SB-0331, As Passed Senate, April 26, 2016

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 331

A bill to amend 1986 PA 119, entitled

"An act to regulate the business of buying or receiving used motor

vehicle parts; to prescribe the powers and duties of certain state

and local officers; and to provide penalties,"

by amending sections 1, 2, and 4 (MCL 257.1351, 257.1352, and

257.1354) and by adding section 2a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 1. As used in this act:

2 (a) "Agent" means ~~a person~~ an individual who, for compensation

3 or valuable consideration, is employed either directly or

4 indirectly by a dealer.

5 (b) "Dealer" means any person ~~, corporation, partnership, or~~

6 ~~association, which, in whole or in part,~~ that engages in the

7 ordinary course of repeated and recurrent transactions of buying or

8 receiving used motor vehicle parts from persons other than a

1 licensee. ~~A dealer shall include~~ The term includes any motor

2 vehicle repair facility ~~which~~ that engages in repeated and

3 recurrent transactions of buying or receiving used motor vehicle

4 parts from persons other than a licensee. ~~Dealer~~ The term does not

5 include a scrap metal processor ~~who~~ or automotive recycler that

6 buys or otherwise acquires motor vehicles or motor vehicle

7 component parts for the purpose of processing or selling the metal

8 for remelting.

9 (c) "Late model vehicle" means a motor vehicle manufactured in

10 the current model year or the 5 model years immediately preceding

11 the current model year.

12 (d) "Local police agency" means the police agency of ~~the~~ a

13 city, village, or township, or if none, the county sheriff.

14 (e) "Major component part" means 1 any of the following

15 subassemblies of a motor vehicle regardless of its actual market

16 value: front end assembly, including fenders, grills, hood, bumper,

17 and related parts; engine; transmission; T-tops; rear clip

18 assembly, including quarter panels and floor panel assembly; or

19 doors. ~~; tires, tire wheels, and continuous treads.~~

20 (f) "Motor vehicle" means a motor vehicle as defined in

21 section 33 of the Michigan vehicle code, ~~Act No. 300 of the Public~~

22 ~~Acts of 1949, being section 257.33 of the Michigan Compiled~~

23 ~~Laws.~~1949 PA 300, MCL 257.33.

24 (g) "Motor vehicle repair facility" means a place of business

25 which engages in the business of performing or employing persons

26 who perform maintenance, diagnosis, or repair service on a motor

27 vehicle for compensation.

1 (h) "Licensee" means a person ~~, partnership, corporation, or~~

2 ~~association~~ that is licensed under section 248 of the Michigan

3 vehicle code, ~~Act No. 300 of the Public Acts of 1949, being section~~

4 ~~257.248 of the Michigan Compiled Laws,~~ 1949 PA 300, MCL 257.248, or

5 similarly licensed in another state.

6 (i) "Person" means an individual, corporation, limited

7 liability company, partnership, association, or other legal entity.

8 (j) ~~(i)~~ "Used motor vehicle part" means any of the following:

9 (i) A major component part, dashboard, radio, stereo, or seat

10 of a late model motor vehicle for which a certificate of title and

11 registration plate have been issued to a consumer or dealer.

12 (ii) A motor vehicle tire, tire wheel or rim, or continuous

13 tire tread.

14 Sec. 2. (1) A dealer shall maintain a permanent record of each

15 transaction concerning the buying or receiving of any used motor

16 vehicle part from a person other than a licensee, on a record of

17 transaction ~~forms provided for~~ form prescribed in subsection (5),

18 legibly written in ink in the English language. Each record of

19 transaction form shall be filled out in duplicate by the dealer or

20 agent with 1 copy ~~going~~ given to the customer , and 1 copy ~~to be~~

21 retained by the dealer. At the time a dealer receives or purchases

22 a used motor vehicle part from a person other than a licensee, the

23 dealer or agent shall accurately record all of the following

24 information on a record of transaction form:

25 (a) A general description of the used motor vehicle part

26 received or purchased.

27 (b) The vehicle identification number of the vehicle the used

1 motor vehicle part came from.

2 (c) The state of origin of the used motor vehicle part.

3 (d) The date of the transaction.

4 (e) The name of the ~~person~~ individual who is conducting the

5 transaction ~~for~~ on behalf of the dealer.

6 (f) The name, date of birth, driver's license number or state

7 of Michigan personal identification card number, and street and

8 house number of the ~~person~~ individual with whom the transaction is

9 being made, together with a legible imprint of the right thumb of

10 the ~~person~~ individual with whom the transaction is made, or if that

11 is not possible, then the left thumb or a finger of that ~~person.~~

12 individual. However, the thumbprint or fingerprint ~~shall~~ is only be

13 required on the record of transaction form retained by the dealer.

