1.1 	A bill for an act
1.2 	relating to liens; authorizing nonprofit charitable organizations to impose 
1.3 	one-year lien on donated motor vehicle; proposing coding for new law in 
1.4 	Minnesota Statutes, chapter 514.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [514.911] TEMPORARY LIEN ON MOTOR VEHICLE PROVIDED 
1.7 	BY CHARITY.
1.8 	(a) Notwithstanding section 550.37, subdivision 12a, or other law to the contrary, a 
1.9 	nonprofit charitable organization, as defined in section 309.50, has a lien on a motor 
1.10 	vehicle donated or otherwise transferred to a person without charge and for a charitable 
1.11 	purpose. The lien is for either possession or fair market value of the motor vehicle at the 
1.12 	time of transfer and expires one year after the date the charitable organization transfers 
1.13 	the vehicle.
1.14 	(b) The nonprofit charitable organization must elect to foreclose on the lien within 
1.15 	90 days of learning that the transferee, within the one-year lien period, attempted to or 
1.16 	did any of the following:
1.17 	(1) sold or otherwise transferred possession of the vehicle for compensation of 
1.18 	any kind; 
1.19 	(2) used the vehicle for any unlawful purpose or during any unlawful transaction or 
1.20 	enterprise; or
1.21 	(3) used the vehicle for any purpose or activity prohibited by the charitable 
1.22 	organization as a condition for retaining possession of the vehicle.
1.23 	(c) The Department of Public Safety shall provide on any certificate of title issued 
1.24 	upon transfer of the motor vehicle under paragraph (a) notice of the one-year lien and the 
2.1 	date when the lien expires. The department shall issue an amended certificate to the 
2.2 	nonprofit charitable organization upon notice that the charitable organization has taken 
2.3 	possession of the motor vehicle pursuant to paragraph (b).