Laws of Minnesota 1993 

                         CHAPTER 93-H.F.No. 51 
           An act relating to motor vehicles; requiring junking 
          certificates of title; regulating title branding for 
          damaged vehicles; amending Minnesota Statutes 1992, 
          sections 168A.01, subdivisions 17a, 17b, and by adding 
          a subdivision; 168A.04, subdivisions 1 and 4; 168A.05, 
          subdivisions 3 and 5; 168A.15; 168A.151, subdivisions 
          1, 4, and by adding a subdivision; 168A.152, by adding 
          a subdivision; 325F.6641, subdivision 1; 325F.6642, 
          subdivisions 1, 2, 3, 5, and 6; and 325F.6644; 
          repealing Minnesota Statutes 1992, section 168A.151, 
          subdivisions 2, 3, and 5. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1992, section 168A.01, is 
amended by adding a subdivision to read: 
    Subd. 8b.  [JUNKING CERTIFICATE.] "Junking certificate" 
means a receipt issued by the department's driver and vehicle 
services division when a vehicle is declared unrepairable under 
section 168A.151. 
    Sec. 2.  Minnesota Statutes 1992, section 168A.01, 
subdivision 17a, is amended to read: 
    Subd. 17a.  [SALVAGE TITLE.] "Salvage title" means a 
certificate of title that is issued to a vehicle graded and 
stamped as declared a "class C" repairable total loss vehicle 
under section 168A.151 and includes an existing certificate of 
title that has been stamped with the legend "salvage certificate 
of title" in accordance with section 168A.151. 
    Sec. 3.  Minnesota Statutes 1992, section 168A.01, 
subdivision 17b, is amended to read: 
    Subd. 17b.  [SALVAGE VEHICLE.] "Salvage vehicle" means a 
vehicle that has been graded and stamped under section 
168A.151 a salvage certificate of title. 
    Sec. 4.  Minnesota Statutes 1992, section 168A.04, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CONTENTS.] The application for the first 
certificate of title of a vehicle in this state shall be made by 
the owner to the department on the form prescribed by the 
department and shall contain: 
    (1) the first, middle, and last names, the dates of birth, 
and addresses of all owners who are natural persons, the full 
names and addresses of all other owners; 
    (2) a description of the vehicle including, so far as the 
following data exists, its make, model, year, identifying 
number, type of body, and whether new or used; 
    (3) the date of purchase by applicant, the name and address 
of the person from whom the vehicle was acquired, the names and 
addresses of any secured parties in the order of their priority, 
and the dates of their respective security agreements; 
    (4) with respect to motor vehicles subject to the 
provisions of section 325E.15, the true cumulative mileage 
registered on the odometer or that the actual mileage is unknown 
if the odometer reading is known by the owner to be different 
from the true mileage; 
    (5) with respect to vehicles subject to sections section 
325F.6641 and 325F.6642, whether the vehicle sustained damage by 
collision or other occurrence which exceeded 70 percent of the 
actual cash value; and 
    (6) any further information the department reasonably 
requires to identify the vehicle and to enable it to determine 
whether the owner is entitled to a certificate of title, and the 
existence or nonexistence and priority of any security interest 
in the vehicle. 
    Sec. 5.  Minnesota Statutes 1992, section 168A.04, 
subdivision 4, is amended to read: 
    Subd. 4.  [VEHICLE LAST REGISTERED OUT OF STATE.] If the 
application refers to a vehicle last previously registered in 
another state or country, the application shall contain or be 
accompanied by: 
    (1) any certificate of title issued by the other state or 
country; 
    (2) any other information and documents the department 
reasonably requires to establish the ownership of the vehicle 
and the existence or nonexistence and priority of any security 
interest in it; 
    (3) the certificate of a person authorized by the 
department that the identifying number of the vehicle has been 
inspected and found to conform to the description given in the 
application, or any other proof of the identity of the vehicle 
the department reasonably requires; and 
    (4) with respect to vehicles subject to sections section 
325F.6641 and 325F.6642, whether the vehicle sustained damage by 
collision or other occurrence which exceeded 70 percent of 
actual cash value. 
