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A bill for an act
relating to transportation; modifying requirements governing electronic motor
vehicle documents; requiring certain electronic titling and lien release; providing
for certain electronic transmission and signatures related to motor vehicles;
modifying rulemaking authority; making technical changes; amending Minnesota
Statutes 2024, sections 168.33, subdivision 8a; 168A.06; 168A.09, subdivision 1,
by adding a subdivision; 168A.14, as amended; 168A.18; 168A.20; 168A.24;
168A.29, subdivision 1; proposing coding for new law in Minnesota Statutes,
chapter 168A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 168.33, subdivision 8a, is amended to read:
Subd. 8a.
Electronic transmission.
(a)
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If
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Subject to section 168A.50, subdivision 2,
paragraph (d),
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the commissioner
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accepts
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may accept, and beginning October 1, 2027, must
accept,
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electronic transmission of a motor vehicle transfer and registration
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or other document
required under this chapter
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by
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(1)
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a new or used motor vehicle dealer,
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and (2) a user
authorized by the commissioner.
new text end
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(b)
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A deputy registrar who is equipped with electronic transmission technology and
trained in its use must
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receive the filing fee provided for in subdivision 7 and
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review the
transfer of each new or used motor vehicle to determine its genuineness and regularity
before issuance of a certificate of title, and must receive and retain the filing fee under
subdivision 7, paragraph (a), clause (2).
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(b)
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(c)
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The commissioner must establish reasonable performance, security, technical,
and financial standards to approve companies that provide computer software and services
to motor vehicle dealers
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and other authorized users
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to electronically transmit vehicle title
transfer and registration information
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and documents
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. An approved company must be offered
access to department facilities, staff, and technology on a fair and reasonable basis. An
approved company must not have an ownership interest with a deputy registrar or a driver's
license agent. An approved company is not eligible to be appointed by the commissioner
as a deputy registrar or a driver's license agent.
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(d) A person who transmits a physical document in electronic form must retain the
physical document in the manner prescribed by the commissioner. Information or a document
that is not produced in physical form is not required to be converted to physical form and
must be retained for a period of time as determined by the commissioner. Subject to section
168A.50, subdivision 2, paragraph (d), a person who transmits a document electronically
as provided under this subdivision is not required to provide the document in physical form
to the commissioner or a deputy registrar as a routine course of business.
new text end
Sec. 2.
Minnesota Statutes 2024, section 168A.06, is amended to read:
168A.06 DELIVERY OF CERTIFICATE.
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(a)
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The
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commissioner must deliver a
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certificate of title
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must be delivered
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:
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(1) before October 1, 2027,
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to the owner named in
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it. Secured parties, if any, must be
mailed notification of their security interest filed.
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the certificate; or
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(2) on or after October 1, 2027, by electronic transmission to the first secured party
named in the certificate, or by mail to the named owner if there is no secured party.
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(b) The commissioner must notify any other secured parties of a secured party's security
interest and of an electronic transmission under this section.
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(c) For a certificate of title electronically transmitted to a secured party, the commissioner
must notify the owner that a security interest has been filed and that the certificate of title
has been delivered to a secured party and must issue a confirmation of ownership document
to the owner. A confirmation of ownership document is not a certificate of title and may
not be used to transfer ownership of the vehicle.
new text end
Sec. 3.
Minnesota Statutes 2024, section 168A.09, subdivision 1, is amended to read:
Subdivision 1.
Application, issuance, form, bond, and notice.
(a) In the event a
certificate of title is lost, stolen, mutilated, destroyed, or becomes illegible, the owner or
legal representative of the owner named in the certificate may submit an application to the
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department
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commissioner
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or a deputy registrar for a duplicate in a format prescribed by the
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department
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commissioner
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.
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Subject to subdivision 5,
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the
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department
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commissioner
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or
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a
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deputy registrar must issue a duplicate certificate of title
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and provide notifications in
conformance with section 168A.06
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if satisfied that the applicant is entitled to the duplicate
certificate of title.
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The duplicate certificate of title must be plainly marked as a duplicate
and mailed or delivered to the owner.
