1.1.................... moves to amend H.F. No. 1214, the first engrossment, as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2012, section 168.27, subdivision 1a, is amended to read:
1.4    Subd. 1a. Dealer license categories. (a) No person shall engage in the business of
1.5selling new motor vehicles or shall offer to sell, solicit, deliver, or advertise the sale of
1.6new motor vehicles without first acquiring a new motor vehicle dealer license.
1.7(b) No person shall engage in the business of selling used motor vehicles or shall
1.8offer to sell, solicit, deliver, or advertise the sale of used motor vehicles without first
1.9acquiring a used motor vehicle dealer license.
1.10(c) No person shall engage in the business of buying or otherwise acquiring vehicles
1.11other than hulks; or offering to buy or otherwise acquire, or soliciting or advertising the
1.12buying or acquiring of, vehicles other than hulks for processing and selling the metal for
1.13remelting without first acquiring a scrap metal processor license.
1.14For purposes of this paragraph, a "hulk" is a motor vehicle that is incapable, under
1.15its own power, of moving and is incapable of transporting persons or property and has had
1.16valuable used parts removed. Its sole value is its metallic content.
1.17(d) No person shall be primarily engaged in the business of buying or otherwise
1.18acquiring vehicles for the purpose of dismantling the vehicles and selling used parts and
1.19the remaining scrap metals without first acquiring a used vehicle parts dealer license.
1.20(e) No person shall engage in the business of storing and displaying, offering to store
1.21or display, or soliciting or advertising the storing or displaying, for sale, of damaged
1.22or junked vehicles as an agent or escrow agent of an insurance company without first
1.23acquiring a vehicle salvage pool license.
1.24(f) No person shall engage in the business of leasing motor vehicles or shall offer to
1.25lease, solicit or advertise to lease motor vehicles without first acquiring a motor vehicle
1.26lessor license.
2.1(g) No person shall engage in the business of wholesaling motor vehicles to dealers
2.2for resale or shall offer to sell, solicit or advertise the sale of motor vehicles to dealers for
2.3resale without first acquiring a motor vehicle wholesaler license.
2.4(h) No person shall engage in the business of auctioning motor vehicles for more
2.5than one owner at an auction or shall offer to sell, solicit or advertise the sale of motor
2.6vehicles at auction without first acquiring a motor vehicle auctioneer license.
2.7(i) No person shall engage in the business of brokering motor vehicles without first
2.8acquiring a motor vehicle broker's license.
2.9EFFECTIVE DATE.This section is effective August 1, 2013.

2.10    Sec. 2. Minnesota Statutes 2012, section 168.27, subdivision 19a, is amended to read:
2.11    Subd. 19a. Injunction. (a) The commissioner in the name of the state or a county
2.12attorney in the name of a county may institute a civil action in the name of the state in
2.13district court for an injunction prohibiting a violation of, this section and for civil penalties
2.14not to exceed $1,000 for each violation of, subdivision 2, 3, 3a, 4, 5a, 6, 7, or 7a of this
2.15section, section 168A.1501, section 168A.53, or section 325E.21. Filing fees for bringing
2.16an action under this section are waived. The court,
2.17(b) Upon proper proof a finding that a preponderance of evidence demonstrates that
2.18the defendant has engaged in a practice prohibited by this section violated subdivision 2,
2.193, 3a, 4, 5a, 6, 7, or 7a of this section, section 168A.1501, 168A.153, or section 325E.21,
2.20 the court may enjoin the future commission of that practice and award civil penalties for
2.21violations of subdivision 2, 3, 4, 5a, 6, 7, or 7a violations and may award civil penalties
2.22as authorized by this subdivision. It is not a defense to an action that the state plaintiff
2.23 may have adequate remedies at law or that the plaintiff has not shown irreparable harm.
2.24Service of process must be as in any other civil suit, except that where a defendant in the
2.25action is a natural person or firm residing outside the state, or is a foreign corporation,
2.26service of process may also be made by personal service outside the state; in the manner
2.27provided by section 5.25; or as the court may direct. Process is valid if it satisfies the
2.28requirements of due process of law, whether or not the defendant is doing business in
2.29Minnesota regularly or habitually. Nothing in this subdivision limits the rights or remedies
2.30otherwise available to persons under common law or other statutes of this state.
2.31(c) In determining the civil penalty amount and whether to order injunctive relief
2.32under paragraph (b), the court shall consider:
2.33(1) the number of current violations;
2.34(2) the gravity of the current violations, including but not limited to the harm
2.35caused by the violations;
3.1(3) the culpability of the defendant as established by evidence of intent, willfulness,
3.2or negligence;
3.3(4) the economic benefit, if any, gained by the person allowing or committing the
3.4current violations;
3.5(5) the history of past violations, including the similarity of previous violations and
3.6the current violation, the time elapsed since previous violations, the number of previous
3.7violations, and the response of the person to previous violations; and
3.8(6) any other factors as justice may require.
3.9(d) If a court grants injunctive relief under paragraph (b), the court shall consider
3.10the factors in paragraph (c) in determining the requirements to include in an injunction.
3.11A court issuing an injunction under this section shall have the discretion to fashion
3.12an injunction that is reasonably intended to prevent a violator from committing future
3.13violations. Such authority shall include, but is not limited to, issuing an order for a period
3.14of 12 months which:
3.15(1) requires a defendant to wait up to 15 days before scrapping, dismantling, selling,
3.16or otherwise disposing of any vehicle that the defendant has acquired without first having
3.17received proof of ownership in compliance with section 168A.1501, subdivision 7, 8, or
3.189; or
3.19(2) prohibits a defendant from acquiring, scrapping, dismantling, selling, or
3.20otherwise disposing of any vehicle without first having received proof of ownership in
3.21compliance with section 168A.1501, subdivision 7, 8, or 9.
3.22(e) A court issuing an injunction under this section shall not require the posting of
3.23any bond or other security.
3.24(f) In an action brought under this section by a county attorney, all civil penalties
3.25collected under this section shall be deposited into the general fund of the county. In an
3.26action brought under this section by the Attorney General or the Commissioner, all civil
3.27penalties collected shall be deposited into the general fund of the state.
3.28(g) Nothing in this subdivision limits the rights or remedies which are otherwise
3.29available to a person under common law or other statutes of this state.
3.30EFFECTIVE DATE.This section is effective August 1, 2013.

