HB-5577, As Passed Senate, December 14, 2016

SUBSTITUTE FOR

HOUSE BILL NO. 5577

A bill to amend 1949 PA 300, entitled

"Michigan vehicle code,"

by amending sections 226, 248, 248h, and 802 (MCL 257.226, 257.248,

257.248h, and 257.802), section 226 as amended by 2004 PA 163,

section 248 as amended by 2004 PA 495, section 248h as added by

1993 PA 300, and section 802 as amended by 2015 PA 78, and by

adding sections 248k, 250a, 250b, and 250c.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 226. (1) A vehicle registration issued by the secretary

of state expires on the owner's birthday, unless another expiration

date is provided for under this act or unless the registration is

for the following vehicles, in which case registration expires on

the last day of February:

(a) A commercial vehicle except for a commercial vehicle

issued a registration under the international registration plan or

a pickup truck or van owned by an individual.

(b) Except for a trailer or semitrailer issued a registration

under the international registration plan, a trailer or semitrailer

owned by a business, corporation, or person other than an

individual; or a pole trailer.

(2) ~~Until February 1, 2005, the expiration date for a~~

~~registration issued for a motorcycle is March 31. Beginning~~

~~February 1, 2005, the~~ The expiration date for a registration issued

for a motorcycle is the motorcycle owner's birthday.

(3) The expiration date for a registration bearing the letters

"SEN" or "REP" is February 1.

(4) In the case of a vehicle owned by a business, corporation,

or an owner other than an individual, the secretary of state may

assign or reassign the expiration date of the registration.

(5) The secretary of state shall do all of the following:

(a) After the October 1 immediately preceding the year

designated on the registration, issue a registration upon

application and payment of the proper fee for a commercial vehicle,

other than a pickup or van owned by an individual; or a trailer

owned by a business, corporation, or person other than an

individual.

(b) Beginning 60 days before the expiration date assigned on

an international registration plan registration plate, issue a

registration under section 801g upon application and payment of the

proper apportioned fee for a commercial vehicle engaged in

interstate commerce.

before the expiration date assigned by the secretary of state,

issue a registration for a vehicle other than those designated in

subsection (1)(a) or (b). However, if an owner whose registration

period begins 45 days before his or her birthday will be out of the

state during the 45 days immediately preceding expiration of a

registration or for other good cause shown cannot apply for a

renewal registration within the 45-day period, application for a

renewal registration may be made not more than 6 months before

expiration.

(6) Except as otherwise provided in this subsection, the

secretary of state, upon application and payment of the proper fee,

shall issue a registration for a vehicle or a motorcycle to a

resident that shall expire on the owner's birthday. If the owner's

next birthday is at least 6 months but not more than 12 months in

the future, the owner shall receive a registration valid until the

owner's next birthday. If the owner's next birthday is less than 6

months in the future, the owner shall receive a registration valid

until the owner's birthday following the owner's next birthday. The

tax required under this act for a registration described in this

subsection shall be either of the following:

(a) For an original registration, the tax shall bear the same

relationship to the tax required under section 801 for a 12-month

registration as the length of the registration bears to 12 months.

(b) For a renewal of a registration, either of the following:

(i) For a registration that is for at least 6 months but not

more than 12 months, the same amount as for 12 months.

(ii) For a renewal of a registration that is for more than 12

months, 2 times the amount for 12 months.

Partial months shall be considered as whole months in the

calculation of the required tax and in the determination of the

length of time between the application for a registration and the

owner's next birthday. The tax required for that registration shall

be rounded off to whole dollars as provided in section 801.

(7) A certificate of title shall remain valid until canceled

by the secretary of state for cause or upon a transfer of an

interest shown on the certificate of title.

(8) The secretary of state, upon request, shall issue special

registration for commercial vehicles, valid for 6 months after the

date of issue, if the full registration fee exceeds $50.00, on the

payment of 1/2 the full registration fee and a service charge as

enumerated in section 802(1).

(9) The secretary of state may issue a special registration

for each of the following:

(a) A new vehicle purchased or leased outside of this state

and delivered in this state to the purchaser or lessee by the

manufacturer of that vehicle for removal to a place outside of this

state, if a certification is made that the vehicle will be

primarily used, stored, and registered outside of this state and

will not be returned to this state by the purchaser or lessee for

use or storage.

