Bill Text: MI SB0366 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Records; public; solicitation of a fee for providing a copy of a deed; regulate. Creates new act.
Spectrum: Bipartisan Bill
Status: (Passed) 2016-04-13 - Assigned Pa 0079'16 With Immediate Effect [SB0366 Detail]
Download: Michigan-2015-SB0366-Engrossed.html
SB-0366, As Passed House, March 16, 2016
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 366
A bill to regulate the solicitation of certain deeds; to
prescribe the powers and duties of certain state agencies and
officials; and to prescribe penalties and provide remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"solicitation of deeds act".
Sec. 2. As used in this act:
(a) "Deed" means a written instrument entitled to be recorded
in the office of the register of deeds that purports to convey or
transfer title to a freehold interest in any lands, tenements, or
other realty in this state by way of grant or bargain and sale from
the named grantor to the named grantee. A leasehold interest for 99
years or more or a proprietary lease of a cooperative unit and any
assignment of a proprietary lease of a cooperative unit shall be
treated as a "freehold". Deed does not include instruments
providing for any of the following:
(i) Common driveways.
(ii) Exchanges of easements or rights-of-way.
(iii) Revocable licenses to use, adjust, or clear defects of
or clouds on title.
(iv) Utility service lines such as drainage, sewerage, water,
electric, telephone, or other such service lines.
(v) Quitclaim of possible outstanding interests.
(b) "Department" means the department of attorney general.
(c) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
(d) "Public body" means that term as it is defined in section
2 of the freedom of information act, 1976 PA 442, MCL 15.232.
(e) "Rule" means a rule promulgated pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(f) "Solicit" means to advertise or market to a person with
whom the solicitor has no preexisting business relationship.
Sec. 3. (1) A person soliciting a fee for providing a copy of
a deed or a free copy of a deed in connection with the solicitation
for any other service or product shall state on the top of the
document used for the solicitation, in at least 24-point type, all
of the following:
(a) That the solicitation is not from a public body.
(b) That no action is legally required by the person being
solicited.
(c) The statutory fee for, or the cost of, obtaining a copy of
the deed from the public body that has custody of the record.
(d) The information necessary to contact the public body that
has custody of the deed.
(e) The name and physical address of the person soliciting the
fee.
(2) The document used for a solicitation under this section
shall not be in a form or use deadline dates or other language that
makes the document appear to be a document issued by a public body
or that appears to impose a legal duty on the person being
solicited. The department may promulgate rules specifying the
contents and form of the solicitation document.
(3) A person soliciting a fee for providing a copy of a deed
shall not charge a fee of more than 4 times the statutory fee
charged by the public body that has custody of the deed for a copy
of that deed.
(4) A person soliciting a fee from property owners for
providing a copy of a deed shall furnish the office of the register
of deeds of each county where the solicitations are to be
distributed with a copy of the document that will be used for those
solicitations not less than 15 days before distributing the
solicitations.
Sec. 4. This act does not apply to any of the following:
(a) A title insurance company authorized to do business in
this state or its authorized agent.
(b) A licensed mortgage loan originator, mortgage broker,
lender, or servicer, or a depository financial institution
authorized under state and federal law to originate or service
mortgage loans.
(c) A real estate broker or salesperson licensed under article
25 of the occupational code, 1980 PA 299, MCL 339.2501 to 339.2518.
Sec. 5. The department may investigate violations of this act.
The department may request the attorney general to bring an action
against any person that violates this act. The court may order a
person that violates this act to refund all of the money paid to
the violator with respect to the solicitation. In addition, the
person may be ordered to pay, for a first violation, a civil fine
of not more than $100.00 for each solicitation document distributed
in violation of this act or, for a subsequent violation, a civil
fine of not more than $200.00 for each solicitation document
distributed in violation of this act. A fine collected under this
section shall be paid to the clerk of court. A civil fine collected
under this section shall be distributed to public libraries in the
same manner as provided for penal fines under 1964 PA 59, MCL
397.31 to 397.40.
