Statutes 2010, section 168.27, subdivision 3, is amended to read:
2.24 Subd. 3. Used motor vehicle dealer. A used motor vehicle dealer licensee may sell,
2.25lease, broker, wholesale, or auction and solicit and advertise the sale, lease, brokerage,
2.26wholesale, or auction of any used motor vehicles for consumer use at retail or for resale to
2.27a dealer. A used motor vehicle dealer may engage in the business of buying or otherwise
2.28acquiring vehicles for dismantling the vehicles and selling used parts and remaining scrap
2.29materials under chapter 168A, except that a used motor vehicle dealer may not acquire a
2.30junked vehicle from a salvage pool, insurance company, or its agent, unless the dealer is
2.31also licensed as a used vehicle parts dealer or licensed as a scrap metal processor.
2.32 Sec. 3. Minnesota Statutes 2010, section 168.27, subdivision 3c, is amended to read:
2.33 Subd. 3c. Vehicle salvage pool. A vehicle salvage pool licensee may store and
2.34display and may solicit and advertise the storing and displaying, for sale, of damaged or
3.1junked vehicles as an agent or escrow agent of an insurance company. A vehicle salvage
3.2pool licensee shall not sell junked vehicles to any party other than a licensed used parts
3.3dealer or a licensed scrap metal processor.
3.4 Sec. 4. Minnesota Statutes 2010, section 168A.151, subdivision 6, is amended to read:
3.5 Subd. 6. Authority under junking certificate. A junking certificate authorizes the
3.6holder only to possess and transport the vehicle, except that a salvage pool or insurance
3.7company, or its agent, may sell an unrepairable total loss vehicle with a junking certificate
3.8to a licensed used parts dealer or a licensed scrap metal processor.
3.9 Sec. 5. RULE CHANGE.
3.10The commissioner shall amend Minnesota Rules, part 7400.5300, subpart 3, to
3.11remove the words "from Minnesota" and to allow a dealer to sell a junked vehicle as
3.12described in Minnesota Rules, part 7400.5300, subpart 3, to a purchaser whom the
3.13dealer verifies is a licensed scrap metal processor. The commissioner must comply with
3.14Minnesota Statutes, section 14.389, subdivision 5, in adopting the amendment.
