HOUSE BILL No. 5363


     October 29, 2001, Introduced by Reps. Kolb, Howell, Julian and Gilbert and referred to the Committee on Commerce.


        A bill to amend 1949 PA 300, entitled

   "Michigan vehicle code,"

   by amending sections 11, 213, 216, 217, 217c, 222, 226, 226a,

   233b, 244, 248, 249, 251, and 251a (MCL 257.11, 257.213, 257.216,

   257.217, 257.217c, 257.222, 257.226, 257.226a, 257.233b, 257.244,

   257.248, 257.249, 257.251, and 257.251a), section 11 as amended

   by 1990 PA 154, section 216 as amended by 1996 PA 141, sections

   217, 222, and 251 as amended by 2000 PA 397, sections 217c and

   249 as amended by 1993 PA 300, section 226 as amended by 2000

   PA 36, section 226a as amended by 1998 PA 384, section 233b as

   added by 1994 PA 305, section 244 as amended by 2000 PA 369,

   section 248 as amended by 1999 PA 172, and section 251a as added

   by 1990 PA 265.






   02986'01 **                                              DAM                                   2

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
           Sec. 11.  (1)  "Dealer"  EXCEPT AS PROVIDED IN

 2
      SUBSECTION (3), "DEALER" means a person  engaged  WHO IS 1 OR

 3
      MORE OF THE FOLLOWING:

 4
           (A) A PERSON WHO IN A 12-MONTH PERIOD DID 1 OR MORE OF THE

 5
      FOLLOWING:

 6
           (i) ENGAGED in the business of purchasing, selling, exchang-

 7
      ing, brokering, LEASING, or dealing in vehicles of a type

 8
      required to be titled under this act.  or parts of those vehi-

 9
      cles, a person who negotiates the purchase, sale, deal, or

10
      exchange of those vehicles and who has an established place of

11
      business for those purposes in this state, a person is engaged in

12
      the actual remanufacturing of engines or transmissions, or both,

13
      or a person engaged

14
           (ii) ENGAGED IN THE BUSINESS OF PURCHASING, SELLING,

15
      EXCHANGING, BROKERING, OR DEALING IN SALVAGEABLE PARTS OF 5 OR

16
      MORE VEHICLES.

17
           (iii) ENGAGED in the business of buying 5 OR MORE vehicles

18
      to sell vehicle parts or  buying vehicles to  process into scrap

19
      metal.

20
           (B) A PERSON ENGAGED IN THE ACTUAL REMANUFACTURING OF

21
      ENGINES, TRANSMISSIONS, OR SALVAGEABLE VEHICLE PARTS.

22
           (2) THERE IS A REBUTTABLE PRESUMPTION THAT A PERSON WHO IN A

23
      12-MONTH PERIOD BUYS, SELLS, EXCHANGES, BROKERS, LEASES, OR DEALS

24
      IN 5 OR MORE VEHICLES, OR BUYS, SELLS, EXCHANGES, BROKERS, OR

25
      DEALS IN SALVAGEABLE PARTS FOR 5 OR MORE VEHICLES, OR BUYS 5 OR





   02986'01 **                                   3

 1
      MORE VEHICLES TO SELL VEHICLE PARTS OR TO PROCESS INTO SCRAP

 2
      METAL IS ENGAGED IN A BUSINESS DESCRIBED IN SUBSECTION (1).

 3
           (3) Dealer does not include  a  ANY OF THE FOLLOWING:

 4
           (A) A BANK, CREDIT UNION, OR SAVINGS AND LOAN ASSOCIATION.

 5
           (B) A person who buys or sells remanufactured vehicle engine

 6
      and transmission salvageable vehicle parts or who receives in

 7
      exchange used engines or transmissions if the primary business of

 8
      the person is the selling of new vehicle parts and the person is

 9
      not engaged in any other activity that requires a dealer license

10
      under this act.

11
           (C) A PERSON WHO NEGOTIATES THE LEASE OF A VEHICLE OF A TYPE

12
      REQUIRED TO BE TITLED UNDER THIS ACT FOR A LEASE TERM OF LESS

13
      THAN 120 DAYS.

14
           (D) A PERSON WHOSE PRIMARY BUSINESS IS THE FINANCING OF THE

15
      PURCHASE, SALE, OR LEASE OF VEHICLES OF A TYPE REQUIRED TO BE

16
      TITLED UNDER THIS ACT.

17
           (E) AN EMPLOYEE OR AGENT OF A DEALER ACTING IN THE SCOPE OF

18
      HIS OR HER EMPLOYMENT OR AGENCY.

19
           Sec. 213.  The secretary of state and  such  THE officers

20
      and investigators of the department  as he shall designate shall

21
      have the power  WHOM HE OR SHE DESIGNATES HAVE THE FOLLOWING

22
      POWERS:

23
           (A)  1.  To inspect any vehicle of a type required to be

24
      registered  hereunder  UNDER THIS ACT AND THE SALVAGEABLE PARTS

25
      OF A VEHICLE OF A TYPE REQUIRED TO BE REGISTERED UNDER THIS ACT

26
      in any public garage or repair shop or in any place where  such

27
      vehicles are held for sale, LEASE, DISMANTLING, or wrecking, for



   02986'01 **                                   4

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      the purpose of locating stolen vehicles AND PARTS OF STOLEN

 2
      VEHICLES and investigating the title and registration  thereof,

 3
      and in  OF VEHICLES.  IN enforcing the provisions of this

 4
      subdivision,  shall  THE SECRETARY OF STATE AND THE OFFICERS AND

 5
      INVESTIGATORS have the  power  POWERS of peace officers.

 6
           (B)  2.  To examine the books and records of all persons

 7
      licensed under this act pertaining to the selling, buying,

 8
      LEASING, DISMANTLING, BROKERING, or wrecking of vehicles of a

 9
      type required to be registered  hereunder  UNDER THIS ACT, and

10
      the payment and collection of tax  thereon as hereinafter  pro-

11
      vided FOR IN THIS ACT.

12
           (C)  3. Of  THE POWERS OF peace officers for the purpose of

13
      enforcing the provisions of chapter 5.  of this act.

14
           Sec. 216.  Every motor vehicle, pickup camper, trailer

15
      coach, trailer, semitrailer, and pole trailer, when driven or

16
      moved upon a highway, is subject to the registration and certifi-

17
      cate of title provisions of this act except the following:

18
           (a) A vehicle driven or moved upon a highway in conformance

19
      with the provisions of this act relating to manufacturers, trans-

20
      porters, dealers, or nonresidents.

21
           (b) A vehicle that is driven or moved upon a highway only

22
      for the purpose of crossing that highway from 1 property to

23
      another.

24
           (c) An implement of husbandry.

25
           (d) Special mobile equipment for which the secretary of

26
      state may issue a special registration to an individual,

27
      partnership, corporation, or association not licensed as a dealer



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 1
      to identify the equipment when being moved over the streets and

 2
      highways upon payment of the required fee.

 3
           (e) A vehicle that is propelled exclusively by electric

 4
      power obtained from overhead trolley wires though not operated

 5
      upon rails.

 6
           (f) Any vehicle subject to registration, but owned by the

 7
      government of the United States.

 8
           (g) A certificate of title need not be obtained for a trail-

 9
      er, semitrailer, or pole trailer weighing less than 2,500 pounds.

10
       respectively.

11
           (h) A vehicle driven or moved upon the highway only for the

12
      purpose of securing a weight receipt from a weighmaster as is

13
      required in section 801, or for obtaining a vehicle inspection by

14
      a law enforcement agency before titling or registration, and then

15
      only by the most direct route.

16
           (i) A certificate of title need not be obtained for a vehi-

17
      cle owned by a manufacturer or dealer and held for sale OR LEASE,

18
      even though incidentally moved on the highway or used for pur-

19
      poses of testing or demonstration.

20
           (j) A bus or school bus, as defined in section 4b or 57,

21
      that is not self-propelled and used exclusively as a construction

22
      shanty.

23
           (k) A certificate of title need not be obtained for a

24
      moped.

25
           (l) For 3 days immediately following the date of a properly

26
      assigned title OR SIGNED LEASE AGREEMENT from any person other

27
      than a vehicle dealer, a registration need not be obtained for a



   02986'01 **                                   6

 1
      vehicle driven or moved upon the highway for the sole purpose of

 2
      transporting the vehicle in the most direct route from the place

 3
      of purchase OR LEASE to a place of storage if the driver has in

 4
      his or her possession the assigned title showing the date of sale

 5
      OR LEASE AGREEMENT SHOWING THE DATE OF THE LEASE.

 6
           (m) A certificate of registration need not be obtained for a

 7
      pickup camper,  .  However,  BUT a certificate of title shall be

 8
      obtained.  for a pickup camper purchased after January 1, 1991.

 9
           (n) A new motor vehicle driven or moved upon the highway

10
      only for the purpose of moving the vehicle from an accident site

11
      to a storage location if the vehicle was being transported on a

12
      railroad car or semitrailer that was involved in a disabling

13
      accident.

14
           Sec. 217.  (1) An owner of a vehicle that is subject to reg-

15
      istration under this act shall apply to the secretary of state,

16
      upon an appropriate form furnished by the secretary of state, for

17
      the registration of the vehicle and issuance of a certificate of

18
      title for the vehicle.   Effective January 1, 1994, a  A vehicle

19
      brought into this state from another state or jurisdiction that

20
      has a rebuilt, salvage, scrap, or comparable certificate of title

21
      issued by that other state or jurisdiction shall be issued a

22
      rebuilt, salvage, or scrap certificate of title by the secretary

23
      of state.  The application shall be accompanied by the required

24
      fee.  An application for a certificate of title shall bear the

25
      signature of the owner.  The application shall contain all of the

26
      following:





   02986'01 **                                   7

 1
           (a) The owner's name, the owner's bona fide residence, and

 2
      either of the following:

 3
           (i)  The owner's mailing address, if  IF the owner is an

 4
      individual, THE OWNER'S MAILING ADDRESS.

 5
           (ii)  The owner's business address, if  IF the owner is a

 6
      firm, association, PARTNERSHIP, LIMITED LIABILITY COMPANY, or

 7
      corporation, THE OWNER'S BUSINESS ADDRESS.

 8
           (b) A description of the vehicle including the make or name,

 9
      style of body, and model year; the number of miles, not including

10
      the tenths of a mile, registered on the vehicle's odometer at the

11
      time of transfer; whether the vehicle is to be or has been used

12
      as a taxi or police vehicle, or by a political subdivision of

13
      this state, unless the vehicle is owned by a dealer and loaned or

14
      leased to a political subdivision of this state for use as a

15
      driver education vehicle; whether the vehicle has previously been

16
      issued a salvage or rebuilt certificate of title from this state

17
      or a comparable certificate of title from any other state or

18
      jurisdiction; vehicle identification number; and the vehicle's

19
      weight fully equipped, if a passenger vehicle registered in

20
      accordance with section 801(1)(a), and, if a trailer coach or

21
      pickup camper, in addition to the weight, the manufacturer's

22
      serial number, or in the absence of the serial number, a number

23
      assigned by the secretary of state.  A number assigned by the

24
      secretary of state shall be permanently placed on the trailer

25
      coach or pickup camper in the manner and place designated by the

26
      secretary of state.





   02986'01 **                                   8

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           (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 OR LESSEE of the vehicle and their successors in inter-

19
      est against any expense, loss, or damage, including reasonable

20
      attorney's fees, by reason of the issuance of a certificate of

21
      title for the vehicle or on account of any defect in the right,

22
      title, or interest of the applicant in the vehicle.  An inter-

23
      ested person has a right of action to recover on the bond for a

24
      breach of the conditions of the bond, but the aggregate liability

25
      of the surety to all persons shall not exceed the amount of the

26
      bond.  The bond shall be returned at the end of 3 years, or

27
      before 3 years if the vehicle is no longer registered in this



   02986'01 **                                   9

 1
      state and the currently valid certificate of title is surrendered

 2
      to the secretary of state, unless the secretary of state has

 3
      received notification of the pendency of an action to recover on

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      the bond.  If the secretary of state is not satisfied as to the

 5
      ownership of a vehicle that is valued at $2,500.00 or less and

 6
      that is not a late model vehicle, the secretary of state shall

 7
      require the applicant to certify that the applicant is the owner

 8
      of the vehicle and entitled 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



   02986'01 **                                  10

 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)  Beginning October 1, 1999, the secretary of state shall

18
      require an  AN applicant for registration of a leased pickup

19
      truck or passenger vehicle that is subject to registration under

20
      this act, except a vehicle that is subject to registration tax

21
      under section 801g,  to  SHALL disclose in writing the lessee's

22
      name, the lessee's bona fide residence, and either of the

23
      following:

24
           (a)  The  IF THE LESSEE IS AN INDIVIDUAL, THE lessee's

25
      Michigan driver license number or Michigan personal identifica-

26
      tion number or, if the lessee does not have a Michigan driver





   02986'01 **                                  11

 1
      license or Michigan personal identification number, the lessee's

 2
      mailing address.  , if the lessee is an individual.

