Minnesota 2025-2026 Regular Session

Minnesota House Bill HF1406 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to motor vehicles; providing notice requirements related to salvage vehicle
3	3	1.3 auctions; authorizing insurers to apply for vehicle title when vehicle is acquired
4	4	1.4 through payment of damages; proposing coding for new law in Minnesota Statutes,
5	5	1.5 chapter 168A.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. [168A.1502] INSURER APPLICATION FOR TITLE.
8	8	1.8 (a) When an insurer licensed to conduct business in Minnesota acquires ownership of a
9	9	1.9vehicle through payment of damages and the owner fails to deliver the vehicle's title to the
10	10	1.10insurer within 15 days of payment of the claim, the insurer or a designated agent may apply
11	11	1.11to the commissioner for a certificate of title, salvage title, or prior salvage title as provided
12	12	1.12in this section. This section only applies to vehicles with a title issued by this state.
13	13	1.13 (b) At least 15 days prior to applying for a certificate of title, salvage title, or prior salvage
14	14	1.14title under this section, the insurer or a designated agent must notify the owner and any
15	15	1.15lienholders of record of the insurer's intent to apply for a title. The notice must be sent to
16	16	1.16the last known address of the owner and any lienholders by certified mail or by a commercial
17	17	1.17delivery service that provides evidence of delivery.
18	18	1.18 (c) At least 15 days after notifying the owner and any lienholders under paragraph (b),
19	19	1.19the insurer may apply for a certificate of title, salvage title, or prior salvage title from the
20	20	1.20commissioner. The application must attest that the insurer or a designated agent:
21	21	1.21 (1) paid the claim;
22	22	1.22 (2) requested the title or other necessary transfer documents from the owner; and
23	23	1Section 1.
24	24	REVISOR KRB/BM 25-0025312/06/24
25	25	State of Minnesota
26	26	This Document can be made available
27	27	in alternative formats upon request
28	28	HOUSE OF REPRESENTATIVES
29	29	H. F. No. 1406
30	30	NINETY-FOURTH SESSION 2.1 (3) provided notice to the owner and any lienholders as required under paragraph (b).
31	31	2.2If the insurer or a designated agent does not attest to completing the requirements under
32	32	2.3clauses (1) to (3), the commissioner must reject the application.
33	33	2.4 (d) Notwithstanding any outstanding liens, upon proper application, the commissioner
34	34	2.5must issue a certificate of title, salvage title, or prior salvage title in the name of the insurer.
35	35	2.6Issuance of a certificate of title, salvage title, or prior salvage title extinguishes all existing
36	36	2.7liens against the vehicle. If the vehicle is sold, the insurer or a designated agent must assign
37	37	2.8the title to the buyer, and the vehicle is transferred without any liens.
38	38	2.9 Sec. 2. [168A.1503] REQUIREMENTS UPON UNPAID INSURANCE VEHICLE
39	39	2.10CLAIM.
40	40	2.11 Subdivision 1.Definition.For purposes of this section, "salvage vehicle auction
41	41	2.12company" or "auction company" means a business, organization, or individual that sells
42	42	2.13salvage vehicles on behalf of insurers.
43	43	2.14 Subd. 2.Notice to auction company.(a) If an insurance company licensed to conduct
44	44	2.15business in Minnesota requests an auction company to take possession of a salvage vehicle
45	45	2.16that is subject to an insurance claim and the insurance company does not subsequently take
46	46	2.17ownership of the vehicle, the insurance company may direct the auction company to release
47	47	2.18the vehicle to the owner or lienholder.
48	48	2.19 (b) The insurance company must provide the auction company notice by commercial
49	49	2.20delivery service, email, or a proprietary electronic system accessible by both the insurance
50	50	2.21company and the auction company authorizing the auction company to release the vehicle
51	51	2.22to the vehicle's owner or lienholder.
52	52	2.23 Subd. 3.Notice to owner or lienholder.(a) Upon receiving notice from an insurance
53	53	2.24company, the auction company must send two notices a minimum of 14 days apart to the
54	54	2.25owner of the vehicle and any lienholders stating that the vehicle is available to be recovered
55	55	2.26from the auction company within 30 days of the date on which the first notice was sent.
56	56	2.27Each notice must include an invoice for any outstanding charges owed to the auction company
57	57	2.28that must be paid before the vehicle may be recovered.
58	58	2.29 (b) Notice under this subdivision must be sent to the address of the owner and any
59	59	2.30lienholder on record with the department by certified mail or a commercially available
60	60	2.31delivery service that provides proof of delivery.
61	61	2.32 Subd. 4.Vehicle deemed abandoned.(a) If the owner or any lienholder does not recover
62	62	2.33the vehicle within 30 days of the date on which the first notice was sent under subdivision
63	63	2Sec. 2.
64	64	REVISOR KRB/BM 25-0025312/06/24 3.13, (1) the vehicle is considered abandoned, (2) the vehicle's certificate of title is deemed
65	65	3.2assigned to the auction company, and (3) without surrendering the certificate of title, the
66	66	3.3auction company may request, on a form provided by the department, that the department
67	67	3.4issue a certificate of title that is free of liens and bears a salvage or prior salvage brand.
68	68	3.5 (b) A request under paragraph (a) must be accompanied by a copy of (1) the notice sent
69	69	3.6by the insurance company required under subdivision 2, and (2) evidence of delivery of the
70	70	3.7notices sent to the owner and any lienholders required under subdivision 3 or evidence that
71	71	3.8the notices were undeliverable.
72	72	3.9 (c) Notwithstanding any outstanding liens against the vehicle, upon receipt of any fees
73	73	3.10charged under section 168A.29, the department must issue a certificate of title that is free
74	74	3.11of liens and bears a salvage or prior salvage brand to the auction company in possession of
75	75	3.12the vehicle.
76	76	3Sec. 2.
77	77	REVISOR KRB/BM 25-0025312/06/24