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.