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The
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department
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commissioner
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or
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a
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deputy registrar
must indicate in the driver and vehicle information system records that a duplicate certificate
of title has been issued. As a condition to issuing a duplicate certificate of title, the
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department
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commissioner
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may require a bond from the applicant in the manner and format prescribed
in section
168A.07, subdivision 1
, clause (2).
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(b)
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The duplicate certificate of title must
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be plainly marked as a duplicate and
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contain
the legend: "This duplicate certificate of title may be subject to the rights of a person under
the original certificate."
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(b)
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(c)
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The commissioner must allow duplicate certificate of title issuance by a deputy
registrar, subject to procedures established by the commissioner.
Sec. 4.
Minnesota Statutes 2024, section 168A.09, is amended by adding a subdivision to
read:
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Subd. 5.
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Issuance with security interest.
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For an original certificate of title issued on
or after October 1, 2027, the commissioner or a deputy registrar must not issue a duplicate
certificate of title when a security interest is present unless the applicant presents satisfactory
evidence that the security interest has been satisfied or the applicant is the security interest
holder.
new text end
Sec. 5.
Minnesota Statutes 2024, section 168A.14, as amended by Laws 2025, chapter 20,
section 164, is amended to read:
168A.14 NEW CERTIFICATES ISSUED, OLD CERTIFICATES SURRENDERED.
Subdivision 1.
New certificate after assignment.
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The department,
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Upon receipt of a
properly assigned certificate of title, with an application for a new certificate of title, the
required fees and taxes, and any other documents required by law,
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shall
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the commissioner
must
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issue a new certificate of title in the name of the transferee as owner and list any
secured party named on
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it
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the certificate
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and
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deliver it to the owner. The secured party or
parties must be issued a notification that the security interest has been filed
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must perform
issuances and notifications as provided in section 168A.06
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.
Subd. 1a.
New certificate after security interest filed.
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The department,
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Upon receipt
of an affidavit as provided in section
524.3-1201
, paragraph (a), an application for a new
certificate of title, and any required fee,
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shall
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the commissioner must
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issue a new certificate
of title in the name of the successor as owner
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, listing
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and list
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any secured party on
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it
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the
certificate and must perform issuances and notifications as provided in section 168A.06
new text end
.
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The department shall deliver the certificate to the successor and shall issue any secured
party a notification that the security interest has been filed.
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Subd. 2.
New certificate after nonvoluntary transfer.
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The department,
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Upon receipt
of an application for a new certificate of title by a transferee other than by voluntary transfer,
with proof of the transfer, the required fees and taxes, and any other documents required
by law,
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shall
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the commissioner must
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issue a new certificate of title in the name of the
transferee as owner
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and must perform issuances and notifications as provided in section
168A.06
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.
Subd. 3.
Surrendered certificate.
The
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department shall
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commissioner must
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file and
retain for seven years every surrendered certificate of title, the file to be maintained so as
to permit the tracing of title of the vehicle.
Sec. 6.
Minnesota Statutes 2024, section 168A.18, is amended to read:
168A.18 DUTIES OF PARTIES RELATING TO SECURITY INTEREST.
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(a) The requirements under this section apply
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if an owner creates a security interest in
a vehicle
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:
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.
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(a)
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(b)
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The owner
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shall
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must
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immediately execute the application in the space provided
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therefor
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on the certificate of title, or in a format the
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department
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commissioner
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prescribes,
to name the secured party on the certificate, showing the name and address of the secured
party, and cause the certificate, application, and the required fees and taxes to be delivered
to the secured party.
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(b)
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(c)
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The secured party
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shall
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must
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immediately cause the certificate, application, and
the required fees and taxes to be mailed or delivered to the
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department
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commissioner
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.
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(c)
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(d)
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A second or subordinate secured party does not affect the rights of the first secured
party under a security agreement.
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(d)
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(e)
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Upon receipt of the certificate of title, application, and the required fees and taxes,
the
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department shall
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commissioner must
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issue a new certificate containing the name and
address of the new secured party
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,
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and
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mail or deliver the certificate to the owner. The secured
party or parties shall be notified that the security interest has been recorded
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must perform
issuances and notifications as provided in section 168A.06
new text end
.
