Subd. 5a.

Rental vehicles.

(a) Every plan of reparation security, wherever issued, insuring
a natural person as named insured, covering private passenger vehicles as defined under
section 65B.001, subdivision 3, and pickup trucks and vans as defined under section 168.002
must: (1) provide that all of the obligation for damage and loss of use to a rented private
passenger vehicle, including pickup trucks and vans as defined under section 168.002, and
rented trucks with a registered gross vehicle weight of 26,000 pounds or less would be
covered by the property damage liability portion of the plan; and (2) extend the plan's basic
economic loss benefits, residual liability insurance, and uninsured and underinsured motorist
coverages to the operation or use of the rented motor vehicle. This subdivision does not
apply to plans of reparation security covering only motor vehicles registered under section
168.10, subdivision 1a, 1b, 1c, deleted text beginordeleted text end 1d, new text beginor 1j, new text endor recreational vehicles as defined under section
168.002. The obligation of the plan must not be contingent on fault or negligence. In all
cases where the plan's property damage liability coverage is less than $35,000, the coverage
available under the subdivision must be $35,000. Other than as described in this paragraph;
paragraph (i), clause (2); or paragraph (j), nothing in this section amends or alters the
provisions of the plan of reparation security as to primacy of the coverages in this section.

(b) A vehicle is rented for purposes of this subdivision:

(1) if the rate for the use of the vehicle is determined on a monthly, weekly, or daily
basis; or

(2) during the time that a vehicle is loaned as a replacement for a vehicle being serviced
or repaired regardless of whether the customer is charged a fee for the use of the vehicle.

A vehicle is not rented for the purposes of this subdivision if the rate for the vehicle's
use is determined on a period longer than one month or if the term of the rental agreement
is longer than one month. A vehicle is not rented for purposes of this subdivision if the
rental agreement has a purchase or buyout option or otherwise functions as a substitute for
purchase of the vehicle.

(c) The policy or certificate issued by the plan must inform the insured of the application
of the plan to private passenger rental vehicles, including pickup trucks and vans as defined
under section 168.002, and that the insured may not need to purchase additional coverage
from the rental company.

(d) Where an insured has two or more vehicles covered by a plan or plans of reparation
security containing the rented motor vehicle coverage required under paragraph (a), the
insured may select the plan the insured wishes to collect from and that plan is entitled to a
pro rata contribution from the other plan or plans based upon the property damage limits
of liability. If the person renting the motor vehicle is also covered by the person's employer's
insurance policy or the employer's automobile self-insurance plan, the reparation obligor
under the employer's policy or self-insurance plan has primary responsibility to pay claims
arising from use of the rented vehicle.

(e) A notice advising the insured of rental vehicle coverage must be given by the
reparation obligor to each current insured with the first renewal notice after January 1, 1989.
The notice must be approved by the commissioner of commerce. The commissioner may
specify the form of the notice.

(f) When a motor vehicle is rented in this state, there must be attached to the rental
contract a separate form containing a written notice in at least 10-point bold type, if printed,
or in capital letters, if typewritten, which states:

"Under Minnesota law, a personal automobile insurance policy must: (1) cover the rental
of this motor vehicle against damage to the vehicle and against loss of use of the vehicle;
and (2) extend the policy's basic economic loss benefits, residual liability insurance, and
uninsured and underinsured motorist coverages to the operation or use of a rented motor
vehicle. Therefore, purchase of any collision damage waiver or similar insurance affected
in this rental contract is not necessary. In addition, purchase of any additional liability
insurance is not necessary if your policy was issued in Minnesota unless you wish to
have coverage for liability that exceeds the amount specified in your personal automobile
insurance policy."

No collision damage waiver or other insurance offered as part of or in conjunction with a
rental of a motor vehicle may be sold unless the person renting the vehicle provides a written
acknowledgment that the above consumer protection notice has been read and understood.

(g) When damage to a rented vehicle is covered by a plan of reparation security as
provided under paragraph (a), the rental contract must state that payment by the reparation
obligor within the time limits of section 72A.201 is acceptable, and prior payment by the
renter is not required.

(h) Compensation for the loss of use of a damaged rented motor vehicle is limited to a
period no longer than 14 days.

(i)(1) For purposes of this subdivision, "rented motor vehicle" means a rented vehicle
described in paragraph (a), using the definition of "rented" provided in paragraph (b).

