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HF3864 • 2026
Requirements for validation sticker display on license plates eliminated, and conforming and technical changes made.
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
The plain English breakdown is still being put together. The official documents below are already here.
Author added Curran
Introduction and first reading, referred to Transportation Finance and Policy
Requirements for validation sticker display on license plates eliminated, and conforming and technical changes made.
A bill for an act relating to motor vehicles; eliminating requirements for validation sticker display on license plates; making conforming and technical changes; amending Minnesota Statutes 2024, sections 168.012, subdivision 1c; 168.0135, subdivision 1; 168.017, subdivision 5; 168.12, subdivisions 1, 2f, 5; 168.123, subdivision 1; 168.124, subdivision 3; 168.125, subdivision 1b; 168.127, subdivisions 1, 5; 168.15, subdivision 1; 168.16; 168.187, subdivision 12; 168.27, subdivision 28; 168.29; 168.31, subdivision 4; 168.381, subdivision 4; 168B.035, subdivision 3; 169.79, subdivisions 1, 7; Minnesota Statutes 2025 Supplement, section 168.012, subdivision 13; repealing Minnesota Statutes 2024, sections 168.37, subdivision 3; 169.79, subdivision 8. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: ARTICLE 1 LICENSE PLATE STICKERS Section 1. Minnesota Statutes 2024, section 168.12, subdivision 1, is amended to read: Subdivision 1. Plates; design, visibility, periods of issuance. (a) The commissioner, upon approval and payment, must issue to the applicant the plates required by this chapter, bearing the state name and an assigned vehicle registration number. The number assigned by the commissioner may be a combination of a letter or sign with figures. The color of the plates and the color of the abbreviation of the state name and the number assigned must be in marked contrast. The plates must be lettered, spaced, or distinguished to suitably indicate the registration of the vehicle according to the rules of the commissioner. (b) When a vehicle is registered on the basis of total gross weight, the plates issued must clearly indicate by letters or other suitable insignia the maximum gross weight for which the tax has been paid. (c) Plates issued to a noncommercial vehicle must bear the inscription "noncommercial" unless the vehicle is displaying a special plate authorized and issued under this chapter. (d) A one-ton pickup truck that is used for commercial purposes and is subject to section 168.185 , is eligible to display special plates as authorized and issued under this chapter. (e) The plates must be so treated as to be at least 100 times brighter than the conventional painted deleted text begin number deleted text end plates. When properly mounted on an unlighted vehicle, the plates, when viewed from a vehicle equipped with standard headlights, must be visible for a distance of not less than 1,500 feet and readable for a distance of not less than 110 feet. (f) The commissioner must issue plates for the following periods: (1) new plates issued pursuant to section 168.012, subdivision 1 , must be issued to a vehicle for as long as the vehicle is owned by the exempt agency and the plate is not transferable from one vehicle to another but the plate may be transferred with the vehicle from one tax-exempt agency to another deleted text begin . deleted text end new text begin ; new text end (2) plates issued for passenger automobiles must be issued for a seven-year period deleted text begin . deleted text end new text begin , and new text end all plates issued under this deleted text begin paragraph deleted text end new text begin clause new text end must be replaced if they are seven years old or older at the time of registration renewal or will become so during the registration period deleted text begin . deleted text end new text begin ; new text end (3) plates issued under sections 168.053 and 168.27, subdivisions 16 and 17, must be for a seven-year period deleted text begin . deleted text end new text begin ; new text end (4) plates issued under subdivisions 2c and 2d and sections 168.123, 168.1235 , and 168.1255 must be issued for the life of the veteran under section 169.79 deleted text begin . deleted text end new text begin ; and new text end (5) plates for any vehicle not specified in clauses (1) to (3) must be issued for the life of the vehicle. (g) deleted text begin In a year in which plates are not issued, the commissioner must issue for each registration a sticker to designate the year of registration. This sticker must show the year or years for which the sticker is issued, and is valid only for that period. deleted text end The plates deleted text begin and stickers deleted text end issued for a vehicle may not be transferred to another vehicle during the new text begin applicable registration new text end period deleted text begin for which the sticker is issued deleted text end , except when issued for a vehicle registered under section 168.187 . (h) Despite any other provision of this subdivision, plates issued to a vehicle used for behind-the-wheel instruction in a driver education course in a public school may be transferred to another vehicle used for the same purpose without payment of any additional fee. The public school must notify the commissioner of each transfer of plates under this paragraph. The commissioner may prescribe a format for notification. (i) In lieu of plates