HB 5356

substitute for
House BILL NO. 5356
A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
by amending sections 14, 41a, 78, 217, 217c, 233, 233a,
233b, 234, 235, 238, 239, 240, 248, 248a, 248j, 249, 250, 258, 801b, 806, and
810a (MCL 257.14, 257.41a, 257.78, 257.217, 257.217c, 257.233, 257.233a,
257.233b, 257.234, 257.235, 257.238, 257.239, 257.240, 257.248, 257.248a,
257.248j, 257.249, 257.250, 257.258, 257.801b, 257.806, and 257.810a), sections
14, 217c, 235, 248, and 250 as amended by 2022 PA 224, section 41a as amended
by 1998 PA 384, sections 217 and 233a as amended by 2023 PA 240, section 233 as
amended by 2014 PA 290, section 233b as amended by 2002 PA 642, section 234 as
amended by 2002 PA 552, section 238 as amended by 2014 PA 291, section 239 as
amended by 2020 PA 382, section 240 as amended by 2004 PA 493, section 248a as
amended by 2012 PA 498, section 248j as added by 2002 PA 652, section 249 as
amended by 2004 PA 495, section 258 as amended by 2018 PA 74, section 801b as
amended by 1986 PA 311, section 806 as amended by 2023 PA 129, and section 810a
as amended by 1993 PA 300, and by adding section 9b.
the peoplE of the state of michigan enact:
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Sec. 9b.
"Courtesy transportation vehicle" means a new motor vehicle that has
been titled and registered by a dealer and is used primarily for the dealer's
service customers. After the courtesy transportation vehicle is used more than 5,000
miles, the vehicle is a used vehicle.
Sec. 14. (1) Except as provided in subsections (2), (3), and
(4), "established place of business" means premises actually occupied
either continuously or at regular periods by a dealer or manufacturer at which
the dealer or manufacturer keeps its books and records and at which the dealer
or manufacturer transacts a large share of its business.
(2) For a class (a)
or class (b) dealer, "established place of business" means premises
that meet all of the following requirements:
(a) The premises
contain, except as otherwise provided in this act, a permanently enclosed
building or structure that is either owned, leased, or rented by the dealer;
the building or structure is not a residence, tent, temporary stand, or any
temporary quarters; the building or structure is continuously occupied in good
faith for the purpose of selling, buying, trading, leasing, or otherwise
dealing in motor vehicles; all books, records, and files necessary to conduct
the business of a class (a) or class (b) dealer are securely
maintained in the building or structure; and
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the
building or structure houses an office of at least 150 square feet in size,
equipped with standard office furniture, secure
document storage, working utilities, a working restroom, and a working
telephone listed in the name of the business on the dealer's license.
(b) The premises
have land space of not less than 1,300 square feet to accommodate the display
of a minimum of 10 vehicles of the kind and type that the dealer is licensed to
sell and an additional 650 square feet for customer parking.
(c) The display and
customer parking areas described in subdivision (b) are adequately surfaced and
well-lit during business hours.
(d) The premises
are identified by an exterior sign displaying the name of the dealership that
is permanently affixed to the building or land with letters clearly visible
from the roadway.
(e) The premises
contain a conspicuous posting of the dealer's regular hours of operation. The
posted hours must not be less than 30 hours per week for not less than 48 weeks
per year. Fifteen of the 30 hours per week must be between the hours of 8 a.m. and
5 p.m., Monday through Friday. The dealer may change its posted hours of
operation to be less than 30 hours per week for not more than 4 weeks per year
if the dealer notifies the department not less than 7 days prior to the change.
The department shall waive the 7-day notification requirement under this
subdivision for good cause, including, but not limited to, a medical emergency
or other extenuating circumstances.
(f) The premises
contain a registered repair facility on site for the repair and servicing of
motor vehicles of a type sold at the established place of business, unless the
dealer has entered
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into
a written servicing agreement with a registered repair facility at a location
that is located within a 10-mile radius of the established place of business.
If repairs are conducted under a servicing agreement, the dealer shall
conspicuously post the servicing agreement in the dealer's office.
(g) The premises
meet all applicable zoning requirements and any other applicable municipal
requirements.
(3) For a
wholesaler, "established place of business" means premises that meet
all of the following requirements:
(a) The premises
contain a permanently enclosed building or structure that is either owned,
leased, or rented and is not a commercial mailbox, tent, temporary stand, or
other temporary quarters. Beginning January 1, 2024, the permanently enclosed
building or structure must be heated and electrified.
(b) Until December
31, 2023, all books, records, and files necessary to conduct the business of
the wholesaler are maintained in the building or structure described in
subdivision (a). Beginning January 1, 2024, all books, records, and files
necessary to conduct the business of the wholesaler are maintained in an office
that meets all of the following requirements:
(i) Is not less than 8 feet by 8 feet with a
door.
(ii) Has no fewer than 4 rigid walls.
(iii) Has working utilities including, but not
limited to, lighting and telephone that are listed in the name of the business
on the wholesaler's license.
(iv) Has a working restroom.
(v) Has standard office furniture including,
but not limited to, a desk and a locking filing cabinet.
(c) The premises
are not used for the display of vehicles.
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However,
the premises may be used for the storage of vehicles purchased by the
wholesaler before sale to a licensed vehicle dealer.
(d) The premises
are identified by an exterior sign displaying the name of the wholesaler that
is permanently affixed to the building or land with letters clearly visible
from the roadway.
(e) The premises
meet all applicable zoning requirements and any other applicable municipal
requirements.
(f) The premises
contain a conspicuous posting of the wholesaler's regular hours of operation
that include at least 15 regular business hours each week between the hours of
8 a.m. and 5 p.m., Monday through Friday.
(g) If a wholesaler
receives its initial license on or after January 1, 2023, the premises are not
located within 200 feet of an established place of business for another
licensed wholesaler.
(4) For a used or
secondhand vehicle parts dealer, vehicle scrap metal processor, vehicle salvage
pool operator, distressed vehicle transporter, broker, and automotive recycler,
"established place of business" means premises that meet all of the
following requirements:
(a) Beginning
January 1, 2024, the premises contain a permanently enclosed building or
structure that is heated and electrified and that is either owned, leased, or
rented by the business and that is not a commercial mailbox, tent, temporary
stand, or other temporary quarters.
(b) Beginning
January 1, 2024, all books, records, and files necessary to conduct the
business of the dealer, processor, operator, transporter, broker, or recycler
are maintained in an office that meets all of the following requirements:
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(i) Is not less than 8 feet by 8 feet with a
door.
(ii) Has no fewer than 4 rigid walls.
(iii) Has working utilities including, but not
limited to, lighting and telephone that are listed in the name of the business
on the dealer's, processor's, operator's, transporter's, broker's, or
recycler's license.
(iv) Has a working restroom.
(v) Has standard office furniture including,
but not limited to, a desk and a locking filing cabinet.
(c) The premises
are identified by an exterior sign displaying the name of the dealer,
processor, operator, transporter, broker, or recycler that is permanently
affixed to the building or land with letters clearly visible from the roadway.
(d) The premises
meet all applicable zoning requirements and any other applicable municipal
requirements.
(e) The premises
contain a conspicuous posting of the business's regular hours of operation. The
posted hours must not be less than 15 hours per week for not less than 48 weeks
per year. Five of the 15 hours per week must be between the hours of 8 a.m. and
5 p.m., Monday through Friday.
Sec. 41a. "Police book" means a hardcover,
bound volume or a an
electronic record in a form prescribed by the secretary of state that
provides a bought and sold record for each vehicle handled by a dealer,
contains the information required by section 251, and includes any other
information required by law or the secretary of state.
Sec. 78. "Used or second-hand
secondhand vehicle" means any motor
vehicle, except for a courtesy transportation vehicle,
to which a certificate of title and license plates have been issued
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and
which motor vehicle has been registered for use on the highways by a consumer
or by a dealer.
Sec. 217. (1) An owner of a vehicle that is subject to
registration under this act shall apply to the secretary of state, on an
appropriate form furnished by the secretary of state, for the registration of
the vehicle and issuance of a certificate of title for the vehicle. A vehicle
brought into this state from another state or jurisdiction that has a rebuilt,
salvage, scrap, flood, or comparable certificate of title issued by that other
state or jurisdiction must be issued a rebuilt, salvage, scrap, or flood
certificate of title by the secretary of state. The application must be
accompanied by the required fee. An application for a certificate of title must
bear the signature or verification and certification of the owner. The
application must contain all of the following:
(a) The owner's
name, the owner's bona fide residence, and either of the following:
(i) If the owner is an individual, the
owner's mailing address.
(ii) If the owner is a firm, association,
partnership, limited liability company, or corporation, the owner's business
address.
(b) A description
of the vehicle including the make or name, style of body, and model year; the
number of miles, not including the tenths of a mile, registered on the
vehicle's odometer at the time of transfer; whether the vehicle is a flood
vehicle or another state previously issued the vehicle a flood certificate of
title; whether the vehicle is to be or has been used as a taxi or police
vehicle, or by a political subdivision of this state, unless the vehicle is
owned by a dealer and loaned or leased to a political subdivision of this state
for use as a driver education vehicle;
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whether
the vehicle has previously been issued a salvage or rebuilt certificate of
title from this state or a comparable certificate of title from any other state
or jurisdiction; the vehicle identification number; and the vehicle's weight
fully equipped, if a passenger vehicle registered in accordance with section
801(1)(a), and, if a trailer coach or pickup camper, in addition to the weight,
the manufacturer's serial number, or in the absence of the serial number, a
number assigned by the secretary of state. A number assigned by the secretary
of state must be permanently placed on the trailer coach or pickup camper in
the manner and place designated by the secretary of state.
(c) A statement of
the applicant's title and the names and addresses of the holders of security
interests in the vehicle and in an accessory to the vehicle, in the order of
their priority.
(d) Further
information that the secretary of state reasonably requires to enable the
secretary of state to determine whether the vehicle is lawfully entitled to
registration and the owner entitled to a certificate of title. If the secretary
of state is not satisfied as to the ownership of a vehicle having a value over $2,500.00, or $5,000.00 for a new
vehicle dealer licensed under this act, or that is less than 10 years
old, before registering the vehicle and issuing a certificate of title, the
secretary of state may require the applicant to file a properly executed surety
bond in a form prescribed by the secretary of state and executed by the
applicant and a company authorized to conduct a surety business in this state.
The bond must be in an amount equal to twice 2 times the value of the vehicle as determined by the
secretary of state and must be conditioned to indemnify or reimburse the
secretary of state, any prior owner, and any subsequent purchaser or lessee of
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the
vehicle and their successors in interest against any expense, loss, or damage,
including reasonable attorney fees, because of the issuance of a certificate of
title for the vehicle or on account of any defect in the right, title, or
interest of the applicant in the vehicle. An interested person has a right of
action to recover on the bond for a breach of the conditions of the bond, but
the aggregate liability of the surety to all persons must not exceed the amount
of the bond. If the secretary of state is not satisfied as to the ownership of
a vehicle that is valued at $2,500.00, or $5,000.00 for a new vehicle dealer licensed under this
act, or less and that is 10 years old or older, the secretary of state
shall require the applicant to certify that the applicant is the owner of the
vehicle and entitled to register and title the vehicle.
(e) Except as
provided in subdivision (f), an application for a commercial vehicle must also
have attached a scale weight receipt of the motor vehicle fully equipped as of
the time the application is made. A scale weight receipt is not necessary if
there is presented with the application a registration receipt of the previous
year that shows on its face the empty weight of the motor vehicle as registered
with the secretary of state that is accompanied by a statement of the applicant
that there has not been structural change in the motor vehicle that has
increased the empty weight and that the previous registered weight is the true
weight.
(f) An application
for registration of a vehicle on the basis of elected gross weight must include
a declaration by the applicant specifying the elected gross weight for which
application is being made.
(g) If the
application is for a certificate of title of a motor vehicle registered in
accordance with section 801(1)(p), the
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application
must include the manufacturer's suggested base list price for the model year of
the vehicle. The base list price must be the manufacturer's suggested retail
price as shown on the label required to be affixed to the vehicle under 15 USC
1232. If the manufacturer's suggested retail price is unavailable, the
application must list the purchase price of the vehicle. As used in this
subdivision, "purchase price" means that term as defined in section
801.
(2) An applicant
for registration of a leased pickup truck or passenger vehicle that is subject
to registration under this act, except a vehicle that is subject to a
registration fee under section 801g, shall disclose in writing to the secretary
of state the lessee's name, the lessee's bona fide residence, and either of the
following:
(a) If the lessee
is an individual, the lessee's Michigan driver license number or Michigan
personal identification number or, if the lessee does not have a Michigan
driver license or Michigan personal identification number, the lessee's mailing
address.
