HOUSE BILL No. 4711

 

June 7, 2011, Introduced by Reps. Kurtz, Foster, Daley, Scott, Gilbert, Bumstead, Damrow, Kowall, Huuki and Callton and referred to the Committee on Commerce.

 

     A bill to amend 1966 PA 224, entitled

 

"Retail installment sales act,"

 

by amending section 2 (MCL 445.852), as amended by 1995 PA 167.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Cash sale price" means the price of a good or service a

 

retail buyer would pay if he or she paid for the good or service in

 

cash, and that is stated in a retail installment contract or in a

 

sales slip or other memorandum furnished by a retail seller to a

 

retail buyer pursuant to a retail charge agreement for that good or

 

service. The cash sale price may include any taxes and charges for

 

delivery, installation, servicing, repairs, alterations, or

 

improvements.

 


     (b) (a) "Goods" means all tangible chattels purchased

 

primarily for personal, family, or household use and not for

 

commercial, agricultural, or business use. Goods include chattels

 

that are furnished or used for the modernization, rehabilitation,

 

repair, alteration, improvement, or construction of real property

 

so as to in a manner that they become a severable or nonseverable

 

part of the property, if those chattels are not covered by the home

 

improvement finance act, Act No. 332 of the Public Acts of 1965,

 

being sections 445.1101 to 445.1431 of the Michigan Compiled Laws

 

1965 PA 332, MCL 445.1101 to 445.1431. Goods include merchandise

 

certificates or coupons issued by a retail seller that are not

 

redeemable in cash and that are to be used in their face amount

 

instead of cash, in exchange for goods or services sold by the

 

seller. Goods do not include a motor vehicle, money, a thing in

 

action, intangible personal property, or their equivalent.

 

     (b) "Services" means work, labor, advice, counseling, or

 

instruction if purchased primarily for personal, family, or

 

household use and not for commercial or business use. Services do

 

not include any of the following:

 

     (i) Work, labor, advice, counseling, or instruction for which

 

the cost is fixed by law or subject to the approval or disapproval

 

of the United States or this state.

 

     (ii) Educational counseling or instruction provided by an

 

accredited college or university or a primary or secondary school

 

providing education required by the state.

 

     (iii) Counseling or instruction of a kindergarten or nursery

 

school.

 


     (c) "Holder" means a retail seller of goods or services

 

covered by a retail installment contract or retail charge

 

agreement, or an assignee of that seller.

 

     (d) (c) "Motor vehicle" means a self-propelled device by which

 

a person or property may be transported upon a public highway.

 

Motor vehicle that term as defined in section 2 of the motor

 

vehicle sales finance act, 1950 (Ex Sess) PA 27, MCL 492.102. The

 

term does not include any of the following:

 

     (i) A a mobile home as that term is defined in section 719a of

 

the Michigan vehicle code, Act No. 300 of the Public Acts of 1949,

 

being section 257.719a of the Michigan Compiled Laws 1949 PA 300,

 

MCL 257.719a.

 

     (ii) Tractors, motorcycles, trailers and semitrailers, power

 

shovels, road machinery, agricultural machinery, and other

 

machinery not designed primarily for highway transportation but

 

which incidentally transports persons or property on a public

 

highway. Motor vehicle also does not include devices that move upon

 

or are guided by a track or travel through the air.

 

     (e) "Official fees" means fees prescribed by law and charged

 

and paid by the seller or holder for filing, recording, or

 

otherwise perfecting, releasing, or satisfying, a retained title,

 

lien, or other security interest created by a retail installment

 

transaction.

 

     (f) "Person" means an individual, partnership, joint venture,

 

corporation, limited liability company, association, or other legal

 

entity.

 

     (g) "Principal balance" means the cash sale price of the goods

 


or services covered by a retail installment contract plus the

 

amounts, if any, included in the cash sale price if a separate

 

identified charge is made and stated in the contract for insurance

 

or official fees, less the amount of the buyer's down payment in

 

money or goods, or both.

 

     (h) (d) "Retail buyer" or "buyer" means a person who that buys

 

or agrees to buy goods or obtain services or agrees to have

 

services rendered or furnished from a retail seller.

 

     (e) "Retail seller" or "seller" means a person regularly and

 

principally engaged in the business of selling goods or services to

 

retail buyers, but does not include the services of a professional

 

person licensed by the state to perform legal or dental services or

 

medical services as a medical doctor or a doctor of osteopathy.

 

     (f) "Retail installment transaction" means any transaction in

 

which a retail buyer purchases goods or services from a retail

 

seller pursuant to a retail installment contract or a retail charge

 

agreement that provides for a time price differential and under

 

which the buyer agrees to pay the unpaid balance in 1 or more

 

installments. Retail installment transaction does not include a

 

rental-purchase agreement as defined in section 2 of the rental-

 

purchase agreement act, Act No. 424 of the Public Acts of 1984,

 

being section 445.952 of the Michigan Compiled Laws.

