Bill Text: MI HB4832 | 2011-2012 | 96th Legislature | Introduced


Bill Title: Occupations; individual licensing and regulation; persons eligible to buy salvage vehicles; revise. Amend secs. 17a, 57d, 217c, 248, 248c, 248f, 249a, 251 & 807 of 1949 PA 300 (MCL 257.17a et seq.) & repeals secs. 56c, 248b, 248e, 248g, 248h & 248i of 1949 PA 300 (MCL 257.56c et seq.). TIE BAR WITH: HB 4833'11

Spectrum: Partisan Bill (Republican 10-0)

Status: (Introduced - Dead) 2011-06-29 - Printed Bill Filed 06/29/2011 [HB4832 Detail]

Download: Michigan-2011-HB4832-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4832

 

June 28, 2011, Introduced by Reps. Muxlow, Denby, Goike, Knollenberg, Outman, Shaughnessy, Kowall, Damrow, Jenkins and Hooker and referred to the Committee on Transportation.

 

      A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending sections 17a, 57d, 217c, 248, 248c, 248f, 249a, 251,

 

and 807 (MCL 257.17a, 257.57d, 257.217c, 257.248, 257.248c,

 

257.248f, 257.249a, 257.251, and 257.807), sections 17a, 248c,

 

and 249a as amended and section 57d as added by 1993 PA 300,

 

sections 217c and 251 as amended by 2002 PA 642, section 248 as

 

amended by 2004 PA 495, section 248f as amended by 2006 PA 298,

 

and section 807 as amended by 2003 PA 152; and to repeal acts and

 

parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 17a. "Foreign salvage vehicle dealer buyer" means a

 

 2  person who that is a licensed dealer in another state and is


 

 1  engaged in this state in the business of purchasing, selling, or

 

 2  otherwise dealing on a wholesale basis in salvageable parts or

 

 3  vehicles of a type required to have a salvage or scrap

 

 4  certificate of title under this act or jurisdiction and acquires

 

 5  salvage or scrap vehicles exclusively for the purpose of taking

 

 6  those salvage or scrap vehicles out of this state.

 

 7        Sec. 57d. "Scrap certificate of title" means a document

 

 8  issued by the secretary of state evidencing ownership of a scrap

 

 9  vehicle, which may be assigned only to a scrap metal processor,

 

10  an automotive recycler, used or secondhand vehicle parts dealer,

 

11  or a foreign salvage vehicle dealer and reassignable only to a

 

12  vehicle scrap metal processor a person licensed under section 248

 

13  or a foreign salvage vehicle buyer.

 

14        Sec. 217c. (1) The secretary of state may conduct periodic

 

15  reviews of the records of a dealer to determine whether adequate

 

16  notice is given to a transferee or lessee of a rebuilt salvage

 

17  vehicle of that vehicle's prior designation as a salvage vehicle.

 

18  The secretary of state may request an insurance company to

 

19  provide copies of salvage title documents and claims reports

 

20  involving major component parts to assist the secretary of state

 

21  in monitoring compliance with this act.

 

22        (2) Except for a late model vehicle that has been stolen and

 

23  recovered and that has no major component part removed, missing,

 

24  or destroyed, or damaged and not salvageable, an insurance

 

25  company licensed to conduct business in this state that acquires

 

26  ownership of a late model vehicle through the payment of a claim

 

27  shall proceed under either of the following:


 

 1        (a) If the insurance company acquires ownership of the

 

 2  vehicle through payment of a claim, the owner of the vehicle

 

 3  shall assign the certificate of title to the insurance company

 

 4  which and the insurance company shall do all of the following:

 

 5        (i) Surrender a properly assigned certificate of title to the

 

 6  secretary of state.

 

 7        (ii) If the estimated cost of repair, including parts and

 

 8  labor, is equal to or more than 75% but less than 91% of the

 

 9  predamaged actual cash value of the vehicle, apply for a salvage

 

10  certificate of title, and if the estimated cost of repair,

 

11  including parts and labor, is equal to or greater than 91% of the

 

12  predamaged actual cash value of the vehicle, apply for a scrap

 

13  certificate of title. The insurance company shall not sell the

 

14  vehicle without first receiving a salvage or scrap certificate of

 

15  title, which shall be assigned the insurance company shall assign

 

16  to the buyer. An insurance company may assign a salvage or scrap

 

17  certificate of the title only to an automotive recycler, used or

 

18  secondhand vehicle parts dealer, foreign salvage vehicle dealer,

 

19  or vehicle scrap metal processor a person licensed under section

 

20  248 or a foreign salvage vehicle buyer.

 

21        (b) If after payment of a total loss claim the insurance

 

22  company permits the owner of the vehicle to retain ownership, the

 

23  insurance company shall do all of the following:

 

24        (i) If the estimated cost of repair, including parts and

 

25  labor, is equal to or greater than 75% but less than 91% of the

 

26  predamaged actual cash value of the vehicle, require each owner

 

27  of the vehicle to sign an application for a salvage certificate


 

 1  of title, or if the estimated cost of repair, including parts and

 

 2  labor, is equal to or greater than 91% of the predamaged actual

 

 3  cash value of the vehicle, require each owner of the vehicle to

 

 4  sign an application for a scrap vehicle certificate of title.

 

 5        (ii) Attach the owner's certificate of title to the

 

 6  application for a salvage or scrap certificate of title or have

 

 7  the owner certify that the certificate of title is lost.

 

 8        (iii) On behalf of the owner, apply to the secretary of state

 

 9  for a salvage or scrap certificate of title in the name of the

 

10  owner. The owner shall not sell or otherwise dispose of the

 

11  vehicle without first receiving a salvage or scrap certificate of

 

12  title, which shall be assigned to the buyer. An insurance company

 

13  may assign a salvage or scrap certificate of title only to an

 

14  automotive recycler, used or secondhand vehicle parts dealer,

 

15  foreign salvage vehicle dealer, or vehicle scrap metal processor

 

16  a person licensed under section 248 or a foreign salvage vehicle

 

17  buyer.

 

18        (3) If an insurance company acquires ownership of a vehicle

 

19  other than a late model vehicle through payment of damages due to

 

20  an accident, the company shall surrender a properly assigned

 

21  title to the buyer upon delivery.

