SB-0196, As Passed House, May 26, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 196

 

 

March 11, 2015, Introduced by Senators CASPERSON, ROBERTSON, HORN, KNOLLENBERG, ZORN, EMMONS and JONES and referred to the Committee on Transportation.

 

 

 

      A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending sections 217c, 217f, 248c, and 252a (MCL 257.217c,

 

257.217f, 257.248c, and 257.252a), section 217c as amended by

 

2002 PA 642, sections 217f and 248c as amended by 1993 PA 300,

 

and section 252a as amended by 2008 PA 539.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 217c. (1) The secretary of state may conduct periodic

 

 2  reviews of the records of a dealer to determine whether adequate

 

 3  notice is given to a transferee or lessee of a rebuilt salvage

 

 4  vehicle of that vehicle's prior designation as a salvage vehicle.

 

 5  The secretary of state may request an insurance company to

 

 6  provide copies of salvage title documents and claims reports

 

 7  involving major component parts to assist the secretary of state

 

 8  in monitoring compliance with this act.


 

 1        (2) Except for a late model vehicle that has been stolen and

 

 2  recovered and that has no major component part removed, missing,

 

 3  or destroyed, or damaged and not salvageable, an insurance

 

 4  company licensed to conduct business in this state that acquires

 

 5  ownership of a late model vehicle through the payment of a claim

 

 6  shall proceed under either of the following:

 

 7        (a) If the insurance company acquires ownership of the

 

 8  vehicle through payment of a claim, the owner of the vehicle

 

 9  shall assign the certificate of title to the insurance company

 

10  which shall do all of the following:

 

11        (i) Surrender a properly assigned certificate of title to the

 

12  secretary of state.

 

13        (ii) If the estimated cost of repair, including parts and

 

14  labor, is equal to or more than 75% but less than 91% of the

 

15  predamaged actual cash value of the vehicle, apply for a salvage

 

16  certificate of title, and if the estimated cost of repair,

 

17  including parts and labor, is equal to or greater than 91% of the

 

18  predamaged actual cash value of the vehicle, apply for a scrap

 

19  certificate of title. The insurance company shall not sell the

 

20  vehicle without first receiving a salvage or scrap certificate of

 

21  title, which shall be assigned to the buyer. An insurance company

 

22  may assign a salvage or scrap certificate of the title only to an

 

23  automotive recycler, used or secondhand vehicle parts dealer,

 

24  foreign salvage vehicle dealer, or vehicle scrap metal processor.

 

25        (b) If after payment of a total loss claim the insurance

 

26  company permits the owner of the vehicle to retain ownership, the

 

27  insurance company shall do all of the following:


 

 1        (i) If the estimated cost of repair, including parts and

 

 2  labor, is equal to or greater than 75% but less than 91% of the

 

 3  predamaged actual cash value of the vehicle, require each owner

 

 4  of the vehicle to sign an application for a salvage certificate

 

 5  of title, or if the estimated cost of repair, including parts and

 

 6  labor, is equal to or greater than 91% of the predamaged actual

 

 7  cash value of the vehicle, require each owner of the vehicle to

 

 8  sign an application for a scrap vehicle certificate of title.

 

 9        (ii) Attach the owner's certificate of title to the

 

10  application for a salvage or scrap certificate of title or have

 

11  the owner certify that the certificate of title is lost.

 

12        (iii) On behalf of the owner, apply to the secretary of state

 

13  for a salvage or scrap certificate of title in the name of the

 

14  owner. The owner shall not sell or otherwise dispose of the

 

15  vehicle without first receiving a salvage or scrap certificate of

 

16  title, which shall be assigned to the buyer. An insurance company

 

17  may assign a salvage or scrap certificate of title only to an

 

18  automotive recycler, used or secondhand vehicle parts dealer,

 

19  foreign salvage vehicle dealer, or vehicle scrap metal processor.

 

20        (3) If an insurance company pays a claim for total loss to

 

21  the owner or lienholder of record as kept by the secretary of

 

22  state, or both, if applicable, of a vehicle but the owner or

 

23  lienholder of record as kept by the secretary of state fails to

 

24  surrender the certificate of title or other document necessary

 

25  for the transfer of ownership of the vehicle to the insurance

 

26  company within the expiration of 30 days after the claim payment,

 

27  the insurance company, without having obtained the surrender of


 

 1  the title or other document otherwise necessary for the transfer

 

 2  of ownership for the vehicle from the owner or lienholder of

 

 3  record as kept by the secretary of state, or both, if applicable,

 

 4  may apply to the secretary of state for a title as provided under

 

 5  this section. The insurance company shall, at the time of

 

 6  application, provide proof of the payment and that the insurance

 

 7  company has requested in writing, by certified mail or by another

 

 8  commercially available delivery service providing proof of

 

 9  delivery, on at least 2 separate occasions that the owner or

 

10  lienholder of record as kept by the secretary of state surrender

 

11  to the insurance company the certificate of title or other

 

12  document necessary for the transfer of ownership to the insurance

 

13  company. The application shall be signed under the penalty of

 

14  perjury. Subject to subsection (2)(a)(ii), upon meeting the

 

15  requirements of this subsection, the secretary of state shall

 

16  issue to the insurance company the appropriate certificate of

 

17  title free of all liens and shall notify the prior vehicle owner

 

18  and lienholder of record as kept by the secretary of state, if

 

19  any, of that action in writing. Proof of payment of the claim is

 

20  satisfied only by 1 of the following:

 

21        (a) In the case of payment by check, either of the

 

22  following:

 

23        (i) A copy of the front and back of the endorsed check.