Sec. 7.
Minnesota Statutes 2024, section 168A.20, is amended to read:
168A.20 SATISFACTION OF SECURITY INTEREST.
Subdivision 1.
Certificate with latest secured party; release.
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(a)
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Upon the satisfaction
of a security interest in a vehicle for which the certificate of title is in the possession of the
secured party,
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including a certificate of title electronically transmitted to or held by a secured
party,
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the secured party
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shall
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must
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within 15 days, or seven days if satisfied by a dealer
licensed under section
168.27, subdivision 2
, 3, or 4, execute a release of security interest
in the
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space provided therefor on the certificate or as the department prescribes, and mail
or
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deliver the certificate and release
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manner prescribed by the commissioner and must:
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(1) before October 1, 2027, deliver the certificate and release
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to the next secured party
named
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therein
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on the certificate of title
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, or if none, to the owner or any person who delivers
to the secured party an authorization from the owner to receive the certificate
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; or
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(2) comply with requirements in subdivision 6
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.
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(b) Following a release of security interest under paragraph (a), clause (1),
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the owner,
other than a dealer holding the vehicle for resale,
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shall
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must
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promptly cause the certificate
and release, together with the required fees and taxes, to be mailed or delivered to the
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department
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commissioner
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,
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which shall
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and the commissioner must
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release the secured party's
rights on the certificate or issue a new certificate.
Subd. 2.
Certificate with prior secured party; release.
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(a)
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Upon the satisfaction of a
security interest in a vehicle for which the certificate of title is in the possession of a prior
secured party, the secured party whose security interest is satisfied
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shall
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must
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within 15
days, or seven days if satisfied by a dealer licensed under section
168.27, subdivision 2
, 3,
or 4, execute a release
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of security interest
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in the
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format the department prescribes
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manner
prescribed by the commissioner
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and
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deliver the release
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must:
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(1) before October 1, 2027, deliver the release
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to the owner or any person who delivers
to the secured party an authorization from the owner to receive
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it
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the release; or
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(2) comply with requirements in subdivision 6
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.
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(b) Following a release of security interest under paragraph (a), clause (1),
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the secured
party in possession of the certificate of title
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shall
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must
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either
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: (1)
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deliver the certificate to
the owner, or the person authorized by the owner, for delivery to the
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department,
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commissioner;
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or
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(2)
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upon receipt of the release, mail or deliver
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it
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the release
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with the
certificate to the
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department, which shall
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commissioner. The commissioner must
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release
the subordinate secured party's rights on the certificate or issue a new certificate.
Subd. 3.
Certificate with owner.
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(a)
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Upon the satisfaction of a security interest in a
vehicle for which the certificate of title is in the possession of the owner, the secured party
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shall
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must
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within 15 days, or seven days if satisfied by a dealer licensed under section
168.27, subdivision 2
, 3, or 4, execute a release of security interest in the
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format
deleted text end
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manner
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prescribed by the
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department
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commissioner
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and
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mail or deliver the notification with release
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new text begin
must:
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(1) before October 1, 2027, deliver the notification with release
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to the owner or any
person who delivers to the secured party an authorization from the owner to receive the
release
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; or
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(2) comply with requirements in subdivision 6
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.
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(b)
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The secured party may notify the
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registrar
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commissioner
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of the satisfaction of lien
in a manner prescribed by the
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department
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commissioner
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.
Subd. 4.
Satisfaction of lien for child support; release.
If the secured party is a public
authority or a child support or maintenance obligee with a lien under section
168A.05,
subdivision 8
, upon either
new text begin
(1)
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the satisfaction of a security interest in a vehicle for which
the certificate of title is in the possession of the owner, or
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(2)
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the execution by the owner
of a written payment agreement determined to be acceptable by the court, a child support
magistrate, the public authority, or the obligee, within 15 days, or seven days if satisfied by
a dealer licensed under section
168.27, subdivision 2
, 3, or 4, the secured party
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shall
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must
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execute a release of security interest in the
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format
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manner
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prescribed by the
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department
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commissioner
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and
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mail or deliver the notification with release
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new text begin
must:
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(1) before October 1, 2027, deliver the notification with release
new text end
to the owner or any
person who delivers to the secured party an authorization from the owner to receive the
release
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; or
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(2) comply with requirements in subdivision 6
new text end
.
