.................... moves to amend H.F. No. 1214 as follows:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 2012, section 168.27, subdivision 1a, is amended to read:
Subd. 1a. Dealer license categories.
(a) No person shall engage in the business of
selling new motor vehicles or shall offer to sell, solicit, deliver, or advertise the sale of
new motor vehicles without first acquiring a new motor vehicle dealer license.
(b) No person shall engage in the business of selling used motor vehicles or shall
offer to sell, solicit, deliver, or advertise the sale of used motor vehicles without first
acquiring a used motor vehicle dealer license.
(c) No person shall engage in the business of buying or otherwise acquiring vehicles
other than hulks
; or offering to buy or otherwise acquire, or soliciting or advertising the
buying or acquiring of, vehicles
other than hulks
for processing and selling the metal for
remelting without first acquiring a scrap metal processor license.
For purposes of this paragraph, a "hulk" is a motor vehicle that is incapable, under
1.15 its own power, of moving and is incapable of transporting persons or property and has had
1.16 valuable used parts removed. Its sole value is its metallic content.
(d) No person shall be primarily engaged in the business of buying or otherwise
acquiring vehicles for the purpose of dismantling the vehicles and selling used parts and
the remaining scrap metals without first acquiring a used vehicle parts dealer license.
(e) No person shall engage in the business of storing and displaying, offering to store
or display, or soliciting or advertising the storing or displaying, for sale, of damaged
or junked vehicles as an agent or escrow agent of an insurance company without first
acquiring a vehicle salvage pool license.
(f) No person shall engage in the business of leasing motor vehicles or shall offer to
lease, solicit or advertise to lease motor vehicles without first acquiring a motor vehicle
(g) No person shall engage in the business of wholesaling motor vehicles to dealers
for resale or shall offer to sell, solicit or advertise the sale of motor vehicles to dealers for
resale without first acquiring a motor vehicle wholesaler license.
(h) No person shall engage in the business of auctioning motor vehicles for more
than one owner at an auction or shall offer to sell, solicit or advertise the sale of motor
vehicles at auction without first acquiring a motor vehicle auctioneer license.
(i) No person shall engage in the business of brokering motor vehicles without first
acquiring a motor vehicle broker's license.
2.9EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 2. Minnesota Statutes 2012, section 168.27, subdivision 19a, is amended to read:
Subd. 19a. Injunction.
The commissioner or a county attorney may institute a civil
action in the name of the state in district court for an injunction prohibiting a violation of
this section and for civil penalties not to exceed $1,000 for each violation of subdivision
2.14 1a, clause (d) or (e),
2, 3, 3a,
4, 5a, 6, 7, or 7a, or section 325E.21
. The court, upon
proper proof that the defendant has engaged in a practice prohibited by this section, may
enjoin the future commission of that practice and award civil penalties for violations of
subdivision 1a, clause (d) or (e),
2, 3, 3a,
4, 5a, 6, 7, or 7a, or section 325E.21
. It is not a
defense to an action that the state may have adequate remedies at law. Service of process
must be as in any other civil suit, except that where a defendant in the action is a natural
person or firm residing outside the state, or is a foreign corporation, service of process
may also be made by personal service outside the state; in the manner provided by section
; or as the court may direct. Process is valid if it satisfies the requirements of due
process of law, whether or not the defendant is doing business in Minnesota regularly or
habitually. Nothing in this subdivision limits the rights or remedies otherwise available to
persons under common law or other statutes of this state.
2.26EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 3. Minnesota Statutes 2012, section 168.27, subdivision 23, is amended to read:
Registrar may file charges County or city attorney to prosecute.
registrar or the registrar's appointed inspectors may file charges with the city or
attorney may file charges
against any licensee who violates any of the provisions of this
section or section 325E.21
, including but not limited to, the grounds for suspension or
revocation set out in subdivision 12.
2.33EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 4. Minnesota Statutes 2012, section 168A.153, subdivision 3, is amended to read:
Subd. 3. Notification on vehicle to be dismantled or destroyed; service fee.
Within the time frames prescribed in subdivisions 1 and 2 of acquiring a vehicle titled and
3.4 registered in Minnesota, a dealer shall notify the registrar that the dealership purchased the
3.5 vehicle to be dismantled or destroyed. The dealer must maintain the certificate of title on
3.6the vehicle for three years before destroying the title as prescribed by the commissioner.
The notification under subdivision 1
must be made electronically as prescribed by the
registrar. The dealer may contract this service to a deputy registrar and the registrar may
charge a fee not to exceed $7 per transaction to provide this service.