3.31    Sec. 3. Minnesota Statutes 2012, section 168.27, subdivision 23, is amended to read:
3.32    Subd. 23. Registrar may file charges County or city attorney to prosecute. The
3.33registrar or the registrar's appointed inspectors may file charges with the city or county
3.34attorney may file charges against any licensee person who violates any of the provisions
4.1of this section, section 168A.1501, or section 325E.21, including but not limited to, the
4.2grounds for suspension or revocation set out in subdivision 12.
4.3EFFECTIVE DATE.This section is effective August 1, 2013.

4.4    Sec. 4. Minnesota Statutes 2012, section 168A.15, subdivision 3, is amended to read:
4.5    Subd. 3. Title; scrapped, dismantled, or destroyed vehicle. An owner who scraps,
4.6dismantles, or destroys a vehicle, or A person dealer who purchases a vehicle as scrap
4.7or to be dismantled or destroyed, shall immediately have the certificate of title mailed or
4.8delivered to the department for cancellation maintain the certificate of title on the vehicle
4.9for three years before destroying the title as prescribed by the commissioner. A certificate
4.10of title for the vehicle shall not again be issued.

4.11    Sec. 5. [168A.1501] SCRAPPED, DISMANTLED, OR DESTROYED VEHICLE.
4.12    Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in
4.13this subdivision have the meanings given.
4.14(b) "Law enforcement agency" or "agency" means a duly authorized municipal,
4.15county, state, or federal law enforcement agency.
4.16(c) "Person" means an individual, partnership, limited partnership, limited liability
4.17company, corporation, or other entity.
4.18(d) "Scrap vehicle" means a motor vehicle purchased primarily as scrap, for its reuse
4.19or recycling value as raw metal, or for dismantling for parts.
4.20(e) "Scrap vehicle operator" or "operator" means the following persons who engage
4.21in a transaction involving the purchase or acquisition of a scrap vehicle: scrap metal
4.22processors licensed under section 168.27, subdivision 1a, paragraph (c); used vehicle parts
4.23dealers licensed under section 168.27, subdivision 1a, paragraph (d); scrap metal dealers
4.24under section 325E.21; and junk yards under section 471.925.
4.25(f) "Interchange file specification format" means the most recent version of the
4.26Minneapolis automated property system interchange file specification format.
4.27(g) "Motor vehicle" has the meaning given in section 169.011, subdivision 42.
4.28(h) "Proof of identification" means a driver's license, Minnesota identification card
4.29number, or other identification document issued for identification purposes by any state,
4.30federal, or foreign government if the document includes the person's photograph, full
4.31name, birth date, and signature.
4.32(i) "Seller" means any seller, prospective seller, or agent of the seller.
4.33    Subd. 2. Purchase or acquisition record required. (a) Every scrap vehicle operator,
4.34including an agent, employee, or representative of the operator, shall create a permanent
5.1record written in English, using ink or an electronic record program, as appropriate, at the
5.2time of each purchase or acquisition of a scrap vehicle. The record must include:
5.3(1) the vehicle identification number; license plate number, if any, including state of
5.4issue and month and year of validation; and vehicle make, model, and color;
5.5(2) the date, time, and place of the receipt of the vehicle purchased or acquired
5.6and a unique transaction identifier;
5.7(3) a photocopy or electronic scan of the seller's proof of identification including
5.8the identification number;
5.9(4) the amount paid and the number of the check or electronic transfer used to
5.10purchase the vehicle;
5.11(5) the license plate number and description of the vehicle used by the person when
5.12delivering the scrap vehicle, including the vehicle make and model, and any identifying
5.13marks on the vehicle, such as a business name, decals, or markings, if applicable;
5.14(6) a statement signed by the seller, under penalty of perjury as provided in
5.15section 609.48, attesting that the scrap vehicle is not stolen and is free of any liens or
5.16encumbrances and the seller has the right to sell it;
5.17(7) a copy of the title, if any, provided by the seller of a motor vehicle or, if no title
5.18is provided, documentation required under (i) subdivision 8, clause (3), item (i), or (ii)
5.19subdivision 9, paragraph (a), clause (3), item (i); and
5.20(8) a copy of the receipt, which must include at least the following information:
5.21the name and address of the operator, the date and time the scrap vehicle was received
5.22by the operator, an accurate description of the scrap vehicle, and the amount paid for the
5.23scrap vehicle.
5.24(b) The record, as well as the scrap vehicle purchased or received, shall at all
5.25reasonable times be open to the inspection of any properly identified law enforcement
5.26officer.
5.27(c) No record is required for property purchased from manufacturers, salvage pools,
5.28merchants operating under a contract with a scrap vehicle operator, insurance companies,
5.29rental car companies, financial institutions, charities, dealers licensed under section
5.30168.27, or wholesale dealers, having an established place of business, or of any goods
5.31purchased at open sale from any bankrupt stock, but a receipt as required under paragraph
5.32(a), clause (8), shall be obtained and kept by the person, which must be shown upon
5.33demand to any properly identified law enforcement officer.
5.34(d) The operator must provide a copy of the receipt required under paragraph (a),
5.35clause (8), to the seller in every transaction.
6.1(e) Law enforcement agencies in the jurisdiction where an operator is located may
6.2conduct regular and routine inspections to ensure compliance, refer violations to the city
6.3or county attorney for criminal prosecution, and notify the registrar of motor vehicles.
6.4(f) Except as otherwise provided in this section, a scrap vehicle operator or the
