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S.F. No. 1496 - Vehicle Titling and Registration Modifications (2nd Engrossment)
Author: Senator John R. Jasinski
Prepared By: Alexis C. Stangl, Senate Counsel (651/296-4397)
Date: March 19, 2019


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, 2022.

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.  This section does not authorize the sale of vehicles by a licensee that is not authorized by the manufacturer to sell that make of vehicle.

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.  This section is effective July 1, 2020, or upon completion of the necessary programming in MNLARS, whichever is earlier.

Section 7 [Electronic transmission].  Requires the commissioner of public safety to establish standards to approve 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].  Licensed auto dealers may obtain bulk vehicle registration data from the commissioner of public safety for reasons specified in federal law.

Section 9 [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 10 [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 11 [Driver and Vehicle Services Executive Steering Committee].  A Driver and Vehicle Service Executive Steering Committee is established in the Department of Public Safety.  The committee advises the commissioner of public safety and the director of driver and vehicle services on driver and vehicle services projects that impact information systems used to issue identification cards and motor vehicle titles and registration.  The committee will also make recommendations on work plans, policy initiatives, major activities, and strategic planning.  The commissioner of public safety must annually report to the legislature on the committee’s activities, issues identified by the committee, methods used to address issues, and recommendations for legislative action. The committee expires on June 30, 2029.

Section 12 [Vehicle Registration Task Force].  The Vehicle Registration Task Force is established to study various methods of vehicle registration.  By January 15, 2020, the task force must report to the legislature regarding its findings and recommendations.

Section 13 [Driver and Vehicle Services Executive Steering Committee First Appointments; First Meeting; First Report] establishes deadlines and other parameters for the start of the Driver and Vehicle Services Executive Steering Committee.

Section 14 [Temporary motor vehicle permits].  Allows temporary vehicle permits to be issued for up to 180 days.  A temporary permit may only be issued under this section if MNLARS is unable to complete the transaction in a timely manner.


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