(b) If the lessee
is a firm, association, partnership, limited liability company, or corporation,
the lessee's business address.
(3) The secretary
of state shall maintain the information described in subsection (2) on the
secretary of state's computer records.
(4) Except as
provided in subsections (5), (11), and (12), a dealer selling, leasing, or
exchanging vehicles required to be titled, within 21 days after delivering a
vehicle to the purchaser or lessee, and a person engaged in the sale of vessels
required to be numbered by part 801 of the natural resources and environmental
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protection
act, 1994 PA 451, MCL 324.80101 to 324.80199, within 21 days after delivering a
boat trailer weighing less than 2,500 pounds to the purchaser or lessee, shall
apply to the secretary of state for a new title, if required, and transfer or
secure registration plates and secure a certificate of registration for the
vehicle or boat trailer, in the name of the purchaser or lessee. Subject to
subsection (11), the dealer's license may be suspended or revoked in accordance
with section 249 for failure to apply for a title when required or for failure
to transfer or secure registration plates and certificate of registration
within the 21 days required by this section. Subject to subsection (11), if the
dealer or person fails to apply for a title when required, and to transfer or
secure registration plates and secure a certificate of registration and pay the
required fees within 21 days of delivery of the vehicle or boat trailer, a
title and registration for the vehicle or boat trailer may subsequently be acquired
only on the payment of a late transfer fee of $50.00 for an individual or a
dealer other than a dealer subject to section 235b in addition to the fees
specified in section 806. Subject to subsection (11), for a used or secondhand
vehicle dealer subject to section 235b, the late transfer fee is $100.00 in
addition to the fees specified in section 806. The purchaser or lessee of the
vehicle or the purchaser of the boat trailer shall sign the application,
including, if applicable, the declaration specifying the maximum elected gross
weight as required by subsection (1)(f), and other necessary papers to enable
the dealer or person to secure the title, registration plates, and transfers
from the secretary of state. If the secretary of state mails or delivers a
purchaser's certificate of title to a dealer, the dealer shall mail or deliver
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the
certificate of title to the purchaser not later than 5 days after receiving the
certificate of title from the secretary of state. However, as provided under
section 238, the secretary of state is not required to issue a paper title to
the owner of a vehicle or lienholder if the title is subject to a security
interest, and may issue an electronic title as provided under section 222.
(5) Except as
provided in subsection (12), a dealer selling or exchanging an off lease or buy
back vehicle shall apply to the secretary of state for a new title for the
vehicle within not
later than 21 days after it receives the certificate of title from the
lessor or manufacturer under section 235 or section 235b and transfer or secure
registration plates and secure a certificate of registration for the vehicle in
the name of the purchaser. Subject to subsection (12), the dealer's license may
be suspended or revoked in accordance with section 249 for failure to apply for
a title when required or for failure to transfer or secure registration plates
and certificate of registration within the 21-day period. Subject to subsection
(12), if the dealer or person fails to apply for a title when required, and to
transfer or secure registration plates and secure a certificate of registration
and pay the required fees within the 21-day time period, a title and
registration for the vehicle may subsequently be acquired only on the payment
of a late transfer fee of $50.00 for an individual or dealer other than a used
or secondhand vehicle dealer subject to section 235b in addition to the fees
specified in section 806. Subject to subsection (12), the late transfer fee for
a used or secondhand vehicle dealer subject to section 235b is $100.00 in
addition to the fees specified in section 806. The purchaser of the
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vehicle
shall sign the application, including, if applicable, the declaration
specifying the maximum elected gross weight as required by subsection (1)(f),
and other necessary papers to enable the dealer or person to secure the title,
registration plates, and transfers from the secretary of state. If the
secretary of state mails or delivers a purchaser's certificate of title to a
dealer, the dealer shall mail or deliver the certificate of title to the
purchaser not later than 5 days after receiving the certificate of title from
the secretary of state. However, as provided under section 238, the secretary
of state is not required to issue a paper title to the owner of a vehicle if
the title is subject to a security interest, and may issue an electronic title
as provided under section 222.
(6) If a vehicle is
delivered to a purchaser or lessee who has valid Michigan registration plates
that are to be transferred to the vehicle, and an application for title, if
required, and registration for the vehicle is not made before delivery of the
vehicle to the purchaser or lessee, the registration plates must be affixed to
the vehicle immediately, and the dealer shall provide the purchaser or lessee
with an instrument in writing, on a form prescribed by the secretary of state,
which serves as a temporary registration for the vehicle for a period of 30
days from the date the vehicle is delivered.
(7) If the seller
does not prepare the credit information, contract note, and mortgage, and the
holder, finance company, credit union, or banking institution requires the
installment seller to record the lien on the title, the holder, finance
company, credit union, or banking institution shall pay the seller a service
fee of not more than $10.00. The service fee must be paid
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from
the finance charges and must not be charged to the buyer in addition to the
finance charges. The holder, finance company, credit union, or banking
institution shall issue its check or bank draft for the principal amount
financed, payable jointly to the buyer and seller, and the following must be
imprinted on the back side of the check or bank draft:
"Under
Michigan law, the seller must record a first lien in favor of (name of lender)
_______________ on the vehicle with vehicle identification number
_______________ and title the vehicle only in the name(s) shown on the reverse
side."
(8) On the front of
the check or draft described under subsection (7), the holder, finance company,
credit union, or banking institution shall note the name or names of the
prospective owners. Failure of the holder, finance company, credit union, or
banking institution to comply with these requirements frees the seller from any
obligation to record the lien or from any liability that may arise as a result
of the failure to record the lien. A service fee must not be charged to the
buyer.
(9) In the absence
of actual malice proved independently and not inferred from lack of probable
cause, a person who in any manner causes a prosecution for larceny of a motor
vehicle; for embezzlement of a motor vehicle; for any crime an element of which
is the taking of a motor vehicle without authority; or for buying, receiving,
possessing, leasing, or aiding in the concealment of a stolen, embezzled, or
converted motor vehicle knowing that the motor vehicle has been stolen,
embezzled, or converted, is not liable for damages in a civil action for
causing the prosecution. This subsection does not relieve a person from proving
any other element necessary to sustain the person's cause of action.
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(10) Receipt by the
secretary of state of a properly tendered application for a certificate of
title on which a security interest in a vehicle is to be indicated is a
condition of perfection of a security interest in the vehicle and is equivalent
to filing a financing statement under the uniform commercial code, 1962 PA 174,
MCL 440.1101 to 440.9994, with respect to the vehicle. When a security interest
in a vehicle is perfected, it has priority over the rights of a lien creditor
as that term is defined in section 9102 of the uniform commercial code, 1962 PA
174, MCL 440.9102.
(11)
Notwithstanding subsection (4), a dealer selling, leasing, or exchanging
vehicles, required to be titled, after March 31, 2021 but before August 1,
2021, may apply to the secretary of state for a new title, if required, and
transfer or secure registration plates and secure a certificate of registration
for the vehicle in the name of the purchaser within 30 days. Both of the
following apply to a dealer that complies with this subsection:
(a) The dealer's
license must not be suspended or revoked in accordance with section 249 for
failure to apply for a title when required or for failure to transfer or secure
registration plates and certificate of registration within the 21-day period
required under subsection (4).
(b) The secretary
of state shall not charge any applicable late fees required under subsection
(4) and shall, on the dealer's request, reimburse a late fee charged and
collected after March 31, 2021 to the end of the period described under this
subsection.
(12)
Notwithstanding subsection (5), a dealer selling or exchanging an off lease or
buy back vehicle after March 31, 2021 but before August 1, 2021 may apply to
the secretary of state for a new title for the vehicle within not later than 30
days after the
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dealer
receives the certificate of title from the lessor or manufacturer under section
235 or 235b and transfer or secure registration plates and secure a certificate
of registration for the vehicle in the name of the purchaser. Both of the
following apply to a dealer that complies with this subsection:
(a) The dealer's
license must not be suspended or revoked in accordance with section 249 for
failure to apply for a title when required or for failure to transfer or secure
registration plates and certificate of registration within the 21-day period
required under subsection (5).
(b) The secretary
of state shall not charge any applicable late fees required under subsection
(5) and shall, on the dealer's request, reimburse a late fee charged and
collected after March 31, 2021 to the end of the period described under this
subsection.
Sec. 217c. (1) The secretary of state may
conduct periodic reviews of the records of a dealer to determine whether
adequate notice is given to a transferee or lessee of a rebuilt salvage vehicle
of that vehicle's prior designation as a salvage vehicle. The secretary of
state may request an insurance company to provide copies of salvage title
documents and claims reports involving major component parts to assist the
secretary of state in monitoring compliance with this act.
(2) Except for a late
model vehicle that has been stolen and recovered and that has no major
component part removed, missing, or destroyed, or damaged and not salvageable,
an insurance company licensed to conduct business in this state that acquires
ownership of a late model vehicle through the payment of a claim shall proceed
under either of the following:
(a) If the
insurance company acquires ownership of the vehicle
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through
payment of a total loss claim, the owner of the
vehicle must shall assign
the certificate of title to the insurance company,
which shall do all of the following:
(i) Surrender a properly assigned
certificate of title to the secretary of state.
(ii) If the estimated cost of repair,
including parts and labor, is equal to or more than 75% but less than 91% of
the predamaged actual cash value of the vehicle, apply for a salvage
certificate of title, and if the estimated cost of repair, including parts and
labor, is equal to or greater than 91% of the predamaged actual cash value of
the vehicle, apply for a scrap certificate of title. The insurance company
shall not sell the vehicle without first receiving a salvage or scrap
certificate of title, which shall must be assigned to the buyer. An insurance company
may assign a salvage or scrap certificate of the title only to an automotive
recycler, used or secondhand vehicle parts dealer, foreign salvage vehicle
dealer, distressed vehicle transporter, or
vehicle scrap metal processor.
(b) If after
payment of a total loss claim the insurance company permits the owner of the
vehicle to retain ownership, the insurance company shall do all of the
following:
(i) If the estimated cost of repair,
including parts and labor, is equal to or greater than 75% but less than 91% of
the predamaged actual cash value of the vehicle, require
each owner of the vehicle to sign an application for a salvage certificate of
title, or if the estimated cost of repair, including parts and labor, is equal
to or greater than 91% of the predamaged actual cash value of the vehicle,
require each owner of the vehicle to sign an application for a scrap vehicle
certificate of title.
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(ii) Attach the owner's certificate of title
to the application for a salvage or scrap certificate of title or have the
owner certify that the certificate of title is lost.
(iii) On behalf of the owner, apply to the
secretary of state for a salvage or scrap certificate of title in the name of
the owner. The owner shall not sell or otherwise dispose of the vehicle without
first receiving a salvage or scrap certificate of title, which must be assigned
to the buyer. An insurance company may assign a salvage or scrap certificate of
title only to an automotive recycler, used or secondhand vehicle parts dealer,
foreign salvage vehicle dealer, or vehicle scrap metal processor.
(3) If an insurance
company pays a claim for total loss to the owner or lienholder of record as
kept by the secretary of state, or both, if applicable, of a vehicle but the
owner or lienholder of record as kept by the secretary of state fails to
surrender the certificate of title or other document necessary for the transfer
of ownership of the vehicle to the insurance company within the expiration of not
later than 30 days after the claim payment, the insurance company,
without having obtained the surrender of the title or other document otherwise
necessary for the transfer of ownership for the vehicle from the owner or
lienholder of record as kept by the secretary of state, or both, if applicable,
may apply to the secretary of state for a title as provided under this section.
The insurance company shall, at the time of application, provide proof of the
payment and that the insurance company has requested in writing, by certified
mail or by another commercially available delivery service providing proof of
delivery, on at least 2 separate occasions that the owner or lienholder of
record as kept by the secretary of state surrender to the insurance company the
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certificate
of title or other document necessary for the transfer of ownership to the
insurance company. The application must be signed under the penalty of perjury.
Subject to subsection (2)(a)(ii), upon on meeting
the requirements of this subsection, the secretary of state shall issue to the
insurance company the appropriate certificate of title free of all liens. Proof
of payment of the claim is satisfied only by 1 of the following:
(a) In the case of
payment by check, either of the following:
(i) A copy of the front and back of the
endorsed check.
(ii) Evidence that the check has cleared the
account of the payer.
(b) In the case of
payment by electronic transfer, evidence that the payment was charged to the
account of the payer.