 3
           (b)  The lessee's business address, if  IF the lessee is a

 4
      firm, association, PARTNERSHIP, LIMITED LIABILITY COMPANY, or

 5
      corporation, THE LESSEE'S BUSINESS ADDRESS.

 6
           (3) The secretary of state shall maintain the information

 7
      described in subsection (2) on the secretary of state's computer

 8
      records.

 9
           (4) A dealer selling, LEASING, or exchanging vehicles

10
      required to be titled, within 15 days after delivering a vehicle

11
      to the purchaser OR LESSEE, and a person engaged in the sale of

12
      vessels required to be numbered by part 801 of the natural

13
      resources and environmental protection act, 1994 PA 451, MCL

14
      324.80101 to 324.80199, within 15 days after delivering a boat

15
      trailer weighing less than 2,500 pounds to the purchaser OR

16
      LESSEE, shall apply to the secretary of state for a new title, if

17
      required, and transfer or secure registration plates and secure a

18
      certificate of registration for the vehicle or boat trailer, in

19
      the name of the purchaser OR LESSEE.  The dealer's license may be

20
      suspended or revoked in accordance with section 249 for failure

21
      to apply for a title when required or for failure to transfer or

22
      secure registration plates and certificate of registration within

23
      the 15 days required by this section.  If the dealer or person

24
      fails to apply for a title when required, and to transfer or

25
      secure registration plates and secure a certificate of registra-

26
      tion and pay the required fees within 15 days of delivery of the

27
      vehicle or boat trailer, a title and registration for the vehicle



   02986'01 **                                  12

 1
      or boat trailer may subsequently be acquired only upon the

 2
      payment of a transfer fee of $15.00 in addition to the fees spec-

 3
      ified in section 806.  The purchaser OR LESSEE of the vehicle or

 4
      THE PURCHASER OF THE boat trailer shall sign the application,

 5
      including, when applicable, the declaration specifying the maxi-

 6
      mum elected gross weight, as required by subsection (1)(f), and

 7
      other necessary papers to enable the dealer or person to secure

 8
      the title, registration plates, and transfers from the secretary

 9
      of state.

10
           (5) If a vehicle is delivered to a purchaser OR LESSEE who

11
      has valid Michigan registration plates that are to be transferred

12
      to the vehicle, and an application for title, if required, and

13
      registration for the vehicle is not made before delivery of the

14
      vehicle to the purchaser OR LESSEE, the registration plates shall

15
      be affixed to the vehicle immediately, and the dealer shall pro-

16
      vide the purchaser OR LESSEE with an instrument in writing, on a

17
      form prescribed by the secretary of state, which shall serve as a

18
      temporary registration for the vehicle for a period of 15 days

19
      from the date the vehicle is delivered.

20
           (6) An application for a certificate of title that indicates

21
      the existence of a security interest in the vehicle or in an

22
      accessory to the vehicle, if requested by the security interest

23
      holder, shall be accompanied by a copy of the security agreement

24
      which need not be signed.  The request may be made of the seller

25
      on an annual basis.  The secretary of state shall indicate on the

26
      copy the date and place of filing of the application and return

27
      the copy to the person submitting the application who shall



   02986'01 **                                  13

 1
      forward it to the holder of the security interest named in the

 2
      application.

 3
           (7) If the seller does not prepare the credit information,

 4
      contract note, and mortgage, and the holder, finance company,

 5
      credit union, or banking institution requires the installment

 6
      seller to record the lien on the title, the holder, finance com-

 7
      pany, credit union, or banking institution shall pay the seller a

 8
      service fee of not more than $10.00.  The service fee shall be

 9
      paid from the finance charges and shall not be charged to the

10
      buyer in addition to the finance charges.  The holder, finance

11
      company, credit union, or banking institution shall issue its

12
      check or bank draft for the principal amount financed, payable

13
      jointly to the buyer and seller, and there shall be imprinted on

14
      the back side of the check or bank draft the following:

15
           "Under Michigan law, the seller must record a first lien in

16
      favor of (name of lender) _______________ on the vehicle with

17
      vehicle identification number _______________ and title the vehi-

18
      cle only in the name(s) shown on the reverse side."  On the front

19
      of the sales check or draft, the holder, finance company, credit

20
      union, or banking institution shall note the name(s) of the pro-

21
      spective owner(s).  Failure of the holder, finance company,

22
      credit union, or banking institution to comply with these

23
      requirements frees the seller from any obligation to record the

24
      lien or from any liability that may arise as a result of the

25
      failure to record the lien.  A service fee shall not be charged

26
      to the buyer.





   02986'01 **                                  14

 1
           (8) In the absence of actual malice proved independently and

 2
      not inferred from lack of probable cause, a person who in any

 3
      manner causes a prosecution for larceny of a motor vehicle; for

 4
      embezzlement of a motor vehicle; for any crime an element of

 5
      which is the taking of a motor vehicle without authority; or for

 6
      buying, receiving, possessing, LEASING, or aiding in the conceal-

 7
      ment of a stolen, embezzled, or converted motor vehicle knowing

 8
      that the motor vehicle has been stolen, embezzled, or converted,

 9
      is not liable for damages in a civil action for causing the

10
      prosecution.  This subsection does not relieve a person from

11
      proving any other element necessary to sustain his or her cause

12
      of action.

13
           Sec. 217c.   (1) An insurance company licensed to conduct

14
      business in this state that determines that a late model vehicle

15
      that the company insures has become a distressed vehicle shall

16
      proceed under either of the following:

17
           (a) If the insurance company acquires ownership of the vehi-

18
      cle through payment of a claim, the owner of the vehicle shall

19
      assign the certificate of title to the insurance company which

20
      shall do all of the following:

21
           (i) Surrender a properly assigned certificate of title to

22
      the secretary of state.

23
           (ii) Apply for a salvage certificate of title.  The insur-

24
      ance company shall not sell the vehicle without first receiving a

25
      salvage certificate of title which shall be assigned to the

26
      buyer.





   02986'01 **                                  15

 1
           (b) If after payment of a claim the insurance company

 2
      permits the owner of the vehicle to retain ownership, the

 3
      insurance company shall do all of the following:

 4
           (i) Require each owner of the vehicle to sign an application

 5
      for a salvage certificate of title.

 6
           (ii) Attach the owner's certificate of title to the applica-

 7
      tion for a salvage certificate of title or have the owner certify

 8
      that the certificate of title is lost.

 9
           (iii) On behalf of the owner, apply to the secretary of

10
      state for a salvage certificate of title in the name of the

11
      owner.  The owner shall not sell or otherwise dispose of the

12
      vehicle without first receiving a salvage certificate of title,

13
      which shall be assigned to the buyer.

14
           (2) If an insurance company acquires ownership of a vehicle

15
      other than a late model vehicle through payment of damages due to

16
      an accident, the company shall surrender a properly assigned

17
      title to the buyer upon delivery.

18
           (3) If a dealer, other than a vehicle scrap metal processor,

19
      acquires ownership of a late model vehicle that is a distressed

20
      vehicle from an owner and receives an assigned certificate of

21
      title, the dealer shall surrender the assigned certificate of

22
      title to the secretary of state and apply for a salvage certifi-

23
      cate of title within 5 days after the dealer receives the

24
      assigned certificate of title.  The dealer may sell the vehicle

25
      to another dealer by assigning the salvage certificate of title

26
      to the buyer.  If the vehicle is sold to a buyer other than a

27
      dealer, application shall be made for a salvage certificate in



   02986'01 **                                  16

 1
      the name of the buyer.  A vehicle scrap metal processor shall

 2
      surrender an assigned certificate of title to the secretary of

 3
      state within 30 days after acquiring a vehicle for which a cer-

 4
      tificate of title was received.  A vehicle scrap metal processor

 5
      shall surrender an assigned salvage certificate of title to the

 6
      secretary of state within 30 days after acquiring a vehicle for

 7
      which a salvage certificate of title was received and report that

 8
      the vehicle was destroyed or scrapped.

 9
           (4) If a person, other than a dealer or insurance company

10
      that is subject to subsection (1) or (3), acquires ownership of a

11
      late model vehicle that is a distressed vehicle, the person shall

12
      surrender the title or assigned certificate of title to the sec-

13
      retary of state and apply for a salvage certificate of title,

14
      before the vehicle may be transported.  If an owner retains

15
      ownership of a late model vehicle that should be a distressed

16
      vehicle, the owner shall surrender the title or assigned certifi-

17
      cate of title to the owner's insurance company who, before pay-

18
      ment of a claim, shall apply for a salvage certificate of title

19
      in the name of the owner.

20
           (5) An application for a salvage certificate of title shall

21
      be made on a form prescribed by the secretary of state accom-

22
      panied by a fee of $10.00.  The application shall contain all of

23
      the following:

24
           (a) The complete name and current address of the owner.

25
           (b) A description of the vehicle, including its make, style

26
      of body, model year, weight, color, and vehicle identification

27
      number.



   02986'01 **                                  17

 1
           (c) A description of the damage to the vehicle.

 2
           (d) Until July 1, 1994, a listing of each major component

 3
      part that was not salvageable.

 4
           (e) Further information as may reasonably be required by the

 5
      secretary of state.

 6
           (6) The secretary of state shall issue the salvage certifi-

 7
      cate within 5 business days after the time the application is

 8
      received at the secretary of state's office in Lansing.  Until

 9
      July 1, 1994, each salvage certificate of title shall include a

10
      listing of each major component part that was not salvageable.

11
           (7) A salvage certificate of title shall authorize the

12
      holder of the title to possess, transport, but not drive upon a

13
      highway, and transfer ownership in, a vehicle.  A certificate of

14
      title or registration plates shall not be issued for a vehicle

15
      for which a salvage certificate of title was issued unless a spe-

16
      cially trained police officer certifies that the vehicle identi-

17
      fication numbers and parts identification numbers have been

18
      examined as to their accuracy, the applicant has proof of owner-

19
      ship of repair parts used, the vehicle complies with the equip-

20
      ment standards of this act, and that certification accompanies

21
      the application for a certificate of title.  Until January 1,

22
      1994, an application for a certificate of title shall contain a

23
      description of each salvageable part used to repair the vehicle

24
      and any identification number affixed to or inscribed upon the

25
      part as required by federal law.  A fee of $25.00 through June

26
      30, 1994 shall be received by the police agency for inspection of

27
      the vehicle.  Upon the satisfactory completion of the examination



   02986'01 **                                  18

 1
      and other requirements for application, a certificate of title,

 2
      in the same form as the original, shall be issued for the

 3
      vehicle.

 4
           (8) If a dealer other than a vehicle scrap metal processor

 5
      acquires ownership of an older model vehicle from an owner and

 6
      receives an assigned certificate of title, the dealer shall

 7
      retain the assigned certificate of title as long as the dealer

 8
      retains the vehicle.  A vehicle scrap metal processor shall sur-

 9
      render an assigned certificate of title to the secretary of state

10
      within 30 days after the vehicle is destroyed or scrapped.

11
           (9) A dealer other than a vehicle scrap metal processor

12
      selling or assigning a vehicle to a vehicle scrap metal processor

13
      shall make a record in triplicate on a form to be provided by the

14
      secretary of state in substantially the following form:

15
      

16
                          Scrap Vehicle Inventory:



17
        Dealer name ____________________________________________



18
        Dealer address _________________________________________



19
        Dealer license number __________________________________



20
        Conveyed to:_______________________________Date_________



21
                    (Vehicle scrap metal processor)





   02986'01 **                                  19



 1
                                Vehicles



 2
        Model Year              Vehicle Make              VIN



 3
        1.________              ____________              ___



 4
        2.________              ____________              ___



 5
        3.________              ____________              ___



 6
        etc.