required under this section, the commissioner must issue a registration number identical to the federally issued tail number assigned to a roadable aircraft. new text begin EFFECTIVE DATE. new text end new text begin This section is effective October 1, 2026. new text end Sec. 2. Minnesota Statutes 2024, section 169.79, subdivision 1, is amended to read: Subdivision 1. Registration new text begin and plates new text end required. deleted text begin No person shall deleted text end new text begin (a) A person must not new text end operate deleted text begin , drive, deleted text end or park a motor vehicle on any highway unless the vehicle is registered in accordance with the laws of this state and deleted text begin has the number deleted text end new text begin displays the license new text end plates or permit new text begin issued by the commissioner of public safety new text end confirming that valid registration or operating authority has been obtained, except as provided in deleted text begin sections deleted text end new text begin : (1) this section; (2) new text end new text begin section new text end 168.10 deleted text begin and deleted text end new text begin or new text end 168.12, subdivision 2f deleted text begin , as assigned to it by the commissioner of public safety, conspicuously displayed thereon in a manner that the view of any plate or permit is not obstructed deleted text end new text begin ; or (3) section 168.09, subdivision 7, 168.091 , or 168.092 new text end . new text begin (b) new text end A plate issued under section 168.27 or a permit issued under chapter 168 may be displayed on a vehicle deleted text begin in conjunction with deleted text end new text begin that has new text end expired registration new text begin , new text end whether or not deleted text begin it deleted text end new text begin the vehicle new text end displays the license plate deleted text begin to which deleted text end new text begin issued in conjunction with new text end the last registration deleted text begin was issued deleted text end . new text begin (c) Unless specifically established otherwise, a validation sticker that indicates the date of expiration of vehicle registration is not required to be affixed or displayed on a license plate. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective October 1, 2026. new text end Sec. 3. Minnesota Statutes 2024, section 169.79, subdivision 7, is amended to read: Subd. 7. Plate fastened and visible. deleted text begin All plates deleted text end new text begin (a) A license plate new text end must be new text begin : new text end (1) securely fastened so as to prevent deleted text begin them from deleted text end swinging deleted text begin , deleted text end new text begin ; new text end (2) displayed horizontally new text begin , or as provided in subdivision 3, new text end with the identifying numbers and letters facing outward from the vehicle deleted text begin , and deleted text end new text begin ; new text end (3) mounted in the upright position new text begin ; and new text end new text begin (4) conspicuously displayed so that the view of the plate is not obstructed new text end . new text begin (b) new text end The deleted text begin person driving the deleted text end new text begin operator of a new text end motor vehicle deleted text begin shall deleted text end new text begin must new text end keep deleted text begin the deleted text end new text begin a new text end plate legible and unobstructed and free from grease, dust, or other blurring material so that the lettering is plainly visible at all times. It is unlawful to cover any assigned letters and numbers or the name of the state of origin of a license plate with any material whatever, including any clear or colorless material that affects the plate's visibility or reflectivity. new text begin EFFECTIVE DATE. new text end new text begin This section is effective October 1, 2026. new text end Sec. 4. new text begin REPEALER. new text end new text begin Minnesota Statutes 2024, sections 168.37, subdivision 3; and 169.79, subdivision 8, new text end new text begin are repealed. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective October 1, 2026. new text end ARTICLE 2 CONFORMING CHANGES Section 1. Minnesota Statutes 2024, section 168.012, subdivision 1c, is amended to read: Subd. 1c. Payment of administrative, plate, and filing fee. The annual administrative fee for a tax-exempt vehicle under this section is $5. The license plate fee for a tax-exempt vehicle, except a trailer, is $10 for two plates per vehicle, payable only on the first tax-exempt registration of the vehicle. The registration period for a tax-exempt vehicle is biennial. The administrative fee is due on March 1 biennially and payable the preceding January 1 deleted text begin , with validating stickers issued at time of payment deleted text end . Replacement plates are subject to the fees in section 168.12 . Sec. 2. Minnesota Statutes 2025 Supplement, section 168.012, subdivision 13, is amended to read: Subd. 13. Vehicles registered by certain veterans. (a) A passenger automobile, one-ton pickup truck, motorcycle, or recreational vehicle registered by a veteran with a total service-connected disability, as defined in section 171.01, subdivision 51 , is not subject to: (1) registration taxes under this chapter; (2) administrative fees imposed under subdivision 1c; (3) filing fees and surcharges imposed under section 168.33, subdivision 7 ; or (4) plate deleted text begin and validation sticker deleted text end fees imposed under this chapter, including but not limited to: (i) fees under section 168.12, subdivision 5 ; (ii) fees identified in any section authorizing special plates; and (iii) transfer fees. (b) The exemptions under this subdivision apply to a motor vehicle that is jointly registered by a qualifying veteran and a spouse or domestic partner. (c) The fees identified under paragraph (a), clause (4), do not include: (1) a fee for personalized plates under section 168.12, subdivision 2a ; or (2) a required contribution or donation for a special plate, including but not limited to a contribution under sections 168.1255, subdivision 1 , clause (6); 168.1258, subdivision 1 , clause (4); 168.1259, subdivision 2 , paragraph (a), clause (5); 168.1287, subdivision 1 , clause (5); 168.129, subdivision 1 , clause (5); 168.1295, subdivision 1 , paragraph (a), clause (5); 168.1296, subdivision 1 , paragraph (a), clause (5); and 168.1299, subdivision 1 , clause (3). (d) A qualifying veteran may register no more than two motor vehicles at the same time with the exemptions under this subdivision. Nothing in this paragraph prevents registration of additional motor vehicles as otherwise provided in this chapter. Sec. 3. Minnesota Statutes 2024, section 168.0135, subdivision 1, is amended to read: Subdivision 1. Authorization. (a) The commissioner, in consultation with deputy registrars, must establish a process to implement, locate, and install self-service kiosks that may be used for passenger vehicle and motorcycle registration renewals. The commissioner must establish reasonable performance, security, technical, and financial standards to approve a vendor. Self-service kiosks authorized by this section must: (1) allow a customer to renew a passenger vehicle or motorcycle registration pursuant to section 168.013 without assistance of a deputy registrar; (2) collect the appropriate annual contribution for a special license plate; (3) process requests for duplicate license plates, except that the self-service kiosk must not process any request for a special plate that requires documentation to prove eligibility to receive that type of plate; new text begin and new text end deleted text begin (4) dispense license plate registration renewal stickers to the applicant at the time of the application; and deleted text end deleted text begin (5) deleted text end new text begin (4) new text end display the contact phone number and email address of the deputy registrar's office that is responsible for the self-service kiosk. (b) This section only applies to deputy registrars appointed pursuant to section 168.33 , subdivision 2. Sec. 4. Minnesota Statutes 2024, section 168.017, subdivision 5, is amended to read: Subd. 5. Registration period extension for leased vehicle. (a) Notwithstanding subdivisions 3 and 4, a person leasing for at least one year a vehicle registered under this section may obtain an extension of the motor vehicle's registration period for the unexpired portion of the lease period, for a period not to exceed 11 months beyond the expiration of the registration period. (b) In order to obtain an extension under this subdivision a lessee must: (1) apply to the registrar on a form the registrar prescribes; (2) submit to the registrar a copy of the lease; (3) pay an administrative fee of $5; and (4) pay a tax of 1/12 of the tax for the registration period being extended for each month of the extension. (c) On an applicant's compliance with paragraph (b) deleted text begin the registrar shall issue the applicant a license plate tab or sticker designating the new month of expiration of the registration. deleted text end new text begin , new text end the extended registration expires on the tenth day of the month following the deleted text begin month deleted text end designated deleted text begin on the tab or sticker deleted text end new text begin month of expiration new text end . (d) All fees collected under paragraph (b), clause (3), must be deposited in the driver and vehicle services operating account under section 299A.705, subdivision 1 . Taxes collected under paragraph (b), clause (4), must be deposited in the highway user tax distribution fund. Sec. 5. Minnesota Statutes 2024, section 168.12, subdivision 2f, is amended to read: Subd. 2f. Original license plates. (a) On application of the owner and in lieu of issuing plates under subdivision 1 to a motor vehicle registered and taxed as a passenger automobile, the commissioner may assign to the motor vehicle original Minnesota deleted text begin registration deleted text end new text begin license new text end plates issued in the same year as the model year of the motor vehicle, if (1) the original plates are at least 20 years old, (2) the owner of the motor vehicle has the original plates in possession at the time of the application, and (3) the owner provides the plate number to the commissioner. (b) Plates deleted text begin displayed deleted text end under this subdivision deleted text begin , including stickers applied to the plates, deleted text end must be clearly legible and must be displayed on the motor vehicle. (c) The commissioner deleted text begin shall deleted text end new text begin must new text end not assign the registration number on the original plates to the motor vehicle if the commissioner determines that the number on the original plate is identical to the number on any plate in the current or reserved