HF2337

Purpose of the Bill

The bill modifies the rules for the use of dealer plates by motor vehicle dealerships in Minnesota to include the provision of vehicles for courtesy purposes, particularly focusing on the use of courtesy vehicles by nonemployees.

Main Provisions

• Dealer Plate Issuance: The Minnesota registrar will issue dealer plates to licensed motor vehicle dealers. These were traditionally used by dealers, their employees, or prospective buyers for demonstrations.

• Use by Nonemployees: The bill allows nonemployees, like customers, to use a vehicle with a dealer plate under certain conditions related to courtesy services.

• Courtesy Vehicle Specifications:

  • The vehicle must be offered as part of a repair or maintenance service.
  • The vehicle must be marked as a courtesy vehicle and clearly state the dealer’s name.
  • A lease agreement must be in place, noting the driver's responsibilities and potential liabilities.

Significant Changes

• Use of Courtesy Vehicles: The bill introduces detailed provisions allowing motor vehicle dealers to provide courtesy vehicles with dealer plates to nonemployees during maintenance or repair services, extending beyond the typical use for demonstration and sales transactions.

• Exemptions from Restrictions: Courtesy vehicles with dealer plates are exempt from the 72-hour rule for vehicle use by buyers before obtaining permanent plates and are also not subject to typical title registration and sales tax requirements.

Relevant Terms

courtesy vehicle, dealer plate, motor vehicle dealer, repair service, maintenance, nonemployee driver, lease agreement, registration, sales tax.