 7
      One copy shall be retained as a permanent record by the dealer, 1

 8
      copy shall be forwarded with the vehicle to be retained by the

 9
      vehicle scrap metal processor, and 1 copy shall be forwarded to

10
      the secretary of state along with an assigned certificate of

11
      title or a salvage certificate.

12
           (10) A person, other than a used or secondhand vehicle parts

13
      dealer or a foreign salvage dealer, or an insurance company

14
      admitted to conduct business in this state, receiving a salvage

15
      certificate of title shall not sell the vehicle to anyone other

16
      than 1 of the following:

17
           (a) The vehicle's former owner.

18
           (b) A used or secondhand vehicle parts dealer.

19
           (c) A vehicle scrap metal processor.

20
           (d) A foreign salvage vehicle dealer licensed under this

21
      act.



   02986'01 **                                  20

 1
           (e) A registered motor vehicle repair facility engaging in

 2
      body work.

 3
           (11) Subsections (1) through (10) shall apply until July 1,

 4
      1994.

 5
           (1)  (12)  The secretary of state may conduct periodic

 6
      reviews of the records of a dealer to determine whether adequate

 7
      notice is given to a transferee OR LESSEE of a rebuilt salvage

 8
      vehicle of that vehicle's prior designation as a salvage

 9
      vehicle.  The secretary of state may request an insurance company

10
      to provide copies of salvage title documents and claims reports

11
      involving major component parts to assist the secretary of state

12
      in monitoring compliance with this act.

13
            (13) Subsections (14) through (36) shall apply on and after

14
      July 1, 1994.

15
           (2)  (14)  Except for a late model vehicle that has been

16
      stolen and recovered and that has no major component part

17
      removed, missing, or destroyed, or damaged and not salvageable,

18
      an insurance company licensed to conduct business in this state

19
      that acquires ownership of a late model vehicle through the pay-

20
      ment of a claim shall proceed under either of the following:

21
           (a) If the insurance company acquires ownership of the vehi-

22
      cle through payment of a claim, the owner of the vehicle shall

23
      assign the certificate of title to the insurance company which

24
      shall do all of the following:

25
           (i) Surrender a properly assigned certificate of title to

26
      the secretary of state.





   02986'01 **                                  21

 1
           (ii) If the estimated cost of repair, including parts and

 2
      labor, is equal to or more than 75% but less than 91% of the

 3
      predamaged actual cash value of the vehicle, apply for a salvage

 4
      certificate of title, and if the estimated cost of repair,

 5
      including parts and labor, is equal to or greater than 91% of the

 6
      predamaged actual cash value of the vehicle, apply for a scrap

 7
      certificate of title.  The insurance company shall not sell the

 8
      vehicle without first receiving a salvage or scrap certificate of

 9
      title, which shall be assigned to the buyer.  An insurance com-

10
      pany may assign a salvage or scrap certificate of the title only

11
      to an automotive recycler, used or secondhand vehicle parts

12
      dealer, foreign salvage vehicle dealer, or vehicle scrap metal

13
      processor.

14
           (b) If after payment of a total loss claim the insurance

15
      company permits the owner of the vehicle to retain ownership, the

16
      insurance company shall do all of the following:

17
           (i) If the estimated cost of repair, including parts and

18
      labor, is equal to or greater than 75% but less than 91% of the

19
      predamaged actual cash value of the vehicle, require each owner

20
      of the vehicle to sign an application for a salvage certificate

21
      of title, or if the estimated cost of repair, including parts and

22
      labor, is equal to or greater than 91% of the predamaged actual

23
      cash value of the vehicle, require each owner of the vehicle to

24
      sign an application for a scrap vehicle certificate of title.

25
           (ii) Attach the owner's certificate of title to the applica-

26
      tion for a salvage or scrap certificate of title or have the

27
      owner certify that the certificate of title is lost.



   02986'01 **                                  22

 1
           (iii) On behalf of the owner, apply to the secretary of

 2
      state for a salvage or scrap certificate of title in the name of

 3
      the owner.  The owner shall not sell or otherwise dispose of the

 4
      vehicle without first receiving a salvage or scrap certificate of

 5
      title, which shall be assigned to the buyer.  An insurance com-

 6
      pany may assign a salvage or scrap certificate of title only to

 7
      an automotive recycler, used or secondhand vehicle parts dealer,

 8
      foreign salvage vehicle dealer, or vehicle scrap metal

 9
      processor.

10
           (3)  (15)  If an insurance company acquires ownership of a

11
      vehicle other than a late model vehicle through payment of dam-

12
      ages due to an accident, the company shall surrender a properly

13
      assigned title to the buyer upon delivery.

14
           (4)  (16)  If a dealer acquires ownership of a late model

15
      vehicle that is a distressed vehicle from an owner, the dealer

16
      shall receive an assigned certificate of title.  If the assigned

17
      certificate of title is not a salvage or scrap certificate of

18
      title, the dealer, other than a vehicle scrap metal processor,

19
      shall surrender the assigned certificate of title to the secre-

20
      tary of state, and if the estimated cost of repair, including

21
      parts and labor, is equal to or greater than 75% but less than

22
      91% of the predamaged actual cash value of the vehicle, apply for

23
      a salvage certificate of title, or if the estimated cost of

24
      repair, including parts and labor, is equal to or greater than

25
      91% of the predamaged actual cash value of the vehicle, apply for

26
      a scrap certificate of title within 5 days after the dealer

27
      receives the assigned certificate of title.  The dealer may sell



   02986'01 **                                  23

 1
      a salvage vehicle to another automotive recycler, used or

 2
      secondhand vehicle parts dealer, foreign salvage vehicle dealer,

 3
      or vehicle scrap metal processor by assigning the salvage certif-

 4
      icate of title to the buyer.  Unless the vehicle is rebuilt,

 5
      inspected, and recertified pursuant to this section, if the vehi-

 6
      cle is sold to a buyer other than a dealer, application shall be

 7
      made for a salvage certificate in the name of the buyer in the

 8
      manner provided in this act.  The dealer may sell a scrap vehicle

 9
      only to a vehicle scrap metal processor.  A vehicle scrap metal

10
      processor shall surrender an assigned certificate of title to the

11
      secretary of state within 30 days after acquiring a vehicle for

12
      which a certificate of title was received.  A vehicle scrap metal

13
      processor shall surrender an assigned salvage or scrap certifi-

14
      cate of title to the secretary of state within 30 days after

15
      acquiring a vehicle for which a salvage or scrap certificate of

16
      title was received and report that the vehicle was destroyed or

17
      scrapped.

18
           (5)  (17)  An application for a scrap certificate of title

19
      shall be made on a form prescribed by the secretary of state

20
      accompanied by a fee of $15.00.  The application shall contain

21
      all of the following:

22
           (a) The complete name and current address of the owner.

23
           (b) A description of the vehicle, including its make, style

24
      of body, model year, fee category or weight, color, and vehicle

25
      identification number.

26
           (c) If the vehicle is a late model vehicle, a listing of

27
      each major component part that was not salvageable.



   02986'01 **                                  24

 1
           (d) Further information as may reasonably be required by the

 2
      secretary of state.

 3
           (6)  (18)  The scrap certificate of title shall authorize

 4
      the holder of the document to transport but not drive upon a

 5
      highway the vehicle or parts of a vehicle, and assign ownership

 6
      to a vehicle scrap metal processor, automotive recycler, used or

 7
      secondhand vehicle parts dealer, or foreign salvage vehicle

 8
      dealer.  A certificate of title shall not again be issued for

 9
      this vehicle.  A person shall not rebuild or repair a scrap vehi-

10
      cle and allow it to retain the original vehicle identification

11
      number.

12
           (7)  (19)  If a person, other than a dealer or insurance

13
      company that is subject to subsection  (14)  (2) or  (16) 
   (4),

14
      acquires ownership of a distressed, late model vehicle, the

15
      person shall surrender the title or assigned certificate of title

16
      to the secretary of state, and if the estimated cost of repair,

17
      including parts and labor, is equal to or greater than 75% but

18
      less than 91% of the predamaged actual cash value of the vehicle,

19
      apply for a salvage certificate of title, or if the estimated

20
      cost of repair, including parts and labor, is equal to or greater

21
      than 91% of the predamaged actual cash value of the vehicle,

22
      apply for a scrap certificate of title before the vehicle may be

23
      transported.

24
           (8)  (20)  An owner of a vehicle may determine that A vehi-

25
      cle  to be  IS a scrap vehicle or a salvage vehicle without

26
      making any determination as to the actual cash value of the

27
      vehicle.



   02986'01 **                                  25

 1
           (9)  (21)  If a leasing company, vehicle manufacturer,

 2
      insurance company not licensed to do business in this state,

 3
      association, repossession company, self-insured owner, financial

 4
      institution, governmental entity, or other company, institution,

 5
      or entity, owns a distressed, late model vehicle, the titleholder

 6
      shall surrender the title or assigned certificate of title to the

 7
      secretary of state and apply for a salvage certificate of title

 8
      if the retail cost of repair, including parts and labor, is equal

 9
      to or greater than 75% but less than 91% of the predamaged actual

10
      cash value of the vehicle, or if the retail cost of repair,

11
      including parts and labor, is equal to or greater than 91% of the

12
      predamaged actual cash value of the vehicle, apply for a scrap

13
      certificate of title, before the vehicle may be transported or

14
      sold.  If ownership is transferred, the owner shall sell the

15
      vehicle only to a dealer who is eligible to buy a salvage or

16
      scrap vehicle in this state unless the owner complies with sub-

17
      section  (24)  (12).  When a leasing company, vehicle manufactur-

18
      er, insurance company not licensed to do business in this state,

19
      association, repossession company, self-insured owner, financial

20
      institution, governmental entity, or other company, institution,

21
      or entity, estimates the repair of a distressed, late model vehi-

22
      cle for the purpose of determining whether to apply for a salvage

23
      or scrap certificate of title, a complete record of the estimate

24
      and, if the vehicle is repaired before a transfer of ownership, a

25
      complete record of the actual cost of the repairs performed and

26
      by whom shall be maintained for a minimum of 5 years by the

27
      leasing company, vehicle manufacturer, insurance company not



   02986'01 **                                  26

 1
      licensed to do business in this state, association, repossession

 2
      company, self-insured owner, financial institution, governmental

 3
      entity, or other company, institution, or entity.  The estimates

 4
      and repair records required by this subsection shall be available

 5
      for unannounced inspections by a law enforcement agency or a rep-

 6
      resentative of the secretary of state.  The secretary of state

 7
      may request a leasing company, vehicle manufacturer, insurance

 8
      company not licensed to do business in this state, association,

 9
      repossession company, self-insured owner, financial institution,

10
      governmental entity, or other company, institution, or entity to

11
      provide copies of title documents, repair estimates, claims

12
      reports involving major component parts, and actual cash value

13
      determination documents to assist the secretary of state in moni-

14
      toring compliance with this act.

15
           (10)  (22)  An application for a salvage certificate of

16
      title shall be made on a form prescribed by the secretary of

17
      state accompanied by a fee of $10.00.  The application shall con-

18
      tain all of the following:

19
           (a) The complete name and current address of the owner.

20
           (b) A description of the vehicle, including its make, style

21
      of body, model year, fee category or weight, color, and vehicle

22
      identification number.

23
           (c) An estimate of the cost repair, including parts and

24
      labor, and an estimate of the predamaged actual cash value of the

25
      vehicle.

26
           (d) If the vehicle is a late model vehicle, a listing of

27
      each major component part that was not salvageable.



   02986'01 **                                  27

 1
           (e) Further information as may reasonably be required by the

 2
      secretary of state.

 3
           (11)  (23)  The secretary of state shall issue and mail the

 4
      salvage certificate within 5 business days after the time the

 5
      application is received at the secretary of state's office in

 6
      Lansing.  Each salvage certificate of title shall include a list-

 7
      ing of each major component part that was not salvageable.