14 The dealer or agent shall make a thumbprint or fingerprint ~~shall be~~

15 ~~made~~ available to the local police agency or the department of

16 state police only during the course of a police investigation

17 involving a used motor vehicle part described on the record of

18 transaction. This ~~paragraph shall~~ subdivision does not apply to a

19 transaction involving an insurance company that has acquired

20 ownership of a late model vehicle by the payment of damages due to

21 an accident and a dealer that buys the vehicle from the insurance

22 company for salvage.

23 (g) The price paid or to be paid by the dealer for the used

24 motor vehicle part.

25 (h) ~~The~~ Subject to section 2a, the form of payment made to the

26 customer. The dealer or agent shall indicate the number of a check,

27 money order, or bank draft and the transaction number of any direct

1 deposit or electronic transfer to the customer's account at a

2 financial institution.

3 (i) The signature of the ~~person~~ individual with whom the

4 transaction is made.

5 (2) ~~The~~ A dealer or agent shall number the record of each

6 transaction ~~shall be numbered~~ consecutively, commencing with the

7 number 1 and the calendar year; and, if the transaction includes

8 the buying or receiving of 1 or more used motor vehicle tires, tire

9 wheels or rims, or continuous tire tread, shall place the

10 transaction number on a tag that the dealer or agent must attach to

11 each of those items the dealer or agent bought or received.

12 (3) The record of transaction forms of a dealer and each used

13 motor vehicle part received by a dealer as the result of a

14 transaction ~~shall be~~ are open to an inspection by the local police

15 agency and the Michigan state police at all times during the

16 ordinary business hours of the dealer. As a condition of doing

17 business, a dealer ~~shall be~~ is considered to have given consent to

18 the inspection ~~prescribed by~~ described in this subsection. The

19 record of transaction forms of a dealer ~~shall~~ are not be open to

20 inspection by the general public.

21 (4) ~~Each~~ A dealer shall retain each record of a transaction

22 ~~shall be retained by the dealer~~ for ~~not less than~~ at least 1 year

23 after the transaction to which the record pertains. A dealer ~~who~~

24 that goes out of business or changes ~~his or her~~ the dealer's

25 business address to another local jurisdiction either within or out

26 of this state shall transmit to the local police agency the records

27 of all transactions made by the dealer ~~not more than 1 year before~~

1 ~~his or her closing or moving.~~ in the 1-year period before the

2 dealer closes or moves. After a period of 1 year from the date of

3 the transaction, if a police investigation concerning a used motor

4 vehicle part described on the record of transaction has not

5 occurred, the dealer and local police agency shall destroy, and not

6 keep a permanent record of, the records of the transaction.

7 (5) The form of the record of transaction shall be 8-1/2 by 11

8 inches in size and shall be as follows:

9	"Record of Transaction
10
11	# __________________________
12	(Transaction number printed
13	on the form)
14
15	(1) Description of Property ___________________________
16	_____________________________________________________________
17	_____________________________________________________________
18	_____________________________________________________________
19	_____________________________________________________________
20	(2) _______________________________ (3) ________________
21	(Vehicle Identification Number) (State of Origin)
22	(4) ______________, 19 ___ (5) _______________________
23	(Date) (Name of Dealer/Employee)
24	(6) ______________________, ___________________, 19 ___
25	(Name of Customer) (Date of Birth)
26	__________________________, ___________________________
27	(Driver's License No./ (Street Address)

1	Mich. Personal ID Number) ___________________ ______
2	(City & State) (Zip)
3	(7) ______________________
4	(Price Paid)
5	(8) ______________________
6	(Check no., bank draft
7	no., money order no.,
8	transaction no., or cash)
9
10
11
12	____________________________"
13	Thumbprint (Signature of Customer)

14 Sec. 2a. In a transaction concerning the buying or receiving

15 of any used motor vehicle tires, tire wheels or rims, or continuous

16 tire tread, the only methods of payment a dealer may use to pay a

17 customer are a check, a money order, a bank draft, or a direct

18 deposit or electronic transfer to the customer's account at a

19 financial institution. If a payment is made by check, money order,

20 or bank draft under this section, the dealer must mail that payment

21 to the customer at the address shown on the identification required

22 under section 2(1)(f).

23 Sec. 4. (1) A dealer ~~who~~ or agent that knowingly violates

24 section 2(3), (4), or (5) or section 2a is guilty of a misdemeanor,

25 punishable by imprisonment for not more than 1 year, or a fine of

26 $1,000.00, or both.

27 (2) A dealer ~~who~~ or agent that knowingly violates section