HOUSE BILL No. 5468 January 14, 1998, Introduced by Reps. Hale, Kelly, Wallace, Hanley, Bogardus, Thomas, Schermesser, Willard, Curtis, Harder, Griffin, Scott, Vaughn, DeHart, Varga and Price and referred to the Committee on Transportation. A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending sections 249, 254, and 303 (MCL 257.249, 257.254, and 257.303[1]), section 249 as amended by 1993 PA 300, section 254 as amended by 1990 PA 98, and section 303 as amended by 1996 PA 587, and by adding section 254a. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 249. (1) The secretary of state may deny the applica- 2 tion of a person for a license as a dealer and refuse to issue 3 the person a license as a dealer, or may suspend or revoke a 4 license already issued, if the secretary of state finds that 1 or 5 more of the following apply: 6 (a) The applicant or licensee has made a false statement of 7 a material fact in his or her application. 01082'97 b JOJ 2 1 (b) The applicant or licensee has not complied with the 2 provisions of this chapter or a rule promulgated under this 3 chapter. 4 (c) The applicant or licensee has sold or offered for sale a 5 new vehicle of a type required to be registered under this act 6 without having authority of a contract with a manufacturer or 7 distributor of the new vehicle. 8 (d) The applicant or licensee has been guilty of a fraudu- 9 lent act in connection with selling or otherwise dealing in vehi- 10 cles of a type required to be registered under this act. 11 (e) The applicant or licensee has entered into or is about 12 to enter into a contract or agreement with a manufacturer or dis- 13 tributor of vehicles of a type required to be registered under 14 this act, whichTHAT is contrary to any provision of this 15 act. 16 (f) The applicant or licensee has no established place of 17 businesswhichTHAT is used or will be used forthe purpose18ofselling, displaying, and offering for sale or dealing in 19 vehicles of a type required to be registered, and does not have 20 proper servicing facilities. 21 (g) The applicant or licensee is a corporation or partner- 22 ship,and a stockholder, officer, director, or partner of the 23 applicant or licensee has been guilty of any act or omission that 24 would be cause for refusing, revoking, or suspending a license 25 issued to the stockholder, officer, director, or partner as an 26 individual. 01082'97 b 3 1 (h) The applicant or licensee has possessed a vehicle or a 2 vehicle partthat has beenconfiscated under section 415 of the 3 Michigan penal code,Act No. 328 of the Public Acts of 1931, as4amended, being section 750.415 of the Michigan Compiled Laws5 1931 PA 328, MCL 750.415. The secretary of state shall conduct a 6 hearing pursuant to the administrative procedures act of 1969, 7Act No. 306 of the Public Acts of 1969, as amended, being sec-8tions 24.201 to 24.328 of the Michigan Compiled Laws1969 PA 9 306, MCL 24.201 TO 24.328, beforethe secretary of state takes10 TAKING any action under this subdivision. 11 (i) The applicant or licensee has been convicted under sec- 12 tion 415 ofAct No. 328 of the Public Acts of 1931, as amended13 THE MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.415. 14 (j) The applicant or licensee has been convicted of violat- 15 ingAct No. 119 of the Public Acts of 1986, being sections16257.1351 to 257.1355 of the Michigan Compiled Laws1986 PA 119, 17 MCL 257.1351 TO 257.1355. 