 8
           (12)  (24)  A salvage certificate of title  shall
   authorize

 9
      AUTHORIZES the holder of the title to possess, transport, but not

10
      drive upon a highway, and transfer ownership in, a vehicle.   A

11
      THE SECRETARY OF STATE SHALL NOT ISSUE A certificate of title or

12
      registration plates  shall not be issued  for a vehicle for which

13
      a salvage certificate of title was issued unless a specially

14
      trained officer described in subsection  (25)  (14) certifies all

15
      of the following:

16
           (a) That the vehicle identification numbers and parts iden-

17
      tification numbers  have been examined as to their accuracy  ARE

18
      CORRECT.

19
           (b) That the applicant has proof of ownership of repair

20
      parts used.

21
           (c) That the vehicle complies with the equipment standards

22
      of this act.

23
           (13) The certification required by  this  subsection (12)

24
      shall be made on a form prescribed and furnished by the secretary

25
      of state in conjunction with the department of state police and

26
      shall accompany the application that is submitted to the

27
      secretary of state for a certificate of title.  An application



   02986'01 **                                  28

 1
      for a certificate of title shall contain a description of each

 2
      salvageable part used to repair the vehicle and any identifica-

 3
      tion number affixed to or inscribed upon the part as required by

 4
      state or federal law.   Through June 30, 1994, a fee of $25.00

 5
      shall be received by the police agency for inspection of the

 6
      vehicle and shall be expended by that police agency as provided

 7
      in this subsection.  Upon satisfactory completion of the inspec-

 8
      tion as required by the secretary of state and other requirements

 9
      for application, THE SECRETARY OF STATE SHALL ISSUE a certificate

10
      of title FOR THE VEHICLE bearing  an indicator of its previous

11
      THE LEGEND "REBUILT salvage".  status shall be issued for the

12
      vehicle.  The salvage vehicle inspection fees collected by a

13
      local police agency under this subsection shall be credited to

14
      the budget of that police agency for law enforcement purposes

15
      that affect stolen vehicles, stolen vehicle parts, and salvage

16
      vehicle inspections.  A local police agency shall compensate an

17
      off-duty and limited enforcement police officer for a salvage

18
      vehicle inspection.

19
           (14)  (25)  An officer specially trained as provided by the

20
      secretary of state and authorized by the secretary of state to

21
      conduct a salvage vehicle inspection is either of the following:

22
           (a) An on-duty or off-duty police officer.

23
           (b) A previously certified police officer who is appointed

24
      by the local police agency as a limited enforcement officer to

25
      conduct salvage vehicle inspections.  The local police agency

26
      shall give this officer access to the agency's law enforcement

27
      information network system and the authority to confiscate any



   02986'01 **                                  29

 1
      stolen vehicle or vehicle parts discovered during an inspection.

 2
      The local police agency may give the officer the authority to

 3
      arrest a person suspected of having unlawful possession of a

 4
      stolen vehicle or vehicle parts.

 5
           (15)  (26)  The secretary of state shall issue a certificate

 6
      to an officer who is specially trained as provided by the secre-

 7
      tary of state to conduct salvage vehicle inspections.  Only a

 8
      person who has a valid certification from the secretary of state

 9
      may perform salvage inspections.  The secretary of state on his

10
      or her own initiative or in response to complaints shall make

11
      reasonable and necessary public or private investigations within

12
      or outside of this state and gather evidence against an officer

13
      who was issued a certificate and who violated or is about to vio-

14
      late this act or a rule promulgated under this act.  The secre-

15
      tary of state may suspend, revoke, or deny a certificate after an

16
      investigation if the secretary of state determines that the offi-

17
      cer committed 1 or more of the following:

18
           (a) Violated this act or a rule promulgated under this act.

19
           (b) Was found guilty of a fraudulent act in connection with

20
      the inspection, purchase, sale, LEASE, or transfer of a salvage

21
      vehicle.

22
           (c) Was found guilty of the theft, embezzlement, or misap-

23
      propriation of salvage vehicle inspection fees.

24
           (d) Performed improper, careless, or negligent salvage vehi-

25
      cle inspections.







   02986'01 **                                  30

 1
           (e) Ceased to function as a police officer because of

 2
      suspension, retirement, dismissal, disability, or termination of

 3
      employment.

 4
           (f) Was convicted of a violation or attempted violation of

 5
       Act No. 119 of the Public Acts of 1986, being sections 257.1351

 6
      to 257.1355 of the Michigan Compiled Laws  1986 PA 119,

 7
      MCL 257.1351 TO 257.1355.

 8
           (g) Made a false statement of a material fact in his or her

 9
      certification of a salvage vehicle inspection or any record con-

10
      cerning a salvage vehicle inspection.

11
           (16) Upon receipt of the appropriate abstract of conviction

12
      from a court and without any investigation, the secretary of

13
      state shall immediately revoke the certificate of an officer who

14
      has been convicted of a violation or attempted violation of

15
      section 413, 414, 415, 535, 535a, or 536a of the Michigan penal

16
      code,  Act No. 328 of the Public Acts of 1931, being

17
      sections 750.413, 750.414, 750.415, 750.535, 750.535a, and

18
      750.536a of the Michigan Compiled Laws  1931 PA 328, MCL 750.413,

19
      750.414, 750.415, 750.535, 750.535A, AND 750.536A, or has been

20
      convicted in federal court or in another state of a violation or

21
      attempted violation of a law substantially corresponding to

22
       section 413, 414, 415, 535, 535a, or 536a of the Michigan penal

23
      code, Act No. 328 of the Public Acts of 1931  1 OF THOSE

24
      SECTIONS.

25
           (17)  (27)  If a dealer acquires ownership of an older model

26
      vehicle from an owner, the dealer shall receive an assigned

27
      certificate of title and shall retain it as long as he or she



   02986'01 **                                  31

 1
      retains the vehicle.  A vehicle scrap metal processor shall

 2
      surrender an assigned certificate of title to the secretary of

 3
      state within 30 days after the vehicle is destroyed or scrapped.

 4
           (18)  (28)  A dealer selling or assigning a vehicle to a

 5
      vehicle scrap metal processor shall make a record in triplicate

 6
      on a form to be provided by the secretary of state in substan-

 7
      tially the following form:

 8
      

 9
                          Scrap Vehicle Inventory:



10
         SELLER:  Dealer name _________________________________________



11
                  Dealer address ______________________________________



12
                  Dealer license number _______________________________



13
      PURCHASER:  Conveyed to:__________________________Date___________



14
                        (Vehicle scrap metal processor)



15
                  Dealer address ______________________________________



16
                  Dealer license number _______________________________











   02986'01 **                                  32



 1
                                Vehicles

 2
                                                        Dealer's

 3
                                                        Stock

 4
       Model Year   Vehicle Make   VIN   Title Number   Number    Color



 5
       1.________   ____________   ___   ____________   ______    _____



 6
       2.________   ____________   ___   ____________   ______    _____



 7
       3.________   ____________   ___   ____________   ______    _____



 8
       etc.

 9
      One copy shall be retained as a permanent record by the dealer, 1

10
      copy shall be forwarded with the vehicle to be retained by the

11
      vehicle scrap metal processor, and 1 copy shall be forwarded to

12
      the secretary of state.

13
           (19)  (29)  A person, other than an automotive recycler,

14
      used or secondhand vehicle parts dealer, or a foreign salvage

15
      dealer, receiving a salvage certificate of title shall not sell

16
      the vehicle to anyone other than 1 of the following:

17
           (a) The vehicle's former owner.

18
           (b) A used or secondhand vehicle parts dealer.

19
           (c) A vehicle scrap metal processor.

20
           (d) A foreign salvage vehicle dealer licensed under this

21
      act.





   02986'01 **                                  33

 1
           (e) An automotive recycler.

 2
           (20)  (30)  A person receiving a scrap certificate of title

 3
      shall not sell the vehicle to anyone other than 1 of the

 4
      following:

 5
           (a) An automotive recycler.

 6
           (b) A vehicle scrap metal processor.

 7
           (c) A foreign salvage vehicle dealer licensed under this

 8
      act.

 9
           (d) A used or secondhand vehicle parts dealer.

10
           (21)  (31)  The secretary of state may conduct periodic

11
      reviews of the records of a dealer to determine whether adequate

12
      notice is given to a transferee OR LESSEE of a rebuilt salvage

13
      vehicle of that vehicle's prior designation as a salvage

14
      vehicle.  The secretary of state may request an insurance company

15
      to provide copies of salvage title documents and claims reports

16
      involving major component parts to assist the secretary of state

17
      in monitoring compliance with this act.

18
           (22)  (32)  A licensed automotive recycler, used or second-

19
      hand vehicle parts dealer, vehicle scrap metal processor, vehicle

20
      salvage pool operator, distressed vehicle transporter, foreign

21
      salvage vehicle dealer, or broker who has removed a scrap vehicle

22
      from this state for the purpose of rebuilding the vehicle or

23
      selling OR LEASING the vehicle to a person other than a vehicle

24
      scrap metal processor, shall receive an automatic suspension of

25
       their  ITS dealer license and of any salvage vehicle agent's

26
      license assigned to that dealer for a period of 30 days.  Upon

27
      receipt by the secretary of state of a written request from the



   02986'01 **                                  34

 1
      dealer, the dealer shall have the right to an immediate hearing

 2
      on the matter within that 30-day period.

 3
           (23)  (33)  For the purpose of this section, the estimated

 4
      costs of the repair parts shall be determined by using the cur-

 5
      rent published retail cost of original manufacturer equipment

 6
      parts or an estimate of the actual cost of the repair parts.  The

 7
      estimated labor costs shall be computed by using the hourly rate

 8
      and time allocations which are reasonable and commonly assessed

 9
      in the repair industry in the community where the repairs are

10
      performed.

11
           (24)  (34) Beginning July 1, 1994, a fee of $50.00 shall be

12
      received by a  A police agency SHALL CHARGE A FEE OF $50.00 for

13
      an inspection of a vehicle pursuant to subsection  (24)  (12).

14
      The  fee shall be credited  POLICE AGENCY SHALL CREDIT THE FEE to

15
      the budget of that police agency and  used  USE THE FEE for law

16
      enforcement purposes that affect stolen vehicles, stolen vehicle

17
      parts, and salvage vehicle inspections.  A local police agency

18
      shall compensate an off-duty and limited enforcement police offi-

19
      cer for a salvage vehicle inspection.

20
           (25)  (35)  For the purpose of this section, "actual cash

21
      value" means the retail dollar value of a vehicle as determined

22
      by an objective vehicle evaluation using local market resources

23
      such as dealers or want ads or by an independent vehicle evalu-

24
      ation or vehicle appraisal service or by a current issue of a

25
      nationally recognized used vehicle guide for financial institu-

26
      tion appraisal purposes in this state.





   02986'01 **                                  35

 1
            (36) The secretary of state shall convene a task force in a

 2
      timely manner to develop standards for police to use in

 3
      performing inspections.  The task force shall include representa-

 4
      tives of the Michigan sheriffs association, the chiefs of police

 5
      association, the Michigan state police, the insurance industry, a

 6
      used vehicle parts dealer, the automobile theft prevention

 7
      authority, and an automotive recycler.  Inspections may continue

 8
      to be performed under existing standards until the task force

 9
      approves new standards.  Inspections under this act must be

10
      according to these standards and the standards shall be reported

11
      to the legislature.

12
           Sec. 222.  (1) Except as otherwise provided in this act, the

13
      secretary of state shall issue a registration certificate and a

14
      certificate of title when registering a vehicle  and  upon

15
      receipt of the required fees.   A  THE SECRETARY OF STATE SHALL

16
      ISSUE A REBUILT SALVAGE, SALVAGE, OR SCRAP CERTIFICATE OF TITLE

17
      FOR A vehicle brought into this state from another state or

18
      jurisdiction that has a rebuilt, salvage, or scrap certificate of

19
      title issued by that other state or jurisdiction.  shall be

20
      issued a rebuilt, salvage, or scrap certificate of title by the

21
      secretary of state.

22
           (2) The SECRETARY OF STATE SHALL DELIVER THE registration

23
      certificate  shall be delivered  to the owner.  and  THE

24
      CERTIFICATE shall contain on its face the date issued, the name

25
      and address of the owner, the registration number assigned to the

26
      vehicle, and a description of the vehicle as determined by the

27
      secretary of state.