3.10EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 5. Minnesota Statutes 2012, section 325E.21, subdivision 1, is amended to read:
Subdivision 1. Definitions.
(a) For purposes of this section, the terms defined in
this subdivision have the meanings given.
(b) "Law enforcement agency" or "agency" means a duly authorized municipal,
county, state, or federal law enforcement agency.
(c) "Person" means an individual, partnership, limited partnership, limited liability
company, corporation, or other entity.
(d) "Scrap metal" means:
(1) wire and cable commonly and customarily used by communication and electric
(2) copper, aluminum, or any other metal purchased primarily for its reuse or
recycling value as raw metal, including metal that is combined with other materials
at the time of purchase.
(e) "Scrap metal dealer" or "dealer" means:
3.25 (1) any of the following licensees under section 168.27: scrap metal processor, used
3.26vehicle parts dealer, and vehicle salvage pool;
3.27 (2) a used motor vehicle dealer licensee under section 168.27 who engages in the
3.28business of buying or otherwise acquiring vehicles for dismantling and selling used parts
3.29and remaining scrap materials; and
a person engaged in the business of buying or selling scrap metal, or both
, but does.
3.31The terms do
not include a person engaged exclusively in the business of buying or selling
or motor vehicles,
used motor vehicles
or motor vehicle parts for resale and in
3.33whole other than as specified in clause (2)
, paper or wood products, rags or furniture, or
4.1(f) "Interchange file specification format" means the most recent version of the
4.2Minneapolis automated property system interchange file specification format.
4.3(g) "Billable transaction fee" means the fee assessed by the automated property
4.4system to the jurisdiction in which a dealer is located.
4.5 (h) "Hold period" means a period of consecutive business days, excluding Saturdays,
4.6Sundays, and holidays, during which time a motor vehicle may not be scrapped, resold,
4.7dismantled, or destroyed.
4.8 (i) "Motor vehicle" has the meaning given in section 169.011, subdivision 42.
4.9 (j) "Proof of identification" means a valid driver's license, valid Minnesota
4.10identification card, or valid driver's license or identification card issued by another state
4.11or province of Canada, if the document includes the person's photograph, full name,
4.12birth date, and signature.
4.13EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 6. Minnesota Statutes 2012, section 325E.21, subdivision 1a, is amended to read:
Subd. 1a. Purchase or acquisition record required.
(a) Every scrap metal dealer,
including an agent, employee, or representative of the dealer, shall keep a written record at
the time of each purchase or acquisition of scrap metal. The record must include:
(1) an accurate account or description, including the weight if customarily purchased
by weight, of the scrap metal purchased or acquired;
(2) the date, time, and place of the receipt of the scrap metal purchased or acquired;
(3) the name and address of the person selling or delivering the scrap metal;
(4) the number of the check or electronic transfer used to purchase the scrap metal;
4.23(5) if the scrap metal purchased or acquired is a motor vehicle under subdivision 11,
4.24the dates of the hold period and the payment method under subdivision 3, paragraph (b);
the number of the seller's or deliverer's driver's license, Minnesota
identification card number, or other identification document number of an identification
document issued for identification purposes by any state, federal, or foreign government if
the document includes the person's photograph, full name, birth date, and signature;
4.29 (6) (7)
the license plate number and description of the vehicle used by the person
when delivering the scrap metal, and any identifying marks on the vehicle, such as a
business name, decals, or markings, if applicable; and
4.32 (8) a statement signed by the seller, under penalty of perjury as provided in section
4.33609.48, attesting that the scrap metal is not stolen and is free of any liens or encumbrances
4.34and the seller has the right to sell it
(b) The record, as well as the scrap metal purchased or received, shall at all
reasonable times be open to the inspection of any law enforcement agency.
(c) No record is required for property purchased from merchants, manufacturers or
wholesale dealers, having an established place of business, or of any goods purchased
at open sale from any bankrupt stock, but a bill of sale or other evidence of open or
legitimate purchase of the property shall be obtained and kept by the person, which must
be shown upon demand to any law enforcement agency.
(d) Except as otherwise provided in this section, a scrap metal dealer or the dealer's
agent, employee, or representative may not disclose personal information concerning a
customer without the customer's consent unless the disclosure is made in response to a
request from a law enforcement agency. A scrap metal dealer must implement reasonable
safeguards to protect the security of the personal information and prevent unauthorized
access to or disclosure of the information. For purposes of this paragraph, "personal
information" is any individually identifiable information gathered in connection with a
record under paragraph (a).