 

24        (ii) Evidence that the check has cleared the account of the

 

25  payer.

 

26        (b) In the case of payment by electronic transfer, evidence

 

27  that the payment was charged to the account of the payer.


 

 1        (4) (3) If Except as provided in subsection (3), if an

 

 2  insurance company acquires ownership of a vehicle other than a

 

 3  late model vehicle through payment of damages due to an accident,

 

 4  the company shall surrender a properly assigned title to the

 

 5  buyer upon delivery.

 

 6        (5) (4) If a dealer acquires ownership of a late model

 

 7  vehicle that is a distressed vehicle from an owner, the dealer

 

 8  shall receive an assigned certificate of title. If the assigned

 

 9  certificate of title is not a salvage or scrap certificate of

 

10  title, the dealer, other than a vehicle scrap metal processor,

 

11  shall surrender the assigned certificate of title to the

 

12  secretary of state, and if the estimated cost of repair,

 

13  including parts and labor, is equal to or greater than 75% but

 

14  less than 91% of the predamaged actual cash value of the vehicle,

 

15  apply for a salvage certificate of title, or if the estimated

 

16  cost of repair, including parts and labor, is equal to or greater

 

17  than 91% of the predamaged actual cash value of the vehicle,

 

18  apply for a scrap certificate of title within 5 days after the

 

19  dealer receives the assigned certificate of title. The dealer may

 

20  sell a salvage vehicle to another automotive recycler, used or

 

21  secondhand vehicle parts dealer, foreign salvage vehicle dealer,

 

22  or vehicle scrap metal processor by assigning the salvage

 

23  certificate of title to the buyer. Unless the vehicle is rebuilt,

 

24  inspected, and recertified pursuant to under this section, if the

 

25  vehicle is sold to a buyer other than a dealer, application shall

 

26  be made for a salvage certificate in the name of the buyer in the

 

27  manner provided in this act. The dealer may sell a scrap vehicle


 

 1  only to a vehicle scrap metal processor. A vehicle scrap metal

 

 2  processor shall surrender an assigned certificate of title to the

 

 3  secretary of state within 30 days after acquiring a vehicle for

 

 4  which a certificate of title was received. A vehicle scrap metal

 

 5  processor shall surrender an assigned salvage or scrap

 

 6  certificate of title to the secretary of state within 30 days

 

 7  after acquiring a vehicle for which a salvage or scrap

 

 8  certificate of title was received and report that the vehicle was

 

 9  destroyed or scrapped.

 

10        (6) (5) An application for a scrap certificate of title

 

11  shall be made on a form prescribed by the secretary of state

 

12  accompanied by a fee of $15.00. The application shall contain all

 

13  of the following:

 

14        (a) The complete name and current address of the owner.

 

15        (b) A description of the vehicle, including its make, style

 

16  of body, model year, fee category or weight, color, and vehicle

 

17  identification number.

 

18        (c) If the vehicle is a late model vehicle, a listing of

 

19  each major component part that was not salvageable.

 

20        (d) Further information as may reasonably be required by the

 

21  secretary of state.

 

22        (7) (6) The scrap certificate of title shall authorize the

 

23  holder of the document to transport but not drive upon a highway

 

24  the vehicle or parts of a vehicle, and assign ownership to a

 

25  vehicle scrap metal processor, automotive recycler, used or

 

26  secondhand vehicle parts dealer, or foreign salvage vehicle

 

27  dealer. A certificate of title shall not again be issued for this


 

 1  vehicle. A person shall not rebuild or repair a scrap vehicle and

 

 2  allow it to retain the original vehicle identification number.

 

 3        (8) (7) If a person, other than a dealer or insurance

 

 4  company that is subject to subsection (2) or (4), (5), acquires

 

 5  ownership of a distressed, late model vehicle, the person shall

 

 6  surrender the title or assigned certificate of title to the

 

 7  secretary of state, and if the estimated cost of repair,

 

 8  including parts and labor, is equal to or greater than 75% but

 

 9  less than 91% of the predamaged actual cash value of the vehicle,

 

10  apply for a salvage certificate of title, or if the estimated

 

11  cost of repair, including parts and labor, is equal to or greater

 

12  than 91% of the predamaged actual cash value of the vehicle,

 

13  apply for a scrap certificate of title before the vehicle may be

 

14  transported.

 

15        (9) (8) An owner of a vehicle may determine that a vehicle

 

16  is a scrap vehicle or a salvage vehicle without making any

 

17  determination as to the actual cash value of the vehicle.

