Definitions and registration requirements for motorized bicycles and motorcycles powered by electric motors modified, sellers required to have a dealer license, and certain vehicles prohibited from using public roads.

A bill for an act

relating to transportation; modifying definitions and registration requirements for

motorized bicycles and motorcycles powered by electric motors; requiring sellers

of certain motorized bicycles and motorcycles powered by electric motors to have

a dealer license; prohibiting certain vehicles from using public roads; amending

Minnesota Statutes 2024, sections 84.787, subdivision 7; 84.788, subdivision 12;

168.27, subdivisions 1, 24; 169.011, subdivisions 40b, 44, 45; 169.02, subdivision

1; 169.223, by adding a subdivision; 169.974, by adding a subdivision; Minnesota

Statutes 2025 Supplement, section 168.27, subdivision 22.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 84.787, subdivision 7, is amended to read:

Subd. 7.

Off-highway motorcycle.

(a) "Off-highway motorcycle" means
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a motorized,
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an
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off-highway vehicle
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propelled by an electric motor or an internal combustion engine,
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traveling on two wheels
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,
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and having a seat or saddle designed to be straddled by the operator

and handlebars for steering control, including a vehicle that is registered under chapter 168

for highway use if it is also used for off-highway operation on trails or unimproved terrain.

(b)
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Off-highway motorcycle includes a motorized bicycle, as defined in section 169.011,

subdivision 45, when registered under section 84.788 and operated on designated off-highway

motorcycle trails.
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(c)
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Off-highway motorcycle does not include an electric-assisted bicycle as defined in

section
169.011, subdivision 27
.

Sec. 2.

Minnesota Statutes 2024, section 84.788, subdivision 12, is amended to read:

Subd. 12.

Dual registration.

(a) An off-highway motorcycle registered under this section

may also be registered as a motorcycle
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or motorized bicycle
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under chapter 168 for use on

public roads and highways.

(b) If the off-highway motorcycle was not originally constructed primarily for use on

public roads and highways, the off-highway motorcycle must be equipped with mirrors and

a headlight, taillight, and horn and be otherwise modified as necessary to meet the

requirements of chapter 169, the safety standards of the National Traffic and Motor Safety

Act, Code of Federal Regulations, title 49, part 571, and the regulations adopted under that

federal act, for motorcycles regarding safety and acceptability to operate on public roads

and highways.

(c) An applicant for registration under chapter 168 must submit a form, prescribed by

the commissioner of public safety.

(d) For the purposes of this subdivision, off-highway motorcycle
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according to
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, as defined

in
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section
84.787, subdivision 7
, does not include a golf cart; mini truck; dune buggy;

go-cart; moped; pocket bike; gray market vehicle; or vehicle designed and used specifically

for lawn maintenance, agriculture, logging, or mining purposes.

Sec. 3.

Minnesota Statutes 2024, section 168.27, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the terms in paragraphs

(b) to (o) have the meanings given them.

(b) "Auctioning motor vehicles" means arranging for and handling the sale of motor

vehicles, not the property of the auctioneer, to the highest bidder.

(c) "Brokering motor vehicles" means arranging sales or leases between buyers and

sellers, or lessees and lessors, of motor vehicles and receiving a fee for those services.

(d) "Commercial building" means a permanent, enclosed building that is on a permanent

foundation and connected to local sewer and water facilities or otherwise complying with

local sanitary codes, is adapted to commercial use, and conforms to local government zoning

requirements. "Commercial building" may include strip office malls or garages if a separate

entrance and a separate address are maintained and the dealership is clearly identified as a

separate business.

(e) "Commercial office space" means office space occupying all or part of a commercial

building.

(f) "Dealer" includes licensed new motor vehicle dealers, used motor vehicle dealers,

motor vehicle brokers, wholesalers, auctioneers, lessors of new or used motor vehicles,

scrap metal processors, used vehicle parts dealers, and salvage pools.

(g) "Horse trailer" is a trailer designed and used to carry horses and other livestock,

which has not more than three axles and a maximum gross weight capacity of not more than

24,000 pounds.

(h) "Junked vehicle" means a vehicle that is declared unrepairable under section

168A.151
.

(i) "Leasing motor vehicles" means furnishing a motor vehicle for a fee under a

bailor-bailee relationship where no incidences of ownership are intended to be transferred

other than the right to use the vehicle for a stated period of time.

(j) "Motor vehicle" has the meaning given it in section
168.002, subdivision 18
, and

also includes
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:
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(1)
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a park trailer as defined in section
168.002, subdivision 23
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.
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; and
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(2) a motorized bicycle as defined in section 168.002, subdivision 20, regardless of

whether the vehicle is designed and originally manufactured to operate primarily on

highways.

