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S.F. No. 3250 - Vehicle Titling and Registration Modifications (Second Engrossment)
Author: Senator John R. Jasinski
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
Alexis C. Stangl, Senate Counsel (651/296-4397)
Date: March 29, 2018


Section 1 [Unfair practices by manufacturers, distributors, factory branches] makes it unlawful for a motor vehicle manufacturer, distributor, or factory branch to charge back or withhold or deny payment against a motor vehicle dealer due to a delay in the transfer or registration of a new motor vehicle due to an unreasonable delay by the registrar. Establishes a deadline and a process for a dealer to notify a manufacturer that delay is attributable to the state.  This section expires June 30, 2021.

Section 2 [Passenger automobile; hearse].  For first registrations of a new vehicle sold by a dealer, the dealer may choose to determine the base value of the vehicle using suggested retail price information from the manufacturer. The registrar must use this base value. The dealer must retain records to show how the value was determined.

Section 3 [Listing by dealers].  Allows dealers to withhold tax due from the prior registration period. A lien for registration tax does not attach.

Section 4 [Multiple licenses].  Allows a dealer with more than one location in the state to move vehicles between the lots without assigning vehicle ownership or title to the lot where the vehicle is located.

Section 5 [Designated dealer title and registration liaison].  The commissioner of public safety must designate one or more department employees to respond to questions from dealers and troubleshoot dealer issues related to vehicle titles and registration.

Section 6 [Late fee].  The $2 late fee does not apply to transfers from licensed vehicle dealers.

Section 7 [Electronic transmission].  Requires the commissioner of public safety to establish standards to approve and allow software companies that provide software to dealers to electronically transmit vehicle title transfer and registration information. Approved companies must be allowed access to department facilities, staff, and technology.

Section 8 [Vehicle registration data; federal compliance].  Prohibits the commissioner of public safety from restricting the uses for which a licensed dealer may obtain specific data about an individual obtained by the department in connection with a motor vehicle record.

Section 9 [Issuance of certificate by deputy registrar].  Allows deputy registrars to issue vehicle titles no later than August 1, 2019.

Section 10 [Owner’s interest terminated or vehicle sold by secured party].  Allows an assignee of a secured party to perform certain actions in place of the assignee.

Section 11 [Notice of perfection by dealer].  When a security interest in a vehicle sold by a dealer is perfected, the dealer may provide a statement of perfection to the secured party. The statement is considered prima facie evidence of the facts in the statement.

Section 12 [Motor vehicle title transfer and registration advisory committee].  Establishes the Motor Vehicle Title and Registration Advisory Committee to advise the commissioner of public safety on title and registration issues. The commissioner must annually submit reports to the legislature summarizing the committee’s activities, issues identified by the committee, methods taken to address these issues, and recommendations for legislative action.


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