(4) Except as
provided in subsection (3), if an insurance company acquires ownership of a
vehicle other than a late model vehicle through payment of damages due to an
accident, the company shall surrender a properly assigned title to the buyer upon on delivery.
(5) If a dealer acquires ownership of a late model vehicle
that is a distressed vehicle from an owner, the dealer shall receive an
assigned certificate of title. If the assigned certificate of title is not a
salvage or scrap certificate of title, the dealer, other than a vehicle scrap
metal processor, shall surrender the
assigned certificate of title to the secretary of state, and, if the estimated cost of repair, including parts
and labor, is equal to or greater than 75% but less than 91% of the predamaged
actual cash value of the vehicle, apply for a salvage certificate of title, or
if the estimated cost of repair, including parts and labor, is equal to or
greater than 91% of the predamaged
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actual
cash value of the vehicle, apply for a scrap certificate of title within 5 not later than
10 days after the dealer receives the assigned certificate of title. The
dealer may sell a salvage vehicle to another an automotive recycler, used or secondhand vehicle
parts dealer, foreign salvage vehicle dealer, distressed
vehicle transporter, or vehicle scrap metal processor by assigning the salvage certificate of title to the buyer. Unless
the vehicle is rebuilt, inspected, and recertified under this section, if the
vehicle is sold to a buyer other than a licensed dealer,
application must be made for a salvage certificate in the name of the buyer in
the manner provided in this act. The dealer may sell a scrap vehicle only to a
vehicle scrap metal processor. A vehicle scrap metal processor shall surrender
an assigned certificate of title to the secretary of state within not later than 30
days after acquiring a vehicle for which a certificate of title was received. A
vehicle scrap metal processor shall surrender an assigned salvage or scrap
certificate of title to the secretary of state within
not later than 30 days after acquiring a
vehicle for which a salvage or scrap certificate of title was received and processed, and report that the vehicle was
destroyed or scrapped.
(6) An application
for a scrap certificate of title must be made on a form prescribed by the
secretary of state and accompanied by a fee of
$15.00. The application must contain all of the following:
(a) The complete
name and current address of the owner.
(b) A description
of the vehicle, including its make, style of body, model year, fee category or
weight, color, and vehicle identification number.
(c) If the vehicle
is a late model vehicle, a listing of each
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major
component part that was not salvageable.
(d) Further
information as may reasonably be required by the secretary of state.
(7) The scrap
certificate of title must authorize the holder of the document to transport but
not drive on a highway the vehicle or parts of a vehicle, and assign ownership
to a vehicle scrap metal processor, automotive recycler, used or secondhand
vehicle parts dealer, or foreign salvage vehicle dealer. A certificate of title
must not again be issued for this vehicle. A person shall not rebuild or repair
a scrap vehicle and allow it to retain the original vehicle identification
number.
(8) If a person,
other than a dealer or insurance company that is subject to subsection (2) or
(5), acquires ownership of a distressed, late model vehicle, the person must
surrender the title or assigned certificate of title to the secretary of state,
and if the estimated cost of repair, including parts and labor, is equal to or
greater than 75% but less than 91% of the predamaged actual cash value of the
vehicle, apply for a salvage certificate of title, or if the estimated cost of
repair, including parts and labor, is equal to or greater than 91% of the
predamaged actual cash value of the vehicle, apply for a scrap certificate of
title before the vehicle may be transported.
(9) An owner of a
vehicle may determine that a vehicle is a scrap vehicle or a salvage vehicle
without making any determination as to the actual cash value of the vehicle.
(10) If a leasing
company, vehicle manufacturer, insurance company not licensed to do business in
this state, association, repossession company, self-insured owner, financial
institution, governmental entity, or other company, institution, or entity, owns
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a
distressed, late model vehicle, the titleholder shall surrender the title or
assigned certificate of title to the secretary of state and apply for a salvage
certificate of title if the retail cost of repair, including parts and labor,
is equal to or greater than 75% but less than 91% of the predamaged actual cash
value of the vehicle, or if the retail cost of repair, including parts and
labor, is equal to or greater than 91% of the predamaged actual cash value of
the vehicle, apply for a scrap certificate of title, before the vehicle may be
transported or sold. If ownership is transferred, the owner must sell the
vehicle only to a dealer that is eligible to buy a salvage or scrap vehicle in
this state unless the owner complies with subsection (13). When a leasing company,
vehicle manufacturer, insurance company not licensed to do business in this
state, association, repossession company, self-insured owner, financial
institution, governmental entity, or other company, institution, or entity,
estimates the repair of a distressed, late model vehicle for the purpose of
determining whether to apply for a salvage or scrap certificate of title, a
complete record of the estimate and, if the vehicle is repaired before a
transfer of ownership, a complete record of the actual cost of the repairs performed
and who performed the repairs must be maintained for a minimum of 5 years by
the leasing company, vehicle manufacturer, insurance company not licensed to do
business in this state, association, repossession company, self-insured owner,
financial institution, governmental entity, or other company, institution, or
entity. The estimates and repair records required by this subsection must be
available for unannounced inspections by a law enforcement agency or a
representative of the secretary of state. The secretary of state may request a
leasing company,
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vehicle
manufacturer, insurance company not licensed to do business in this state,
association, repossession company, self-insured owner, financial institution,
governmental entity, or other company, institution, or entity to provide copies
of title documents, repair estimates, claims reports involving major component
parts, and actual cash value determination documents to assist the secretary of
state in monitoring compliance with this act.
(11) An application
for a salvage certificate of title must be made on a form prescribed by the
secretary of state and accompanied by a fee of
$10.00. The application must contain all of the following:
(a) The complete
name and current address of the owner.
(b) A description
of the vehicle, including its make, style of body, model year, fee category or
weight, color, and vehicle identification number.
(c) An estimate of
the cost repair, including parts and labor, and an estimate of the predamaged
actual cash value of the vehicle.
(d) If the vehicle
is a late model vehicle, a listing of each major component part that was not
salvageable.
(e) Further
information as may reasonably be required by the secretary of state.
(12) The secretary
of state shall issue and mail the salvage certificate within not later than 5
business days after the time the application is received at the secretary of
state's office in Lansing. Each salvage certificate of title must include a
listing of each major component part that was not salvageable.
(13) A salvage
certificate of title authorizes the holder of the title to possess, transport,
but not drive on a highway, and
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transfer
ownership in, a vehicle. The secretary of state shall not issue a certificate
of title or registration plates for a vehicle for which a salvage certificate
of title was issued unless a specially trained officer described in subsection
(15) certifies all of the following:
(a) That the
vehicle identification numbers and parts identification numbers are correct.
(b) That the
applicant has proof of ownership of repair parts used.
(c) That the
vehicle complies with the equipment standards of this act.
(d) That any
repairs performed on the vehicle were done in a workmanlike manner, as
certified on a form provided by the department by a properly licensed mechanic
in the appropriate specialty. A properly licensed mechanic described in under this
subdivision must not be the same individual as the specially trained officer
making the certification of the vehicle as required under this subsection.
(14) The
certification required by subsection (13) must be made on a form prescribed and
furnished by the secretary of state in conjunction with the department of state
police and must accompany the application that is submitted to the secretary of
state for a certificate of title. An application for a certificate of title
must contain a description of each salvageable part used to repair the vehicle
and any identification number affixed to or inscribed on the part as required
by state or federal law. Upon On satisfactory completion of the inspection as
required by the secretary of state and other requirements for application, the
secretary of state shall issue a certificate of title for the
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vehicle
bearing the legend "rebuilt salvage".
(15) An officer
specially trained as provided by the secretary of state and authorized by the
secretary of state to conduct a salvage vehicle inspection is any of the
following:
(a) An employee of
the department of state.
(b) An on-duty or
off-duty police officer.
(c) A previously
certified police officer who is appointed by the local police agency as a
limited enforcement officer to conduct salvage vehicle inspections. The local
police agency shall give this officer access to the agency's law enforcement
information network system and the authority to confiscate any stolen vehicle
or vehicle parts discovered during an inspection. The local police agency may
give the officer the authority to arrest a person suspected of having unlawful
possession of a stolen vehicle or vehicle parts. The local police agency shall
not appoint a previously certified police officer whose certificate has been
suspended, revoked, or denied under subsection (16).
(16) The secretary
of state shall issue a certificate to an officer who is specially trained as
provided by the secretary of state to conduct salvage vehicle inspections. Only
a person who has a valid certification from the secretary of state may perform
salvage inspections. The secretary of state on the secretary of state's own
initiative or in response to complaints shall make reasonable and necessary
public or private investigations within or outside of this state and gather
evidence against an officer who was issued a certificate and who violated or is
about to violate this act or a rule promulgated under this act. Subject to
subsection (17), the secretary of state may suspend, revoke, or deny a
certificate after an investigation if the secretary of state
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determines
that the officer committed 1 or more of the following:
(a) Violated this
act or a rule promulgated under this act.
(b) Was, after an
investigation, found responsible for a fraudulent act in connection with the
inspection, purchase, sale, lease, or transfer of a salvage vehicle.
(c) Was found
guilty of the theft, embezzlement, or misappropriation of salvage vehicle
inspection fees.
(d) Performed
improper, careless, or negligent salvage vehicle inspections.
(e) Ceased to
function as a police officer because of suspension, retirement, dismissal,
disability, or termination of employment.
(f) Was convicted
of a violation or attempted violation of 1986 PA 119, MCL 257.1351 to 257.1355.
(g) Made a false
statement of a material fact in the officer's certification of a salvage
vehicle inspection or any record concerning a salvage vehicle inspection.
(h) Charged a fee
in excess of the fee described in subsection (26).
(17) If the
secretary of state revokes, suspends, or denies a certificate under subsection
(16)(a), (d), (g), or (h), the secretary of state shall, at the time of
revocation, suspension, or denial, notify the officer and the law enforcement
agency on behalf of which the officer is performing inspections of the law
enforcement agency's right to appeal the revocation, suspension, or denial. The
notification must include a statement that a request for an appeal under this
subsection must be made no later than 30 days after the revocation, suspension,
or denial. An agency making an appeal under this subsection may request a
hearing at the time
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the
appeal is made. The secretary of state or any person designated by the
secretary of state to act in the secretary of state's place shall deny or grant
an appeal made under this subsection within a reasonable period, in writing or
stated in the record if a hearing is held. If the secretary of state revokes a
certificate under subsection (16)(a), (d), (g), or (h) and denies an appeal of
the revocation under this subsection, the officer may apply for a new
certificate no earlier than 5 years after the revocation.
(18) Upon On receipt of
the appropriate abstract of conviction from a court and without any
investigation, the secretary of state shall immediately revoke the certificate
of an officer who has been convicted of a violation or attempted violation of
section 413, 414, 415, 535, 535a, or 536a of the Michigan penal code, 1931 PA
328, MCL 750.413, 750.414, 750.415, 750.535, 750.535a, and 750.536a, or has
been convicted in federal court or in another state of a violation or attempted
violation of a law substantially corresponding to 1 of those sections.
(19) If a dealer, other than a vehicle scrap metal
processor, acquires
ownership of an older model a vehicle from an owner, the dealer shall must receive
an assigned certificate of title and shall retain it as long as the dealer
retains the vehicle. If a vehicle scrap metal
processor acquires ownership of a vehicle from an owner who is not a licensed
dealer, the vehicle scrap metal processor must receive an assigned certificate
of title and shall retain the certificate of title until surrendered to the
secretary of state under this subsection. A vehicle scrap metal
processor, used or secondhand vehicle parts dealer,
distressed vehicle transporter, or automotive recycler shall surrender
an assigned certificate of title to the secretary of state within 30 days after
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the vehicle is destroyed or scrapped.as required under
this subsection. A vehicle scrap metal processor shall surrender an assigned
certificate of title not later than 30 days after processing the vehicle. If an
automotive recycler, used or secondhand parts dealer, used vehicle dealer, distressed
vehicle transporter, or foreign salvage vehicle dealer sells or assigns a
vehicle to a vehicle scrap metal processor, the seller or assignor shall
surrender the certificate of title to the secretary of state not later than 30
days after the vehicle is sold or assigned as required under subsection (20).
(20) A dealer
selling or assigning a vehicle to a vehicle scrap metal processor shall make a
record in a format determined by the secretary of
state. triplicate on a form to be provided
by the secretary of state in substantially the 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
________________________________
Vehicles
Dealer's
Stock
Model Year
Vehicle Make
VIN
Title Number
Number
Color
1.________
____________
___
___________
______
______
2.________
____________
___
___________
______
______
3.________
____________
___
___________
______
______
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etc.