5.16(e) This subdivision expires January 1, 2015.
5.17EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 7. Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
5.20 Subd. 1b. Purchase or acquisition record required. (a) Every scrap metal dealer,
5.21including an agent, employee, or representative of the dealer, shall create a permanent
5.22record written in English, using ink or an electronic record program at the time of each
5.23purchase or acquisition of scrap metal. The record must include:
5.24(1) a complete and accurate account or description, including the weight if
5.25customarily purchased by weight, of the scrap metal purchased or acquired;
5.26(2) if the scrap metal purchased or acquired is a motor vehicle, the vehicle
5.27identification number; license plate number, if any, including state of issue and month and
5.28year of validation; and vehicle make, model, and color;
5.29(3) the date, time, and place of the receipt of the scrap metal purchased or acquired
5.30and a unique transaction identifier;
5.31(4) the full name, residence, address, primary telephone number, and an accurate
5.32description, including sex, height, weight, eye color, hair color, and if known, race;
5.33(5) the amount paid and the number of the check or electronic transfer used to
5.34purchase the scrap metal;
6.1 (6) if the scrap metal purchased or acquired is a motor vehicle under subdivision 11,
6.2the dates of the hold period and the payment method under subdivision 3, paragraph (b);
6.3(7) the identification number and state of issue of the seller's or deliverer's proof of
6.5(8) the license plate number and description of the vehicle used by the person when
6.6delivering the scrap metal, including the vehicle make and model, and any identifying
6.7marks on the vehicle, such as a business name, decals, or markings, if applicable;
6.8 (9) a digital photograph or single frame image from a video recording that clearly
6.9and accurately depicts the scrap metal offered for sale, including the license plate if
6.10affixed and the scrap metal is a motor vehicle, and a front facial view of the person selling
6.11or delivering the scrap metal. Photographs must be clearly and accurately associated
6.12with their respective record;
6.13(10) a statement signed by the seller, under penalty of perjury as provided in section
6.14609.48, attesting that the scrap metal is not stolen and is free of any liens or encumbrances
6.15and the seller has the right to sell it;
6.16(11) a duplicate copy of the title, if any, provided by the seller of a motor vehicle; and
6.17(12) a duplicate copy of the receipt, which must include at least the following
6.18information: the name and address of the dealer, the date and time the scrap metal was
6.19received by the dealer, an accurate description of the scrap metal, the signature of the
6.20seller, and the amount paid for the scrap metal.
6.21 (b) The record, as well as the scrap metal purchased or received, shall at all
6.22reasonable times be open to the inspection of any law enforcement agency.
6.23(c) The records specified under paragraph (a), clauses (1), (2), (3), and (5), are
6.24required for property purchased from merchants, manufacturers, salvage pools, insurance
6.25companies, rental car companies, financial institutions, charities, dealers licensed under
6.26section 168.27, or wholesale dealers, having an established place of business, or of any
6.27goods purchased at open sale from any bankrupt stock.
6.28 (d) The dealer must provide a copy of the receipt required under paragraph (a),
6.29clause (12), to the seller in every transaction.
6.30(e) Law enforcement agencies in the jurisdiction where a dealer is located may
6.31conduct regular and routine inspections to ensure compliance, refer violations to the city
6.32or county attorney for criminal prosecution, and notify the registrar of motor vehicles.
6.33The registrar shall inspect a dealer who holds a license under section 168.27 every 18
6.34months to ensure compliance.
7.1(f) Local jurisdictions in which dealers are located are authorized to recover costs
7.2associated with compliance activities under paragraph (e) from the dealer, including
7.3automated property system billable transaction fees.
7.4(g) Except as otherwise provided in this section, a scrap metal dealer or the dealer's
7.5agent, employee, or representative may not disclose personal information concerning a
7.6customer without the customer's consent unless the disclosure is made in response to a
7.7request from a law enforcement agency. A scrap metal dealer must implement reasonable
7.8safeguards to protect the security of the personal information and prevent unauthorized
7.9access to or disclosure of the information. For purposes of this paragraph, "personal
7.10information" is any individually identifiable information gathered in connection with a
7.11record under paragraph (a).
7.12EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 8. Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
7.15 Subd. 1c. Automated property system. (a) Dealers must completely and accurately
7.16provide all the record information required in subdivision 1b by transferring it from their
7.17computer to the automated property system, by the close of business each day, using
7.18the interchange file specification format.
7.19(b) A dealer who does not have an electronic point-of-sale program may request to
7.20be provided software by the automated property system to record the required information.