    Sec. 6.  Minnesota Statutes 1992, section 168A.05, 
subdivision 3, is amended to read: 
    Subd. 3.  [CONTENT OF CERTIFICATE.] Each certificate of 
title issued by the department shall contain: 
    (1) the date issued; 
    (2) the first, middle, and last names, the dates of birth, 
and addresses of all owners who are natural persons, the full 
names and addresses of all other owners; 
    (3) the names and addresses of any secured parties in the 
order of priority as shown on the application, or if the 
application is based on a certificate of title, as shown on the 
certificate, or as otherwise determined by the department; 
    (4) the title number assigned to the vehicle; 
    (5) a description of the vehicle including, so far as the 
following data exists, its make, model, year, identifying 
number, type of body, whether new or used, and if a new vehicle, 
the date of the first sale of the vehicle for use; 
    (6) with respect to motor vehicles subject to the 
provisions of section 325E.15, the true cumulative mileage 
registered on the odometer or that the actual mileage is unknown 
if the odometer reading is known by the owner to be different 
from the true mileage; 
    (7) with respect to vehicles subject to sections 325F.6641 
and 325F.6642, the appropriate term "flood damaged," "rebuilt," 
"prior salvage," or "reconstructed"; and 
    (8) any other data the department prescribes. 
    Sec. 7.  Minnesota Statutes 1992, section 168A.05, 
subdivision 5, is amended to read: 
    Subd. 5.  [ASSIGNMENT AND WARRANTY OF TITLE FORMS.] The 
certificate of title shall contain forms for assignment and 
warranty of title by the owner, and for assignment and warranty 
of title by a dealer, and shall contain forms for applications 
for a certificate of title by a transferee, and the naming of a 
secured party, and shall include language necessary to implement 
sections section 325F.6641 and 325F.6642.  
    Sec. 8.  Minnesota Statutes 1992, section 168A.15, is 
amended to read: 
    168A.15 [RECONSTRUCTED, SCRAPPED, DISMANTLED, OR DESTROYED 
VEHICLES.] 
    Subd. 2.  [REQUIREMENTS TO OBTAIN CERTIFICATE FOR 
RECONSTRUCTED VEHICLE.] If a vehicle is altered so as to become 
a reconstructed vehicle, the owner shall apply for a certificate 
of title to the reconstructed vehicle in the manner provided in 
section 168A.04, and any existing certificate of title to the 
vehicle shall be surrendered for cancellation.  
    Subd. 3.  [SCRAPPED, DISMANTLED, OR DESTROYED VEHICLE.] An 
owner who scraps, dismantles, or destroys a vehicle, or a person 
who purchases a vehicle as scrap or to be dismantled or 
destroyed, shall immediately have the certificate of title 
mailed or delivered to the department for cancellation.  A 
certificate of title for the vehicle shall not again be issued. 
    Sec. 9.  Minnesota Statutes 1992, section 168A.151, 
subdivision 1, is amended to read: 
    Subdivision 1.  [INSURERS SALVAGE TITLES.] When an insurer, 
licensed to conduct business in Minnesota, acquires ownership of 
a late model or high value vehicle through payment of damages, 
the insurer shall stamp and grade the assigned immediately apply 
for a salvage certificate of title as required under subdivision 
3 and comply with all requirements of this chapter. or shall 
stamp the existing certificate of title with the legend "SALVAGE 
CERTIFICATE OF TITLE" in a manner prescribed by the department. 
Within 48 hours of taking possession of a vehicle through 
payment of damages, an insurer must notify the department in a 
manner prescribed by the department. 