 

     (i) "Retail charge agreement" means an instrument prescribing

 

the terms of a secured or unsecured retail installment transaction

 

that may be made under the instrument from time to time and under

 

the terms of which a time price differential is to be computed in

 

relation to the buyer's unpaid balance from time to time.

 


     (j) (g) "Retail installment contract" means an instrument

 

entered into in this state evidencing a secured or unsecured retail

 

installment transaction, and includes a chattel mortgage, a

 

security agreement, a conditional sale contract, or a bailment or

 

lease contract if the bailment or lease contract requires the

 

bailee or lessee to pay an amount equal to or greater than the

 

value of the bailed or leased good, and additionally provides that

 

the bailee or lessee shall become, for no additional consideration

 

or for nominal consideration, the owner of the good upon on full

 

compliance with the bailment or lease contract. Retail installment

 

contract does not include any of the following:

 

     (i) A rental-purchase agreement as defined in section 2 of the

 

rental-purchase agreement act, Act No. 424 of the Public Acts of

 

1984 1984 PA 424, MCL 445.952.

 

     (ii) A retail charge agreement.

 

     (iii) An instrument evidencing a sale made pursuant to a retail

 

charge agreement.

 

     (h) "Retail charge agreement" means an instrument prescribing

 

the terms of a secured or unsecured retail installment transaction

 

that may be made under the instrument from time to time and under

 

the terms of which a time price differential is to be computed in

 

relation to the buyer's unpaid balance from time to time.

 

     (k) "Retail installment transaction" means any transaction in

 

which a retail buyer purchases goods or services from a retail

 

seller pursuant to a retail installment contract or a retail charge

 

agreement that provides for a time price differential and under

 

which the buyer agrees to pay the unpaid balance in 1 or more

 


installments. Retail installment transaction does not include a

 

rental-purchase agreement as defined in section 2 of the rental-

 

purchase agreement act, 1984 PA 424, MCL 445.952.

 

     (l) "Retail seller" or "seller" means a person regularly and

 

principally engaged in the business of selling goods or services to

 

retail buyers, but does not include the services of a professional

 

person licensed by the state to perform legal or dental services or

 

medical services as a medical doctor or a doctor of osteopathy.

 

     (m) "Services" means work, labor, advice, counseling, or

 

instruction if purchased primarily for personal, family, or

 

household use and not for commercial or business use. Services do

 

not include any of the following:

 

     (i) Work, labor, advice, counseling, or instruction for which

 

the cost is fixed by law or subject to the approval or disapproval

 

of the United States or this state.

 

     (ii) Educational counseling or instruction provided by an

 

accredited college or university or a primary or secondary school

 

providing education required by the state.

 

     (iii) Counseling or instruction of a kindergarten or nursery

 

school.

 

     (n) (i) "Time price differential" means the amount a buyer

 

pays or is required to pay for the privilege of purchasing goods or

 

services in installments over a period of time. Time price

 

differential does not include the amount, if any, charged for

 

insurance premiums, delinquency charges, attorney fees, court

 

costs, or official fees, but does include all other charges

 

included in a finance charge as that term is defined in section 106

 


of chapter I of the truth in lending act, title I of the consumer

 

credit protection act, Public Law 90-321, 15 U.S.C. USC 1605.

 

     (j) "Cash sale price" means the price of a good or service a

 

retail buyer would pay if he or she paid for the good or service in

 

cash, and that is stated in a retail installment contract or in a

 

sales slip or other memorandum furnished by a retail seller to a

 

retail buyer pursuant to a retail charge agreement for that good or

 

service. The cash sale price may include any taxes and charges for

 

delivery, installation, servicing, repairs, alterations, or

 

improvements.

 

     (k) "Official fees" means fees prescribed by law and charged

 

and paid by the seller or holder for filing, recording, or

 

otherwise perfecting, releasing, or satisfying, a retained title,

 

lien, or other security interest created by a retail installment

 

transaction.

 

     (o) (l) "Time sale price" means the cash sale price of goods or

 

services and the amount, if any, included for official fees, the

 

time price differential, and, if a separate identified charge is

 

made, for insurance.

 

     (m) "Principal balance" means the cash sale price of the goods

 

or services covered by a retail installment contract plus the

 

amounts, if any, included in the cash sale price if a separate

 

identified charge is made and stated in the contract for insurance

 

or official fees, less the amount of the buyer's down payment in

 

money or goods, or both.

 

     (n) "Holder" means the retail seller of goods or services

 

covered by a retail installment contract or retail charge

 


agreement, or his or her assignee.

 

     (o) "Person" means an individual, partnership, joint venture,

 

corporation, association, or other legal entity.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 4710(request no.

 

01200'11) of the 96th Legislature is enacted into law.