1.1                          A bill for an act 
  1.2             relating to recreational vehicles; implementing 
  1.3             titling system for snowmobiles; imposing fees and 
  1.4             penalties; amending Minnesota Statutes 1994, sections 
  1.5             84.81; 84.82, subdivision 1a; 84.821, by adding a 
  1.6             subdivision; 84.83, subdivision 2; 84.84; and 84.85; 
  1.7             proposing coding for new law in Minnesota Statutes, 
  1.8             chapter 84. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 84.81, is 
  1.11  amended to read: 
  1.12     84.81 [DEFINITIONS.] 
  1.13     Subdivision 1.  [APPLICABILITY SCOPE.] For the purposes 
  1.14  of Laws 1967, chapter 876 sections 84.81 to 84.911, the terms 
  1.15  defined herein shall in this section have the meaning ascribed 
  1.16  to given them. 
  1.17     Subd. 2.  [PERSON.] "Person" includes means an individual, 
  1.18  firm, partnership, limited liability partnership, association, 
  1.19  company, limited liability company, corporation, the state and 
  1.20  its agencies and subdivisions, and any body of persons, whether 
  1.21  incorporated or not or governmental organization.  
  1.22     Subd. 3.  [SNOWMOBILE.] "Snowmobile" means a self-propelled 
  1.23  vehicle designed for travel on snow or ice and steered by skis 
  1.24  or runners.  
  1.25     Subd. 4.  [OWNER.] "Owner" means a person, other than a 
  1.26  lien holder secured party, having the property in or title to a 
  1.27  snowmobile entitled to the use or possession thereof.  "Owner" 
  2.1   includes a person entitled to use or possess the snowmobile, 
  2.2   subject to a security interest in another person, reserved or 
  2.3   created by agreement and securing payment or performance of an 
  2.4   obligation, but owner does not include a lessee under a lease 
  2.5   not intended as security. 
  2.6      Subd. 5.  [OPERATE.] "Operate" means to ride in or on and 
  2.7   control the operation of a snowmobile.  
  2.8      Subd. 6.  [OPERATOR.] "Operator" means every person who 
  2.9   operates or is in actual physical control of a snowmobile.  
  2.10     Subd. 7.  [REGISTER.] "Register" means the act of assigning 
  2.11  a registration number to a snowmobile.  
  2.12     Subd. 8.  [COMMISSIONER.] "Commissioner" means the 
  2.13  commissioner of natural resources acting directly or through the 
  2.14  commissioner's authorized agent.  
  2.15     Subd. 9.  [ROADWAY.] "Roadway" means that portion of a 
  2.16  highway improved, designed, or ordinarily used for vehicular 
  2.17  travel.  
  2.18     Subd. 10.  [DEALER.] "Dealer" means a person, partnership, 
  2.19  or corporation engaged in the business of selling snowmobiles at 
  2.20  wholesale or retail. who:  (1) is in the business of 
  2.21  manufacturing, distributing, selling, or purchasing new or used 
  2.22  snowmobiles; and (2) possesses snowmobiles for the purpose of 
  2.23  sale or trade.  
  2.24     Subd. 11.  [MANUFACTURER.] "Manufacturer" means a person, 
  2.25  partnership, or corporation engaged in the business of 
  2.26  manufacturing constructing or assembling snowmobiles required to 
  2.27  have a certificate of title. 
  2.28     Subd. 12.  [DEPARTMENT.] "Department" means the department 
  2.29  of natural resources. 
  2.30     Subd. 13.  [DEPUTY REGISTRAR.] "Deputy registrar" means a 
  2.31  person appointed or hired by the commissioner of public safety 
  2.32  under section 168.33. 
  2.33     Subd. 14.  [MANUFACTURER'S OR IMPORTER'S CERTIFICATE OF 
  2.34  ORIGIN.] "Manufacturer's or importer's certificate of origin" 
  2.35  means a certificate with the authorized signature of the 
  2.36  manufacturer or importer of a snowmobile, describing and 
  3.1   identifying the snowmobile, giving the name and address of the 
  3.2   person to whom the snowmobile is first sold by the manufacturer 
  3.3   or importer, and containing executed assignments of the 
  3.4   snowmobile to an applicant for a certificate of title on the 
  3.5   snowmobile in this state. 
  3.6      Subd. 15.  [SECURED PARTY.] "Secured party" means a secured 
  3.7   party, as defined in section 336.9-105, subsection (1)(m), 
  3.8   having a security interest in a snowmobile and includes a 
  3.9   lienholder. 
  3.10     Subd. 16.  [SECURITY AGREEMENT.] "Security agreement" has 
  3.11  the meaning given it in section 336.9-105, subsection (1)(l). 
  3.12     Subd. 17.  [SECURITY INTEREST.] "Security interest" has the 
  3.13  meaning given it in section 336.1-201, subsection (37), and 
  3.14  includes statutory liens for which lien statements are filed.  
  3.15     Subd. 18.  [TITLED SNOWMOBILE.] "Titled snowmobile" means a 
  3.16  snowmobile required to have a certificate of title under section 
  3.17  84.822, subdivisions 1 to 3, or for which a certificate of title 
  3.18  has been issued under section 84.8223.  
