Senate Counsel, Research and Fiscal Analysis

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Senate
State of Minnesota

S.F. No. 934 - Scrap Metal Processing; Dealers Record Information Requirement (First Engrossment)
Author: Prepared By: Senator Charles W. Wiger Bonnie Berezovsky, Senate Counsel (651/296-9191) Krista Boyd, Senate Fiscal Analyst (651/296-7681) March 20, 2013

Date:

Section 1 amends current law that allows the registrar to file charges with the county attorney against a licensed motor vehicle dealer for violating a provision of Minnesota Statutes, section 168.27 (motor vehicle dealers). The section provides instead that the county attorney or city attorney may file charges against a licensee who violates section 168.27 (motor vehicle dealers) or section 325E.21 (scrap metal dealers duties in the trade practices chapter). This section is effective August 1, 2013. Section 2 defines aged vehicle in the motor vehicle titles chapter, as a vehicle with model year 17 years old or older, excluding collector vehicles or restored pioneer vehicles. Section 3 allows a person or unit of government who has on its property an abandoned motor vehicle, or an owner who cannot transfer title to a vehicle because there is no available title certificate, to apply to law enforcement for an affidavit of salability. The affidavit allows the vehicle to be transferred to a dealer for recycling or dismantling. The section provides the information that must be included in the affidavit, and requires the law enforcement agency to execute a request for an affidavit of salability at the time of the request. Section 4 applies to a dealer who acquires an older model vehicle, a late-model or high-value vehicle, or an aged vehicle. A report concerning the vehicle must be made to the Department

of Public Safety within 15 days (current law specifies 30 days) after purchase of the vehicle. A dealer who accepts an affidavit of salability in lieu of a certificate of title must report to the department the day after the purchase. Any certificate of title must be retained by the dealer for three years before it is destroyed. Section 5 allows use of the automobile theft prevention account (funded by a surcharge on vehicle insurance policies) to reimburse an auto theft victim whose vehicle was sold to a dealer the fair market value of the vehicle. A dealer who forfeits a stolen vehicle may apply for reimbursement from the fund of the price the dealer paid for the vehicle. Section 6 includes salvage pools in the definition of scrap metal dealer in the trade practices chapter of statutes. Section 7 modifies record requirements applicable to scrap metal dealers. New requirements include permanent records, written in English, with ink or an electronic system. If the scrap metal is a motor vehicle, the scrap metal dealer must record the vehicle identification number and license plate number. Required records include a statement signed by a seller who is an individual, under penalty of perjury, attesting that, to the best of the sellers knowledge, the scrap or motor vehicle is not stolen, is free of encumbrances, and the seller has a right to sell it. Records are available for law enforcement inspection. Section 8 requires law enforcement agencies, within 24 hours of receiving a complaint about theft of scrap metal or motor vehicles, to enter the information in the criminal alert network. Section 9 prohibits a scrap metal dealer from processing, selling, or removing an item, upon notification by law enforcement when there is probable cause to believe the property is stolen or evidence of a crime. The investigative hold remains in force for 30 days (current law specifies 90 days) unless the order is renewed or canceled. Section 10 provides that the scrap metal dealers section of statute preempts local ordinances or rules. Section 11 creates a searchable electronic database steering committee to be formed by stakeholders to recommend to the Commissioner of Public Safety by January 15, 2014, the creation of a searchable electronic database for scrap metal and motor vehicle purchases relating to scrap metal dealers. BB/KB:rer