This bill (S.F. No. 2309) proposes amendments to Minnesota Statutes 2024, section 168.27, subdivision 16, concerning the use of dealer plates by motor vehicle dealers. Key provisions include:

1. Purpose of Amendment: The bill modifies the dealer plate provisions to allow vehicles to be used for courtesy purposes by nonemployees under specific conditions.

2. Dealer Plate Regulations:

   • Dealer plates are issued to licensed motor vehicle dealers and may be used on vehicles owned by the dealership for private or business purposes under certain conditions.
   • The bill clarifies that vehicles leased to nonemployees, used for towing, or as service/parts vehicles may not use dealer plates.

3. Use by Nonemployees for Courtesy Vehicles:

   • The bill permits nonemployees to drive a dealer-plated vehicle if it is:
     1. Provided as part of a repair, service, or maintenance transaction.
     2. Regularly offered as a courtesy vehicle.
     3. Driven by a properly licensed and insured driver.
     4. Clearly identified as a courtesy vehicle and not for sale or resale during the lease.
     5. Marked with the dealer’s business name.
     6. Governed by a lease agreement outlining driver responsibilities and liabilities.

4. Definition of Courtesy Vehicle:

   • A courtesy vehicle is defined as a passenger automobile or truck temporarily provided at no or minimal cost while a customer’s vehicle is being serviced.
   • Such vehicles meeting the new criteria will be exempt from the standard 72-hour usage restriction and from motor vehicle title, registration, and sales tax requirements.

By implementing these changes, the bill formalizes the conditions under which dealer plates can be used for courtesy vehicles, ensuring clarity and compliance for motor vehicle dealers.