numbering system used by the commissioner. (d) deleted text begin Despite deleted text end new text begin Notwithstanding new text end subdivision 1, an original plate whose number has been assigned under this subdivision may be displayed for as long as the plates deleted text begin , including tabs and stickers on the plates, deleted text end are clearly legible and the number is not subsequently used by the commissioner as a plate number in a registration numbering system. deleted text begin (e) Despite subdivision 1, original plates assigned under this subdivision need not bear a tab or sticker to indicate the month or year of registration if the motor vehicle carries the registration certificate issued under section 168.11 at all times when the motor vehicle is operated on the public highways. deleted text end deleted text begin (f) deleted text end new text begin (e) new text end The commissioner may charge a fee for receiving an application and assigning original plate numbers. Sec. 6. Minnesota Statutes 2024, section 168.12, subdivision 5, is amended to read: Subd. 5. Additional fee. (a) In addition to any fee otherwise authorized or any tax otherwise imposed upon any vehicle, the payment of which is required as a condition to the issuance of any plate or plates, the commissioner deleted text begin shall deleted text end new text begin must new text end impose the fee specified in paragraph (b) deleted text begin that is calculated to cover the cost of manufacturing and issuing the plate or plates deleted text end , except for plates issued to disabled veterans as defined in section 168.031 and plates issued pursuant to section 168.124 , 168.125 , or 168.27 , subdivisions 16 and 17, for passenger automobiles. The commissioner deleted text begin shall deleted text end new text begin must new text end issue graphic design plates only for vehicles registered pursuant to section 168.017 and recreational vehicles registered pursuant to section 168.013, subdivision 1g . (b) Unless otherwise specified or exempted by statute, the following plate and deleted text begin validation deleted text end sticker fees apply for the original, duplicate, or replacement issuance of a plate in a plate year: License deleted text begin Plate deleted text end new text begin Plates new text end Single Double Regular and Disability $ 13.50 $ 15.50 Special $ 13.50 $ 15.50 Personalized (Replacement) $ 13.50 $ 15.50 Collector Category $ 13.50 $ 15.50 Emergency Vehicle Display $ 3.00 $ 6.00 Utility Trailer Self-Adhesive $ 2.50 Vertical Motorcycle Plate $ 100.00 NA Replacement Dealer Plates $ 5.25 Replacement Tax Exempt Plates $ 5.25 Stickers Duplicate deleted text begin year deleted text end $ 1.50 $ 1.50 International Fuel Tax Agreement $ 2.50 (c) For vehicles that require two of the categories in paragraph (b), the registrar deleted text begin shall deleted text end new text begin must new text end only charge the higher of the two fees and not a combined total. Sec. 7. Minnesota Statutes 2024, section 168.123, subdivision 1, is amended to read: Subdivision 1. General requirements; fees. (a) On payment of a fee in the amount specified for special plates under section 168.12, subdivision 5 , for each set of two plates, or for a single plate in the case of a motorcycle plate, payment of the registration tax required by law, and compliance with other applicable laws relating to vehicle registration and licensing, as applicable, the commissioner deleted text begin shall deleted text end new text begin must new text end issue: (1) special veteran's plates to an applicant who served in the active military service in a branch of the armed forces of the United States or of a nation or society allied with the United States in conducting a foreign war, was discharged under honorable conditions, and is a registered owner of a passenger automobile, recreational motor vehicle, or one-ton pickup truck, but which is not a commercial motor vehicle as defined in section 169.011, subdivision 16 ; or (2) a veteran's special motorcycle plate as described in subdivision 2, paragraph (a), (e), (f), (h), (i), (j), or (m), or another special plate designed by the commissioner to an applicant who is a registered owner of a motorcycle and meets the criteria listed in this paragraph and in subdivision 2, paragraph (a), (e), (f), (h), (i), (j), or (m). Plates issued under this clause must be the same size as regular motorcycle plates. Special motorcycle license plates issued under this clause are not subject to section 168.1293 . (b) The additional fee deleted text begin is payable deleted text end for each set of veteran's plates deleted text begin , deleted text end is payable deleted text begin only deleted text end when the plates are issued deleted text begin , and is not payable in a year in which stickers are issued instead of plates deleted text end . (c) The veteran must have a certified copy of the veteran's discharge papers, indicating character of discharge, at the time of application. If an applicant served in the active military service in a branch of the armed forces of a nation or society allied with the United States in conducting a foreign war and is unable to obtain a record of that service and discharge status, the commissioner of veterans affairs may certify the applicant as qualified for the veterans' plates provided under this section. Sec. 8. Minnesota Statutes 2024, section 168.124, subdivision 3, is amended to read: Subd. 3. No fee. The commissioner deleted text begin