HOUSE BILL No. 4287 February 23, 1999, Introduced by Rep. Scranton and referred to the Committee on Transportation. A bill to amend 1949 PA 300, entitled "Michigan vehicle code," by amending section 217 (MCL 257.217), as amended by 1998 PA 247. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 217. (1) An owner of a vehicle that is subject to reg- 2 istration under this act shall apply to the secretary of state, 3 upon an appropriate form furnished by the secretary of state, for 4 the registration of the vehicle and issuance of a certificate of 5 title for the vehicle. Effective January 1, 1994, a vehicle 6 brought into this state from another state or jurisdiction that 7 has a rebuilt, salvage, scrap, or comparable certificate of title 8 issued by that other state or jurisdiction shall be issued a 9 rebuilt, salvage, or scrap certificate of title by the secretary 10 of state. The application shall be accompanied by the required 02127'99 TLG 2 1 fee. An application for a certificate of title shall bear the 2 signature of the owner. The application shall contain all of the 3 following: 4 (a) The owner's name, the owner's bona fide residence, and 5 either of the following: 6 (i) The owner's mailing address, if the owner is an 7 individual. 8 (ii) The owner's business address, if the owner is a firm, 9 association, or corporation. 10 (b) A description of the vehicle including the make or name, 11 style of body, COLOR, and model year; the number of miles, not 12 including the tenths of a mile, registered on the vehicle's odom- 13 eter at the time of transfer; whether the vehicle is to be or has 14 been used as a taxi or police vehicle, or by a political subdivi- 15 sion of this state; whether the vehicle has previously been 16 issued a salvage or rebuilt certificate of title from this state 17 or a comparable certificate of title from any other state or 18 jurisdiction; vehicle identification number; and the vehicle's 19 weight fully equipped, if a passenger vehicle registered in 20 accordance with section 801(1)(a), and, if a trailer coach or 21 pickup camper, in addition to the weight, the manufacturer's 22 serial number, or in the absence of the serial number, a number 23 assigned by the secretary of state. A number assigned by the 24 secretary of state shall be permanently placed on the trailer 25 coach or pickup camper in the manner and place designated by the 26 secretary of state. 02127'99 3 1 (c) A statement of the applicant's title and the names and 2 addresses of the holders of security interests in the vehicle and 3 in an accessory to the vehicle, in the order of their priority. 4 (d) Further information that the secretary of state reason- 5 ably requires to enable the secretary of state to determine 6 whether the vehicle is lawfully entitled to registration and the 7 owner entitled to a certificate of title. If the secretary of 8 state is not satisfied as to the ownership of a late model vehi- 9 cle or other vehicle having a value over $2,500.00, before regis- 10 tering the vehicle and issuing a certificate of title, the secre- 11 tary of state may require the applicant to file a properly exe- 12 cuted surety bond in a form prescribed by the secretary of state 13 and executed by the applicant and a company authorized to conduct 14 a surety business in this state. The bond shall be in an amount 15 equal to twice the value of the vehicle as determined by the sec- 16 retary of state and shall be conditioned to indemnify or reim- 17 burse the secretary of state, any prior owner, and any subsequent 18 purchaser of the vehicle and their successors in interest against 19 any expense, loss, or damage, including reasonable attorney's 20 fees, by reason of the issuance of a certificate of title for the 21 vehicle or on account of any defect in the right, title, or 22 interest of the applicant in the vehicle. An interested person 23 has a right of action to recover on the bond for a breach of the 24 conditions of the bond, but the aggregate liability of the surety 25 to all persons shall not exceed the amount of the bond. The bond 26 shall be returned at the end of 3 years, or before 3 years if the 27 vehicle is no longer registered in this state and the currently 02127'99 4 1 valid certificate of title is surrendered to the secretary of 2 state, unless the secretary of state has received notification of 3 the pendency of an action to recover on the bond. If the secre- 4 tary of state is not satisfied as to the ownership of a vehicle 5 that is valued at $2,500.00 or less and that is not a late model 6 vehicle, the secretary of state shall require the applicant to 7 certify that the applicant is the owner of the vehicle and enti- 8 tled to register and title the vehicle. 9 (e) Except as provided in subdivision (f), an application 10 for a commercial vehicle shall also have attached a scale weight 11 receipt of the motor vehicle fully equipped as of the time the 12 application is made. A scale weight receipt is not necessary if 13 there is presented with the application a registration receipt of 14 the previous year that shows on its face the empty weight of the 15 motor vehicle as registered with the secretary of state that is 16 accompanied by a statement of the applicant that there hasnot17 been NO structural change in the motor vehicle that has increased 18 the empty weight and that the previous registered weight is the 19 true weight. 20 (f) An application for registration of a vehicle on the 21 basis of elected gross weight shall include a declaration by the 22 applicant specifying the elected gross weight for which applica- 23 tion is being made. 24 (g) If the application is for a certificate of title of a 25 motor vehicle registered in accordance with section 801(1)(q), 26 the application shall include the manufacturer's suggested base 27 list price for the model year of the vehicle. Annually, the 02127'99 5 1 secretary of state shall publish a list of the manufacturer's 2 suggested base list price for each vehicle being manufactured. 3 Once a base list price is published by the secretary of state for 4 a model year for a vehicle, the base list price shall not be 5 affected by subsequent increases in the manufacturer's suggested 6 base list price but shall remain the same throughout the model 7 year unless changed in the annual list published by the secretary 8 of state. If the secretary of state's list has not been pub- 9 lished for that vehicle by the time of the application for regis- 10 tration, the base list price shall be the manufacturer's sug- 11 gested retail price as shown on the label required to be affixed 12 to the vehicle under section 3 of the automobile information dis- 13 closure act, Public Law 85-506, 15 U.S.C. 1232. If the 14 manufacturer's suggested retail price is unavailable, the appli- 15 cation shall list the purchase price of the vehicle as defined in 16 section 801(4). 