Bill Text: MN SF738 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Motor vehicle dealer service contract sale from unregistered provider prohibition
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2011-03-10 - Referred to Commerce and Consumer Protection [SF738 Detail]
Download: Minnesota-2011-SF738-Introduced.html
1.2relating to commerce; prohibiting a motor vehicle dealer from selling a service
1.3contract from an unregistered provider;amending Minnesota Statutes 2010,
1.4sections 59B.02, by adding a subdivision; 168.27, subdivision 12; proposing
1.5coding for new law in Minnesota Statutes, chapter 59B.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 59B.02, is amended by adding a
1.8subdivision to read:
1.9 Subd. 5b. Motor vehicle dealer. "Motor vehicle dealer" means a person engaged in
1.10the business of selling new and unused motor vehicles or used motor vehicles, or both;
1.11having an established place of business for the sale, trade, and display of the motor
1.12vehicles; and having in possession motor vehicles for the purpose of sale or trade.
1.13 Sec. 2. [59B.035] OBLIGATIONS OF MOTOR VEHICLE DEALER.
1.14 Subdivision 1. Prohibition. It is unlawful for a motor vehicle dealer to sell, or
1.15facilitate in any manner the sale of, a service contract issued by a provider that is not
1.16registered as required by this chapter at the time of sale.
1.17 Subd. 2. Remedy. In addition to any other remedy that may be available at law,
1.18a motor vehicle dealer that has violated subdivision 1 is responsible to the consumer
1.19for all contractual obligations of the provider under the service contract in the event of
1.20the provider's nonperformance.
1.21 Sec. 3. Minnesota Statutes 2010, section 168.27, subdivision 12, is amended to read:
2.1 Subd. 12. Grounds for suspension and revocation. (a) A license may be
2.2suspended or revoked by the registrar of motor vehicles upon proof satisfactory to the
2.3registrar of any of the following:
2.4(1) violations of any of the provisions of this chapter or chapter 59B, 168A, 297B,
2.5325E, or 325F;
2.6(2) violation of or refusal to comply with the requests and order of the registrar;
2.7(3) failure to make or provide to the registrar all listings, notices, and reports
2.8required by the registrar;
2.9(4) failure to pay to the registrar all taxes, fees, and arrears due from and by such
2.10dealer;
2.11(5) failure to duly apply for renewal of license provided for in this section;
2.12(6) revocation of previous license, of which the records of the registrar relating to
2.13the revocation are prima facie evidence of the previous revocation;
2.14(7) failure of continued occupancy of an established place of business;
2.15(8) sale of a new and unused current model motor vehicle other than the make of
2.16motor vehicle described in the franchise or contract filed with the original application or
2.17renewal thereof, without permission from the registrar;
2.18(9) sale of a new and unused current model motor vehicle to anyone except for
2.19consumer use, or to a dealer duly licensed to sell the same make of motor vehicle;
2.20(10) material misstatement or misrepresentation in application for license or renewal;
2.21(11) having advertised, printed, displayed, published, distributed, broadcast,
2.22or televised or caused or permitted to be advertised, printed, displayed, published,
2.23distributed, broadcast, or televised in any manner whatsoever, or having made orally any
2.24statement or representation with regard to the sale, lease, or financing of motor vehicles
2.25that is false, deceptive, or misleading;
2.26(12) having been convicted of violating section325F.69 , or having been enjoined
2.27due to a violation of section325F.69 ;
2.28(13) having been convicted of violating the Minnesota Odometer Law, section
2.29325E.14
,
325E.15 , or
325E.16 , or the federal odometer law, United States Code, title
2.3015, sections 1981 to 1991;
2.31(14) having been convicted of violating the sale of motor vehicles on Sunday law,
2.32section168.275 ;
2.33(15) having been convicted under section609.53 of receiving or selling stolen
2.34vehicles; or
2.35(16) having pleaded guilty, entered a plea of nolo contendere or no contest, or having
2.36been found guilty in a court of competent jurisdiction of any charge of failure to pay state
3.1or federal income or sales taxes or felony charge of forgery, embezzlement, obtaining
3.2money under false pretenses, theft by swindle, extortion, conspiracy to defraud, or bribery.
3.3(b) With respect to paragraph (a), clauses (12), (13), (15), and (16), the registrar
3.4may suspend or revoke a license immediately upon receiving certification of conviction
3.5or permanent injunction. A hearing is required under subdivision 13 within 30 days
3.6following a summary suspension or revocation under this paragraph, if a hearing is
3.7requested by the licensee.