shall deleted text end new text begin must new text end issue deleted text begin a set of deleted text end Medal of Honor plates to qualified applicants free of charge and the plates must be replaced without charge if they become damaged. deleted text begin In addition, no fee may be charged for a subsequent year when stickers are issued for a motor vehicle listed in subdivision 1 on which the Medal of Honor plates are placed. deleted text end The motor vehicle must be for personal use, not commercial purposes. Sec. 9. Minnesota Statutes 2024, section 168.125, subdivision 1b, is amended to read: Subd. 1b. No fee. The commissioner deleted text begin shall deleted text end new text begin must new text end issue deleted text begin a set of deleted text end EX-POW plates, or a single plate for a motorcycle, to qualified applicants, free of charge, and deleted text begin shall deleted text end new text begin must new text end replace them without charge if they become damaged. deleted text begin In addition, no fee may be charged for a subsequent year when stickers are issued for that motor vehicle on which the EX-POW plates are placed. deleted text end Sec. 10. Minnesota Statutes 2024, section 168.127, subdivision 1, is amended to read: Subdivision 1. Unique registration category. (a) A unique registration category is established for vehicles and trailers of a fleet. Vehicles registered in the fleet must be issued a distinctive license plate. The new text begin fleet license plate must bear the inscription "FLEET REG" and otherwise the new text end design and size of the deleted text begin fleet license deleted text end plate must be determined by the commissioner. (b) A deputy registrar may issue replacement license plates for qualified vehicles in a registered fleet pursuant to section 168.29 . Sec. 11. Minnesota Statutes 2024, section 168.127, subdivision 5, is amended to read: Subd. 5. Renewal of fleet registration. On the renewal of a fleet registration, the registrant must pay full licensing fees for every vehicle registered in the preceding year unless the vehicle has been properly deleted from the fleet. In order to delete a vehicle from a fleet, the fleet registrant must surrender to the commissioner the registration card and license plates. The commissioner may authorize alternative methods of deleting vehicles from a fleet, including destruction of the license plates and registration cards. If the card or license plates are lost or stolen, the fleet registrant must submit a sworn statement stating the circumstances for the inability to surrender the card deleted text begin , stickers, deleted text end and license plates. A fleet registrant who fails to renew the licenses issued under this section or fails to report the removal of vehicles from the fleet within 30 days of the vehicles' removal must pay a penalty of 20 percent of the total tax due on the fleet. The penalty must be paid within 30 days after it is assessed. Sec. 12. Minnesota Statutes 2024, section 168.15, subdivision 1, is amended to read: Subdivision 1. Transfer of ownership. (a) Upon the transfer of ownership, destruction, theft, dismantling, or permanent removal by the owner from this state of any vehicle registered in accordance with this chapter, the right of the owner of the vehicle to use the registration certificate and plates assigned to the vehicle expires. (b) When the ownership of a vehicle is transferred to another person required to register the vehicle in this state, the transferor deleted text begin shall deleted text end new text begin must new text end assign the registration tax paid to the credit of the transferee unless the deleted text begin registration stickers deleted text end new text begin license plates new text end are surrendered to the commissioner before the first day of the new registration period. (c) When seeking to become the owner by gift, trade, or purchase of any vehicle for which a registration certificate has been issued under this chapter, a person deleted text begin shall deleted text end new text begin must new text end join with the registered owner in transmitting with the application for transfer of ownership, the registration certificate, with the assignment and notice of sale duly executed. (d) In case of loss of the title or certificate of registration of a vehicle not subject to section 325E.15 , the person deleted text begin shall deleted text end new text begin must new text end make application to the commissioner with proof of loss of the title as specified in section 168A.09 and assign a notice of sale of the vehicle on the application for title as specified in section 168A.04 . (e) Upon the transfer of any vehicle by a manufacturer or dealer, for use within the state, whether by sale, lease, or otherwise, the transferor deleted text begin shall deleted text end new text begin must new text end , within ten days after the transfer, file with the commissioner (1) a notice containing the date of transfer, a description of the vehicle, and the transferee's name and residence address in the state or if not a natural person then the transferee's business and mailing address, and (2) the transferee's application for registration. Sec. 13. Minnesota Statutes 2024, section 168.16, is amended to read: 168.16 REGISTRATION TAX REFUND; APPROPRIATION. (a) After the registration tax upon any vehicle has been paid for any registration period, refund must be made for errors made in computing the registration tax or fees and for the