  3.19     Sec. 2.  Minnesota Statutes 1994, section 84.82, 
  3.20  subdivision 1a, is amended to read: 
  3.21     Subd. 1a.  [GENERAL REQUIREMENTS.] A person may not operate 
  3.22  or transport a snowmobile unless the snowmobile has been 
  3.23  registered under this section.  A person may not sell a 
  3.24  snowmobile without furnishing the buyer a bill of sale or a 
  3.25  certificate of title on a form prescribed by the commissioner.  
  3.26     Sec. 3.  Minnesota Statutes 1994, section 84.821, is 
  3.27  amended by adding a subdivision to read: 
  3.28     Subd. 3.  [CERTIFICATE OF ORIGIN.] On and after the 
  3.29  effective date of this section, a manufacturer or importer of 
  3.30  snowmobiles sent to Minnesota for subsequent sale by dealers or 
  3.31  other persons shall provide the dealer or other person with a 
  3.32  certificate of origin for each snowmobile, pursuant to section 
  3.33  84.8226. 
  3.34     Sec. 4.  [84.822] [CERTIFICATE OF TITLE REQUIREMENTS.] 
  3.35     Subdivision 1.  [REQUIREMENT.] Except as provided in 
  3.36  subdivision 2, a snowmobile used in this state must have a 
  4.1   certificate of title if it is kept in the state for more than 30 
  4.2   consecutive days and has not been issued a certificate of title 
  4.3   or similar document from another jurisdiction.  
  4.4      Subd. 2.  [EXEMPT SNOWMOBILE.] A snowmobile is not required 
  4.5   to have a certificate of title if it is:  
  4.6      (1) owned by a manufacturer or dealer and held for sale; 
  4.7      (2) used by a manufacturer solely for testing; 
  4.8      (3) from a jurisdiction other than this state, temporarily 
  4.9   being used in this state; 
  4.10     (4) owned by the United States, a state, this state, or a 
  4.11  political subdivision; or 
  4.12     (5) manufactured beginning model year 1997.  
  4.13     Subd. 3.  [TITLE REQUIRED FOR TRANSFER.] A person may not 
  4.14  sell or otherwise transfer a titled snowmobile without 
  4.15  delivering to the person acquiring the snowmobile a certificate 
  4.16  of title with an assignment on it to show title to the person 
  4.17  acquiring the snowmobile.  A person may not acquire a snowmobile 
  4.18  required to have a certificate of title without obtaining a 
  4.19  certificate of title for the snowmobile in the person's name.  
  4.20     Subd. 4.  [NO LEGAL TITLE WITHOUT CERTIFICATE.] A person 
  4.21  acquiring a snowmobile through a sale or gift does not acquire a 
  4.22  right, title, claim, or interest in the snowmobile until the 
  4.23  person has been issued a certificate of title to the snowmobile 
  4.24  or has received a manufacturer's or importer's certificate.  A 
  4.25  waiver or estoppel does not operate in favor of that person 
  4.26  against another person who has obtained possession of the 
  4.27  certificate of title or manufacturer's or importer's certificate 
  4.28  for the snowmobile for valuable consideration.  
  4.29     Subd. 5.  [NO SNOWMOBILE REGISTRATION WITHOUT CERTIFICATE.] 
  4.30  The commissioner may not issue or renew the registration for a 
  4.31  snowmobile to an owner of a snowmobile requiring titling unless 
  4.32  the owner has been issued or has applied for a certificate of 
  4.33  title for the snowmobile.  
  4.34     Sec. 5.  [84.8223] [APPLICATION AND ISSUANCE OF TITLE 
  4.35  CERTIFICATE.] 
  4.36     Subdivision 1.  [APPLICATION.] The owner of a snowmobile 
  5.1   required to be titled shall apply for the first certificate of 
  5.2   title of a snowmobile in this state to the commissioner or a 
  5.3   deputy registrar on a form prescribed by the commissioner.  The 
  5.4   appropriate fee under section 84.8248 must accompany the 
  5.5   application.  The application must be signed by the owner and 
  5.6   contain: 
  5.7      (1) the full names, dates of birth, and addresses of owners 
  5.8   who are natural persons and the full names and addresses of 
  5.9   other owners; 
  5.10     (2) a description of the snowmobile including its make, 
  5.11  model, year of manufacture, registration number, and, if 
  5.12  required under section 84.821, the manufacturer's identification 
  5.13  number; 
  5.14     (3) the date of purchase by the applicant and the name and 
  5.15  address of the person from whom the snowmobile was acquired; 
  5.16     (4) the name and address of the person who is to possess 
  5.17  the title and any conditions of possession; and 
  5.18     (5) other information required by the commissioner to 
  5.19  determine whether the owner is entitled to a certificate of 
  5.20  title and whether security interests exist in the snowmobile.  
  5.21     Subd. 2.  [ISSUANCE OF CERTIFICATE.] (a) The commissioner 
  5.22  shall issue a certificate of title for a snowmobile upon 
  5.23  verification that:  
  5.24     (1) the application is genuine; 
  5.25     (2) the applicant is the owner of the snowmobile; and 
  5.26     (3) payment of the required fee.  
  5.27     (b) The original certificate of title must be mailed to the 
  5.28  first secured party disclosed in the application or, if none, to 
  5.29  the owner named in the application.  
