HB-4360, As Passed House, June 12, 2018

HB-4360, As Passed Senate, June 6, 2018

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4360

     A bill to prohibit a local government or law enforcement

agency from operating a motor vehicle storage facility or towing

operation; to prohibit a local government or law enforcement agency

from accepting consideration from an authorized vendor that

operates a motor vehicle storage facility; to prohibit a local

government or law enforcement agency from requiring an authorized

vendor to deliver a motor vehicle to a motor vehicle storage

facility operated by a different authorized vendor; to provide for

exceptions; to prescribe the powers and duties of certain state and

local departments, entities, and officials; to prescribe the powers

and duties of certain law enforcement agencies; and to provide for

remedies and penalties.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. As used in this act:

     (a) "Authorized vendor" means an individual or entity that a

local government or law enforcement agency designates through

contract, permit, practice, or license to have authority to remove

or store motor vehicles at the request of the local government or

law enforcement agency.

     (b) "Law enforcement agency" means the department of state

police, the department of natural resources, or a law enforcement

agency of a county, township, city, village, or airport authority,

that is responsible for the prevention and detection of crime and

enforcement of the criminal laws of this state.

     (c) "Local government" means a county, city, village,

township, or an authority established by law.

     (d) "Motor vehicle" means that term as defined in section 33

of the Michigan vehicle code, 1949 PA 300, MCL 257.33.

     (e) "Motor vehicle storage facility" means a facility operated

to hold motor vehicles that have been taken into custody for

safekeeping.

     (f) "Towing operation" means the moving or removing of motor

vehicles by providing wrecker, towing, or other recovery services.

     Sec. 2. Except as otherwise provided in section 3 or 3a,

beginning on the effective date of this act, a local government or

law enforcement agency shall not do any of the following:

     (a) Operate a motor vehicle storage facility or towing

operation.

     (b) Accept any consideration, financial or other, from an

authorized vendor that operates a motor vehicle storage facility.

     (c) Require an authorized vendor to deliver a motor vehicle to

a motor vehicle storage facility operated by a different authorized

vendor.

     Sec. 3. (1) If, on or before the effective date of this act, a

local government or law enforcement agency is operating a motor

vehicle storage facility or towing operation, that local government

or law enforcement agency may continue to operate that motor

vehicle storage facility or towing operation after the effective

date of this act.

     (2) If, on or before the effective date of this act, a local

government or law enforcement agency accepts consideration,

financial or other, from any authorized vendor that operates a

motor vehicle storage facility, that local government or law

enforcement agency may continue to accept consideration, financial

or other, from any authorized vendor after the effective date of

this act.

     (3) If, on or before the effective date of this act, a local

government or law enforcement agency requires any authorized vendor

to deliver a motor vehicle to a motor vehicle storage facility

operated by a different authorized vendor, that local government or

law enforcement agency may continue to require any authorized

vendor to deliver a motor vehicle to a motor vehicle storage

facility operated by a different authorized vendor after the

effective date of this act.

     Sec. 3a. The prohibition in section 2(a) does not apply to a

local government or law enforcement agency if that local government

or law enforcement agency issues a request for proposals for

operating a motor vehicle storage facility or towing operation and

the request for proposals does not yield a bona fide bid. A local

government or law enforcement agency shall use the standard or

customary request for proposals process used by that local

government or law enforcement agency for all other procurement

matters when issuing the request for proposals for operating a

motor vehicle storage facility or towing operation.

     Sec. 4. If a local government or law enforcement agency

violates section 2, an individual or entity may bring an action

seeking injunctive relief against the local government or law

enforcement agency. If a court determines a local government or law

enforcement agency is violating section 2, the court shall issue an

injunctive order requiring the local government or law enforcement

agency to cease and desist from violating section 2. An injunctive

order issued under this section becomes effective 60 days after the

injunctive order is entered by the court. Any action taken by a

local government or law enforcement agency to ensure compliance

with section 2 or any injunctive order issued under this section is

not considered a violation of the injunctive order for purposes of

any fine under this section. A local government or law enforcement

agency that violates an injunctive order under this section is

subject to a civil fine of not more than $1,000.00 for each day of

violation, up to a maximum of $10,000.00. An individual or entity

that brings an action under this section may recover costs and

reasonable attorney fees.

     Enacting section 1. This act takes effect 90 days after the

date it is enacted into law.