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2021-2022 Regular Session

Buyers of older, less expensive cars — plus buyers of larger commercial vehicles — to gain information on prior damage

Buyers seeking older, less expensive, vehicles will have more ways to find out when the car they’re considering has previously been significantly damaged or deemed to be totaled.

Effective Jan. 1, 2023, the law updates the state’s salvage title regulations by creating a “prior salvage” brand. The legislation primarily aims to solve an issue of less expensive vehicles holding a clean Minnesota title, despite incurring damage that costs more than 80% of its value or causes an insurance company to declare the vehicle a total loss.

The requirements for a “salvage” brand on high-value or late-model cars – those costing $9,000 or more or are five years or newer – remain the same.

Based on recommendations developed by a Salvage Title Task Force, the law broadens disclosure requirements to include all brands on the title, requires written notice from dealers that must be signed by the purchaser, and clarifies that oral disclosure is not required for online sales.

In-state and out-of-state vehicles will be treated consistently. Motorcycles as well as heavier commercial vehicles are now subject to the same title branding and disclosure requirements as other types of vehicles.

The law also makes clarifying changes for readability of the statutes and to conform to Department of Public Safety titling and branding practices.

Rep. Cheryl Youakim (DFL-Hopkins) and Sen. John Jasinski (R-Faribault) sponsor the law.

HF3296*/SF3072 /CH57


New Laws 2023

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HF3296* / SF3072 / CH57
House Chief Author: Youakim
Senate Chief Author: Jasinski
Effective Dates: See chapter summary in the file link above.
* The legislative bill marked with an asterisk denotes the file submitted to the governor.