   02986'01 **                                  36

 1
           (3) The certificate of title shall be manufactured in a

 2
      manner to prohibit as nearly as possible the ability to repro-

 3
      duce, alter, counterfeit, forge, or duplicate the certificate of

 4
      title without ready detection.  and  THE CERTIFICATE SHALL con-

 5
      tain on its face  the  ALL OF THE FOLLOWING:

 6
           (A) THE identical information required on the face of the

 7
      registration certificate.  ; if

 8
           (B) IF the vehicle is a motor vehicle, the number of miles,

 9
      not including the tenths of a mile, registered on the vehicle's

10
      odometer at the time of transfer.  ; whether

11
           (C) WHETHER the vehicle is to be used or has been used as a

12
      taxi, as a police vehicle, or by a political subdivision of this

13
      state, unless the vehicle is owned by a dealer and loaned or

14
      leased to a political subdivision of this state for use as a

15
      driver education vehicle.  ; whether

16
           (D) WHETHER the vehicle is a salvage vehicle.  ; if

17
           (E) IF the vehicle has previously been issued a rebuilt cer-

18
      tificate of title from this state or a comparable certificate of

19
      title from any other state or jurisdiction.  ; if

20
           (F) IF the vehicle has been issued a scrap certificate of

21
      title from this state or a comparable certificate of title from

22
      any other state or jurisdiction.  ; if

23
           (G) IF the owner or co-owner or lessee or co-lessee of the

24
      vehicle is subject to registration denial under

25
      section 219(1)(d).  ; a







   02986'01 **                                  37

 1
           (H) A statement of the owner's title and of all security

 2
      interests in the vehicle or in an accessory on the vehicle as set

 3
      forth in the application.  ; the

 4
           (I) THE date that the application was filed.  ; and any

 5
           (J) ANY other information that the secretary of state may

 6
      require.

 7
           (4) The certificate of title shall contain a form for

 8
      assignment of title or interest and warranty of title by the

 9
      owner with space for the notation of a security interest in the

10
      vehicle and in an accessory on the vehicle, which at the time of

11
      a transfer shall be certified and signed, and space for a written

12
      odometer mileage statement that is required upon transfer pursu-

13
      ant to section 233a.  The certificate of title may also contain

14
      other forms that the secretary of state considers necessary to

15
      facilitate the effective administration of this act.  The certif-

16
      icate shall bear the coat of arms of this state.

17
           (5) The SECRETARY OF STATE SHALL MAIL OR DELIVER THE certif-

18
      icate of title  shall be mailed or delivered  to the owner or

19
      other person the owner may direct in a separate instrument, in a

20
      form PRESCRIBED BY the secretary of state.  shall prescribe.

21
           (6) A person who intentionally reproduces, alters, counter-

22
      feits, forges, or duplicates a certificate of title or who uses a

23
      reproduced, altered, counterfeited, forged, or duplicated certif-

24
      icate of title shall be punished as follows:

25
           (a) If the intent of reproduction, alteration, counterfeit-

26
      ing, forging, duplication, or use was to commit or aid in the

27
      commission of an offense punishable by imprisonment for 1 or more



   02986'01 **                                  38

 1
      years, the person committing the reproduction, alteration,

 2
      counterfeiting, forging, duplication, or use is guilty of a mis-

 3
      demeanor, punishable by imprisonment for a period equal to that

 4
      which could be imposed for the commission of the offense the

 5
      person had the intent to aid or commit.  The court may also

 6
      assess a fine of not more than $10,000.00 against the person.

 7
           (b) If the intent of the reproduction, alteration, counter-

 8
      feiting, forging, duplication, or use was to commit or aid in the

 9
      commission of an offense punishable by imprisonment for not more

10
      than 1 year, the person committing the reproduction, alteration,

11
      counterfeiting, forging, duplication, or use is guilty of a mis-

12
      demeanor, punishable by imprisonment for not more than 1 year, or

13
      a fine of not more than $1,000.00, or both.

14
           (7) The certificate of title for a police vehicle, a vehicle

15
      owned by a political subdivision of this state, a salvage vehi-

16
      cle, a rebuilt vehicle, and a scrap vehicle shall be different in

17
      color from the certificate of title for all other vehicles unless

18
      the vehicle is loaned or leased to a political subdivision of

19
      this state for use as a driver education vehicle.

20
           (8) A scrap certificate of title shall contain a legend that

21
      the vehicle is not to be titled or registered and is to be used

22
      for parts or scrap metal only.

23
           (9) A certificate of title shall not be issued for a vehicle

24
       which  THAT has had a salvage certificate of title unless the

25
      certificate of title contains  a  THE legend  that discloses the

26
      vehicle's former condition to consumers and potential purchasers

27
      "REBUILT SALVAGE".



   02986'01 **                                  39

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

 2
      secretary of state expires on the owner's birthday, unless

 3
      another expiration date is provided for under this act or unless

 4
      the registration is for the following vehicles, in which case

 5
      registration expires on the last day of February:

 6
           (a) A commercial vehicle except for a commercial vehicle

 7
      issued a registration under the international registration plan

 8
      or a pickup truck or van owned by an individual.

 9
           (b) Except for a trailer or semitrailer issued a registra-

10
      tion under the international registration plan, a trailer or

11
      semitrailer owned by a business, corporation, or person other

12
      than an individual; or a pole trailer.

13
           (2) The expiration date for a registration issued for a

14
      motorcycle is March 31.

15
           (3) The expiration date for a registration bearing the let-

16
      ters "SEN" or "REP" is February 1.

17
           (4) In the case of a vehicle owned by a business, corpora-

18
      tion, or an owner other than an individual, the secretary of

19
      state may assign or reassign the expiration date of the

20
      registration.

21
           (5) The secretary of state shall do all of the following:

22
           (a) After the October 1 immediately preceding the year des-

23
      ignated on the registration, issue a registration upon applica-

24
      tion and payment of the proper fee for a commercial vehicle,

25
      other than a pickup or van owned by an individual; or a trailer

26
      owned by a business, corporation, or person other than an

27
      individual.



   02986'01 **                                  40

 1
           (b) Beginning 60 days before the expiration date assigned on

 2
      an international registration plan registration plate, issue a

 3
      registration under section 801g upon application and payment of

 4
      the proper apportioned fee for a commercial vehicle engaged in

 5
      interstate commerce.

 6
           (c) After the February 14 immediately preceding the year

 7
      designated on a registration, issue a registration upon applica-

 8
      tion and payment of the proper fee for a motorcycle.

 9
           (d) Beginning 45 days before the owner's birthday and 120

10
      days before the expiration date assigned by the secretary of

11
      state, issue a registration for a vehicle other than those desig-

12
      nated in subsection (1)(a) or (b).  However, if an owner whose

13
      registration period begins 45 days before his or her birthday

14
      will be out of the state during the 45 days immediately preceding

15
      expiration of a registration or for other good cause shown cannot

16
      apply for a renewal registration within the 45-day period, appli-

17
      cation for a renewal registration may be made not more than 6

18
      months before expiration.

19
           (6) Except as otherwise provided in this subsection, the

20
      secretary of state, upon application and payment of the proper

21
      fee, shall issue a registration for a vehicle to a resident that

22
      shall expire on the owner's birthday.  If the owner's next birth-

23
      day is at least 6 months but not more than 12 months in the

24
      future, the owner shall receive a registration valid until the

25
      owner's next birthday.  If the owner's next birthday is less than

26
      6 months in the future, the owner shall receive a registration

27
      valid until the owner's birthday following the owner's next



   02986'01 **                                  41

 1
      birthday.  The tax required under this act for a registration

 2
      described in this subsection shall bear the same relationship to

 3
      the tax required under section 801 for a 12-month registration as

 4
      the length of time of the registration bears to 12 months.

 5
      Partial months shall be considered as whole months in the calcu-

 6
      lation of the required tax and in the determination of the length

 7
      of time between the application for a registration and the

 8
      owner's next birthday.  The tax required for that registration

 9
      shall be rounded off to whole dollars as provided in section

10
      801.

11
           (7) A certificate of title shall remain valid until canceled

12
      by the secretary of state for cause or upon a transfer of an

13
      interest shown on the certificate of title.

14
           (8) The secretary of state, upon request, shall issue spe-

15
      cial registration for commercial vehicles, valid for 6 months

16
      after the date of issue, if the full registration fee exceeds

17
      $50.00, on the payment of 1/2 the full registration fee and a

18
      service charge as enumerated in section 802(1).

19
           (9) The secretary of state may issue a special registration

20
      for each of the following:

21
           (a) A new vehicle purchased OR LEASED outside of this state

22
      and delivered in this state to the purchaser OR LESSEE by the

23
      manufacturer of that vehicle for removal to a place outside of

24
      this state, if a certification is made that the vehicle will be

25
      primarily used, stored, and registered outside of this state and

26
      will not be returned to this state by the purchaser OR LESSEE for

27
      use or storage.



   02986'01 **                                  42

 1
           (b) A vehicle purchased OR LEASED in this state and

 2
      delivered to the purchaser OR LESSEE by a dealer or by the owner

 3
      of the vehicle for removal to a place outside of this state, if a

 4
      certification is made that the vehicle will be primarily used,

 5
      stored, and registered outside of this state and will not be

 6
      returned to this state by the purchaser OR LESSEE for use or

 7
      storage.

 8
           (10) A special registration issued under subsection (9) is

 9
      valid for not more than 14 days after the date of issuance, and a

10
      fee shall be collected for each special registration as provided

11
      in section 802(3).  The special registration may be in the form

12
      determined by the secretary of state.  If a dealer makes a retail

13
      sale OR LEASE of a vehicle to a purchaser OR LESSEE who is quali-

14
      fied and eligible to obtain a special registration, the dealer

15
      shall apply for the special registration for the purchaser OR

16
      LESSEE.  If a person other than a dealer sells OR LEASES a vehi-

17
      cle to a purchaser OR LESSEE who is qualified and eligible to

18
      obtain a special registration, the purchaser OR LESSEE shall

19
      appear in person, or by a person exercising the purchaser's OR

20
      LESSEE'S power of attorney, at an office of the secretary of

21
      state and furnish a certification that the person is the bona

22
      fide purchaser OR LESSEE or that the person has granted the power

23
      of attorney, together with other forms required for the issuance

24
      of the special registration and provide the secretary of state

25
      with proof that the vehicle is covered by a Michigan no-fault

26
      insurance policy issued pursuant to section 3101 of the insurance

27
      code of 1956, 1956 PA 218, MCL 500.3101, or proof that the



   02986'01 **                                  43

 1
      vehicle is covered by a policy of insurance issued by an insurer

 2
      pursuant to section 3163 of the insurance code of 1956, 1956

 3
      PA 218, MCL 500.3163.  The certification required in this subsec-

 4
      tion shall contain all of the following:

 5
           (a) The address of the purchaser OR LESSEE.

 6
           (b) A statement that the vehicle is purchased OR LEASED for

 7
      registration outside of this state.

 8
           (c) A statement that the vehicle shall be primarily used,

 9
      stored, and registered outside of this state.

10
           (d) The name of the jurisdiction in which the vehicle is to

11
      be registered.

12
           (e) Other information  desired  REQUESTED by the secretary

13
      of state.

14
           (11) Upon request, the secretary of state may issue a regis-

15
      tration valid for 6 months after the date of issuance for use on

16
      a trailer or semitrailer weighing 1,500 pounds or less and that

17
      is used for recreational purposes, upon payment of 1/2 the full

18
      registration fee imposed under section 801(1)(l).

19
           (12) In the case of a commercial vehicle, trailer, or semi-

20
      trailer issued a registration under the international registra-

21
      tion plan, the secretary of state in mutual agreement with the

22
      owner may assign or reassign the expiration date of the

23
      registration.  However, the expiration date agreed to shall be

24
      either March 31, June 30, September 30, or December 31.  Renewals

25
      expiring on or after September 30, 1993 shall be for a minimum of

26
      at least 12 months if there is a change in the established

27
      expiration date.



   02986'01 **                                  44

 1
           (13) The expiration date for a multiyear registration issued

 2
      for a leased vehicle shall be the date the lease expires but

 3
      shall not be for a period longer than 24 months.

