SENATE BILL No. 158

 

 

February 14, 2017, Introduced by Senator JONES and referred to the Committee on Regulatory Reform.

 

 

      A bill to amend 1986 PA 119, entitled

 

"An act to regulate the business of buying or receiving used motor

vehicle parts; to prescribe the powers and duties of certain state

and local officers; and to provide penalties,"

 

by amending sections 1 and 2 (MCL 257.1351 and 257.1352), as

 

amended by 2016 PA 112.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 1. As used in this act:

 

 2        (a) "Agent" means an individual who, for compensation or

 

 3  valuable consideration, is employed either directly or indirectly

 

 4  by a dealer.

 

 5        (b) "Dealer" means any person that engages in the ordinary


 1  course of repeated and recurrent transactions of buying or

 

 2  receiving used motor vehicle parts from persons other than a

 

 3  licensee. The term includes any motor vehicle repair facility that

 

 4  engages in repeated and recurrent transactions of buying or

 

 5  receiving used motor vehicle parts from persons other than a

 

 6  licensee. The term does not include a any of the following:

 

 7        (i) A scrap metal processor or automotive recycler that buys

 

 8  or otherwise acquires motor vehicles or motor vehicle component

 

 9  parts for the purpose of processing or selling the metal for

 

10  remelting.

 

11        (ii) An end-user, scrap tire hauler, or scrap tire processor.

 

12        (iii) A disposal area that is licensed under, or a solid waste

 

13  hauler that is subject to, part 115 of the natural resources and

 

14  environmental protection act, 1994 PA 451, MCL 324.11501 to

 

15  324.11554.

 

16        (c) "End-user" means that term as defined in section 16901 of

 

17  the natural resources and environmental protection act, 1994 PA

 

18  451, MCL 324.16901.

 

19        (d) (c) "Late model vehicle" means a motor vehicle

 

20  manufactured in the current model year or the 5 model years

 

21  immediately preceding the current model year.

 

22        (e) (d) "Local police agency" means the police agency of a

 

23  city, village, or township, or if none, the county sheriff.

 

24        (f) (e) "Major component part" means any of the following

 

25  subassemblies of a motor vehicle regardless of its actual market

 

26  value: front end assembly, including fenders, grills, hood, bumper,

 

27  and related parts; engine; transmission; T-tops; rear clip


 1  assembly, including quarter panels and floor panel assembly; or

 

 2  doors.

 

 3        (g) (f) "Motor vehicle" means a motor vehicle as defined in

 

 4  section 33 of the Michigan vehicle code, 1949 PA 300, MCL 257.33.

 

 5        (h) (g) "Motor vehicle repair facility" means a place of

 

 6  business which that engages in the business of performing or

 

 7  employing persons who perform maintenance, diagnosis, or repair

 

 8  service on a motor vehicle for compensation.

 

 9        (i) (h) "Licensee" means a person that is licensed under

 

10  section 248 of the Michigan vehicle code, 1949 PA 300, MCL 257.248,

 

11  or similarly licensed in another state.

 

12        (j) (i) "Person" means an individual, corporation, limited

 

13  liability company, partnership, association, or other legal entity.

 

14        (k) "Scrap tire hauler" means that term as defined in section

 

15  16901 of the natural resources and environmental protection act,

 

16  1994 PA 451, MCL 324.16901.

 

17        (l) "Scrap tire processor" means that term as defined in

 

18  section 16901 of the natural resources and environmental protection

 

19  act, 1994 PA 451, MCL 324.16901.

 

20        (m) (j) "Used motor vehicle part" means any of the following:

 

21        (i) A major component part, dashboard, radio, stereo, or seat

 

22  of a late model motor vehicle for which a certificate of title and

 

23  registration plate have been issued to a consumer or dealer.

 

24        (ii) A motor vehicle tire, tire wheel or rim , or continuous

 

25  tire tread.that is received by the dealer in conjunction with the

 

26  purchase of a replacement tire or replacement tire wheel or rim. As

 

27  used in this subparagraph and subparagraph (iii), "tire wheel or


 1  rim" includes a tire wheel or rim on which a tire is mounted.

 

 2        (iii) A motor vehicle tire, tire wheel or rim, or continuous

 

 3  tire tread that is received by the dealer but is not in conjunction

 

 4  with the purchase of a replacement tire or replacement tire wheel

 

 5  or rim.

 

 6        Sec. 2. (1) A dealer shall maintain a permanent record of each

 

 7  transaction concerning the buying or receiving of any used motor

 

 8  vehicle part from a person, other than a an end-user or scrap tire

 

 9  processor that is regulated under part 169 of the natural resources

 

10  and environmental protection act, 1994 PA 451, MCL 324.16901 to

 

11  324.16911, or a licensee, on a record of transaction form

 

12  prescribed in subsection (5), legibly written in ink in the English

 

13  language. Each record of transaction form shall be filled out in

 

14  duplicate by the dealer or agent with 1 copy given to the customer

 

15  and 1 copy retained by the dealer. At the time a dealer receives or

 

16  purchases a used motor vehicle part from a person other than a an

 

17  end-user, scrap tire processor, or licensee, the dealer or agent

 

18  shall accurately record all of the following information on a

 

19  record of transaction form:

 

20        (a) A general description of the used motor vehicle part

 

21  received or purchased.

