Hutchinson Leader, 1 January, 2023
The challenge of buying a used vehicle might involve fewer unknowns thanks to one of several new laws passed during the Minnesota Legislature’s 2022 session, which took effect Jan. 1.
The law, sponsored by state Rep. Cheryl Youakim, DFL-Hopkins, and Sen. John Jasinski, R-Faribault, will help buyers seeking older, less expensive, vehicles will find out when the vehicle they’re considering has previously been significantly damaged or deemed to be totaled.
The law updates the state’s salvage title regulations by creating a “prior salvage” brand. It 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.
Postnatal care coverage required
One of the new laws taking effect Jan. 1 was actually passed in 2021, and made changes to private and public health coverage. Among its provisions, health plans will be required to cover:
a comprehensive postnatal visit with a health care provider not more than three weeks from the date of delivery; any postnatal visits recommended by a health care provider between three and 11 weeks from the date of delivery; and a comprehensive postnatal visit with a health care provider 12 weeks from the date of delivery.
The law was carried by Rep. Zack Stephenson (DFL-Coon Rapids) and Sen. Gary Dahms (R-Redwood Falls).
Consumers’ financial interest comes first
Another new law updates best interest standards in annuity sales to help protect consumers, especially older adults. Insurers can not put their financial interests ahead of the consumer.
According to the new law, when recommending an annuity, insurance agents should follow revised National Association of Insurance Commissioners standards, satisfying four conduct obligations: care, disclosure, conflict of interest and documentation. Under the law:
producers have a care obligation to know their customer and have a reasonable basis for their recommendation; producers have an obligation to disclose their licensing and how they will be compensated for the sale. For example, if they will be paid by commission or an asset management fee; producers must avoid and disclose conflict of interest, including sales incentives such as quotas, bonuses, or limited time contests; and producers have an obligation to document the basis of their recommendations.
Franchise renewal date changed
A new law, effective to initial registrations filed on or after Jan. 1, 2023, changes the due date for franchise renewals.
The deadline to renew a business registration will be the anniversary of the initial registration instead of 120 days after the end of the fiscal year.
Ericca Maas, director of policy and advocacy for Think Small, which administers the scholarships in Hennepin and Ramsey counties, said this week the group will continue to promote a middle-income expansion, even with legislators preaching austerity.
“That tension is how the system works,” she said.
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