17 (2) Beginning October 1, 1999, the secretary of state shall 18 require an applicant for registration of a leased pickup truck or 19 passenger vehicle that is subject to registration under this act, 20 except a vehicle that is subject to registration tax under sec- 21 tion 801g, to disclose in writing the lessee's name, the lessee's 22 bona fide residence, and either of the following: 23 (a) The lessee's Michigan driver license number or Michigan 24 personal identification number or, if the lessee does not have a 25 Michigan driver license or Michigan personal identification 26 number, the lessee's mailing address, if the lessee is an 27 individual. 02127'99 6 1 (b) The lessee's business address, if the lessee is a firm, 2 association, or corporation. 3 (3) The secretary of state shall maintain the information 4 described in subsection (2) on the secretary of state's computer 5 records. 6 (4) A dealer selling or exchanging vehicles required to be 7 titled, within 15 days after delivering a vehicle to the purchas- 8 er, and a person engaged in the sale of vessels required to be 9 numbered by part 801 of the natural resources and environmental 10 protection act, 1994 PA 451, MCL 324.80101 to 324.80199, within 11 15 days after delivering a boat trailer weighing less than 2,500 12 pounds to the purchaser, shall apply to the secretary of state 13 for a new title, if required, and transfer or secure registration 14 plates and secure a certificate of registration for the vehicle 15 or boat trailer, in the name of the purchaser. The dealer's 16 license may be suspended or revoked in accordance with section 17 249 for failure to apply for a title when required or for failure 18 to transfer or secure registration plates and certificate of reg- 19 istration within the 15 days required by this section. If the 20 dealer or person fails to apply for a title when required, and to 21 transfer or secure registration plates and secure a certificate 22 of registration and pay the required fees within 15 days of 23 delivery of the vehicle or boat trailer, a title and registration 24 for the vehicle or boat trailer may subsequently be acquired only 25 upon the payment of a transfer fee of $15.00 in addition to the 26 fees specified in section 806. The purchaser of the vehicle or 27 boat trailer shall sign the application, including, when 02127'99 7 1 applicable, the declaration specifying the maximum elected gross 2 weight, as required by subsection (1)(f), and other necessary 3 papers to enable the dealer or person to secure the title, regis- 4 tration plates, and transfers from the secretary of state. 5 (5) If a vehicle is delivered to a purchaser who has valid 6 Michigan registration plates that are to be transferred to the 7 vehicle, and an application for title, if required, and registra- 8 tion for the vehicle is not made before delivery of the vehicle 9 to the purchaser, the registration plates shall be affixed to the 10 vehicle immediately, and the dealer shall provide the purchaser 11 with an instrument in writing, on a form prescribed by the secre- 12 tary of state, which shall serve as a temporary registration for 13 the vehicle for a period of 15 days from the date the vehicle is 14 delivered. 15 (6) An application for a certificate of title that indicates 16 the existence of a security interest in the vehicle or in an 17 accessory to the vehicle, if requested by the security interest 18 holder, shall be accompanied by a copy of the security agreement 19whichTHAT need not be signed. The request may be made of the 20 seller on an annual basis. The secretary of state shall indicate 21 on the copy the date and placeof filing ofthe application WAS 22 FILED and return the copy to the person submitting the applica- 23 tion, who shall forward it to the holder of the security interest 24 named in the application. 25 (7) If the seller does not prepare the credit information, 26 contract note, and mortgage, and the holder, finance company, 27 credit union, or banking institution requires the installment 02127'99 8 1 seller to record the lien on the title, the holder, finance 2 company, credit union, or banking institution shall pay the 3 seller a service fee of not more than $10.00. The service fee 4 shall be paid from the finance charges and shall not be charged 5 to the buyer in addition to the finance charges. The holder, 6 finance company, credit union, or banking institution shall issue 7 its check or bank draft for the principal amount financed, pay- 8 able jointly to the buyer and seller, and there shall be 9 imprinted on the back side of the check or bank draft the 10 following: 11 "Under Michigan law, the seller must record a first lien in 12 favor of (name of lender) _______________ on the vehicle with 13 vehicle identification number _______________ and title the vehi- 14 cle only in the name(s) shown on the reverse side." On the front 15 of the sales check or draft, the holder, finance company, credit 16 union, or banking institution shall note the name(s) of the pro- 17 spective owner(s). Failure of the holder, finance company, 18 credit union, or banking institution to comply with these 19 requirements frees the seller from any obligation to record the 20 lien or from any liability that may arise as a result of the 21 failure to record the lien. A service fee shall not be charged 22 to the buyer. 23 (8) In the absence of actual malice proved independently and 24 not inferred from lack of probable cause, a personwho in any25manner causes a prosecution for larcenyIS NOT LIABLE FOR DAM- 26 AGES IN A CIVIL ACTION FOR CAUSING THE PROSECUTION OF 1 OR MORE 27 OF THE FOLLOWING CRIMES: 02127'99 9 1 (A) LARCENY of a motor vehicle.; for embezzlement2 (B) EMBEZZLEMENT of a motor vehicle.; for any3 (C) ANY crime an element of which is the taking of a motor 4 vehicle without authority.; or for buying5 (D) BUYING, receiving, possessing, or aiding in the conceal- 6 ment of a stolen, embezzled, or converted motor vehicle knowing 7 that the motor vehicle has been stolen, embezzled, or converted. 8, is not liable for damages in a civil action for causing the9prosecution. This subsection10 (9) SUBSECTION (8) does not relieve a person from proving 11 any other element necessary to sustain his or her cause of 12 action. 02127'99 Final page. TLG