 

22        (4) If a dealer acquires ownership of a late model vehicle

 

23  that is a distressed vehicle from an owner, the dealer shall

 

24  receive an assigned certificate of title. If the assigned

 

25  certificate of title is not a salvage or scrap certificate of

 

26  title, the dealer, other than if the dealer is not a vehicle

 

27  scrap metal processor, shall surrender the assigned certificate


 

 1  of title to the secretary of state, and if the estimated cost of

 

 2  repair, including parts and labor, is equal to or greater than

 

 3  75% but less than 91% of the predamaged actual cash value of the

 

 4  vehicle, apply for a salvage certificate of title, or if the

 

 5  estimated cost of repair, including parts and labor, is equal to

 

 6  or greater than 91% of the predamaged actual cash value of the

 

 7  vehicle, apply for a scrap certificate of title within 5 days

 

 8  after the dealer receives the assigned certificate of title. The

 

 9  dealer may sell a salvage vehicle to another automotive recycler,

 

10  used or secondhand vehicle parts dealer, foreign salvage vehicle

 

11  dealer, or vehicle scrap metal processor a person licensed under

 

12  section 248 or a foreign salvage vehicle buyer by assigning the

 

13  salvage certificate of title to the buyer. Unless the vehicle is

 

14  rebuilt, inspected, and recertified pursuant to this section, if

 

15  the vehicle is sold to a buyer other than a dealer, application

 

16  shall be made submitted for a salvage certificate in the name of

 

17  the buyer in the manner provided in this act. The dealer may sell

 

18  a scrap vehicle only to a vehicle scrap metal processor a person

 

19  licensed under section 248 or a foreign salvage vehicle buyer. A

 

20  vehicle scrap metal processor shall surrender an assigned

 

21  certificate of title to the secretary of state within 30 days

 

22  after acquiring a vehicle for which a certificate of title was

 

23  received. A vehicle scrap metal processor shall surrender an

 

24  assigned salvage or scrap certificate of title to the secretary

 

25  of state within 30 days after acquiring a vehicle for which a

 

26  salvage or scrap certificate of title was received and report

 

27  that the vehicle was destroyed or scrapped.


 

 1        (5) An application for a scrap certificate of title shall be

 

 2  made submitted on a form prescribed by the secretary of state

 

 3  accompanied by a fee of $15.00. The application shall contain all

 

 4  of the following:

 

 5        (a) The complete name and current address of the owner.

 

 6        (b) A description of the vehicle, including its make, style

 

 7  of body, model year, fee category or weight, color, and vehicle

 

 8  identification number.

 

 9        (c) If the vehicle is a late model vehicle, a listing of

 

10  each major component part that was not salvageable.

 

11        (d) Further Any other information as may reasonably be

 

12  required by the secretary of state.

 

13        (6) The A scrap certificate of title shall authorize the

 

14  holder of the document to transport but not drive upon a highway

 

15  the vehicle or parts of a vehicle, and assign ownership to a

 

16  vehicle scrap metal processor, automotive recycler, used or

 

17  secondhand vehicle parts dealer, or foreign salvage vehicle

 

18  dealer a person licensed under section 248 or a foreign salvage

 

19  vehicle buyer. A The secretary of state shall not issue a

 

20  certificate of title shall not again be issued for this vehicle

 

21  for a vehicle for which a scrap certificate of title is issued. A

 

22  person shall not rebuild or repair a scrap vehicle and allow it

 

23  to retain the original vehicle identification number.

 

24        (7) If a person, other than a dealer or insurance company

 

25  that is subject to subsection (2) or (4), acquires ownership of a

 

26  distressed, late model vehicle, the person shall surrender the

 

27  title or assigned certificate of title to the secretary of state,


 

 1  and if the estimated cost of repair, including parts and labor,

 

 2  is equal to or greater than 75% but less than 91% of the

 

 3  predamaged actual cash value of the vehicle, apply for a salvage

 

 4  certificate of title, or if the estimated cost of repair,

 

 5  including parts and labor, is equal to or greater than 91% of the

 

 6  predamaged actual cash value of the vehicle, apply for a scrap

 

 7  certificate of title before the vehicle may be is transported.

 

 8        (8) An owner of a vehicle may determine that a the vehicle

 

 9  is a scrap vehicle or a salvage vehicle without making any

 

10  determination as to the actual cash value of the vehicle.

 

11        (9) If a leasing company, vehicle manufacturer, insurance

 

12  company not licensed to do business in this state, association,

 

13  repossession company, self-insured owner, financial institution,

 

14  governmental entity, or other company, institution, or entity,

 

15  owns a distressed, late model vehicle, the titleholder shall

 

16  surrender the title or assigned certificate of title to the

 

17  secretary of state and apply for a salvage certificate of title

 

18  if the retail cost of repair, including parts and labor, is equal

 

19  to or greater than 75% but less than 91% of the predamaged actual

 

20  cash value of the vehicle, or if the retail cost of repair,

 

21  including parts and labor, is equal to or greater than 91% of the

 

22  predamaged actual cash value of the vehicle, apply for a scrap

 

23  certificate of title, before the vehicle may be is transported or

 

24  sold. If ownership is transferred, the owner shall sell the

 

25  vehicle only to a dealer who is eligible to buy a salvage or

 

26  scrap vehicle in this state unless the owner complies with

 

27  subsection (12) a person licensed under section 248 or a foreign


 

 1  salvage vehicle buyer. When a leasing company, vehicle

 

 2  manufacturer, insurance company not licensed to do business in

 

 3  this state, association, repossession company, self-insured

 

 4  owner, financial institution, governmental entity, or other

 

 5  company, institution, or entity, estimates the repair of a

 

 6  distressed, late model vehicle for the purpose of determining

 

 7  whether to apply for a salvage or scrap certificate of title, a

 

 8  complete record of the estimate and, if the vehicle is repaired

 

 9  before a transfer of ownership, a complete record of the actual

 

10  cost of the repairs performed and by whom shall be maintained for

 

11  a minimum of 5 years by the leasing company, vehicle

 

12  manufacturer, insurance company not licensed to do business in

 

13  this state, association, repossession company, self-insured

 

14  owner, financial institution, governmental entity, or other

 

15  company, institution, or entity. The estimates and repair records

 

16  required by this subsection shall be available for unannounced

 

17  inspections by a law enforcement agency or a representative of

 

18  the secretary of state. The secretary of state may request a

 

19  leasing company, vehicle manufacturer, insurance company not

 

20  licensed to do business in this state, association, repossession

 

21  company, self-insured owner, financial institution, governmental

 

22  entity, or other company, institution, or entity to provide

 

23  copies of title documents, repair estimates, claims reports

 

24  involving major component parts, and actual cash value

 

25  determination documents to assist the secretary of state in

 

26  monitoring compliance with this act.

 

27        (10) An application for a salvage certificate of title shall


 

 1  be made submitted on a form prescribed by the secretary of state

 

 2  accompanied by a fee of $10.00. The application shall contain all

 

 3  of the following:

 

 4        (a) The complete name and current address of the owner.

 

 5        (b) A description of the vehicle, including its make, style

 

 6  of body, model year, fee category or weight, color, and vehicle

 

 7  identification number.

 

 8        (c) An estimate of the cost repair, including parts and

 

 9  labor, and an estimate of the predamaged actual cash value of the

 

10  vehicle.

 

11        (d) If the vehicle is a late model vehicle, a listing of

 

12  each major component part that was not salvageable.

 

13        (e) Further information as may reasonably be required by the

 

14  secretary of state.

 

15        (11) The secretary of state shall issue and mail the salvage

 

16  certificate within 5 business days after the time the application

 

17  is received at the secretary of state's office in Lansing. Each

 

18  salvage certificate of title shall include a listing of each

 

19  major component part that was not salvageable.

