September 8, 2016, Introduced by Rep. Miller, A. and referred to the Committee on Regulatory Reform.
A bill to provide for the regulation and registration of auto
glass facilities; to prescribe the powers and duties of certain
public officers and agencies; to provide for the promulgation of
rules; and to prescribe remedies and penalties.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Administrator" means the secretary of state or his or her
designee.
(b) "Auto glass facility" or "facility" means a person that is
engaged in the business of performing, or employs individuals who
perform, glass installation, repair, or replacement in motor
vehicles. The term does not include any of the following:
(i) An individual who engages only in the business of
installing, repairing, or replacing auto glass for a single
commercial or industrial establishment or governmental agency.
(ii) An individual who is installing, repairing, or replacing
auto glass in his or her own motor vehicle or a family member's
motor vehicle.
(iii) A facility that is subject to the motor vehicle service
and repair act, 1974 PA 300, MCL 257.1302 to 257.1340.
(iv) A motor vehicle dealer that performs maintenance, body
work, repairs, or other service or repair work on motor vehicles.
(c) "Motor vehicle" means that term as defined in section 33
of the Michigan vehicle code, 1949 PA 300, MCL 257.33.
Sec. 3. Unless the act or practice is otherwise exempt under
this act, a person shall not engage in the business or activity of
an auto glass facility unless the person registers the auto glass
facility with the administrator under this act.
Sec. 5. (1) The secretary of state or his or her designee
shall administer this act. The secretary of state shall not
designate an individual to act in his or her place under this
section who is affiliated with an auto glass facility.
(2) The administrator shall do all of the following:
(a) Register auto glass facilities that are subject to this
act.
(b) Keep a complete register of auto glass facilities and make
the registry available for public inspection at the office of the
secretary of state.
(c) Engage in a public information program to inform public
members of their rights and remedies under this act.
(3) The administrator may promulgate any rules under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, that he or she considers necessary to implement,
administer, and enforce this act.
Sec. 7. (1) An auto glass facility shall register the facility
by providing all of the following information to the administrator
concerning the facility and the owner of the facility, on a
registration form provided by the administrator, accompanied by a
registration fee in an amount determined under section 9:
(a) The name, address, and form of ownership of the owner of
the facility, and if the owner is a corporation, the date and place
of incorporation.
(b) The name and address of each of the owner's resident
agents, officers, directors, or partners in this state.
(c) The principal occupation for the past 5 years of all of
the following, as applicable:
(i) Each person that owns 10% or more of the facility.
(ii) For each owner described in subparagraph (i), every
officer and director if the owner is a corporation; every partner
if the owner is a partnership; or any individual who occupies a
similar status or performs similar functions if the owner is
another form of legal entity.
(d) A description of the repair facility, that includes any
information required by the administrator by rule.
(e) An irrevocable appointment of the secretary of state as
the agent for the facility for service of process.
(f) A copy of each instrument, form, contract, or other
document used by the applicant in dealing with the public in the
installation, repair, or replacement of auto glass, including, but
not limited to, all of the following:
(i) Any document on which the facility routinely requires the
customer's signature.
(ii) Any document used by the facility in connection with
providing estimates, diagnoses, or repairs.
(iii) Any invoices, warranties, or waivers.
(iv) Any other document used by the facility to comply with
this act or rules promulgated under this act.
(g) Other relevant information as the administrator shall
require.
(2) A person that owns more than 1 auto glass facility shall
file a single registration form annually, that includes all of the
information described in subsection (1) and also clearly indicates
the location of and the individual in charge of each facility. An
owner described in this section shall pay a separate registration
fee for each facility.
(3) The administrator shall issue a certificate of
registration to an applicant that is registered under this act. If
a certificate of registration is lost, destroyed, or mutilated, the
registrant may obtain a duplicate copy by providing proof that is
satisfactory to the administrator of the loss, destruction, or
mutilation and paying the fee under section 9.
Sec. 9. (1) The department shall establish fees for
registering an auto glass facility, renewing a registration, and
obtaining a replacement certificate of registration for an auto
glass facility.
(2) Any fees collected under this act shall be credited to the
general fund of the state.
Sec. 11. If there is a change in ownership of a motor vehicle
repair facility, a new registration, and payment of a new
registration fee, is required and the facility shall not operate
until its registration application is approved by the administrator
and the fee is paid. If a name or address of the auto glass
facility changes, and there is not a change of ownership, the
facility shall notify the administrator in writing of the change
and shall make the appropriate changes on the next renewal
registration when due.
Sec. 13. (1) The owner of an auto glass facility that is
registered or is required to register under this act shall ensure
that the facility is open to inspection by the administrator and
other law enforcement officials during reasonable business hours.