  5.30     Subd. 3.  [CONTENTS OF CERTIFICATE.] (a) A certificate of 
  5.31  title issued by the commissioner must contain: 
  5.32     (1) the date issued; 
  5.33     (2) the full names, dates of birth, and addresses of owners 
  5.34  who are natural persons and the full names and addresses of 
  5.35  other owners; 
  5.36     (3) the names and addresses of secured parties; 
  6.1      (4) the title number assigned to the snowmobile; 
  6.2      (5) a description of the snowmobile including its make, 
  6.3   model, year of manufacture, and manufacturer's identification 
  6.4   number required under section 84.821; 
  6.5      (6) spaces for assignment of title by the owner or by the 
  6.6   dealer and for warranting that the signer is the owner and that 
  6.7   the snowmobile is not subject to security interests, liens, or 
  6.8   encumbrances except as noted on the face of the certificate of 
  6.9   title; 
  6.10     (7) spaces on the certificate for application of title by a 
  6.11  new owner subject to the security interests of secured parties 
  6.12  named and for the assignment or release of the security interest 
  6.13  of a secured party; and 
  6.14     (8) other information the commissioner may require. 
  6.15     (b) A certificate of title issued by the commissioner is 
  6.16  prima facie evidence of the facts appearing on it. 
  6.17     Subd. 4.  [ISSUANCE WITHOUT ABSOLUTE PROOF OF OWNERSHIP.] 
  6.18  (a) If application is made for a certificate of title for a 
  6.19  snowmobile and the commissioner is not satisfied of the 
  6.20  ownership of the snowmobile or the existence of security 
  6.21  interests in the snowmobile, the snowmobile may be assigned a 
  6.22  title number but the commissioner shall: 
  6.23     (1) withhold issuance of a certificate of title until the 
  6.24  applicant presents documents that satisfy the commissioner of 
  6.25  the applicant's ownership of the snowmobile and of any security 
  6.26  interests in the snowmobile; or 
  6.27     (2) require the applicant to file a bond in the form 
  6.28  prescribed by the commissioner and executed by the applicant as 
  6.29  a condition to issuing a certificate of title.  
  6.30     (b) A bond filed under this subdivision must be accompanied 
  6.31  by the deposit of cash or executed by a surety company 
  6.32  authorized to do business in this state.  The bond must be in an 
  6.33  amount equal to 1-1/2 times the value of the snowmobile as 
  6.34  determined by the commissioner.  The bond must be conditioned to 
  6.35  indemnify prior owners, secured parties, and later purchasers of 
  6.36  the snowmobile or persons acquiring a security interest in the 
  7.1   snowmobile, or successors in interest of the persons, against 
  7.2   expenses, losses, or damages, including reasonable attorney 
  7.3   fees, by reason of the issuance of the certificate of title to 
  7.4   the snowmobile or on account of a defect in or undisclosed 
  7.5   security interest upon the right, title, and interest of the 
  7.6   applicant in the snowmobile.  
  7.7      (c) An interested person has a right of action to recover 
  7.8   on the bond for a breach of its conditions, but the aggregate 
  7.9   liability of the surety to all persons may not exceed the amount 
  7.10  of the bond.  
  7.11     (d) The commissioner shall return the bond and any deposit 
  7.12  accompanying the bond if: 
  7.13     (1) the commissioner has not been notified of the pendency 
  7.14  of an action to recover on the bond; 
  7.15     (2) questions of ownership and outstanding security 
  7.16  interests have been resolved to the satisfaction of the 
  7.17  commissioner; 
  7.18     (3) the bond has been posted for three years or the 
  7.19  snowmobile is not registered under section 84.82; and 
  7.20     (4) the currently valid certificate of title is surrendered.
  7.21     Subd. 5.  [RECORDS.] (a) The commissioner shall maintain 
  7.22  records of certificates of title issued under this section 
  7.23  according to one of the following systems: 
  7.24     (1) under a distinctive title number assigned to a 
  7.25  snowmobile; 
  7.26     (2) under the registration number awarded to a snowmobile 
  7.27  in accordance with the registration and numbering law of the 
  7.28  state where it is registered; 
  7.29     (3) alphabetically, under the name of the owner; or 
  7.30     (4) under another system determined by the commissioner. 
  7.31     (b) Records relating to snowmobile titling maintained by 
  7.32  the commissioner are public records and are open to public 
  7.33  inspection during regular office hours. 
  7.34     Subd. 6.  [GROUNDS FOR REFUSAL TO ISSUE CERTIFICATE.] The 
  7.35  commissioner may not issue a certificate of title if a required 
  7.36  fee is not paid or the commissioner has reasonable grounds to 
  8.1   believe that: 
  8.2      (1) the applicant is not the owner of the snowmobile; 
  8.3      (2) the application contains a false statement; or 
  8.4      (3) the applicant failed to furnish required information or 
  8.5   documents or additional information the commissioner reasonably 
  8.6   requires. 
  8.7      Sec. 6.  [84.8226] [DEALER ACQUISITION AND TRANSFER.] 
  8.8      Subdivision 1.  [CERTIFICATE OF ORIGIN REQUIRED.] (a) A 
  8.9   dealer may not purchase or acquire a snowmobile required to be 
  8.10  titled without obtaining a manufacturer's or importer's 
  8.11  certificate of origin from the seller. 
  8.12     (b) A manufacturer, importer, dealer, or other person may 
  8.13  not sell or otherwise dispose of a snowmobile required to be 
  8.14  titled to a dealer for purposes of display and resale without 
  8.15  delivering to the dealer a manufacturer's or importer's 
  8.16  certificate of origin. 
