Bill Text: MI HB4711 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Trade; vehicles; application of retail installment sales act; exclude nonmotorized recreational vehicles. Amends sec. 2 of 1966 PA 224 (MCL 445.852). TIE BAR WITH: HB 4710'11
Spectrum: Partisan Bill (Republican 10-0)
Status: (Introduced - Dead) 2012-12-05 - Referred To Committee On Finance [HB4711 Detail]
Download: Michigan-2011-HB4711-Engrossed.html
HB-4711, As Passed House, December 5, 2012
HOUSE BILL No. 4711
June 7, 2011, Introduced by Reps. Kurtz, Foster, Daley, Scott, Gilbert, Bumstead, Damrow, Kowall, Huuki and Callton and referred to the Committee on Commerce.
A bill to amend 1966 PA 224, entitled
"Retail installment sales act,"
by amending section 2 (MCL 445.852), as amended by 1995 PA 167.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Cash sale price" means the price of a good or service a
retail buyer would pay if he or she paid for the good or service in
cash, and that is stated in a retail installment contract or in a
sales slip or other memorandum furnished by a retail seller to a
retail buyer pursuant to a retail charge agreement for that good or
service. The cash sale price may include any taxes and charges for
delivery, installation, servicing, repairs, alterations, or
improvements.
(b) (a)
"Goods" means all
tangible chattels purchased
primarily for personal, family, or household use and not for
commercial, agricultural, or business use. Goods include chattels
that are furnished or used for the modernization, rehabilitation,
repair, alteration, improvement, or construction of real property
so
as to in a manner that they become a severable or nonseverable
part of the property, if those chattels are not covered by the home
improvement
finance act, Act No. 332 of the Public Acts of 1965,
being
sections 445.1101 to 445.1431 of the Michigan Compiled Laws
1965 PA 332, MCL 445.1101 to 445.1431. Goods include merchandise
certificates or coupons issued by a retail seller that are not
redeemable in cash and that are to be used in their face amount
instead of cash, in exchange for goods or services sold by the
seller. Goods do not include a motor vehicle, money, a thing in
action, intangible personal property, or their equivalent.
(b)
"Services" means work, labor, advice, counseling, or
instruction
if purchased primarily for personal, family, or
household
use and not for commercial or business use. Services do
not
include any of the following:
(i) Work, labor, advice, counseling, or instruction
for which
the
cost is fixed by law or subject to the approval or disapproval
of
the United States or this state.
(ii) Educational counseling or instruction provided by
an
accredited
college or university or a primary or secondary school
providing
education required by the state.
(iii) Counseling or instruction of a kindergarten or
nursery
school.
(c) "Holder" means a retail seller of goods or services
covered by a retail installment contract or retail charge
agreement, or an assignee of that seller.
(d) (c)
"Motor vehicle" means a
self-propelled device by which
a
person or property may be transported upon a public highway.
Motor
vehicle that term as defined
in section 2 of the motor
vehicle sales finance act, 1950 (Ex Sess) PA 27, MCL 492.102. The
term
does not include any of the
following:
(i) A a
mobile home as that term is defined
in section 719a of
the
Michigan vehicle code, Act No. 300 of the Public Acts of 1949,
being
section 257.719a of the Michigan Compiled Laws 1949 PA 300,
MCL 257.719a.
(ii) Tractors, motorcycles, trailers and semitrailers,
power
shovels,
road machinery, agricultural machinery, and other
machinery
not designed primarily for highway transportation but
which
incidentally transports persons or property on a public
highway.
Motor vehicle also does not include devices that move upon
or
are guided by a track or travel through the air.
(e) "Official fees" means fees prescribed by law and charged
and paid by the seller or holder for filing, recording, or
otherwise perfecting, releasing, or satisfying, a retained title,
lien, or other security interest created by a retail installment
transaction.
(f) "Person" means an individual, partnership, joint venture,
corporation, limited liability company, association, or other legal
entity.
(g) "Principal balance" means the cash sale price of the goods
or services covered by a retail installment contract plus the
amounts, if any, included in the cash sale price if a separate
identified charge is made and stated in the contract for insurance
or official fees, less the amount of the buyer's down payment in
money or goods, or both.
(h) (d)
"Retail buyer" or
"buyer" means a person who that buys
or agrees to buy goods or obtain services or agrees to have
services rendered or furnished from a retail seller.
(e)
"Retail seller" or "seller" means a person regularly and
principally
engaged in the business of selling goods or services to
retail
buyers, but does not include the services of a professional
person
licensed by the state to perform legal or dental services or
medical
services as a medical doctor or a doctor of osteopathy.
