1.1                          A bill for an act 
  1.2             relating to motor vehicles; authorizing suspension of 
  1.3             a vehicle's registration in certain circumstances; 
  1.4             requiring a form to be provided in a vehicle's 
  1.5             certificate of title and completed under certain 
  1.6             circumstances; amending Minnesota Statutes 1996, 
  1.7             sections 168.17; 168A.05, subdivision 5; and 168A.10, 
  1.8             subdivisions 1, 2, and 5. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 168.17, is 
  1.11  amended to read: 
  1.12     168.17 [SUSPENSION OF REGISTRATION.] 
  1.13     All registrations and issue of number plates shall be 
  1.14  subject to amendment, suspension, modification or revocation by 
  1.15  the registrar summarily for any violation of or neglect to 
  1.16  comply with the provisions of this chapter or when the 
  1.17  transferee fails to comply with section 168A.10, subdivision 2, 
  1.18  within 30 days of the date of sale.  In any case where the 
  1.19  proper registration of a motor vehicle is dependent upon 
  1.20  procuring information entailing such delay as to unreasonably 
  1.21  deprive the owner of the use of the motor vehicle, the registrar 
  1.22  may issue a tax receipt and plates conditionally.  In any case 
  1.23  when revoking a registration for cause, the registrar shall have 
  1.24  authority to demand the return of the number plates and 
  1.25  registration certificates, and, if necessary, to seize the 
  1.26  number plates issued for such registration. 
  1.27     Sec. 2.  Minnesota Statutes 1996, section 168A.05, 
  2.1   subdivision 5, is amended to read: 
  2.2      Subd. 5.  [ASSIGNMENT AND WARRANTY OF TITLE FORMS.] (a) The 
  2.3   certificate of title shall contain forms: 
  2.4      (1) for assignment and warranty of title by the owner, and 
  2.5   for; 
  2.6      (2) for assignment and warranty of title by a dealer, and 
  2.7   shall contain forms for applications; 
  2.8      (3) to apply for a certificate of title by a transferee, 
  2.9   and the naming of; 
  2.10     (4) to name a secured party, and shall include; and 
  2.11     (5) language necessary to implement to make the disclosure 
  2.12  required by section 325F.6641. 
  2.13     (b) The certificate of title must also include a separate 
  2.14  detachable form that contains the automobile's title number and 
  2.15  vehicle identification number with sufficient space for the 
  2.16  owner to record the name, address, and driver's license number 
  2.17  of a purchaser, the vehicle's purchase price, and its date of 
  2.18  sale.  The form must be entitled "Notice of Sale" and must 
  2.19  include clear instructions regarding the owner's responsibility 
  2.20  to complete and return the form pursuant to section 168A.10, 
  2.21  subdivision 1. 
  2.22     Sec. 3.  Minnesota Statutes 1996, section 168A.10, 
  2.23  subdivision 1, is amended to read: 
  2.24     Subdivision 1.  [ASSIGNMENT AND WARRANTY OF TITLE; MILEAGE; 
  2.25  NOTICE OF SALE.] If an owner transfers interest in a vehicle 
  2.26  other than by the creation of a security interest, the owner 
  2.27  shall at the time of the delivery of the vehicle execute an 
  2.28  assignment and warranty of title to the transferee and shall 
  2.29  state the actual selling price in the space provided therefor on 
  2.30  the certificate.  The owner shall also complete the form on the 
  2.31  certificate entitled "Notice of Sale," if one is provided, by 
  2.32  recording the name, address, and driver's license number of the 
  2.33  purchaser, the vehicle's purchase price, and its date of sale.  
  2.34  The owner shall detach and return this form to the department 
  2.35  within seven days of the date of sale.  With respect to motor 
  2.36  vehicles subject to the provisions of section 325E.15, the 
  3.1   transferor shall also, in the space provided therefor on the 
  3.2   certificate, state the true cumulative mileage registered on the 
  3.3   odometer or that the actual mileage is unknown if the odometer 
  3.4   reading is known by the transferor to be different from the true 
  3.5   mileage.  The transferor shall cause the certificate and 
  3.6   assignment to be delivered to the transferee immediately. 
  3.7      Sec. 4.  Minnesota Statutes 1996, section 168A.10, 
  3.8   subdivision 2, is amended to read: 
  3.9      Subd. 2.  [APPLICATION FOR NEW CERTIFICATE.] Except as 
  3.10  provided in section 168A.11, the transferee shall, within ten 
  3.11  days after assignment to the transferee of the vehicle title 
  3.12  certificate, execute the application for a new certificate of 
  3.13  title in the space provided therefor on the certificate, and 
  3.14  cause the certificate of title to be mailed or delivered to the 
  3.15  department.  Failure of the transferee to comply with this 
  3.16  subdivision shall result in the revocation of the vehicle's 
  3.17  registration under section 168.17. 
  3.18     Sec. 5.  Minnesota Statutes 1996, section 168A.10, 
  3.19  subdivision 5, is amended to read: 
  3.20     Subd. 5.  [COMPLIANCE REMOVES LIABILITY AFTER DELIVERY.] 
  3.21  Except as provided in section 168A.11 and as between the 
  3.22  parties, a transfer by an owner is not effective until the 
  3.23  provisions of this section have been complied with;.  However, 
  3.24  an owner who has delivered possession of the vehicle to the 
  3.25  transferee and has complied, or within 48 hours after such 
  3.26  delivery does comply, with the provisions of this section 
  3.27  requiring action by the owner is not liable as owner for any 
  3.28  damages resulting from operation of the vehicle after the 
  3.29  delivery of the vehicle to the transferee if the owner: 
  3.30     (1) has delivered possession of the vehicle to the 
  3.31  transferee; 
  3.32     (2) has complied, within 48 hours after delivery, with the 
  3.33  provisions of this section requiring action by the owner; and 
  3.34     (3) if required, has complied within seven days with the 
  3.35  duty to complete and return the "Notice of Sale" form described 
  3.36  in subdivision 1.