6.5operator's agent, employee, or representative may not disclose personal information
6.6concerning a customer without the customer's consent unless the disclosure is required by
6.7law or made in response to a request from a law enforcement agency. A scrap vehicle
6.8operator must implement reasonable safeguards to protect the security of the personal
6.9information and prevent unauthorized access to or disclosure of the information. For
6.10purposes of this paragraph, "personal information" is any individually identifiable
6.11information gathered in connection with a record under paragraph (a).
6.12    Subd. 3. Retention required. Records required to be maintained by subdivision 2
6.13shall be retained by the scrap vehicle operator for a period of three years, and a dealer
6.14licensed under section 168.27 shall maintain records and information as required under
6.15section 168A.11, subdivision 3.
6.16    Subd. 4. Payment by check or electronic transfer required. (a) Except as
6.17provided in paragraph (b), a scrap vehicle operator or the operator's agent, employee, or
6.18representative shall pay for all scrap vehicle purchases only by check or electronic transfer.
6.19(b) For purchase of a scrap vehicle without a title, payment shall be made only by
6.20check or by electronic transfer of funds to a bank account. Checks shall be payable only
6.21to the individual providing proof of identification at the time of purchase. The operator
6.22shall retain a record of the mailing address or unique transaction identifier for a period of
6.23three years and such information shall at all reasonable times be open for inspection by a
6.24properly identified law enforcement officer.
6.25(c) This subdivision does not apply to transactions under subdivision 2, paragraph (c).
6.26    Subd. 5. Automated property system. (a) A scrap vehicle operator must
6.27completely and accurately provide all the record information required in subdivision 2
6.28by transferring it from its computer to the automated property system, by the close of
6.29business each day, using the interchange file specification format.
6.30(b) An operator who does not have an electronic point-of-sale program may
6.31request to be provided software by the automated property system to record the required
6.32information. If the operator uses a commercially available electronic point-of-sale
6.33program to record the information required in this section, it must submit the information
6.34using the interchange file specification format. Any record submitted by an operator
6.35that does not conform to the interchange file specification format must be corrected and
7.1resubmitted the next business day. No fees may be charged to an operator for use of the
7.2automated property system until such time as the legislature enacts a fee schedule.
7.3(c) An operator must display a sign of sufficient size, in a conspicuous place in the
7.4premises, which informs all patrons that transactions are reported to law enforcement daily.
7.5(d) Every local law enforcement agency shall participate in the automated property
7.6system as an individual agency or in conjunction with another agency or agencies to
7.7provide the service.
7.8(e) This subdivision does not apply to the purchase of a scrap vehicle by a used
7.9vehicle parts dealer licensed under section 168.27, for dismantling the vehicle for its parts.
7.10    Subd. 6. Additional reporting. In addition to the requirements under subdivision 5
7.11if applicable, the following entities must submit information on the purchase or acquisition
7.12of a scrap vehicle to the National Motor Vehicle Title Information System, established
7.13pursuant to United States Code, title 49, section 30502, by the close of business the
7.14following day:
7.15(1) an operator who is not licensed under section 168.27; and
7.16(2) an operator who purchases a scrap vehicle under subdivision 9.
7.17    Subd. 7. Vehicle with proof of ownership; title or bill of sale required. Except
7.18as provided in subdivisions 8, 9, and 10, no person shall purchase a scrap vehicle unless
7.19the seller:
7.20(1) provides the vehicle title and lien releases, if the vehicle is subject to any liens, or
7.21an official bill of sale issued by a public impound lot, each listing the vehicle identification
7.22number;
7.23(2) provides proof of identification; and
7.24(3) signs a statement, under penalty of perjury as provided in section 609.48,
7.25attesting that the motor vehicle is not stolen and is free of any liens or encumbrances and
7.26that the seller has the right to sell the motor vehicle.
7.27    Subd. 8. Vehicle without proof of ownership; certain older vehicles. If the
7.28provisions of subdivision 7 are not met, an operator may purchase a scrap vehicle if:
7.29(1) the operator is a dealer licensed under section 168.27;
7.30(2) the vehicle has a manufacturer's designated model year equal to or less than the
7.3110th year immediately preceding the current calendar year; and
7.32(3) the seller:
7.33(i) provides printed documentation from the commissioner that the vehicle has not
7.34been registered for more than seven years;
7.35(ii) provides proof of identification; and
8.1(iii) signs a statement, under penalty of perjury as provided in section 609.48,
8.2attesting that the motor vehicle is not stolen and is free of any liens or encumbrances and
8.3that the seller has the right to sell the motor vehicle.
8.4    Subd. 9. Vehicle without proof of ownership; vehicles for dismantling. (a) If the
8.5provisions of subdivision 7 are not met, an operator may purchase a scrap vehicle if:
8.6(1) the operator is a used vehicle parts dealer licensed under section 168.27;
8.7(2) the vehicle is being purchased for dismantling for its parts; and
8.8(3) the seller:
8.9(i) agrees in writing to a sale with a seven-day hold period;
8.10(ii) provides proof of identification; and
8.11(iii) signs a statement, under penalty of perjury as provided in section 609.48,
8.12attesting that the motor vehicle is not stolen and is free of any liens or encumbrances and