One copy must be retained as a permanent record by the
dealer, 1 copy must be forwarded with the vehicle to be retained by the vehicle
scrap metal processor, and 1 copy must be forwarded to the secretary of state.The purchasing
dealer's name noted on the record must correspond to the name of the assignee
on the title submitted by the selling dealer provided under subsection (19).
The record must include, but is not limited to, all of the following
information:
(a) The dealer's name, address, and license number.
(b) The scrap metal processor's name, address, and license number.
(c) The date of the transaction.
(d) The vehicle's year, make, vehicle identification number, title
number, dealer stock number, and color.
(21) A person,
other than an automotive recycler, used or secondhand vehicle parts dealer, distressed vehicle transporter, or a foreign salvage vehicle
dealer, receiving a salvage certificate of title shall not sell the
vehicle to anyone other than 1 of the following:
(a) The vehicle's
former owner.
(b) A used or
secondhand vehicle parts dealer.
(c) A vehicle scrap
metal processor.
(d) A foreign
salvage vehicle dealer licensed under this act.
(e) An automotive
recycler.
(f) A distressed vehicle transporter.
(22) A person
receiving a scrap certificate of title shall not sell the vehicle to anyone
other than 1 of the following:
(a) An automotive
recycler.
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(b) A vehicle scrap
metal processor.
(c) A foreign
salvage vehicle dealer licensed under this act.
(d) A used or
secondhand vehicle parts dealer.
(e) A distressed vehicle transporter.
(23) The secretary
of state may conduct periodic reviews of the records of a dealer to determine
whether adequate notice is given to a transferee or lessee of a rebuilt salvage
vehicle of that vehicle's prior designation as a salvage vehicle. The secretary
of state may request an insurance company to provide copies of salvage title
documents and claims reports involving major component parts to assist the
secretary of state in monitoring compliance with this act.
(24) A licensed
automotive recycler, used or secondhand vehicle parts dealer, vehicle scrap
metal processor, vehicle salvage pool operator, distressed vehicle transporter,
foreign salvage vehicle dealer, or broker that has removed a scrap vehicle from
this state for the purpose of rebuilding the vehicle or selling or leasing the
vehicle to a person other than a vehicle scrap metal processor, shall receive
an automatic suspension of its dealer license and of any salvage vehicle
agent's license assigned to that dealer for a period of 30 days. Upon On receipt by
the secretary of state of a written request from the dealer, the dealer shall
have the right to an immediate hearing on the matter within that 30-day period.
(25) For the
purpose of this section, the estimated costs of the repair parts must be
determined by using the current published retail cost of original manufacturer
equipment parts or an estimate of the actual cost of the repair parts. The
estimated labor costs must be computed by using the hourly rate and time
allocations that
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are
reasonable and commonly assessed in the repair industry in the community where
the repairs are performed.
(26) A police
agency shall charge a fee for an inspection of a vehicle under subsection (13).
Each local authority with a police agency shall determine the amount of the fee
for inspections by that police agency, that but the fee must not exceed $100.00. $125.00. Except
as otherwise provided in this subsection, a fee collected under this subsection
must be deposited with the local authority for that police agency. The records
of the local authority regarding the collection and disposition of inspection
fees is subject to review or audit by the local unit of government and must be
made available upon on request to the department. If an inspection was
conducted by an employee of the department of state, the fee must be deposited
with the department of state. A fee collected by a local authority must be used
for law enforcement purposes. related to stolen vehicles, including, but not limited
to, equipment and road patrol services that increase the likelihood of
recovering stolen vehicles or stolen vehicle parts, and salvage vehicle
inspections. A fee collected by the department of state must be used by
the department for the administration of the salvage vehicle inspection program
and must not lapse to the general fund. A local police agency may compensate an
off-duty and limited enforcement police officer for a salvage vehicle
inspection.
(27) For the
purpose of this section, "actual cash value" means the retail dollar
value of a vehicle as determined by an objective vehicle evaluation using local
market resources such as dealers or want ads or by an independent vehicle
evaluation or vehicle appraisal service or by a current issue of a nationally
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recognized
used vehicle guide for financial institution appraisal purposes in this state.
Sec. 233. (1) If the owner of a registered
vehicle transfers or assigns the title or interest in the vehicle, the
registration plates issued for the vehicle shall must be removed and transferred to the owner's
spouse, mother, father, sister, brother, or child to whom title or interest in
the vehicle is transferred, or retained and preserved by the owner for transfer
to another vehicle upon on application and payment of the required fees. A
person shall not transfer the plates to a vehicle without applying for a proper
certificate of registration describing the vehicle to which the plates are
being transferred, except as provided in section 217(4). If the owner of a
registered vehicle acquires another vehicle without transferring or assigning
the title or interest in the vehicle for which the plates were issued, the
owner may have the plates transferred to the subsequently acquired vehicle upon on application
and payment of the required fees.
(2) A person shall
not purchase or lease another vehicle or an interest in another vehicle with
the intent to circumvent the restrictions created by immobilization of a
vehicle under this act.
(3) A person shall
not transfer or attempt to transfer ownership or right of possession of a
vehicle subject to forfeiture or ordered forfeited under this act with the
intent to avoid the forfeiture of that vehicle.
(4) During the time
a vehicle is subject to a temporary registration plate, vehicle forfeiture,
immobilization, registration denial, or the period from adjudication to
immobilization or forfeiture under this act, a person shall not without a court
order transfer or assign the title or an interest
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in
the vehicle to a person who that is not subject to payment of a use tax under
section 3 of the use tax act, 1937 PA 94, MCL 205.93.
(5) A person who that violates
subsection (2), (3), or (4) is guilty of a misdemeanor punishable by
imprisonment for not more than 1 year or a fine of not more than $1,000.00, or
both.
(6) A person An individual whose
operator's or chauffeur's license is suspended, revoked, or denied for, or who
has never been licensed by this state and was convicted for, a third or
subsequent violation of section 625 or 625m, of a local ordinance substantially
corresponding to section 625 or 625m, or of a law of another state
substantially corresponding to section 625 or 625m, or for a fourth or
subsequent suspension or revocation under section 904 shall not purchase,
lease, or otherwise acquire a motor vehicle during the suspension, revocation,
or denial period. A person An individual who violates this subsection is guilty
of a misdemeanor punishable by imprisonment for not more than 93 days or a fine
of not more than $100.00, or both.
(7) If the assigned
holder of registration plates applies for a new registration certificate, the
application shall must
be accompanied either by the old registration certificate or by a
certificate of title showing the person to be the assigned holder of the
registration plates for which the old registration certificate had been issued.
A person who that fails
or neglects to fulfill the requirements of this subsection is guilty of a
misdemeanor punishable by imprisonment for not more than 93 days or a fine of
not more than $100.00, or both.
(8) The Except for a title issued electronically under section 222,
the owner shall indorse endorse on the certificate of title as required by
the secretary of state an assignment of the title with
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warranty
of title in the form printed on the certificate with a statement of all
security interests in the vehicle or in accessories on the vehicle and deliver
or cause the certificate to be mailed or delivered to the purchaser or
transferee at the time of the delivery to the purchaser or transferee of the
vehicle. The certificate shall must show the payment or satisfaction of any security
interest as shown on the original title. However, as provided under section
238, the secretary of state is not required to issue a title to the owner of a
vehicle if the title is subject to a security interest.
(9) Upon On the
delivery of a motor vehicle and the transfer, sale, or assignment of the title
or interest in a motor vehicle by a person, including a dealer, the effective
date of the transfer of title or interest in the vehicle is the date of
signature on either the application for title or the assignment of the
certificate of title by the purchaser, transferee, or assignee.
(10) A secured
receipt that is in a form approved by the department and produced at the time
the secured interest is presented with payment in satisfaction of the security
interest may be submitted to the department in lieu of the title for purposes
of transferring ownership in the vehicle.
Sec. 233a. (1) Except as otherwise
provided in subsection (17), if the owner of a registered motor vehicle
transfers the owner's title or interest in that vehicle, the transferor shall
present to the transferee before delivery of the vehicle, written disclosure of
odometer mileage by means of the certificate of title or a written statement
signed by the transferor including the transferor's printed name, containing
all of the following:
(a) The odometer
reading at the time of transfer, not
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including
the tenths of a mile or kilometer.
(b) The date of
transfer.
(c) The
transferor's name and current address.
(d) The
transferee's name and current address.
(e) The identity of
the vehicle, including its make, model, body type, year, and vehicle
identification number.
(f) A reference to
this section and comparable federal law, and a statement that failing to
complete the title or form or providing false information may result in civil
liability and civil or criminal penalties being imposed on the transferor.
(g) One of the
following:
(i) A statement by the transferor certifying
that to the best of the transferor's knowledge the odometer reading reflects
the actual mileage of the vehicle.
(ii) If the transferor knows that the
odometer reading reflects the amount of mileage in excess of the designed
mechanical odometer limit, a statement to that effect.
(iii) If the transfer knows that the odometer
reading differs from the mileage and the difference is greater than that caused
by odometer calibration error, a statement that the odometer reading does not
reflect the actual mileage and should not be relied on. This notice must
include a warning notice to alert the transferee that a discrepancy exists
between the odometer and the actual mileage.
(h) Space for the
signature and printed name of the transferee, and the date of presentation to
the transferee.
(2) A certificate
of title and a dealer reassignment form must contain a place for the
information required by subsection (1)(a) to (h). If the vehicle is not titled
or the title does not contain
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a
space for the required information, a written statement must be provided as a
separate document.
(3) A dealer
selling or exchanging vehicles required to be titled under this act shall
present the certificate of title or written statement and any reassigned titles
in the dealer's possession to the transferee. The transferee or the
transferee's agent shall inspect, print the transferee's or transferee's
agent's name on, sign, and date the certificate or statement and return it to
the transferor for submission to the secretary of state. If neither the
transferee nor transferor is a dealer licensed under this act, completing the
odometer information on the certificate of title must be considered to comply
with subsection (1). A person shall not sign an odometer disclosure statement
as both the transferor and transferee in the same transaction.
(4) A new or used
vehicle dealer shall obtain from the transferor a completed odometer mileage
statement that meets the requirements of subsection (1) with each motor vehicle
acquired by the dealer. Except as provided in subsection (16), the dealer shall
not accept or provide an odometer mileage statement or a title that contains a
place for odometer information that has not been completely filled in by the
transferor.
(5) The odometer
information described in subsection (1) must not be required for any of the
following:
(a) Vehicles having
a gross vehicle weight rating of more than 16,000 pounds.
(b) A vehicle that
is not self-propelled.
(c) A vehicle
manufactured in or before the 2010 model year that is transferred at least 10
years after January 1 of the calendar year that is included in the model year
in which the
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vehicle
is manufactured.
(d) A vehicle
manufactured in or after the 2011 model year that is transferred at least 20
years after January 1 of the calendar year that is included in the model year
in which the vehicle was manufactured.
(e) A new vehicle
transferred from a manufacturer to a dealer.
(f) A vehicle sold
directly by the manufacturer to an agency of the United States in conformity
with contractual specifications.
(g) A low-speed
vehicle.
(h) A scrap
vehicle.
(6) A person shall
not alter, set back, or disconnect an odometer; cause or allow an odometer to
be altered, set back, or disconnected; or advertise for sale, sell, use,
install, or cause or allow to be installed a device which causes an odometer to
register other than the actual mileage driven. This subsection does not
prohibit the service, repair, or replacement of an odometer if the mileage
indicated on the odometer remains the same as before the service, repair, or
replacement. If the odometer is incapable of registering the same mileage as
before the service, repair, or replacement, the odometer must be adjusted to
read zero and a notice in writing must be attached to the left door frame of
the vehicle by the owner or the owner's agent specifying the mileage prior to
service, repair, or replacement of the odometer and the date on which it was
serviced, repaired, or replaced. A person shall not remove, deface, or alter
any notice affixed to a motor vehicle under this subsection.
(7) A person who
violates subsection (6) is guilty of a felony.
(8) Before
executing a transfer of ownership document, a
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lessor
of a leased vehicle shall notify the lessee in writing that ownership of the
vehicle is being transferred and that the lessee is required to provide a
written statement to the lessor regarding the mileage of the vehicle. This
notice must inform the lessee of the penalties for failure to comply with the
requirement.
(9) Upon On receiving
notification from the lessor of a leased vehicle that ownership of the vehicle
is to be transferred, the lessee shall furnish to the lessor a written
statement regarding the mileage of the vehicle. This statement must be signed
by the lessee and must contain all of the following:
(a) The printed
name of the person making the statement.