 4
           Sec. 226a.  (1) Temporary registration plates or markers may

 5
      be issued to licensed dealers in vehicles and to persons engaged

 6
      in the sale of vessels required to be numbered by part 801 of the

 7
      natural resources and environmental protection act, 1994 PA 451,

 8
      MCL 324.80101 to 324.80199, upon application accompanied by the

 9
      proper fee, for use by purchasers OR LESSEES of vehicles, for not

10
      to exceed 15 days pending receipt of regular registration plates

11
      from the dealer or person.

12
           Only 1 temporary plate or marker may be issued to a pur-

13
      chaser OR LESSEE of a vehicle.  If a dealer or person requires a

14
      purchaser OR LESSEE of a vehicle or PURCHASER OR LESSEE OF A

15
      vessel to pay for a temporary plate or marker, the dealer or

16
      person shall not charge the purchaser OR LESSEE more than the

17
      dealer or person was charged by the secretary of state for the

18
      individual plate or marker.  The SECRETARY OF STATE SHALL DETER-

19
      MINE THE COMPOSITION AND DESIGN OF THE temporary registration

20
      plates or markers.  shall be made of such material and design as

21
      the secretary of state shall determine.

22
           (2) A temporary registration plate or marker shall show in

23
      ink the date of issue, a description of the vehicle for which

24
      issued, and  such  ANY other information  as  REQUIRED BY the

25
      secretary of state.  may require.  A dealer or person shall imme-

26
      diately notify the secretary of state of each temporary

27
      registration plate or marker issued by the dealer or person, on a



   02986'01 **                                  45

 1
      form prescribed by the secretary of state.  Upon the attachment

 2
      of the regular plate to a vehicle for which a temporary registra-

 3
      tion plate or marker has been issued, the temporary plate shall

 4
      be destroyed.

 5
           (3) All temporary registration plates or markers shall be

 6
      serially numbered and upon issuance the number shall be noted on

 7
      the statement of vehicle sale form or in the case of a boat

 8
      trailer on a form prescribed by the secretary of state.

 9
           (4) A dealer or person, upon demand, shall immediately sur-

10
      render any temporary registration plates or markers in his or her

11
      possession if the secretary of state finds, after investigation,

12
      that the dealer or person has violated this section, and the

13
      dealer or person shall immediately forfeit any right to the tem-

14
      porary registration plates or markers.

15
           (5)  Registration plates may be issued  THE SECRETARY OF

16
      STATE MAY ISSUE A REGISTRATION PLATE upon application and payment

17
      of the proper fee to an individual, partnership, corporation, or

18
      association who in the ordinary course of business has occasion

19
      to legally repossess a vehicle in which a security interest is

20
      held.  A registration plate issued pursuant to this subsection

21
      shall be used to move and dispose of a vehicle.

22
           (6)  Registration plates may be issued  THE SECRETARY OF

23
      STATE MAY ISSUE A REGISTRATION PLATE upon application and payment

24
      of the proper fee to an individual, partnership, corporation, or

25
      association who in the ordinary course of business has occasion

26
      to legally pick up or deliver a vehicle not required to be titled

27
      under this act, or to repair or service a vehicle, or to persons



   02986'01 **                                  46

 1
      defined as dealers under part 801 of  Act No. 451 of the Public

 2
      Acts of 1994  THE NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION

 3
      ACT, 1994 PA 451, MCL 324.80101 TO 324.80199, for the purpose of

 4
      delivering a vessel or trailer to a customer or to and from a

 5
      boat show or exposition.  A registration plate issued under this

 6
      subsection shall be used to move  such a  THE vehicle.

 7
           (7)  Registration plates may be issued  THE SECRETARY OF

 8
      STATE MAY ISSUE A REGISTRATION PLATE upon application and payment

 9
      of the proper fee to an individual, partnership, corporation, or

10
      association who in the ordinary course of business operates an

11
      auto auction, and who in the ordinary course of business has

12
      occasion to legally pick up a vehicle which will be offered for

13
      sale at the auction, or deliver a vehicle which has been offered

14
      for sale at the auction.   Such  THE registration  plates 
   PLATE

15
      shall be used only to move vehicles as provided in this

16
      subsection.  Auto auctions that make application for  such  A

17
      registration  plates  PLATE UNDER THIS SUBSECTION shall furnish a

18
      surety bond as  may be  required by the secretary of state.

19
           Sec. 233b.  (1) As used in this section:

20
           (a) "Distributor" means that term as defined in section 3(1)

21
      of  Act No. 118 of the Public Acts of 1981, being

22
      section 445.1563 of the Michigan Compiled Laws  1981 PA 118,

23
      MCL 445.1563.

24
           (b) "Manufacturer" means that term as defined in

25
      section 4(2) of  Act No. 118 of the Public Acts of 1981, being

26
      section 445.1564 of the Michigan Compiled Laws  1981 PA 118,

27
      MCL 445.1564.



   02986'01 **                                  47

 1
           (c) "Program vehicle" means a motor vehicle from either the

 2
      current model year or the immediately preceding model year, that

 3
      was repurchased by a manufacturer or distributor from a rental

 4
      car company.

 5
           (2) Except as provided in this subsection, a new motor vehi-

 6
      cle dealer shall disclose in writing to a purchaser OR LESSEE of

 7
      a new motor vehicle, demonstrator, executive or manufacturer's

 8
      vehicle, or program vehicle before entering into a sales contract

 9
      OR LEASE AGREEMENT that, after the vehicle completed the manufac-

10
      turing process, the vehicle was damaged and repaired, including

11
      an itemization of repairs, if the dealer has knowledge of the

12
      damage and repairs and if the cost of the cumulative repairs, as

13
      calculated at the rate of the dealer's authorized warranty rate

14
      for labor and parts exceeds either 1 of the following:

15
           (a) Five percent of the manufacturer's suggested retail

16
      price of the vehicle.

17
           (b) Seven hundred fifty dollars in surface coating repairs

18
      or corrosion protection restoration or a combination of these

19
      items.  If a new motor vehicle dealer fails to comply with this

20
      subsection, the purchaser OR LESSEE shall retain all applicable

21
      remedies available under article 2 of the uniform commercial

22
      code,  Act No. 174 of the Public Acts of 1962, being

23
      sections 440.2101 to 440.2725 of the Michigan Compiled Laws  1962

24
      PA 174, MCL 440.2101 TO 440.2725.

25
           (3) A dealer in new motor vehicles is not required to dis-

26
      close to a purchaser OR LESSEE under this act that any glass,

27
      tires, wheels, bumpers, audio equipment, in-dash components, or



   02986'01 **                                  48

 1
      components contained in the living quarters of a motor home that

 2
      are not required for the operation of the motor home as a motor

 3
      vehicle were damaged at any time if the damaged item has been

 4
      replaced with original manufacturer's parts and material.

 5
           (4) Repaired damage to a motor vehicle, subject to this sec-

 6
      tion, not exceeding the cost of cumulative repairs as determined

 7
      pursuant to subsection (2) shall not constitute grounds for revo-

 8
      cation of acceptance by the purchaser OR LESSEE.  The right of

 9
      revocation ceases upon the purchaser's OR LESSEE'S acceptance of

10
      delivery of the vehicle.

11
           Sec. 244.  (1) A manufacturer owning  any  A vehicle of a

12
      type otherwise required to be registered under this act may oper-

13
      ate or move the vehicle upon a street or highway solely for the

14
      purposes of transporting or testing or in connection with a golf

15
      tournament or a public civic event, if the vehicle displays, in

16
      the manner prescribed in section 225, 1 special plate approved by

17
      the secretary of state.

18
           (2) A producer of a vehicle subcomponent system essential to

19
      the operation of the vehicle or the safety of an occupant may

20
      operate or move a motor vehicle upon a street or highway solely

21
      to transport or test the subcomponent system if the motor vehicle

22
      displays, in the manner prescribed in section 225, 1 special

23
      plate approved by the secretary of state.  To be eligible for the

24
      special plate, the subcomponent system producer must be either a

25
      recognized subcomponent system producer or must be a subcomponent

26
      system producer under contract with a vehicle manufacturer.





   02986'01 **                                  49

 1
           (3) A dealer owning  any  A vehicle of a type otherwise

 2
      required to be registered under this act may operate or move the

 3
      vehicle upon a street or highway without registering the vehicle

 4
      if the vehicle displays, in the manner prescribed in section 225,

 5
      1 special plate issued to the owner by the secretary of state.

 6
      As used in this subsection, "dealer" includes  any  AN employee,

 7
      servant, or agent of the dealer.

 8
           (4) A transporter may operate or move  any  A vehicle of

 9
       like type  A TYPE OTHERWISE REQUIRED TO BE REGISTERED UNDER THIS

10
      ACT upon a street or highway solely to deliver the vehicle  upon

11
      displaying  IF THE VEHICLE DISPLAYS, IN THE MANNER PRESCRIBED IN

12
      SECTION 225, a special plate issued to him or her as provided in

13
      this chapter.

14
           (5)  The plates  A LICENSEE SHALL NOT USE A SPECIAL PLATE

15
      described in this section  shall not be used  on service cars or

16
      wreckers  which are being  operated as an adjunct of a licensee's

17
      business.  A manufacturer, transporter, or dealer  ,  making or

18
      permitting any unauthorized use of a special plate ISSUED under

19
      this chapter  is considered to have forfeited its license under

20
      this chapter  FORFEITS THE RIGHT TO USE SPECIAL PLATES and the

21
      secretary of state, after notice and a hearing, may suspend or

22
      cancel the right to use  the  SPECIAL plates and  cause the

23
      REQUIRE THAT THE SPECIAL plates  to  be surrendered to  and 
   OR

24
      repossessed by the state.

25
           (6)  Transporters  A TRANSPORTER shall furnish a sufficient

26
      surety bond or policy of insurance as protection for public





   02986'01 **                                  50

 1
      liability and property damage as may be required by the secretary

 2
      of state.

 3
           (7) The secretary of state shall determine the number of

 4
      SPECIAL plates a manufacturer, dealer, or transporter reasonably

 5
      needs in his or her business.

 6
           (8)  Upon the sale of  IF a vehicle  otherwise  THAT IS

 7
      required to be registered under this act IS LEASED OR SOLD, the

 8
      vendee  shall be  OR LESSEE IS permitted to operate the vehicle

 9
      upon a street or highway for not more than 72 hours after taking

10
      possession  , but during that time  IF the vehicle  shall have

11
      the  HAS A dealer plate attached as provided in this section.

12
      The application for registration shall be made in the name of the

13
      vendee OR LESSEE before the vehicle is used.  The dealer and the

14
      vendee  shall be  OR LESSEE ARE jointly responsible for the

15
      return of the dealer plate to the dealer within 72 hours, and the

16
      failure of the vendee OR LESSEE to return or the vendor OR LESSOR

17
      to use due diligence to procure the dealer plate  shall

18
      constitute  IS a misdemeanor, and in addition the license of the

19
      dealer may be revoked.   The vendee, while  WHILE using  the 
   A

20
      dealer's plate, A VENDEE OR LESSEE shall have in his or her pos-

21
      session proof that clearly indicates the date of sale OR LEASE of

22
      the motor vehicle.

23
           (9)  Vehicles  A VEHICLE owned by  the  A dealer and
   bearing

24
      the dealer's plate may be driven upon a street or highway for

25
      demonstration purposes by  any  A prospective buyer OR LESSEE for

26
      a period of 72 hours.





   02986'01 **                                  51

    1      Sec. 248.  (1)  A  THE SECRETARY OF STATE SHALL NOT GRANT A

 2
      dealer license  shall not be granted  under this section until an

 3
      investigation is made of the applicant's qualifications under

 4
      this act, except that this subsection does not apply to license

 5
      renewals.  The secretary of state shall make the investigation

 6
      within 15 days after receiving the application and make a report

 7
      on the investigation.

