SENATE BILL NO. 245 February 3, 1999, Introduced by Senators STILLE, GOUGEON, ROGERS, BENNETT, HAMMERSTROM and GOSCHKA and referred to the Committee on Transportation and Tourism. A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending section 217 (MCL 257.217), as amended by 1998 PA 247. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 217. (1) An owner of a vehicle that is subject to reg- 2 istration under this act shall apply to the secretary of state, 3 upon an appropriate form furnished by the secretary of state, for 4 the registration of the vehicle and issuance of a certificate of 5 title for the vehicle. Effective January 1, 1994, a vehicle 6 brought into this state from another state or jurisdiction that 7 has a rebuilt, salvage, scrap, or comparable certificate of title 8 issued by that other state or jurisdiction shall be issued a 9 rebuilt, salvage, or scrap certificate of title by the secretary 10 of state.TheEXCEPT AS PROVIDED IN SUBSECTION (2), THE 01461'99 TLG 2 1 application shall be accompanied by the required fee. An 2 application for a certificate of title shall bear the signature 3 of the owner. The application shall contain all of the 4 following: 5 (a) The owner's name, the owner's bona fide residence, and 6 either of the following: 7 (i) The owner's mailing address, if the owner is an 8 individual. 9 (ii) The owner's business address, if the owner is a firm, 10 association, or corporation. 11 (b) A description of the vehicle including the make or name, 12 style of body, and model year; the number of miles, not including 13 the tenths of a mile, registered on the vehicle's odometer at the 14 time of transfer; whether the vehicle is to be or has been used 15 as a taxi or police vehicle, or by a political subdivision of 16 this state; whether the vehicle has previously been issued a sal- 17 vage or rebuilt certificate of title from this state or a com- 18 parable certificate of title fromany otherANOTHER state or 19 jurisdiction; vehicle identification number; and the vehicle's 20 weight fully equipped, if a passenger vehicle registered in 21 accordance with section 801(1)(a), and, if a trailer coach or 22 pickup camper, in addition to the weight, the manufacturer's 23 serial number, or in the absence of the serial number, a number 24 assigned by the secretary of state. A number assigned by the 25 secretary of state shall be permanently placed on the trailer 26 coach or pickup camper in the manner and place designated by the 27 secretary of state. 01461'99 3 1 (c) A statement of the applicant's title and the names and 2 addresses of the holders of security interests in the vehicle and 3 in an accessory to the vehicle, in the order of their priority. 4 (d) Further information that the secretary of state reason- 5 ably requires to enable the secretary of state to determine 6 whether the vehicle is lawfully entitled to registration and the 7 owner entitled to a certificate of title. If the secretary of 8 state is not satisfied as to the ownership of a late model vehi- 9 cle or other vehicle having a value over $2,500.00, before regis- 10 tering the vehicle and issuing a certificate of title, the secre- 11 tary of state may require the applicant to file a properly exe- 12 cuted surety bond in a form prescribed by the secretary of state 13 and executed by the applicant and a company authorized to conduct 14 a surety business in this state. The bond shall be in an amount 15 equal to twice the value of the vehicle as determined by the sec- 16 retary of state and shall be conditioned to indemnify or reim- 17 burse the secretary of state, any prior owner, and any subsequent 18 purchaser of the vehicle and their successors in interest against 19 any expense, loss, or damage, including reasonable attorney's 20 fees, by reason of the issuance of a certificate of title for the 21 vehicle or on account of any defect in the right, title, or 22 interest of the applicant in the vehicle. An interested person 23 has a right of action to recover on the bond for a breach of the 24 conditions of the bond, but the aggregate liability of the surety 25 to all persons shall not exceed the amount of the bond. The bond 26 shall be returned at the end of 3 years, or before 3 years if the 27 vehicle is no longer registered in this state and the currently 01461'99 4 1 valid certificate of title is surrendered to the secretary of 2 state, unless the secretary of state has received notification of 3 the pendency of an action to recover on the bond. If the secre- 4 tary of state is not satisfied as to the ownership of a vehicle 5 that is valued at $2,500.00 or less and that is not a late model 6 vehicle, the secretary of state shall require the applicant to 7 certify that the applicant is the owner of the vehicle and enti- 8 tled to register and title the vehicle. 