    Any person who acquires a damaged motor vehicle with an 
out-of-state title and the cost of repairs exceeds the value of 
the damaged vehicle or a motor vehicle with an out-of-state 
salvage title or certificate, as proof of ownership, shall 
immediately apply for a salvage certificate of title.  A 
self-insured owner of a late model or high value vehicle who 
sustains damage by collision or other occurrence which exceeds 
70 percent of its actual cash value shall immediately apply for 
a salvage certificate of title. 
    Sec. 10.  Minnesota Statutes 1992, section 168A.151, 
subdivision 4, is amended to read: 
    Subd. 4.  [OTHER OWNERS JUNKING CERTIFICATE REQUIRED.] When 
a person other than a dealer or insurer acquires ownership of a 
late model or high value vehicle that is a "class C" an 
unrepairable total loss vehicle, the person shall surrender the 
assigned certificate of title to the department and apply for 
a salvage junking certificate of title. 
    Sec. 11.  Minnesota Statutes 1992, section 168A.151, is 
amended by adding a subdivision to read: 
    Subd. 6.  [AUTHORITY UNDER JUNKING CERTIFICATE.] A junking 
certificate authorizes the holder only to possess and transport 
the vehicle, except that a salvage pool or insurance company, or 
its agent, may sell an unrepairable total loss vehicle with a 
junking certificate to a licensed used parts dealer. 
    Sec. 12.  Minnesota Statutes 1992, section 168A.152, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [DUTIES OF SALVAGE VEHICLE PURCHASER.] No 
salvage vehicle purchaser shall possess or retain a salvage 
vehicle which does not have a salvage certificate of title.  The 
salvage vehicle purchaser shall display the salvage certificate 
of title upon the request of any appropriate public authority. 
    Sec. 13.  Minnesota Statutes 1992, section 325F.6641, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DAMAGE.] (a) If a motor vehicle has 
sustained damage by collision or other occurrence which exceeds 
70 percent of its actual cash value so that the vehicle becomes 
a class C total loss vehicle immediately prior to sustaining 
damage, the seller must disclose that fact to the buyer, if the 
seller has actual knowledge of the damage.  The amount of damage 
is determined by the retail cost of repairing the vehicle based 
on a complete written retail repair estimate or invoice. 
    (b) The disclosure required under this subdivision must be 
made in writing on the application for title and registration or 
other transfer document, in a manner prescribed by the registrar 
of motor vehicles.  The registrar shall revise the certificate 
of title form, including the assignment by seller (transferor) 
and reassignment by licensed dealer sections of the form, the 
separate application for title forms, and other transfer 
documents to accommodate this disclosure.  If the seller is a 
motor vehicle dealer licensed pursuant to section 168.27, the 
disclosure required by this section must be made orally by the 
dealer to the prospective buyer in the course of the sales 
presentation.  
    (c) Upon transfer and application for title to a vehicle 
covered by this subdivision, the registrar shall record the term 
"rebuilt" on the first Minnesota certificate of title and all 
subsequent Minnesota certificates of title used for that vehicle.
    Sec. 14.  Minnesota Statutes 1992, section 325F.6642, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FLOOD DAMAGE.] If the application for 
title and registration indicates that the vehicle has been 
classified as a class B or C total loss vehicle because of water 
or flood damage, the registrar of motor vehicles shall record 
the term "flood damaged" on the certificate of title and all 
subsequent certificates of title issued for that vehicle.  
    Sec. 15.  Minnesota Statutes 1992, section 325F.6642, 
subdivision 2, is amended to read: 
    Subd. 2.  [CLASS C TOTAL LOSS VEHICLES.] Upon transfer and 
application for title to all class C total loss vehicles, the 
registrar of motor vehicles shall record the term "rebuilt prior 
salvage" on the first Minnesota certificate of title and all 
subsequent Minnesota certificates of title used for that vehicle.