(f)
"Retail installment transaction" means any transaction in
which
a retail buyer purchases goods or services from a retail
seller
pursuant to a retail installment contract or a retail charge
agreement
that provides for a time price differential and under
which
the buyer agrees to pay the unpaid balance in 1 or more
installments.
Retail installment transaction does not include a
rental-purchase
agreement as defined in section 2 of the rental-
purchase
agreement act, Act No. 424 of the Public Acts of 1984,
being
section 445.952 of the Michigan Compiled Laws.
(i) "Retail charge agreement" means an instrument prescribing
the terms of a secured or unsecured retail installment transaction
that may be made under the instrument from time to time and under
the terms of which a time price differential is to be computed in
relation to the buyer's unpaid balance from time to time.
(j) (g)
"Retail installment
contract" means an instrument
entered into in this state evidencing a secured or unsecured retail
installment transaction, and includes a chattel mortgage, a
security agreement, a conditional sale contract, or a bailment or
lease contract if the bailment or lease contract requires the
bailee or lessee to pay an amount equal to or greater than the
value of the bailed or leased good, and additionally provides that
the bailee or lessee shall become, for no additional consideration
or
for nominal consideration, the owner of the good upon on full
compliance with the bailment or lease contract. Retail installment
contract does not include any of the following:
(i) A rental-purchase agreement as defined in section 2 of the
rental-purchase
agreement act, Act No. 424 of the Public Acts of
1984
1984 PA 424, MCL 445.952.
(ii) A retail charge agreement.
(iii) An instrument evidencing a sale made pursuant to a retail
charge agreement.
(h)
"Retail charge agreement" means an instrument prescribing
the
terms of a secured or unsecured retail installment transaction
that
may be made under the instrument from time to time and under
the
terms of which a time price differential is to be computed in
relation
to the buyer's unpaid balance from time to time.
(k) "Retail installment transaction" means any transaction in
which a retail buyer purchases goods or services from a retail
seller pursuant to a retail installment contract or a retail charge
agreement that provides for a time price differential and under
which the buyer agrees to pay the unpaid balance in 1 or more
installments. Retail installment transaction does not include a
rental-purchase agreement as defined in section 2 of the rental-
purchase agreement act, 1984 PA 424, MCL 445.952.
(l) "Retail seller" or "seller" means a person regularly and
principally engaged in the business of selling goods or services to
retail buyers, but does not include the services of a professional
person licensed by the state to perform legal or dental services or
medical services as a medical doctor or a doctor of osteopathy.
(m) "Services" means work, labor, advice, counseling, or
instruction if purchased primarily for personal, family, or
household use and not for commercial or business use. Services do
not include any of the following:
(i) Work, labor, advice, counseling, or instruction for which
the cost is fixed by law or subject to the approval or disapproval
of the United States or this state.
(ii) Educational counseling or instruction provided by an
accredited college or university or a primary or secondary school
providing education required by the state.
(iii) Counseling or instruction of a kindergarten or nursery
school.
(n) (i)
"Time price differential"
means the amount a buyer
pays or is required to pay for the privilege of purchasing goods or
services in installments over a period of time. Time price
differential does not include the amount, if any, charged for
insurance premiums, delinquency charges, attorney fees, court
costs, or official fees, but does include all other charges
included in a finance charge as that term is defined in section 106
of
chapter I of the truth in lending act, title I of the consumer
credit
protection act, Public Law 90-321, 15
U.S.C. USC 1605.
(j)
"Cash sale price" means the price of a good or service a
retail
buyer would pay if he or she paid for the good or service in
cash,
and that is stated in a retail installment contract or in a
sales
slip or other memorandum furnished by a retail seller to a
retail
buyer pursuant to a retail charge agreement for that good or
service.
The cash sale price may include any taxes and charges for
delivery,
installation, servicing, repairs, alterations, or
improvements.
(k)
"Official fees" means fees prescribed by law and charged
and
paid by the seller or holder for filing, recording, or
otherwise
perfecting, releasing, or satisfying, a retained title,
lien,
or other security interest created by a retail installment
transaction.
(o) (l) "Time
sale price" means the cash sale price of goods or
services and the amount, if any, included for official fees, the
time price differential, and, if a separate identified charge is
made, for insurance.
(m)
"Principal balance" means the cash sale price of the goods
or
services covered by a retail installment contract plus the
amounts,
if any, included in the cash sale price if a separate
identified
charge is made and stated in the contract for insurance
or
official fees, less the amount of the buyer's down payment in
money
or goods, or both.
(n)
"Holder" means the retail seller of goods or services
covered
by a retail installment contract or retail charge
agreement,
or his or her assignee.
(o)
"Person" means an individual, partnership, joint venture,
corporation,
association, or other legal entity.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4710(request no.
01200'11) of the 96th Legislature is enacted into law.