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(k) "Motor vehicle broker" means a person who arranges the sale of a motor vehicle

between a buyer and a seller, or the lease of a motor vehicle between a lessee and a lessor,

for which service the broker receives a fee.

(l) "New motor vehicle" means a motor vehicle other than described in paragraph (n).

(m) "Registration year" means the 12-month period for which a dealer license is issued.

(n) "Used motor vehicle" means a motor vehicle for which title has been transferred

from the person who first acquired it from the manufacturer, distributor, or dealer. A new

motor vehicle will not be considered a used motor vehicle until it has been placed in actual

operation and not held for resale by an owner who has been granted a certificate of title on

the motor vehicle and has registered the motor vehicle in accordance with this chapter and

chapters 168A and 297B, or the laws of the residence of the owner.

(o) "Wholesaling motor vehicles" means selling new or used motor vehicles to dealers

for resale to the public.

Sec. 4.

Minnesota Statutes 2025 Supplement, section 168.27, subdivision 22, is amended

to read:

Subd. 22.

Dealer license for trailers
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, motorized bicycles
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; plates, fees; exemptions.

(a)

Any person, copartnership, or corporation having a permanent enclosed commercial building

or structure either owned in fee or leased and engaged in the business, either exclusively or

in addition to any other occupation, of selling
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motorized bicycles,
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boat trailers, horse trailers,

or snowmobile trailers, may apply to the registrar for a dealer's license. Upon payment of

a $10 fee the registrar must license the applicant as a dealer for the remainder of the calendar

year in which the application was received. The license may be renewed on or before the

second day of January of each succeeding year by payment of a fee of $10.

(b) The registrar must issue to each dealer, upon request of the dealer, up to 50 dealer

plates as provided in subdivision 16 upon payment of $5 for each plate. The plates may be

used in the same manner and for the same purposes as is provided in subdivision 16.
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Except

for motorized bicycle dealers,
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The registrar must also issue to the dealer, upon request of

the dealer, "in-transit" plates as provided in subdivision 17 upon payment of a fee of $5 for

each plate.

(c) This subdivision does not abrogate any of the provisions of this section relating to

the duties, responsibilities, and requirements of persons, copartnerships, or corporations

engaged in the business, either exclusively or in addition to other occupations, of selling

motor vehicles or manufactured homes, except that a seller of boat trailers, utility trailers,

or snowmobile trailers who is licensed under this subdivision is not required to have a

contract or franchise with a manufacturer or distributor of new boat trailers, utility trailers,

or new snowmobile trailers the seller proposes to sell, broker, wholesale, or auction. This

section does not require a manufacturer of snowmobile trailers whose manufacturing facility

is located outside of the metropolitan area as defined in section
473.121
to have a dealer's

license to transport the snowmobile trailers to dealers or retail outlets in the state.

Sec. 5.

Minnesota Statutes 2024, section 168.27, subdivision 24, is amended to read:

Subd. 24.

Bonds.

(a) Except as otherwise provided in this subdivision, all persons

licensed according to this section shall keep in full force and effect a bond with a corporate

surety to be approved by the registrar of motor vehicles in the following amounts; in the

case of boat trailer, snowmobile trailer,
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or
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horse trailer
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or motorized bicycle
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dealers, or

dealers in trailers with a manufacturer's rated carrying capacity under 15,000 pounds designed

to transport small construction or farm equipment, in the amount of $5,000; and as to all

other persons in the amount of $50,000. The bond must be conditioned on the faithful

performance by the licensee of the obligations imposed on persons engaged in motor vehicle

transactions by the laws of this state, including the conduct required of a licensee by this

section and other sections governing the sale or transfer of motor vehicles, and the payment

of all taxes, license fees, and penalties. The bond must be for the benefit of the state of

Minnesota and any transferor, seller, or purchaser of a motor vehicle for any monetary loss

caused by failure of the licensee to meet the obligations enumerated above. Proceedings on

the forfeiture of the bonds must be commenced in the district court of the county wherein

the business of the licensed person was carried on, or if in more than one county, the county

in which the offense occurred. This subdivision does not apply to a used vehicle parts dealer

or a scrap metal processor.

(b) This subdivision does not apply to:

(1) a dealer in new trailers designed to transport small construction or farm equipment

in any year following a year in which the dealer had less than $500,000 in gross receipts

from the sale of such trailers; or

(2) a dealer in new trailers designed to transport small construction or farm equipment

who has been a dealer in such trailers for less than one year and who the department

reasonably determines will have gross receipts of less than $500,000 during the first year

of business.

Sec. 6.