 

20        (12) A salvage certificate of title authorizes the holder of

 

21  the title to possess, transport, but not drive upon a highway,

 

22  and transfer ownership in, a vehicle. The secretary of state

 

23  shall not issue a certificate of title or registration plates for

 

24  a vehicle for which a salvage certificate of title was issued

 

25  unless a specially trained officer described in subsection (14)

 

26  (15) certifies all of the following:

 

27        (a) That the vehicle identification numbers and parts


 

 1  identification numbers are correct.

 

 2        (b) That the applicant has proof of ownership of repair

 

 3  parts used.

 

 4        (c) That the vehicle complies with the equipment standards

 

 5  of this act.

 

 6        (13) The certification required by subsection (12) shall be

 

 7  made submitted on a form prescribed and furnished by the

 

 8  secretary of state in conjunction with the department of state

 

 9  police and shall accompany the application that is submitted to

 

10  the secretary of state for a certificate of title. An application

 

11  for a certificate of title shall contain a description of each

 

12  salvageable part used to repair the vehicle and any

 

13  identification number affixed to or inscribed upon the part as

 

14  required by state or federal law. Upon satisfactory completion of

 

15  the inspection as required by the secretary of state and other

 

16  requirements for application, the secretary of state shall issue

 

17  a certificate of title for the vehicle bearing the legend

 

18  "rebuilt salvage".

 

19        (14) An officer specially trained as provided by the

 

20  secretary of state and authorized by the secretary of state under

 

21  subsection (15) to conduct a salvage vehicle inspection is either

 

22  shall be 1 of the following:

 

23        (a) An on-duty or off-duty police officer.

 

24        (b) A previously certified police officer who is appointed

 

25  by the local police agency as a limited enforcement officer to

 

26  conduct salvage vehicle inspections. The local police agency

 

27  shall give this officer access to the agency's law enforcement


 

 1  information network system and the authority to confiscate any

 

 2  stolen vehicle or vehicle parts discovered during an inspection.

 

 3  The local police agency may give the officer the authority to

 

 4  arrest a person suspected of having unlawful possession of a

 

 5  stolen vehicle or vehicle parts.

 

 6        (15) The secretary of state shall issue a certificate to an

 

 7  officer who is specially trained, as provided determined by the

 

 8  secretary of state to conduct salvage vehicle inspections. Only a

 

 9  person who has a valid certification from the secretary of state

 

10  may perform salvage vehicle inspections. The secretary of state,

 

11  on his or her own initiative or in response to complaints, shall

 

12  make reasonable and necessary public or private investigations

 

13  within or outside of this state and gather evidence against an

 

14  officer who was issued a certificate and who violated or is about

 

15  to violate this act or a rule promulgated under this act. The

 

16  secretary of state may suspend, revoke, or deny a certificate

 

17  after an investigation if the secretary of state determines that

 

18  the officer committed 1 or more of the following:

 

19        (a) Violated this act or a rule promulgated under this act.

 

20        (b) Was found guilty of a fraudulent act in connection with

 

21  the inspection, purchase, sale, lease, or transfer of a salvage

 

22  vehicle.

 

23        (c) Was found guilty of the theft, embezzlement, or

 

24  misappropriation of salvage vehicle inspection fees.

 

25        (d) Performed improper, careless, or negligent salvage

 

26  vehicle inspections.

 

27        (e) Ceased to function as a police officer because of


 

 1  suspension, retirement, dismissal, disability, or termination of

 

 2  employment.

 

 3        (f) Was convicted of a violation or attempted violation of

 

 4  1986 PA 119, MCL 257.1351 to 257.1355.

 

 5        (g) Made a false statement of a material fact in his or her

 

 6  certification of a salvage vehicle inspection or any record

 

 7  concerning a salvage vehicle inspection.

 

 8        (16) Upon receipt of the If he or she receives an

 

 9  appropriate abstract of conviction from a court, and without any

 

10  investigation, the secretary of state shall without any

 

11  investigation immediately revoke the certificate of an officer

 

12  described in subsection (15) who has been convicted of a

 

13  violation or attempted violation of section 413, 414, 415, 535,

 

14  535a, or 536a of the Michigan penal code, 1931 PA 328, MCL

 

15  750.413, 750.414, 750.415, 750.535, 750.535a, and 750.536a, or

 

16  has been convicted in federal court or in another state of a

 

17  violation or attempted violation of a law substantially

 

18  corresponding to 1 of those sections.

 

19        (17) If a dealer acquires ownership of an older model

 

20  vehicle from an owner, the dealer shall receive an assigned

 

21  certificate of title and shall retain it as long as he or she

 

22  retains the vehicle. A vehicle scrap metal processor shall

 

23  surrender an assigned certificate of title to the secretary of

 

24  state within 30 days after the vehicle is destroyed or scrapped.

 

25        (18) A dealer selling or assigning a vehicle to a vehicle

 

26  scrap metal processor shall make a record in triplicate on a form

 

27  to be provided by the secretary of state in substantially the


 

 1  following form:

 

 

                        Scrap Vehicle Inventory:

   SELLER:    Dealer name ________________________________________

              Dealer address _____________________________________

              Dealer license number ______________________________

PURCHASER:    Conveyed to:_________________________ Date__________

              (Vehicle scrap metal processor)

              Dealer address _____________________________________

              Dealer license number ______________________________

10              

11                               Vehicles

 

 

 

12                                                    Dealer's  

13                                                    Stock    

14 Model Year     Vehicle Make   VIN   Title Number   Number    Color

15 1.________     ____________   ___   ____________   ______     _____

16 2.________     ____________   ___   ____________   ______     _____

17 3.________     ____________   ___   ____________   ______     _____

18 etc.                                                         

 

 

 

19 One copy shall be retained as a permanent record by the dealer,

20 1 copy shall be forwarded with the vehicle to be retained by the

21 vehicle scrap metal processor, and 1 copy shall be forwarded to

22 the secretary of state.

 

 

23        (19) A person , other than an automotive recycler, used or

 

24  secondhand vehicle parts dealer, or a foreign salvage dealer,

 

25  receiving that receives a salvage or scrap certificate of title

 


 1  shall not may sell the vehicle to anyone other than 1 of the

 

 2  following:

 

 3        (a) The vehicle's former owner.

 

 4        (b) A used or secondhand vehicle parts dealer.

 

 5        (c) A vehicle scrap metal processor.

 

 6        (d) A foreign salvage vehicle dealer licensed under this

 

 7  act.

 

 8        (e) An automotive recycler.

 

 9        (20) A person receiving a scrap certificate of title shall

 

10  not sell the vehicle to anyone other than 1 of the following:

 

11        (a) An automotive recycler.

 

12        (b) A vehicle scrap metal processor.

 

13        (c) A foreign salvage vehicle dealer licensed under this

 

14  act.

 

15        (d) A used or secondhand vehicle parts dealer. a person

 

16  licensed under section 248 or a foreign salvage vehicle buyer.

 

17        (20) (21) The secretary of state may conduct periodic

 

18  reviews of the records of a dealer to determine whether adequate

 

19  notice is given to a transferee or lessee of a rebuilt salvage

 

20  vehicle of that vehicle's prior designation as a salvage vehicle.