18 (2) UPON RECEIVING AN ABSTRACT OF CONVICTION, THE SECRETARY 19 OF STATE SHALL REVOKE THE LICENSE OF A PERSON AS A DEALER AND 20 SHALL DENY THE APPLICATION OF A PERSON FOR A LICENSE AS A DEALER 21 UNTIL THE EXPIRATION OF NOT LESS THAN 5 YEARS AFTER THE DATE OF 22 THE PERSON'S CONVICTION IF 1 OR MORE OF THE FOLLOWING APPLY: 23 (A) THE APPLICANT OR LICENSEE HAS BEEN CONVICTED UNDER SEC- 24 TION 535A OF THE MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.535A. 25 (B) THE APPLICANT OR LICENSEE HAS BEEN CONVICTED UNDER SEC- 26 TION 413 OR 535C OF THE MICHIGAN PENAL CODE, 1931 PA 328, MCL 27 750.413 AND 750.535C, AND HAS 1 OR MORE PRIOR CONVICTIONS FOR 01082'97 b 4 1 VIOLATIONS OR ATTEMPTED VIOLATIONS OF SECTION 413, 414, 415, 535, 2 535A, OR 535C OF THE MICHIGAN PENAL CODE, 1931 PA 328, MCL 3 750.413, 750.414, 750.415, 750.535, 750.535A, AND 750.535C. 4 (3) THE SECRETARY OF STATE SHALL DENY THE APPLICATION OF A 5 PERSON FOR A LICENSE AS A DEALER IF 1 OR MORE OF THE FOLLOWING 6 APPLY: 7 (A) THE PERSON HAS 3 OR MORE CONVICTIONS UNDER SECTION 413 8 OF THE MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.413. 9 (B) THE PERSON HAS 3 OR MORE CONVICTIONS UNDER SECTION 535A 10 OF THE MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.535A. 11 (C) THE PERSON HAS 3 OR MORE CONVICTIONS UNDER SECTION 535C 12 OF THE MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.535C. 13 Sec. 254. (1)Any person who shall knowingly make anyA 14 PERSON WHO DOES ANY OF THE FOLLOWING IS GUILTY OF A FELONY PUN- 15 ISHABLE BY IMPRISONMENT FOR NOT MORE THAN 10 YEARS OR A FINE OF 16 NOT MORE THAN $20,000.00, OR BOTH: 17 (A) KNOWINGLY MAKES A false statement of a material fact,18eitherin his or her application for the certificate of title 19 required by this act,or inanyAN assignment of that title. 20, or who, with21 (6) WITH intent to procure or pass title to a motor vehicle 22whichhe or she knows or has reason to believe has been stolen 23, shall receive or transferOR HAS 1 OR MORE MAJOR COMPONENT 24 PARTS THAT HAVE BEEN STOLEN, RECEIVES OR TRANSFERS possession of 25 thesameVEHICLE from or to another, or who shall have26 PERSON. 01082'97 b 5 1 (2) A PERSON WHO HAS in his or her possession any vehicle 2whichhe or she knows or has reason to believe has been stolen 3, and who is not an officer of the law engaged at the time in4the performance of his or her duty as such officer,is guilty of 5 a felony,punishable bya fine of not more than $5,000.00, or6byimprisonment for not more than 10 years OR A FINE OF NOT MORE 7 THAN $5,000.00, or both. 8 (3) THIS SECTION DOES NOT APPLY TO A PEACE OFFICER PERFORM- 9 ING HIS OR HER DUTIES AS A PEACE OFFICER AT THE TIME OF A VIOLA- 10 TION OF THIS SECTION. 11 (4) Thisprovision shallSECTION DOES notbe exclusive of12any other penalties prescribed byPROHIBIT THE PROSECUTION OF A 13 PERSON UNDER any OTHER law for the larcenyof theOR unautho- 14 rized taking of a vehicle OR MAJOR COMPONENT PART. 15 SEC. 254A. (1) A PERSON WHO DOES EITHER OF THE FOLLOWING IS 16 GUILTY OF A FELONY PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 17 10 YEARS OR A FINE OF NOT MORE THAN $20,000.00, OR BOTH: 18 (A) KNOWINGLY SELLS, GIVES, OR EXCHANGES A MOTOR VEHICLE 19 CERTIFICATE OF TITLE WITHOUT ALSO SELLING, GIVING, OR EXCHANGING 20 THE MOTOR VEHICLE FOR WHICH THE TITLE WAS ISSUED. 21 (B) SELLS, GIVES, OR EXCHANGES A MOTOR VEHICLE CERTIFICATE 22 OF TITLE OR IDENTIFYING MARKER KNOWING THAT THE CERTIFICATE OF 23 TITLE OR IDENTIFYING MARKER WILL BE USED TO DISGUISE THE IDENTITY 24 OF A STOLEN MOTOR VEHICLE OR A MOTOR VEHICLE THAT HAS 1 OR MORE 25 MAJOR COMPONENT PARTS THAT ARE STOLEN. 26 (2) A PERSON WHO WITH THE INTENT TO MISLEAD ANOTHER PERSON 27 AS TO THE IDENTITY OF A MOTOR VEHICLE BUYS, RECEIVES, OR 01082'97 b 6 1 POSSESSES A MOTOR VEHICLE CERTIFICATE OF TITLE OR IDENTIFYING 2 MARKER THAT BELONGS TO ANOTHER VEHICLE IS GUILTY OF A FELONY PUN- 3 ISHABLE BY IMPRISONMENT FOR NOT MORE THAN 5 YEARS OR A FINE OF 4 NOT MORE THAN $20,000.00, OR BOTH. 5 (3) A PERSON WHO KNOWINGLY MAKES OR PRESENTS A FALSE, 6 FORGED, OR ALTERED DOCUMENT TO OBTAIN A MOTOR VEHICLE CERTIFICATE 7 OF TITLE FROM THE SECRETARY OF STATE IS GUILTY OF A FELONY PUN- 8 ISHABLE BY IMPRISONMENT FOR NOT MORE THAN 5 