8.13that the seller has the right to sell the motor vehicle.
8.14(b) An operator purchasing a scrap vehicle under this subdivision shall:
8.15(1) hold the vehicle for a period of seven consecutive days, excluding Saturdays,
8.16Sundays, and holidays; and
8.17(2) not scrap, resell, dismantle, or in any way destroy the vehicle during the hold
8.18period under clause (1).
8.19    Subd. 10. Exempt purchases. Subdivisions 7, 8, and 9 do not apply when a scrap
8.20vehicle is:
8.21(1) purchased from a manufacturer, salvage pool, merchant operating under a contract
8.22with a scrap vehicle operator, insurance company, rental car company, financial institution,
8.23charity, dealer licensed under section 168.27, or wholesale dealers, having an established
8.24place of business, or of any goods purchased at open sale from any bankrupt stock; or
8.25(2) an inoperable motor vehicle with a manufacturer's designated model year equal
8.26to or less than the 20th year immediately preceding the current calendar year.
8.27    Subd. 11. Criminal penalty. A scrap vehicle operator, or the agent, employee, or
8.28representative of the operator, who intentionally violates a provision of this section, is
8.29guilty of a misdemeanor.
8.30    Subd. 12. Investigative holds; scrap vehicle or parts. (a) Whenever a law
8.31enforcement official from any agency has probable cause to believe that a scrap vehicle or
8.32motor vehicle parts in the possession of a scrap vehicle operator are stolen or evidence
8.33of a crime and notifies the operator not to sell the item, the scrap vehicle operator shall
8.34not (1) process or sell the item, or (2) remove or allow its removal from the premises.
8.35This investigative hold must be confirmed in writing by the originating agency within 72
8.36hours and will remain in effect for 30 days from the date of initial notification, or until
9.1the investigative hold is canceled or renewed, or until a law enforcement notification to
9.2confiscate or directive to release is issued, whichever comes first.
9.3(b) If a scrap vehicle or motor vehicle parts are identified as stolen or evidence in a
9.4criminal case, a law enforcement official may:
9.5(1) physically confiscate and remove the item from the scrap vehicle operator,
9.6pursuant to a written notification;
9.7(2) place the item on hold or extend the hold under paragraph (a) and leave it on
9.8the premises; or
9.9(3) direct its release to a registered owner or owner's agent.
9.10When an item is confiscated, the person doing so shall provide identification upon request
9.11of the scrap vehicle operator, and shall provide the name and telephone number of the
9.12confiscating agency and investigator, and the case number related to the confiscation.
9.13    (c) An operator may request seized property be returned in accordance with section
9.14626.04.
9.15    (d) When an investigative hold or notification to confiscate is no longer necessary,
9.16the law enforcement official or designee shall so notify the operator.
9.17    (e) A scrap vehicle operator may process or otherwise dispose of the scrap vehicle
9.18or motor vehicle parts if:
9.19    (1) a notification to confiscate is not issued during the investigative hold; or
9.20    (2) a law enforcement official does not physically remove the item from the premises
9.21within 15 calendar days from issuance of a notification to confiscate.
9.22    (f) If a scrap vehicle operator is required to hold a scrap vehicle or motor vehicle
9.23parts at the direction of law enforcement for purposes of investigation or prosecution or
9.24it is seized by law enforcement, the operator, and any other victim, shall be entitled to
9.25seek restitution against the person who delivered the item to the scrap vehicle operator
9.26in any criminal case that may arise from the investigation, including any out-of-pocket
9.27expenses for storage and lost profit.
9.28    Subd. 13. Video security cameras. (a) Each scrap vehicle operator shall install
9.29and maintain at each location video surveillance cameras, still digital cameras, or similar
9.30devices positioned to record or photograph a frontal view showing a clear and readily
9.31identifiable image of the face of each seller of a scrap vehicle who enters the location.
9.32The scrap vehicle operator shall also photograph the seller's vehicle, including license
9.33plate, either by video camera or still digital camera, so that an accurate and complete
9.34description of it may be obtained from the recordings made by the cameras. Photographs
9.35and recordings must be clearly and accurately associated with their respective records.
10.1(b) The video camera or still digital camera must be kept in operating condition
10.2and must be shown upon request to a properly identified law enforcement officer for
10.3inspection. The camera must record and display the accurate date and time. The video
10.4camera must be turned on at all times when the location is open for business and at any
10.5other time when scrap vehicle is purchased.
10.6(c) Recordings and images required by paragraph (a) shall be retained by the scrap
10.7vehicle operator for a minimum period of 60 days and shall at all reasonable times be open
10.8to the inspection of any properly identified law enforcement officer.
10.9(d) If the scrap vehicle operator does not purchase some or any scrap vehicles at
10.10a specific business location, the operator need not comply with this subdivision with
10.11respect to those purchases.
10.12(e) This subdivision does not apply to the purchase of a scrap vehicle by a used
10.13vehicle parts dealer licensed under section 168.27, for dismantling the vehicle for its parts.
10.14    Subd. 14. Preemption of local ordinances. This section preempts and supersedes
10.15any local ordinance or rule concerning the same subject matter.
10.16EFFECTIVE DATE.Subdivisions 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, and 14 are
10.17effective August 1, 2013. Subdivision 13 is effective January 1, 2014. Subdivision 5 is
10.18effective January 1, 2015.