error on the part of an owner who may in error have registered a vehicle that was not before, nor at the time of registration, nor at any time thereafter during the preceding registration period, subject to registration tax in this state as provided by section 168.012 . (b) Unless otherwise provided in this chapter, a claim for a refund of an overpayment of registration tax must be filed within 3-1/2 years from the date of payment. (c) The former registered owner of a transferred vehicle, by an assignment in writing endorsed upon the registration certificate and delivered to the commissioner within the time provided in this subdivision, deleted text begin shall deleted text end new text begin must new text end assign, except for vehicles registered under section 168.187 , to the new owner the right to have the tax paid by the former registered owner accredited to the new owner who duly registers the vehicle unless the deleted text begin registration stickers deleted text end new text begin license plates new text end are surrendered to the commissioner before the first day of the new registration period. (d) Any owner is entitled to a refund of the unused portion of the registration tax paid on the owner's vehicle upon filing a claim, verified by the commissioner, if the vehicle is: (1) declared by an insurance company to be permanently destroyed due to accident, fire, or an Act of God as defined in section 115B.02 ; or (2) sold to the federal government, the state, or a political subdivision of the state. (e) The refund must be equal to the sum of the remaining registration tax attributable for the registration period after the month in which the plates and certificate of registration or title were returned to the commissioner. (f) There is deleted text begin hereby deleted text end appropriated to the persons entitled to a refund, from the fund or account in the state treasury to which the money was credited, an amount sufficient to make the refund and payment. Sec. 14. Minnesota Statutes 2024, section 168.187, subdivision 12, is amended to read: Subd. 12. Registration of proratable vehicles. (a) The commissioner of public safety deleted text begin shall deleted text end new text begin must new text end register proratable vehicles of a fleet upon application and payment of registration fees as provided in subdivision 11. Payment of an additional fee for each vehicle so registered may be required by the commissioner in an amount not to exceed $5 per motor powered vehicle, for issuance of a plate deleted text begin , sticker, deleted text end or other suitable identification for each vehicle. A registration card deleted text begin shall deleted text end new text begin must new text end be issued for each vehicle registered deleted text begin , which shall deleted text end new text begin that new text end appropriately deleted text begin identify deleted text end new text begin identifies new text end the vehicle for which it is issued. deleted text begin Such deleted text end new text begin The new text end registration card deleted text begin shall deleted text end new text begin must new text end be carried in or upon the vehicle for which it has been issued, at all times, except that the registration cards for all vehicles in a combination of vehicles may be carried in or upon the vehicle supplying the motive power. (b) Fleet vehicles registered as provided in paragraph (a) deleted text begin shall be deemed deleted text end new text begin are new text end fully registered in this state for any type of movement or operation, except that when a state grant of authority is required for any movement or operation, deleted text begin no such vehicle shall deleted text end new text begin a vehicle must not new text end be operated in this state unless new text begin (1) new text end the owner or operator deleted text begin thereof deleted text end has been granted authority or rights deleted text begin therefore deleted text end by the state new text begin to do so, new text end and deleted text begin unless said deleted text end new text begin (2) the new text end vehicle is being operated in conformity with deleted text begin such deleted text end new text begin the new text end authority or rights. new text begin (c) new text end No registration under this section deleted text begin shall excuse deleted text end new text begin excuses new text end the owner or operator of any vehicle from compliance with the laws of this state, except those requiring registration and licensing. Sec. 15. Minnesota Statutes 2024, section 168.27, subdivision 28, is amended to read: Subd. 28. Distribution of plates deleted text begin and stickers deleted text end . new text begin (a) new text end The commissioner may distribute deleted text begin registration deleted text end new text begin license new text end plates deleted text begin and stickers deleted text end to be held and issued by new and used motor vehicle dealers. new text begin (b) new text end A dealer may issue deleted text begin registration deleted text end new text begin license new text end plates deleted text begin and stickers deleted text end only in conjunction with the sale of a vehicle by the dealer. A dealer permitted to hold and issue deleted text begin registration deleted text end new text begin license new text end plates deleted text begin and stickers deleted text end must be equipped with electronic transmission technology and trained in its use. Before receiving deleted text