February 13, 2008, Introduced by Senators BROWN, BASHAM, PAPPAGEORGE, BARCIA, KAHN and VAN WOERKOM and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
by amending section 251 (MCL 257.251), as amended by 2002 PA 642.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 251. (1) Each new vehicle dealer, used vehicle dealer,
and broker shall maintain a record in a manner prescribed by the
secretary of state of each vehicle of a type subject to titling
under this act that is bought, sold, leased, or exchanged by the
dealer or received or accepted by the dealer for sale, lease, or
exchange.
(2) Each record shall contain the date of the purchase, sale,
lease, or exchange or receipt for the purpose of sale, lease, or
exchange, a description of the vehicle, the name and address of the
seller, the purchaser or lessee, and the alleged owner or other
persons from whom the vehicle was purchased or received, or to whom
it was sold, leased, or delivered. The record shall contain a copy
of any odometer mileage statement received by the dealer when the
dealer purchased or acquired a vehicle and a copy of the odometer
mileage statement furnished by the dealer when the dealer sold,
leased, or exchanged the vehicle as prescribed in section 233a. If
the vehicle is purchased, sold, leased, or exchanged through a
broker, the record shall include the broker's name and dealer
license number and the amount of the broker's fee, commission,
compensation, or other valuable consideration paid by the purchaser
or lessee or paid by the dealer, or both. The records of all
vehicles purchased, sold, leased, or exchanged through a broker
maintained by the secretary of state shall be in an electronic
format determined by the secretary of state. A dealer shall retain
for not less than 5 years each odometer mileage statement the
dealer receives and each odometer mileage statement furnished by
the dealer upon the sale, lease, or exchange of a vehicle. The
description of the vehicle, in the case of a motor vehicle, shall
also include the vehicle identification number and other numbers or
identification marks as may be on the vehicle, and shall also
include a statement that a number has been obliterated, defaced, or
changed, if that is the fact. For a trailer or semitrailer, the
record shall include the vehicle identification number and other
numbers or identification marks as may be on the trailer or
semitrailer.
(3) Not more than 20 days after the delivery of the vehicle,
the seller shall deliver to the buyer in person or by mail to the
buyer's last known address a duplicate of a written statement, on a
form prescribed by the secretary of state in conjunction with the
department of treasury, describing clearly the name and address of
the seller, the name and address of the buyer, the vehicle sold to
the buyer, the cash sale price of the vehicle, the cash paid down
by the buyer, the amount credited the buyer for a trade-in, a
description of the trade-in, the amount charged for vehicle
insurance, stating the types of insurance covered by the insurance
policy, the amount charged for a temporary registration plate, the
amount of any other charge and specifying its purpose, the net
balance due from the buyer, and a summary of insurance coverage to
be affected. If the vehicle sold is a new motor home, the written
statement shall contain a description, including the year of
manufacture, of every major component part of the vehicle that has
its own manufacturer's certificate of origin. The written statement
shall disclose if the vehicle sold is a vehicle that the seller had
loaned or leased to a political subdivision of this state for use
as a driver education vehicle. The written statement shall be
dated, but not later than the actual date of delivery of the
vehicle to the buyer. The original and all copies of the prescribed
form shall contain identical information. The statement shall be
furnished by the seller, shall be signed by the seller or the
seller's agent and by the buyer, and shall be filed with the
application for new title or registration. Failure of the seller to
deliver this written statement to the buyer does not invalidate the
sale between the seller and the buyer.
(4) A retail vehicle sale is void unless both of the following
conditions are met:
(a) The sale is evidenced by a written memorandum that
contains the agreement of the parties and is signed by the buyer
and the seller or the seller's agent.
(b) The agreement contains a place for acknowledgment by the
buyer of the receipt of a copy of the agreement or actual delivery
of the vehicle is made to the buyer.
(5) Each dealer record and inventory, including the record and
inventory of a vehicle scrap metal processor not required to obtain
a dealer license, shall be open to inspection by a police officer
or an authorized officer or investigator of the secretary of state
during reasonable or established business hours.