(b) A vehicle purchased or leased in this state and delivered

to the purchaser or lessee by a dealer or by the owner of the

vehicle for removal to a place outside of this state, if a

certification is made that the vehicle will be primarily used,

stored, and registered outside of this state and will not be

returned to this state by the purchaser or lessee for use or

storage.

(10) A special registration issued under subsection (9) is

valid for not more than 14 30 days after the date of issuance, and

a fee shall be collected for each special registration as provided

in section 802(3). The special registration may be in the form

determined by the secretary of state. If a dealer makes a retail

sale or lease of a vehicle to a purchaser or lessee who is

qualified and eligible to obtain a special registration, the dealer

shall apply for the special registration for the purchaser or

lessee. If a person other than a dealer sells or leases a vehicle

to a purchaser or lessee who is qualified and eligible to obtain a

special registration, the purchaser or lessee shall appear in

person, or by a person exercising the purchaser's or lessee's power

of attorney, at an office of the secretary of state and furnish a

certification that the person is the bona fide purchaser or lessee

or that the person has granted the power of attorney, together with

other forms required for the issuance of the special registration

and provide the secretary of state with proof that the vehicle is

covered by a Michigan no-fault insurance policy issued pursuant to

section 3101 of the insurance code of 1956, 1956 PA 218, MCL

500.3101, or proof that the vehicle is covered by a policy of

insurance issued by an insurer pursuant to section 3163 of the

insurance code of 1956, 1956 PA 218, MCL 500.3163. The

certification required in this subsection shall contain all of the

following:

(a) The address of the purchaser or lessee.

(b) A statement that the vehicle is purchased or leased for

registration outside of this state.

stored, and registered outside of this state.

(d) The name of the jurisdiction in which the vehicle is to be

registered.

(e) Other information requested by the secretary of state.

~~(11) Upon request, the secretary of state may issue a~~

~~registration valid for 6 months after the date of issuance for use~~

~~on a trailer or semitrailer weighing 1,500 pounds or less and that~~

~~is used for recreational purposes, upon payment of 1/2 the full~~

~~registration fee imposed under section 801(1)(~~l~~). This subsection~~

~~does not apply after October 1, 2003.~~

(11) ~~(12)~~ In the case of a commercial vehicle, trailer, or

semitrailer issued a registration under the international

registration plan, the secretary of state in mutual agreement with

the owner may assign or reassign the expiration date of the

registration. However, the expiration date agreed to shall be

either March 31, June 30, September 30, or December 31. Renewals

expiring on or after September 30, 1993 shall be for a minimum of

at least 12 months if there is a change in the established

expiration date.

(12) ~~(13)~~ The expiration date for a multiyear registration

issued for a leased vehicle shall be the date the lease expires but

shall not be for a period longer than 24 months.

Sec. 248. (1) The secretary of state shall not grant a dealer

license under this section until the secretary conducts an

investigation ~~is made~~ of the applicant's qualifications under this

act, except that this subsection does not apply to ~~license~~

~~renewals.~~ a license renewal. The secretary of state shall ~~make~~

conduct the investigation within 15 days after receiving the

application and ~~make~~ prepare a report on the investigation.

(2) An applicant for a new vehicle dealer or a used or

secondhand vehicle dealer or broker license shall include a

properly executed bond or a bond renewal certificate, approved by

the secretary of state, with the license application. If a renewal

certificate is used, the bond is considered renewed for each

succeeding year in the same amount and with the same effect as an

original bond. The bond shall be in the ~~sum~~ amount of $10,000.00.

~~with good and sufficient surety to be approved by the secretary of~~

~~state.~~ The bond shall indemnify or reimburse a purchaser, seller,

lessee, financing agency, or governmental agency for monetary loss

caused through fraud, cheating, or misrepresentation in the conduct

of the vehicle business whether the fraud, cheating, or

misrepresentation was made by the dealer or by an employee, agent,

or salesperson of the dealer. The surety shall make indemnification

or reimbursement for a monetary loss only after a judgment based on

fraud, cheating, or misrepresentation ~~has been~~ is entered in a

court of record against the licensee or a final order that the

licensee has engaged in fraud, cheating, or misrepresentation is

issued by the secretary of state after an administrative hearing.

