HOUSE Substitute For
SENATE BILL NO. 659
A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
by amending section 248l (MCL 257.248l), as added by 2018 PA 420.
the people of the state of michigan enact:
Sec. 248l. (1) The secretary of state shall establish each of the
following dealer training programs for eligible used vehicle dealers:
(a) A prelicensure
dealer training program that meets all of the following:
(i) Is conducted by the department, or a
qualified trade organization approved by the department, and is offered at
least 2 times each calendar quarter. If approved by the department, the
training program may be conducted online or by other electronic means.
(i) (ii) Is available to any individual who is an eligible used
vehicle dealer who is applying for an original
dealer license or is a partner or officer of an eligible used vehicle dealer that is applying for an original dealer license.
(ii) (iii) Includes training related to this act and any other subject
matter approved by the secretary of state, such as consumer protection and
sales and use tax collection. The department may consult with any other departments to evaluate and approve develop course
content it considers appropriate.
(b) A training program
for designated individuals that meets all of the following:
(i) Is conducted by the department or
another person designated by the secretary of state and is offered at
least 2 times each calendar quarter. If approved by
the department, the training program may be conducted online or by other
electronic means.
(ii) Is available to any designated individual.
(iii) Includes training in transferring vehicle titles,
documentation of title transfers, record keeping, and any other subject matter approved considered appropriate
by the secretary of state, such as consumer protection and sales and use
tax collection. The department may consult with other
departments to evaluate and develop course content it considers appropriate.
(c) A continuing
education training program that meets all of the following:
(i) Is conducted at least 2 times in each calendar quarter.
(ii) Includes at least 2 hours of training.
(iii) Includes subject matter approved considered appropriate by the secretary of state, such as transferring vehicle titles, documentation of
title transfers, record keeping, consumer protection, and sales and use tax collection.
The department may consult with any other
departments it considers appropriate to evaluate and approve
develop course content.
(iv) Is conducted by 1 of the following:
(A) The department.
(B) A qualified trade organization that is approved by the
department. The department may evaluate a qualified trade organization approved
under this sub-subparagraph to determine whether it meets the requirements of
this subdivision. The department may, after a hearing, suspend or revoke a
qualified trade organization's approval to offer the training described in this
subdivision for failure to comply with those requirements.
(2) In the 6-month
period preceding the date of the application for an original eligible used
vehicle dealer license, each individual who is the applicant, each partner of
the applicant, or each officer of the applicant, as applicable, for the
original eligible used vehicle dealer license must shall complete the prelicensure dealer
training program described in subsection (1)(a). This subsection does not apply
to either any of
the following:
(a) An applicant, or application, for the
renewal of an eligible used vehicle dealer license.
(b) The holder of an
original eligible used vehicle dealer license that was granted before, and is
valid on, the effective date of this section.March 20, 2019.
(c) The owner, partner, corporate officer, or director of a
new vehicle dealer license.
(3) In the 90-day period
following the issuance of an original dealer license to an eligible used vehicle
dealer, the licensed dealer shall select a designated individual and ensure
that he or she completes the dealer training
program described in subsection (1)(b). However, this This subsection does not apply if the designated
individual has completed the continuing education training
program described in subsection (1)(c). An eligible used vehicle dealer must shall select a
designated individual for each of its retail sales locations. An eligible used
vehicle dealer must shall
not select the same individual as the designated individual for more
than 3 retail sales locations.
(4) Subsection (3) does
not apply to the holder of an original or renewal eligible used vehicle dealer
license that was granted before, and is valid on, the
effective date of this section March 20, 2019 until
that license is next renewed.
(5) In addition to the
training program described in subsection (1)(b), an eligible used vehicle
dealer shall ensure that a designated individual completes the continuing education training program described in
subsection (1)(c) 1 time in each 24-month period after the date of issuance of
its original license.
(6) The training requirements described in subsections (2),
(3), and (5) may be satisfied by attending a training program that is conducted
by the department or a qualified trade organization approved by the department
under subsection (10).
(7) A qualified trade organization may apply to the department
for approval to conduct the training programs described in subsection (1). A
qualified trade organization shall not conduct a training program described in
subsection (1) unless it obtains the approval described in subsection (10). No
later than 30 days after the effective date of the amendatory act that added
this subsection, the department shall develop and make available an application
form.
(a) Any
documentation required for establishing that the applicant is a qualified trade
organization.
(b) A training
program plan or curriculum for each training program the qualified trade
organization intends to conduct that is consistent with the training programs
described in subsection (1).
(c) Any other
information or requirements the department considers necessary for purposes of
approving an application under subsection (10).
(9) The training
programs established by the secretary of state under subsection (1) and any
training program approved by the department under subsection (10) may be
conducted online or by other electronic means.
(10) Not later than
10 business days after receiving an application under this section, the
department shall approve or deny the application. The department shall provide
the approval or denial in writing and, if denied, it shall list the reasons for
the denial. Regardless of the reason for denial, the applicant
may resubmit the application correcting the deficiencies identified by the
department in the denial letter. The department shall have 5 business days to
review a resubmitted application and either approve or deny the application. If
a resubmitted application is denied, the denial shall be in writing to the
applicant and the applicant shall have an opportunity to correct any
deficiencies identified by the department in the denial letter.
(11) If a qualified trade organization that has received the
approval described in subsection (10) fails to comply with the requirements of
the training programs described in subsection (1), the department may, after a
hearing conducted in accordance with the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328, suspend or revoke the
approval.
(12) (6) The
department shall not renew the license of an eligible used vehicle dealer
unless the application for renewal includes a certification from the dealer
that it is in compliance with the training requirements applicable under this
section.
(13) The department shall not charge a fee to review,
approve, or deny an application submitted under this section.
(14) The department may promulgate rules and procedures in
accordance with the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, to implement this section.
(15) (7) As used in
this section:
(a) "Designated
individual" means any of the following individuals, if he or she is
selected by an eligible used vehicle dealer to complete a training program
described in this section:
(i) An individual who is a licensed eligible used vehicle
dealer or a partner or officer of a licensed eligible used vehicle dealer.
(ii) Is An
individual who is an employee of a licensed eligible used vehicle
dealer, such as a general manager, a sales manager, or an employee who is
responsible for preparing title documents for the dealer.
(b) "Eligible used
vehicle dealer" means a person that is licensed as a used or secondhand
vehicle dealer, or is applying for licensure as a used or secondhand vehicle
dealer, and is not an owner, partner, corporate officer,
or director of a licensed new vehicle dealer or
seeking licensure as an owner, partner, corporate
officer, or director of a new vehicle dealer.
Enacting section 1. This amendatory act takes effect 60 days after the date it is enacted into law.