 

21  The secretary of state may request an insurance company to

 

22  provide copies of salvage title documents and claims reports

 

23  involving major component parts to assist the secretary of state

 

24  in monitoring compliance with this act.

 

25        (22) A licensed automotive recycler, used or secondhand

 

26  vehicle parts dealer, vehicle scrap metal processor, vehicle

 

27  salvage pool operator, distressed vehicle transporter, foreign

 


 1  salvage vehicle dealer, or broker who has removed a scrap vehicle

 

 2  from this state for the purpose of rebuilding the vehicle or

 

 3  selling or leasing the vehicle to a person other than a vehicle

 

 4  scrap metal processor, shall receive an automatic suspension of

 

 5  its dealer license and of any salvage vehicle agent's license

 

 6  assigned to that dealer for a period of 30 days. Upon receipt by

 

 7  the secretary of state of a written request from the dealer, the

 

 8  dealer shall have the right to an immediate hearing on the matter

 

 9  within that 30-day period.

 

10        (21) (23) For the purpose of this section, the estimated

 

11  costs of the repair parts shall be determined by using the

 

12  current published retail cost of original manufacturer equipment

 

13  parts or an estimate of the actual cost of the repair parts. The

 

14  estimated labor costs shall be computed by using the hourly rate

 

15  and time allocations which are reasonable and commonly assessed

 

16  in the repair industry in the community where the repairs are

 

17  performed.

 

18        (22) (24) A police agency shall charge a fee for an

 

19  inspection of a vehicle pursuant to under subsection (12). Each

 

20  local authority with a police agency shall determine the amount

 

21  of the fee for inspections by that police agency, which shall not

 

22  exceed $100.00. The police agency shall credit the fee to the

 

23  budget of that police agency and use the fee for law enforcement

 

24  purposes that affect stolen vehicles, stolen vehicle parts, and

 

25  salvage vehicle inspections. A local police agency shall

 

26  compensate an off-duty and limited enforcement police officer for

 

27  a salvage vehicle inspection.

 


 1        (23) (25) For the purpose of this section, "actual cash

 

 2  value" means the retail dollar value of a vehicle as determined

 

 3  by an objective vehicle evaluation using local market resources

 

 4  such as dealers or want ads or by an independent vehicle

 

 5  evaluation or vehicle appraisal service or by a current issue of

 

 6  a nationally recognized used vehicle guide for financial

 

 7  institution appraisal purposes in this state.

 

 8        Sec. 248. (1) The secretary of state shall not grant a

 

 9  dealer license under this section until an investigation is made

 

10  of the applicant's qualifications under this act, except that

 

11  this subsection does not apply to license renewals. The secretary

 

12  of state shall make the investigation within 15 days after

 

13  receiving the application and make a report on the investigation.

 

14        (2) An applicant for a new vehicle dealer or a used or

 

15  secondhand vehicle dealer or broker license shall include a

 

16  properly executed bond or renewal certificate with the

 

17  application. If a renewal certificate is used, the bond is

 

18  considered renewed for each succeeding year in the same amount

 

19  and with the same effect as an original bond. The bond shall be

 

20  in the sum of $10,000.00 with good and sufficient surety to be

 

21  approved by the secretary of state. The bond shall indemnify or

 

22  reimburse a purchaser, seller, lessee, financing agency, or

 

23  governmental agency for monetary loss caused through fraud,

 

24  cheating, or misrepresentation in the conduct of the vehicle

 

25  business whether the fraud, cheating, or misrepresentation was

 

26  made by the dealer or by an employee, agent, or salesperson of

 

27  the dealer. The surety shall make indemnification or

 


 1  reimbursement for a monetary loss only after judgment based on

 

 2  fraud, cheating, or misrepresentation has been entered in a court

 

 3  of record against the licensee. The bond shall also indemnify or

 

 4  reimburse the state for any sales tax deficiency as provided in

 

 5  the general sales tax act, 1933 PA 167, MCL 205.51 to 205.78, or

 

 6  use tax deficiency as provided in the use tax act, 1937 PA 94,

 

 7  MCL 205.91 to 205.111, for the year in which the bond is in

 

 8  force. The surety shall make indemnification or reimbursement

 

 9  only after final judgment has been entered in a court of record

 

10  against the licensee. A dealer or applicant who that has

 

11  furnished satisfactory proof that a bond similar to the bond

 

12  required by this subsection is executed and in force is exempt

 

13  from the bond provisions set forth in this subsection. The

 

14  aggregate liability of the surety shall not exceed the sum of the

 

15  bond. The surety on the bond may cancel the bond upon giving 30

 

16  days' notice in writing to the secretary of state and thereafter

 

17  is not liable for a breach of condition occurring after the

 

18  effective date of the cancellation.

 

19        (3) An applicant for a new vehicle dealer or a used or

 

20  secondhand vehicle dealer license shall apply for not less than 2

 

21  dealer plates as provided by under section 245 and shall include

 

22  with the application the proper fee as provided by for those

 

23  plates under section 803.

 

24        (4) As a condition precedent to the granting of a license, a

 

25  dealer shall file with the secretary of state an irrevocable

 

26  written stipulation, authenticated by the applicant, stipulating

 

27  and agreeing that legal process affecting the dealer, served on

 


 1  the secretary of state or a deputy of the secretary of state, has

 

 2  the same effect as if personally served on the dealer. This

 

 3  appointment remains in force as long as the dealer has any

 

 4  outstanding liability within this state.

 

 5        (5) A person shall not carry on or conduct the business of

 

 6  buying, selling, brokering, leasing, negotiating a lease, or

 

 7  dealing in 5 or more vehicles of a type required to be titled

 

 8  under this act in a 12-month period unless the person obtains a

 

 9  dealer license from the secretary of state authorizing the

 

10  carrying on or conducting of that business. A person shall not

 

11  carry on or conduct the business of buying, selling, brokering,

 

12  leasing, negotiating a lease, or dealing in 5 or more distressed,

 

13  late model vehicles or salvageable parts to 5 or more of those

 

14  vehicles in a 12-month period unless the person obtains a used or

 

15  secondhand vehicle parts dealer , an automotive recycler, or a

 

16  salvage pool license from the secretary of state or is an

 

17  insurance company admitted to conduct business in this state. A

 

18  person shall not carry on or conduct the business of buying 5 or

 

19  more vehicles in a 12-month period to process into scrap metal or

 

20  store or display 5 or more vehicles in a 12-month period as an

 

21  agent or escrow agent of an insurance company unless the person

 

22  obtains a dealer license from the secretary of state. A vehicle

 

23  scrap metal processor who that does not purchase vehicles or

 

24  salvageable parts from unlicensed persons is not required to

 

25  obtain a dealer license. A person from another state shall not

 

26  purchase, sell, or otherwise deal in distressed, late model

 

27  vehicles or salvageable parts unless the person obtains a foreign

 


 1  salvage vehicle dealer license from the secretary of state as

 

 2  prescribed under section 248b. A person, including a dealer,

 

 3  shall not purchase or acquire a distressed, late model vehicle or

 

 4  a salvageable part through a salvage pool, auction, or broker

 

 5  without a license as a salvage vehicle agent. The secretary of

 

 6  state shall investigate and seek prosecution, if necessary, of

 

 7  persons allegedly conducting a business without a license. This

 

 8  section does not apply to a foreign salvage vehicle buyer.