  8.17     Subd. 2.  [CONTENTS OF CERTIFICATE OF ORIGIN.] The 
  8.18  manufacturer's or importer's certificate of origin must be of a 
  8.19  form prescribed by the commissioner and contain: 
  8.20     (1) a description of the snowmobile, including its trade 
  8.21  name, if any, year of manufacture, make, series or model, and 
  8.22  identification number; 
  8.23     (2) certification of the date of transfer of the snowmobile 
  8.24  and the name and address of the person to whom the snowmobile 
  8.25  was transferred; 
  8.26     (3) certification that the transfer of the snowmobile was 
  8.27  in ordinary trade and commerce; 
  8.28     (4) the signature and address of a representative of the 
  8.29  person transferring the snowmobile; 
  8.30     (5) an assignment form, including the name and address of 
  8.31  the person the snowmobile is to be transferred to, a 
  8.32  certification that the snowmobile is new, and a warranty that 
  8.33  the title at the time of delivery is subject only to the 
  8.34  security interests stated on the title; and 
  8.35     (6) other information required by the commissioner.  
  8.36     Subd. 3.  [SALE OF NEW SNOWMOBILE.] A dealer selling or 
  9.1   exchanging a new snowmobile required to be titled, before 
  9.2   delivering the snowmobile to a purchaser, shall apply to the 
  9.3   commissioner for a new title in the name of the purchaser.  The 
  9.4   application must contain the name and address of any secured 
  9.5   party holding a security interest created or reserved at the 
  9.6   time of sale and the date of the security agreement and must be 
  9.7   accompanied by a manufacturer's or importer's certificate of 
  9.8   origin.  The application must be signed by the dealer and the 
  9.9   owner, and the dealer shall promptly mail or deliver the 
  9.10  application to the commissioner or a deputy registrar.  
  9.11     Subd. 4.  [TITLE NUMBER REQUIRED; TRANSFER PROCEDURE.] (a) 
  9.12  If a dealer buys or acquires a snowmobile required to be titled, 
  9.13  the dealer must apply to the commissioner or deputy registrar 
  9.14  (1) to obtain a title number before selling or exchanging the 
  9.15  snowmobile in the same manner as a new snowmobile on forms the 
  9.16  commissioner provides or (2) to obtain a certificate of title. 
  9.17     (b) If a dealer acquires a used titled snowmobile for 
  9.18  resale and the snowmobile is covered by a certificate of title 
  9.19  that is surrendered to the dealer by the owner at the time of 
  9.20  delivery of the snowmobile, the dealer need not send the 
  9.21  certificate of title to the commissioner.  Upon transferring the 
  9.22  snowmobile to another person, the dealer shall promptly execute 
  9.23  the assignment, showing the name and address of the person to 
  9.24  whom the snowmobile is transferred, and forward the certificate 
  9.25  to the commissioner or deputy registrar with the application for 
  9.26  a new certificate of title. 
  9.27     Subd. 5.  [SNOWMOBILE WITH FOREIGN REGISTRATION.] (a)  
  9.28  Except as provided in paragraph (b), an application for a 
  9.29  certificate of title for a snowmobile last registered in another 
  9.30  state or foreign country must contain or be accompanied by: 
  9.31     (1) a certificate of title or registration issued by the 
  9.32  other state or foreign country; and 
  9.33     (2) other information or documents the commissioner 
  9.34  requires to establish the ownership of the snowmobile and the 
  9.35  existence or nonexistence of security interests. 
  9.36     (b) If the state or foreign country where the snowmobile 
 10.1   was last registered does not issue certificates of title, the 
 10.2   application must contain or be accompanied by: 
 10.3      (1) a proper bill of sale or sworn statement of ownership, 
 10.4   certificate of registration, or evidence of ownership as 
 10.5   required by the law of the state or foreign country; and 
 10.6      (2) any other information or documents the commissioner 
 10.7   requires to establish the ownership of the snowmobile and the 
 10.8   existence or nonexistence of security interests. 
 10.9      Sec. 7.  [84.8229] [TRANSFER BY OWNER.] 
 10.10     Subdivision 1.  [VOLUNTARY TRANSFER.] (a) An owner who 
 10.11  transfers a titled snowmobile shall execute the assignment and 
 10.12  warranty of title to the person to whom the snowmobile is 
 10.13  transferred in the space provided on the certificate of title 
 10.14  where the snowmobile is delivered.  
 10.15     (b) The person acquiring the snowmobile shall obtain a new 
 10.16  certificate of title by applying to the commissioner or a deputy 
 10.17  registrar on a form prescribed by the commissioner, and 
 10.18  submitting the required fee.  The application for certificate of 
 10.19  title must be filed within 15 days after delivery of the 
 10.20  snowmobile to the person acquiring the snowmobile.  
 10.21     (c) Upon request of the owner or the person who acquired 
 10.22  the snowmobile, a secured party in possession of the certificate 
 10.23  of title shall deliver the certificate to the person acquiring 
 10.24  the snowmobile, the commissioner, or a deputy registrar, unless 
 10.25  the transfer is a breach of the security agreement.  The 
 10.26  delivery of the certificate does not affect the rights of the 
 10.27  secured party under the security agreement. 
 10.28     (d) If a security interest or encumbrance is first created 
 10.29  at the time of transfer of ownership, the certificate must be 
 10.30  retained by or delivered to the secured party.  