10.19    Sec. 6. Minnesota Statutes 2012, section 168A.153, subdivision 1, is amended to read:
10.20    Subdivision 1. Older model Dismantled or destroyed vehicle. A dealer who buys
10.21an older model a vehicle to be dismantled or destroyed shall report to the department
10.22within 30 ten days including the vehicle's license plate number and identification number,
10.23and the seller's name and driver's license number.
10.24EFFECTIVE DATE.This section is effective August 1, 2013.

10.25    Sec. 8. Minnesota Statutes 2012, section 168A.153, subdivision 3, is amended to read:
10.26    Subd. 3. Notification on vehicle to be dismantled or destroyed; service fee.
10.27    Within the time frames prescribed in subdivisions 1 and 2 of acquiring a vehicle titled and
10.28registered in Minnesota, a dealer shall notify the registrar that the dealership purchased
10.29the vehicle to be dismantled or destroyed. The notification under subdivision 1 must be
10.30made electronically as prescribed by the registrar. The dealer may contract this service to
10.31a deputy registrar and the registrar may charge a fee not to exceed $7 per transaction to
10.32provide this service.
10.33EFFECTIVE DATE.This section is effective August 1, 2013.

11.1    Sec. 9. Minnesota Statutes 2012, section 325E.21, subdivision 1, is amended to read:
11.2    Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in
11.3this subdivision have the meanings given.
11.4    (b) "Law enforcement agency" or "agency" means a duly authorized municipal,
11.5county, state, or federal law enforcement agency.
11.6    (c) "Person" means an individual, partnership, limited partnership, limited liability
11.7company, corporation, or other entity.
11.8    (d) "Scrap metal" means:
11.9    (1) wire and cable commonly and customarily used by communication and electric
11.10utilities; and
11.11    (2) copper, aluminum, or any other metal purchased primarily for its reuse or
11.12recycling value as raw metal, including metal that is combined with other materials at the
11.13time of purchase, but does not include a scrap vehicle as defined in section 168A.1501,
11.14subdivision 1.
11.15    (e) "Scrap metal dealer" or "dealer" means
11.16     a person engaged in the business of buying or selling scrap metal, or both, but does.
11.17The terms do not include a person engaged exclusively in the business of buying or selling
11.18new or used motor vehicles or motor vehicle parts, paper or wood products, rags or
11.19furniture, or secondhand machinery.
11.20(f) "Interchange file specification format" means the most recent version of the
11.21Minneapolis automated property system interchange file specification format.
11.22    (g) "Seller" means any seller, prospective seller, or agent of the seller.
11.23    (h) "Proof of identification" means a driver's license, Minnesota identification card
11.24number, or other identification document issued for identification purposes by any state,
11.25federal, or foreign government if the document includes the person's photograph, full
11.26name, birth date, and signature.
11.27EFFECTIVE DATE.This section is effective August 1, 2013.