9 (e) Except as provided in subdivision (f), an application 10 for a commercial vehicle shall also have attached a scale weight 11 receipt of the motor vehicle fully equipped as of the time the 12 application is made. A scale weight receipt is not necessary if 13 there is presented with the application a registration receipt of 14 the previous year that shows on its face the empty weight of the 15 motor vehicle as registered with the secretary of state that is 16 accompanied by a statement of the applicant that there has not 17 been structural change in the motor vehicle that has increased 18 the empty weight and that the previous registered weight is the 19 true weight. 20 (f) An application for registration of a vehicle on the 21 basis of elected gross weight shall include a declaration by the 22 applicant specifying the elected gross weight for which applica- 23 tion is being made. 24 (g) If the application is for a certificate of title of a 25 motor vehicle registered in accordance with section 801(1)(q), 26 the application shall include the manufacturer's suggested base 27 list price for the model year of the vehicle. Annually, the 01461'99 5 1 secretary of state shall publish a list of the manufacturer's 2 suggested base list price for each vehicle being manufactured. 3 Once a base list price is published by the secretary of state for 4 a model year for a vehicle, the base list price shall not be 5 affected by subsequent increases in the manufacturer's suggested 6 base list price but shall remain the same throughout the model 7 year unless changed in the annual list published by the secretary 8 of state. If the secretary of state's list has not been pub- 9 lished for that vehicle by the time of the application for regis- 10 tration, the base list price shall be the manufacturer's sug- 11 gested retail price as shown on the label required to be affixed 12 to the vehicle under section 3 of the automobile information dis- 13 closure act, Public Law 85-506, 15 U.S.C. 1232. If the 14 manufacturer's suggested retail price is unavailable, the appli- 15 cation shall list the purchase price of the vehicle as defined in 16 section 801(4). 17 (2) A QUALIFIED POLICE OFFICER IS NOT REQUIRED TO PAY A REG- 18 ISTRATION FEE. AS USED IN THIS SUBSECTION: 19 (A) "HIGH-CRIME AREA" MEANS AN AREA WITHIN A MUNICIPALITY 20 THAT THE DEPARTMENT OF STATE POLICE DETERMINES IS A HIGH-CRIME 21 AREA BASED ON THE STATE POLICE UNIFORM CRIME REPORTING PROGRAM 22 STATISTICS AND OTHER RELEVANT FACTORS AFTER CONSULTATION WITH THE 23 MUNICIPALITY. 24 (B) "MUNICIPALITY" MEANS A COUNTY, CITY, VILLAGE, OR 25 TOWNSHIP. 26 (C) "QUALIFIED POLICE OFFICER" MEANS A PERSON WHO MEETS ALL 27 OF THE FOLLOWING CONDITIONS: 01461'99 6 1 (i) IS EMPLOYED AS A POLICE OFFICER BY THIS STATE OR A 2 MUNICIPALITY IN THIS STATE. 3 (ii) LIVES IN A HIGH-CRIME AREA. 4 (iii) WORKS AS A POLICE OFFICER IN THE HIGH-CRIME AREA IN 5 WHICH HE OR SHE LIVES. 6 (iv) MEETS ANY OTHER CONDITIONS AS DETERMINED BY THE MUNICI- 7 PALITY IN WHICH HE OR SHE LIVES. 8 (3)(2)Beginning October 1, 1999, the secretary of state 9 shall require an applicant for registration of a leased pickup 10 truck or passenger vehicle that is subject to registration under 11 this act, except a vehicle that is subject to registration tax 12 under section 801g, to disclose in writing the lessee's name, the 13 lessee's bona fide residence, and either of the following: 14 (a) The lessee's Michigan driver license number or Michigan 15 personal identification number or, if the lessee does not have a 16 Michigan driver license or Michigan personal identification 17 number, the lessee's mailing address, if the lessee is an 18 individual. 19 (b) The lessee's business address, if the lessee is a firm, 20 association, or corporation. 21 (4)(3)The secretary of state shall maintain the informa- 22 tion described in subsection(2)(3) on the secretary of 23 state's computer records. 24 (5)(4)A dealer selling or exchanging vehicles required 25 to be titled, within 15 days after delivering a vehicle to the 26 purchaser, and a person engaged in the sale of vessels required 27 to be numbered by part 801 of the natural resources and 01461'99 7 1 environmental protection act, 1994 PA 451, MCL 324.80101 to 2 324.80199, within 15 days after delivering a boat trailer weigh- 3 ing less than 2,500 pounds to the purchaser, shall apply to the 4 secretary of state for a new title, if required, and transfer or 5 secure registration plates and secure a certificate of registra- 6 tion for the vehicle or boat trailer, in the name of the 7 purchaser. The dealer's license may be suspended or revoked in 8 accordance