The bond shall also indemnify or reimburse the state for any sales

tax deficiency as provided in the general sales tax act, 1933 PA

167, MCL 205.51 to 205.78, or use tax deficiency as provided in the

use tax act, 1937 PA 94, MCL 205.91 to 205.111, for the year in

which the bond is in force. The surety shall make indemnification

or reimbursement only after a final judgment ~~has been~~ is entered in

a court of record against the licensee or a final order is issued

by the secretary of state after an administrative hearing. A dealer

or applicant ~~who has furnished satisfactory proof~~ that provides

proof that is satisfactory to the secretary of state that a bond

similar to the bond required by this subsection is executed and in

force is exempt from the bond ~~provisions set forth in~~ requirements

of this subsection. The aggregate liability of the surety shall not

exceed the sum of the bond. The surety on the bond may cancel the

bond ~~upon~~ by giving ~~30 days'~~ notice in writing to the secretary of

state of the cancellation at least 30 days before the effective

date of the cancellation and ~~thereafter~~ is not liable for a breach

of condition occurring after the effective date of the

cancellation.

(3) An applicant for a new vehicle dealer or a used or

secondhand vehicle dealer license shall apply for not less than 2

dealer plates ~~as provided by~~ under section 245 and shall include

with the application the proper fee ~~as provided by~~ for those plates

under section 803.

(4) As a condition precedent to the granting of a license, a

dealer shall file with the secretary of state an irrevocable

written stipulation, authenticated by the applicant, stipulating

and agreeing that legal process affecting the dealer, served on the

secretary of state or a deputy of the secretary of state, has the

same effect as if personally served on the dealer. This appointment

remains in force as long as the dealer has any outstanding

liability within this state.

(5) A person shall not carry on or conduct the business of

buying, selling, brokering, leasing, negotiating a lease, or

dealing in 5 or more vehicles of a type required to be titled under

this act in a 12-month period unless the person obtains a dealer

license from the secretary of state authorizing the carrying on or

conducting of that business. A person shall not carry on or conduct

the business of buying, selling, brokering, leasing, negotiating a

lease, or dealing in 5 or more distressed, late model vehicles or

salvageable parts to 5 or more of those vehicles in a 12-month

period unless the person obtains a used or secondhand vehicle parts

dealer, an automotive recycler, or a salvage pool license from the

secretary of state or is an insurance company admitted to conduct

business in this state. A person shall not carry on or conduct the

business of buying 5 or more vehicles in a 12-month period to

process into scrap metal or store or display 5 or more vehicles in

a 12-month period as an agent or escrow agent of an insurance

company unless the person obtains a dealer license from the

secretary of state. A vehicle scrap metal processor ~~who~~ that does

not purchase vehicles or salvageable parts from unlicensed persons

is not required to obtain a dealer license. A person from another

state shall not purchase, sell, or otherwise deal in distressed,

late model vehicles or salvageable parts unless the person obtains

a foreign salvage vehicle dealer license from the secretary of

state ~~as prescribed~~ under section 248b. A person, including a

dealer, shall not purchase or acquire a distressed, late model

vehicle or a salvageable part through a salvage pool, auction, or

broker without a license as a salvage vehicle agent. The secretary

of state shall investigate and seek prosecution, if necessary, of

persons allegedly conducting a business without a license.

(6) The application for a dealer license shall be in the form

prescribed by the secretary of state and shall be signed by the

applicant. In addition to other information as may be required by

the secretary of state, the application shall include all of the

following:

(a) ~~Name of~~ The name of the applicant.

(b) ~~Location~~ The location of the applicant's established place

of business in this state, together with written verification from

the appropriate governing or zoning authority that the established

place of business meets all applicable municipal and zoning

requirements.

~~to be conducted.~~

(d) If the business is a corporation, the state of

incorporation.

