Motor vehicle provisions passed

The House passed a bill that would streamline regulations that pertain to automobile dealerships.

Sponsored by Rep. Bruce Vogel (R-Willmar), HF493 would, in part, allow the keeping of vehicle titles in a centralized location in Minnesota for a multi-location auto dealership group, if a request to do so is approved by the Department of Public Safety. Supporters said this would create efficiencies when it comes to storing records.

The bill, passed 124-5 May 5, would also clear up vehicle registration when coming out of a daily rental fleet, such as when companies like Avis or Hertz want to sell vehicles they’d been using as rentals.

Fleet companies have the ability to register their vehicles for a shorter period than the usual 12 months, such as for four months at a time. However, when a dealer sells a vehicle the registration has to be for 12 months, so there has been some confusion about when a vehicle’s registration needs to be renewed by the customer who bought the vehicle.

The bill eliminates a provision that a vehicle title be stamped with the end date of the registration period when the vehicle is used for rentals by a vehicle lessor and registered for less than 12 months.

“This bill says if Avis bought eight months of registration and then we want to sell the vehicle to a customer, then we sell them 12 months of registration no matter what,” Alyssa Schlander, director of government affairs for the Minnesota Auto Dealers Association, told a House committee. “It’s just an easier way of calculating the registration tax for those particular kinds of vehicles.”

The bill awaits action by the full Senate. Sen. David Senjem (R-Rochester) is the Senate sponsor.