Sec. 6. (1) If the attorney general has probable cause to
believe that a person has engaged, is engaging, or is about to
engage in a method, act, or practice that is unlawful under this
act, and gives notice in accordance with this section, the attorney
general may bring an action in accordance with principles of equity
to restrain the defendant by temporary or permanent injunction from
engaging in the method, act, or practice. The action may be brought
in the circuit court of the county where the defendant is
established or conducts business or, if the defendant is not
established in this state, in the circuit court of Ingham County.
(2) Unless waived by the court on good cause shown not less
than 10 days before the commencement of an action under this
section, the attorney general shall notify the person of his or her
intended action and give the person an opportunity to cease and
desist from the alleged unlawful method, act, or practice or to
confer with the attorney general, in person, by counsel, or by
other representative as to the proposed action before the proposed
filing date. The notice may be given the person by mail, postage
prepaid, to his or her usual place of business or, if the person
does not have a usual place of business, to his or her last known
address, or, if the person is a corporation, only to a resident
agent who is designated to receive service of process or to an
officer of the corporation.
(3) A person that knowingly violates the terms of an
injunction, order, decree, or judgment issued pursuant to this
section shall forfeit and pay to the state a civil fine of not more
than $5,000.00 for each violation. For the purposes of this
section, the court issuing an injunction, order, decree, or
judgment shall retain jurisdiction, the cause shall be continued,
and the attorney general may petition for recovery of a civil fine
as provided by this section.
Sec. 7. (1) Upon the ex parte application of the attorney
general to the circuit court in the county where the defendant is
established or conducts business or, if the defendant is not
established in this state, in Ingham County, the circuit court, if
it finds probable cause to believe a person has engaged, is
engaging, or is about to engage in a method, act, or practice that
is unlawful under this act, may, after an ex parte hearing, issue a
subpoena compelling a person to appear before the attorney general
and answer under oath questions relating to an alleged violation of
this act. A person served with a subpoena may be accompanied by
counsel when he or she appears before the attorney general. The
subpoena may compel a person to produce the books, records, papers,
documents, or things relating to an alleged violation of this act.
During the examination of documentary material under the subpoena,
the court may require a person having knowledge of the documentary
material or the matters contained therein to attend and give
testimony under oath or acknowledgment with respect to the
documentary material.
(2) The subpoena shall include the notice of the time, place,
and cause of the taking of testimony, the examination, or the
attendance and shall allow not less than 10 days before the date of
the taking of testimony or examination, unless for good cause shown
the court shortens that period of time.
(3) Service of the notice shall be in the manner provided and
subject to the provisions that apply to service of process upon a
defendant in a civil action commenced in the circuit court.
(4) The notice shall do all of the following:
(a) State the time and place for the taking of testimony or
the examination and the name and address of the person to be
examined. If the name is not known, the notice shall give a general
description sufficient to identify the person or the particular
class or group to which the person belongs.
(b) State a reference to this section and the general subject
matter under investigation.
(c) Describe the documentary material to be produced with
reasonable specificity so as to indicate fairly the material
demanded.
(d) Prescribe a return date within which the documentary
material shall be produced.
(e) Identify the members of the attorney general's staff to
whom the documentary material shall be made available for
inspection and copying.
(5) At any time before the date specified in the notice, upon
motion for good cause shown, the court may extend the reporting
date or modify or set aside the notice and subpoena.
(6) The documentary material or other information obtained by
the attorney general pursuant to an investigation under this
section shall be confidential records of the office of the attorney
general and shall not be available for public inspection or copying
or divulged to any person except as provided in this section. The
attorney general may disclose documentary material or other
information as follows:
(a) To other law enforcement officials.
(b) In connection with an enforcement action brought pursuant
to this act.
(c) Upon order of the court, to a party in a private action
brought pursuant to this act.
(7) A person that discloses information designated
confidential by this section, except as permitted by subsection (6)
or under court order, is guilty of a misdemeanor and may be fined
not more than $2,500.00 or imprisoned for not more than 1 year, or
both.
Enacting section 1. This act takes effect 90 days after the
date it is enacted into law.