(2) Notwithstanding section 169.09, subdivision 5a, an owner of a rented motor vehicle
is not vicariously liable for legal damages resulting from the operation of the rented motor
vehicle in an amount greater than $100,000 because of bodily injury to one person in any
one accident and, subject to the limit for one person, $300,000 because of injury to two or
more persons in any one accident, and $50,000 because of injury to or destruction of property
of others in any one accident, if the owner of the rented motor vehicle has in effect, at the
time of the accident, a policy of insurance or self-insurance, as provided in section 65B.48,
subdivision 3, covering losses up to at least the amounts set forth in this paragraph. Nothing
in this paragraph alters or affects the obligations of an owner of a rented motor vehicle to
comply with the requirements of compulsory insurance through a policy of insurance as
provided in section 65B.48, subdivision 2, or through self-insurance as provided in section
65B.48, subdivision 3, which policy of insurance or self-insurance must apply whenever
the operator is not covered by a plan of reparation security as provided under paragraph (a);
or with the obligations arising from section 72A.125 for products sold in conjunction with
the rental of a motor vehicle. Nothing in this paragraph alters or affects liability, other than
vicarious liability, of an owner of a rented motor vehicle.

(3) The dollar amounts stated in this paragraph shall be adjusted for inflation based upon
the Consumer Price Index for all urban consumers, known as the CPI-U, published by the
United States Bureau of Labor Statistics. The dollar amounts stated in this paragraph are
based upon the value of that index for July 1995, which is the reference base index for
purposes of this paragraph. The dollar amounts in this paragraph shall change effective
January 1 of each odd-numbered year based upon the percentage difference between the
index for July of the preceding year and the reference base index, calculated to the nearest
whole percentage point. The commissioner shall announce and publish, on or before
September 30 of the preceding year, the changes in the dollar amounts required by this
paragraph to take effect on January 1 of each odd-numbered year. The commissioner shall
use the most recent revision of the July index available as of September 1. Changes in the
dollar amounts must be in increments of $5,000, and no change shall be made in a dollar
amount until the change in the index requires at least a $5,000 change. If the United States
Bureau of Labor Statistics changes the base year upon which the CPI-U is based, the
commissioner shall make the calculations necessary to convert from the old base year to
the new base year. If the CPI-U is discontinued, the commissioner shall use the available
index that is most similar to the CPI-U.

(j) The plan of reparation security covering the owner of a rented motor vehicle is excess
of any residual liability coverage insuring an operator of a rented motor vehicle.

Subdivision 1.

Application.

(a) Except as provided in subdivisions 1a, 1b, 1c, 1d, 1g,
deleted text begin anddeleted text end 1h, new text beginand 1j, new text endevery owner of any motor vehicle in this state, not exempted by section
168.012 or 168.26, shall as soon as registered ownership of a motor vehicle is acquired and
annually thereafter during the period provided in section 168.31, file with the commissioner
of public safety on a blank provided by the commissioner a listing for taxation and application
for the registration of such vehicle, stating the first, middle and last names, the date of birth,
and the address of the primary residence of each registered owner thereof who is a natural
person or mailing address if the address of the primary residence has been classified as
private data under this chapter, the full name and address of any other registered owner, the
name and address of the person from whom purchased, make of motor vehicle, year and
number of the model, manufacturer's identification number or serial number, type of body,
the weight of the vehicle in pounds, for trailers only, its rated load carrying capacity and
for buses only, its seating capacity, and such other information as the commissioner may
require. Any false statement willfully and knowingly made in regard thereto shall be deemed
perjury and punished accordingly. The listing and application for registration by dealers or
manufacturers' agents within the state, of motor vehicles received for sale or use within the
state shall be accepted as compliance with the requirements of this chapter, imposed upon
the manufacturer.

(b) Registration shall be refused a motor vehicle if the original identification or serial
number has been destroyed, removed, altered, covered, or defaced. However, if the
commissioner is satisfied on the sworn statements of the registered owner or registered
owners or such other persons as the commissioner may deem advisable that the applicant
is the legal owner, a special identification number in the form prescribed by the commissioner
shall be assigned to the motor vehicle. When it has been determined that the number had
been affixed to such vehicle in a manner prescribed by the commissioner, the vehicle may
thereafter be registered in the same manner as other motor vehicles. In the case of a new or
rebuilt motor vehicle manufactured or assembled without an identification or serial number,
the commissioner may assign an identification number to the motor vehicle in the same
manner as prescribed heretofore.

Subd. 1e.

Outdoor storage.

Pioneer, classic, collector ve