MOTOR VEHICLE INSTALLMENT SALES - H.B. 6446: FLOOR ANALYSIS
House Bill 6446 (as reported without amendment)
Sponsor: Representative Marc Shulman
House Committee: Insurance and Financial Services
Senate Committee: Transportation and Tourism
CONTENT
The bill would amend the Motor Vehicle Sales Finance Act to do the following:
-- Increase the maximum document preparation fee for a motor vehicle sales installment contract, and require that the fee be regularly adjusted to account for inflation.
-- Require any installment sales contract to contain the cash price of any extended warranty or service contract.
-- Specify that the finance charge would have to be calculated by the seller.
Currently, a document preparation fee must not exceed $40. Under the bill, the fee would be limited to not more than 5% of the cash price of the motor vehicle or $160, whichever was less. Beginning on January 1, 2005, the administrator (the Commissioner of the Office of Financial and Insurance Services) would have to adjust the $160 maximum fee every two years to reflect the cumulative percentage change in the consumer price index for the immediately preceding calendar years. The administrator would have to round the adjustment to the nearest $10 increment to set the fee every two years, but would have to carry over and use the absolute value to calculate the next two-year adjustment.
MCL 492.113 & 492.118 - Legislative Analyst: Julie Koval
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Date Completed: 12-9-02 - Fiscal Analyst: Maria TyszkiewiczFloor\hb6446 - Bill Analysis @ www.senate.michigan.gov/sfa
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.