7.21If the dealer uses a commercially available electronic point-of-sale program to record the
7.22information required in this section, it must submit the information using the interchange
7.23file specification format. Any record submitted by a dealer that does not conform to
7.24the interchange file specification format must be corrected and resubmitted the next
7.26(c) A dealer must display a sign of sufficient size, in a conspicuous place in the
7.27premises, which informs all patrons that all transactions are reported to law enforcement
7.29EFFECTIVE DATE.This section is effective January 1, 2015.
Sec. 9. Minnesota Statutes 2012, section 325E.21, subdivision 3, is amended to read:
Subd. 3. Payment by check or electronic transfer required. (a) Except as
7.32provided in paragraph (b),
a scrap metal dealer or the dealer's agent, employee, or
representative shall pay for all scrap metal purchases only by check or electronic transfer.
8.1(b) For purchase of a motor vehicle under subdivision 11, payment shall be made
8.2by mailed check or by electronic transfer of funds to a bank account. Checks shall be
8.3payable only to the individual providing proof of identification at the time of purchase.
8.4The dealer shall retain a record of the mailing address or unique transaction identifier for
8.5a period of three years and such information shall at all reasonable times be open for
8.6inspection by law enforcement.
8.7EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 10. Minnesota Statutes 2012, section 325E.21, subdivision 6, is amended to read:
Subd. 6. Criminal
penalty penalties. (a) Except as provided in paragraphs (b) and
a scrap metal dealer, or the agent, employee, or representative of the dealer, who
intentionally violates a provision of this section, is guilty of a misdemeanor.
8.12 (b) A scrap metal dealer, or an agent, employee, or representative of a scrap metal
8.13dealer who is convicted of violating this section a second time within a period of five
8.14years, is guilty of a gross misdemeanor.
8.15 (c) A scrap metal dealer, or an agent, employee, or representative of a scrap metal
8.16dealer, who is convicted of violating this section a third or subsequent time within a period
8.17of five years is guilty of a felony and may be sentenced to imprisonment for not more than
8.18three years or to payment of a fine of not more than $5,000, or both.
8.19 (d) Criminal penalties under this section are in addition to other remedies provided
8.21EFFECTIVE DATE.This section is effective August 1, 2013, and applies to crimes
8.22committed on or after that date.
Sec. 11. Minnesota Statutes 2012, section 325E.21, subdivision 8, is amended to read:
Property held by law enforcement Investigative holds; confiscation of
(a) Whenever a law enforcement official from any agency has probable cause to
believe that property in the possession of a scrap metal dealer is stolen or is evidence of a
crime and notifies the dealer not to sell the item,
the item may not be sold or removed the
8.28scrap metal dealer shall not (1) process or sell the item, or (2) remove or allow its removal
from the premises. This investigative hold
remains must be confirmed in writing by the
8.30originating agency within 72 hours and will remain
in effect for
days from the
date of initial notification, or until
it the investigative hold
is canceled or
a seizure order
8.32 is issued renewed, or until a law enforcement notification to confiscate or directive to
8.33release is issued
, whichever comes first.
(b) If an item is identified as stolen or evidence in a criminal case,
enforcement official may:
and remove it from the scrap metal
dealer, pursuant to
order from the law enforcement official notification
(2) place the item on hold or extend the hold
as provided in this section and leave it
9.6 in the shop under paragraph (a) and leave it in the licensed premise; or
9.7 (3) direct its release to a registered owner or owner's agent
When an item is
, the person doing so shall provide identification
upon request of the scrap metal
dealer, and shall provide
the name and telephone
number of the
agency and investigator, and the case number related to
A dealer may request seized property be returned in accordance with section
order to hold or seize investigative hold or notification to confiscate
is no longer necessary, the law enforcement official or designee
shall so notify the
9.17(e) A scrap metal dealer may process or otherwise dispose of the motor vehicle if:
9.18(1) a notification to confiscate is not issued during the investigative hold; or
9.19(2) a law enforcement official does not physically remove the motor vehicle from the
9.20premises within 15 calendar days from issuance of a notification to confiscate.
9.21EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 12. Minnesota Statutes 2012, section 325E.21, subdivision 9, is amended to read:
Subd. 9. Video security cameras required.
(a) Each scrap metal dealer shall install
and maintain at each location video surveillance cameras, still digital cameras, or similar
devices positioned to record or photograph a frontal view showing a readily identifiable
the face of each seller or prospective seller of scrap metal who enters the location.