 

18        (10) (9) If a leasing company, vehicle manufacturer,

 

19  insurance company not licensed to do business in this state,

 

20  association, repossession company, self-insured owner, financial

 

21  institution, governmental entity, or other company, institution,

 

22  or entity, owns a distressed, late model vehicle, the titleholder

 

23  shall surrender the title or assigned certificate of title to the

 

24  secretary of state and apply for a salvage certificate of title

 

25  if the retail cost of repair, including parts and labor, is equal

 

26  to or greater than 75% but less than 91% of the predamaged actual

 

27  cash value of the vehicle, or if the retail cost of repair,


 

 1  including parts and labor, is equal to or greater than 91% of the

 

 2  predamaged actual cash value of the vehicle, apply for a scrap

 

 3  certificate of title, before the vehicle may be transported or

 

 4  sold. If ownership is transferred, the owner shall sell the

 

 5  vehicle only to a dealer who is eligible to buy a salvage or

 

 6  scrap vehicle in this state unless the owner complies with

 

 7  subsection (12). (13). When a leasing company, vehicle

 

 8  manufacturer, insurance company not licensed to do business in

 

 9  this state, association, repossession company, self-insured

 

10  owner, financial institution, governmental entity, or other

 

11  company, institution, or entity, estimates the repair of a

 

12  distressed, late model vehicle for the purpose of determining

 

13  whether to apply for a salvage or scrap certificate of title, a

 

14  complete record of the estimate and, if the vehicle is repaired

 

15  before a transfer of ownership, a complete record of the actual

 

16  cost of the repairs performed and by whom shall be maintained for

 

17  a minimum of 5 years by the leasing company, vehicle

 

18  manufacturer, insurance company not licensed to do business in

 

19  this state, association, repossession company, self-insured

 

20  owner, financial institution, governmental entity, or other

 

21  company, institution, or entity. The estimates and repair records

 

22  required by this subsection shall be available for unannounced

 

23  inspections by a law enforcement agency or a representative of

 

24  the secretary of state. The secretary of state may request a

 

25  leasing company, vehicle manufacturer, insurance company not

 

26  licensed to do business in this state, association, repossession

 

27  company, self-insured owner, financial institution, governmental


 

 1  entity, or other company, institution, or entity to provide

 

 2  copies of title documents, repair estimates, claims reports

 

 3  involving major component parts, and actual cash value

 

 4  determination documents to assist the secretary of state in

 

 5  monitoring compliance with this act.

 

 6        (11) (10) An application for a salvage certificate of title

 

 7  shall be made on a form prescribed by the secretary of state

 

 8  accompanied by a fee of $10.00. The application shall contain all

 

 9  of the following:

 

10        (a) The complete name and current address of the owner.

 

11        (b) A description of the vehicle, including its make, style

 

12  of body, model year, fee category or weight, color, and vehicle

 

13  identification number.

 

14        (c) An estimate of the cost repair, including parts and

 

15  labor, and an estimate of the predamaged actual cash value of the

 

16  vehicle.

 

17        (d) If the vehicle is a late model vehicle, a listing of

 

18  each major component part that was not salvageable.

 

19        (e) Further information as may reasonably be required by the

 

20  secretary of state.

 

21        (12) (11) The secretary of state shall issue and mail the

 

22  salvage certificate within 5 business days after the time the

 

23  application is received at the secretary of state's office in

 

24  Lansing. Each salvage certificate of title shall include a

 

25  listing of each major component part that was not salvageable.

 

26        (13) (12) A salvage certificate of title authorizes the

 

27  holder of the title to possess, transport, but not drive upon a


 

 1  highway, and transfer ownership in, a vehicle. The secretary of

 

 2  state shall not issue a certificate of title or registration

 

 3  plates for a vehicle for which a salvage certificate of title was

 

 4  issued unless a specially trained officer described in subsection

 

 5  (14) (15) certifies all of the following:

 

 6        (a) That the vehicle identification numbers and parts

 

 7  identification numbers are correct.

 

 8        (b) That the applicant has proof of ownership of repair

 

 9  parts used.

 

10        (c) That the vehicle complies with the equipment standards

 

11  of this act.

 

12        (14) (13) The certification required by subsection (12) (13)

 

13  shall be made on a form prescribed and furnished by the secretary

 

14  of state in conjunction with the department of state police and

 

15  shall accompany the application that is submitted to the

 

16  secretary of state for a certificate of title. An application for

 

17  a certificate of title shall contain a description of each

 

18  salvageable part used to repair the vehicle and any

 

19  identification number affixed to or inscribed upon the part as

 

20  required by state or federal law. Upon satisfactory completion of

 

21  the inspection as required by the secretary of state and other

 

22  requirements for application, the secretary of state shall issue

 

23  a certificate of title for the vehicle bearing the legend

 

24  "rebuilt salvage".

 

25        (15) (14) An officer specially trained as provided by the

 

26  secretary of state and authorized by the secretary of state to

 

27  conduct a salvage vehicle inspection is either of the following:


 

 1        (a) An on-duty or off-duty police officer.

 

 2        (b) A previously certified police officer who is appointed

 

 3  by the local police agency as a limited enforcement officer to

 

 4  conduct salvage vehicle inspections. The local police agency

 

 5  shall give this officer access to the agency's law enforcement

 

 6  information network system and the authority to confiscate any

 

 7  stolen vehicle or vehicle parts discovered during an inspection.

