Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF950 Compare Versions

Version 1 (Old)

Version 2 (New)

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		-	1.11to the commissioner for a certificate of title as provided ~~in this section. This section only~~
12		-	1.~~12applies~~ to vehicles with a title issued by this state.
13		-	1.13 (b) At least 15 days prior to applying for a certificate of title ~~under this section~~, ~~the~~
14		-	1.~~14insurer~~ or a designated agent must notify the owner and any ~~lienholders of record of the~~
15		-	1.~~15insurer~~'s intent to apply for a title. The notice must be sent to ~~the last known address of the~~
16		-	1.~~16owner~~ and any lienholders by certified mail or by a commercial ~~delivery service that provides~~
17		-	1.~~17evidence~~ of delivery.
	11	+	1.11to the commissioner for a certificate of title, salvage title, or prior salvage title as provided
	12	+	1.12in this section. This section only applies to vehicles with a title issued by this state.
	13	+	1.13 (b) At least 15 days prior to applying for a certificate of title, salvage title, or prior salvage
	14	+	1.14title under this section, the insurer or a designated agent must notify the owner and any
	15	+	1.15lienholders of record of the insurer's intent to apply for a title. The notice must be sent to
	16	+	1.16the last known address of the owner and any lienholders by certified mail or by a commercial
	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		-	1.19the insurer may apply for a certificate of title from the ~~commissioner. The application must~~
20		-	1.~~20attest~~ that the insurer or a designated agent:
	19	+	1.19the insurer may apply for a certificate of title, salvage title, or prior salvage title from the
	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		-	~~S0950-1 1st Engrossment~~~~SF950~~ REVISOR KRB
	24	+	25-00253 as introduced12/06/24 REVISOR KRB/BM
25	25		SENATE
26	26		STATE OF MINNESOTA
27	27		S.F. No. 950NINETY-FOURTH SESSION
28	28		(SENATE AUTHORS: JASINSKI)
29	29		OFFICIAL STATUSD-PGDATE
30		-	Introduction and first reading26102/03/2025
31		-	Referred to Transportation
32		-	Comm report: To pass as amended and re-refer to Commerce and Consumer Protection02/13/2025 2.1 (3) provided notice to the owner and any lienholders as required under paragraph (b).
	30	+	Introduction and first reading02/03/2025
	31	+	Referred to Transportation 2.1 (3) provided notice to the owner and any lienholders as required under paragraph (b).
33	32		2.2If the insurer or a designated agent does not attest to completing the requirements under
34	33		2.3clauses (1) to (3), the commissioner must reject the application.
35	34		2.4 (d) Notwithstanding any outstanding liens, upon proper application, the commissioner
36	35		2.5must issue a certificate of title, salvage title, or prior salvage title in the name of the insurer.
37	36		2.6Issuance of a certificate of title, salvage title, or prior salvage title extinguishes all existing
38	37		2.7liens against the vehicle. If the vehicle is sold, the insurer or a designated agent must assign
39	38		2.8the title to the buyer, and the vehicle is transferred without any liens.
40	39		2.9 Sec. 2. [168A.1503] REQUIREMENTS UPON UNPAID INSURANCE VEHICLE
41	40		2.10CLAIM.
42	41		2.11 Subdivision 1.Definition.For purposes of this section, "salvage vehicle auction
43	42		2.12company" or "auction company" means a business, organization, or individual that sells
44	43		2.13salvage vehicles on behalf of insurers.
45	44		2.14 Subd. 2.Notice to auction company.(a) If an insurance company licensed to conduct
46	45		2.15business in Minnesota requests an auction company to take possession of a salvage vehicle
47	46		2.16that is subject to an insurance claim and the insurance company does not subsequently take
48	47		2.17ownership of the vehicle, the insurance company may direct the auction company to release
49	48		2.18the vehicle to the owner or lienholder.
50	49		2.19 (b) The insurance company must provide the auction company notice by commercial
51	50		2.20delivery service, email, or a proprietary electronic system accessible by both the insurance
52	51		2.21company and the auction company authorizing the auction company to release the vehicle
53	52		2.22to the vehicle's owner or lienholder.
54	53		2.23 Subd. 3.Notice to owner or lienholder.(a) Upon receiving notice from an insurance
55	54		2.24company, the auction company must send two notices a minimum of 14 days apart to the
56	55		2.25owner of the vehicle and any lienholders stating that the vehicle is available to be recovered
57	56		2.26from the auction company within 30 days of the date on which the first notice was sent.
58	57		2.27Each notice must include an invoice for any outstanding charges owed to the auction company
59	58		2.28that must be paid before the vehicle may be recovered.
60	59		2.29 (b) Notice under this subdivision must be sent to the address of the owner and any
61		-	2.30lienholder on record with the ~~commissioner~~ by certified mail or a commercially available
	60	+	2.30lienholder on record with the department by certified mail or a commercially available
62	61		2.31delivery service that provides proof of delivery.
63	62		2.32 Subd. 4.Vehicle deemed abandoned.(a) If the owner or any lienholder does not recover
64	63		2.33the vehicle within 30 days of the date on which the first notice was sent under subdivision
65	64		2Sec. 2.
66		-	~~S0950-1 1st Engrossment~~~~SF950~~ REVISOR KRB 3.13, (1) the vehicle is considered abandoned, (2) the vehicle's certificate of title is deemed
	65	+	25-00253 as introduced12/06/24 REVISOR KRB/BM 3.13, (1) the vehicle is considered abandoned, (2) the vehicle's certificate of title is deemed
67	66		3.2assigned to the auction company, and (3) without surrendering the certificate of title, the
68		-	3.3auction company may request, on a form provided by the ~~commissioner~~, that the
69		-	3.~~4commissioner issue~~ a certificate of title that is free of liens.
	67	+	3.3auction company may request, on a form provided by the department, that the department
	68	+	3.4issue a certificate of title that is free of liens and bears a salvage or prior salvage brand.
70	69		3.5 (b) A request under paragraph (a) must be accompanied by a copy of (1) the notice sent
71	70		3.6by the insurance company required under subdivision 2, and (2) evidence of delivery of the
72	71		3.7notices sent to the owner and any lienholders required under subdivision 3 or evidence that
73	72		3.8the notices were undeliverable.
74	73		3.9 (c) Notwithstanding any outstanding liens against the vehicle, upon receipt of any fees
75		-	3.10charged under section 168A.29, the ~~commissioner~~ must issue a certificate of title that is
76		-	3.~~11free of~~ liens and bears a salvage or prior salvage brand to the auction company in possession
77		-	3.~~12of the~~ vehicle.
	74	+	3.10charged under section 168A.29, the department must issue a certificate of title that is free
	75	+	3.11of liens and bears a salvage or prior salvage brand to the auction company in possession of
	76	+	3.12the vehicle.
78	77		3Sec. 2.
79		-	~~S0950-1 1st Engrossment~~~~SF950~~ REVISOR KRB
	78	+	25-00253 as introduced12/06/24 REVISOR KRB/BM