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HF1220 (Legislative Session 94 (2025-2026))

Definition of motor vehicle dealer modified to include dealers licensed under the laws of a contiguous state.

Related bill: SF1321

AI Generated Summary

Purpose

  • Expand who counts as a “dealer” for Minnesota motor vehicle regulation by allowing a motor vehicle dealer licensed in a state that borders Minnesota to be treated as a dealer for certain Minnesota regulatory provisions.

Main Provisions

  • Redefines “Dealer” in Minnesota Statutes to cover not only traditional Minnesota-based businesses but also those regularly engaged in manufacturing, selling, purchasing, and dealing in new and unused motor vehicles (and related bodies and chassis) with a business location for sale, trade, and display.
  • Adds a cross-border provision: for the purposes of specific sections (168.27(28), 168.33(8a), 168.345, and 168.346), the commissioner may consider a motor vehicle dealer licensed in a contiguous state as a dealer or licensed dealer in Minnesota.
  • The change gives Minnesota regulatory authorities the discretion to treat contiguous-state dealers the same as Minnesota dealers when applying those sections.

Significance and Impact

  • Clarifies that cross-border (contiguous-state) dealers can fall under Minnesota’s regulatory framework for the identified sections, enabling comparable oversight, licensing considerations, or enforcement.
  • Reduces ambiguity about whether out-of-state dealers operating near Minnesota’s border are subject to Minnesota rules under the specified provisions.
  • The language uses a discretionary "may" for the commissioner, meaning decisions to treat out-of-state dealers as Minnesota dealers are not automatic and depend on regulatory assessment.

Potential Implications

  • Out-of-state dealers licensed in neighboring states may be regulated in Minnesota under the named provisions, which could affect licensing requirements, consumer protections, and enforcement actions.
  • Could influence competitive dynamics between in-state and cross-border dealers by aligning oversight.

Relevant Terms

  • dealer
  • contiguous state
  • motor vehicle
  • commissioner
  • Minnesota Statutes 168.002
  • 168.27(28)
  • 168.33(8a)
  • 168.345
  • 168.346
  • cross-border dealer
  • licensed dealer

Relevant Terms - dealer - contiguous state - motor vehicle - commissioner - cross-border dealer - licensed dealer - Minnesota Statutes - 168.002 - 168.27(28) - 168.33(8a) - 168.345 - 168.346

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 20, 2025HouseActionIntroduction and first reading, referred toTransportation Finance and Policy
March 26, 2025HouseActionCommittee report, to adopt and re-refer toWays and Means

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Modifies Minnesota Statutes, section 168.002, subdivision 6 to redefine 'Dealer' for the purposes of motor vehicle regulation, expanding the definition.",
      "modified": [
        "Expands the definition of 'Dealer' to include motor vehicle dealers licensed under the laws of a contiguous state."
      ]
    },
    "citation": "168.002",
    "subdivision": "6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-references section 168.27, subdivision 28 to permit consideration of a motor vehicle dealer licensed under contiguous-state laws as a dealer for purposes of that section.",
      "modified": [
        "Authorizes the commissioner to treat contiguous-state licensed dealers as dealers for 168.27, subd. 28."
      ]
    },
    "citation": "168.27",
    "subdivision": "28"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-references section 168.33, subdivision 8a to permit consideration of contiguous-state licensed dealers as dealers in that section.",
      "modified": [
        "Authorizes contiguous-state dealers to be treated as dealers for 168.33, subd. 8a."
      ]
    },
    "citation": "168.33",
    "subdivision": "8a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to Minnesota Statutes 168.345; no subdivision specified.",
      "modified": [
        "Allows the commissioner to consider contiguous-state dealers for 168.345."
      ]
    },
    "citation": "168.345",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to Minnesota Statutes 168.346; no subdivision specified.",
      "modified": [
        "Allows contiguous-state dealers to be considered as dealers for 168.346."
      ]
    },
    "citation": "168.346",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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