Minnesota Statutes 2024, section 169.011, subdivision 40b, is amended to read:

Subd. 40b.

Micromobility device.

(a) "Micromobility device" means a vehicle that:

(1) is capable of: (i) being propelled solely by human power; (ii) being powered solely

by an electric motor drawing current from rechargeable storage batteries, fuel cells, or other

portable sources of electrical current; or (iii) both (i) and (ii);

(2) when solely powered by an electric motor, is not capable of propelling the vehicle

at a speed greater than
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30
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20
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miles per hour on a paved level surface; and

(3) has an unloaded weight of up to
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500
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100
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pounds.

(b) Micromobility device includes a bicycle, a motorized foot scooter, and an electric

personal assistive mobility device.
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Micromobility device includes a motorized bicycle that

meets the requirements under paragraph (a).
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Sec. 7.

Minnesota Statutes 2024, section 169.011, subdivision 44, is amended to read:

Subd. 44.

Motorcycle.

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(a)
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"Motorcycle" means every motor vehicle
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having
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that
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:
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(1) has
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a seat or saddle for the use of the rider
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and
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;
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(2) is
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designed to travel on not more than three wheels in contact with the ground
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,

including
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; and
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(3) is propelled by an electric or liquid fuel motor.

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(b) Motorcycle includes but is not limited to a vehicle under paragraph (a) that has an

electric motor of at least 1,500 watts,
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motor scooters
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,
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and autocycles.

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(c) A vehicle is not a
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motorcycle
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does not include
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if it meets the requirements of
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(1)
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a
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motorized
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bicycles
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bicycle
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as defined in subdivision 45, (2)
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an
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electric-assisted
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bicycles
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bicycle
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as defined in subdivision 27, (3)
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a motorized foot scooter, (4)
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a tractor, or
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(4)
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(5) a
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roadable aircraft.

Sec. 8.

Minnesota Statutes 2024, section 169.011, subdivision 45, is amended to read:

Subd. 45.

Motorized bicycle.

"Motorized bicycle" means a bicycle that is propelled by

an electric
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motor of more than 750 watts but less than 1,500 watts
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or a liquid fuel motor of

a piston displacement capacity of 50 cubic centimeters or less, and a maximum of two brake

horsepower, which is capable of a maximum speed of not more than 30 miles per hour on

a flat surface with not more than one percent grade in any direction when the motor is

engaged. Motorized bicycle does not include an electric-assisted bicycle as defined in

subdivision 27.

Sec. 9.

Minnesota Statutes 2024, section 169.02, subdivision 1, is amended to read:

Subdivision 1.

Application to persons, places, and vehicles.

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(a)
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The provisions of this

chapter relating to the operation of vehicles refer exclusively to the operation of vehicles

upon highways, and upon highways, streets, private roads, and roadways situated on property

owned, leased, or occupied by the regents of the University of Minnesota, or the University

of Minnesota, except:

(1) where a different place is specifically referred to in a given section;

(2) the provisions of sections
169.09
to
169.13
apply to any person who drives, operates,

or is in physical control of a motor vehicle within this state or upon the ice of any boundary

water of this state, and to any person who drives, operates, or is in physical control of a

snowmobile on a snowmobile trail within this state.

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(b) A vehicle must not be operated upon the highways of Minnesota if it does not meet

the specifications of a vehicle as defined in section 169.011 in addition to the definition

under section 169.011, subdivision 92, either as that vehicle was originally manufactured

or subsequently modified.

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Sec. 10.

Minnesota Statutes 2024, section 169.223, is amended by adding a subdivision

to read:

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Subd. 6.

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Electrical safety standards.

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No person may sell a motorized bicycle powered

by an electric motor unless the motorized bicycle:

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(1) has been certified by an independent third-party ISO-17065 certified laboratory for

compliance with ANSI/CAN/UL Standard 2272 and bears the certification mark of the

laboratory; or

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(2) has been certified by the vehicle manufacturer for compliance with SAE International

standard J2929 or a similar applicable electrical safety standard approved by the

commissioner of public safety.

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Sec. 11.

Minnesota Statutes 2024, section 169.974, is amended by adding a subdivision

to read:

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Subd. 8.

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Electrical safety standards.

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No person may sell a motorcycle powered by an

electric motor unless the motorcycle has been certified by the vehicle manufacturer for

compliance with: (1) the latest revision of SAE International standard J2929; or (2) a similar

applicable standard from SAE International, International Organization for Standardization

(ISO), United Nations Economic Commission for Europe (UNECE), or International

Electrotechnical Commission (IEC), or another electrical safety standard. A standard under

clause (2) must be approved by the commissioner of public safety.

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