begin registration deleted text end new text begin license new text end plates deleted text begin and stickers deleted text end under this subdivision, a dealer must adopt and implement security and record-keeping requirements satisfactory to the commissioner. new text begin (c) new text end The commissioner may revoke the authority granted new text begin to a dealer new text end under this subdivision for any violation of law or rule governing the issuance of deleted text begin registration deleted text end new text begin license new text end plates deleted text begin and stickers deleted text end , any violation of the dealer's security and record-keeping plan, or any other action that in the commissioner's opinion adversely affects the registration system. The dealer is financially responsible for the cost and tax value of any unaccounted inventory. Sec. 16. Minnesota Statutes 2024, section 168.29, is amended to read: 168.29 REPLACEMENT PLATES. (a) In the event of the defacement, loss, or destruction of any deleted text begin number deleted text end new text begin license new text end plates deleted text begin or validation stickers deleted text end , the commissioner deleted text begin , deleted text end new text begin must issue a new set of plates new text end upon receiving and filing a sworn statement of the vehicle owner deleted text begin , deleted text end setting forth the circumstances of the defacement, loss, destruction, or theft deleted text begin of the number plates or validation stickers deleted text end , together with any defaced plates deleted text begin or stickers deleted text end and the payment of a fee calculated to cover the cost of replacement deleted text begin , must issue a new set of plates or stickers deleted text end . (b) A licensed motor vehicle dealer may only apply for replacement plates upon application for a certificate of title in the name of a new owner or the dealer. The commissioner must issue a new set of plates deleted text begin or validation stickers deleted text end upon application for title and registration after removal of plates pursuant to section 168A.11, subdivision 2 . (c) Plates issued under this section are subject to section 168.12 new text begin . new text end (d) The commissioner must note on the commissioner's records the issue of new deleted text begin number deleted text end new text begin license new text end plates and must attempt to cancel and call in the original plates so as to insure against their use on another motor vehicle. (e) Duplicate registration certificates plainly marked as duplicates may be issued in like cases upon the payment of a $1 fee. Fees collected under this section must be deposited in the driver and vehicle services operating account under section 299A.705, subdivision 1 . Sec. 17. Minnesota Statutes 2024, section 168.31, subdivision 4, is amended to read: Subd. 4. Installments; registration generally. (a) If the tax for a vehicle assessed under section 168.013, subdivision 1c , 1d, 1e, or 1g, amounts to more than $400, the owner may pay the tax by installments. (b) The owner deleted text begin shall deleted text end new text begin must new text end tender with the application for registration one-third of the annual tax due or $400, whichever is greater, plus any penalties or arrears, plus a fee of $10. Instead of this fee, the applicant may furnish a bond, bank letter of credit, or certificate of deposit approved by the registrar of motor vehicles, for the total of the tax still due. The amount of the bond, letter of credit, or certificate of deposit may include any penalties assessed. The bond, letter of credit, or certificate of deposit must be for the benefit of the state for monetary loss caused by failure of the vehicle owner to pay delinquent license fees and penalties. (c) The remainder of the tax due must be paid in two equal installments. The due date of the first installment is July 1, and the second installment is due November 1. deleted text begin (d) When the applicant elects to pay the administrative fee, the registrar shall issue to the applicant validation stickers indicating the expiration date of a registration. When the applicant elects to furnish a bond, bank letter, or letter of deposit, the registrar shall issue regular validation stickers for the registration year. deleted text end deleted text begin (e) deleted text end new text begin (d) new text end If an owner of a vehicle fails to pay an installment on or before its due date, the vehicle must not be used on the public streets or highways in this state until the installment or installments of the tax remaining due on the vehicle have been paid in full for the licensed year together with a penalty at the rate of $1 per day for the remainder of the month in which the balance of the tax becomes due and $4 a month for each succeeding month or fraction of a month during which the balance of the tax remains unpaid. Upon the payment of the balance of the tax and the penalties, the registrar deleted text begin shall deleted text end new text begin must new text end issue a registration certificate to the owner of the vehicle in the manner provided by law. The registrar deleted text begin shall deleted text end new text begin must new text end deny installment payment privileges provided in this subdivision in the subsequent year to any owner on any or all vehicles of the owner who during the current year fails to pay any installment due within one month after the due date. Sec. 