 

 8  The local police agency may give the officer the authority to

 

 9  arrest a person suspected of having unlawful possession of a

 

10  stolen vehicle or vehicle parts.

 

11        (16) (15) The secretary of state shall issue a certificate

 

12  to an officer who is specially trained as provided by the

 

13  secretary of state to conduct salvage vehicle inspections. Only a

 

14  person who has a valid certification from the secretary of state

 

15  may perform salvage inspections. The secretary of state on his or

 

16  her own initiative or in response to complaints shall make

 

17  reasonable and necessary public or private investigations within

 

18  or outside of this state and gather evidence against an officer

 

19  who was issued a certificate and who violated or is about to

 

20  violate this act or a rule promulgated under this act. The

 

21  secretary of state may suspend, revoke, or deny a certificate

 

22  after an investigation if the secretary of state determines that

 

23  the officer committed 1 or more of the following:

 

24        (a) Violated this act or a rule promulgated under this act.

 

25        (b) Was found guilty of a fraudulent act in connection with

 

26  the inspection, purchase, sale, lease, or transfer of a salvage

 

27  vehicle.


 

 1        (c) Was found guilty of the theft, embezzlement, or

 

 2  misappropriation of salvage vehicle inspection fees.

 

 3        (d) Performed improper, careless, or negligent salvage

 

 4  vehicle inspections.

 

 5        (e) Ceased to function as a police officer because of

 

 6  suspension, retirement, dismissal, disability, or termination of

 

 7  employment.

 

 8        (f) Was convicted of a violation or attempted violation of

 

 9  1986 PA 119, MCL 257.1351 to 257.1355.

 

10        (g) Made a false statement of a material fact in his or her

 

11  certification of a salvage vehicle inspection or any record

 

12  concerning a salvage vehicle inspection.

 

13        (17) (16) Upon receipt of the appropriate abstract of

 

14  conviction from a court and without any investigation, the

 

15  secretary of state shall immediately revoke the certificate of an

 

16  officer who has been convicted of a violation or attempted

 

17  violation of section 413, 414, 415, 535, 535a, or 536a of the

 

18  Michigan penal code, 1931 PA 328, MCL 750.413, 750.414, 750.415,

 

19  750.535, 750.535a, and 750.536a, or has been convicted in federal

 

20  court or in another state of a violation or attempted violation

 

21  of a law substantially corresponding to 1 of those sections.

 

22        (18) (17) If a dealer acquires ownership of an older model

 

23  vehicle from an owner, the dealer shall receive an assigned

 

24  certificate of title and shall retain it as long as he or she

 

25  retains the vehicle. A vehicle scrap metal processor shall

 

26  surrender an assigned certificate of title to the secretary of

 

27  state within 30 days after the vehicle is destroyed or scrapped.


 

 1        (19) (18) A dealer selling or assigning a vehicle to a

 

 2  vehicle scrap metal processor shall make a record in triplicate

 

 3  on a form to be provided by the secretary of state in

 

 4  substantially the following form:

 

 

                        Scrap Vehicle Inventory:

   SELLER:    Dealer name ________________________________________

              Dealer address _____________________________________

              Dealer license number ______________________________

PURCHASER:    Conveyed to:_________________________ Date__________

10                        (Vehicle scrap metal processor)

11               Dealer address _____________________________________

12               Dealer license number ______________________________

13              

14                               Vehicles

 

 

 

15                                                   Dealer's 

16                                                   Stock   

17 Model Year     Vehicle Make   VIN  Title Number   Number   Color

18 1.________     ____________   ___  ____________   ______    _____

19 2.________     ____________   ___  ____________   ______    _____

20 3.________     ____________   ___  ____________   ______    _____

21 etc.                                                       

 

 

 

22 One copy shall be retained as a permanent record by the dealer,

23 1 copy shall be forwarded with the vehicle to be retained by the

24 vehicle scrap metal processor, and 1 copy shall be forwarded to

25 the secretary of state.


 

 

 1        (20) (19) A person, other than an automotive recycler, used

 

 2  or secondhand vehicle parts dealer, or a foreign salvage dealer,

 

 3  receiving a salvage certificate of title shall not sell the

 

 4  vehicle to anyone other than 1 of the following:

 

 5        (a) The vehicle's former owner.

 

 6        (b) A used or secondhand vehicle parts dealer.

 

 7        (c) A vehicle scrap metal processor.

 

 8        (d) A foreign salvage vehicle dealer licensed under this

 

 9  act.

 

10        (e) An automotive recycler.

 

11        (21) (20) A person receiving a scrap certificate of title

 

12  shall not sell the vehicle to anyone other than 1 of the

 

13  following:

 

14        (a) An automotive recycler.

 

15        (b) A vehicle scrap metal processor.

 

16        (c) A foreign salvage vehicle dealer licensed under this

 

17  act.

 

18        (d) A used or secondhand vehicle parts dealer.

 

19        (22) (21) The secretary of state may conduct periodic

 

20  reviews of the records of a dealer to determine whether adequate

 

21  notice is given to a transferee or lessee of a rebuilt salvage

 

22  vehicle of that vehicle's prior designation as a salvage vehicle.