 10.31     Subd. 2.  [TRANSFER BY LAW.] (a) Except as otherwise 
 10.32  provided in this chapter, if the ownership of a titled 
 10.33  snowmobile is transferred by operation of law, including 
 10.34  inheritance or bequest, order in bankruptcy, insolvency, 
 10.35  replevin, execution, sale, or satisfaction of mechanic's lien, 
 10.36  or repossession upon default in performance of the terms of a 
 11.1   security agreement, the person acquiring the snowmobile by 
 11.2   operation of law shall promptly submit the last certificate of 
 11.3   title, if available, or the manufacturer's or importer's 
 11.4   certificate of origin or other satisfactory proof of the 
 11.5   transfer of ownership to the commissioner or deputy registrar 
 11.6   with the application for a new certificate of title and the 
 11.7   required fee. 
 11.8      (b) If a secured party acquires a titled snowmobile under 
 11.9   the terms of a security agreement or by operation of law, the 
 11.10  secured party shall promptly submit to the commissioner, a 
 11.11  deputy registrar, or the person acquiring the snowmobile from 
 11.12  the secured party the last certificate of title, if available, 
 11.13  an application for a new certificate of title with the required 
 11.14  fee, and an affidavit by the secured party or an authorized 
 11.15  representative stating the facts entitling the secured party to 
 11.16  possession and ownership of the snowmobile, including a copy of 
 11.17  the journal entry, court order, or instrument upon which the 
 11.18  claim of possession and ownership is founded.  If the secured 
 11.19  party cannot produce the required proof of ownership, the 
 11.20  secured party may submit other evidence with the application and 
 11.21  the commissioner may issue a new certificate of title if the 
 11.22  evidence provides satisfactory proof of ownership. 
 11.23     Sec. 8.  [84.8232] [TEMPORARY SNOWMOBILE USE PERMITS.] 
 11.24     Subdivision 1.  [ISSUANCE TO TITLE APPLICANT.] (a) The 
 11.25  commissioner may issue a temporary snowmobile use permit to a 
 11.26  person applying for a certificate of title for a new or used 
 11.27  snowmobile to allow that person to operate the snowmobile in 
 11.28  Minnesota pending completion of the titling and snowmobile 
 11.29  licensing process.  
 11.30     (b) The snowmobile use permit must be carried aboard the 
 11.31  snowmobile to allow immediate inspection.  The snowmobile use 
 11.32  permit must contain a description of the snowmobile, including 
 11.33  its trade name, if any, year, make, series or model, 
 11.34  identification number, and other information prescribed by the 
 11.35  commissioner.  A permit is valid only for the snowmobile for 
 11.36  which it is issued.  
 12.1      Subd. 2.  [DISTRIBUTION TO DEALERS.] The commissioner may 
 12.2   distribute permits in booklet form to licensed dealers.  If the 
 12.3   dealer issues a permit, the dealer shall submit a snowmobile use 
 12.4   permit information form to the commissioner.  The commissioner 
 12.5   shall provide information forms that require the name of the 
 12.6   person to whom the snowmobile use permit was issued, the 
 12.7   snowmobile description, dates of issue and expiration, and other 
 12.8   information prescribed by the commissioner. 
 12.9      Sec. 9.  [84.8235] [DUPLICATE CERTIFICATE.] 
 12.10     Subdivision 1.  [FORM AND ISSUANCE.] (a) The commissioner 
 12.11  may issue a duplicate certificate of title under this section.  
 12.12  The duplicate certificate of title must be a certified copy 
 12.13  plainly marked "duplicate" across its face and must contain the 
 12.14  legend:  "This duplicate certificate of title may be subject to 
 12.15  the rights of a person under the original certificate."  It must 
 12.16  be mailed to the first secured party named in it or, if none, to 
 12.17  the owner.  The commissioner shall indicate in the department 
 12.18  records that a duplicate has been issued.  
 12.19     (b) As a condition to issuing a duplicate certificate of 
 12.20  title, the commissioner may require a bond from the applicant in 
 12.21  the manner and form prescribed in section 84.8223, subdivision 
 12.22  4, paragraph (b).  
 12.23     Subd. 2.  [WAITING PERIOD TO ISSUE NEW CERTIFICATE.] The 
 12.24  commissioner may not issue a new certificate of title to a 
 12.25  person acquiring a snowmobile under an application made on a 
 12.26  duplicate certificate of title until at least 15 days after 
 12.27  receiving the application. 
 12.28     Subd. 3.  [DISAPPEARANCE OF ORIGINAL CERTIFICATE.] If a 
 12.29  certificate of title is lost, stolen, or destroyed, the owner or 
 12.30  legal representative of the owner named in the certificate may 
 12.31  obtain a duplicate by applying to the commissioner and 
 12.32  furnishing information the commissioner requires concerning the 
 12.33  original certificate and the circumstances of its loss or 
 12.34  destruction.  
 12.35     Subd. 4.  [MUTILATED OR ILLEGIBLE CERTIFICATE.] If an 
 12.36  original certificate of title is mutilated or rendered 
 13.1   illegible, the person in possession of the title shall return it 
 13.2   to the commissioner with the application for a duplicate. 
 13.3      Subd. 5.  [RECOVERY OF LOST OR STOLEN CERTIFICATE.] If a 
 13.4   lost or stolen certificate of title for which a duplicate has 
 13.5   been issued is recovered, the lost or stolen certificate of 
 13.6   title must be surrendered promptly to the commissioner for 
 13.7   cancellation. 