with section 249 for failure to apply for a title when 9 required or for failure to transfer or secure registration plates 10 and certificate of registration within the 15 days required by 11 this section. If the dealer or person fails to apply for a title 12 when required, and to transfer or secure registration plates and 13 secure a certificate of registration and pay the required fees 14 within 15 days of delivery of the vehicle or boat trailer, a 15 title and registration for the vehicle or boat trailer may subse- 16 quently be acquired only upon the payment of a transfer fee of 17 $15.00 in addition to the fees specified in section 806. The 18 purchaser of the vehicle or boat trailer shall sign the applica- 19 tion, including, when applicable, the declaration specifying the 20 maximum elected gross weight, as required by subsection (1)(f), 21 and other necessary papers to enable the dealer or person to 22 secure the title, registration plates, and transfers from the 23 secretary of state. 24 (6)(5)If a vehicle is delivered to a purchaser who has 25 valid Michigan registration plates that are to be transferred to 26 the vehicle, and an application for title, if required, and 27 registration for the vehicle is not made before delivery of the 01461'99 8 1 vehicle to the purchaser, the registration plates shall be 2 affixed to the vehicle immediately, and the dealer shall provide 3 the purchaser with an instrument in writing, on a form prescribed 4 by the secretary of state, which shall serve as a temporary reg- 5 istration for the vehicle for a period of 15 days from the date 6 the vehicle is delivered. 7 (7)(6)An application for a certificate of title that 8 indicates the existence of a security interest in the vehicle or 9 in an accessory to the vehicle, if requested by the security 10 interest holder, shall be accompanied by a copy of the security 11 agreement which need not be signed. The request may be made of 12 the seller on an annual basis. The secretary of state shall 13 indicate on the copy the date and place of filing of the applica- 14 tion and return the copy to the person submitting the application 15 who shall forward it to the holder of the security interest named 16 in the application. 17 (8)(7)If the seller does not prepare the credit informa- 18 tion, contract note, and mortgage, and the holder, finance com- 19 pany, credit union, or banking institution requires the install- 20 ment seller to record the lien on the title, the holder, finance 21 company, credit union, or banking institution shall pay the 22 seller a service fee of not more than $10.00. The service fee 23 shall be paid from the finance charges and shall not be charged 24 to the buyer in addition to the finance charges. The holder, 25 finance company, credit union, or banking institution shall issue 26 its check or bank draft for the principal amount financed, 27 payable jointly to the buyer and seller, and there shall be 01461'99 9 1 imprinted on the back side of the check or bank draft the 2 following: 3 "Under Michigan law, the seller must record a first lien in 4 favor of (name of lender) _______________ on the vehicle with 5 vehicle identification number _______________ and title the vehi- 6 cle only in the name(s) shown on the reverse side." On the front 7 of the sales check or draft, the holder, finance company, credit 8 union, or banking institution shall note the name(s) of the pro- 9 spective owner(s). Failure of the holder, finance company, 10 credit union, or banking institution to comply with these 11 requirements frees the seller from any obligation to record the 12 lien or from any liability that may arise as a result of the 13 failure to record the lien. A service fee shall not be charged 14 to the buyer. 15 (9)(8)In the absence of actual malice proved indepen- 16 dently and not inferred from lack of probable cause, a person who 17 in any manner causes a prosecution for larceny of a motor vehi- 18 cle; for embezzlement of a motor vehicle; for any crime an ele- 19 ment of which is the taking of a motor vehicle without authority; 20 or for buying, receiving, possessing, or aiding in the conceal- 21 ment of a stolen, embezzled, or converted motor vehicle knowing 22 that the motor vehicle has been stolen, embezzled, or converted, 23 is not liable for damages in a civil action for causing the 24 prosecution. This subsection does not relieve a person from 25 proving any other element necessary to sustain his or her cause 26 of action. 01461'99 10 1 Enacting section 1. This amendatory act does not take 2 effect unless all of the following bills of the 90th Legislature 3 are enacted into law: 4 (a) Senate Bill No. 244. 5 6 (b) Senate Bill No. 171. 7 01461'99 Final page. TLG