 

23  The secretary of state may request an insurance company to

 

24  provide copies of salvage title documents and claims reports

 

25  involving major component parts to assist the secretary of state

 

26  in monitoring compliance with this act.

 


 1        (23) (22) A licensed automotive recycler, used or secondhand

 

 2  vehicle parts dealer, vehicle scrap metal processor, vehicle

 

 3  salvage pool operator, distressed vehicle transporter, foreign

 

 4  salvage vehicle dealer, or broker who has removed a scrap vehicle

 

 5  from this state for the purpose of rebuilding the vehicle or

 

 6  selling or leasing the vehicle to a person other than a vehicle

 

 7  scrap metal processor, shall receive an automatic suspension of

 

 8  its dealer license and of any salvage vehicle agent's license

 

 9  assigned to that dealer for a period of 30 days. Upon receipt by

 

10  the secretary of state of a written request from the dealer, the

 

11  dealer shall have the right to an immediate hearing on the matter

 

12  within that 30-day period.

 

13        (24) (23) For the purpose of this section, the estimated

 

14  costs of the repair parts shall be determined by using the

 

15  current published retail cost of original manufacturer equipment

 

16  parts or an estimate of the actual cost of the repair parts. The

 

17  estimated labor costs shall be computed by using the hourly rate

 

18  and time allocations which are reasonable and commonly assessed

 

19  in the repair industry in the community where the repairs are

 

20  performed.

 

21        (25) (24) A police agency shall charge a fee for an

 

22  inspection of a vehicle pursuant to under subsection (12). (13).

 

23  Each local authority with a police agency shall determine the

 

24  amount of the fee for inspections by that police agency, which

 

25  shall not exceed $100.00. The police agency shall credit the fee

 

26  to the budget of that police agency and use the fee for law

 

27  enforcement purposes that affect stolen vehicles, stolen vehicle

 


 1  parts, and salvage vehicle inspections. A local police agency

 

 2  shall compensate an off-duty and limited enforcement police

 

 3  officer for a salvage vehicle inspection.

 

 4        (26) (25) For the purpose of this section, "actual cash

 

 5  value" means the retail dollar value of a vehicle as determined

 

 6  by an objective vehicle evaluation using local market resources

 

 7  such as dealers or want ads or by an independent vehicle

 

 8  evaluation or vehicle appraisal service or by a current issue of

 

 9  a nationally recognized used vehicle guide for financial

 

10  institution appraisal purposes in this state.

 

11        Sec. 217f. A Except as provided in section 248c, a vehicle

 

12  salvage pool operator or broker shall not sell, assign, or

 

13  otherwise dispose of a vehicle for which a salvage certificate of

 

14  title is required, unless a salvage or scrap certificate of title

 

15  has been issued for the vehicle by the department.

 

16        Sec. 248c. (1) A vehicle salvage pool or broker shall not

 

17  sell, transfer, or release a distressed, late model vehicle to

 

18  anyone other than 1 or more of the following:

 

19        (a) The vehicle's former owner.

 

20        (b) A used or secondhand vehicle parts dealer.

 

21        (c) A vehicle scrap metal processor.

 

22        (d) A foreign salvage vehicle dealer licensed under this

 

23  act.

 

24        (e) A registered motor vehicle repair facility engaging in

 

25  body work.

 

26        (2) Subsection (1) applies until July 1, 1994.

 

27        (1) (3) A vehicle salvage pool, auction, or broker shall not

 


 1  sell, transfer, or release a distressed, late model vehicle to

 

 2  anyone other than 1 or more of the following:

 

 3        (a) The vehicle's former owner or lienholder of record as

 

 4  kept by the secretary of state, as applicable.

 

 5        (b) A licensed salvage agent of an automotive recycler.

 

 6        (c) A licensed salvage agent of a foreign salvage vehicle

 

 7  dealer.

 

 8        (4) Subsection (3) applies beginning July 1, 1994.

 

 9        (2) An insurance company may direct a salvage pool that

 

10  obtains possession of a vehicle to release the vehicle to the

 

11  owner or lienholder of record as kept by the secretary of state,

 

12  as applicable. The insurance company shall provide the salvage

 

13  pool with a release statement under subsection (3) authorizing

 

14  the salvage pool to release the vehicle to the vehicle's owner or

 

15  lienholder of record as kept by the secretary of state, as

 

16  applicable.

 

17        (3) A release statement authorizing a salvage pool to

 

18  release a vehicle to a vehicle's owner or lienholder of record as

 

19  kept by the secretary of state shall contain the following

 

20  information:

 

21        (a) The claim number relating to the vehicle.

 

22        (b) The name and address of the owner of the vehicle.

 

23        (c) The vehicle identification number and description of the

 

24  vehicle.

 

25        (d) The signature of an authorized representative of the

 

26  insurance company.

