AUTO BROKERS - H.B. 4738 (S-6): FLOOR ANALYSIS

House Bill 4738 (Substitute S-6 as reported by the Committee of the Whole)

Sponsor: Representative Kim Rhead

House Committee: Commerce

Senate Committee: Economic Development, International Trade and Regulatory Affairs

CONTENT

The bill would amend the Michigan Vehicle Code to require a broker, in addition to a new or used vehicle dealer, to maintain a record of each vehicle bought, sold, or exchanged. If the vehicle were purchased, sold, leased, or exchanged through a broker, the record would have to include the broker's name and dealer license number, and the amount of the broker's fee, commission, compensation, or other valuable consideration paid by the purchaser or lessee or paid by the dealer, or both. The record of all vehicles purchased, sold, leased, or exchanged through brokers maintained by the Secretary of State would have to be in an electronic format determined by the Secretary of State.

The bill is tie-barred to House Bill 4740, which would amend Public Act 118 of 1981 to exempt new motor vehicle dealers and importers from paying manufacturers' refunds or rebates.

MCL 257.251 - Legislative Analyst: N. Nagata

FISCAL IMPACT

The fiscal impact of this bill is indeterminate. However, there could be an increase in administrative costs to the Department of State that would result from new electronic formatting requirements.

Date Completed: 6-3-98 - Fiscal Analyst: P. Alderfer

floor\hb4738 - Analysis available @ http://www.michiganlegislature.org

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.