(e) ~~Name,~~ If the business is a sole proprietorship or

partnership, the name, address, and date of birth ~~, and social~~

~~security number~~ of each owner or partner; ~~and,~~ if the business is a

corporation, the name, address, and date of birth ~~, and social~~

~~security number~~ of each of the principal officers.

(f) The county in which the applicant will conduct business is

~~to be conducted~~ and the address of each place of business in that

county.

(g) If the dealer's business is the sale of new vehicles, ~~are~~

~~to be sold,~~ the make ~~to be handled.~~ or makes of those vehicles.

Each new vehicle dealer shall send with the application for license

a certification that the dealer holds a bona fide contract to act

as factory representative, factory distributor, or distributor

representative to sell at retail ......... (the make of vehicle to

be sold) and that the contract meets the requirements for a dealer

agreement under 1981 PA 118, MCL 445.1561 to 445.1583.

(h) A statement of the previous history, record, and

associations of the applicant and of each owner, partner, officer,

~~and~~ or director of the applicant. The statement shall be sufficient

to establish to the satisfaction of the secretary of state the

business reputation and character of the applicant.

(i) A statement showing whether the applicant has previously

applied for a license, the result of the application, and whether

the applicant has ever been the holder of a dealer license that was

revoked or suspended.

(j) If the applicant is a corporation or partnership, a

statement showing whether a partner, employee, officer, or director

has been refused a license or has been the holder of a license that

was revoked or suspended.

(k) If the application is for a used or secondhand vehicle

parts dealer or an automotive recycler, ~~it shall include~~ all of the

following:

House Bill No. 5577 as amended June 1, 2016

(i) Evidence that the applicant maintains or will maintain an

established place of business.

(ii) Evidence that the applicant maintains or will maintain a

police book and vehicle parts purchase and sales and lease records

as required under this act.

(iii) Evidence of worker's compensation insurance coverage for

employees classified under the North American ~~industrial~~ industry

classification system number 42114, entitled "motor vehicle parts

(used) merchant wholesalers" or under the ~~national council on~~

~~compensation insurance~~ National Council on Compensation Insurance

classification code number 3821, entitled "automobile dismantling",

~~and drivers",~~ if applicable.

(l) ~~Certification~~ A certification that neither the applicant

nor another person named on the application is acting as the alter

ego of any other person or persons in seeking the license. For the

purpose of this subdivision, "alter ego" means a person ~~who~~ that

acts for and on behalf of, or in the place of, another person for

purposes of obtaining a vehicle dealer license.

[(m) A certification that the applicant if the applicant is an

individual or sole proprietorship, the partners of the applicant if the

applicant is a partnership, the principal officers of the applicant if

the applicant is a corporation, or any other individual who is

responsible for the daily operations of the dealership, as applicable,

has reviewed and understands the requirements of this act, the rules

promulgated under this act, the dealer manual published by the secretary

of state, and any other applicable material provided by the department.

]

House Bill No. 5577 as amended June 1, 2016

(7) A person shall apply separately for a dealer license for

each county in which business is to be conducted. Before moving 1

or more ~~of his or her~~ places of business or opening an additional

place of business, a dealer shall apply to the secretary of state

for and obtain a supplemental dealer license. ~~, for which a fee~~

~~shall not be charged. A~~ The secretary of state shall not charge a

fee for a supplemental dealer license and shall ~~be issued~~ issue a

supplemental dealer license only for a location, including a tent,

temporary stand, or any temporary quarters, that does not meet the

definition of an established place of business, within the county

in which the dealer's established place of business is located. A

dealer license entitles the dealer to conduct the business of

buying, selling, leasing, and dealing in vehicles or salvageable

parts in the county covered by the license. The dealer license

shall also entitle the dealer to conduct at any other licensed

dealer's established place of business in this state only the

business of buying, selling, leasing, or dealing in vehicles at

wholesale. [

]

(8) The secretary of state shall classify and differentiate

vehicle dealers according to the type of activity they perform. A

dealer shall not engage in activities of a particular

classification as provided in this act unless the dealer is

licensed in that classification. An applicant may apply for a

dealer license in 1 or more of the following classifications:

(a) New vehicle dealer.

(b) Used or secondhand vehicle dealer. A used or secondhand

vehicle dealer may be eligible for a mobility dealer endorsement

under section 248k.