 

27        (4) Upon receiving a release statement concerning a vehicle

 


 1  from an insurance company under subsection (2), a salvage pool

 

 2  shall send a notice to the owner and any lienholder of record as

 

 3  kept by the secretary of state of the vehicle that the vehicle is

 

 4  available for pickup by the owner or lienholder of record as kept

 

 5  by the secretary of state. The notice shall be accompanied by an

 

 6  invoice for any outstanding charges owed to the salvage pool. The

 

 7  notice shall inform the owner and any lienholder of record as

 

 8  kept by the secretary of state that the owner and lienholder of

 

 9  record as kept by the secretary of state have 30 days from the

 

10  date of the notice and upon payment of applicable charges to pick

 

11  up the vehicle from the salvage pool. A notice under this

 

12  subsection shall be sent by the salvage pool to the applicable

 

13  address on record with the secretary of state by certified mail

 

14  or by another commercially available delivery service providing

 

15  proof of delivery.

 

16        (5) If the owner or lienholder of record as kept by the

 

17  secretary of state does not pick up the vehicle within the 30-day

 

18  period described in subsection (4), the salvage pool may sell the

 

19  vehicle for parts only to a licensed salvage agent of an

 

20  automotive recycler or to a licensed salvage agent of a foreign

 

21  salvage vehicle dealer if the vehicle is a distressed late-model

 

22  vehicle, or to a licensed salvage agent of an automotive

 

23  recycler, to a licensed salvage agent of a foreign salvage

 

24  vehicle dealer, or to a vehicle scrap metal processor if the

 

25  vehicle is not a distressed late-model vehicle. The salvage pool

 

26  shall provide the buyer and the secretary of state with a copy of

 

27  the release statement under subsection (2), proof of notice under

 


 1  subsection (4) to the owner and lienholder of record as kept by

 

 2  the secretary of state, and a bill of sale. The secretary of

 

 3  state shall use the documentation provided to issue the

 

 4  appropriate salvage or scrap certificate of title.

 

 5        Sec. 252a. (1) A person shall not abandon a vehicle in this

 

 6  state. It is presumed that the last titled owner of the vehicle

 

 7  is responsible for abandoning the vehicle unless the person

 

 8  provides a record of the sale as that term is defined in section

 

 9  240. A person who violates this subsection and who fails to

 

10  redeem the vehicle before disposition of the vehicle under

 

11  section 252g is responsible for a civil infraction and shall be

 

12  ordered to pay a civil fine of $50.00.

 

13        (2) As used in this section and sections 252a 252b through

 

14  252l, "abandoned vehicle" means either any of the following:

 

15        (a) A vehicle that has remained on private property without

 

16  the consent of the owner.

 

17        (b) A vehicle that has remained on public property for a

 

18  period of not less than 48 hours, or on a state trunk line

 

19  highway as described in section 1 of 1951 PA 51, MCL 247.651, as

 

20  follows:

 

21        (i) If a valid registration plate is affixed to the vehicle,

 

22  for a period of not less than 18 hours.

 

23        (ii) If a valid registration plate is not affixed to the

 

24  vehicle.

 

25        (c) A vehicle, other than a late-model vehicle, to which all

 

26  of the following apply:

 

27        (i) An insurance company has not acquired ownership of the

 


 1  vehicle under section 217c.

 

 2        (ii) The vehicle cannot be disposed of under section 248c.

 

 3        (iii) The vehicle has remained in the custody of a vehicle

 

 4  salvage pool or broker site without the consent of the vehicle

 

 5  salvage pool operator or the broker for a period of not less than

 

 6  60 days.

 

 7        (3) If a vehicle has remained on public property for the

 

 8  period of time described in subsection (2)(b) so that it

 

 9  qualifies as abandoned, a police agency having jurisdiction over

 

10  the vehicle or the agency's designee shall determine whether the

 

11  vehicle has been reported stolen and may affix a written notice

 

12  to the vehicle. The written notice shall contain the following

 

13  information:

 

14        (a) The date and time the notice was affixed.

 

15        (b) The name and address of the police agency taking the

 

16  action.

 

17        (c) The name and badge number of the police officer affixing

 

18  the notice.

 

19        (d) The date and time the vehicle may be taken into custody

 

20  and stored at the owner's expense or scrapped if the vehicle is

 

21  not removed.

 

22        (e) The year, make, and vehicle identification number of the

 

23  vehicle, if available.

 

24        (4) If the vehicle is an abandoned vehicle, the police

 

25  agency or the agency's designee may have the towing agency take

 

26  the vehicle into custody.

 

27        (5) A police agency that has received a vehicle taken into

 


 1  custody as abandoned shall do all of the following:

 

 2        (a) Recheck to determine if the vehicle has been reported

 

 3  stolen.

 

 4        (b) Within 24 hours after the vehicle is taken into custody,

 

 5  enter the vehicle as abandoned into the law enforcement

 

 6  information network, and notify the secretary of state through

 

 7  the law enforcement information network that the vehicle has been

 

 8  taken into custody as abandoned. Each notification shall contain

 

 9  the following information:

 

10        (i) The year, make, and vehicle identification number of the

 

11  vehicle, if available.

 

12        (ii) The address or approximate location from which the

 

13  vehicle was taken into custody.

 

14        (iii) The date on which the vehicle was taken into custody.

 

15        (iv) The name and address of the police agency that had the

 

16  vehicle taken into custody.

 

17        (v) The name and business address of the custodian of the

 

18  vehicle.

 

19        (vi) The name of the court that has jurisdiction over the

 

20  case.