During reasonable business hours, the administrator and other law
enforcement officials may make periodic unannounced inspections of
the premises, parts records, and parts inventories of a facility.
(2) The owner of an auto glass facility shall maintain
reasonable business records, as required by the administrator by
rule, and ensure that those records are open for reasonable
inspection by the administrator or other law enforcement officials
and are retained for at least 5 years.
(3) An owner of a facility, an employee, or any other person
shall not hinder, obstruct, or otherwise prevent an inspection
under this section.
Sec. 15. (1) If the administrator determines after notice and
a hearing that a person has violated this act or a rule promulgated
under this act, directly or through an agent or employee, he or she
may issue an order that requires the person to cease and desist
from the violation or to take any affirmative action that the
administrator determines is appropriate to carry out the purposes
of this act.
(2) If the administrator makes a finding of fact in writing
that the public interest will be irreparably harmed by delay in
issuing an order, he or she may issue a temporary cease and desist
order. Before issuing the temporary cease and desist order, the
administrator when possible by telephone or otherwise shall give
notice of the proposal to issue a temporary cease and desist order
to the facility. A temporary cease and desist order shall provide
that the administrator on request shall hold a hearing within 30
days to determine whether or not the order shall become permanent.
Sec. 17. (1) The administrator may order a summary suspension
of a registration under this act pursuant to the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, if he or
she obtains an affidavit from an individual who is familiar with
the facts included in the affidavit and determines based on the
affidavit that a facility or an owner of a facility has violated
section 13 of this act or section 2 of 1986 PA 119, MCL 257.1352.
(2) The facility or owner of a facility to which an order of
summary suspension under this section is directed may submit an
application to the administrator for a hearing concerning the
order. If he or she receives an application under this subsection,
the administrator shall hold a hearing within 30 days after the
date of the application pursuant to the administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(3) At a hearing under subsection (2), the administrator may
set aside, continue, or modify the order of summary suspension.
Sec. 19. (1) The administrator may take any administrative
action described in subsection (2) if the administrator determines
that a facility, the owner of a facility, or a stockholder,
officer, director, or partner of the owner of a facility that is a
corporation or partnership does 1 or more of the following:
(a) Makes an untrue statement of a material fact.
(b) Violates this act or a rule promulgated under this act.
(c) Violates a condition of probation.
(d) Makes unnecessary repairs or replacement of auto glass or
repairs or replacement of auto glass that is not authorized by the
customer.
(e) Refuses to honor warranties made by the facility.
(f) Causes or allows a customer to sign a document in blank
relating to the installation, repair, or replacement of auto glass.
(g) Is enjoined by a court of competent jurisdiction from
engaging in the business of installing, repairing, or replacing
auto glass or from a violation of this act or a rule promulgated
under this act.
(h) Fails to comply with the terms of a final cease and desist
order.
(i) Is convicted of a violation of this act.
(j) Uses a waiver of liability provision in an attempt to
evade this act.
(k) Is convicted of a violation of 1986 PA 119, MCL 257.1351
to 257.1355.
(l) Is convicted under section 413, 415, 535, 535a, or 536a of
the Michigan penal code, 1931 PA 328, MCL 750.413, 750.415,
750.535, 750.535a, and 750.536a, or is convicted in another state
of a violation of a law substantially corresponding to 1 of those
sections of the Michigan penal code.
(2) After notice and opportunity for a hearing, the
administrator may do 1 or more of the following if he or she
determines that a facility, an owner of the facility, or a
stockholder, officer, director, or partner of an owner of the
facility that is a corporation or partnership commits a violation
described in subsection (1):
(a) Place a limitation on a registration.
(b) Suspend a registration.
(c) Deny a registration or renewal of a registration.
(d) Revoke a registration.
(e) Censure the person that holds a registration.
(3) As an alternative or in addition to administrative action
under subsection (2) for a violation or alleged violation of
subsection (1), the administrator may, by written agreement with a
person that holds a registration, place the registration on
probation and include conditions of probation in the agreement.
(4) The remedies and sanctions under this act are independent
and cumulative. The use of a remedy or sanction under this act,
including, but not limited to, administrative action by the
administrator under subsection (2) or an agreement for probation
under subsection (3), does not bar other lawful remedies and
sanctions against a person and does not limit a person's criminal
or civil liability under law.
Sec. 21. A registrant under this act, an owner, agent, or
employee of a registrant under this act, or any other person that
knowingly violates this act is guilty of a misdemeanor punishable
by imprisonment for not more than 90 days or a fine of not more
than $1,000.00, or both, for the first conviction under this
section, and by imprisonment for not more than 1 year or a fine of
not more than $5,000.00, or both, for any subsequent conviction.
Enacting section 1. This act takes effect 90 days after the
date it is enacted into law.