 13.8      Sec. 10.  [84.8238] [SUSPENSION OR REVOCATION OF 
 13.9   CERTIFICATE.] 
 13.10     Subdivision 1.  [SUSPENSION OR REVOCATION.] The 
 13.11  commissioner shall suspend or revoke a certificate of title upon 
 13.12  notice and reasonable opportunity to be heard if authorized by 
 13.13  law or if the commissioner finds that: 
 13.14     (1) the certificate of title was fraudulently procured or 
 13.15  erroneously issued; or 
 13.16     (2) the snowmobile has been scrapped, dismantled, or 
 13.17  destroyed. 
 13.18     Subd. 2.  [DUTIES OF OWNER.] If the commissioner suspends 
 13.19  or revokes a certificate of title, the owner or person in 
 13.20  possession of the certificate of title, immediately upon 
 13.21  receiving notice of the suspension or revocation, shall mail or 
 13.22  deliver the certificate to the commissioner. 
 13.23     Subd. 3.  [SEIZURE OR IMPOUNDMENT.] The commissioner may 
 13.24  seize and impound a certificate of title that has been suspended 
 13.25  or revoked. 
 13.26     Subd. 4.  [SUBSEQUENT GOOD FAITH PURCHASER.] Suspension or 
 13.27  revocation of a certificate of title does not affect the 
 13.28  validity of a subsequent transfer to a purchaser relying in good 
 13.29  faith on the assignment of a suspended or revoked title if the 
 13.30  certificate of title was not surrendered to or seized by the 
 13.31  commissioner under subdivisions 2 and 3, and the commissioner 
 13.32  shall issue a new certificate of title to an applicant who is a 
 13.33  good faith purchaser for value in those circumstances. 
 13.34     Sec. 11.  [84.8241] [RESPONSIBILITIES OF COMMISSIONER.] 
 13.35     The commissioner shall prescribe and provide suitable forms 
 13.36  of applications, certificates of title, notices of security 
 14.1   interests, and other notices and forms necessary to implement 
 14.2   sections 84.822 to 84.8279.  In addition, the commissioner may: 
 14.3      (1) make necessary investigations to procure information 
 14.4   required to implement sections 84.822 to 84.8279; 
 14.5      (2) assign a new identification number to a snowmobile if 
 14.6   the snowmobile does not have a number or the number is destroyed 
 14.7   or obliterated; or 
 14.8      (3) adopt and enforce rules necessary to implement sections 
 14.9   84.822 to 84.8279. 
 14.10     Sec. 12.  [84.8245] [PENALTIES.] 
 14.11     Subdivision 1.  [FELONY.] A person is guilty of a felony 
 14.12  and punishable by imprisonment for a term of not more than four 
 14.13  years, or payment of a fine of not more than $5,000, or both, if 
 14.14  the person with fraudulent intent:  
 14.15     (1) uses a false or fictitious name or address, makes a 
 14.16  material false statement, fails to disclose a security interest, 
 14.17  or conceals any other material fact in an application for a 
 14.18  certificate of title; or 
 14.19     (2) submits a false, forged, or fictitious document in 
 14.20  support of an application for a certificate of title.  
 14.21     Subd. 2.  [MISDEMEANOR.] A person is guilty of a 
 14.22  misdemeanor if that person: 
 14.23     (1) with fraudulent intent permits another to use or 
 14.24  possess a certificate of title who is not entitled to use or 
 14.25  possess the certificate of title; 
 14.26     (2) willfully fails to mail or deliver a certificate of 
 14.27  title to the commissioner or a deputy registrar within ten days 
 14.28  after the time required; 
 14.29     (3) willfully fails to deliver to a person acquiring a 
 14.30  snowmobile a certificate of title within ten days after the time 
 14.31  required; 
 14.32     (4) commits a fraud in an application for a certificate of 
 14.33  title; or 
 14.34     (5) fails to notify the commissioner of a fact as required 
 14.35  by law. 
 14.36     Sec. 13.  [84.8248] [TITLE FEES.] 
 15.1      Subdivision 1.  [TRANSACTION FEES.] The fee to be paid to 
 15.2   the commissioner: 
 15.3      (1) for issuing an original certificate of title, including 
 15.4   the concurrent notation of an assignment of the security 
 15.5   interest and its subsequent release or satisfaction, is $15; 
 15.6      (2) for each security interest when first noted upon a 
 15.7   certificate of title, including the concurrent notation of an 
 15.8   assignment of the security interest and its subsequent release 
 15.9   or satisfaction, is $10; 
 15.10     (3) for transferring the interest of an owner and issuing a 
 15.11  new certificate of title, is $10; 
 15.12     (4) for each assignment of a security interest when first 
 15.13  noted on a certificate of title, unless noted concurrently with 
 15.14  the security interest, is $1; and 
 15.15     (5) for issuing a duplicate certificate of title, is $4. 
 15.16     Subd. 2.  [FILING FEE.] In addition to other statutory fees 
 15.17  and taxes, a filing fee of $3.25 is imposed on every 
 15.18  application.  The filing fee must be shown as a separate item on 
 15.19  title renewal notices sent by the commissioner. 