(b) The current
odometer reading, not including tenths of miles.
(c) The date of the
statement.
(d) The lessee's
name and current address.
(e) The lessor's
name and current address.
(f) The identity of
the vehicle, including its make, model, year, body type, and vehicle
identification number.
(g) The date that
the lessor notified the lessee of the requirements of this subsection.
(h) The date that
the completed disclosure statement was received by the lessor.
(i) The signature
of the lessor.
(j) One of the
following:
(i) A statement by the lessee certifying
that to the best of the lessee's knowledge the odometer reading reflects the
actual mileage of the vehicle.
(ii) If the lessee knows that the odometer
reading reflects the amount of mileage in excess of the designed mechanical
odometer
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limit,
a statement to that effect.
(iii) If the lessee knows that the odometer
reading differs from the mileage and that the difference is greater than that
caused by odometer calibration error, a statement that the odometer reading is
not the actual mileage and should not be relied on.
(10) If the lessor
transfers a leased vehicle without obtaining possession of the vehicle, the
lessor may indicate on the certificate of title the mileage disclosed by the
lessee under subsection (9), unless the lessor has reason to believe that the
mileage disclosed by the lessee does not reflect the actual mileage of the
vehicle.
(11) A dealer that
is required by this section to execute an odometer mileage statement shall
retain for 5 years a photostatic, carbon, or other facsimile copy of each
odometer mileage statement the dealer issues or receives. The dealer shall
retain the odometer mileage statements at the dealer's primary place of
business in an order that is appropriate to business requirements and that
permits systematic retrieval.
(12) A lessor shall
retain, for 5 years following the date of transfer of ownership of each leased
vehicle, the odometer mileage statement received from the lessee. The lessor
shall retain the odometer mileage statements at the lessor's primary place of business
in an order that is appropriate to business requirements and that permits
systematic retrieval.
(13) An auction
dealer or vehicle salvage pool operator shall establish and retain at the
auction dealer's or vehicle salvage pool operator's primary place of business
in an order that is appropriate to business requirements and that permits
systematic retrieval, for 5 years following the date of sale of each motor
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vehicle,
the following records:
(a) The name and
the most recent owner, other than the auction dealer or salvage pool operator.
(b) The name of the
buyer.
(c) The vehicle
identification number.
(d) The odometer
reading, not including the tenths of a mile, on the date the auction dealer or
salvage pool operator took possession of the motor vehicle.
(14) A violation of
subsection (1) or (6) by any dealer licensed under this act is prima facie
evidence of a fraudulent act as provided in section 249.
(15) A person who,
with intent to defraud, violates any requirement under subsection (1) or (6),
or a dealer that fails to retain for 5 years each odometer mileage statement
the dealer receives and each odometer mileage statement furnished by the dealer
upon on the
sale of a vehicle, is liable in an amount equal to 3 times the amount of actual
damages sustained or $1,500.00 whichever is greater, and in the case of a
successful recovery of damages, the costs of the action together with
reasonable attorney fees.
(16) For the
purposes of this section and beginning not later than July
1, 2026, the department may shall accept
an electronically signed odometer disclosure document that complies with all of the following:from a new vehicle dealer or a used or secondhand vehicle
dealer approved by the department.
(a) Is submitted on a form that is approved by the
department.
(b) Is electronically signed using software that provides
antitamper and identification verification technology and is approved for this
use by the department.
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(c) Is otherwise fully compliant with 49 CFR part 580.
(17) The department
may establish, implement, and operate an electronic system to process the
notification and transfer of a vehicle ownership interest between private
parties through an electronic transfer instead of the collection of paper
documents otherwise required under this act. If the electronic system is
established, a private party that uses the electronic system shall comply with
any requirement of this section that the department determines is necessary and
provide any information that is required by the department. The department may
enter into 1 or more contracts to establish, implement, and operate the
electronic system under this subsection. The contract must require the
protection of proprietary information contained in the electronic system and
other information as protected under this act.
(18) As used in
this section, "private parties" means that both a vehicle's buyer and
seller are not a dealer.
Sec. 233b. (1) As used in this section:
(a)
"Distributor" means that term as defined in section 3(1) of the motor vehicle franchise act, 1981 PA 118, MCL
445.1563.
(b)
"Manufacturer" means that term as defined in section 4(2) 4(5) of the motor vehicle franchise act, 1981 PA 118, MCL
445.1564.
(c) "Program
vehicle" means a motor vehicle from either the current model year or the
immediately preceding model year, that was repurchased by a manufacturer or
distributor from a rental car company.
(2) Except as
provided in this subsection, a new motor vehicle dealer shall disclose in
writing to a purchaser or lessee of a new motor vehicle, demonstrator, courtesy transportation vehicle, executive or
manufacturer's vehicle, or program vehicle before
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entering
into a sales contract or lease agreement that, after the vehicle completed the
manufacturing process, the vehicle was damaged and repaired, including an
itemization of repairs, if the dealer has knowledge of the damage and repairs
and if the cost of the cumulative repairs, as calculated at the rate of the
dealer's authorized warranty rate for labor and parts exceeds either 1 of the
following:
(a) Five percent of
the manufacturer's suggested retail price of the vehicle.
(b) Seven hundred fifty One
thousand five hundred dollars in surface coating repairs or corrosion
protection restoration or a combination of these items. If a new motor vehicle
dealer fails to comply with this subsection, the purchaser or lessee shall
retain all applicable remedies available under article 2 of the uniform
commercial code, 1962 PA 174, MCL 440.2101 to 440.2725.
(3) A dealer in new
motor vehicles is not required to disclose to a purchaser or lessee under this
act that any glass, tires, wheels, bumpers, audio equipment, in-dash
components, or components contained in the living quarters of a motor home that
are not required for the operation of the motor home as a motor vehicle were
damaged at any time if the damaged item has been replaced with original
manufacturer's parts and material.
(4) Repaired damage
to a motor vehicle, subject to this section, not exceeding the cost of
cumulative repairs as determined pursuant to subsection (2) shall is not constitute grounds for revocation of acceptance by
the purchaser or lessee. The right of revocation ceases upon the purchaser's or
lessee's acceptance of delivery of the vehicle.
Sec. 234. (1) The
Except for a title issued electronically
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under section 222, if a purchaser or transferee, unless the person
is a licensed dealer, shall present or cause presents or causes to be presented the certificate of
title and registration certificate if plates are being transferred to another
vehicle, assigned as provided in this act, to the secretary of state accompanied by with the
fees as provided by law, whereupon a new
certificate of title and registration certificate shall
must be issued to the assignee. The
certificate of title shall must be mailed or delivered to the owner or another
person the owner may direct in a separate instrument in a form prescribed by the secretary of state. shall prescribe.
(2) If the
secretary of state mails or delivers a purchaser's or transferee's certificate
of title to a dealer, the dealer shall mail or deliver that certificate of
title to the purchaser or transferee not more than 5 days after receiving the
certificate of title. from the secretary of state.
(3) Unless the
transfer is made and the fee fees are paid within 15 21 days, the vehicle is considered to be without
registration, the secretary of state may repossess the license plates, and
transfer of the vehicle ownership may be effected and a valid registration
acquired thereafter only upon after payment
of a transfer fee of $15.00 $50.00 in addition to the fee fees provided
for in section 806.
(4) If a security
interest is reserved or created at the time of the transfer, the parties shall
comply with the requirements of section 238.
Sec. 235. (1) If the transferee of a vehicle is a new
motor vehicle dealer or a used or secondhand vehicle dealer that acquires the
vehicle for resale, the dealer is not required to obtain a new
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registration
of the vehicle or forward the certificate of title to the secretary of state,
but shall retain and have in the dealer's immediate possession, or, upon on providing
prior written notice to the department and receiving the department's approval within not later than 7
business days after the department receives the written notice, at a secondary
location owned by the dealer that is located within a 15-mile radius, the
assigned certificate of title with the odometer information properly completed,
except for a title issued electronically under section
222, or as otherwise provided in section 235b. A dealer shall obtain a
certificate of title for a vehicle that has a salvage certificate of title
before the dealer may operate the vehicle under dealer's license plates. Upon
transferring title or interest to another person that is not a dealer, the
dealer shall complete an assignment and warranty of title upon on the
certificate of title, salvage certificate of title, or dealer reassignment of
title form and apply for a registration and a new title as provided in section
217(4).
(2) The dealer or
transferee is liable for all damages arising from the operation of the vehicle
while the vehicle is in the dealer's or transferee's possession.
(3) Upon Except for a title
issued electronically under section 222, on transferring title or
interest to another dealer, the dealer shall complete an assignment and
warranty of title on the certificate of title, salvage certificate of title, or
dealer reassignment of title form and deliver it to the licensed dealer
receiving the transfer.
(4) The secretary
of state shall prescribe the dealer reassignment of title form. The form must
contain the title number of the accompanying title; the name, address, and, if
applicable,
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dealer
license number of the transferee; the year, make, model, body type, and vehicle
identification number of the vehicle; the name, address, dealer number, and
signature of the transferor; an odometer mileage statement as prescribed under
section 233a; and any other information the secretary of state requires.
(5) This section
does not prohibit a dealer from selling a buy back vehicle while the
certificate of title is in the possession of a manufacturer that obtained the
certificate of title under the manufacturer's buy back vehicle program. The
manufacturer shall mail the certificate of title to the dealer within not later than 5
business days after the manufacturer's receipt of a signed statement from the
purchaser of the vehicle acknowledging the purchaser was informed by the dealer
that the manufacturer acquired title to the vehicle as the result of an
arbitration proceeding, under a customer satisfaction policy adopted by the
manufacturer, or under 1986 PA 87, MCL 257.1401 to 257.1410, or a similar law
of another state.
(6) This section
does not prohibit a dealer from selling an off lease vehicle while the
certificate of title is in the possession of a lessor. The lessor shall mail
the certificate of title to the dealer within not later than 21 days after the lessor receives the
purchase price of the vehicle and any other fees and charges due under the
lease.
Sec. 238. (1) When an owner named in a
certificate of title creates a security interest in the vehicle described in
the certificate or in any accessory on the vehicle, all of the following apply:
(a) The owner shall
immediately execute an application in the form prescribed by the department to
name the holder of the
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security
interest on the certificate of title, showing the name and address of the
holder and deliver the certificate of title, application, and the required fee together with a copy of the
application, to the holder of the security interest.
(b) The holder of
the security interest shall cause the certificate of title, application, and fee and the copy of the application to be
mailed or delivered to the department.
(c) The department
shall indicate on the copy of the application the date and place of filing of
the application.
(d) Upon On receipt of
the certificate of title, application, and the
required fee, the department shall issue a new certificate in the form provided
by section 222 setting forth the name and address of each holder of a security
interest in the vehicle or in any accessory on the vehicle for which a
termination statement has not been filed and the date on which the application
first stating the security interest was filed, and mail the certificate to the
owner. However, as provided under this section, the secretary of state is not
required to issue a title to the owner of a vehicle if the title is subject to
a security interest.
(2) A holder of any
kind of a security interest may assign, absolutely or otherwise, the holder's
security interest in the vehicle or any accessory thereon
on the vehicle to a person other than
the owner without affecting the interest of the owner or the validity of the
security interest, but any person without notice of the assignment is protected
in dealing with the holder of the security interest as the holder thereof.of the security
interest.
(3) If a person rejects the assignment or the purchase of a motor
vehicle lease agreement or installment sale contract or, at any time after
accepting the assignment or purchase of a motor
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vehicle lease agreement or installment
sale contract, the person subsequently reassigns or transfers the motor vehicle
lease agreement or installment sale contract to the licensed dealer or
installment seller after a security interest is identified on the application
for title or the title for the vehicle, the person shall provide written notice
to the licensed dealer or installment seller that the person does not retain a
security interest or that it has returned the security interest in the vehicle
to the licensed dealer or installment seller. If a written notice is
accompanied by a properly completed application for title, the department of
state shall accept the written notice from the person and promptly issue a new
title identifying the licensed dealer or installment seller as the secured
party on the title to the vehicle.
(4) (3) The
assignee of a security interest may have the certificate of title indorsed with
the assignee named as the holder of the security interest by providing the
department with a copy of the assignment instrument, but the failure of the
assignee to do so shall does not affect the validity of the security interest
of that assignment.
(5) (4) If
there is no outstanding obligation and no commitment to make advances, incur
obligations, or otherwise give value secured or to be secured by a security
interest in a vehicle or an accessory on the vehicle, for which the certificate
of title is in possession of a secured party, the secured party may, not more
than 14 days after satisfaction of the obligation, execute a termination
statement in the form prescribed by the department and mail or deliver the
termination statement to the owner or another person as the owner may direct.