 

 9        (6) The application for a dealer license shall be in the

 

10  form prescribed by the secretary of state and shall be signed by

 

11  the applicant. In addition to other information as may be

 

12  required by the secretary of state, the application shall include

 

13  all of the following:

 

14        (a) Name of applicant.

 

15        (b) Location of applicant's established place of business in

 

16  this state, together with written verification from the

 

17  appropriate governing or zoning authority that the established

 

18  place of business meets all applicable municipal and zoning

 

19  requirements.

 

20        (c) The name under which business is to be conducted.

 

21        (d) If the business is a corporation, the state of

 

22  incorporation.

 

23        (e) Name, address, date of birth, and social security number

 

24  of each owner or partner and, if a corporation, the name,

 

25  address, date of birth, and social security number of each of the

 

26  principal officers.

 

27        (f) The county in which the business is to be conducted and

 


 1  the address of each place of business in that county.

 

 2        (g) If new vehicles are to be sold, the make to be handled.

 

 3  Each new vehicle dealer shall send with the application for

 

 4  license a certification that the dealer holds a bona fide

 

 5  contract to act as factory representative, factory distributor,

 

 6  or distributor representative to sell at retail ......... (the

 

 7  make of vehicle to be sold).

 

 8        (h) A statement of the previous history, record, and

 

 9  associations of the applicant and of each owner, partner,

 

10  officer, and director. The statement shall be sufficient to

 

11  establish to the satisfaction of the secretary of state the

 

12  business reputation and character of the applicant.

 

13        (i) A statement showing whether the applicant has previously

 

14  applied for a license, the result of the application, and whether

 

15  the applicant has ever been the holder of a dealer license that

 

16  was revoked or suspended.

 

17        (j) If the applicant is a corporation or partnership, a

 

18  statement showing whether a partner, employee, officer, or

 

19  director has been refused a license or has been the holder of a

 

20  license that was revoked or suspended.

 

21        (k) If the application is for a used or secondhand vehicle

 

22  parts dealer or an automotive recycler, it shall include all of

 

23  the following:

 

24        (i) Evidence that the applicant maintains or will maintain an

 

25  established place of business.

 

26        (ii) Evidence that the applicant maintains or will maintain a

 

27  police book and vehicle parts purchase and sales and lease

 


 1  records as required under this act.

 

 2        (iii) Evidence of worker's compensation insurance coverage for

 

 3  employees classified under the North American industrial

 

 4  classification system number 42114, entitled "motor vehicle parts

 

 5  (used) wholesalers" or under the national council on compensation

 

 6  insurance classification code number 3821, entitled "automobile

 

 7  dismantling and drivers", if applicable.

 

 8        (l) Certification that neither the applicant nor another

 

 9  person named on the application is acting as the alter ego of any

 

10  other person or persons in seeking the license. For the purpose

 

11  of this subdivision, "alter ego" means a person who acts for and

 

12  on behalf of, or in the place of, another person for purposes of

 

13  obtaining a vehicle dealer license.

 

14        (7) A person shall apply separately for a dealer license for

 

15  each county in which business is to be conducted. Before moving 1

 

16  or more of his or her places of business or opening an additional

 

17  place of business, a dealer shall apply to the secretary of state

 

18  for and obtain a supplemental dealer license. , for which The

 

19  secretary of state shall not charge a fee shall not be charged. A

 

20  for a supplemental dealer license and shall be issued issue the

 

21  license only for a location, including a tent, temporary stand,

 

22  or any temporary quarters, that does not meet the definition of

 

23  an established place of business, within the county in which the

 

24  dealer's established place of business is located. A dealer

 

25  license entitles the dealer to conduct the business of buying,

 

26  selling, leasing, and dealing in vehicles or salvageable parts in

 

27  the county covered by the license. The dealer license shall also

 


 1  entitle the dealer to conduct at any other licensed dealer's

 

 2  established place of business in this state only the business of

 

 3  buying, selling, leasing, or dealing in vehicles at wholesale.

 

 4        (8) The secretary of state shall classify and differentiate

 

 5  vehicle dealers according to the type of activity they perform. A

 

 6  dealer shall not engage in activities of a particular

 

 7  classification as provided in this act unless the dealer is

 

 8  licensed in that classification. An applicant may apply for a

 

 9  dealer license in 1 or more of the following classifications:

 

10        (a) New vehicle dealer.

 

11        (b) Used or secondhand vehicle dealer.

 

12        (c) Used or secondhand vehicle parts dealer.

 

13        (d) Vehicle scrap metal processor.

 

14        (e) Vehicle salvage pool operator.

 

15        (f) Distressed vehicle transporter.

 

16        (g) Broker.

 

17        (h) Foreign salvage vehicle dealer.

 

18        (h) (i) Automotive recycler.

 

19        (i) (j) Beginning April 1, 2005, wholesaler Wholesaler.

 

20        (9) A dealer license expires on December 31 of the last year

 

21  for which the license is issued. The secretary of state may renew

 

22  a dealer license for a period of not more than 4 years upon

 

23  application and payment of the fee required by section 807.

 

24        (10) A dealer may conduct the business of buying, selling,

 

25  or dealing in motor homes, trailer coaches, trailers, or pickup

 

26  campers at a recreational vehicle show conducted at a location in

 

27  this state without obtaining a separate or supplemental license

 


 1  under subsection (7) if all of the following apply:

 

 2        (a) The dealer is licensed as a new vehicle dealer or used

 

 3  or secondhand vehicle dealer.

 

 4        (b) The duration of the recreational vehicle show is not

 

 5  more than 14 days.

 

 6        (c) Not less than 14 days before the beginning date of the

 

 7  recreational vehicle show, the show producer notifies the

 

 8  secretary of state, in a manner and form prescribed by the

 

 9  secretary of state, that the recreational vehicle show is

 

10  scheduled, the location, dates, and times of the recreational

 

11  vehicle show, and the name, address, and dealer license number of

 

12  each dealer participating in the recreational vehicle show.

 

13        Sec. 248c. (1) A vehicle salvage pool or broker shall not

 

14  sell, transfer, or release a distressed, late model vehicle to

 

15  anyone other than 1 or more of the following:

 

16        (a) The vehicle's former owner.

 

17        (b) A used or secondhand vehicle parts dealer.

 

18        (c) A vehicle scrap metal processor.

 

19        (d) A foreign salvage vehicle dealer licensed under this

 

20  act.

 

21        (e) A registered motor vehicle repair facility engaging in

 

22  body work.

 

23        (2) Subsection (1) applies until July 1, 1994.

