1.1 	A bill for an act
1.2 	relating to motor vehicles; excluding cost of air bag
1.3 	repair or replacement and related repair costs from
1.4 	motor vehicle damage calculations for salvage title
1.5 	and consumer disclosure purposes; amending Minnesota
1.6 	Statutes 2004, sections 168A.04, subdivision 4;
1.7 	168A.151, subdivision 1; 325F.6641, subdivisions 1, 2.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 168A.04,
1.10 	subdivision 4, is amended to read:
1.11 		Subd. 4.Vehicle last registered out of state.  If the
1.12 	application refers to a vehicle last previously registered in
1.13 	another state or country, the application shall contain or be
1.14 	accompanied by:
1.15 	(1) any certificate of title issued by the other state or
1.16 	country;
1.17 	(2) any other information and documents the department
1.18 	reasonably requires to establish the ownership of the vehicle
1.19 	and the existence or nonexistence and priority of any security
1.20 	interest in it;
1.21 	(3) the certificate of a person authorized by the
1.22 	department that the identifying number of the vehicle has been
1.23 	inspected and found to conform to the description given in the
1.24 	application, or any other proof of the identity of the vehicle
1.25 	the department reasonably requires; and
1.26 	(4) with respect to vehicles subject to section 325F.6641,
2.1 	whether the vehicle sustained damage by collision or other
2.2 	occurrence which exceeded 70 percent of actual cash
2.3 	value. Damage, for the purpose of this calculation, does not
2.4 	include the actual cost incurred to repair, replace, or
2.5 	reinstall inflatable safety restraints and other vehicle
2.6 	components that must be replaced due to the deployment of the
2.7 	inflatable safety restraints.

2.8 	Sec. 2. Minnesota Statutes 2004, section 168A.151,
2.9 	subdivision 1, is amended to read:
2.10 		Subdivision 1.Salvage titles.  (a) When an insurer,
2.11 	licensed to conduct business in Minnesota, acquires ownership of
2.12 	a late-model or high-value vehicle through payment of damages,
2.13 	the insurer shall immediately apply for a salvage certificate of
2.14 	title or shall stamp the existing certificate of title with the
2.15 	legend "SALVAGE CERTIFICATE OF TITLE" in a manner prescribed by
2.16 	the department.  Within 48 hours of taking possession of a
2.17 	vehicle through payment of damages, an insurer must notify the
2.18 	department in a manner prescribed by the department.
2.19 	(b) Any person who acquires a damaged motor vehicle with an
2.20 	out-of-state title and the cost of repairs exceeds the value of
2.21 	the damaged vehicle or a motor vehicle with an out-of-state
2.22 	salvage title or certificate, as proof of ownership, shall
2.23 	immediately apply for a salvage certificate of title.  A
2.24 	self-insured owner of a late-model or high-value vehicle who
2.25 	sustains damage by collision or other occurrence which exceeds
2.26 	70 percent of its actual cash value shall immediately apply for
2.27 	a salvage certificate of title. Damage, for the purpose of this
2.28 	calculation, does not include the actual cost incurred to
2.29 	repair, replace, or reinstall inflatable safety restraints and
2.30 	other vehicle components that must be replaced due to the
2.31 	deployment of the inflatable safety restraints.

2.32 	Sec. 3. Minnesota Statutes 2004, section 325F.6641,
2.33 	subdivision 1, is amended to read:
2.34 		Subdivision 1.Damage.  (a) If a motor vehicle has
2.35 	sustained damage by collision or other occurrence which exceeds
2.36 	70 percent of its actual cash value immediately prior to
3.1 	sustaining damage, the seller must disclose that fact to the
3.2 	buyer, if the seller has actual knowledge of the damage.  The
3.3 	amount of damage is determined by the retail cost of repairing
3.4 	the vehicle based on a complete written retail repair estimate
3.5 	or invoice, exclusive of the actual cost incurred to repair,
3.6 	replace, or reinstall inflatable safety restraints and other
3.7 	vehicle components that must be replaced due to the deployment
3.8 	of the inflatable safety restraints.
3.9 	(b) The disclosure required under this subdivision must be
3.10 	made in writing on the application for title and registration or
3.11 	other transfer document, in a manner prescribed by the registrar
3.12 	of motor vehicles.  The registrar shall revise the certificate
3.13 	of title form, including the assignment by seller (transferor)
3.14 	and reassignment by licensed dealer sections of the form, the
3.15 	separate application for title forms, and other transfer
3.16 	documents to accommodate this disclosure.  If the seller is a
3.17 	motor vehicle dealer licensed pursuant to section 168.27, the
3.18 	disclosure required by this section must be made orally by the
3.19 	dealer to the prospective buyer in the course of the sales
3.20 	presentation.
3.21 	(c) Upon transfer and application for title to a vehicle
3.22 	covered by this subdivision, the registrar shall record the term
3.23 	"rebuilt" on the first Minnesota certificate of title and all
3.24 	subsequent Minnesota certificates of title used for that vehicle.

3.25 	Sec. 4. Minnesota Statutes 2004, section 325F.6641,
3.26 	subdivision 2, is amended to read:
3.27 		Subd. 2.Form of disclosure.  The disclosure required in
3.28 	this section must be made in substantially the following form:
3.29 	"To the best of my knowledge, this vehicle has ..... has not
3.30 	..... sustained damage, exclusive of any costs to repair,
3.31 	replace, or reinstall air bags and other components that were
3.32 	replaced due to deployment of air bags,in excess of 70 percent
3.33 	actual cash value."