18. Minnesota Statutes 2024, section 168.381, subdivision 4, is amended to read: Subd. 4. Appropriations. (a) Money appropriated to the Department of Public Safety to procure the plates for any fiscal year or years is available for allotment, encumbrance, and expenditure from and after the date of the enactment of the appropriation. Materials and equipment used in the manufacture of plates are subject only to the approval of the commissioner. (b) This section contemplates that money to be appropriated to the Department of Public Safety to carry out the terms and provisions of this section will be appropriated by the legislature from the highway user tax distribution fund. (c) A sum sufficient is appropriated annually from the driver and vehicle services operating account under section 299A.705 to the commissioner to pay the costs of purchasing, delivering, and mailing plates deleted text begin , registration stickers, deleted text end and registration notices. Sec. 19. Minnesota Statutes 2024, section 168B.035, subdivision 3, is amended to read: Subd. 3. Towing prohibited. (a) A towing authority may not tow a motor vehicle because: (1) the vehicle deleted text begin displays deleted text end registration deleted text begin validation stickers that have deleted text end new text begin has new text end been expired for less than 90 days; (2) the vehicle is at a parking meter on which the time has expired; or (3) the vehicle is identified in conjunction with a citation to the vehicle owner or lessee for (i) a violation under section 169.06, subdivision 10 , or (ii) a violation under section 169.14, subdivision 13 . (b) A towing authority may tow a motor vehicle, notwithstanding paragraph (a), if: (1) the vehicle is parked in violation of snow emergency regulations; (2) the vehicle is parked in a rush-hour restricted parking area; (3) the vehicle is blocking a driveway, alley, or fire hydrant; (4) the vehicle is parked in a bus lane, or at a bus stop, during hours when parking is prohibited; (5) the vehicle is parked within 30 feet of a stop sign and visually blocking the stop sign; (6) the vehicle is parked in a disability transfer zone or disability parking space without a disability parking certificate or disability license plates; (7) the vehicle is parked in an area that has been posted for temporary restricted parking (i) at least 12 hours in advance in a home rule charter or statutory city having a population under 50,000, or (ii) at least 24 hours in advance in another political subdivision; (8) the vehicle is parked within the right-of-way of a controlled-access highway or within the traveled portion of a public street when travel is allowed there; (9) the vehicle is unlawfully parked in a zone that is restricted by posted signs to use by fire, police, public safety, or emergency vehicles; (10) the vehicle is unlawfully parked on property at the Minneapolis-St. Paul International Airport owned by the Metropolitan Airports Commission; (11) a law enforcement official has probable cause to believe that the vehicle is stolen, or that the vehicle constitutes or contains evidence of a crime and impoundment is reasonably necessary to obtain or preserve the evidence; (12) the driver, operator, or person in physical control of the vehicle is taken into custody and the vehicle is impounded for safekeeping; (13) a law enforcement official has probable cause to believe that the owner, operator, or person in physical control of the vehicle has failed to respond to five or more citations for parking or traffic offenses; (14) the vehicle is unlawfully parked in a zone that is restricted by posted signs to use by taxicabs; (15) the vehicle is unlawfully parked and prevents egress by a lawfully parked vehicle; (16) the vehicle is parked, on a school day during prohibited hours, in a school zone on a public street where official signs prohibit parking; or (17) the vehicle is a junk, abandoned, or unauthorized vehicle, as defined in section 168B.011 , and subject to immediate removal under this chapter. (c) A violation under section 169.06, subdivision 10 , or 169.14, subdivision 13 , is not a traffic offense under paragraph (b), clause (13). Sec. 20. new text begin EFFECTIVE DATE. new text end new text begin This article is effective October 1, 2026. new text end APPENDIX Repealed Minnesota Statutes: 26-06669 168.37 PLATE TABS OR STICKERS; MONTHLY REGISTRATION SYSTEM. Subd. 3. Design. The registrar may rearrange the words and figures on plates issued for vehicles under the monthly series system of registration to provide space on the plates for tabs or stickers which the registrar shall issue to indicate the period of registration. 169.79 VEHICLE REGISTRATION; DISPLAYING LICENSE PLATES. Subd. 8. Plate registration stickers. As viewed facing the plates: (a) License plates issued to vehicles registered under section 168.017 must display the month of expiration in the lower left corner of each plate and the year of expiration in the lower right corner of each plate. (b) License plates issued to vehicles registered under section 168.127 must display either fleet registration validation stickers in the lower right corner of each plate or distinctive license plates, issued by the registrar, with "FLEET REG" displayed on the bottom center portion of each plate. (c) License plates issued after July 1, 2008, requiring validation must display the month of expiration in the lower left corner of each plate and the year of expiration in the lower right corner of the plate.