 

21        (c) Within 7 days after receiving notice under subdivision

 

22  (b) that the vehicle has been taken into custody, the secretary

 

23  of state shall do both of the following:

 

24        (i) Send to the last titled owner and secured party, as shown

 

25  by the records of the secretary of state as described in section

 

26  221 or 237, by first-class mail or personal service, notice that

 

27  the vehicle is considered abandoned. The form for the notice

 


 1  shall be furnished by the secretary of state. Each notice form

 

 2  shall contain the following information:

 

 3        (A) The year, make, and vehicle identification number of the

 

 4  vehicle if available.

 

 5        (B) The address or approximate location from which the

 

 6  vehicle was taken into custody.

 

 7        (C) The date on which the vehicle was taken into custody.

 

 8        (D) The name and address of the police agency that had the

 

 9  vehicle taken into custody.

 

10        (E) The name and business address of the custodian of the

 

11  vehicle.

 

12        (F) The procedure to redeem the vehicle.

 

13        (G) The procedure to contest the fact that the vehicle is

 

14  considered abandoned or the reasonableness of the towing fees and

 

15  daily storage fees.

 

16        (H) A form petition that the owner may file in person or by

 

17  mail with the specified court that requests a hearing on the

 

18  police agency's action.

 

19        (I) A warning that the failure to redeem the vehicle or to

 

20  request a hearing within 20 days after the date of the notice may

 

21  result in the sale of the vehicle and the termination of all

 

22  rights of the owner and the secured party to the vehicle or the

 

23  proceeds of the sale.

 

24        (ii) Enter the information described in subparagraph (i) on a

 

25  website maintained by the department for public use in locating

 

26  vehicles that are removed under this section as abandoned. The

 

27  department shall maintain the data on the website for 1 year or

 


 1  until the vehicle is disposed of under this act, whichever occurs

 

 2  first.

 

 3        (6) The owner may contest the fact that the vehicle is

 

 4  considered abandoned or the reasonableness of the towing fees and

 

 5  daily storage fees by requesting a hearing and posting a bond

 

 6  equal to $40.00 plus the amount of the accrued towing and storage

 

 7  fees. A request for a hearing shall be made by filing a petition

 

 8  with the court specified in the notice described in subsection

 

 9  (5)(c) within 20 days after the date of the notice. If the owner

 

10  requests a hearing, the matter shall be resolved after a hearing

 

11  conducted under sections 252e and 252f. An owner who requests a

 

12  hearing may obtain release of the vehicle by posting a towing and

 

13  storage bond in an amount equal to the $40.00 plus the accrued

 

14  towing and storage fees with the court. The owner of a vehicle

 

15  who requests a hearing may obtain release of the vehicle by

 

16  paying a fee of $40.00 to the court and the accrued towing and

 

17  storage fees instead of posting the towing and storage bond.

 

18        (7) If the owner does not request a hearing under subsection

 

19  (6), he or she may obtain the release of the vehicle by paying a

 

20  fee of $40.00 and the accrued towing and storage fees to the

 

21  custodian of the vehicle. The custodian of the vehicle shall

 

22  forward $25.00 of the fee to the secretary of state within 30

 

23  days after receipt in a manner prescribed by the secretary of

 

24  state, who shall deposit the fee into the abandoned vehicle fund

 

25  created in section 252h.

 

26        (8) If the owner does not redeem the vehicle or request a

 

27  hearing within 20 days after the date of the notice described in

 


 1  subsection (5)(c), the secured party may obtain the release of

 

 2  the vehicle by paying a $40.00 fee plus the accrued charges to

 

 3  the custodian of the vehicle. The custodian of the vehicle shall

 

 4  forward $25.00 of the fee to the secretary of state, who shall

 

 5  deposit the fee into the abandoned vehicle fund created in

 

 6  section 252h.

 

 7        (9) If a vehicle has remained on private property without

 

 8  the consent of the property owner, the owner of the private

 

 9  property may have the vehicle taken into custody as an abandoned

 

10  vehicle by contacting a local towing agency. A local towing

 

11  agency is considered a towing agency whose storage lot is located

 

12  within 15 miles from the border of the local unit of government

 

13  having jurisdiction over the abandoned vehicle.

 

14        (10) Before removing the vehicle from private property, the

 

15  towing agency shall provide reasonable notice by telephone, or

 

16  otherwise, to a police agency having jurisdiction over the

 

17  vehicle that the vehicle is being removed. The police agency

 

18  shall determine if the vehicle has been reported stolen and enter

 

19  the vehicle into the law enforcement information network as an

 

20  abandoned vehicle. Verification by the police agency of

 

21  compliance with this section is not necessary and is not a

 

22  predicate to the entrance of the vehicle into the law enforcement

 

23  information network.

 

24        (11) Within 24 hours after taking the abandoned vehicle into

 

25  custody, the police agency shall notify the secretary of state

 

26  through the law enforcement information network that the vehicle

 

27  has been taken into custody as abandoned. Each notification shall

 


 1  contain the following information:

 

 2        (a) The year, make, and vehicle identification number of the

 

 3  vehicle if available.

 

 4        (b) The address or approximate location from which the

 

 5  vehicle was taken into custody.

 

 6        (c) The date on which the vehicle was taken into custody.