YEARS OR BY A FINE OF 9 NOT MORE THAN $10,000.00, OR BOTH. 10 (4) THIS SECTION DOES NOT PROHIBIT THE PROSECUTION OF A 11 PERSON UNDER ANY OTHER LAW FOR THE LARCENY OR THE UNAUTHORIZED 12 TAKING OF A MOTOR VEHICLE OR MAJOR COMPONENT PART. 13 (5) AS USED IN THIS SECTION: 14 (A) "IDENTIFYING MARKER" MEANS A VEHICLE IDENTIFICATION 15 NUMBER, FEDERAL SAFETY STICKER, ENGINE NUMBER, TRANSMISSION 16 NUMBER, BODY TAG, OR COMPONENT PART NUMBER OR AN IDENTITY PLATE 17 OR STICKER THAT IS STAMPED OR OTHERWISE MARKED WITH THE VEHICLE 18 IDENTIFICATION NUMBER OR VEHICLE IDENTIFICATION NUMBER 19 DERIVATIVE. 20 (B) "VEHICLE IDENTIFICATION NUMBER" MEANS AN IDENTIFICATION 21 NUMBER ASSIGNED TO A VEHICLE BY THE MANUFACTURER OR A SPECIAL 22 IDENTIFYING NUMBER ASSIGNED TO A VEHICLE BY THE SECRETARY OF 23 STATE UNDER SECTION 230. 24 (C) "VEHICLE IDENTIFICATION NUMBER DERIVATIVE" MEANS A PART 25 OF THE VEHICLE IDENTIFICATION NUMBER THAT IS UNIQUE IN ITSELF BUT 26 IS ALPHABETICALLY OR NUMERICALLY IDENTIFIABLE TO THE VEHICLE 27 IDENTIFICATION NUMBER. 01082'97 b 7 1 Sec. 303. (1) The secretary of state shall not issue a 2 license under this act to any of the following: 3 (a) A person, as an operator, who is less than 18 years of 4 age, except as otherwise provided in this act. 5 (b) A person, as a chauffeur, who is less than 18 years of 6 age, except as otherwise provided in this act. 7 (c) A person whose license has been suspended during the 8 period for which the license was suspended. 9 (d) A person who has been convicted of or received a probate 10 court disposition for a violation of section 625(4) or (5). 11 (e) A person who has been convicted of or received a probate 12 court disposition for negligent homicide, manslaughter, or murder 13 resulting from the operation of a motor vehicle. 14 (f) A person who is an habitual violator of the criminal 15 laws relating to operating a vehicle while impaired by or under 16 the influence of intoxicating liquor, a controlled substance, or 17 a combination of intoxicating liquor and a controlled substance 18 or with an alcohol content of 0.10 grams or more per 100 millili- 19 ters of blood, per 210 liters of breath, or per 67 milliliters of 20 urine. Convictions of any of the following, whether under a law 21 of this state, a local ordinance substantially corresponding to a 22 law of this state, or a law of another state substantially corre- 23 sponding to a law of this state, are prima facie evidence that 24 the person is an habitual violator as described in this 25 subdivision: 26 (i) Any combination of 2 convictions within 7 years for any 27 of the following: 01082'97 b 8 1 (A) A violation of section 625(1), (4), or (5). 2 (B) A violation of former section 625(1) or (2). 3 (ii) Any combination of 3 convictions within 10 years for 4 any of the following if any of the convictions resulted from an 5 arrest on or after January 1, 1992: 6 (A) A violation of section 625(1), (3), (4), or (5). 7 (B) A violation of former section 625(1) or (2) or former 8 section 625b. 9 (g) A person who in the opinion of the secretary of state is 10 afflicted with or suffering from a physical or mental disability 11 or disease preventing that person from exercising reasonable and 12 ordinary control over a motor vehicle while operating the motor 13 vehicle upon the highways. 14 (h) A person who is unable to understand highway warning or 15 direction signs in the English language. 16 (i) A person who is an habitually reckless driver. Two con- 17 victions within 7 years of reckless driving under this act or any 18 other law of this state relating to reckless driving or under a 19 local ordinance of this state or a law of another state that 20 defines the term "reckless driving" substantially similarly to 21 the law of this state are prima facie evidence that the person is 22 an habitually reckless driver. 