1.1                          A bill for an act 
  1.2             relating to consumer protection; regulating new 
  1.3             motorcycle warranties; imposing duties on 
  1.4             manufacturers; amending Minnesota Statutes 1996, 
  1.5             section 325F.665, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 325F.665, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  1.10  section, the following terms have the meanings given them:  
  1.11     (a) "consumer" means the purchaser or lessee, other than 
  1.12  for purposes of resale or sublease, of a new motor vehicle used 
  1.13  for personal, family, or household purposes at least 40 percent 
  1.14  of the time, a person to whom the new motor vehicle is 
  1.15  transferred for the same purposes during the duration of an 
  1.16  express warranty applicable to the motor vehicle; 
  1.17     (b) "manufacturer" means a person engaged in the business 
  1.18  of manufacturing, assembling or distributing motor vehicles, who 
  1.19  will, under normal business conditions during the year, 
  1.20  manufacture, assemble or distribute to dealers at least ten new 
  1.21  motor vehicles; 
  1.22     (c) "manufacturer's express warranty" and "warranty" mean 
  1.23  the written warranty of the manufacturer of a new motor vehicle 
  1.24  of its condition and fitness for use, including any terms or 
  1.25  conditions precedent to the enforcement of obligations under 
  2.1   that warranty; 
  2.2      (d) "lease" means a contract in the form of a lease or 
  2.3   bailment for the use of personal property by a natural person 
  2.4   for a period of time exceeding four months, used for personal, 
  2.5   family, or household purposes at least 40 percent of the time, 
  2.6   whether or not the lessee has the option to purchase or 
  2.7   otherwise become the owner of the property at the expiration of 
  2.8   the lease; 
  2.9      (e) "motor vehicle" means (1) a passenger automobile as 
  2.10  defined in section 168.011, subdivision 7, including pickup 
  2.11  trucks and vans, (2) a motorcycle as defined in section 168.011, 
  2.12  subdivision 26, and ~~(2)~~ (3) the self-propelled motor vehicle 
  2.13  chassis or van portion of recreational equipment as defined in 
  2.14  section 168.011, subdivision 25, which is sold or leased to a 
  2.15  consumer in this state; 
  2.16     (f) "informal dispute settlement mechanism" means an 
  2.17  arbitration process or procedure by which the manufacturer 
  2.18  attempts to resolve disputes with consumers regarding motor 
  2.19  vehicle nonconformities and repairs that arise during the 
  2.20  vehicle's warranty period; 
  2.21     (g) "motor vehicle lessor" means a person who holds title 
  2.22  to a motor vehicle leased to a lessee under a written lease 
  2.23  agreement or who holds the lessor's rights under such agreement; 
  2.24  and 
  2.25     (h) "early termination costs" means expenses and 
  2.26  obligations incurred by a motor vehicle lessor as a result of an 
  2.27  early termination of a written lease agreement and surrender of 
  2.28  a motor vehicle to a manufacturer under subdivision 4, including 
  2.29  penalties for prepayment of finance arrangements. 
  2.30     Sec. 2.  [EFFECTIVE DATE; APPLICABILITY.] 
  2.31     Section 1 is effective August 1, 1997, and applies to all 
  2.32  motorcycles sold or leased on or after that date and to all 
  2.33  motorcycles which as of that date are still under a 
  2.34  manufacturer's express warranty and were originally delivered 
  2.35  during the previous one-year period.