(d) Vehicle scrap metal processor.

(e) Vehicle salvage pool operator.

(f) Distressed vehicle transporter.

(g) Broker.

(h) Foreign salvage vehicle dealer.

(i) Automotive recycler.

(j) Beginning April 1, 2005, wholesaler.

(9) All of the following apply to the issuance, renewal, and

expiration of a dealer license under this section:

(a) A dealer license that is issued before the effective date

of the amendatory act that added section 248k expires on December

31 of the last year for which the license is issued.

(b) A dealer shall renew its dealer license annually. The

secretary of state may renew a dealer license for a period of not

more than 4 years ~~upon~~ if the secretary receives a renewal

application and payment of the fee required by under section 807.

date of the amendatory act that added this subdivision expires 1

year after the date the license is issued.

(d) To renew a dealer license, the dealer shall file an

application for renewal with the secretary of state at least 30

days before the expiration of its current license.

(e) If a dealer has not renewed its dealer license on or

before the expiration date of its current license, the secretary of

state within 10 business days after that expiration date must

notify the dealer that the secretary of state has not received its

renewal application. The notice shall include the amount of the

late renewal fee.

(f) A dealer may continue to operate its dealer business after

the expiration of its dealer license, pending approval of the

renewal application, if the renewal application is delivered in

person or mailed to the secretary of state on or before the

expiration date of the license. If requested by the department, a

dealer that mails an application under this subdivision must

provide proof of mailing of the renewal application that is

satisfactory to the department.

(g) If an application to renew a dealer license is filed with

the secretary of state after the expiration of that license, the

dealer may operate its dealer business beginning on the date on

which the application is delivered or mailed to the secretary of

state, pending approval of the renewal application. If requested by

the department, a dealer that mails an application under this

subdivision must provide proof of mailing of the renewal

application that is satisfactory to the department. A dealer shall

pay a renewal fee equal to 150% of the normal renewal fee for a

renewal described in this subdivision.

(h) If a dealer files an application to renew a dealer license

more than 30 days after the expiration of that license, the dealer

House Bill No. 5577 as amended June 1, 2016

is considered a new applicant for a dealer license under this

section.

(i) The secretary of state shall deposit the late renewal fees

collected under subdivisions (e) and (g) in the transportation

administration collection fund created in section 810b.

(10) A dealer may conduct the business of buying, selling, or

dealing in motor homes, trailer coaches, trailers, or pickup

campers at a recreational vehicle show conducted at a location in

this state without obtaining a separate or supplemental license

under subsection (7) if all of the following apply:

(a) The dealer is licensed as a new vehicle dealer or used or

secondhand vehicle dealer.

(b) The duration of the recreational vehicle show is not more

than 14 days.

recreational vehicle show, the show producer notifies the secretary

of state, in a manner and form prescribed by the secretary of

state, that the recreational vehicle show is scheduled, the

location, dates, and times of the recreational vehicle show, and

the name, address, and dealer license number of each dealer

participating in the recreational vehicle show.[

House Bill No. 5577 as amended June 1, 2016

]

Sec. 248h. (1) A person ~~who has engaged in conduct prohibited~~

by that engages in conduct that is prohibited under subsection (2)

is subject to 1 or more of the following penalties:

(a) Placement of a limitation on the person's license.

(b) Suspension or revocation of a license.

(d) A civil fine paid to the department in an amount ~~not to~~

that does not exceed $25,000.00.

~~(e) Condition of probation.~~

~~(f) A requirement to take affirmative action, including~~

~~payment of restitution.~~

(e) ~~(g)~~ A letter of censure.

(2) The secretary of state may deny the application of a

dealer after an appropriate hearing for the licensing of an

individual as a salvage vehicle agent and refuse to issue or renew

the license of an agent, or may suspend or revoke an agent's

license that is already issued, if the secretary of state finds

that the dealer, applicant agent, or licensed agent has done 1 or

more of the following:

(a) Made a false statement of a material fact in the agent's

application.