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(6) (5) If
there is no outstanding obligation and no commitment to make advances, incur
obligations, or otherwise give value secured or to be secured by a security
interest in a vehicle or an accessory on the vehicle, for which the certificate
of title is in the possession of another person, the secured party shall,
within 14 days after demand but not more than 30 days after demand, execute a
termination statement in the form prescribed by the department and mail or
deliver the termination statement to the owner or another person as the owner
may direct.
(7) (6) The
department may require that all transactions concerning vehicle title liens and
security interests be conducted by electronic means, as determined by the
department. After all liens have been terminated, or for purposes of retitling
the vehicle in another state or any other purpose deemed appropriate by the
department, the department may issue a paper copy of the vehicle title to the
vehicle's owner.
(8) (7) A
vehicle sale transaction in which a security interest is entered by electronic
means shall must include
a document recording entry of the electronic security interest and information
regarding the financial institution that holds the security interest. At the
time a security interest is presented with payment in satisfaction of the
security interest, a secured receipt in a form approved by the department and
produced at the time the security interest is presented with payment in
satisfaction of the security interest may be submitted to the department in lieu instead of
the title for purposes of transferring ownership in the vehicle.
(9) As used
in this section, "installment buyer", "installment sale
contract", and "installment seller" mean those terms as
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defined in section 2 of the motor vehicle sales finance
act, 1950 (Ex Sess) PA 27, MCL 492.102.
Sec. 239. A Except for a title issued electronically under section 222,
a person shall not fail or neglect to properly endorse indorse and
deliver a certificate of title to a transferee or owner lawfully entitled to
the title. A person who that violates this section is responsible for a civil
infraction and shall may be ordered to pay a civil fine of not more than
$100.00.
Sec. 240. (1) The owner of a motor vehicle
who has made a bona fide sale by transfer of his or
her the owner's title or interest and, except for a title issued
electronically under section 222, who has delivered possession of the
vehicle and the certificate of title to that vehicle properly endorsed to the
purchaser or transferee is not liable for any damages or a violation of law
that subsequently results from the use or ownership of the vehicle by another,
if the owner, other than a licensed dealer, satisfies the conditions prescribed
under subsection (2).
(2) The owner of a
motor vehicle, other than a licensed dealer, shall satisfy 1 of the following
conditions:
(a) Accompany the
purchaser of the vehicle to a secretary of state branch office to assure that
the title of the vehicle being sold is transferred.
(b) Maintain a
record of the sale for not less than 18 months. As used in this subdivision,
"record of the sale" means either a photocopy of the reassigned title
or a form or document that includes the name, address, driver license number,
and signature of the person to whom the vehicle is sold and the purchase price
and date of sale of the vehicle.
(3) A person who that violates
subsection (2) is responsible
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for
a civil infraction and shall may be ordered to pay a civil fine of $15.00.
(4) A person who that violates
subsection (2) is presumed to be the last titled owner and to be liable for
towing fees and daily storage fees for an abandoned motor vehicle.
Sec. 248. (1) The secretary of state shall not grant a
dealer license under this section until the secretary of
state conducts an investigation of the applicant's qualifications under
this act. , except
that this This subsection does not apply
to a license renewal. The secretary of state shall conduct the investigation
within 15 days after receiving the application and prepare a report on the
investigation.
(2) An applicant
for a new vehicle dealer or a used or secondhand vehicle dealer or broker
license shall include a properly executed bond or a bond renewal certificate,
approved by the secretary of state, with the license application. If a renewal
certificate is used, the bond is considered renewed for each succeeding year in
the same amount and with the same effect as an original bond. The bond must be
in the amount of $25,000.00. The bond must indemnify or reimburse a purchaser,
seller, lessee, financing agency, or governmental agency for monetary loss
caused through fraud, cheating, or misrepresentation in the conduct of the
vehicle business whether the fraud, cheating, or misrepresentation was made by
the dealer or by an employee, agent, or salesperson of the dealer. The surety
shall make indemnification indemnify or reimbursement
for reimburse a monetary loss only after
a judgment based on fraud, cheating, or misrepresentation is entered in a court
of record against the licensee, or a final order that the licensee has engaged in
fraud, cheating, or misrepresentation is
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issued
by the secretary of state after an administrative hearing, or the licensee and the secretary
of state enter into a stipulated agreement. The bond must also
indemnify or reimburse the state for any sales tax deficiency as provided in
the general sales tax act, 1933 PA 167, MCL 205.51 to 205.78, or use tax
deficiency as provided in the use tax act, 1937 PA 94, MCL 205.91 to 205.111,
for the year in which the bond is in force. The surety shall make indemnification indemnify
or reimbursement reimburse only after a final judgment is entered in a
court of record against the licensee, or a final order is issued by the secretary of
state after an administrative hearing, or the licensee
and the secretary of state enter into a stipulated agreement. A dealer
or applicant that provides proof that is satisfactory to the secretary of state
that a bond similar to the bond required by this subsection is executed and in
force is exempt from the bond requirements of this subsection. The aggregate
liability of the surety must not exceed the sum of the bond. The surety on the
bond may cancel the bond by giving notice in writing to the secretary of state
of the cancellation at least 30 days before the effective date of the
cancellation and is not liable for a breach of condition occurring after the
effective date of the cancellation.
(3) An applicant
for a new vehicle dealer or a used or secondhand vehicle dealer license shall
apply for not less than 2 dealer plates under section 245 and shall include
with the application the proper fee for those plates under section 803.
(4) As a condition
precedent to the granting of a license, a dealer must file with the secretary
of state an irrevocable written stipulation, authenticated by the applicant,
stipulating and agreeing that legal process affecting the dealer, served on the
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secretary
of state or a deputy of the secretary of state, has the same effect as if
personally served on the dealer. This appointment remains in force as long as
the dealer has any outstanding liability within this state.
(5) A person shall
not carry on or conduct the business of buying, selling, brokering, leasing,
negotiating a lease, or dealing in 5 or more vehicles of a type required to be
titled under this act in a 12-month period unless the person obtains a dealer license
from the secretary of state authorizing the carrying on or conducting of that
business. A person shall not carry on or conduct the business of buying,
selling, brokering, leasing, negotiating a lease, or dealing in 5 or more
distressed, late model vehicles or salvageable parts to 5 or more of those
vehicles in a 12-month period unless the person obtains a used or secondhand
vehicle parts dealer, an automotive recycler, or a salvage pool license from
the secretary of state or is an insurance company admitted to conduct business
in this state. A person shall not carry on or conduct the business of buying 5
or more vehicles in a 12-month period to process into scrap metal or store or
display 5 or more vehicles in a 12-month period as an agent or escrow agent of
an insurance company unless the person obtains a dealer license from the
secretary of state. A vehicle scrap metal processor that does not purchase
vehicles or salvageable parts from unlicensed persons is not required to obtain
a dealer license. A person from another state shall not purchase, sell, or
otherwise deal in distressed, late model vehicles or salvageable parts unless
the person obtains a foreign salvage vehicle dealer license from the secretary
of state under section 248b. A person, including a dealer, shall not purchase
or acquire a distressed, late model vehicle or a
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salvageable
part through a salvage pool, auction, or broker without a license as a salvage
vehicle agent. The secretary of state shall investigate and seek prosecution,
if necessary, of persons allegedly conducting a business without a license.
(6) The application
for a dealer license must be in the form prescribed by the secretary of state
and signed by the applicant. In addition to any other information required by
the secretary of state, the application must include all of the following:
(a) The name of the
applicant.
(b) The location of
the applicant's established place of business in this state, together with a written
verification from the appropriate governing or zoning authority that the
established place of business meets all applicable municipal and zoning
requirements.
(c) The name under
which the dealer will conduct business.
(d) If the business
is a corporation, the state of incorporation.
(e) If the business
is a sole proprietorship or partnership, the name, address, and date of birth
of each owner or partner; if the business is a corporation, the name, address,
and date of birth of each of the principal officers.
(f) The county in
which the applicant will conduct business and the address of each place of
business in that county.
(g) If the dealer's
business is the sale of new vehicles, the make or makes of those vehicles. Each A new vehicle
dealer shall send with the application for license a certification that the
dealer holds a bona fide contract to act as factory representative, factory
distributor, or distributor representative to sell at retail ......... (the make of
vehicle to be sold) and that the
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contract
meets the requirements for a dealer agreement under the motor vehicle franchise
act, 1981 PA 118, MCL 445.1561 to 445.1583.
(h) A statement of
the previous history, record, and associations of the applicant and of each
owner, partner, officer, or director of the applicant. The statement must be
sufficient to establish to the satisfaction of the secretary of state the
business reputation and character of the applicant.
(i) A statement
showing whether the applicant has previously applied for a license, the result
of the application, and whether the applicant has ever been the holder of a
dealer license that was revoked or suspended.
(j) If the
applicant is a corporation or partnership, a statement showing whether a
partner, employee, officer, or director has been refused a license or has been
the holder of a license that was revoked or suspended.
(k) If the
application is for a used or secondhand vehicle parts dealer or an automotive
recycler, all of the following:
(i) Evidence that the applicant maintains or
will maintain an established place of business.
(ii) Evidence that the applicant maintains or
will maintain a police book and vehicle parts purchase and sales and lease
records as required under this act.
(iii) Evidence of worker's compensation
insurance coverage for employees classified under the North American Industry
Classification System number 42114, 423140, entitled "motor vehicle parts (used)
merchant wholesalers" or under the National Council on Compensation
Insurance classification code number 3821, entitled "automobile
dismantling", if applicable.
(l) A certification that neither the
applicant nor another
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person
named on the application is acting as the alter ego of any other person or
persons in seeking the license. For the purpose of this subdivision,
"alter ego" means a person that acts for and on behalf of, or in the
place of, another person for purposes of obtaining a vehicle dealer license.
(m) A certification
that the applicant if the applicant is an individual or sole proprietorship,
the partners of the applicant if the applicant is a partnership, the principal
officers of the applicant if the applicant is a corporation, or any other individual
who is responsible for the daily operations of the dealership, as applicable,
has reviewed and understands the requirements of this act, the rules
promulgated under this act, the dealer manual published by the secretary of
state, and any other applicable material provided by the department.
(n) For an
application submitted by or on behalf of an eligible used vehicle dealer for an
original license, a certification that within the 6-month period preceding the
date of the application, the applicant, the partners of the applicant, or the
principal officers of the applicant, as applicable, completed the dealer
training program described in section 248l(2). This subdivision does not apply to an
application to renew the license of an eligible used vehicle dealer and does
not apply to any original license that was granted to an eligible used vehicle
dealer before, and that is valid on, March 20, 2019. As used in this
subdivision and subdivision (o), "eligible used vehicle dealer" means
that term as defined in section 248l.
(o) For an
application submitted by or on behalf of an eligible used vehicle dealer for an
original or renewal license, a certification that each retail sales location of
that dealer has an
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employee
that has completed the dealer training program required under section 248l(3) or (5), as applicable.
(7) A person shall
apply separately for a dealer license for each county in which business is to
be conducted. Before moving 1 or more places of business or opening an
additional place of business, a dealer shall apply to the secretary of state
for and obtain a supplemental dealer license. The secretary of state shall not
charge a fee for a supplemental dealer license and shall issue a supplemental
dealer license only for a location, including a tent, temporary stand, or any
temporary quarters, that does not meet the definition of an established place
of business, within the county in which the dealer's established place of
business is located. A dealer license entitles the dealer to conduct the
business of buying, selling, leasing, and dealing in vehicles or salvageable
parts in the county covered by the license. The dealer license also entitles
the dealer to conduct at any other licensed dealer's established place of
business in this state only the business of buying, selling, leasing, or
dealing in vehicles at wholesale.
(8) The secretary
of state shall classify and differentiate vehicle dealers according to the type
of activity they perform. A dealer shall not engage in activities of a
particular classification as provided in this act unless the dealer is licensed
in that classification. An applicant may apply for a dealer license in 1 or
more of the following classifications:
(a) New vehicle
dealer.
(b) Used or
secondhand vehicle dealer. A used or secondhand vehicle dealer may be eligible
for a mobility dealer endorsement under section 248k.
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(c) Used or
secondhand vehicle parts dealer.
(d) Vehicle scrap
metal processor.
(e) Vehicle salvage
pool operator.
(f) Distressed
vehicle transporter.
(g) Broker.
(h) Foreign salvage
vehicle dealer.
(i) Automotive
recycler.
(j) Wholesaler.