(6) A dealer licensed as a distressed vehicle transporter
shall maintain records in a form as prescribed by the secretary of
state. The records shall identify each distressed vehicle that is
bought, acquired, and sold by the dealer. The record shall identify
the person from whom a distressed vehicle was bought or acquired
and the dealer to whom the vehicle was sold. The record shall
indicate whether a certificate of title or salvage certificate of
title was obtained by the dealer for each vehicle.
(7) A dealer licensed under this act shall maintain records
for a period of 5 years. The records shall be made available for
inspection by the secretary of state or other law enforcement
officials. To determine or enforce compliance with this chapter or
other applicable law, the secretary of state or any law enforcement
official may inspect a dealer whenever he or she determines it is
necessary. The secretary of state may issue an order summarily
suspending the license of a dealer pursuant to section 92 of the
administrative procedures act of 1969, 1969 PA 306, MCL 24.292,
based on an affidavit by a person familiar with the facts set forth
in the affidavit that the dealer has failed to maintain the records
required by this act or failed to provide the records for
inspection as requested by the secretary of state, or has otherwise
hindered, obstructed, or prevented the inspection of records
authorized under this section. The dealer to whom the order is
directed shall comply immediately, but on application to the
department shall be afforded a hearing within 30 days pursuant to
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328. On the basis of the hearing, the summary order shall be
continued, modified, or held in abeyance not later than 30 days
after the hearing.
(8) A dealer licensed as a vehicle salvage pool operator or
broker shall maintain records in a form as prescribed by the
secretary of state. The records shall contain a description of each
vehicle or salvageable part stored by the dealer, the name and
address of the insurance company or person storing the vehicle or
salvageable part, the period of time the vehicle or salvageable
part was stored, and the person acquiring the vehicle or
salvageable part. In the case of a late model vehicle, a record of
the purchase or sale of a major component part of the vehicle shall
be maintained identifying the part purchased or sold, the name and
address of the seller or purchaser, the date of the purchase or
sale, and the identification number assigned to the part by the
dealer. The record of the purchase or sale of a part shall be
maintained in or attached to the dealer's police book or hard copy
of computerized data entries and reference codes and shall be
accessible at the dealer's location. In addition, a dealer licensed
as a broker shall maintain a record of the odometer mileage reading
of each vehicle sold pursuant to an agreement between the broker
and the buyer or the broker and the seller. The record of odometer
mileage shall be maintained for 5 years and shall contain all of
the information required by section 233a.
(9) A dealer licensed as a used vehicle parts dealer or an
automotive recycler shall maintain records in a form prescribed by
the
secretary of state. The In
the case of the purchase of items
containing nonferrous metals by an automotive recycler, the records
shall contain at least the name, description, date of purchase,
location from which the item was obtained by the seller,
fingerprint, operator's or chauffeur's license or state
identification card number, address of the person selling the item,
as well as a copy of the operator's or chauffeur's license or state
identification card. In the case of an automotive recycler, the
articles containing nonferrous metals purchased or exchanged shall
be retained by the automotive recycler for at least 15 days before
disposing of them, in an accessible place in the building where the
articles are purchased and received. A tag shall be attached to
those articles in some visible and convenient place, with the
number written upon them, to correspond with the entry number in
the automotive recycler's records. The automotive recycler shall
prepare and deliver on Monday of each week to the chief of police
or chief law enforcement officer of the local unit of government
within which its business is conducted, before 12 noon, a legible
and correct copy written in the English language from the records,
containing a description of each nonferrous metal article purchased
or received during the preceding week, the hour and day when the
purchase was made, and the description of the person from whom it
was purchased. The statement shall be verified by the person
subscribing his or her name to the record. Except as otherwise
provided in the case of items containing nonferrous metals, the
records shall contain the date of purchase or acquisition of the
vehicle, a description of the vehicle including the color, and the
name and address of the person from whom the vehicle was acquired.
If the vehicle is sold, the record shall contain the date of sale
and the name and address of the purchaser. The record shall
indicate if the certificate of title or salvage or scrap
certificate of title was obtained by the dealer. In the case of a
late model vehicle, a record of the purchase or sale of a major
component of the vehicle shall be maintained identifying the part
purchased or sold, the name and address of the seller or purchaser,
the date of the purchase or sale, and the identification number
assigned to the part by the dealer, except that a bumper
remanufacturer is not required to maintain a record of the purchase
of a bumper. However, a bumper remanufacturer shall assign and
attach an identification number to a remanufactured bumper and
maintain a record of the sale of the bumper. The record of the
purchase or sale of a part shall be maintained in or attached to
the dealer's police book or hard copy of computerized data entries
and reference codes and shall be accessible at the dealer's
location.