(b) Violated this chapter or a rule promulgated under this

chapter, or assisted others in the violation of this chapter or a

rule promulgated under this chapter.

salvageable part for a dealer for ~~whom~~ which the agent is not

licensed, or functioned as an agent for himself or herself alone

and without respect to any dealer.

(d) Committed a fraudulent act in connection with purchasing

or acquiring or otherwise dealing in vehicles of a type required to

be registered under this act or in salvage or scrap vehicles or in

vehicle parts.

(e) Engaged in a method, act, or practice that is unfair or

deceptive, including the making of an untrue statement of a

material fact.

(f) Violated a condition of probation under section 250a.

(g) Failed to comply with the terms of a final cease and

desist order under section 250b.

(h) Failed to pay over funds or to surrender or return

property received in the course of employment to a dealer or ~~other~~

to another person that is entitled to the funds or property.

(i) Acted as a dealer's agent by purchasing, acquiring,

selling, or disposing of a vehicle while employed by a licensed

dealer without reporting the purchase, acquisition, sale, or

disposing of the vehicle to the dealer.

(j) Served in a managerial capacity for a dealer during the

time another agent or employee of that dealer, acting under the

direction and control of the dealer or licensed agent, committed a

violation of this chapter or of a rule promulgated under this

chapter or of a similar law in another state or jurisdiction.

(k) Acted for more than 1 party in a transaction without the

knowledge of the other parties.

(l) Permitted an unlawful use of the agent's license.

(m) Accepted a commission, bonus, or other valuable

consideration for the sale of a vehicle from a person other than

the dealer under ~~whom~~ which the agent is licensed.

(n) Possessed a vehicle or a vehicle part that has been

confiscated under section 415 of the Michigan penal code, ~~Act No.~~

~~328 of the Public Acts of 1931, being section 750.415 of the~~

~~Michigan Compiled Laws,~~ 1931 PA 328, MCL 750.413, or of a similar

law in another state or jurisdiction.

(3) ~~Upon receipt of the~~ If the secretary of state receives an

appropriate abstract of conviction, ~~and without an opportunity for~~

~~a hearing,~~ the secretary of state shall, without providing an

opportunity for a hearing, deny the application of a person for a

license as a salvage vehicle agent or immediately revoke the

license of a person as a salvage vehicle agent for not less than 5

years after the date of the person's last conviction if the

applicant or licensee, or a stockholder, officer, director, or

partner of the applicant or licensee, ~~has been~~ is convicted of a

violation or attempted violation of section 254 of this act or of

section 413, 414, 415, 535, or 535a of the Michigan penal code, ~~Act~~

~~No. 328 of the Public Acts of 1931, being sections 750.413,~~

~~750.414, 750.415, 750.535, and 750.535a of the Michigan Compiled~~

~~Laws,~~ 1931 PA 328, MCL 750.413, 750.414, 750.415, 750.535, and

750.535a, or ~~has been~~ is convicted in federal court or in another

state of a violation or attempted violation of a law substantially

corresponding to section 254 of this act or of ~~section 413, 414,~~

~~415, 535, or 535a of Act No. 328 of the Public Acts of 1931.~~those

sections of the Michigan penal code.

(4) ~~Upon receipt of the~~ If the secretary of state receives an

appropriate abstract of conviction from the court, ~~and without an~~

~~opportunity for a hearing,~~ the secretary of state, without

providing an opportunity for a hearing, shall deny the application

of a person for a license as a salvage vehicle agent or immediately

revoke the license of a person as a salvage vehicle agent and shall

never issue the person a salvage vehicle agent license if the

applicant or licensee has any combination of 2 or more convictions

of a violation or attempted violation of section 254 of this act or

of section 413, 414, 415, 535, or 535a of ~~Act No. 328 of the Public~~

~~Acts of 1931, being sections 750.413, 750.414, 750.415, 750.535,~~

~~and 750.535a of the Michigan Compiled Laws,~~ the Michigan penal

code, 1931 PA 328, MCL 750.413, 750.414, 750.415, 750.535, and

750.535a, or ~~has been~~ is convicted in federal court or in another

state of a violation or attempted violation of a law substantially

corresponding to section 254 of this act or of ~~section 413, 414,~~

~~415, or 535a of Act No. 328 of the Public Acts of 1931.~~those

sections of the Michigan penal code.