The scrap metal dealer shall also photograph the seller's or prospective seller's vehicle,
including license plate, either by video camera or still digital camera, so that an accurate
and complete description of it may be obtained from the recordings made by the cameras.
The video camera or still digital camera must be kept in operating condition and must be
9.31shown to a law enforcement officer for inspection upon request
. The camera must record
and display the accurate date and time. The video camera must be turned on at all times
when the location is open for business and at any other time when scrap metal is purchased.
(b) If the scrap metal dealer does not purchase some or any scrap metal at a specific
business location, the dealer need not comply with this subdivision with respect to those
10.4(c) Recordings and images required by paragraph (a) shall be retained by the scrap
10.5metal dealer for a minimum period of 30 days and shall at all reasonable times be open to
10.6the inspection of any law enforcement agency.
10.7EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 13. Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
10.10 Subd. 10. Vehicles with proof of ownership. Except as provided in subdivision 11,
10.11no dealer shall purchase a motor vehicle unless the seller:
10.12(1) provides the vehicle title and lien releases, if the vehicle is subject to any liens, or
10.13an official bill of sale issued by a public impound lot, each listing the vehicle identification
10.15(2) provides proof of identification matching the name listed on the vehicle title or
10.16bill of sale issued by a public impound lot; and
10.17(3) signs a statement, under penalty of perjury as provided in section 609.48,
10.18attesting that the motor vehicle is not stolen and is free of any liens or encumbrances and
10.19that the seller has the right to sell the motor vehicle.
10.20EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 14. Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
10.23 Subd. 11. Vehicle without proof of ownership; five-day hold period. (a) If the
10.24seller does not provide the information required in subdivision 10, no dealer shall purchase
10.25a motor vehicle unless the seller:
10.26(1) agrees in writing to a conditional sale with a five-day hold period prior to
10.27completion of the transaction and disbursement of payment;
10.28(2) provides proof of identification; and
10.29(3) signs a statement, under penalty of perjury as provided in section 609.48,
10.30attesting that the motor vehicle is not stolen and is free of any liens or encumbrances and
10.31that the seller has the right to sell the motor vehicle.
10.32(b) The dealer shall:
10.33(1) hold the vehicle during the five-day hold period;
11.1(2) comply, on or after January 1, 2015, with reporting requirements under
11.2subdivision 1c by the end of the first day of the hold period;
11.3(3) not scrap, resell, dismantle, or in any way destroy the vehicle during the five-day
11.5(4) check the vehicle identification number with the registrar and local law
11.6enforcement on the last day of the five-day hold period to confirm that the vehicle has not
11.7been reported as stolen;
11.8(5) not complete the vehicle purchase transaction and disburse payment until after
11.9the five-day hold period; and
11.10(6) make any payment to the seller in accordance with subdivision 3, paragraph (b).
11.11EFFECTIVE DATE.This section is effective August 1, 2013.
Sec. 15. Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
11.14 Subd. 12. Purchase from other dealers or merchants. (a) Subdivisions 10 and
11.1511 do not apply when a scrap vehicle is purchased from:
11.16(1) an insurance company, rental car company, financial institution, or charity; or
11.17(2) a licensee under section 168.27.
11.18(b) A scrap vehicle dealer acquiring a scrap vehicle under this subdivision shall
11.19obtain the information required under subdivision 1b, paragraph (c).
Sec. 16. Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
11.22 Subd. 13. Model affidavit; right to sell vehicle. By July 15, 2013, the Minnesota
11.23Chiefs of Police Association, in consultation with the Minnesota Sheriff's Association,
11.24Minnesota Police and Peace Officers Association, and Minnesota County Attorney's
11.25Association, shall develop a model affidavit for use by scrap metal dealers under
11.26subdivision 1a, paragraph (a), clause (8); subdivision 10, clause (3); and subdivision 11,
11.27paragraph (a), clause (3).
11.28EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 17. AUTOMATED PROPERTY SYSTEM STANDARDS.
11.30(a) By July 1, 2014, the Minneapolis Police Department, in consultation with the
11.31scrap metal industry, law enforcement, prosecutors, and legislators, shall develop standards
11.32for implementation and use of the automated property system as provided under section
12.1325E.21, subdivision 1c. By July 15, 2014, the department shall provide copies of the
12.2standards to all scrap metal dealers required to report using the automated property system.
12.3(b) By January 15, 2014, the department shall submit proposed standards to
12.4the chairs and ranking minority members of the senate and house of representatives
12.5committees and divisions having jurisdiction over criminal justice policy and funding.
12.6EFFECTIVE DATE.This section is effective the day following final enactment.
Amend the title accordingly