Subd. 5.
Satisfaction of automobile lien seven years old; release.
A security interest
perfected under this chapter may be canceled seven years from the perfection date for a
passenger automobile, as defined in section
168.002
, subdivision 24, upon the request of
the owner of the passenger automobile, if the owner has paid the lien in full and is unable
to locate the lienholder to obtain a lien release. At a minimum, the owner must send a letter
to the lienholder by certified mail, return receipt requested, requesting a lien release. If the
owner is unable to obtain a lien release by sending a letter by certified mail, then the owner
must present to the
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department
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commissioner
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or
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its
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an
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agent the returned letter as evidence
of the attempted contact. This subdivision applies only to: (1) vehicle owners who are
individuals; or (2) dealers licensed under section
168.27, subdivision 2
or 3, who are
purchasing a vehicle from an individual owner for resale.
new text begin
Subd. 6.
new text end
new text begin
Electronic lien release.
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new text begin
(a) On or after October 1, 2027, the satisfaction of a
security interest in a vehicle must be electronically transmitted by the secured party to the
commissioner and must include the name and address of the person satisfying the security
interest.
new text end
new text begin
(b) When security interests and satisfactions are transmitted electronically, the
commissioner may defer issuance of a certificate of title until all security interests have
been satisfied. Upon satisfaction of all security interests, the commissioner must mail a
clear certificate of title to the owner of the vehicle. In a subsequent transfer of ownership
of the motor vehicle, it is presumed that the motor vehicle title is subject to a security interest
until the title to be issued pursuant to this subdivision is received by the person satisfying
the security interest.
new text end
Sec. 8.
Minnesota Statutes 2024, section 168A.24, is amended to read:
168A.24 DUTIES AND POWERS OF DEPARTMENT.
Subdivision 1.
Forms.
The
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department shall
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commissioner must
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prescribe and provide
suitable forms of applications, certificates of title, notices of security interests, and all other
notices and forms necessary to carry out the provisions of
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sections
168A.01
to
168A.31
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new text begin
this
chapter
new text end
and
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shall
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must
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determine the format
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in which
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of
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the forms
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will appear
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.
Subd. 2.
Powers; rules.
The
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department
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new text begin
commissioner
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may:
(1) make necessary investigations to procure information required to carry out the
provisions of
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sections
168A.01
to
168A.31
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new text begin
this chapter
new text end
;
(2) assign a new identifying number to a vehicle if
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it
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the vehicle
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has none, or
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its
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new text begin
the
vehicle's
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identifying number is destroyed or obliterated;
(3) adopt and enforce such rules as may be necessary to carry out the provisions of
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sections
168A.01
to
168A.31
deleted text end
new text begin
this chapter, including but not limited to rules that establish
and administer an electronic lien notification and release system that allows alternative
methods of proof of satisfaction of a security interest
new text end
;
(4) adopt and enforce such rules as the
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department
deleted text end
new text begin
commissioner
new text end
may deem necessary
or appropriate to require the payment of fees imposed by section
168.54
, as a condition for
deferring application for a certificate of title by a dealer or secured party in cases provided
for in section
168A.11
or
168A.12, subdivision 2
; and
(5) adopt a rule
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which
deleted text end
new text begin
that
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may require the owner or secured party
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, as the case may be,
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to deposit the certificate of title with the
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department
deleted text end
new text begin
commissioner
new text end
during the period when
the vehicle for which
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such
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new text begin
the
new text end
certificate was issued is registered pursuant to section
168.31,
subdivision 4
, or is subject to the lien imposed by section
168.31, subdivision 6
.
new text begin
Subd. 3.
new text end
new text begin
Electronic database.
new text end
new text begin
(a) Beginning October 1, 2027, the commissioner must
maintain electronic records in the driver and vehicle information system on motor vehicles
and manufactured homes, notices and satisfactions of security interests, and title transactions.
new text end
new text begin
(b) At a minimum, for the records under paragraph (a), a motor vehicle or manufactured
home must be identifiable through the name of vehicle owner, title number, and vehicle
identification number or manufacturer's motor number, and a title transaction must be
identifiable through the vehicle identification number.
new text end
new text begin
Subd. 4.