(10) A dealer licensed as a vehicle scrap metal processor
shall maintain records as prescribed by the secretary of state. In
the case of the purchase of items containing nonferrous metals by a
scrap metal processor, the records shall contain at least the name,
description, date of purchase, location from which the item was
obtained by the seller, fingerprint, operator's or chauffeur's
license or state identification card number, address of the person
selling the item, as well as a copy of the operator's or
chauffeur's license or state identification card. In the case of a
scrap metal processor, the articles containing nonferrous metals
purchased or exchanged shall be retained by the scrap metal
processor for at least 15 days before disposing of them, in an
accessible place in the building where the articles are purchased
and received. A tag shall be attached to those articles in some
visible and convenient place, with the number written upon them, to
correspond with the entry number in the scrap metal processor's
records. The scrap metal processor shall prepare and deliver on
Monday of each week to the chief of police or chief law enforcement
officer of the local unit of government within which its business
is conducted, before 12 noon, a legible and correct copy written in
the English language from the records, containing a description of
each nonferrous metal article purchased or received during the
preceding week, the hour and day when the purchase was made, and
the description of the person from whom it was purchased. The
statement shall be verified by the person subscribing his or her
name to the record. As provided in section 217c, the records shall
contain for a vehicle purchased from a dealer a copy of the scrap
vehicle inventory, including the name and address of the dealer, a
description of the vehicle acquired, and the date of acquisition.
If a vehicle is purchased or acquired from a person other than a
dealer, the record shall contain the date of acquisition, a
description of the vehicle, including the color, the name and
address of the person from whom the vehicle was acquired, and
whether a certificate of title or salvage or scrap certificate of
title was obtained by the dealer.
(11) A dealer licensed as a foreign salvage vehicle dealer
shall maintain records in a form prescribed by the secretary of
state. The records shall contain the date of purchase or
acquisition of each distressed vehicle, a description of the
vehicle including the color, and the name and address of the person
from whom the vehicle was acquired. If the vehicle is sold, the
record shall contain the date of sale and the name and address of
the purchaser. The record shall indicate if the certificate of
title or salvage or scrap certificate of title was obtained by the
dealer. In the case of a late model vehicle, a record of the
purchase or sale of each salvageable part purchased or acquired in
this state shall be maintained and the record shall contain the
date of purchase or acquisition of the part, a description of the
part, the identification number assigned to the part, and the name
and address of the person to or from whom the part was purchased,
acquired, or sold. The record of the sale, purchase, or acquisition
of a part shall be maintained in the dealer's police book. The
police book shall only contain vehicles and salvageable parts
purchased in this state or used in the repair of a vehicle
purchased in this state. The police book and the records of vehicle
part sales, purchases, or acquisitions shall be made available at a
location within the state for inspection by the secretary of state
within 48 hours after a request by the secretary of state.
(12) The secretary of state shall make periodic unannounced
inspections of the records, facilities, and inventories of
automotive recyclers and used or secondhand vehicle parts dealers.
(13) Notwithstanding any provision of this act, an automotive
recycler or a scrap metal processor shall not purchase or receive
from any person who is at the time intoxicated, or from a habitual
drunkard or from any person known by the automotive recycler or
scrap metal processor to be a thief or any associate of thieves or
receiver of stolen property, or from any person he or she has
reason to suspect of being a person known by the automotive
recycler or scrap metal processor to be a thief or any associate of
thieves or receiver of stolen property.
(14) An automotive recycler or a scrap metal processor who
buys or sells stolen nonferrous scrap metal that he or she has
reason to believe was unlawfully removed from a utility pole,
irrigation system, agricultural machinery, telecommunication
company property, government property, or utility property or
jobsite is guilty of a felony punishable by imprisonment for not
more than 5 years or a fine of not more than $10,000.00, or both.
(15) (13)
The secretary of state may
promulgate rules to
implement this section pursuant to the administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328.