Bill Text: MI HB4900 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Vehicles; registration; original or renewal registration; allow for immediate family members to renew under certain circumstances. Amends secs. 217 & 227 of 1949 PA 300 (MCL 257.217 & 257.227).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-09-07 - Bill Electronically Reproduced 09/06/2017 [HB4900 Detail]

Download: Michigan-2017-HB4900-Introduced.html

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HOUSE BILL No. 4900

 

 

September 6, 2017, Introduced by Rep. Kosowski and referred to the Committee on Transportation and Infrastructure.

 

     A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending sections 217 and 227 (MCL 257.217 and 257.227), section

 

217 as amended by 2014 PA 290 and section 227 as amended by 2011 PA

 

92.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 217. (1) An Except as provided in subsection (11), an

 

owner of a vehicle that is subject to registration under this act

 

shall must apply to the secretary of state, upon 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 The secretary of state must issue a rebuilt, salvage, scrap, or

 

flood certificate of title for 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. shall be issued a rebuilt, salvage,

 

scrap, or flood certificate of title by the secretary of state. The

 

application shall be accompanied by the required fee. An

 

application for a certificate of title shall bear the signature or

 

verification and certification of the owner. The application shall

 

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;

 

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; 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 shall 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 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 shall be in an amount equal to twice the value

 

of the vehicle as determined by the secretary of state and shall be

 

conditioned to indemnify or reimburse the secretary of state, any

 

prior owner, and any subsequent purchaser or lessee of the vehicle

 

and their successors in interest against any expense, loss, or

 

damage, including reasonable attorney's fees, by reason 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 shall 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

 

less and that is 10 years old or older, the secretary of state

 

shall must 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 shall 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 shall 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

 

application shall include the manufacturer's suggested base list

 

price for the model year of the vehicle. The base list price shall

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 shall list the purchase price of the vehicle 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 must 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 must maintain the information

 

described in subsection (2) on the secretary of state's computer

 

records.

 

     (4) Except as provided in subsection (5), a dealer selling,

 

leasing, or exchanging vehicles required to be titled, within 15

 

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 protection act,

 

1994 PA 451, MCL 324.80101 to 324.80199, within 15 days after

delivering a boat trailer weighing less than 2,500 pounds to the

 

purchaser or lessee, shall must 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. 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 15 days required by this section. 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 15 days of delivery

 

of the vehicle or boat trailer, a title and registration for the

 

vehicle or boat trailer may subsequently be acquired only upon the

 

payment of a late transfer fee of $15.00 for an individual or a

 

dealer other than a dealer subject to section 235b in addition to

 

the fees specified in section 806. 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

 

must 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 must mail or deliver the certificate of title to

the purchaser not more 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

 

title to the owner of a vehicle or lienholder if the title is

 

subject to a security interest.

 

     (5) A dealer selling or exchanging an off lease or buy back

 

vehicle shall must apply to the secretary of state for a new title

 

for the vehicle within 15 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. 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 15-day period. 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 15-day time

 

period, the dealer or person may acquire a title and registration

 

for the vehicle may subsequently be acquired only upon the payment

 

of a late transfer fee of $15.00 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. 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 vehicle shall must 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 must mail or

 

deliver the certificate of title to the purchaser not more 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 title to the owner of a vehicle if

 

the title is subject to a security interest.

 

     (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 shall

 

be affixed to the vehicle immediately, and the dealer shall must

 

provide the purchaser or lessee with an instrument in writing, on a

 

form prescribed by the secretary of state, which shall serve as a

 

temporary registration for the vehicle for a period of 15 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 must pay the

 

seller a service fee of not more than $10.00. The service fee shall

 

be paid from the finance charges and shall not be charged to the

buyer in addition to the finance charges. The holder, finance

 

company, credit union, or banking institution shall must issue its

 

check or bank draft for the principal amount financed, payable

 

jointly to the buyer and seller, and there the back side of the

 

check or bank draft shall be imprinted on the back side of the

 

check or bank draft with the following:

 

     "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 must 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 shall 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 his or her cause of action.

 

     (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 lien creditor is defined in

 

section 9102 of the uniform commercial code, 1962 PA 174, MCL

 

440.9102.

 

     (11) An immediate family member may make application for an

 

original vehicle registration on behalf of the owner if all other

 

requirements for obtaining an original vehicle registration under

 

this section are satisfied.

 

     Sec. 227. (1) Application Except as provided in this

 

subsection, application for renewal of a vehicle registration shall

 

must be made by the owner upon proper application and by payment of

 

the registration fee for the vehicle, as provided by law. An

 

immediate family member may make application for renewal of a

 

vehicle registration on behalf of the owner if all other

 

requirements for renewal under this section are satisfied.

 

     (2) Every application shall be accompanied by the certificate

 

of title pertaining to the vehicle, showing ownership in the person

 

applying for registration at the time of the application or

 

ownership in the person on whose behalf the person is applying for

registration, if applicable. The secretary of state may waive the

 

presentation of the certificate of title.

 

     (3) Every application for renewal of a motor vehicle

 

registration shall be accompanied by proof of vehicle insurance in

 

a form determined by the secretary of state.

 

     (4) Notwithstanding subsection (3), the secretary of state

 

shall accept as proof of vehicle insurance a transmission of the

 

applicant's vehicle policy information for an insured vehicle for

 

which vehicle registration is sought. The secretary of state may

 

determine in what format and on what timeline the secretary of

 

state will receive vehicle policy information, which shall not be

 

required more frequently than every 14 days. In determining the

 

format under this subsection, the secretary of state shall consult

 

with insurers. The transmission to the secretary of state of the

 

vehicle policy information is proof of insurance to the secretary

 

of state for motor vehicle registration purposes only and is not

 

evidence that a policy of insurance actually exists between an

 

insurer and an individual. Vehicle policy information submitted by

 

an insurer and received by the secretary of state under this

 

subsection is confidential, is not subject to the freedom of

 

information act, 1976 PA 442, MCL 15.231 to 15.246, and shall not

 

be disclosed to any person except the department of community

 

health and human services for purposes of 2006 PA 593, MCL 550.281

 

to 550.289, or under an order by a court of competent jurisdiction

 

in connection with a claim or fraud investigation or prosecution.

 

     (5) (6) As used in this section, "policy information" means

 

the information an automobile insurer is required to supply to the

secretary of state under section 3101a of the insurance code of

 

1956, 1956 PA 218, MCL 500.3101a.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.