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new text begin
Electronic documents.
new text end
new text begin
(a) Subject to section 168A.50, subdivision 2, paragraph
(d), the commissioner may accept any record, forms, or documentation provided for under
this chapter by electronic means.
new text end
new text begin
(b) The commissioner may collect email addresses and use email in lieu of the United
States Postal Service as a method of notification. The commissioner must send any notice
regarding the potential forfeiture or foreclosure of an interest in property via the United
States Postal Service.
new text end
Sec. 9.
Minnesota Statutes 2024, section 168A.29, subdivision 1, is amended to read:
Subdivision 1.
Amounts.
(a) The
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department
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new text begin
commissioner
new text end
must be paid the following
fees:
(1) for filing an application for and the issuance of an original certificate of title
new text begin
except
as provided in clause (2), including a certificate of title issued to the owner after the certificate
was electronically transmitted to a secured party and all security interests have been satisfied
new text end
,
$8.25, of which $4.15 must be
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paid into
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new text begin
deposited in
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the driver and vehicle services operating
account under section
299A.705, subdivision 1
, and a surcharge of $2.25 must be added to
the fee and
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credited to
deleted text end
new text begin
deposited in
new text end
the driver and vehicle services technology account under
section
299A.705, subdivision 3
;
new text begin
(2) for application and issuance of a certificate of title that is electronically transmitted
to a secured party under section 168A.06, the amounts and in the allocations as specified
in clause (1);
new text end
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(2)
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new text begin
(3)
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for each security interest when first noted upon a certificate of title, including
the concurrent notation of any assignment
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thereof and its
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new text begin
of the security interest and the
security interest's
new text end
subsequent release or satisfaction, $2, except that no fee is due for a
security interest filed by a public authority under section
168A.05, subdivision 8
;
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(3)
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new text begin
(4)
new text end
for each assignment of a security interest when first noted on a certificate of title,
unless noted concurrently with the security interest, $1; and
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(4)
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new text begin
(5)
new text end
for issuing a duplicate certificate of title, $7.25, of which $3.25 must be
deleted text begin
paid into
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new text begin
deposited in
new text end
the driver and vehicle services operating account under section
299A.705,
subdivision 1
, and a surcharge of $2.25 must be added to the fee and
deleted text begin
credited to
deleted text end
new text begin
deposited
in
new text end
the driver and vehicle services technology account under section
299A.705, subdivision
3
.
(b) In addition to the fee required under paragraph (a), clause (1), the
deleted text begin
department
deleted text end
new text begin
commissioner
new text end
must be paid $3.50. The additional $3.50 fee collected under this paragraph
must be deposited in the
deleted text begin
special revenue fund and credited to the
deleted text end
public safety motor vehicle
account established in section
299A.70
.
Sec. 10.
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[168A.50] ELECTRONIC SIGNATURES.
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Subdivision 1.
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Definitions.
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(a) For purposes of this section, the following terms have
the meanings given.
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(b) "Electronic" has the meaning given in section 325L.02, paragraph (e).
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(c) "Electronic signature" means an electronic sound, symbol, or process, attached to or
logically associated with a document, form, physical odometer document, or other record
and executed or adopted by a person with the intent to sign, agree, or otherwise acknowledge
the information and facts to be accurate and correct.
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(d) "Physical odometer document" means a physical document that is a certificate of
title, secure power of attorney, or reassignment document and contains an odometer disclosure
statement printed on paper by a secure printing process or other secure process by any
jurisdiction in compliance with Code of Federal Regulations, title 49, part 580. Physical
odometer document excludes any other form or document, even if the document contains
a space for an odometer reading.
