HB-4360, As Passed House, March 21, 2018

SUBSTITUTE FOR

HOUSE BILL NO. 4360

     A bill to prohibit a local government or law enforcement

agency from operating a motor vehicle storage facility; 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.

     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.

     (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, that local government or law enforcement

agency may continue to operate that motor vehicle storage facility

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 and the request for

proposals does not yield a 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.

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

violates section 2, an authorized vendor may bring a cause of

action against the local government or law enforcement agency and

may recover the amount of the actual damages sustained, plus costs

and reasonable attorney fees.

     Sec. 5. The owner or lessee of a motor vehicle that is held at

a motor vehicle storage facility that is being operated in

violation of section 2 may bring a cause of action against the

local government or law enforcement agency and may recover all

towing and storage fees paid by the owner or lessee or $150.00,

whichever is greater, plus costs and reasonable attorney fees.

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

date it is enacted into law.