USED VEHICLE DEALER TRAINING PROGRAMS                                                  S.B. 659:

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

Senate Bill 659 (as reported without amendment)

Sponsor:  Senator Peter MacGregor

Committee:  Regulatory Reform

CONTENT

The bill would amend the Michigan Vehicle Code to do the following:

-- Revise certain dealer training program requirements for eligible used vehicle dealers.

-- Specify that an owner, partner, corporate officer, or director of a new vehicle dealer license would not have to complete the prelicensure dealer training program.

-- Allow certain training requirements to be satisfied by attending a training program that was conducted by the Department of State or a qualified trade organization approved by the Department.

-- Allow a qualified trade organization to apply to the Department for approval to conduct the dealer training programs, and prohibit an organization from conducting a training program unless it obtained approval no later than 30 days after the bill's effective date.

-- Require the Department to establish rules and procedures in accordance with the Administrative Procedures Act for obtaining approval to conduct the dealer training programs.

-- Allow the training programs established by the Secretary of State and any training programs approved by the Department under the bill to be conducted online or by other electronic means.

-- Prohibit the Department from charging a fee to review, approve, or deny an application submitted under the bill.

MCL 257.248l                                                         Legislative Analyst:  Drew Krogulecki

FISCAL IMPACT

The bill could have a minimal negative fiscal impact on the Department of State. The bill would require the Department to develop used vehicle dealer training course content compared to the current requirement of approving the course content. Additionally, the Department would have to establish rules and procedures for a qualified trade organization to conduct the required trainings in addition to trainings conducted by the Department. Although these costs would be new costs to the Department, they should be minimal and could be absorbed within the Department's annual appropriation.

Date Completed:  2-12-20                                                   Fiscal Analyst:  Joe Carrasco

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.