 15.20     Subd. 3.  [DEPOSIT OF FEES.] Fees collected under this 
 15.21  section must be deposited in the state treasury and credited to 
 15.22  the snowmobile trails and enforcement account created in section 
 15.23  84.83, except a deputy registrar who originates an application 
 15.24  shall retain the filing fee under subdivision 2.  
 15.25     Sec. 14.  [84.8251] [INAPPLICABLE LIENS AND SECURITY 
 15.26  INTERESTS.] 
 15.27     The requirements of this chapter relating to security 
 15.28  interests and certificate of title do not apply to or affect: 
 15.29     (1) a lien given by statute or rule of law to a supplier of 
 15.30  services or materials for the snowmobile while the snowmobile is 
 15.31  in the possession of the lienholder; 
 15.32     (2) a lien given by statute to the United States, this 
 15.33  state, or a political subdivision of this state; or 
 15.34     (3) a security interest in a snowmobile created by a 
 15.35  manufacturer or dealer who holds the snowmobile for sale. 
 15.36     Sec. 15.  [84.8254] [SECURITY INTERESTS.] 
 16.1      Subdivision 1.  [VALIDITY.] Unless excepted by section 
 16.2   84.8251, a security interest in a titled snowmobile is not valid 
 16.3   against creditors of the owner or subsequent transferees or 
 16.4   secured parties of the snowmobile unless perfected as provided 
 16.5   in this chapter.  
 16.6      Subd. 2.  [PERFECTION.] A security interest is perfected by 
 16.7   the delivery to the commissioner of the existing certificate of 
 16.8   title, if any, or an application for a certificate of title, 
 16.9   containing the name and address of the secured party, the date 
 16.10  of the security agreement, and the required fee.  It is 
 16.11  perfected as of the time of its creation if the delivery is 
 16.12  completed within the following ten days.  In other instances it 
 16.13  is perfected as of the time of the delivery.  The method 
 16.14  provided in this section is exclusive for perfecting security 
 16.15  interests on snowmobiles on and after the effective date of this 
 16.16  section.  
 16.17     Sec. 16.  [84.8257] [OWNER-CREATED SECURITY INTEREST.] 
 16.18     Paragraphs (a) to (d) apply if an owner creates a security 
 16.19  interest in a titled snowmobile.  
 16.20     (a) The owner shall immediately execute the application in 
 16.21  the space provided on the certificate of title or on a separate 
 16.22  form prescribed by the commissioner, show the name and address 
 16.23  of the secured party on the certificate, and have the 
 16.24  certificate, application, and required fee delivered to the 
 16.25  secured party.  
 16.26     (b) The secured party shall immediately have the 
 16.27  certificate, application, and required fee mailed or delivered 
 16.28  to the commissioner.  
 16.29     (c) Upon request of the owner or subordinate secured party, 
 16.30  a secured party in possession of the certificate of title shall 
 16.31  either (1) mail or deliver the certificate to the subordinate 
 16.32  secured party for delivery to the commissioner, or (2) upon 
 16.33  receiving from the subordinate secured party the owner's 
 16.34  application and the required fee, mail or deliver them to the 
 16.35  commissioner with the certificate.  The delivery of the 
 16.36  certificate does not affect the rights of the first secured 
 17.1   party under the security agreement.  
 17.2      (d) Upon receiving the certificate of title, application, 
 17.3   and required fee, the commissioner shall either endorse on the 
 17.4   certificate or issue a new certificate containing the name and 
 17.5   address of the new secured party, and mail or deliver the 
 17.6   certificate to the first secured party named on it.  
 17.7      Sec. 17.  [84.8260] [LICENSED SNOWMOBILE PREVIOUSLY 
 17.8   PERFECTED.] 
 17.9      If a security interest in a previously licensed snowmobile 
 17.10  is perfected under other applicable Minnesota law before the 
 17.11  effective date of this section, the security interest continues 
 17.12  perfected:  
 17.13     (1) until its perfection lapses under the law under which 
 17.14  it was perfected or would lapse in the absence of a further 
 17.15  filing; or 
 17.16     (2) until a certificate of title for the snowmobile is 
 17.17  issued and the security interest is perfected under section 
 17.18  84.8254. 
 17.19     The assignment, release, or satisfaction of a security 
 17.20  interest in a previously licensed snowmobile is governed by the 
 17.21  laws under which it was perfected.  
 17.22     Sec. 18.  [84.8263] [SATISFACTION OF SECURITY INTEREST.] 
 17.23     Subdivision 1.  [RELEASE.] Upon the satisfaction of a 
 17.24  security interest in a snowmobile for which the certificate of 
 17.25  title is in the possession of the secured party, the secured 
 17.26  party, within 15 days, shall execute a release of the security 
 17.27  interest in the space provided on the certificate or as 
 17.28  prescribed by the commissioner, and mail or deliver the 
 17.29  certificate and release to the next secured party named or, if 
 17.30  none, to the owner or a person who delivers to the secured party 
 17.31  an authorization from the owner to receive the certificate. 
 17.32     Subd. 2.  [RELEASE OF SUBORDINATE SECURITY INTEREST.] Upon 
 17.33  the satisfaction of a security interest in a snowmobile for 
 17.34  which the certificate of title is in the possession of a prior 
 17.35  secured party, the secured party whose security interest is 
 17.36  satisfied shall execute a release in the form prescribed by the 
 18.1   commissioner and, within 15 days after satisfaction, deliver the 
 18.2   release to the owner or a person who delivers to the secured 
 18.3   party. 
