HOUSE BILL No. 5858


     May 30, 2000, Introduced by Reps. DeHart, Kelly and Hale and referred to the Committee on Transportation.


        A bill to amend 1949 PA 300, entitled

   "Michigan vehicle code,"

   by amending section 235 (MCL 257.235), as amended by 1988

   PA 470.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 235.  (1) If the transferee of a vehicle is a new motor

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      vehicle dealer or a used vehicle dealer who acquires the vehicle

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      for resale, the dealer shall  not be required to  obtain a new

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      registration  of  FOR the vehicle  or  AND SHALL forward
   the

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       certificate of title to the secretary of state, but shall retain

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      and have in the dealer's immediate possession the  assigned cer-

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      tificate of title with the odometer information properly com-

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      pleted TO THE SECRETARY OF STATE, WHO SHALL ISSUE A NEW TITLE TO

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      THE DEALER IN THE DEALER'S NAME.  A dealer shall obtain a

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      certificate of title for a vehicle having a salvage certificate


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      of title before the dealer may operate the vehicle under dealer's

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      license plates.  Upon transferring title or interest to another

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      person who is not a dealer, the dealer shall complete an assign-

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      ment and warranty of title upon the certificate of title, salvage

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      certificate of title, or dealer reassignment of title form and

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      make an application for registration and a new title as provided

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      in section 217(2).

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           (2) The dealer or transferee shall be liable for all damages

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      arising from the operation of the vehicle while the vehicle is in

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      the dealer's or transferee's possession.

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           (3) Upon transferring title or interest to another dealer,

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      the dealer shall complete an assignment and warranty of title

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      upon the certificate of title, salvage certificate of title, or

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      dealer reassignment of title form and deliver it to the licensed

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      dealer to whom the transfer is made.

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           (4) The dealer reassignment of title form shall be pre-

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      scribed by the secretary of state and shall contain the title

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      number of the accompanying title; the name, address, and, if

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      applicable, dealer license number of the transferee; the year,

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      make, model, body type, and vehicle identification number of the

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      vehicle; the name, address, dealer number, and signature of the

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      transferor; an odometer mileage statement pursuant to section

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      233a; and any other information the secretary of state may

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      require.









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