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.