 

22        (b) The vehicle identification number of the vehicle the used

 

23  motor vehicle part came from.

 

24        (c) The state of origin of the used motor vehicle part.

 

25        (d) The date of the transaction.

 

26        (e) The name of the individual who is conducting the

 

27  transaction on behalf of the dealer.


 1        (f) The name, date of birth, driver's license number or state

 

 2  of Michigan personal identification card number, and street and

 

 3  house number of the individual with whom the transaction is being

 

 4  made, together with a legible imprint of the right thumb of the

 

 5  individual with whom the transaction is made, or if that is not

 

 6  possible, then the left thumb or a finger of that individual.

 

 7  However, the thumbprint or fingerprint is only required on the

 

 8  record of transaction form retained by the dealer. The dealer or

 

 9  agent shall make a thumbprint or fingerprint available to the local

 

10  police agency or the department of state police only during the

 

11  course of a police investigation involving a used motor vehicle

 

12  part described on the record of transaction. This subdivision does

 

13  not apply to a transaction involving an insurance company that has

 

14  acquired ownership of a late model vehicle by the payment of

 

15  damages due to an accident and a dealer that buys the vehicle from

 

16  the insurance company for salvage.

 

17        (g) The price paid or to be paid by the dealer for the used

 

18  motor vehicle part.

 

19        (h) Subject to section 2a, the form of payment made to the

 

20  customer. The dealer or agent shall indicate the number of a check,

 

21  money order, or bank draft and the transaction number of any direct

 

22  deposit or electronic transfer to the customer's account at a

 

23  financial institution.

 

24        (i) The signature of the individual with whom the transaction

 

25  is made.

 

26        (2) A dealer or agent shall number the record of each

 

27  transaction consecutively, commencing with the number 1 and the


 1  calendar year; and, if the transaction includes the buying or

 

 2  receiving of 1 or more used motor vehicle tires, tire wheels or

 

 3  rims, or continuous tire tread, shall place the transaction number

 

 4  on a tag that the dealer or agent must attach to each of those

 

 5  items the dealer or agent bought or received.

 

 6        (3) The record of transaction forms of a dealer and each used

 

 7  motor vehicle part received by a dealer as the result of a

 

 8  transaction are open to an inspection by the local police agency

 

 9  and the Michigan state police at all times during the ordinary

 

10  business hours of the dealer. As a condition of doing business, a

 

11  dealer is considered to have given consent to the inspection

 

12  described in this subsection. The record of transaction forms of a

 

13  dealer are not open to inspection by the general public.

 

14        (4) A dealer shall retain each record of a transaction for at

 

15  least 1 year after the transaction to which the record pertains. A

 

16  dealer that goes out of business or changes the dealer's business

 

17  address to another local jurisdiction either within or out of this

 

18  state shall transmit to the local police agency the records of all

 

19  transactions made by the dealer in the 1-year period before the

 

20  dealer closes or moves. After a period of 1 year from the date of

 

21  the transaction, if a police investigation concerning a used motor

 

22  vehicle part described on the record of transaction has not

 

23  occurred, the dealer and local police agency shall destroy, and not

 

24  keep a permanent record of, the records of the transaction.

 

25        (5) The form of the record of transaction shall be 8-1/2 by 11

 

26  inches in size and shall be as follows:

 

 


 1

                  "Record of Transaction

 2

 3

                                #  __________________________

 4

                                  (Transaction number printed

 5

                                         on the form)

 6

 7

     (1) Description of Property  ___________________________

 8

_____________________________________________________________

 9

_____________________________________________________________

10

_____________________________________________________________

11

_____________________________________________________________

12

     (2) _______________________________ (3) ________________

13

         (Vehicle Identification Number)    (State of Origin)

14

     (4) ______________, 19 ___   (5) _______________________

15

            (Date)                  (Name of  Dealer/Employee)

16

     (6) ______________________,   ___________________, 19 ___

17

           (Name of Customer)        (Date of Birth)

18

     __________________________,   ___________________________

19

      (Driver's License No./           (Street Address)

20

      Mich. Personal ID Number)   ___________________   ______

21

                                   (City & State)       (Zip)

22

     (7) ______________________

23

            (Price Paid)

24

     (8) ______________________

25

         (Check no., bank draft


 1

           no., money order no.,

 2

           transaction no., or cash)

 3

 4

 5

 6

                                ____________________________"

 7

         Thumbprint                (Signature of Customer)

 

 

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

 

 9  after the date it is enacted into law.