11.28    Sec. 10. Minnesota Statutes 2012, section 325E.21, subdivision 1a, is amended to read:
11.29    Subd. 1a. Purchase or acquisition record required. (a) Every scrap metal dealer,
11.30including an agent, employee, or representative of the dealer, shall keep a written record at
11.31the time of each purchase or acquisition of scrap metal. The record must include:
11.32    (1) an accurate account or description, including the weight if customarily purchased
11.33by weight, of the scrap metal purchased or acquired;
11.34    (2) the date, time, and place of the receipt of the scrap metal purchased or acquired;
11.35    (3) the name and address of the person selling or delivering the scrap metal;
12.1    (4) the number of the check or electronic transfer used to purchase the scrap metal;
12.2    (5) the number of the seller's or deliverer's driver's license, Minnesota identification
12.3card number, or other identification document number of an identification document
12.4issued for identification purposes by any state, federal, or foreign government if the
12.5document includes the person's photograph, full name, birth date, and signature; and
12.6    (6) the license plate number and description of the vehicle used by the person when
12.7delivering the scrap metal, and any identifying marks on the vehicle, such as a business
12.8name, decals, or markings, if applicable; and
12.9    (7) a statement signed by the seller, under penalty of perjury as provided in section
12.10609.48, attesting that the scrap metal is not stolen and is free of any liens or encumbrances
12.11and the seller has the right to sell it.
12.12    (b) The record, as well as the scrap metal purchased or received, shall at all
12.13reasonable times be open to the inspection of any law enforcement agency.
12.14     (c) No record is required for property purchased from merchants, manufacturers or
12.15wholesale dealers, having an established place of business, or of any goods purchased
12.16at open sale from any bankrupt stock, but a bill of sale or other evidence of open or
12.17legitimate purchase of the property shall be obtained and kept by the person, which must
12.18be shown upon demand to any law enforcement agency.
12.19    (d) Except as otherwise provided in this section, a scrap metal dealer or the dealer's
12.20agent, employee, or representative may not disclose personal information concerning a
12.21customer without the customer's consent unless the disclosure is made in response to a
12.22request from a law enforcement agency. A scrap metal dealer must implement reasonable
12.23safeguards to protect the security of the personal information and prevent unauthorized
12.24access to or disclosure of the information. For purposes of this paragraph, "personal
12.25information" is any individually identifiable information gathered in connection with a
12.26record under paragraph (a).
12.27(e) This subdivision expires January 1, 2015.
12.28EFFECTIVE DATE.This section is effective August 1, 2013.

12.29    Sec. 11. Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
12.30to read:
12.31    Subd. 1b. Purchase or acquisition record required. (a) Every scrap metal dealer,
12.32including an agent, employee, or representative of the dealer, shall create a permanent
12.33record written in English, using an electronic record program at the time of each purchase
12.34or acquisition of scrap metal. The record must include:
13.1(1) a complete and accurate account or description, including the weight if
13.2customarily purchased by weight, of the scrap metal purchased or acquired;
13.3(2) the date, time, and place of the receipt of the scrap metal purchased or acquired
13.4and a unique transaction identifier;
13.5(3) a photocopy or electronic scan of the seller's proof of identification including
13.6the identification number;
13.7(4) the amount paid and the number of the check or electronic transfer used to
13.8purchase the scrap metal;
13.9(5) the license plate number and description of the vehicle used by the person when
13.10delivering the scrap metal, including the vehicle make and model, and any identifying
13.11marks on the vehicle, such as a business name, decals, or markings, if applicable;
13.12(6) a statement signed by the seller, under penalty of perjury as provided in section
13.13609.48, attesting that the scrap metal is not stolen and is free of any liens or encumbrances
13.14and the seller has the right to sell it; and
13.15(7) a copy of the receipt, which must include at least the following information: the
13.16name and address of the dealer, the date and time the scrap metal was received by the
13.17dealer, an accurate description of the scrap metal, and the amount paid for the scrap metal.
13.18    (b) The record, as well as the scrap metal purchased or received, shall at all reasonable
13.19times be open to the inspection of any properly identified law enforcement officer.
13.20(c) No record is required for property purchased from merchants, manufacturers,
13.21salvage pools, insurance companies, rental car companies, financial institutions, charities,
13.22dealers licensed under section 168.27, or wholesale dealers, having an established place of
13.23business, or of any goods purchased at open sale from any bankrupt stock, but a receipt as
13.24required under paragraph (a), clause (7), shall be obtained and kept by the person, which
13.25must be shown upon demand to any properly identified law enforcement officer.
13.26    (d) The dealer must provide a copy of the receipt required under paragraph (a),
13.27clause (7), to the seller in every transaction.
13.28(e) Law enforcement agencies in the jurisdiction where a dealer is located may
13.29conduct regular and routine inspections to ensure compliance, refer violations to the city
13.30or county attorney for criminal prosecution, and notify the registrar of motor vehicles.
13.31(f) Except as otherwise provided in this section, a scrap metal dealer or the dealer's
13.32agent, employee, or representative may not disclose personal information concerning
13.33a customer without the customer's consent unless the disclosure is required by law or
13.34made in response to a request from a law enforcement agency. A scrap metal dealer must
13.35implement reasonable safeguards to protect the security of the personal information and
13.36prevent unauthorized access to or disclosure of the information. For purposes of this
14.1paragraph, "personal information" is any individually identifiable information gathered in
14.2connection with a record under paragraph (a).
14.3EFFECTIVE DATE.This section is effective January 1, 2015.

