HOUSE BILL No. 5940


     April 23, 2002, Introduced by Reps. Bishop, Kowall, Raczkowski, Meyer, Scranton, Gosselin, Kuipers and Richner and referred to
the Committee on Civil Law and the Judiciary.


        A bill to amend 1949 PA 300, entitled

   "Michigan vehicle code,"

   by amending section 252g (MCL 257.252g), as added by 1981 PA

   104.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
             Sec. 252g.  (1) A public sale for a vehicle  which  THAT has

 2
        been  deemed  DETERMINED TO BE abandoned under section 252a or

 3
        252c or removed under section 252d shall be conducted in the fol-

 4
        lowing manner:

 5
             (a) It shall be under the control of the police agency or

 6
        agent of the police agency.

 7
             (b) It shall be open to the public and consist of open auc-

 8
        tion bidding or bidding by sealed bids.  If sealed bids are

 9
        received, the person submitting the bid shall receive a receipt




   05172'01 *                                               JJG                                   2

 1
        for the bid from the police agency or agent of the police

 2
        agency.

 3
             (c) Except as provided by sections 252a(9) and 252d(7), it

 4
        shall be held not less than 5 days after public notice of the

 5
        sale has been published.

 6
             (d) The public notice shall be published at least once in a

 7
        newspaper having a general circulation within the county in which

 8
        the vehicle was abandoned.  The public notice shall give a

 9
        description of the vehicle for sale and shall state the time,

10
        date, and location of the sale.

11
             (2) The money received from the public sale of the vehicle

12
        shall be applied in the following order of priority:

13
             (a) Towing and storage charges.

14
             (b) Expenses incurred by the police agency.

15
             (c) To the secured party, if any, in the amount of the debt

16
        outstanding on the vehicle.

17
             (d) Remainder to the owner.  A reasonable attempt shall be

18
        made to mail the remainder to the registered owner.  If delivery

19
        of the remainder cannot be accomplished, the remainder shall

20
        become the property of the unit of government that the police

21
        agency represents.

22
             (3) IF THE AMOUNT RECEIVED FROM THE PUBLIC SALE OF THE VEHI-

23
        CLE UNDER SUBSECTION (1) DOES NOT FULLY SATISFY THE TOWING AND

24
        STORAGE CHARGES, THIS SECTION DOES NOT PROHIBIT THE TOWING FIRM

25
        FROM PURSUING ANY OTHER LAWFUL REMEDY.

26
             (4)  (3)  If there are no bidders on the vehicle, the police

27
        agency may do 1 of the following:



   05172'01 *                                   3

 1
             (a) Turn the vehicle over to the towing firm to  satisfy

 2
        OFFSET charges against the vehicle.

 3
             (b) Obtain title to the vehicle for the police agency or the

 4
        unit of government the police agency represents, by doing the

 5
        following:

 6
             (i) Paying the towing and storage charges.

 7
             (ii) Applying for title to the vehicle.

 8
             (c) Hold another public sale pursuant to subsection (1).

 9
             (5)  (4)  A person who acquires ownership of a vehicle under

10
        subsection (1) or  (3)  (4), which vehicle has been designated as

11
        a distressed vehicle, shall make application for a salvage cer-

12
        tificate of title within 15 days after obtaining the vehicle.

13
             (6)  (5)  Upon disposition of the vehicle, the police agency

14
        shall cancel the entry into the law enforcement information

15
        network.



























   05172'01 *          Final page.                          JJG