PAYMENT FOR USED TIRES                                                                            S.B. 331:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bill 331 (as reported without amendment)

Sponsor:  Senator Rick Jones

Committee:  Regulatory Reform

CONTENT

The bill would amend Public Act 119 of 1986, which regulates the business of buying or receiving used motor vehicle parts, to allow a dealer to purchase used motor vehicle tires, tire wheels or rims, or continuous tread from a customer only with a check, money order, bank draft, or direct deposit or electronic transfer to the customer's account at a financial institution.

The Act imposes certain record-keeping requirements on a dealer that buys or receives used motor vehicle parts from a customer. Among other things, a dealer must record the form of payment and indicate the number of the check, money order, or bank draft used to pay the customer. The bill would require that the dealer also indicate the transaction number of any direct deposit or electronic transfer to the customer's account at a financial institution.

A dealer that knowingly violates certain requirements of the Act is guilty of a misdemeanor, punishable by imprisonment for up to one year, a maximum fine of $1,000, or both. A second or subsequent violation is a felony, punishable by up to two years' imprisonment, a maximum fine of $5,000, or both. The bill would extend these penalties to a dealer that knowingly violated the provision limiting the methods of payment for used tires, tire wheels or rims, or continuous tire tread.

The bill would take effect 90 days after it was enacted.

MCL 257.1351 et al.                                                 Legislative Analyst:  Drew Krogulecki

FISCAL IMPACT

The bill would expand the regulations applicable to used motor vehicle part transactions involving used motor vehicle tires, tire wheels or rims, and continuous tire tread, and could increase the felonies and misdemeanors associated with violations of these regulations. There are no data to indicate how many additional offenders would be convicted of violating the Act (or indirectly, how many would be convicted of selling stolen vehicle parts), but to the extent that additional convictions occurred, costs of incarceration and community supervision would increase accordingly. Penal fine revenue would benefit public libraries.

Date Completed:  10-14-15                                                  Fiscal Analyst:  Ryan Bergan

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.