23 (j) A person who is an habitual criminal. Two convictions 24 of a felony in which a motor vehicle was used in this or another 25 state are prima facie evidence that the person is an habitual 26 criminal. 01082'97 b 9 1 (k) A person who is unable to pass a knowledge, skill, or 2 ability test administered by the secretary of state in connection 3 with the issuance of an original operator's or chauffeur's 4 license, original motorcycle indorsement, or an original or 5 renewal of a vehicle group designation or vehicle indorsement. 6 (l) A person who has been convicted of, has received a pro- 7 bate court disposition for, or has been determined responsible 8 for 2 or more moving violations under a law of this state, a 9 local ordinance substantially corresponding to a law of this 10 state, or a law of another state substantially corresponding to a 11 law of this state within the preceding 3 years, if the violations 12 occurred before issuance of an original license to the person in 13 this or another state. 14 (m) A nonresident, including a foreign exchange student. 15 (n) A person not licensed under this act who has been con- 16 victed of, has received a probate court disposition for, or has 17 been determined responsible for a crime or civil infraction 18 described in section 319, 324, or 904. A person shall be denied 19 a license under this subdivision for the length of time corre- 20 sponding to the period of the licensing sanction that would have 21 been imposed under section 319, 324, or 904 if the person had 22 been licensed at the time of the violation. 23 (o) A person not licensed under this act who has been con- 24 victed of or received a probate court disposition for committing 25 a crime described in section 319e. A person shall be denied a 26 license under this subdivision for the length of time that 27 corresponds to the period of the licensing sanction that would 01082'97 b 10 1 have been imposed under section 319e if the person had been 2 licensed at the time of the violation. 3 (p) A person not licensed under this act who is determined 4 to have violated section 33b(1) of the Michigan liquor control 5 act,Act No. 8 of the Public Acts of the Extra Session of 1933,6being section 436.33b of the Michigan Compiled Laws1933 (EX 7 SESS) PA 8, MCL 436.33B, or section 624a or 624b. The person 8 shall be denied a license under this subdivision for a period of 9 time that corresponds to the period of the licensing sanction 10 that would have been imposed under those sections had the person 11 been licensed at the time of the violation. 12 (q) A person who has been convicted of a violation of sec- 13 tion 602a(4) or (5) or a violation of section 479a(4) or (5) of 14 the Michigan penal code,Act No. 328 of the Public Acts of 1931,15being section 750.479a of the Michigan Compiled Laws1931 PA 16 328, MCL 750.479A. 17 (R) A PERSON WHO HAS ANY OF THE FOLLOWING: 18 (i) ONE OR MORE CONVICTIONS UNDER SECTION 535A OF THE 19 MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.535A. 20 (ii) TWO OR MORE CONVICTIONS UNDER SECTION 413 OF THE 21 MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.413. 22 (iii) TWO OR MORE CONVICTIONS UNDER SECTION 535C OF THE 23 MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.535C. 24 (2) Upon receiving the appropriate records of conviction, 25 the secretary of state shall revoke the operator's or chauffeur's 26 license of a person having any of the following, whether under a 27 law of this state, a local ordinance substantially corresponding 01082'97 b 11 1 to a law of this state, or a law of another state substantially 2 corresponding to a law of this state: 3 (a) Two convictions of reckless driving in violation of sec- 4 tion 626 within 7 years. 5 (b) Two convictions of a felony in which a motor vehicle was 6 used within 7 years. 