14.4    Sec. 12. Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
14.5to read:
14.6    Subd. 1c. Automated property system. (a) Dealers must completely and accurately
14.7provide all the record information required in subdivision 1b by transferring it from their
14.8computer to the automated property system, by the close of business each day, using
14.9the interchange file specification format.
14.10(b) A dealer who does not have an electronic point-of-sale program may request to
14.11be provided software by the automated property system to record the required information.
14.12If the dealer uses a commercially available electronic point-of-sale program to record the
14.13information required in this section, it must submit the information using the interchange
14.14file specification format. Any record submitted by a dealer that does not conform to the
14.15interchange file specification format must be corrected and resubmitted the next business
14.16day. No fees may be charged to a dealer for use of the automated property system until
14.17such time as the legislature enacts a fee schedule.
14.18(c) A dealer must display a sign of sufficient size, in a conspicuous place in the
14.19premises, which informs all patrons that transactions are reported to law enforcement daily.
14.20(d) Every local law enforcement agency shall participate in the automated property
14.21system as an individual agency or in conjunction with another agency or agencies to
14.22provide the service.
14.23EFFECTIVE DATE.This section is effective January 1, 2015.

14.24    Sec. 13. Minnesota Statutes 2012, section 325E.21, subdivision 4, is amended to read:
14.25    Subd. 4. Registration required. (a) Every scrap metal dealer shall register with
14.26and participate in the criminal alert network described in section 299A.61. The dealer
14.27shall ensure that the dealer's system for receiving incoming notices from the network is
14.28in proper working order and ready to receive incoming notices. The dealer shall check
14.29the system for incoming notices twice each day the business is open, once upon opening
14.30and then again before closing. The dealer shall inform all employees involved in the
14.31purchasing or receiving of scrap metal of alerts received relating to scrap metal of the type
14.32that might be conceivably sold to the dealer. In addition, the dealer shall post copies of the
14.33alerts in a conspicuous location.
15.1    (b) The scrap metal dealer shall pay to the commissioner of public safety a $50
15.2annual fee to participate in the criminal alert network and for the educational materials
15.3described in section 299C.25.
15.4    (c) The commissioner shall notify the scrap metal dealer if a message sent to the
15.5dealer is returned as undeliverable or is otherwise not accepted for delivery by the dealer's
15.6system. The dealer shall take action necessary to ensure that future messages are received.
15.7    (d) This subdivision expires January 1, 2015.

15.8    Sec. 14. Minnesota Statutes 2012, section 325E.21, subdivision 8, is amended to read:
15.9    Subd. 8. Property held by law enforcement Investigative holds; confiscation of
15.10property. (a) Whenever a law enforcement official from any agency has probable cause
15.11to believe that property in the possession of a scrap metal dealer is stolen or is evidence of
15.12a crime and notifies the dealer not to sell the item, the item may not be sold or removed the
15.13scrap metal dealer shall not (1) process or sell the item, or (2) remove or allow its removal
15.14from the premises. This investigative hold remains must be confirmed in writing by the
15.15originating agency within 72 hours and will remain in effect for 90 30 days from the
15.16date of initial notification, or until it the investigative hold is canceled or a seizure order
15.17is issued renewed, or until a law enforcement notification to confiscate or directive to
15.18release is issued, whichever comes first.
15.19    (b) If an item is identified as stolen or evidence in a criminal case, the a law
15.20enforcement official may:
15.21    (1) physically seize confiscate and remove it from the scrap metal dealer, pursuant to
15.22a written order from the law enforcement official notification; or
15.23    (2) place the item on hold or extend the hold as provided in this section and leave it
15.24in the shop under paragraph (a) and leave it in the licensed premise; or
15.25    (3) direct its release to a registered owner or owner's agent.
15.26(c) When an item is seized confiscated, the person doing so shall provide identification
15.27upon request of the scrap metal dealer, and shall provide the dealer the name and telephone
15.28number of the seizing confiscating agency and investigator, and the case number related to
15.29the seizure confiscation.
15.30    (d) (c) A dealer may request seized property be returned in accordance with section
15.31626.04 .
15.32    (e) (d) When an order to hold or seize investigative hold or notification to confiscate
15.33 is no longer necessary, the law enforcement official or designee shall so notify the dealer
15.34 licensee.
15.35(e) A scrap metal dealer may process or otherwise dispose of the scrap metal if:
16.1(1) a notification to confiscate is not issued during the investigative hold; or
16.2(2) a law enforcement official does not physically remove the motor vehicle from the
16.3premises within 15 calendar days from issuance of a notification to confiscate.
16.4(f) If a scrap metal dealer is required to hold the metal at the direction of law
16.5enforcement for purposes of investigation or prosecution or it is seized by law enforcement,
16.6the scrap metal dealer, and any other victim, shall be entitled to seek restitution against the
16.7person who delivered the metal to the scrap metal dealer in any criminal case that may arise
16.8from the investigation, including any out-of-pocket expenses for storage and lost profit.
16.9EFFECTIVE DATE.This section is effective August 1, 2013.