 

 7        (d) The name and address of the police agency that had the

 

 8  vehicle taken into custody.

 

 9        (e) The name and business address of the custodian of the

 

10  vehicle.

 

11        (f) The name of the court that has jurisdiction over the

 

12  case.

 

13        (12) Within 7 days after being notified under subsection

 

14  (11), the secretary of state shall do both of the following:

 

15        (a) Send to the owner and secured party, as shown by the

 

16  records of the secretary of state, by first-class mail or

 

17  personal service, notice that the vehicle is considered

 

18  abandoned. The form for the notice shall be furnished by the

 

19  secretary of state. Each notice form shall contain the following

 

20  information:

 

21        (i) The year, make, and vehicle identification number of the

 

22  vehicle if available.

 

23        (ii) The location from which the vehicle was taken into

 

24  custody.

 

25        (iii) The date on which the vehicle was taken into custody.

 

26        (iv) The name of the towing agency that had the vehicle taken

 

27  into custody.

 


 1        (v) The business address of the custodian of the vehicle.

 

 2        (vi) The procedure to redeem the vehicle.

 

 3        (vii) The procedure to contest the fact that the vehicle is

 

 4  considered abandoned or the reasonableness of the towing fees and

 

 5  daily storage fees.

 

 6        (viii) A form petition that the owner may file in person or by

 

 7  mail with the specified court that requests a hearing on the

 

 8  custodian's action.

 

 9        (ix) A warning that the failure to redeem the vehicle or to

 

10  request a hearing within 20 days after the date of the notice may

 

11  result in the sale of the vehicle and the termination of all

 

12  rights of the owner and the secured party to the vehicle or the

 

13  proceeds of the sale.

 

14        (b) Enter the information described in subdivision (a) on a

 

15  website maintained by the department for public use in locating

 

16  vehicles that are removed under this section as abandoned.

 

17        (13) The owner may contest the fact that the vehicle is

 

18  abandoned or, unless the towing fees and daily storage fees are

 

19  established by contract with the local governmental unit or local

 

20  law enforcement agency and comply with section 252i, the

 

21  reasonableness of the towing fees and daily storage fees by

 

22  requesting a hearing. A request for a hearing shall be made by

 

23  filing a petition with the court specified in the notice within

 

24  20 days after the date of the notice. If the owner requests a

 

25  hearing, the matter shall be resolved after a hearing conducted

 

26  under section 252f. An owner who requests a hearing may obtain

 

27  release of the vehicle by posting with the court a towing and

 


 1  storage bond in an amount equal to $40.00 plus the accrued towing

 

 2  and storage fees. The owner of a vehicle who requests a hearing

 

 3  may obtain release of the vehicle by paying a fee of $40.00 to

 

 4  the court plus the towing and storage fees instead of posting the

 

 5  towing and storage bond. An owner requesting a hearing but not

 

 6  taking possession of the vehicle shall post with the court a

 

 7  towing and storage bond in an amount equal to $40.00 plus the

 

 8  accrued towing and storage fees.

 

 9        (14) If the owner does not request a hearing, he or she may

 

10  obtain the release of the vehicle by paying a fee of $40.00 plus

 

11  the accrued charges to the custodian of the vehicle. The

 

12  custodian shall forward $25.00 of the fee collected under this

 

13  subsection to the secretary of state within 30 days after receipt

 

14  in a manner prescribed by the secretary of state, who shall

 

15  deposit the fee into the abandoned vehicle fund created in

 

16  section 252h.

 

17        (15) If the owner does not redeem the vehicle or request a

 

18  hearing within 20 days after the date of the notice, the secured

 

19  party may obtain the release of the vehicle by paying a fee of

 

20  $40.00 and the accrued towing and storage fees to the custodian

 

21  of the vehicle. The custodian shall forward $25.00 of the fee

 

22  collected under this subsection to the secretary of state within

 

23  30 days after receipt in a manner prescribed by the secretary of

 

24  state, who shall deposit the fee into the abandoned vehicle fund

 

25  created in section 252h.

 

26        (16) Not less than 20 days after the disposition of the

 

27  hearing described in subsection (6) or, if a hearing is not

 


 1  requested, not less than 20 days after the date of the notice,

 

 2  the police agency if the abandoned vehicle is found on public

 

 3  property, or the custodian of the vehicle if the vehicle is found

 

 4  on private property, shall offer the vehicle for sale at a public

 

 5  sale under section 252g.

 

 6        (17) If the ownership of a vehicle that is considered

 

 7  abandoned under this section cannot be determined either because

 

 8  of the condition of the vehicle identification numbers or because

 

 9  a check with the records of the secretary of state as described

 

10  in section 221 or 237 does not reveal ownership, the police

 

11  agency may sell the vehicle at public sale as provided in section

 

12  252g not less than 30 days after public notice of the sale has

 

13  been published.

 

14        (18) The secretary of state shall release a vehicle for

 

15  disposition under section 252b or 252g within 45 days after the

 

16  vehicle is entered into the law enforcement information network

 

17  as an abandoned vehicle.

 

18        Enacting section 1. This amendatory act takes effect 90 days

 

19  after the date it is enacted into law.