Bill Text: MI HB5181 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Vehicles; abandoned; recovery procedures for abandoned vehicles; modify. Amends secs. 252a, 252f & 252g of 1949 PA 300 (MCL 257.252a et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-10-17 - Assigned Pa 347'18 With Immediate Effect [HB5181 Detail]
Download: Michigan-2017-HB5181-Introduced.html
HOUSE BILL No. 5181
October 25, 2017, Introduced by Rep. Farrington and referred to the Committee on Financial Services.
A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
by amending sections 252a, 252f, and 252g (MCL 257.252a, 257.252f,
and 257.252g), section 252a as amended by 2015 PA 48, section 252f
as amended by 2008 PA 539, and section 252g as amended by 2012 PA
498.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 252a. (1) A person shall not abandon a vehicle in this
state. It is presumed that the last titled owner of the vehicle is
responsible for abandoning the vehicle unless the person provides a
record of the sale as that term is defined in section 240. A person
who violates this subsection and who fails to redeem the vehicle
before disposition of the vehicle under section 252g is responsible
for a civil infraction and shall be ordered to pay a civil fine of
$50.00.
(2) As used in this section and sections 252b through 252l,
"abandoned vehicle" means any of the following:
(a) A vehicle that has remained on private property without
the consent of the owner.
(b) A vehicle that has remained on public property for a
period of not less than 48 hours, or on a state trunk line highway
as described in section 1 of 1951 PA 51, MCL 247.651, as follows:
(i) If a valid registration plate is affixed to the vehicle,
for a period of not less than 18 hours.
(ii) If a valid registration plate is not affixed to the
vehicle.
(c) A vehicle, other than a late-model vehicle, to which all
of the following apply:
(i) An insurance company has not acquired ownership of the
vehicle under section 217c.
(ii) The vehicle cannot be disposed of under section 248c.
(iii) The vehicle has remained in the custody of a vehicle
salvage pool or broker site without the consent of the vehicle
salvage pool operator or the broker for a period of not less than
60 days.
(3) If a vehicle has remained on public property for the
period of time described in subsection (2)(b) so that it qualifies
as abandoned, a police agency having jurisdiction over the vehicle
or the agency's designee shall determine whether the vehicle has
been reported stolen and may affix a written notice to the vehicle.
The written notice shall contain the following information:
(a) The date and time the notice was affixed.
(b) The name and address of the police agency taking the
action.
(c) The name and badge number of the police officer affixing
the notice.
(d) The date and time the vehicle may be taken into custody
and stored at the owner's expense or scrapped if the vehicle is not
removed.
(e) The year, make, and vehicle identification number of the
vehicle, if available.
(4) If the vehicle is an abandoned vehicle, the police agency
or the agency's designee may have the towing agency take the
vehicle into custody.
(5) A police agency that has received a vehicle taken into
custody as abandoned shall do all of the following:
(a) Recheck to determine if the vehicle has been reported
stolen.
(b) Within 24 hours after the vehicle is taken into custody,
enter the vehicle as abandoned into the law enforcement information
network, and notify the secretary of state through the law
enforcement information network that the vehicle has been taken
into custody as abandoned. Each notification shall contain the
following information:
(i) The year, make, and vehicle identification number of the
vehicle, if available.
(ii) The address or approximate location from which the
vehicle was taken into custody.
(iii) The date on which the vehicle was taken into custody.
(iv) The name and address of the police agency that had the
vehicle taken into custody.
(v) The name and business address of the custodian of the
vehicle.
(vi) The name of the court that has jurisdiction over the
case.
(c) Within 7 days after receiving notice under subdivision (b)
that the vehicle has been taken into custody, the secretary of
state shall do both of the following:
(i) Send to the last titled owner and secured party, as shown
by the records of the secretary of state as described in section
221 or 237, by first-class mail or personal service, notice that
the vehicle is considered abandoned. The form for the notice shall
be furnished by the secretary of state. Each notice form shall
contain the following information:
(A) The year, make, and vehicle identification number of the
vehicle if available.
(B) The address or approximate location from which the vehicle
was taken into custody.