 

24        (3) A vehicle salvage pool, auction, or broker shall not may

 

25  sell, transfer, or release a distressed, late model vehicle to

 

26  anyone other than 1 or more of the following:

 

27        (a) The vehicle's former owner.

 


 1        (b) A licensed salvage agent of an automotive recycler.

 

 2        (c) A licensed salvage agent of a foreign salvage vehicle

 

 3  dealer.

 

 4        (4) Subsection (3) applies beginning July 1, 1994. the

 

 5  vehicle's former owner, a person licensed under section 248, or a

 

 6  foreign salvage vehicle buyer.

 

 7        Sec. 248f. (1) The secretary of state shall not license a

 

 8  person as a vehicle dealer or salvage vehicle agent before

 

 9  requesting a criminal history check of the person and receiving a

 

10  criminal history report of the person from both the department of

 

11  state police and federal bureau of investigation.

 

12        (2) Each criminal history check required under this section

 

13  shall be requested, and a criminal history report shall be

 

14  obtained, from both the department of state police and the

 

15  federal bureau of investigation.

 

16        (3) Each person required to be named on an application shall

 

17  submit his or her fingerprints for a criminal history check to

 

18  the department of state police in a format as prescribed by the

 

19  department of state police. The fees required by the department

 

20  of state police or the federal bureau of investigation, as

 

21  applicable, to conduct the criminal history check shall accompany

 

22  a request for a criminal history check.

 

23        (4) The department of state police shall conduct a criminal

 

24  history check not more than 45 days after receiving a proper

 

25  request and the required fee for a criminal history check under

 

26  this section. After conducting the criminal history check and

 

27  within the same 45-day period, the department of state police

 


 1  shall provide the secretary of state with a report of the

 

 2  criminal history check. The report shall contain public criminal

 

 3  history record information concerning the person who that is the

 

 4  subject of the request that is maintained by the department of

 

 5  state police.

 

 6        (5) If a criminal arrest fingerprint card is subsequently

 

 7  submitted to the department of state police and matches against a

 

 8  fingerprint that was submitted under this section and stored in

 

 9  its automated fingerprint identification system (AFIS) database,

 

10  the department of state police shall notify the department.

 

11        (6) Except as otherwise provided in this act, the secretary

 

12  of state shall not approve an original vehicle dealer or salvage

 

13  vehicle agent license before receiving and reviewing the

 

14  applicable criminal history reports from the department of state

 

15  police and the federal bureau of investigation.

 

16        (7) The secretary of state shall use criminal history record

 

17  information received under this section to evaluate an

 

18  applicant's qualifications to receive a vehicle dealer or salvage

 

19  vehicle agent license under this act. The secretary of state may

 

20  only discuss a criminal history report or its contents with the

 

21  following people:

 

22        (a) Staff of the secretary of state who are involved in

 

23  determining whether an applicant's vehicle dealer license or

 

24  salvage vehicle agent license should be denied, suspended, or

 

25  revoked.

 

26        (b) Staff of the department of state police.

 

27        (c) A person who was involved in the prosecution or defense

 


 1  of a criminal matter noted in a criminal history report.

 

 2        (d) The applicant or his or her attorney.

 

 3        (8) A person who that violates subsection (7) is guilty of a

 

 4  misdemeanor punishable by a fine of not more than $10,000.00.

 

 5        (9) As used in this section, "criminal history record

 

 6  information" means that term as defined in section 1a of 1925 PA

 

 7  289, MCL 28.241a.

 

 8        (10) Except for subsection (5), this section does not apply

 

 9  to a person whose criminal history has previously been

 

10  investigated by the secretary of state and who is applying for

 

11  the renewal of a vehicle dealer license. or salvage vehicle agent

 

12  license.

 

13        Sec. 249a. (1) The secretary of state may deny the

 

14  application of a person for a license as an automotive recycler,

 

15  a used or secondhand vehicle parts dealer, or a vehicle scrap

 

16  metal processor , or a foreign salvage vehicle dealer and refuse

 

17  that person a license as an automotive recycler, a used or

 

18  secondhand vehicle parts dealer, or a vehicle scrap metal

 

19  processor, or a foreign salvage vehicle dealer, or may suspend or

 

20  revoke a license already issued, if the secretary of state finds

 

21  that 1 or more of the following apply:

 

22        (a) The applicant or licensee has made a false statement of

 

23  a material fact in his or her the license application.

 

24        (b) The applicant or licensee has not complied with this act

 

25  or a rule promulgated under this chapter.

 

26        (c) The applicant or licensee has been was convicted of

 

27  violating Act No. 119 of the Public Acts of 1986, being sections

 


 1  257.1351 to 257.1355 of the Michigan Compiled Laws 1986 PA 119,

 

 2  MCL 257.1351 to 257.1355.

 

 3        (d) If the applicant or licensee is a foreign salvage

 

 4  vehicle dealer, has had his or her dealer license in another

 

 5  state expire, or has had his or her dealer license in another

 

 6  state revoked, suspended, or canceled.

 

 7        (d) (e) If the applicant or licensee is an automotive

 

 8  recycler , or a used or secondhand vehicle parts dealer , or a

 

 9  foreign salvage vehicle dealer and has no established place of

 

10  business used for the purpose of selling, displaying, or offering

 

11  for sale used or secondhand vehicle parts or does not have a

 

12  vehicle dismantling facility or does not have evidence of

 

13  worker's compensation insurance coverage for employees classified

 

14  under the standard industrial classification number 4015,

 

15  entitled "motor vehicle parts—used" the North American industrial

 

16  classification system number 42114, entitled "motor vehicle parts

 

17  (used) wholesalers" or under the national council on compensation

 

18  insurance code number 3821, entitled "automobile dismantling and

 

19  drivers", if applicable.

 

20        (2) The secretary of state shall deny the application of a

 

21  person for a license as an automotive recycler, a used or

 

22  secondhand vehicle parts dealer, or a vehicle scrap metal

 

23  processor , or a foreign salvage vehicle dealer and refuse that

 

24  person a license as an automotive recycler, a used or secondhand

 

25  vehicle parts dealer, or a vehicle scrap metal processor , or a

 

26  foreign salvage vehicle dealer, or shall suspend or revoke a

 

27  license already issued, if the secretary of state finds that 1 or

 


 1  more of the following apply:

 

 2        (a) The applicant or licensee has been guilty of a

 

 3  fraudulent act in connection with selling or otherwise dealing in

 

 4  major component parts or vehicles of a type required to be

 

 5  registered under this act.

 

 6        (b) The applicant or licensee has possessed a vehicle or a

 

 7  vehicle part which has been confiscated under section 415 of the

 

 8  Michigan penal code, Act No. 328 of the Public Acts of 1931,

 

 9  being section 750.415 of the Michigan Compiled Laws 1931 PA 328,

 

10  MCL 750.415. The secretary of state shall conduct a hearing

 

11  pursuant to the administrative procedures act of 1969, Act No.

 

12  306 of the Public Acts of 1969, being sections 24.201 to 24.328

 

13  of the Michigan Compiled Laws 1969 PA 306, MCL 24.201 to 24.328,

 

14  before the secretary of state takes any action under this

 

15  subdivision.

