1.1                          A bill for an act 
  1.2             relating to motor vehicles; modifying vehicle 
  1.3             certificate of title provisions affecting dealers; 
  1.4             amending Minnesota Statutes 2002, sections 168A.02, 
  1.5             subdivision 2; 168A.11, subdivision 1, by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 168A.02, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [NO VEHICLE REGISTRATION WITHOUT TITLE.] The 
  1.11  department shall not register or renew the registration of a 
  1.12  vehicle for which a certificate of title is required unless a 
  1.13  certificate of title has been issued to the owner ~~or~~, an 
  1.14  application therefor has been delivered to and approved by the 
  1.15  department, or the vehicle has a Minnesota certificate of title 
  1.16  and is being held for resale by a dealer under section 168A.11. 
  1.17     Sec. 2.  Minnesota Statutes 2002, section 168A.11, 
  1.18  subdivision 1, is amended to read: 
  1.19     Subdivision 1.  [APPLICATION UPON SUBSEQUENT TRANSFER.] (a) 
  1.20  If a dealer buys a vehicle and holds it for resale and procures 
  1.21  the certificate of title from the owner, and complies with 
  1.22  subdivision 2 hereof, the dealer need not apply for a 
  1.23  certificate of title, but upon transferring the vehicle to 
  1.24  another person other than by the creation of a security interest 
  1.25  shall promptly execute the assignment and warranty of title by a 
  1.26  dealer, showing the names and addresses of the transferee and of 
  2.1   any secured party holding a security interest created or 
  2.2   reserved at the time of the resale, and the date of the security 
  2.3   agreement in the spaces provided therefor on the certificate or 
  2.4   secure reassignment.  
  2.5      (b) If a dealer elects to apply for a certificate of title 
  2.6   on a vehicle held for resale, the dealer need not register the 
  2.7   vehicle but shall pay one month's registration tax.  If a dealer 
  2.8   elects to apply for a certificate of title on a vehicle held for 
  2.9   resale, the department shall not place any legend on the title 
  2.10  that no motor vehicle sales tax was paid by the dealer. 
  2.11     (c) With respect to motor vehicles subject to the 
  2.12  provisions of section 325E.15, the dealer shall also, in the 
  2.13  space provided therefor on the certificate or secure 
  2.14  reassignment, state the true cumulative mileage registered on 
  2.15  the odometer or that the exact mileage is unknown if the 
  2.16  odometer reading is known by the transferor to be different from 
  2.17  the true mileage.  
  2.18     ~~(c)~~ (d) The transferee shall complete the application for 
  2.19  title section on the certificate of title or separate title 
  2.20  application form prescribed by the department.  The dealer shall 
  2.21  mail or deliver the certificate to the registrar or deputy 
  2.22  registrar with the transferee's application for a new 
  2.23  certificate and appropriate taxes and fees, within ten business 
  2.24  days. 
  2.25     Sec. 3.  Minnesota Statutes 2002, section 168A.11, is 
  2.26  amended by adding a subdivision to read: 
  2.27     Subd. 4.  [CENTRALIZED RECORD KEEPING.] Two or more motor 
  2.28  vehicle dealers under common management or control may designate 
  2.29  to the department in writing a single location for maintaining 
  2.30  some or all of the records required by this section.  The 
  2.31  records must be open to inspection by a representative of the 
  2.32  department or a peace officer during reasonable business hours.  
  2.33  The location must be at the established place of business of one 
  2.34  of the affiliated dealers or at a location within Minnesota not 
  2.35  further than 25 miles from the established place of business of 
  2.36  one of the affiliated dealers.