HB-5174, As Passed House, February 13, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 5174

     A bill to allow certain active duty service members to

terminate motor vehicle leases; to provide for the rights and

responsibilities of the lessees and lessors to those terminated

motor vehicle leases; to provide for the powers and duties of

certain state officials; to prescribe civil sanctions and provide

penalties; and to provide for the disposition of civil fines.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. This act shall be known and may be cited as the

"military personnel motor vehicle leasing act".

     Sec. 2. As used in this act:

     (a) "Active duty" means active duty pursuant to an executive

order of the president of the United States, an act of congress, or

an order of the governor.

     (b) "Armed forces" means that term as defined in section 2 of

the veteran right to employment services act, 1994 PA 39, MCL

35.1092.

     (c) "Lessee" means that term as defined in section 1 of 1990

PA 169, MCL 445.991.

     (d) "Lessor" means that term as defined in section 1 of 1990

PA 169, MCL 445.991.

     (e) "Michigan national guard" means that term as defined in

section 105 of the Michigan military act, 1967 PA 150, MCL 32.505.

     (f) "Motor vehicle" means that term as defined in section 1 of

1990 PA 169, MCL 445.991.

     (g) "Motor vehicle lease" means a lease contract as that term

is defined in section 1 of 1990 PA 169, MCL 445.991.

     (h) "Service member" means a member of the armed forces, a

reserve branch of the armed forces, or the Michigan national guard.

     Sec. 3. A service member who is deployed on active duty for a

period of 180 days or more, or the spouse of that service member,

may terminate any motor vehicle lease that meets all of the

following requirements:

     (a) The motor vehicle lease is entered into on or after the

effective date of this act.

     (b) The motor vehicle lease is executed by or on behalf of the

service member as a lessee.

     (c) The motor vehicle lease is executed before the service

member is deployed on active duty.

     Sec. 4. A termination of the motor vehicle lease under section

3 is effective on the date all of the following are met:

     (a) The service member who is deployed on active duty, or the

service member's spouse, provides the lessor by certified mail,

return receipt requested, a written notice of the service member's

intention to terminate the lease, a copy of the military or

gubernatorial orders calling the service member to active duty, and

a copy of any orders further extending the service member's period

of active duty.

     (b) The motor vehicle subject to the motor vehicle lease is

returned to the custody or control of the lessor within 15 days

after the delivery of the written notice under subdivision (a).

     Sec. 5. (1) If a motor vehicle lease is terminated under this

act, the lessee shall pay any past due lease payments owed to the

lessor as of the effective date of the termination and a pro rata

share of any current lease payments owed as of that effective date.

     (2) If a motor vehicle lease is terminated under this act, the

lessor may not impose an early termination charge for that

termination. However, the lessee shall pay any taxes, court costs,

title or registration fees, and any other obligation and liability

of the lessee under the terms of the lease, including, but not

limited to, reasonable charges to the lessee for excess wear, use,

and mileage, that are due and unpaid as of the effective date of

the termination.

     (3) If a motor vehicle lease is terminated under this act, the

lessor shall refund to the lessee any lease amounts paid in advance

for a period after the effective date of the termination of that

motor vehicle lease, within 30 days after the effective date of the

lease's termination.

     Sec. 6. (1) Before the effective date of a motor vehicle lease

termination under this act, the lessor may bring a civil action

and, if appropriate, obtain equitable relief from all or part of

the lessor's obligations to the lessee under this act.

     (2) In addition to any other penalty that may be provided by

law, the attorney general may file a civil action in which the

court may impose on a lessor that violates this act a civil fine of

not more than $1,000.00 for each violation. Money recovered under

this subsection shall be forwarded to the state treasurer for

deposit into the military family relief fund created in section 3

of the military family relief fund act, 2004 PA 363, MCL 35.1213.