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(e) "Requisite document" means any document, form, physical odometer document, or
record required under this chapter or chapter 168.
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Subd. 2.
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Acceptance of electronic signatures.
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(a) The commissioner must accept
electronic signatures on any requisite document.
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(b) The commissioner must accept a physical odometer document that is converted to
an electronic form by imaging, scanning, or similar process, and is subsequently executed
by an electronic signature. An electronic document under this paragraph is not an electronic
power of attorney or electronic title, as the terms are defined in Code of Federal Regulations,
title 49, section 580.03.
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(c) The commissioner must accept any requisite document with electronic signatures
by:
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(1) electronic means if the commissioner has a process or system available to accept the
document by electronic means; or
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(2) physical means, such that the document is printed to paper.
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(d) For a physical odometer document required to be submitted to the commissioner by
physical means, an electronic document created and executed as provided under paragraph
(b) must be accompanied by a printed copy of the electronic document and the corresponding
physical odometer document in its original format prior to execution by an electronic
signature. This paragraph applies if the physical odometer document is:
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(1) a certificate of title; or
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(2) a secure power of attorney or dealer reassignment that contains physically completed
data or information, such as by handwriting or printing, that preceded the execution by
electronic signature.
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Subd. 3.
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Requirements; limitations.
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(a) The commissioner may require:
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(1) that a document containing an electronic signature include an indication that the
signature is electronic; and
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(2) a certification of authenticity, audit trail, or similar statement or proof of assurance.
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(b) The commissioner must not:
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(1) require an electronic signature process or an electronic signature vendor be certified
by the commissioner before accepting a document that is executed by an electronic signature;
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(2) require a document that has been executed by an electronic signature to be converted
to physical format by printing for any purpose, except when submission by physical means
is required; and
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(3) impose any additional requirements for an electronic signature except as authorized
under this section.
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Subd. 4.
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Electronic signature capture system.
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(a) The system used to capture an
electronic signature must:
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(1) be securely maintained;
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(2) capture and retain user information, including the Internet Protocol address of the
signer and date and time stamp of system access or electronic signature capture; and
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(3) retain all information provided to the system for a period of five years.
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(b) The system or person granting access to the system used to capture an electronic
signature must verify the identity of the user accessing the system.
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(c) Information under paragraph (a), clause (3), must be made available to the
commissioner, other regulatory agencies, or law enforcement upon request.
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Subd. 5.
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Use of electronic signature.
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An electronic signature under this section must
not be used for any purpose other than as indicated by the signer on the document and must
be linked to the respective electronic record to ensure that the signature cannot be excised,
copied, or otherwise transferred unless expressly authorized by the signer.
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Subd. 6.
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Authority.
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(a) Nothing in this section requires, prohibits, or otherwise limits
the ability of the commissioner to provide electronic service, process, system, platform, or
alternative methods to receiving and transmitting electronic data, documents, or records,
including electronic signature capturing or identity verification.
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(b) Nothing in this section requires, prohibits, or otherwise limits the commissioner to
provide or issue an electronic power of attorney or electronic title, as the terms are defined
in Code of Federal Regulations, title 49, section 580.03.
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Subd. 7.
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Application; conflicts.
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(a) The requirements in this section apply beginning
October 1, 2027, and apply to this chapter and chapter 168.
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(b) This section prevails in any conflict arising with another provision in this chapter or
chapter 168. The Uniform Electronic Transactions Act, chapter 325L, prevails in any conflict
with this section and governs any area not expressly addressed in this section.
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Sec. 11.
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REVISOR INSTRUCTION.
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In Minnesota Statutes, chapter 168A, the revisor of statutes must change the phrase
"sections 168A.01 to 168A.31" to "this chapter" wherever the phrase appears in statutes.
In Minnesota Statutes, section 336.9-311, paragraph (a), clause (2), the revisor must change
the phrase "168A.01 to 168A.31" to "chapter 168A." The revisor must make any necessary
grammatical changes or changes to sentence structure necessary to preserve the meaning
of the text as a result of the changes.
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