June 29, 2010, Introduced by Senator GILBERT and referred to the Committee on Transportation.
A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
by amending section 235 (MCL 257.235), as amended by 2002 PA 652.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 235. (1) If the transferee of a vehicle is a new motor
vehicle dealer or a used vehicle dealer that acquires the vehicle
for resale, the dealer is not required to obtain a new registration
of the vehicle or forward the certificate of title to the secretary
of
state, but shall retain and have in the dealer's immediate
possession
the assigned certificate of title with the odometer
information
properly completed maintain
proof of ownership and
accurate odometer information for the vehicle while held for
resale,
except as otherwise provided in this section. A dealer
shall
obtain a certificate of title for a vehicle having a salvage
certificate
of title before the dealer may operate the vehicle
under
dealer's license plates.
(2) Upon transferring title or interest to another person that
is not a dealer, the dealer shall complete an assignment and
warranty of title upon the certificate of title, salvage
certificate of title, or dealer reassignment of title form and make
an application for registration and a new title as provided in
section 217(4).
(3) (2)
The dealer or transferee is liable
for all damages
arising from the operation of the vehicle while the vehicle is in
the dealer's or transferee's possession.
(4) (3)
Upon transferring title or interest
to another dealer,
the dealer shall complete an assignment and warranty of title upon
the certificate of title, salvage certificate of title, or dealer
reassignment of title form and deliver it to the licensed dealer to
which the transfer is made.
(5) (4)
The secretary of state shall
prescribe the dealer
reassignment of title form. The form shall contain the title number
of the accompanying title; the name, address, and, if applicable,
dealer license number of the transferee; the year, make, model,
body type, and vehicle identification number of the vehicle; the
name, address, dealer number, and signature of the transferor; an
odometer
mileage statement pursuant to as
required under section
233a; and any other information the secretary of state requires.
(6) A dealer shall obtain a certificate of title for a vehicle
having a salvage certificate of title before the dealer may operate
the vehicle under a dealer's registration plate.
(7) (5)
This section does not prohibit a
dealer from selling a
buy back vehicle while the certificate of title is in the
possession of a manufacturer that obtained the certificate of title
under the manufacturer's buy back vehicle program. The manufacturer
shall mail the certificate of title to the dealer within 5 business
days after the manufacturer's receipt of a signed statement from
the purchaser of the vehicle acknowledging he or she was informed
by the dealer that the manufacturer acquired title to the vehicle
as
the result of an arbitration proceeding, pursuant to under a
customer satisfaction policy adopted by the manufacturer, or under
1986 PA 87, MCL 257.1401 to 257.1410, or a similar law of another
state.
(8) (6)
This section does not prohibit a
dealer from selling
an off lease vehicle while the certificate of title is in the
possession of a lessor. The lessor shall mail the certificate of
title to the dealer within 21 days after the lessor receives the
purchase price of the vehicle and any other fees and charges due
under the lease.
(9) This section does not prohibit a dealer from selling a
vehicle that is subject to an inventory loan while the certificate
of title is in the possession of the dealer's inventory lender. The
dealer's inventory lender shall mail or otherwise deliver
possession of the certificate of title to the dealer or dealer's
authorized designee not more than 5 days after the dealer's
inventory lender receives either of the following:
(a) The outstanding principal balance and any other fees and
charges due under the inventory loan.
(b) A sworn written statement from the vehicle purchaser
evidencing the purchaser's status as a buyer in the ordinary course
of business under section 9320 of the uniform commercial code, 1962
PA 174, MCL 440.9320, or a similar law of another state.