7 (c) Any combination of 2 convictions within 7 years for any 8 of the following: 9 (i) A violation of section 625(1). 10 (ii) A violation of former section 625(1) or (2). 11 (iii) A violation of section 625(4) or (5). 12 (iv) Negligent homicide, manslaughter, or murder resulting 13 from the operation of a motor vehicle. 14 (d) One conviction under section 625(4) or (5). 15 (e) One conviction of negligent homicide, manslaughter, or 16 murder resulting from the operation of a motor vehicle. 17 (f) Any combination of 3 convictions within 10 years for any 18 of the following if any of the convictions resulted from an 19 arrest on or after January 1, 1992: 20 (i) A violation of section 625(1), (3), (4), or (5). 21 (ii) A violation of former section 625(1) or (2) or former 22 section 625b. 23 (iii) Negligent homicide, manslaughter, or murder resulting 24 from the operation of a motor vehicle. 25 (g) A CONVICTION FOR A violation of section 602a(4) or (5) 26 of this act or section 479a(4) or (5) of the Michigan penal code, 01082'97 b 12 1Act No. 328 of the Public Acts of 1931, being section 750.479a2of the Michigan Compiled Laws1931 PA 328, MCL 750.479A. 3 (H) ONE OR MORE CONVICTIONS UNDER SECTION 535A OF THE 4 MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.535A. 5 (I) TWO OR MORE CONVICTIONS UNDER SECTION 413 OF THE 6 MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.413. 7 (J) TWO OR MORE CONVICTIONS UNDER SECTION 535C OF THE 8 MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.535C. 9 (3) The secretary of state shall revoke a license under sub- 10 section (2) notwithstanding a court order issued under section 11 625, section 625b, former section 625(1) or (2), or former sec- 12 tion 625b or a local ordinance substantially corresponding to 13 section 625, section 625b, former section 625(1) or (2), or 14 former section 625b. 15 (4) The secretary of state shall not issue a license under 16 this act to a person whose license has been revoked under this 17 act or denied under subsection (1)(d), (e), (f), (i),or(j), 18 (Q), OR (R) untilboth ofTHE PERSON MEETS THE DEPARTMENT'S 19 REQUIREMENTS AND the followingoccurHAVE OCCURRED AS 20 APPLICABLE: 21 (a)TheEXCEPT FOR A DENIAL UNDER SUBSECTION (1)(R) OR A 22 REVOCATION UNDER SUBSECTION (2)(H), (I), OR (J), EXPIRATION OF 23 THE later of the following: 24 (i)The expiration of notNOT less than 1 year after the 25 license was revoked or denied. 01082'97 b 13 1 (ii)The expiration of notNOT less than 5 years after the 2 date of a subsequent revocation or denial occurring within 7 3 years after the date of any prior revocation or denial. 4 (b)The person meets the requirements of the department5 FOR A DENIAL UNDER SUBSECTION (1)(R) OR A REVOCATION UNDER SUB- 6 SECTION (2)(H), (I), OR (J), NOT LESS THAN 2 YEARS AFTER THE 7 REVOCATION OR DENIAL. 8 (5) Multiple convictions or civil infraction determinations 9 resulting from the same incident shall be treated as a single 10 violation for purposes of denial or revocation of a license under 11 this section. 12 (6) As used in this section, "felony in which a motor vehi- 13 cle was used" means a felony during the commission of which the 14 person operated a motor vehicle and while operating the vehicle 15 presented real or potential harm to persons or property and 1 or 16 more of the following circumstances existed: 17 (a) The vehicle was used as an instrument of the felony. 18 (b) The vehicle was used to transport a victim of the 19 felony. 20 (c) The vehicle was used to flee the scene of the felony. 21 (d) The vehicle was necessary for the commission of the 22 felony. 23 Enacting section 1. This amendatory act does not take 24 effect unless Senate Bill No. _____ or House Bill No. _____ 25 (request no. 01082'97) of the 89th Legislature is enacted into 26 law. 01082'97 b Final page. JOJ