 

16        (c) The applicant or licensee has been convicted under

 

17  section 413, 415, 535, 535a, or 536a of Act No. 328 of the Public

 

18  Acts of 1931, being sections 750.413, 750.415, 750.535, 750.535a,

 

19  and 750.536a of the Michigan Compiled Laws the Michigan penal

 

20  code, 1931 PA 328, MCL 750.413, 750.415, 750.535, 750.535a, and

 

21  750.536a, or has been convicted in a foreign state of a law or a

 

22  local ordinance substantially corresponding to section 413, 415,

 

23  535, 535a, or 536a of Act No. 328 of the Public Acts of 1931 1 of

 

24  those sections.

 

25        (d) The applicant or licensee is a corporation or

 

26  partnership, and a stockholder, officer, director, or partner of

 

27  the applicant or licensee has been guilty of any act or omission

 


 1  that would be cause for refusing, revoking, or suspending a

 

 2  license issued to the stockholder, officer, director, or partner

 

 3  as an individual.

 

 4        (e) Effective July 1, 1994, the applicant or licensee has

 

 5  removed a scrap vehicle from this state for the purpose of

 

 6  rebuilding it or has sold or transferred the vehicle as a unit

 

 7  for purposes of rebuilding it.

 

 8        Sec. 251. (1) Each new vehicle dealer, used vehicle dealer,

 

 9  and broker shall maintain a record in a manner prescribed by the

 

10  secretary of state of each vehicle of a type subject to titling

 

11  under this act that is bought, sold, leased, or exchanged by the

 

12  dealer or received or accepted by the dealer for sale, lease, or

 

13  exchange.

 

14        (2) Each record shall contain the date of the purchase,

 

15  sale, lease, or exchange or receipt for the purpose of sale,

 

16  lease, or exchange, a description of the vehicle, the name and

 

17  address of the seller, the purchaser or lessee, and the alleged

 

18  owner or other persons from whom the vehicle was purchased or

 

19  received, or to whom it was sold, leased, or delivered. The

 

20  record shall contain a copy of any odometer mileage statement

 

21  received by the dealer when the dealer purchased or acquired a

 

22  vehicle and a copy of the odometer mileage statement furnished by

 

23  the dealer when the dealer sold, leased, or exchanged the vehicle

 

24  as prescribed in required under section 233a. If the vehicle is

 

25  purchased, sold, leased, or exchanged through a broker, the

 

26  record shall include the broker's name and dealer license number

 

27  and the amount of the broker's fee, commission, compensation, or

 


 1  other valuable consideration paid by the purchaser or lessee or

 

 2  paid by the dealer, or both. The records of all vehicles

 

 3  purchased, sold, leased, or exchanged through a broker maintained

 

 4  by the secretary of state shall be in an electronic format

 

 5  determined by the secretary of state. A dealer shall retain for

 

 6  not less than 5 years each odometer mileage statement the dealer

 

 7  receives and each odometer mileage statement furnished by the

 

 8  dealer upon the sale, lease, or exchange of a vehicle. The

 

 9  description of the vehicle, in the case of a motor vehicle, shall

 

10  also include the vehicle identification number and other numbers

 

11  or identification marks as may be on the vehicle, and shall also

 

12  include a statement that a number has been obliterated, defaced,

 

13  or changed, if that is the fact. For a trailer or semitrailer,

 

14  the record shall include the vehicle identification number and

 

15  other numbers or identification marks as may be on the trailer or

 

16  semitrailer.

 

17        (3) Not more than 20 days after the delivery of the vehicle,

 

18  the seller shall deliver to the buyer in person or by mail to the

 

19  buyer's last known address a duplicate of a written statement, on

 

20  a form prescribed by the secretary of state in conjunction with

 

21  the department of treasury, describing clearly the name and

 

22  address of the seller, the name and address of the buyer, the

 

23  vehicle sold to the buyer, the cash sale price of the vehicle,

 

24  the cash paid down by the buyer, the amount credited the buyer

 

25  for a trade-in, a description of the trade-in, the amount charged

 

26  for vehicle insurance, stating the types of insurance covered by

 

27  the insurance policy, the amount charged for a temporary

 


 1  registration plate, the amount of any other charge and specifying

 

 2  its purpose, the net balance due from the buyer, and a summary of

 

 3  insurance coverage to be affected. If the vehicle sold is a new

 

 4  motor home, the written statement shall contain a description,

 

 5  including the year of manufacture, of every major component part

 

 6  of the vehicle that has its own manufacturer's certificate of

 

 7  origin. The written statement shall disclose if the vehicle sold

 

 8  is a vehicle that the seller had loaned or leased to a political

 

 9  subdivision of this state for use as a driver education vehicle.

 

10  The written statement shall be dated, but not later than the

 

11  actual date of delivery of the vehicle to the buyer. The original

 

12  and all copies of the prescribed form shall contain identical

 

13  information. The statement shall be furnished by the seller,

 

14  shall be signed by the seller or the seller's agent and by the

 

15  buyer, and shall be filed with the application for new title or

 

16  registration. Failure of the seller to deliver this written

 

17  statement to the buyer does not invalidate the sale between the

 

18  seller and the buyer.

 

19        (4) A retail vehicle sale is void unless both of the

 

20  following conditions are met:

 

21        (a) The sale is evidenced by a written memorandum that

 

22  contains the agreement of the parties and is signed by the buyer

 

23  and the seller or the seller's agent.

 

24        (b) The agreement contains a place for acknowledgment by the

 

25  buyer of the receipt of a copy of the agreement or actual

 

26  delivery of the vehicle is made to the buyer.

 

27        (5) Each dealer record and inventory, including the record

 


 1  and inventory of a vehicle scrap metal processor not required to

 

 2  obtain a dealer license, shall be open to inspection by a police

 

 3  officer or an authorized officer or investigator of the secretary

 

 4  of state during reasonable or established business hours.

 

 5        (6) A dealer licensed as a distressed vehicle transporter

 

 6  shall maintain records in a form as prescribed by the secretary

 

 7  of state. The records shall identify each distressed vehicle that

 

 8  is bought, acquired, and sold by the dealer. The record shall

 

 9  identify the person from whom a distressed vehicle was bought or

 

10  acquired and the dealer to whom the vehicle was sold. The record

 

11  shall indicate whether a certificate of title or salvage

 

12  certificate of title was obtained by the dealer for each vehicle.

