1.1.................... moves to amend H.F. No. 2187 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 168.27, subdivision 28, is amended to
1.4read:
1.5    Subd. 28. Distribution of plates and stickers. The commissioner may distribute
1.6registration plates and stickers to be held and issued by new and used motor vehicle dealers.
1.7A dealer may issue registration plates and stickers only in conjunction with and at the time
1.8of the sale of a vehicle by the dealer. A dealer permitted to hold and issue registration
1.9plates and stickers must be equipped with electronic transmission technology and trained
1.10in its use. Before receiving registration plates and stickers under this subdivision, a dealer
1.11must adopt and implement security and record-keeping requirements satisfactory to the
1.12commissioner. The commissioner may revoke the authority granted under this subdivision
1.13for any violation of law or rule governing the issuance of registration plates and stickers,
1.14any violation of the dealer's security and record-keeping plan, or any other action that
1.15in the commissioner's opinion adversely affects the registration system. The dealer is
1.16financially responsible for the cost and tax value of any unaccounted inventory.
1.17EFFECTIVE DATE.This section is effective the day following final enactment.

1.18    Sec. 2. Minnesota Statutes 2010, section 168A.07, subdivision 1, is amended to read:
1.19    Subdivision 1. Ownership at issue; certificate withheld or bond filed. In the event
1.20application is made in this state for a certificate of title on a vehicle and the department is
1.21not satisfied as to the ownership of the vehicle or the existence of security interests therein,
1.22the vehicle may be registered but the department, subject to subdivision 1a, shall either:
1.23(1) withhold issuance of a certificate of title until the applicant shall present
1.24documents reasonably sufficient to satisfy the department of the applicant's ownership of
1.25the vehicle and as to any security interest therein; or
2.1(2) as a condition to issuing a certificate of title, require the applicant to file a bond
2.2in the form and amount provided in subdivision 1b.
2.3    Subd. 1a. Ownership at issue; requirements for certificate issuance. (a) In the
2.4event application is made in this state for a certificate of title on a vehicle with a model
2.5year designated by the manufacturer of more than five years prior to the year in which
2.6application is made, and the applicant is unable to establish sole ownership of the vehicle
2.7because one or more owners, prior owners, or lienholders cannot be found, the department
2.8shall issue a certificate of title to the applicant if the applicant submits:
2.9(1) the application;
2.10(2) a bond in the form and amount provided in subdivision 1b;
2.11(3) an affidavit that identifies the make, model year, and vehicle identification
2.12number of the vehicle, and includes a statement that:
2.13(i) the applicant is an owner of the vehicle;
2.14(ii) the applicant has physical possession of the vehicle; and
2.15(iii) in attempting to transfer interest in the vehicle or obtain a certificate of title or
2.16lien release, the applicant was unable after using due diligence to (A) determine the names
2.17or locations of one or more owners, prior owners, or lienholders; or (B) successfully
2.18contact one or more owners, prior owners, or lienholders known to the applicant; and
2.19(4) payment for required taxes and fees.
2.20(b) Unless the department has been notified of the pendency of an action to recover
2.21the bond under paragraph (a), clause (2), the department shall allow it to expire at the
2.22end of three years.
2.23    Subd. 1b. Bond requirements. A bond filed under this section must be in the form
2.24prescribed by the department and executed by the applicant, and either accompanied by the
2.25deposit of cash or executed by a surety company authorized to do business in this state, in
2.26an amount equal to 1-1/2 times the value of the vehicle as determined by the department.
2.27The bond shall be conditioned to indemnify any prior owner and secured party and any
2.28subsequent purchaser of the vehicle or person acquiring any security interest therein, or the
2.29successor in interest of any said person, against any expense, loss, or damage, including
2.30reasonable attorneys' fees, by reason of the issuance of the certificate of title to the vehicle
2.31or on account of any defect in or undisclosed security interest upon the right, title and
2.32interest of the applicant in and to the vehicle. Any such interested person shall have a right
2.33of action to recover on such bond for any breach of its conditions, but the aggregate
2.34liability of the surety to all such persons shall in no event exceed the amount of the bond.
2.35Unless the department has been notified of the pendency of an action to recover on the
2.36bond and if all questions as to ownership and outstanding security interests have been
3.1resolved to the satisfaction of the department, such bond, and any deposit accompanying
3.2it, shall be returned at the end of three years or prior thereto in the event the vehicle is no
3.3longer registered in this state and the currently valid certificate of title is surrendered.

3.4    Sec. 3. Minnesota Statutes 2010, section 168A.20, subdivision 5, is amended to read:
3.5    Subd. 5. Satisfaction of automobile lien seven years old; release. A security
3.6interest perfected under this chapter may be canceled seven years from the perfection
3.7date for a passenger automobile, as defined in section 168.002, subdivision 24, upon the
3.8request of the owner of the passenger automobile, if the owner has paid the lien in full
3.9and is unable to locate the lienholder to obtain a lien release. At a minimum, the owner
3.10must send a letter to the lienholder by certified mail, return receipt requested, requesting a
3.11lien release. If the owner is unable to obtain a lien release by sending a letter by certified
3.12mail, then the owner must present to the department or its agent the returned letter as
3.13evidence of the attempted contact. This subdivision applies only to (1) vehicle owners
3.14who are individuals ; or (2) dealers licensed under section 168.27, subdivision 2 or 3, who
3.15are purchasing a vehicle from an individual owner for resale."
3.16Amend the title accordingly