(C) The date on which the vehicle was taken into custody.
(D) The name and address of the police agency that had the
vehicle taken into custody.
(E) The name and business address of the custodian of the
vehicle.
(F) The procedure to redeem the vehicle.
(G) The procedure to contest the fact that the vehicle is
considered abandoned or the reasonableness of the towing fees and
daily storage fees.
(H) A form petition that the owner may file in person or by
mail with the specified court that requests a hearing on the police
agency's action.
(I) A warning that the failure to redeem the vehicle or to
request a hearing within 20 days after the date of the notice may
result in the sale of the vehicle and the termination of all rights
of the owner and the secured party to the vehicle or the proceeds
of the sale.
(ii) Enter the information described in subparagraph (i) on a
website maintained by the department for public use in locating
vehicles that are removed under this section as abandoned. The
department shall maintain the data on the website for 1 year or 1
until the vehicle is disposed of under this act, whichever occurs
first.
(6) The owner may contest the fact that the vehicle is
considered abandoned or the reasonableness of the towing fees and
daily storage fees by requesting a hearing and posting a bond equal
to $40.00 plus the amount of the accrued towing and storage fees. A
request for a hearing shall be made by filing a petition with the
court specified in the notice described in subsection (5)(c) within
20
days after the date of the notice. If Subject to subsection (8),
if the owner requests a hearing, the matter shall be resolved after
a hearing conducted under sections 252e and 252f. An owner who
requests a hearing may obtain release of the vehicle by posting a
towing and storage bond in an amount equal to the $40.00 plus the
accrued towing and storage fees with the court. The owner of a
vehicle who requests a hearing may obtain release of the vehicle by
paying a fee of $40.00 to the court and the accrued towing and
storage fees instead of posting the towing and storage bond.
(7)
If Subject to subsection
(9), if the owner does not
request a hearing under subsection (6), he or she may obtain the
release of the vehicle by paying a fee of $40.00 and the accrued
towing and storage fees to the custodian of the vehicle. The
custodian of the vehicle shall forward $25.00 of the fee to the
secretary of state within 30 days after receipt in a manner
prescribed by the secretary of state, who shall deposit the fee
into the abandoned vehicle fund created in section 252h.
(8) The secured party may contest the reasonableness of the
towing fees and daily storage fees and request a hearing in the
same manner and subject to the same requirements as the owner under
subsection (6). If both the owner and the secured party request a
hearing to contest the reasonableness of the towing fees and daily
storage fees within 20 days after the date of the notice, the court
shall dismiss the secured party's petition and proceed with the
owner's petition as provided in subsection (6), unless the owner is
in default on a contract or agreement with the secured party
regarding that vehicle. If the owner is in default on a contract or
agreement with the secured party regarding that vehicle, the court
shall dismiss the owner's petition and proceed with the secured
party's petition in the same manner as provided in subsection (6).
(9) (8)
If the owner secured party does not redeem the vehicle
or
request a hearing within 20 days
after the date of the notice
described in subsection (5)(c), the secured party may obtain the
release of the vehicle by paying a $40.00 fee plus the accrued
charges to the custodian of the vehicle. The custodian of the
vehicle shall forward $25.00 of the fee to the secretary of state,
who shall deposit the fee into the abandoned vehicle fund created
in section 252h. If the owner also seeks to obtain the release of
the vehicle as provided in subsection (7), the custodian shall
release the vehicle to the owner upon payment of the required fees.
The custodian is not liable to an owner or a secured party for the
release of a vehicle under this subsection.
(10) (9)
If a vehicle has remained on
private property without
the consent of the property owner, the owner of the private
property may have the vehicle taken into custody as an abandoned
vehicle by contacting a local towing agency. A local towing agency
is considered a towing agency whose storage lot is located within
15 miles from the border of the local unit of government having
jurisdiction over the abandoned vehicle.
(11) (10)
Before removing the vehicle from
private property,
the towing agency shall provide reasonable notice by telephone, or
otherwise, to a police agency having jurisdiction over the vehicle
that the vehicle is being removed. The police agency shall
determine if the vehicle has been reported stolen and enter the
vehicle into the law enforcement information network as an
abandoned vehicle. Verification by the police agency of compliance
with this section is not necessary and is not a predicate to the
entrance of the vehicle into the law enforcement information
network.