 18.4      Sec. 19.  [84.8266] [DISCLOSURE OF SECURITY AGREEMENT.] 
 18.5      A secured party named in a certificate of title, upon 
 18.6   written request of the owner or other secured party named on the 
 18.7   certificate, must disclose pertinent information about the 
 18.8   security agreement and the indebtedness secured by it. 
 18.9      Sec. 20.  [84.8269] [EFFECT OF SUSPENSION OR REVOCATION ON 
 18.10  SECURITY INTEREST.] 
 18.11     Suspension or revocation of a certificate of title does 
 18.12  not, in itself, affect the validity of a security interest noted 
 18.13  on it. 
 18.14     Sec. 21.  [84.8272] [UNDISCLOSED SECURITY INTEREST.] 
 18.15     If the commissioner is not satisfied that there are no 
 18.16  undisclosed security interests created before the snowmobile is 
 18.17  initially titled, the commissioner may, in addition to the 
 18.18  options allowed under section 84.8223, subdivision 4, issue a 
 18.19  distinctive certificate of title for the snowmobile containing 
 18.20  the legend:  "This snowmobile may be subject to an undisclosed 
 18.21  lien," and any other information the commissioner prescribes.  
 18.22     Sec. 22.  [84.8275] [LIENS ATTACHING TO SNOWMOBILE.] 
 18.23     Subdivision 1.  [FILING REQUIRED.] A nonpossessory lien on 
 18.24  a titled snowmobile is not perfected unless a lien statement is 
 18.25  filed with the commissioner.  The commissioner shall note the 
 18.26  time and date of filing the lien statement. 
 18.27     Subd. 2.  [CONTENTS OF LIEN STATEMENT.] The lien statement 
 18.28  must include:  
 18.29     (1) the snowmobile owner's name and address; 
 18.30     (2) the statute under which the lien is taken; 
 18.31     (3) the name and address of the lienholder; and 
 18.32     (4) the title number of the snowmobile.  
 18.33     Sec. 23.  [84.8278] [STOLEN SNOWMOBILE.] 
 18.34     Subdivision 1.  [REPORT BY PEACE OFFICERS.] A peace officer 
 18.35  aware of a stolen or converted snowmobile shall immediately 
 18.36  furnish the commissioner with information concerning the theft 
 19.1   or conversion. 
 19.2      Subd. 2.  [RECORD.] The commissioner, upon receiving a 
 19.3   report of the theft or conversion of a snowmobile, shall record 
 19.4   the report information, including the make of the stolen or 
 19.5   converted snowmobile and its identification number, if any.  
 19.6      Subd. 3.  [LIST OF STOLEN SNOWMOBILES.] The commissioner 
 19.7   shall prepare a list of snowmobiles reported stolen and those 
 19.8   recovered as disclosed by the reports submitted.  The report may 
 19.9   be distributed as the commissioner deems advisable. 
 19.10     Subd. 4.  [NOTIFICATION BY OWNER.] If a stolen or converted 
 19.11  snowmobile is recovered, the owner shall immediately notify the 
 19.12  commissioner. 
 19.13     Sec. 24.  [84.8281] [SNOWMOBILE RETAIL INSTALLMENT SALE; 
 19.14  DOCUMENTATION FEE.] 
 19.15     The limitation in section 168.66, subdivision 9, regarding 
 19.16  a documentary fee or document administration fee applies to the 
 19.17  retail installment sale of a snowmobile as a limitation on the 
 19.18  charge for services actually rendered to, for, or on behalf of 
 19.19  the retail buyer in preparing, handling, and processing 
 19.20  documents relating to the snowmobile and the closing of the 
 19.21  retail sale. 
 19.22     Sec. 25.  Minnesota Statutes 1994, section 84.83, 
 19.23  subdivision 2, is amended to read: 
 19.24     Subd. 2.  [MONEY DEPOSITED IN THE ACCOUNT.] Fees from the 
 19.25  registration and titling of snowmobiles and the unrefunded 
 19.26  gasoline tax attributable to snowmobile use pursuant to section 
 19.27  296.16 shall be deposited in the state treasury and credited to 
 19.28  the snowmobile trails and enforcement account.  
 19.29     Sec. 26.  Minnesota Statutes 1994, section 84.84, is 
 19.30  amended to read: 
 19.31     84.84 [TRANSFER OR TERMINATION OF SNOWMOBILE OWNERSHIP.] 
 19.32     Within 15 days after the transfer of ownership, or any part 
 19.33  thereof, other than a security interest, or the destruction or 
 19.34  abandonment of any snowmobile, written notice thereof shall be 
 19.35  given to the commissioner in such form as the commissioner shall 
 19.36  prescribe.  Every owner or part owner of a snowmobile shall, 
 20.1   upon failure to give such notice, be subject to the penalties 
 20.2   imposed by Laws 1967, chapter 876 sections 84.81 to 84.90.  
 20.3      Sec. 27.  Minnesota Statutes 1994, section 84.85, is 
 20.4   amended to read: 
 20.5      84.85 [LICENSING BY POLITICAL SUBDIVISIONS.] 
 20.6      No political subdivision of this state shall require 
 20.7   licensing or, registration, or titling of snowmobiles covered by 
 20.8   the provisions of Laws 1967, chapter 876 sections 84.81 to 84.90.