16.10    Sec. 15. Minnesota Statutes 2012, section 325E.21, subdivision 9, is amended to read:
16.11    Subd. 9. Video security cameras required. (a) Each scrap metal dealer shall
16.12install and maintain at each location video surveillance cameras, still digital cameras,
16.13or similar devices positioned to record or photograph a frontal view showing a readily
16.14identifiable image of the face of each seller or prospective seller of scrap metal who enters
16.15the location. The scrap metal dealer shall also photograph the seller's or prospective
16.16seller's vehicle, including license plate, either by video camera or still digital camera, so
16.17that an accurate and complete description of it may be obtained from the recordings made
16.18by the cameras. Photographs and recordings must be clearly and accurately associated
16.19with their respective records.
16.20    (b) The video camera or still digital camera must be kept in operating condition
16.21 and must be shown upon request to a properly identified law enforcement officer for
16.22inspection. The camera must record and display the accurate date and time. The video
16.23camera must be turned on at all times when the location is open for business and at any
16.24other time when scrap metal is purchased.
16.25(c) Recordings and images required by paragraph (a) shall be retained by the scrap
16.26metal dealer for a minimum period of 60 days and shall at all reasonable times be open to
16.27the inspection of any properly identified law enforcement officer.
16.28    (b) (d) If the scrap metal dealer does not purchase some or any scrap metal at a
16.29specific business location, the dealer need not comply with this subdivision with respect
16.30to those purchases.
16.31EFFECTIVE DATE.This section is effective January 1, 2014.

16.32    Sec. 16. Minnesota Statutes 2012, section 325E.21, is amended by adding a subdivision
16.33to read:
17.1    Subd. 10. Preemption of local ordinances. This section preempts and supersedes
17.2any local ordinance or rule concerning the same subject matter.

17.3    Sec. 17. AUTOMATED PROPERTY SYSTEM STANDARDS.
17.4(a) The Minneapolis Police Department, in consultation with law enforcement,
17.5prosecutors, the commissioner of public safety, legislators, and representatives from
17.6each regulated industry, shall develop the following, with respect to sections 168A.1501
17.7and 325E.21:
17.8(1) by August 1, 2013, a model affidavit of the right to sell a vehicle for use by the
17.9regulated industries; and
17.10(2) by August 1, 2014, standards for implementation and use of the automated
17.11property system.
17.12(b) By February 1, 2014, the department shall submit proposed standards under
17.13paragraph (a), clause (2), and a report that addresses the following issues and goals to the
17.14chairs and ranking minority members of the senate and house of representatives committees
17.15and divisions having jurisdiction over commerce and criminal justice policy and funding;
17.16(1) minimizing financial and administrative burdens created by this act on the
17.17regulated industries;
17.18(2) developing a user-friendly system that allows one data entry point to update
17.19multiple reporting systems;
17.20(3) implementing database management and control protocols, data security
17.21protocols, record retention guidelines and procedures, and audit procedures;
17.22(4) controlling and minimizing system costs and developing cost allocation
17.23guidelines;
17.24(5) identifying outstanding concerns of any member of the group;
17.25(6) proposing legislation supported by the group; and
17.26(7) addressing any other issues identified by the group, including any minority or
17.27dissenting opinions.
17.28(c) By September 1, 2014, the department shall provide copies of the standards under
17.29paragraph (a), clause (2), upon request, to anyone required to report using the automated
17.30property system under section 168A.1501, subdivision 5, or 325E.21, subdivision 1c.
17.31EFFECTIVE DATE.This section is effective the day following final enactment.

17.32    Sec. 18. REPEALER.
17.33Minnesota Statutes 2012, section 168A.153, subdivision 2, is repealed.
18.1EFFECTIVE DATE.This section is effective August 1, 2013."
18.2Amend the title accordingly