Sec. 248k. (1) The secretary of state may create a mobility

dealer endorsement for the purposes of this act. All of the

following apply if the secretary of state creates a mobility dealer

endorsement under this section:

(a) Only a licensed used or secondhand vehicle dealer is

eligible for a mobility dealer endorsement.

(b) The secretary of state shall prescribe the form and

content of an application for a mobility dealer endorsement and the

application shall require the signature of the applicant.

broker license, if that broker license is issued for the sole

purpose of brokering new vehicles that are modified by the addition

of permanently affixed ambulatory assistance devices.

(2) Notwithstanding any other law of this state, a mobility

dealer may do any of the following:

(a) Display, hold in inventory, demonstrate, solicit the sale

of, or offer for sale a mobility vehicle, regardless of the chassis

make of the mobility vehicle.

(b) If the transaction occurs through or by a franchised

dealer of the motor vehicle's chassis line make, arrange for the

sale and delivery of a new mobility motor vehicle to a purchaser at

the mobility dealer's place of business.

other goods and services to meet the particular needs of disabled

drivers and passengers.

(d) Provide mobility vehicle maintenance and repair services,

subject to the following:

(i) Except as provided in subparagraph (ii), a mobility dealer

shall not perform repairs on mobility vehicles or other motor

vehicles without a license as a repair facility under the motor

vehicle service and repair act, 1974 PA 300, MCL 257.1301 to

257.1340.

(ii) A mobility dealer may perform repairs on parts that are

unique to a mobility vehicle, do not alter the operating condition

of a mobility vehicle, and were not part of the original

manufactured motor vehicle without a license as a repair facility

under the motor vehicle service and repair act, 1974 PA 300, MCL

257.1301 to 257.1340.

(3) A mobility dealer shall not do any of the following:

(a) Represent that it is engaged in the sale of new motor

vehicles.

(b) Sell or transfer, or offer to sell or transfer, a new

motor vehicle by assigning the vehicle's certificate of origin.

have proof that it has been adapted or modified in compliance with

49 CFR part 568 or 49 CFR part 595.

(4) As used in this section:

(a) "Mobility dealer" means a used or secondhand vehicle

dealer that holds an endorsement as a mobility dealer from the

department under this section.

(b) "Mobility equipment" means mechanical or electronic

devices, parts, or accessories that are specifically designed to

facilitate the use of a motor vehicle by an aging or disabled

individual, in compliance with 49 CFR part 571, and that are

permanently attached to or incorporated in the vehicle.

designed and equipped to transport an individual with a disability,

in compliance with 49 CFR part 568 or 49 CFR part 595, and that

meets all of the following:

(i) Is designed and built or modified to allow vehicle ingress

and egress for an individual who is in a wheelchair or scooter.

(ii) Is equipped with 1 or more of the following:

(A) An electronic or mechanical wheelchair, scooter, or

platform lift that enables an individual to enter or exit the

vehicle while occupying a wheelchair or scooter.

(B) An electronic or mechanical wheelchair ramp.

safe transportation of an individual while he or she is occupying

the wheelchair or scooter and that is installed as an integral part

or permanent attachment to the vehicle's chassis.

Sec. 250a. As an alternative or in addition to administrative

action under section 248h(1) for a violation or alleged violation

of section 248h(2), section 249 for a violation or alleged

violation of section 249, section 249a(1) for a violation or

alleged violation of section 249a(1), or section 249a(2) for a

violation or alleged violation of section 249a(2), the secretary of

state may, by written agreement with a person that holds the

license described in that section, place that license on probation

and include conditions of probation in the agreement.

Sec. 250b. (1) If the secretary of state determines after

notice and opportunity for a hearing that a person has violated

this chapter, the secretary of state may issue an order requiring

the person to cease and desist from the violation or to take an

affirmative action that in the judgment of the secretary of state

would carry out the purposes of this act, including, but not

limited to, payment of restitution to a customer.