 8
           (2) An applicant for a new vehicle dealer or a used or sec-

 9
      ondhand vehicle dealer or broker license shall include a properly

10
      executed bond or renewal certificate with the application.  If a

11
      renewal certificate is used, the bond is considered renewed for

12
      each succeeding year in the same amount and with the same effect

13
      as an original bond.  The bond shall be in the sum of $10,000.00

14
      with good and sufficient surety to be approved by the secretary

15
      of state.  The bond shall indemnify or reimburse a purchaser,

16
      seller, LESSEE, financing agency, or governmental agency for mon-

17
      etary loss caused through fraud, cheating, or misrepresentation

18
      in the conduct of the vehicle business whether the fraud, cheat-

19
      ing, or misrepresentation was made by the dealer or by an employ-

20
      ee, agent, or salesperson of the dealer.  The surety shall make

21
      indemnification or reimbursement for a monetary loss only after

22
      judgment based on fraud, cheating, or misrepresentation has been

23
      entered in a court of record against the licensee.  The bond

24
      shall also indemnify or reimburse the state for any sales tax

25
      deficiency as provided in the general sales tax act, 1933 PA 167,

26
      MCL 205.51 to 205.78, or use tax deficiency as provided in the

27
      use tax act, 1937 PA 94, MCL 205.91 to 205.111, for the year in



   02986'01 **                                  52

 1
      which the bond is in force.  The surety shall make

 2
      indemnification or reimbursement only after final judgment has

 3
      been entered in a court of record against the licensee.  A dealer

 4
      or applicant who has furnished satisfactory proof that a bond

 5
      similar to the bond required by this subsection is executed and

 6
      in force is exempt from the bond provisions set forth in this

 7
      subsection.  The aggregate liability of the surety shall not

 8
      exceed the sum of the bond.  The surety on the bond may cancel

 9
      the bond upon giving 30 days' notice in writing to the secretary

10
      of state and thereafter is not liable for a breach of condition

11
      occurring after the effective date of the cancellation.

12
           (3) An applicant for a new vehicle dealer or a used or sec-

13
      ondhand vehicle dealer license shall apply for not less than 2

14
      dealer plates as provided by section 245 and shall include with

15
      the application the proper fee as provided by section 803.

16
           (4) As a condition precedent to the granting of a license, a

17
      dealer shall file with the secretary of state an irrevocable

18
      written stipulation, authenticated by the applicant, stipulating

19
      and agreeing that legal process affecting the dealer, served on

20
      the secretary of state or a deputy of the secretary of state, has

21
      the same effect as if personally served on the dealer.  This

22
      appointment remains in force as long as the dealer has any out-

23
      standing liability within this state.

24
           (5) A person shall not carry on or conduct the business of

25
      buying, selling, brokering, LEASING, NEGOTIATING A LEASE, or

26
      dealing in 5 OR MORE vehicles of a type required to be titled

27
      under this act IN A 12-MONTH PERIOD unless the person obtains a



   02986'01 **                                  53

 1
      dealer license from the secretary of state authorizing the

 2
      carrying on or conducting of that business.  A person shall not

 3
      carry on or conduct the business of buying, selling, brokering,

 4
      LEASING, NEGOTIATING A LEASE, or dealing in 5 OR MORE distressed,

 5
      late model vehicles or salvageable parts TO 5 OR MORE OF THOSE

 6
      VEHICLES IN A 12-MONTH PERIOD unless the person obtains a used or

 7
      secondhand vehicle parts dealer, an automotive recycler, or a

 8
      salvage pool license from the secretary of state or is an insur-

 9
      ance company admitted to conduct business in this state.  A

10
      person shall not carry on or conduct the business of buying 5 OR

11
      MORE vehicles IN A 12-MONTH PERIOD to process into scrap metal or

12
      store or display 5 OR MORE vehicles IN A 12-MONTH PERIOD as an

13
      agent or escrow agent of an insurance company unless the person

14
      obtains a dealer license from the secretary of state.  A vehicle

15
      scrap metal processor who does not purchase vehicles or salvagea-

16
      ble parts from unlicensed persons is not required to obtain a

17
      dealer license.  A person from another state shall not purchase,

18
      sell, or otherwise deal in distressed, late model vehicles or

19
      salvageable parts unless the person obtains a foreign salvage

20
      vehicle dealer license from the secretary of state as prescribed

21
      under section 248b.  A person, including a dealer, shall not pur-

22
      chase or acquire a distressed, late model vehicle or a salvagea-

23
      ble part through a salvage pool, auction, or broker without a

24
      license as a salvage vehicle agent.  The secretary of state shall

25
      investigate and seek prosecution, if necessary, of persons

26
      allegedly conducting a business without a license.





   02986'01 **                                  54

 1
           (6) The application for a dealer license shall be in the

 2
      form prescribed by the secretary of state and shall be signed by

 3
      the applicant.  In addition to other information as may be

 4
      required by the secretary of state, the application shall include

 5
      all of the following:

 6
           (a) Name of applicant.

 7
           (b) Location of applicant's established place of business in

 8
      this state.

 9
           (c) The name under which business is to be conducted.

10
           (d) If the business is a corporation, the state of

11
      incorporation.

12
           (e) Name, address, date of birth, and social security number

13
      of each owner or partner and, if a corporation, the name,

14
      address, date of birth, and social security number of each of the

15
      principal officers.

16
           (f) The county in which the business is to be conducted and

17
      the address of each place of business in that county.

18
           (g) If new vehicles are to be sold, the make to be handled.

19
      Each new vehicle dealer shall send with the application for

20
      license a certification that the dealer holds a bona fide con-

21
      tract to act as factory representative, factory distributor, or

22
      distributor representative to sell at retail .........  (the make

23
      of vehicle to be sold).

24
           (h) A statement of the previous history, record, and associ-

25
      ations of the applicant and of each owner, partner, officer, and

26
      director.  , which  THE statement shall be sufficient to





   02986'01 **                                  55

 1
      establish to the satisfaction of the secretary of state the

 2
      business reputation and character of the applicant.

 3
           (i) A statement showing whether the applicant has previously

 4
      applied for a license, the result of the application, and whether

 5
      the applicant has ever been the holder of a dealer license that

 6
      was revoked or suspended.

 7
           (j) If the applicant is a corporation or partnership, a

 8
      statement showing whether a partner, employee, officer, or direc-

 9
      tor has been refused a license or has been the holder of a

10
      license that was revoked or suspended.

11
           (k) If the application is for a used or secondhand vehicle

12
      parts dealer or an automotive recycler, it shall include all of

13
      the following:

14
           (i) Evidence that the applicant maintains or will maintain

15
      an established place of business.

16
           (ii) Evidence that the applicant maintains or will maintain

17
      a police book and vehicle parts purchase and sales AND LEASE

18
      records as required under this act.

19
           (iii) Evidence of worker's compensation insurance coverage

20
      for employees classified under the North American industrial

21
      classification system number 42114, entitled "motor vehicle parts

22
      (used) wholesalers" or under the national council on compensation

23
      insurance classification code number 3821, entitled "automobile

24
      dismantling and drivers", if applicable.

25
           (l) Certification that neither the applicant nor another

26
      person named on the application is acting as the alter ego of any

27
      other person or persons in seeking the license.  For the purpose



   02986'01 **                                  56

 1
      of this subdivision, "alter ego" means a person who acts for and

 2
      on behalf of, or in the place of, another person for purposes of

 3
      obtaining a vehicle dealer license.

 4
           (7) A person shall apply separately for a dealer license for

 5
      each county in which business is to be conducted.  Before moving

 6
      1 or more of his or her places of business or opening an addi-

 7
      tional place of business, a dealer shall apply to the secretary

 8
      of state for and obtain a supplemental dealer license, for which

 9
      a fee shall not be charged.  A dealer license entitles the dealer

10
      to conduct the business of buying, selling, LEASING, and dealing

11
      in vehicles or salvageable parts in the county covered by the

12
      license.  The dealer license shall also entitle the dealer to

13
      conduct at any other licensed dealer's established place of busi-

14
      ness in this state only the business of buying, selling, LEASING,

15
      or dealing in vehicles at wholesale.

16
           (8) The secretary of state shall classify and differentiate

17
      vehicle dealers according to the type of activity they perform.

18
      A dealer shall not engage in activities of a particular classifi-

19
      cation as provided in this act unless the dealer is licensed in

20
      that classification.  An applicant may apply for a dealer license

21
      in 1 or more of the following classifications:

22
           (a) New vehicle dealer.

23
           (b) Used or secondhand vehicle dealer.

24
           (c) Used or secondhand vehicle parts dealer.

25
           (d) Vehicle scrap metal processor.

26
           (e) Vehicle salvage pool operator.





   02986'01 **                                  57

 1
           (f) Distressed vehicle transporter.

 2
           (g) Broker.

 3
           (h) Foreign salvage vehicle dealer.

 4
           (i) Automotive recycler.

 5
           (9) A dealer license expires on December 31 of the last year

 6
      for which the license is issued.  The secretary of state may

 7
      renew a dealer license for a period of not more than 4 years upon

 8
      application and payment of the fee required by section 807.

 9
           (10) A dealer may conduct the business of buying, selling,

10
      or dealing in motor homes, trailer coaches, trailers, or pickup

11
      campers at a recreational vehicle show conducted at a location in

12
      this state without obtaining a separate or supplemental license

13
      under subsection (7) if all of the following apply:

14
           (a) The dealer is licensed as a new vehicle dealer or used

15
      or secondhand vehicle dealer.

16
           (b) The duration of the recreational vehicle show is not

17
      more than 14 days.

18
           (c) Not less than 14 days before the beginning date of the

19
      recreational vehicle show, the show producer notifies the secre-

20
      tary of state, in a manner and form prescribed by the secretary

21
      of state, that the recreational vehicle show is scheduled, the

22
      location, dates, and times of the recreational vehicle show, and

23
      the name, address, and dealer license number of each dealer par-

24
      ticipating in the recreational vehicle show.

25
           Sec. 249.  The secretary of state may deny the application

26
      of a person for a license as a dealer and refuse to issue the

27
      person a license as a dealer, or may suspend or revoke a license



   02986'01 **                                  58

 1
      already issued, if the secretary of state finds that 1 or more of

 2
      the following apply:

 3
           (a) The applicant or licensee has made a false statement of

 4
      a material fact in his or her application.

 5
           (b) The applicant or licensee has not complied with the pro-

 6
      visions of this chapter or a rule promulgated under this

 7
      chapter.

 8
           (c) The applicant or licensee has sold OR LEASED or offered

 9
      for sale OR LEASE a new vehicle of a type required to be regis-

10
      tered under this act without having authority of a contract with

11
      a manufacturer or distributor of the new vehicle.

12
           (d) The applicant or licensee has been guilty of a fraudu-

13
      lent act in connection with selling, LEASING, or otherwise deal-

14
      ing in vehicles of a type required to be registered under this

15
      act.

16
           (e) The applicant or licensee has entered into or is about

17
      to enter into a contract or agreement with a manufacturer or dis-

18
      tributor of vehicles of a type required to be registered under

19
      this act  , which  THAT is contrary to any provision of this

20
      act.

21
           (f) The applicant or licensee has no established place of

22
      business  which  THAT is used or will be used for the purpose of

23
      selling, LEASING, displaying, and offering for sale OR LEASE or

24
      dealing in vehicles of a type required to be registered, and does

25
      not have proper servicing facilities.

26
           (g) The applicant or licensee is a corporation or

27
      partnership, and a stockholder, officer, director, or partner of



   02986'01 **                                  59

 1
      the applicant or licensee has been guilty of any act or omission

 2
      that would be cause for refusing, revoking, or suspending a

 3
      license issued to the stockholder, officer, director, or partner

 4
      as an individual.

 5
           (h) The applicant or licensee has possessed a vehicle or a

 6
      vehicle part that has been confiscated under section 415 of the

 7
      Michigan penal code,  Act No. 328 of the Public Acts of 1931, as

 8
      amended, being section 750.415 of the Michigan Compiled Laws

 9
      1931 PA 328, MCL 750.415.  The secretary of state shall conduct a

10
      hearing pursuant to the administrative procedures act of 1969,

11
       Act No. 306 of the Public Acts of 1969, as amended, being sec-

12
      tions 24.201 to 24.328 of the Michigan Compiled Laws  1969

13
      PA 306, MCL 24.201 TO 24.328, before the secretary of state takes

14
      any action under this subdivision.