(12) (11)
Within 24 hours after taking the
abandoned vehicle
into custody, the police agency shall notify the secretary of state
through the law enforcement information network that the vehicle
has been taken into custody as abandoned. Each notification shall
contain the following information:
(a) The year, make, and vehicle identification number of the
vehicle if available.
(b) The address or approximate location from which the vehicle
was taken into custody.
(c) The date on which the vehicle was taken into custody.
(d) The name and address of the police agency that had the
vehicle taken into custody.
(e) The name and business address of the custodian of the
vehicle.
(f) The name of the court that has jurisdiction over the case.
(13) (12)
Within 7 days after being notified
under subsection
(11),
(12), the secretary of state shall do both of the
following:
(a) Send to the owner and secured party, as shown by the
records of the secretary of state, by first-class mail or personal
service, notice that the vehicle is considered abandoned. The form
for the notice shall be furnished by the secretary of state. Each
notice form shall contain the following information:
(i) The year, make, and vehicle identification number of the
vehicle if available.
(ii) The location from which the vehicle was taken into
custody.
(iii) The date on which the vehicle was taken into custody.
(iv) The name of the towing agency that had the vehicle taken
into custody.
(v) The business address of the custodian of the vehicle.
(vi) The procedure to redeem the vehicle.
(vii) The procedure to contest the fact that the vehicle is
considered abandoned or the reasonableness of the towing fees and
daily storage fees.
(viii) A form petition that the owner may file in person or by
mail with the specified court that requests a hearing on the
custodian's action.
(ix) A warning that the failure to redeem the vehicle or to
request a hearing within 20 days after the date of the notice may
result in the sale of the vehicle and the termination of all rights
of the owner and the secured party to the vehicle or the proceeds
of the sale.
(b) Enter the information described in subdivision (a) on a
website maintained by the department for public use in locating
vehicles that are removed under this section as abandoned.
(14) (13)
The owner may contest the fact that
the vehicle is
abandoned or, unless the towing fees and daily storage fees are
established by contract with the local governmental unit or local
law enforcement agency and comply with section 252i, the
reasonableness of the towing fees and daily storage fees by
requesting a hearing. A request for a hearing shall be made by
filing a petition with the court specified in the notice within 20
days
after the date of the notice. If Subject to subsection (16),
if the owner requests a hearing, the matter shall be resolved after
a hearing conducted under section 252f. An owner who requests a
hearing may obtain release of the vehicle by posting with the court
a towing and storage bond in an amount equal to $40.00 plus the
accrued towing and storage fees. The owner of a vehicle who
requests a hearing may obtain release of the vehicle by paying a
fee of $40.00 to the court plus the towing and storage fees instead
of posting the towing and storage bond. An owner requesting a
hearing but not taking possession of the vehicle shall post with
the court a towing and storage bond in an amount equal to $40.00
plus the accrued towing and storage fees.
(15) (14)
If Subject to subsection
(17), if the owner does not
request a hearing, he or she may obtain the release of the vehicle
by paying a fee of $40.00 plus the accrued charges to the custodian
of the vehicle. The custodian shall forward $25.00 of the fee
collected under this subsection to the secretary of state within 30
days after receipt in a manner prescribed by the secretary of
state, who shall deposit the fee into the abandoned vehicle fund
created in section 252h.
(16) The secured party may contest the reasonableness of the
towing fees and daily storage fees and request a hearing in the
same manner and subject to the same requirements as the owner under
subsection (14). If both the owner and the secured party request a
hearing to contest the reasonableness of the towing fees and daily
storage fees within 20 days after the date of the notice, the court
shall dismiss the secured party's petition and proceed with the
owner's petition as provided in subsection (14), unless the owner
is in default on a contract or agreement with the secured party
regarding that vehicle. If the owner is in default on a contract or
agreement with the secured party regarding that vehicle, the court
shall dismiss the owner's petition and proceed with the secured
party's petition in the same manner as provided in subsection (14).