(2) If the secretary of state makes a finding of fact in

writing that the public interest will be irreparably harmed by a

delay in issuing an order, the secretary of state may issue a

temporary cease and desist order. Before issuing a temporary cease

and desist order, the secretary of state, when possible, by

telephone or otherwise, shall notify the person that violated this

chapter of the secretary of state's intention to issue a temporary

cease and desist order. A temporary cease and desist order shall

include in its terms a provision that states that the secretary of

state shall on request hold a hearing within 30 days to determine

whether or not the order shall become permanent.

Sec. 250c. The remedies and sanctions under this chapter are

independent and cumulative. The use of a remedy or sanction under

this chapter, including, but not limited to, administrative action

by the secretary of state under section 248h(2), 249, or 249a(1),

an agreement for probation under section 250a, or an order under

section 250b, does not bar other lawful remedies and sanctions

against a person and does not limit a person's criminal or civil

liability under law.

Sec. 802. (1) For a special registration issued under section

226(8), the registrant shall pay 1/2 the tax imposed under section

801 and a service fee of $10.00.

(2) For all commercial vehicles registered after August 31 for

the period expiring the last day of February, the secretary of

state shall collect a tax of 1/2 the rate otherwise imposed under

this act. This subsection does not apply to vehicles registered by

manufacturers or dealers under sections 244 to 247.

(3) For each special registration under section 226(9), the

secretary of state shall collect a service fee of $10.00.

(4) For temporary registration plates or markers under section

226a(1), the secretary of state shall collect a service fee of

~~$5.00 for each group of 5 of those~~ in an amount determined by the

secretary of state to reflect the actual cost of administering the

House Bill No. 5577 as amended June 1, 2016

temporary registration plates or and markers program[, or in the amount

of $4.00 per plate or marker, whichever is less].

(5) For a temporary registration under section 226b, the fee

shall be either of the following:

(a) For a 30-day temporary registration, 1/10 of the tax

prescribed under section 801 or $20.00, whichever is greater, and

an additional $10.00 service fee.

(b) For a 60-day temporary registration, 1/5 of the tax

prescribed under section 801 or $40.00, whichever is greater, and

an additional $10.00 service fee.

(6) For registration plates as provided for in section

226a(5), (6), and (7), the secretary of state shall collect a

service fee of $40.00 for 2 registration plates and $20.00 for each

additional registration plate.

(7) For special registrations issued for special mobile

equipment as provided in section 216(d), the secretary of state

shall collect a service fee of $15.00 each for the first 3 special

registrations, and $5.00 for each special registration issued in

excess of the first 3.

(8) The secretary of state, upon request, may issue a

registration valid for 3 months for use on a vehicle with an

elected gross weight of 24,000 pounds or greater on the payment of

1/4 the tax provided in section 801(1)(k) and a service fee of

$10.00.

(9) Upon application to the secretary of state, an owner of a

truck, truck tractor, or road tractor that is used exclusively for

the purpose of gratuitously transporting farm crops or livestock

bedding between the field where produced and the place of storage,

feed from on-farm storage to an on-farm feeding site, or

fertilizer, seed, or spray material from the farm location to the

field may obtain a special registration. The service fee for each

special registration issued under this subsection is $20.00. The

special registration is valid for a period of up to 12 months and

expires on December 31. As used in this subsection:

(a) "Feed" means hay or silage.

(b) "Livestock bedding" means straw, sawdust, or sand.

(10) The secretary of state, upon request, may issue a special

registration valid for 3 or more months for a road tractor, truck,

or truck tractor owned by a farmer, if the motor vehicle is used

exclusively in connection with the farmer's farming operations or

for the transportation of the farmer and the farmer's family and

not used for hire. The fee for the registration is 1/10 of the tax

provided in section 801(1)(c) times the number of months for which

the special registration is requested and, in addition, a service

fee of $10.00. The secretary of state shall not issue a special

registration for a motor vehicle for which the tax under section

801(1)(c) would be less than $50.00.

(11) The secretary of state, upon request, may issue a

registration valid for 3 months or more for use on a vehicle with

an elected gross weight of 24,000 pounds or greater. The fee for

the registration shall be 1/12 of the tax provided in section

801(1)(k), times the number of months for which the special

registration is requested and, in addition, a service fee of

$10.00.

(12) The secretary of state shall deposit the service fees