3.8 Sec. 4. EFFECTIVE DATE.
3.9Sections 1 to 3 are effective January 1, 2012.
1.3contract from an unregistered provider;amending Minnesota Statutes 2010,
1.4sections 59B.02, by adding a subdivision; 168.27, subdivision 12; proposing
1.5coding for new law in Minnesota Statutes, chapter 59B.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 59B.02, is amended by adding a
1.8subdivision to read:
1.9 Subd. 5b. Motor vehicle dealer. "Motor vehicle dealer" means a person engaged in
1.10the business of selling new and unused motor vehicles or used motor vehicles, or both;
1.11having an established place of business for the sale, trade, and display of the motor
1.12vehicles; and having in possession motor vehicles for the purpose of sale or trade.
1.13 Sec. 2. [59B.035] OBLIGATIONS OF MOTOR VEHICLE DEALER.
1.14 Subdivision 1. Prohibition. It is unlawful for a motor vehicle dealer to sell, or
1.15facilitate in any manner the sale of, a service contract issued by a provider that is not
1.16registered as required by this chapter at the time of sale.
1.17 Subd. 2. Remedy. In addition to any other remedy that may be available at law,
1.18a motor vehicle dealer that has violated subdivision 1 is responsible to the consumer
1.19for all contractual obligations of the provider under the service contract in the event of
1.20the provider's nonperformance.
1.21 Sec. 3. Minnesota Statutes 2010, section 168.27, subdivision 12, is amended to read:
2.1 Subd. 12. Grounds for suspension and revocation. (a) A license may be
2.2suspended or revoked by the registrar of motor vehicles upon proof satisfactory to the
2.3registrar of any of the following:
2.4(1) violations of any of the provisions of this chapter or chapter 59B, 168A, 297B,
2.5325E, or 325F;
2.6(2) violation of or refusal to comply with the requests and order of the registrar;
2.7(3) failure to make or provide to the registrar all listings, notices, and reports
2.8required by the registrar;
2.9(4) failure to pay to the registrar all taxes, fees, and arrears due from and by such
2.10dealer;
2.11(5) failure to duly apply for renewal of license provided for in this section;
2.12(6) revocation of previous license, of which the records of the registrar relating to
2.13the revocation are prima facie evidence of the previous revocation;
2.14(7) failure of continued occupancy of an established place of business;
2.15(8) sale of a new and unused current model motor vehicle other than the make of
2.16motor vehicle described in the franchise or contract filed with the original application or
2.17renewal thereof, without permission from the registrar;
2.18(9) sale of a new and unused current model motor vehicle to anyone except for
2.19consumer use, or to a dealer duly licensed to sell the same make of motor vehicle;
2.20(10) material misstatement or misrepresentation in application for license or renewal;
2.21(11) having advertised, printed, displayed, published, distributed, broadcast,
2.22or televised or caused or permitted to be advertised, printed, displayed, published,
2.23distributed, broadcast, or televised in any manner whatsoever, or having made orally any
2.24statement or representation with regard to the sale, lease, or financing of motor vehicles
2.25that is false, deceptive, or misleading;
2.26(12) having been convicted of violating section
2.27due to a violation of section
2.28(13) having been convicted of violating the Minnesota Odometer Law, section
2.3015, sections 1981 to 1991;
2.31(14) having been convicted of violating the sale of motor vehicles on Sunday law,
2.32section
2.33(15) having been convicted under section
2.34vehicles; or
2.35(16) having pleaded guilty, entered a plea of nolo contendere or no contest, or having
2.36been found guilty in a court of competent jurisdiction of any charge of failure to pay state
3.1or federal income or sales taxes or felony charge of forgery, embezzlement, obtaining
3.2money under false pretenses, theft by swindle, extortion, conspiracy to defraud, or bribery.
3.3(b) With respect to paragraph (a), clauses (12), (13), (15), and (16), the registrar
3.4may suspend or revoke a license immediately upon receiving certification of conviction
3.5or permanent injunction. A hearing is required under subdivision 13 within 30 days
3.6following a summary suspension or revocation under this paragraph, if a hearing is
3.7requested by the licensee.
3.8 Sec. 4. EFFECTIVE DATE.
3.9Sections 1 to 3 are effective January 1, 2012.