(17) (15)
If the owner secured party does not redeem the
vehicle
or request a hearing within 20 days
after the date of the
notice, the secured party may obtain the release of the vehicle by
paying a fee of $40.00 and the accrued towing and storage fees to
the custodian of the vehicle. The custodian shall forward $25.00 of
the fee collected under this subsection to the secretary of state
within 30 days after receipt in a manner prescribed by the
secretary of state, who shall deposit the fee into the abandoned
vehicle fund created in section 252h. If the owner also seeks to
obtain the release of the vehicle as provided in subsection (15),
the custodian shall release the vehicle to the owner upon payment
of the required fees. The custodian is not liable to an owner or a
secured party for the release of a vehicle under this subsection.
(18) (16)
Not less than 20 days after the
disposition of the
hearing described in subsection (6) or, if a hearing is not
requested, not less than 20 days after the date of the notice, the
police agency if the abandoned vehicle is found on public property,
or the custodian of the vehicle if the vehicle is found on private
property, shall offer the vehicle for sale at a public sale under
section 252g.
(19) (17)
If the ownership of a vehicle that
is considered
abandoned under this section cannot be determined either because of
the condition of the vehicle identification numbers or because a
check with the records of the secretary of state as described in
section 221 or 237 does not reveal ownership, the police agency may
sell the vehicle at public sale as provided in section 252g not
less than 30 days after public notice of the sale has been
published.
(20) (18)
The secretary of state shall
release a vehicle for
disposition under section 252b or 252g within 45 days after the
vehicle is entered into the law enforcement information network as
an abandoned vehicle.
Sec. 252f. (1) Upon the filing of a petition prescribed in
section 252a, 252b, or 252d, signed by the owner of the vehicle
which
that has been taken into custody, or, upon the filing of a
petition prescribed in section 252a signed by the secured party
regarding a vehicle that has been taken into custody, the court
shall do both of the following:
(a) Schedule a hearing within 30 days for the purpose of
determining whether the police agency, towing agency or custodian,
or private property owner acted properly.
(b) Notify the owner or the secured party, as applicable,
towing agency or custodian, and police agency or if the vehicle was
removed from private property, notify the private property owner
also of the time and place of the hearing.
(2) At the hearing specified in subsection (1), the police
agency, towing agency or custodian, or, if the vehicle was removed
from private property, the private property owner shall have the
burden of showing by a preponderance of the evidence that it has
complied with the requirements of this act in reporting or
processing the abandoned vehicle or vehicle removed under section
252d.
(3) After the hearing, the court shall make a decision that
includes 1 or more of the following:
(a) A finding that the police agency complied with the
procedures established for the processing of an abandoned vehicle
or a vehicle removed under section 252a, 252b, or 252d, and an
order providing a period of 20 days after the decision for the
owner or the secured party, if applicable, to redeem the vehicle.
If the owner or the secured party does not redeem the vehicle
within 20 days, the police agency shall dispose of the vehicle
under section 252b or 252g. The court shall forward $25.00 of the
fee collected under section 252b or 252g to the secretary of state
within 30 days after the court's decision in a manner prescribed by
the secretary of state. The towing and storage fees and $15.00 of
the fee collected under section 252b or 252g shall be forwarded to
the towing agency.
(b) A finding that the police agency did not comply with the
procedures established for the processing of an abandoned vehicle
or a vehicle removed under section 252a, 252b, or 252d. After
making the finding, the court shall issue an order directing that
the vehicle immediately be released to the owner or the secured
party, if applicable, and that the police agency is responsible for
the accrued towing and storage charges. The court shall also order
any fee or bond posted by the owner to be returned to the owner.
(c) A finding that the towing fees and daily storage fees were
reasonable.
(d) A finding that the towing fees and daily storage fees were
unreasonable and issue an order directing the towing agency or
custodian of the vehicle to provide the last titled owner of the
vehicle or the secured party, if applicable, with an appropriate
reduction or refund.
(e) A finding that the owner of the real property complied
with the provisions of section 252k or 252l.
