SB-1309, As Passed Senate, July 21, 2010
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 1309
A bill to amend 1981 PA 118, entitled
"An act to regulate motor vehicle manufacturers, distributors,
wholesalers, dealers, and their representatives; to regulate
dealings between manufacturers and distributors or wholesalers and
their dealers; to regulate dealings between manufacturers,
distributors, wholesalers, dealers, and consumers; to prohibit
unfair practices; to provide remedies and penalties; and to repeal
certain acts and parts of acts,"
by amending sections 5 and 6 (MCL 445.1565 and 445.1566), section 5
as amended by 1998 PA 456 and section 6 as amended by 1983 PA 188.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
5. (1) "New motor vehicle" means a motor vehicle which
that is in the possession of the manufacturer, distributor, or
wholesaler, or has been sold only to a new motor vehicle dealer and
on
for which the new
motor vehicle dealer has not issued an
original
title. has not been issued from the new motor vehicle
dealer.
(2) "New motor vehicle dealer" means a person, including a
distributor,
who that holds a dealer agreement granted by a
manufacturer, distributor, or importer for the sale or distribution
of
its motor vehicles; , who is
engaged in the business of
purchasing, selling, exchanging, or dealing in new motor vehicles;
and
who has an established place of business in this state.
(3) "Person" means a natural person, partnership, corporation,
limited liability company, association, trust, estate, or other
legal entity.
(4) "Proposed new motor vehicle dealer" means a person who has
an application pending for a new dealer agreement with a
manufacturer or distributor. Proposed motor vehicle dealer does not
include a person whose dealer agreement is being renewed or
continued.
Sec. 6. (1) "Relevant market area" means 1 of the following:
(a)
For a proposed new motor vehicle dealer or a new motor
vehicle
dealer who plans to relocate his or her place of business
in
a county having a population which is greater than 25,000, the
area
within a radius of 6 miles of the intended site of the
proposed
or relocated dealer. The 6-mile distance shall be In a
county that has a population of more than 150,000, the area within
a radius of 9 miles of the site of the intended place of business
of a proposed new vehicle dealer or the intended place of business
of a new vehicle dealer that plans to relocate its place of
business. For purposes of this section, the 9-mile distance is
determined by measuring the distance between the nearest surveyed
boundary
of the an existing new motor vehicle dealer's principal
place of business and the nearest surveyed boundary line of the
proposed or relocated new motor vehicle dealer's principal place of
business.
(b)
For a proposed new motor vehicle dealer or a new motor
vehicle
dealer who plans to relocate his or her place of business
in
a county having a population which is not greater than 25,000,
the
area within a radius of 10 miles of the intended site of the
proposed
or relocated dealer, or the county line, whichever is
closer
to the intended site. The 10-mile distance shall be In a
county that has a population of 150,000 or fewer, the area within a
radius of 15 miles of the site of the intended place of business of
a proposed new vehicle dealer or the intended place of business of
a new vehicle dealer that plans to relocate its place of business.
For purposes of this section, the 15-mile distance is determined by
measuring the distance between the nearest surveyed boundary line
of
the an existing new motor vehicle dealer's principal place
of
business and the nearest surveyed boundary line of the proposed or
relocated new motor vehicle dealer's principal place of business.
(2) "Successor manufacturer" means a manufacturer that
acquires, succeeds to, or assumes any part of the business of
another manufacturer as the result of any of the following:
(a) A change in ownership, operation, or control of a
predecessor manufacturer by sale or transfer of assets, corporate
stock, or other equity interest, assignment, merger, consolidation,
combination, joint venture, redemption, court-approved sale,
operation of law, or any other means.
(b) Termination, suspension, or cessation of a part or all of
the business operations of a predecessor manufacturer.
(c) Discontinuance of the sale of a product line.
(d) A change in distribution system by a predecessor
manufacturer, whether through a change in distributor or the
predecessor manufacturer's decision to cease conducting any
business through a particular distributor.
(3) "Used motor vehicle" means a motor vehicle that is not a
new motor vehicle.
(4) "Used motor vehicle dealer" means a person that is engaged
in the business of purchasing, selling, exchanging, or dealing in
used motor vehicles and that has an established place of business
in this state at which it conducts that business. The term does not
include a new motor vehicle dealer purchasing, selling, exchanging,
or dealing in used motor vehicles as part of its business of
purchasing, selling, exchanging, or dealing in new motor vehicles.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No. 1308.
(b) House Bill No. 6099.
(c) House Bill No. 6100.