Bill Text: MI HB5741 | 2015-2016 | 98th Legislature | Engrossed

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Bill Title: Vehicles; abandoned; termination of rights of owner and lienholder of abandoned vehicles; require notice to include certain information. Amends sec. 248c of 1949 PA 300 (MCL 257.248c).

Spectrum: Moderate Partisan Bill (Republican 8-2)

Status: (Introduced - Dead) 2016-12-13 - Referred To Committee Of The Whole [HB5741 Detail]

Download: Michigan-2015-HB5741-Engrossed.html

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HB-5741, As Passed House, December 1, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5741

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending section 248c (MCL 257.248c), as amended by 2015 PA 48.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 248c. (1) A vehicle salvage pool, auction, or broker

 

shall not sell, transfer, or release a distressed, late model

 

vehicle to anyone other than 1 or more of the following:

 

     (a) The vehicle's former owner or lienholder of record as kept

 

by the secretary of state, as applicable.

 

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

 

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

 

dealer.

 

     (2) An insurance company may direct a salvage pool that

 

obtains possession of a vehicle to release the vehicle to the owner

 

or lienholder of record as kept by the secretary of state, as

 

applicable. The insurance company shall provide the salvage pool

 

with a release statement under subsection (3) authorizing the

 

salvage pool to release the vehicle to the vehicle's owner or

 

lienholder of record as kept by the secretary of state, as

 

applicable.

 

     (3) A release statement authorizing a salvage pool to release

 

a vehicle to a vehicle's owner or lienholder of record as kept by

 

the secretary of state shall contain the following information:

 

     (a) The claim number relating to the vehicle.

 

     (b) The name and address of the owner of the vehicle.

 

     (c) The vehicle identification number and description of the

 

vehicle.

 

     (d) The signature of an authorized representative of the

 

insurance company.

 

     (4) Upon receiving a release statement concerning a vehicle

 

from an insurance company under subsection (2), a salvage pool

 

shall send a notice to the owner and any lienholder of record as

 

kept by the secretary of state of the vehicle that the vehicle is

 

available for pickup by the owner or lienholder of record as kept

 

by the secretary of state. The notice shall be accompanied by an

 

invoice for any outstanding charges owed to the salvage pool. The

 

notice shall inform the owner and any lienholder of record as kept

 

by the secretary of state that the owner and lienholder of record

 

as kept by the secretary of state have 30 days from the postmarked

 

date of the notice and upon payment of applicable charges to pick

 

up the vehicle from the salvage pool, and shall warn the owner and

lienholder of record that failure to redeem the vehicle within 30

 

days after the postmarked date of the notice will result in the

 

sale of the vehicle and the termination of all rights of the owner

 

and the lienholder of record to the vehicle and the proceeds of a

 

sale under subsection (5). A notice under this subsection shall be

 

sent by the salvage pool to the applicable address on record with

 

the secretary of state by certified mail or by another commercially

 

available delivery service providing proof of delivery.

 

     (5) If the owner or lienholder of record as kept by the

 

secretary of state does not pick up the vehicle within the 30-day

 

period described in subsection (4), the salvage pool may sell the

 

vehicle for parts only to a licensed salvage agent of an automotive

 

recycler or to a licensed salvage agent of a foreign salvage

 

vehicle dealer if the vehicle is a distressed late-model vehicle,

 

or to a licensed salvage agent of an automotive recycler, to a

 

licensed salvage agent of a foreign salvage vehicle dealer, or to a

 

vehicle scrap metal processor if the vehicle is not a distressed

 

late-model vehicle. The salvage pool shall provide the buyer and

 

the secretary of state with a copy of the release statement under

 

subsection (2), proof of notice under subsection (4) to the owner

 

and lienholder of record as kept by the secretary of state, and a

 

bill of sale. The secretary of state shall use the documentation

 

provided to issue the appropriate salvage or scrap certificate of

 

title.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.