 

13        (7) A dealer licensed under this act shall maintain records

 

14  for a period of 5 years. The records shall be made available for

 

15  inspection by the secretary of state or other law enforcement

 

16  officials. To determine or enforce compliance with this chapter

 

17  or other applicable law, the secretary of state or any law

 

18  enforcement official may inspect a dealer whenever he or she

 

19  determines it is necessary. The secretary of state may issue an

 

20  order summarily suspending the license of a dealer pursuant to

 

21  section 92 of the administrative procedures act of 1969, 1969 PA

 

22  306, MCL 24.292, based on an affidavit by a person familiar with

 

23  the facts set forth in the affidavit that the dealer has failed

 

24  to maintain the records required by this act or failed to provide

 

25  the records for inspection as requested by the secretary of

 

26  state, or has otherwise hindered, obstructed, or prevented the

 

27  inspection of records authorized under this section. The dealer

 


 1  to whom the order is directed shall comply immediately, but on

 

 2  application to the department shall be afforded a hearing within

 

 3  30 days pursuant to the administrative procedures act of 1969,

 

 4  1969 PA 306, MCL 24.201 to 24.328. On the basis of the hearing,

 

 5  the summary order shall be continued, modified, or held in

 

 6  abeyance not later than 30 days after the hearing.

 

 7        (8) A dealer licensed as a vehicle salvage pool operator or

 

 8  broker shall maintain records in a form as prescribed by the

 

 9  secretary of state. The records shall contain a description of

 

10  each vehicle or salvageable part stored by the dealer, the name

 

11  and address of the insurance company or person storing the

 

12  vehicle or salvageable part, the period of time the vehicle or

 

13  salvageable part was stored, and the person acquiring the vehicle

 

14  or salvageable part. In the case of a late model vehicle, a

 

15  record of the purchase or sale of a major component part of the

 

16  vehicle shall be maintained identifying the part purchased or

 

17  sold, the name and address of the seller or purchaser, the date

 

18  of the purchase or sale, and the identification number assigned

 

19  to the part by the dealer. The record of the purchase or sale of

 

20  a part shall be maintained in or attached to the dealer's police

 

21  book or hard copy of computerized data entries and reference

 

22  codes and shall be accessible at the dealer's location. In

 

23  addition, a dealer licensed as a broker shall maintain a record

 

24  of the odometer mileage reading of each vehicle sold pursuant to

 

25  an agreement between the broker and the buyer or the broker and

 

26  the seller. The record of odometer mileage shall be maintained

 

27  for 5 years and shall contain all of the information required by

 


 1  section 233a.

 

 2        (9) A dealer licensed as a used vehicle parts dealer or an

 

 3  automotive recycler shall maintain records in a form prescribed

 

 4  by the secretary of state. The records shall contain the date of

 

 5  purchase or acquisition of the vehicle, a description of the

 

 6  vehicle including the color, and the name and address of the

 

 7  person from whom the vehicle was acquired. If the vehicle is

 

 8  sold, the record shall contain the date of sale and the name and

 

 9  address of the purchaser. The record shall indicate if the

 

10  certificate of title or salvage or scrap certificate of title was

 

11  obtained by the dealer. In the case of a late model vehicle, a

 

12  record of the purchase or sale of a major component of the

 

13  vehicle shall be maintained identifying the part purchased or

 

14  sold, the name and address of the seller or purchaser, the date

 

15  of the purchase or sale, and the identification number assigned

 

16  to the part by the dealer, except that a bumper remanufacturer is

 

17  not required to maintain a record of the purchase of a bumper.

 

18  However, a bumper remanufacturer shall assign and attach an

 

19  identification number to a remanufactured bumper and maintain a

 

20  record of the sale of the bumper. The record of the purchase or

 

21  sale of a part shall be maintained in or attached to the dealer's

 

22  police book or hard copy of computerized data entries and

 

23  reference codes and shall be accessible at the dealer's location.

 

24        (10) A dealer licensed as a vehicle scrap metal processor

 

25  shall maintain records as prescribed by the secretary of state.

 

26  As provided in section 217c, the records shall contain for a

 

27  vehicle purchased from a dealer a copy of the scrap vehicle

 


 1  inventory, including the name and address of the dealer, a

 

 2  description of the vehicle acquired, and the date of acquisition.

 

 3  If a vehicle is purchased or acquired from a person other than a

 

 4  dealer, the record shall contain the date of acquisition, a

 

 5  description of the vehicle, including the color, the name and

 

 6  address of the person from whom the vehicle was acquired, and

 

 7  whether a certificate of title or salvage or scrap certificate of

 

 8  title was obtained by the dealer.

 

 9        (11) A dealer licensed as a foreign salvage vehicle dealer

 

10  shall maintain records in a form prescribed by the secretary of

 

11  state. The records shall contain the date of purchase or

 

12  acquisition of each distressed vehicle, a description of the

 

13  vehicle including the color, and the name and address of the

 

14  person from whom the vehicle was acquired. If the vehicle is

 

15  sold, the record shall contain the date of sale and the name and

 

16  address of the purchaser. The record shall indicate if the

 

17  certificate of title or salvage or scrap certificate of title was

 

18  obtained by the dealer. In the case of a late model vehicle, a

 

19  record of the purchase or sale of each salvageable part purchased

 

20  or acquired in this state shall be maintained and the record

 

21  shall contain the date of purchase or acquisition of the part, a

 

22  description of the part, the identification number assigned to

 

23  the part, and the name and address of the person to or from whom

 

24  the part was purchased, acquired, or sold. The record of the

 

25  sale, purchase, or acquisition of a part shall be maintained in

 

26  the dealer's police book. The police book shall only contain

 

27  vehicles and salvageable parts purchased in this state or used in

 


 1  the repair of a vehicle purchased in this state. The police book

 

 2  and the records of vehicle part sales, purchases, or acquisitions

 

 3  shall be made available at a location within the state for

 

 4  inspection by the secretary of state within 48 hours after a

 

 5  request by the secretary of state.

 

 6        (11) (12) The secretary of state shall make periodic

 

 7  unannounced inspections of the records, facilities, and

 

 8  inventories of automotive recyclers and used or secondhand

 

 9  vehicle parts dealers.

 

10        (12) (13) The secretary of state may promulgate rules to

 

11  implement this section pursuant to the administrative procedures

 

12  act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

13        Sec. 807. (1) Except as provided in subsection (2), an

 

14  applicant shall include with an application for a license under

 

15  section 248 one of the following fees:

 

 

16 Full year's license................................. $  75.00

17 Half year's license (after June 30).................    37.50

18 Multiple year license...............................    75.00

19                                                     per year.

 

 

20        (2) An applicant shall include with an application for a

 

21  used or secondhand vehicle parts dealer , or an automotive

 

22  recycler , or foreign salvage vehicle dealer license 1 of the

 

23  following fees:

 

 

24 Full year's license................................. $ 160.00

25 Half year's license (after June 30)..................   80.00

26 Multiple year license................................  160.00


                                                    per year.

 

 

 2        Enacting section 1. Sections 56c, 248b, 248e, 248g, 248h,

 

 3  and 248i of the Michigan vehicle code, 1949 PA 300, MCL 257.56c,

 

 4  257.248b, 257.248e, 257.248g, 257.248h, and 257.248i, are

 

 5  repealed effective October 1, 2011.

 

 6        Enacting section 2. This amendatory act takes effect October

 

 7  1, 2011.

 

 8        Enacting section 3. This amendatory act does not take effect

 

 9  unless Senate Bill No.____ or House Bill No.4833 (request no.

 

10  01165'11 a) of the 96th Legislature is enacted into law.

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