(9) All of the
following apply to the issuance, renewal, and expiration of a dealer license
under this section:
(a) A dealer
license expires on December 31 of the last year that the license is valid.
(b) A dealer shall
renew its dealer license annually. The secretary of state may renew a dealer
license for a period of not more than 4 years if the secretary receives a
renewal application and payment of the fee required under section 807.
(c) To renew a
dealer license, the dealer shall file an application for renewal with the
secretary of state at least 30 days before the expiration of its current
license.
(d) If a dealer has
not renewed its dealer license on or before the expiration date of its current
license, the secretary of state within not later than 10 business days after that expiration
date must notify the dealer that the secretary of state has not received its
renewal application. The notice must include the amount of the late renewal
fee.
(e) A dealer may
continue to operate its dealer business after the expiration of its dealer
license, pending approval of the renewal application, if the renewal
application is delivered in person or mailed to the secretary of state on or
before the
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expiration
date of the license. If requested by the department, a dealer that mails an
application under this subdivision must provide proof of the mailing of the renewal application that is
satisfactory to the department.
(f) If an
application to renew a dealer license is filed with the secretary of state
after the expiration of that license, the dealer may operate its dealer
business beginning on the date on which the application is delivered or mailed
to the secretary of state, pending approval of the renewal application. If
requested by the department, a dealer that mails an application under this
subdivision must provide proof of the mailing
of the renewal application that is satisfactory to the department. A dealer
shall pay a renewal fee equal to 150% of the normal renewal fee for a renewal
described in this subdivision.
(g) If a dealer
files an application to renew a dealer license more than 30 days after the
expiration of that license, the dealer is considered a new applicant for a
dealer license under this section.
(h) The secretary
of state shall deposit the late renewal fees collected under subdivisions (d)
and (f) in the transportation administration collection fund created in section
810b.
(i) The secretary
of state shall not renew a the dealer's license if the applicant has not bought
or sold more than 5 vehicles during the 12 months preceding the dealer's
renewal application.
(10) A dealer may
conduct the business of buying, selling, or dealing in motor homes, trailer
coaches, trailers, or pickup campers at a recreational vehicle show conducted
at a location in this state without obtaining a separate or supplemental
license
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under
subsection (7) if all of the following apply:
(a) The dealer is
licensed as a new vehicle dealer or used or secondhand vehicle dealer.
(b) The duration of
the recreational vehicle show is not more than 14 days.
(c) Not less than
14 days before the beginning date of the recreational vehicle show, the show
producer notifies the secretary of state, in a manner and form prescribed by
the secretary of state, that the recreational vehicle show is scheduled, the
location, dates, and times of the recreational vehicle show, and the name,
address, and dealer license number of each dealer participating in the
recreational vehicle show.
(11)
Notwithstanding section 235, a dealer may advertise or display to the public a
vehicle that the dealer has acquired or that is available to the dealer
directly from the manufacturer or distributor or the manufacturer's or
distributor's subsidiary or affiliate within a reasonable period of time, or a vehicle for which the dealer has requested a paper
title from the department after the dealer assumed the lien, even though
the dealer is still waiting on possession of the vehicle's title. Such a The vehicle,
if displayed on the dealer's lot, must be placed in a dedicated area at the
dealership and arranged in a manner that clearly separates the vehicle from
those vehicles that are available for immediate
sale to the public with signage placed on the vehicle indicating the vehicle is
not available for final sale until the title is in the possession of the
dealer.
(12) A dealer may
park, store, hold, and repair vehicles owned under 1 dealer license on the lot
or property held by the same dealer under a separate dealer license that is
located within a 15-
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mile
radius.
(13) Except as otherwise provided in this subsection, a dealer may
surrender a dealer license by delivering to the secretary of state the license
and written notice that the dealer surrenders the license. The surrender of a
license under this subsection does not affect the dealer's administrative,
civil, or criminal liability for an act committed before the surrender of the license
under this subsection. The surrender of a license does not affect a proceeding
to suspend or revoke a license. The secretary of state shall not issue a refund
to the dealer surrendering the license. The secretary of state shall not issue
the surrendering dealer a new dealer license at this location before 1 year
after the voluntary surrender of the license. The secretary of state shall deny
a dealer's attempt to surrender a dealer license under this subsection if the
secretary of state determines that the dealer is surrendering the license to
avoid disciplinary action.
Sec. 248a. (1) A motor vehicle dealer
shall not advertise or represent a motor vehicle to be a demonstrator, courtesy transportation vehicle, executive or
manufacturer's vehicle, leased vehicle, new motor vehicle, or used or
secondhand vehicle unless the vehicle so described is as defined in this act.
(2) A motor vehicle
dealer shall maintain and adhere to designated business hours that are filed
with the secretary of state.
Sec. 248j. (1) In addition to any other
remedies provided by law, if the secretary of state determines that a person
has acted as a dealer without a dealer license, he
or she the secretary of state may issue
the person a verbal or written warning or assess an administrative fine of not
more than $5,000.00 for a first
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violation,
and not more than $7,500.00 for each subsequent violation occurring within not later than 7
years of after a
prior violation.
(2) If the
secretary of state assesses an administrative fine under subsection (1), the
secretary of state shall provide notice of the assessment in writing pursuant to under section
212. At a minimum, the notice of assessment shall must contain all of the following:
(a) A unique
identification number.
(b) A description
of the alleged violation that is the basis for the assessment, including the
date the alleged violation occurred and a reference to the specific section or
rule alleged to have been violated.
(c) The
administrative fine established for the violation.
(d) A statement
indicating that if the fine is not paid, the secretary of state may refer the
fine to the department of treasury for collection.
(e) A statement
indicating that if the alleged violation is contested, the person has a right
to request an informal conference before an administrative hearing, accompanied
by simple instructions informing the person how to request or waive the
informal conference.
(3) Not later than
20 days after receiving the written notice of assessment, the alleged violator
shall do 1 of the following:
(a) Pay the
administrative fine to the secretary of state. A payment waives the person's
right to an informal conference and an administrative hearing.
(b) Request the
secretary of state to conduct an informal conference.
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(c) Waive the right
to an informal conference and request the secretary of state to conduct an
administrative hearing.
(d) If the person
is not a licensed dealer, pay the administrative fine to the secretary of state
and submit a properly completed dealer license application to the secretary of
state.
(4) A person's
request for an informal conference or an administrative hearing shall must comply
with all of the following:
(a) Be in writing.
(b) Be postmarked
or received by the department within not later than 20 days after the date the person
received the written notice of assessment.
(c) State the name,
address, and telephone number of the person requesting the informal conference
or administrative hearing.
(d) State the
written notice of assessment's unique identification number.
(e) State the
reason for the request.
(f) If the request
is for an administrative hearing without an informal conference, state the
person is waiving his or her the person's right to an informal conference.
(5) If the
secretary of state receives a request for an informal conference or an
administrative hearing that meets all of the conditions prescribed in
subsection (4), the secretary of state shall schedule an informal conference or
an administrative hearing, as applicable. If the request fails to meet all of
the conditions prescribed in subsection (4), the secretary of state may in
writing deny the request. A denial shall must be served on the person by first-class mail and shall do both of the following:
(a) State the
reason for the denial.
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(b) Grant the
person 14 days to submit a valid request to the secretary of state.
(6) The secretary
of state shall conduct an informal conference under this section within not later than 45
days after receiving a valid request for the conference. The secretary of state
shall serve upon on
the alleged violator, by first-class mail not less than 5 days before
the conference, a written notice that includes time, place, and date of the
informal conference. The notice shall must state that the alleged violator may be
represented by an attorney at the informal conference.
(7) After the
informal conference, the secretary of state shall evaluate the validity of the
assessment of the administrative fine and affirm , modify, or dismiss the assessment, or offer the alleged violator an alternative penalty
agreement in lieu of an administrative hearing. In making the
evaluation, the secretary of state may consider 1 or more of the following:
(a) Whether there
is reason to believe the alleged violation did in fact occur.
(b) The severity of
the alleged violation and its impact on the public.
(c) The number of
prior or related violations by the person.
(d) The likelihood
of future compliance by the person.
(e) Any other
considerations the secretary of state considers appropriate.
(8) Within Not later than 20
days after conducting the informal conference, the secretary of state shall
serve upon on the
person by first-class mail a written statement describing whether the
assessment of the administrative fine is affirmed , modified, or dismissed and the basis of the
action. If the assessment is
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affirmed, or modified, this
statement shall must
also advise the person that he or she the person will receive a notice of hearing where the
validity of the assessment may be contested or he
or she the person may immediately pay
the fine to the secretary of state and that payment of the fine will prevent
scheduling of an administrative hearing.
(9) As an alternative to or in addition to administrative action under
this section, the secretary of state may, by written agreement with the alleged
violator, place the alleged violator's license on probation and include
conditions on the probation in the agreement, including, but not limited to,
paying an administrative fine.
(10) (9) A
notice of hearing under this section shall must be served on the person by first-class mail not
less than 5 days before the date scheduled for the administrative hearing and,
at a minimum, advise the person of all of the following:
(a) The time,
place, and date of hearing.
(b) That an
impartial hearing officer will conduct the hearing and allow the person an
opportunity to examine the secretary of state's evidence and present evidence
in person or in writing.
(c) That the person
has a right to be represented by an attorney at the administrative hearing.
(d) The common
reasons why the secretary of state could dismiss an assessment of an
administrative fine.
(e) That the
hearing officer conducting the administrative hearing will be authorized to do
all of the following:
(i) Affirm, modify, or dismiss the
assessment of an administrative fine.
(ii) Correct any errors in the department's
records that relate
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directly
to the assessment.
(iii) Refer or not refer the fine to the
department of treasury for collection.
(iv) Take or order any other action or
resolution considered appropriate by the hearing officer.
(f) That if the
department of treasury takes enforcement action against the person, he or she the person may
seek a review in the court of claims.
(11) (10) The
secretary of state shall conduct an administrative hearing under this section pursuant to under the
contested case provisions of the administrative procedures act of 1969, 1969 PA
306, MCL 24.201 to 24.328. If an administrative fine assessed under this
section is affirmed by the decision of the hearing officer, the hearing officer
may assess the person costs of not more than $500.00, to reimburse the
secretary of state for proving the validity of the alleged violation, in
addition to any other penalties, sanctions, or costs imposed as provided by
law.
(12) (11) An
administrative fine assessed under this section becomes final upon on the first
to occur of the following:
(a) The secretary
of state does not receive a valid request for an informal conference or an
administrative hearing within the time period described in subsection (4).
(b) Twenty days
after a person waives his or her the person's right to an administrative hearing.
(c) The person and the secretary of state sign an agreement that
includes an administrative fine.
(d) (c) An
administrative hearing decision is served upon on the person.
(13) (12) After
a person pays the secretary of state the fine
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imposed,
the secretary of state shall forward the money to the department of treasury
for deposit in a separate fund within the general fund. Upon On appropriation,
this money shall must
be used first to defray the expense of the secretary of state in
administering this chapter.
(14) (13) If
an administrative fine assessed under this section is not paid within not later than 60
days after it becomes final, the secretary of state may refer the matter to the
department of treasury for collection as a state debt through the offset of
state tax refunds and may use the services of the department of treasury to
levy the salary, wages, or other income or assets of the person as provided by
law.
(15) (14) Payment
of an administrative fine assessed under this section does not constitute an
admission of responsibility or guilt by the person. Payment of an
administrative fine assessed under this section does not prevent the secretary
of state from charging a violation described in the assessment of the
administrative fine in a subsequent or concurrent contested case proceeding
conducted by the secretary of state pursuant to the administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(16) (15) If
the person submits a properly completed application and appropriate fee for a
dealer license within not later than 20 days after an administrative fine
under subsection (1) is assessed, and if the secretary of state issues the
person a dealer license within not later than 45 days of
after receiving the properly completed
application and fee, the secretary of state shall reduce the amount of the
administrative fine by 50%.
(17) (16) The
secretary of state shall serve a notice, denial,
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decision,
or statement under this section in compliance with section 212.
(18) (17) An
informal conference under this section is not a compliance conference under
section 92 of the administrative procedures act of 1969, 1969 PA 306, MCL
24.292.
Sec. 249. The secretary of state may deny the
application of a person for a license as a dealer and refuse to issue the
person a license as a dealer, or may suspend or revoke a license already
issued, if the secretary of state finds that 1 or more of the following apply:
(a) The applicant
or licensee has made a false statement of a material fact in his or her the applicant
or licensee's application.
(b) The applicant
or licensee has not complied with the provisions of this chapter or a rule
promulgated under this chapter.