    Sec. 16.  Minnesota Statutes 1992, section 325F.6642, 
subdivision 3, is amended to read: 
    Subd. 3.  [OUT-OF-STATE VEHICLES.] (a) Upon transfer and 
application for title of all repaired vehicles with out-of-state 
titles that bear the term "damaged," "salvage," "rebuilt," 
"reconditioned," or any similar term, the registrar of motor 
vehicles shall record the term "rebuilt prior salvage" on the 
first Minnesota certificate of title and all subsequent 
Minnesota certificates of title used for that vehicle.  
    (b) The registrar shall mark "rebuilt prior salvage" on the 
first Minnesota certificate of title and all subsequent 
certificates of title issued for any vehicle which came into the 
state unrepaired and for which a salvage certificate of title 
was issued unless the person applying for the Minnesota title 
offers proof satisfactory to the registrar that the vehicle did 
not sustain damage equivalent to the 70 percent standard set 
forth in this section.  The proof shall include photographs of 
the vehicle and either an insurance adjuster's written report or 
a written repair estimate which details the parts and labor 
required to repair the vehicle.  The photographs and other 
documents submitted as proof under this subdivision must be 
filed and retained by the registrar so as to permit verification 
of the proof offered. 
    (c) For vehicles with out-of-state titles which bear the 
term "flood damaged," the registrar of motor vehicles shall 
record the term "flood damaged" on the first Minnesota 
certificate of title and all subsequent Minnesota certificates 
of title issued for that vehicle.  
    (d) The registrar shall mark "prior salvage" on the first 
Minnesota certificate of title and all subsequent certificates 
of title issued for any vehicle that had a salvage certificate 
of title issued at any time in the vehicle's history by any 
other jurisdiction. 
    Sec. 17.  Minnesota Statutes 1992, section 325F.6642, 
subdivision 5, is amended to read: 
    Subd. 5.  [MANNER OF BRANDING.] The designation of "flood 
damaged," "rebuilt," "prior salvage," or "reconstructed" on a 
certificate of title shall be made by the registrar of motor 
vehicles in a clear and conspicuous manner, in a color different 
from all other writing on the certificate of title.  
    Sec. 18.  Minnesota Statutes 1992, section 325F.6642, 
subdivision 6, is amended to read: 
    Subd. 6.  [CLASS C TOTAL LOSS VEHICLE; DEFINITION.] For the 
purposes of this section, a class C "total loss vehicle" means a 
vehicle, damaged by collision or other occurrence, for which a 
salvage certificate of title has been issued and vehicles with 
damage of at least 70 percent of the vehicle's actual cash value 
immediately prior to sustaining the damage based on a written 
retail repair estimate or invoice, as determined by an insurer 
or dealer pursuant to section 168A.151 or by comparing an 
insurer's written retail repair estimate of damage or actual 
loss payout to the average trade-in value of the vehicle 
according to the National Automobile Dealers Association's 
Official Used Car Guide or other similar publication approved by 
the registrar.  Total loss vehicle does not include a stolen and 
recovered vehicle verified by the insurer who declared the 
vehicle to be a total loss vehicle unless there is more than 
minimal damage to the vehicle as determined by the registrar.  
    Sec. 19.  Minnesota Statutes 1992, section 325F.6644, is 
amended to read: 
    325F.6644 [APPLICATION.] 
    Sections 325F.6641 and 325F.6642 do not apply to vehicles 
that are six years old or older as calculated from the first day 
of January of the designated model year or to commercial motor 
vehicles with a gross vehicle rating of 26,000 16,000 pounds or 
more or to motorcycles.  
    Sec. 20.  [REPEALER.] 
    Minnesota Statutes 1992, section 168A.151, subdivisions 2, 
3, and 5, are repealed. 
    Sec. 21.  [EFFECTIVE DATE.] 
    This act is effective 30 days after final enactment. 
    Presented to the governor May 3, 1993 
    Signed by the governor May 5, 1993, 6:13 p.m.