(f) A finding that the owner of the real property did not
comply with the provisions of section 252k or 252l, and issue an
order requiring the owner of the real property to reimburse the
last titled owner of the vehicle or the secured party, if
applicable, for the accrued towing and storage charges.
(g) A finding that the towing agency did not comply with the
procedures established for the proper removal and reporting of an
abandoned
vehicle removed under section 252a(10), 252a(11), 252b,
or 252d. After making the finding, the court shall issue an order
directing that the vehicle immediately be released to the owner or
the secured party, if applicable, and that the towing agency is
responsible for the accrued towing and storage charges. The court
shall also order any fee or bond posted by the owner to be returned
to the owner.
(h) A finding that the towing agency did comply with the
procedures established for the proper removal and reporting of an
abandoned
vehicle removed under section 252a(10), 252a(11), 252b,
or 252d.
Sec.
252g. (1) Subject to section 252a(16), 252a(18), a public
sale for a vehicle and its contents that has been determined to be
abandoned under section 252a or removed under section 252d shall be
conducted in the following manner:
(a) It shall be under the control of the police agency.
However, a police agency may designate the custodian of the vehicle
or a third party to conduct the auction.
(b) It shall be open to the public and consist of open auction
bidding or bidding by sealed bids. If sealed bids are received, the
person submitting the bid shall receive a receipt for the bid from
the police agency or the agency's designee or, if the vehicle is
being
sold under section 252a(16), 252a(18),
the custodian of the
vehicle.
(c)
Except as otherwise provided in sections 252a(16) 252a(18)
and
(17) (19) and 252b(7), it shall be held not less than 5 days
after public notice of the sale has been published.
(d) The public notice shall be published at least once in a
newspaper having a general circulation within the county in which
the vehicle was abandoned. The public notice shall give a
description of the vehicle for sale and shall state the time, date,
and location of the sale.
(2) The money received from the public sale of the vehicle
shall be applied in the following order of priority:
(a) Accrued towing and storage charges. However, if the money
received from the public sale does not satisfy the accrued towing
and storage charges, the towing company may collect the balance of
those unpaid fees from the last titled owner, subject to section
252i.
(b) Expenses incurred by the police agency or the custodian of
the vehicle.
(c) Payment of the $40.00 abandoned vehicle fee described in
section 252f(3)(a).
(d) Any extra money shall be sent to the department of
treasury's unclaimed property division to be disbursed as follows:
(i) To the secured party, if any, in the amount of the debt
outstanding on the vehicle.
(ii) Remainder to the owner. A reasonable attempt shall be
made to mail the remainder to the last titled owner. If delivery of
the remainder cannot be accomplished, the remainder shall become
the property of the unit of government governing the location from
which the vehicle was towed.
(3) If there are no bidders on the vehicle, the police agency
or the custodian of the vehicle may do 1 of the following:
(a) Turn the vehicle over to the towing firm or the custodian
of the vehicle to satisfy charges against the vehicle. However, if
the value of the vehicle does not satisfy the towing fees and
accrued daily storage fees, the custodian of the vehicle may
collect the balance of those unpaid fees from the last titled
owner, subject to section 252i.
(b) Obtain title to the vehicle for the police agency or the
unit of government the police agency represents, by doing the
following:
(i) Paying the towing and storage charges.
(ii) Applying for title to the vehicle.
(c) Hold another public sale under subsection (1).
(4) A person who acquires ownership of a vehicle under
subsection (1) or (3) that has been designated as a distressed
vehicle shall apply for a salvage certificate of title within 15
days after obtaining the vehicle.
(5) Upon disposition of the vehicle, the police agency or
towing agency or custodian shall provide the secretary of state and
the police agency, if that police agency did not conduct the sale,
with the vehicle's disposition and the name of the agency that
disposed of it and the police agency shall cancel the entry in the
law enforcement information network.
(6) Not less than 25 days after the date of notice required
under section 252a, if the police agency does not provide a copy of
the bill of sale by the police agency for the abandoned vehicle to
the towing agency or custodian or police agency's designee, the
towing agency or custodian or police agency designee may obtain an
original of the bill of sale by submitting an application to the
secretary of state in a form as determined by the secretary of
state.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