15
           (i) The applicant or licensee has been convicted under sec-

16
      tion 415 of  Act No. 328 of the Public Acts of 1931, as amended

17
      THE MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.415.

18
           (j) The applicant or licensee has been convicted of violat-

19
      ing  Act No. 119 of the Public Acts of 1986, being sections

20
      257.1351 to 257.1355 of the Michigan Compiled Laws  1986 PA 119,

21
      MCL 257.1351 TO 257.1355.

22
           Sec. 251.  (1) Each new vehicle dealer, used vehicle dealer,

23
      and broker shall maintain a record in a manner prescribed by the

24
      secretary of state of each vehicle of a type subject to titling

25
      under this act that is bought, sold, LEASED, or exchanged by the

26
      dealer or received or accepted by the dealer for sale, LEASE, or

27
      exchange.



   02986'01 **                                  60

 1
           (2) Each record shall contain the date of the purchase,

 2
      sale, LEASE, or exchange or receipt for the purpose of sale,

 3
      LEASE, OR EXCHANGE, a description of the vehicle,  together with

 4
      the name and address of the seller, the purchaser OR LESSEE, and

 5
      the alleged owner or other persons from whom the vehicle was pur-

 6
      chased or received, or to whom it was sold, LEASED, or

 7
      delivered.  The record shall contain a copy of  all  ANY odometer

 8
      mileage  statements  STATEMENT received by the dealer  upon pur-

 9
      chasing or acquiring  WHEN THE DEALER PURCHASED OR ACQUIRED a

10
      vehicle and a copy of the odometer mileage statement furnished by

11
      the dealer  upon sale of a  WHEN THE DEALER SOLD, LEASED, OR

12
      EXCHANGED THE vehicle as prescribed in section 233a.  If the

13
      vehicle is purchased, sold, leased, or exchanged through a

14
      broker, the record shall include the broker's name and dealer

15
      license number and the amount of the broker's fee, commission,

16
      compensation, or other valuable consideration paid by the pur-

   17 chaser or lessee or paid by the dealer, or both.  The records of

18
      all vehicles purchased, sold, leased, or exchanged through a

19
      broker maintained by the secretary of state shall be in an elec-

20
      tronic format determined by the secretary of state.  A dealer

21
      shall retain for not less than 5 years each odometer mileage

22
      statement the dealer receives and each odometer mileage statement

23
      furnished by the dealer upon the sale, LEASE, OR EXCHANGE of a

24
      vehicle.  The description of the vehicle, in the case of a motor

25
      vehicle, shall also include the vehicle identification number and

26
      other numbers or identification marks as may be on the vehicle,

27
      and shall also include a statement that a number has been



   02986'01 **                                  61

 1
      obliterated, defaced, or changed, if that is the fact.  For a

 2
      trailer or semitrailer, the record shall include the vehicle

 3
      identification number and other numbers or identification marks

 4
      as may be on the trailer or semitrailer.

 5
           (3) Not more than 20 days after the delivery of the vehicle,

 6
      the seller shall deliver to the buyer in person or by mail to the

 7
      buyer's last known address a duplicate of a written statement, on

 8
      a form prescribed by the secretary of state in conjunction with

 9
      the department of treasury, describing clearly the name and

10
      address of the seller, the name and address of the buyer, the

11
      vehicle sold to the buyer, the cash sale price of the vehicle,

12
      the cash paid down by the buyer, the amount credited the buyer

13
      for a trade-in, a description of the trade-in, the amount charged

14
      for vehicle insurance, stating the types of insurance covered by

15
      the insurance policy, the amount charged for a temporary regis-

16
      tration plate, the amount of any other charge and specifying its

17
      purpose, the net balance due from the buyer, and a summary of

18
      insurance coverage to be affected.  If the vehicle sold is a new

19
      motor home, the written statement shall contain a description,

20
      including the year of manufacture, of every major component part

21
      of the vehicle that has its own manufacturer's certificate of

22
      origin.  The written statement shall disclose if the vehicle sold

23
      is a vehicle that the seller had loaned or leased to a political

24
      subdivision of this state for use as a driver education vehicle.

25
      The written statement shall be dated, but not later than the

26
      actual date of delivery of the vehicle to the buyer.  The

27
      original and all copies of the prescribed form shall contain



   02986'01 **                                  62

 1
      identical information.  The statement shall be furnished by the

 2
      seller, shall be signed by the seller or the seller's agent and

 3
      by the buyer, and shall be filed with the application for new

 4
      title or registration.  Failure of the seller to deliver this

 5
      written statement to the buyer does not invalidate the sale

 6
      between the seller and the buyer.

 7
           (4) A retail vehicle sale is void unless both of the follow-

 8
      ing conditions are met:

 9
           (a) The sale is evidenced by a written memorandum that con-

10
      tains the agreement of the parties and is signed by the buyer and

11
      the seller or the seller's agent.

12
           (b) The agreement contains a place for acknowledgment by the

13
      buyer of the receipt of a copy of the agreement or actual deliv-

14
      ery of the vehicle is made to the buyer.

15
           (5) Each dealer record and inventory, including the record

16
      and inventory of a vehicle scrap metal processor not required to

17
      obtain a dealer license, shall be open to inspection by a police

18
      officer or an authorized officer or investigator of the secretary

19
      of state during reasonable or established business hours.

20
           (6) A dealer licensed as a distressed vehicle transporter

21
      shall maintain records in a form as prescribed by the secretary

22
      of state.  The records shall identify each distressed vehicle

23
      that is bought, acquired, and sold by the dealer.  The record

24
      shall identify the person from whom a distressed vehicle was

25
      bought or acquired and the dealer to whom the vehicle was sold.

26
      The record shall indicate whether a certificate of title or





   02986'01 **                                  63

 1
      salvage certificate of title was obtained by the dealer for each

 2
      vehicle.

 3
           (7) A dealer licensed under this act shall maintain records

 4
      for a period of 5 years.  The records shall be made available for

 5
      inspection by the secretary of state or other law enforcement

 6
      officials.  The secretary of state shall inspect a dealer once

 7
      every 4 years and as determined necessary by the secretary of

 8
      state or a law enforcement officer.  The secretary of state may

 9
      issue an order summarily suspending the license of a dealer pur-

10
      suant to section 92 of the administrative procedures act of 1969,

11
      1969 PA 306, MCL 24.292, based on an affidavit by a person famil-

12
      iar with the facts set forth in the affidavit that the dealer has

13
      failed to maintain the records required by this act or failed to

14
      provide the records for inspection as requested by the secretary

15
      of state, or has otherwise hindered, obstructed, or prevented the

16
      inspection of records authorized under this section.  The dealer

17
      to whom the order is directed shall comply immediately, but on

18
      application to the department shall be afforded a hearing within

19
      30 days pursuant to the administrative procedures act of 1969,

20
      1969 PA 306, MCL 24.201 to 24.328.  On the basis of the hearing,

21
      the summary order shall be continued, modified, or held in abey-

22
      ance not later than 30 days after the hearing.

23
           (8) A dealer licensed as a vehicle salvage pool operator or

24
      broker shall maintain records in a form as prescribed by the sec-

25
      retary of state.  The records shall contain a description of each

26
      vehicle or salvageable part stored by the dealer, the name and

27
      address of the insurance company or person storing the vehicle or



   02986'01 **                                  64

 1
      salvageable part, the period of time the vehicle or salvageable

 2
      part was stored, and the person acquiring the vehicle or salvage-

 3
      able part.  In the case of a late model vehicle, a record of the

 4
      purchase or sale of a major component part of the vehicle shall

 5
      be maintained identifying the part purchased or sold, the name

 6
      and address of the seller or purchaser, the date of the purchase

 7
      or sale, and the identification number assigned to the part by

 8
      the dealer.  The record of the purchase or sale of a part shall

 9
      be maintained in or attached to the dealer's police book or hard

10
      copy of computerized data entries and reference codes and shall

11
      be accessible at the dealer's location.  In addition, a dealer

12
      licensed as a broker shall maintain a record of the odometer

13
      mileage reading of each vehicle sold pursuant to an agreement

14
      between the broker and the buyer OR LESSEE or the broker and the

15
      seller.  The record of odometer mileage shall be maintained for 5

16
      years and shall contain all of the information required by sec-

17
      tion 233a.

18
           (9) A dealer licensed as a used vehicle parts dealer or an

19
      automotive recycler shall maintain records in a form prescribed

20
      by the secretary of state.  The records shall contain the date of

21
      purchase or acquisition of the vehicle, a description of the

22
      vehicle including the color, and the name and address of the

23
      person from whom the vehicle was acquired.  If the vehicle is

24
      sold, the record shall contain the date of sale and the name and

25
      address of the purchaser.  The record shall indicate if the cer-

26
      tificate of title or salvage or scrap certificate of title was

27
      obtained by the dealer.  In the case of a late model vehicle, a



   02986'01 **                                  65

 1
      record of the purchase or sale of a major component of the

 2
      vehicle shall be maintained identifying the part purchased or

 3
      sold, the name and address of the seller or purchaser, the date

 4
      of the purchase or sale, and the identification number assigned

 5
      to the part by the dealer, except that a bumper remanufacturer is

 6
      not required to maintain a record of the purchase of a bumper.

 7
      However, a bumper remanufacturer shall assign and attach an iden-

 8
      tification number to a remanufactured bumper and maintain a

 9
      record of the sale of the bumper.  The record of the purchase or

10
      sale of a part shall be maintained in or attached to the dealer's

11
      police book or hard copy of computerized data entries and refer-

12
      ence codes and shall be accessible at the dealer's location.

13
           (10) A dealer licensed as a vehicle scrap metal processor

14
      shall maintain records as prescribed by the secretary of state.

15
      As provided in section 217c, the records shall contain for a

16
      vehicle purchased from a dealer a copy of the scrap vehicle

17
      inventory, including the name and address of the dealer, a

18
      description of the vehicle acquired, and the date of

19
      acquisition.  If a vehicle is purchased or acquired from a person

20
      other than a dealer, the record shall contain the date of acqui-

21
      sition, a description of the vehicle, including the color, the

22
      name and address of the person from whom the vehicle was

23
      acquired, and whether a certificate of title or salvage or scrap

24
      certificate of title was obtained by the dealer.

25
           (11) A dealer licensed as a foreign salvage vehicle dealer

26
      shall maintain records in a form prescribed by the secretary of

27
      state.  The records shall contain the date of purchase or



   02986'01 **                                  66

 1
      acquisition of each distressed vehicle, a description of the

 2
      vehicle including the color, and the name and address of the

 3
      person from whom the vehicle was acquired.  If the vehicle is

 4
      sold, the record shall contain the date of sale and the name and

 5
      address of the purchaser.  The record shall indicate if the cer-

 6
      tificate of title or salvage or scrap certificate of title was

 7
      obtained by the dealer.  In the case of a late model vehicle, a

 8
      record of the purchase or sale of each salvageable part purchased

 9
      or acquired in this state shall be maintained and the record

10
      shall contain the date of purchase or acquisition of the part, a

11
      description of the part, the identification number assigned to

12
      the part, and the name and address of the person to or from whom

13
      the part was purchased, acquired, or sold.  The record of the

14
      sale, purchase, or acquisition of a part shall be maintained in

15
      the dealer's police book.  The police book shall only contain

16
      vehicles and salvageable parts purchased in this state or used in

17
      the repair of a vehicle purchased in this state.  The police book

18
      and the records of vehicle part sales, purchases, or acquisitions

19
      shall be made available at a location within the state for

20
      inspection by the secretary of state within 48 hours after a

21
      request by the secretary of state.

22
           (12) The secretary of state shall make periodic unannounced

23
      inspections of the records, facilities, and inventories of auto-

24
      motive recyclers and used or secondhand vehicle parts dealers.

25
           (13) The secretary of state may promulgate rules to imple-

26
      ment this section pursuant to the administrative procedures act

27
      of 1969, 1969 PA 306, MCL 24.201 to 24.328.



   02986'01 **                                  67

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           Sec. 251a.  At the time a document is signed FOR THE SALE OR

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      LEASE OF A VEHICLE, the dealer shall provide  the buyer with  a

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      copy of each document signed  by the buyer  TO THE PERSON WHO

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      SIGNED THE DOCUMENT.
















































   02986'01 **          Final page.                         DAM