(c) The applicant
or licensee has sold or leased or offered for sale or lease a new vehicle of a
type required to be registered under this act without having authority of a
contract with a manufacturer or distributor of the new vehicle.
(d) The applicant
or licensee has been guilty of committed a fraudulent act in connection with
selling, leasing, or otherwise dealing in vehicles of a type required to be
registered under this act. As used in this
subdivision, "fraudulent act" means a deliberate misrepresentation of
a material fact made with the intent to deceive another person or the secretary
of state that leads the other person or secretary of state to rely on the misrepresentation
to the person's or secretary of state's detriment. To establish a fraudulent
act under this subdivision,
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the secretary of state must establish all
of the following:
(i) The applicant
or licensee made a material representation.
(ii) The
representation was false.
(iii) The applicant
or licensee knew the representation was false or made the representation recklessly
without any knowledge of the potential truth.
(iv) The applicant
or licensee made the representation with the intent that a person or the secretary
of state act on the representation.
(v) The person or
secretary of state acted in reliance on the representation.
(vi) The person or
secretary of state suffered an injury as a result of acting in reliance on the
representation.
(e) The applicant
or licensee has entered into or is about to enter into a contract or agreement
with a manufacturer or distributor of vehicles of a type required to be
registered under this act that is contrary to any provision of this act.
(f) The applicant
or licensee has no established place of business that is used or will be used
for the purpose of selling, leasing, displaying, or offering for sale or lease
or dealing in vehicles of a type required to be registered, and does not have proper
servicing facilities.
(g) The applicant
or licensee is a corporation, or partnership, or
limited liability company, and a stockholder, officer, director, or
partner of the applicant or licensee has been guilty of any act or omission
that would be cause for refusing, revoking, or suspending a license issued to
the stockholder, officer, director, or partner as an individual.
(h) The applicant
or licensee has possessed a vehicle or a
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vehicle
part that has been confiscated under section 415 of the Michigan penal code,
1931 PA 328, MCL 750.415. The secretary of state shall conduct a hearing
pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328, before the secretary of state takes any action under this
subdivision.
(i) The applicant
or licensee has been convicted under section 415 of the Michigan penal code,
1931 PA 328, MCL 750.415.
(j) The applicant
or licensee has been convicted of violating 1986 PA 119, MCL 257.1351 to
257.1355.
(k) The established
place of business of the applicant or licensee is not in compliance with all
applicable zoning requirements and municipal requirements.
(l) The applicant or licensee has engaged in
the business of buying, selling, trading, or exchanging new, used, or
secondhand motor vehicles or has offered to buy, sell, trade, or exchange, or
participate in the negotiation thereof, or attempted to buy, sell, trade, or
exchange any motor vehicle or interest in any motor vehicle or any written
instrument pertaining to a motor vehicle on a Sunday, as prohibited by 1953 PA
66, MCL 435.251 to 435.254.
Sec. 250. (1) If the secretary of state
receives a complaint against a licensee that merits an investigation, the
secretary of state must notify the licensee, and the complaint must be made
available to the licensee at no charge at the time the
state notifies the licensee. Before denying, revoking, suspending, or
refusing to renew a dealer's license the secretary of state shall do all of the
following:
(a) Investigate the
licensee after a complaint in writing of any person has been filed with the
secretary of state.
(b) Provide the licensee with a copy of all documentation,
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including digital records and digital or
audio recordings, the secretary of state collected, examined, or copied as part
of the complaint at least 10 days before the hearing under subdivision (c).
(c) (b) Set
a date for hearing and give the licensee notice of the hearing at least not less than 10
days in advance in the manner herein provided in this section. A matter
shall not proceed to hearing until all documents in subdivision (b) have been
provided to the licensee.
(d) (c) Record
the hearing proceedings.
(e) (d) Enter
a final order with the secretary of state's findings.
(2) A final order
of the secretary of state under subsection (1)(d) (1)(e) is final unless, within
not later than 30 days after notice of such the final order
is mailed by the secretary of state to the person whose application or license
is denied, revoked, suspended, or refused, the
licensee appeals the final order to the circuit court for the county in which
the licensee resides or maintains a place of business or to the circuit court
for the county of Ingham. On appeal, the court shall review both law and facts
as disclosed by the record, and may in its the court's discretion receive newly discovered
evidence, but shall not conduct a hearing de novo. The court may confirm,
modify, or set aside such a final order and make such
any further orders as justice may require.requires.
Sec. 258. (1) The secretary of state may
cancel, revoke, delete, or suspend the
registration of a vehicle, a certificate of title, registration certificate, or
registration plate if any of the following apply:
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(a) The secretary
of state determines that the registration, certificate of title, or plate was
fraudulently or erroneously issued.
(b) The secretary
of state determines that the licensee has made or is making an unlawful use of his or her the registration
certificate, plate, or certificate of title.
(c) A registered
vehicle has been dismantled or wrecked.
(d) The secretary
of state determines that the required fee has not been paid and it is not paid upon on reasonable
notice or demand.
(e) A registration
certificate or registration plate is knowingly displayed upon on a vehicle
other than the one for which it was issued.
(f) The secretary
of state determines that the owner has committed an offense under this act
involving the registration or certificate of title.
(g) The secretary
of state is authorized to do so under this act.
(h) Upon On receiving
notification from another state or foreign country that a certificate of title
issued by the secretary of state has been surrendered by the owner in conformity with under the
laws of that state or foreign country.
(i) It is shown by
satisfactory evidence that delivery of a motor vehicle in the possession of a
dealer was not made to the applicant registered under this act. The money paid
for registration and license fees may be refunded to the party who that applies
for the refund.
(j) The owner is a
motor carrier subject to an out-of-service order. As used in this subdivision,
"out-of-service order" means
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that
term as defined in 49 CFR 390.5, and also includes
an out-of-service order issued under 49 CFR 386.73. A law enforcement officer
may also confiscate a registration plate issued to a motor carrier described in
this subdivision.
(2) If the
licensee's offense consists of hauling on the registered vehicle a gross weight
more than 1,000 pounds in excess of the elected gross weight specified on the
owners' registration certificate, the secretary of
state shall cancel the registration shall be
canceled and the vehicle shall must not again be
operated on the highways, roads, or streets until it is registered again and
new plates are issued. The new registration fee shall
must be computed on the basis of twice
the difference between the original registration fee and the registration fee
applicable to the gross weight constituting the violation of the elected gross
weight. One-half of the new registration fee shall
be is a penalty. The period of the new
registration fee shall must not extend beyond the termination date of the
canceled registration certificate. The new registration fee shall must not
exceed the maximum gross weight of the vehicle or combination of vehicles as
determined by the number of axles and the legal weight applicable to those
axles as specified by section 722. The gross weight of a vehicle or combination
of vehicles may be determined by weighing the individual axles or group of
axles, and the total weight on all axles is the gross vehicle weight.
(3) Before the
secretary of state makes a cancellation under subsection (1)(a), (b), (1)(b), (e),
(f), or (g), the person affected by the cancellation shall must be
given notice and an opportunity to be heard.
Sec. 801b. (1) If a person, through error
either on his or her
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the person's own part or that of the secretary of
state, pays the specific tax required by section 801 or 802 more than once on
the same equipment, the secretary of state, upon on application and satisfactory proof, shall refund
the amount paid in error. A claim shall must be filed within not later than 1 year after the date of payment and
verified by the secretary of state before a refund is made. If an application
for a dealer license provided for in section 248 is withdrawn by the applicant
or the applicant's heir, before issuance of the dealer license, the fees that
accompanied the application under sections 803, 803a, and 807 may be refunded
by the secretary of state upon on application and satisfactory proof.
(2) If a person's
license to drive a motor vehicle is revoked, suspended, or denied for medical
or physical reasons, the person may return the registration plates and obtain a
refund on the plates prorated on a monthly basis for the time period remaining
in the registration year from the date the plates are returned. However, the
refund shall must not
exceed the original registration fee.
(3) Upon On the death
of a spouse, the surviving spouse may return registration plates and obtain a
refund on the plates prorated on a monthly basis for the time period remaining
in the registration year from the date the plates are returned. However, the
refund shall must not
exceed the original registration fee.
(4) The owner of a
registered vehicle who transfers or assigns title or interest in that
registered vehicle before placing upon on the registered vehicle the registration plates or
tabs issued for that registered vehicle may obtain a refund in full from the
secretary of state for the registration plates or tabs.
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Registration
plates , or
tabs issued for 1978 and thereafter shall must be returned by the owner within not later than 30
days following the date of transfer or assignment.
(5) The owner of a vehicle registered pursuant to section
801d(2) who transfers or assigns title or interest in the vehicle may obtain a
refund on the registration for each unused, whole registration period remaining
on the registration from the date the plates are returned and the application
for a refund is made.
(5) (6) In
the case of an original application for registration plates issued under
section 217a or 803b, the secretary of state shall issue a refund prorated on a
monthly basis from the date of application for the time period remaining in the
previously issued registration, if an application for the refund is made and
satisfactory proof is presented to the secretary of state. A refund shall must not be
made if the amount due is less than $5.00.
(6) (7) In
the case of an original application for the registration plates bearing the
letters "SEN" or "REP", the secretary of state shall issue
a refund prorated on a monthly basis from the date of application for the time
period remaining in the previously issued registration.
(7) (8) In
the case of an original application and issuance of an international
registration plan registration plate under section 801g, the secretary of state
shall make a refund as a credit prorated on a monthly basis from the date of
application for the months remaining for the previously issued registration on
the same vehicle, if an application for the refund as a credit is made and
satisfactory proof of eligibility is presented to the secretary of state. A
refund as a credit shall must not exceed the total amount
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of
the Michigan apportioned fees assessed for the plates issued under section 801g
nor be made if the amount due is less than $5.00. For the purpose of this
subsection, a month shall mean means 30 consecutive days and a partial month shall be is considered
as a whole month.
(8) If a
licensed dealer submitted a vehicle title and registration application and paid
a title application fee and vehicle registration fee and the registrant of the
vehicle committed fraud during the registration process, the department shall
issue a refund for the vehicle registration fee to the licensed dealer.
Sec. 806. (1) Until October 1, 2027, an
applicant for a certificate of title required by this act or an applicant for a
duplicate of a certificate of title shall accompany the application with a fee
of $10.00. An applicant that requests that the application be given special
expeditious treatment shall accompany the application with an additional fee of
$5.00. The secretary of state shall collect a $3.00 service fee, in addition to
the other fees collected under this subsection, for each title issued and shall
deposit the fee in the transportation administration collection fund created
under section 810b through October 1, 2027. Until October 1, 2027, the $5.00
expeditious treatment fee must be deposited into the
transportation administration collection fund created under section 810b.
(2) An applicant
for a special identifying number under section 230 shall accompany the
application with a fee of $10.00.
(3) In addition to
paying the fees required by subsection (1), until December 31, 2027, each
person that applies for a certificate of title, a salvage vehicle certificate
of title, or a scrap
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certificate
of title under this act shall pay a tire disposal surcharge of $1.50 for each
certificate of title or duplicate of a certificate of title that person
receives. The secretary of state shall deposit money received under this
subsection into the scrap tire regulatory fund created in section 16908 of the
natural resources and environmental protection act, 1994 PA 451, MCL 324.16908.
(4)
Beginning October 1, 2026, the fees under this section and section 810a do not
apply to a new or used vehicle dealer that acquires ownership of a vehicle that
has a title from this state issued electronically by the secretary of state and
that was not owned by a dealer.
(5)
Beginning October 1, 2026, for an electronic transfer of title, if an applicant
is a new or used vehicle dealer that acquires ownership of a vehicle from
another new or used vehicle dealer, the applicant shall pay a fee of $5.00.
This fee applies only if the selling dealer held an electronic title from this
state. A new or used vehicle dealer that pays the fee under this subsection is
not subject to the fees in subsections (1) to (3) or section 810a. The fee
under this subsection must be deposited into the transportation administration
collection fund created under section 810b.
Sec. 810a. The
Except as otherwise provided in section 806,
the secretary of state shall collect an assessment of 50 cents in
connection with the issuance of a salvage vehicle certificate of title, a
certificate of title, or beginning July 1, 1994 a
scrap certificate of title. The assessment shall must be collected in the same manner and at the same
time as fees collected by the secretary of state pursuant
to under sections 217c and 806. Each
assessment
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collected
shall must be
deposited in a vehicle theft prevention account to be expended for purposes of
developing a vehicle theft prevention program, including the administration,
inspection, and enforcement of antitheft procedures, as described in this act.