HOUSE BILL No. 6616

 

November 6, 2008, Introduced by Reps. Palsrok and Mayes and referred to the Committee on Tourism, Outdoor Recreation and Natural Resources.

 

     A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending sections 216, 248, and 719a (MCL 257.216, 257.248, and

 

257.719a), section 216 as amended by 2002 PA 642, section 248 as

 

amended by 2004 PA 495, and section 719a as amended by 1996 PA 136,

 

and by adding sections 38a, 49a, and 74a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 38a. "Park model trailer" means a vehicle that meets all

 

of the following:

 

     (a) Is built on a single chassis, mounted on wheels, and

 

designed to be towed by a motor vehicle from time to time.

 

     (b) Requires a permit under section 719a to be towed on a

 

street or highway.

 


     (c) Is designed to provide recreational seasonal or temporary

 

living quarters.

 

     (d) When used as recreational seasonal or temporary living

 

quarters, may be connected to utilities necessary for the operation

 

of installed fixtures and appliances.

 

     (e) Is not a mobile home as that term is defined in section 2

 

of the mobile home commission act, 1987 PA 96, MCL 125.2302.

 

     Sec. 49a. (1) "Recreational vehicle" means a new or used

 

vehicle that has its own motive power or is towed by a motor

 

vehicle; is primarily designed to provide temporary living quarters

 

for recreational, camping, travel, or seasonal use; complies with

 

all applicable federal vehicle regulations; and does not require a

 

permit under section 719a to be operated or towed on a street or

 

highway. The term includes, but is not limited to, a motor home,

 

travel trailer, park model trailer, or pickup camper.

 

     (2) "Recreational vehicle dealer" means a vehicle dealer

 

engaged in the business of purchasing, selling, exchanging,

 

brokering, leasing, or dealing in recreational vehicles.

 

     Sec. 74a. (1) "Travel trailer" means a trailer coach, fifth

 

wheel trailer, camping trailer, or other vehicle that is designed

 

to be towed by a motor vehicle; is designed to provide temporary

 

living quarters for recreational, camping, or travel use; and does

 

not require a special highway movement permit under section 719a

 

because of its size and weight when towed on a street or highway.

 

     (2) As used in this section:

 

     (a) "Camping trailer" means a trailer coach constructed with

 

collapsible side walls that fold for towing and unfold to provide

 


temporary living quarters for recreational, camping, or travel use.

 

     (b) "Fifth wheel trailer" means a trailer coach designed to be

 

towed by a motor vehicle using a towing mechanism that is mounted

 

above or forward of the tow vehicle’s rear axle.

 

     Sec. 216. Every motor vehicle, pickup camper, trailer coach

 

recreational vehicle, trailer, semitrailer, and pole trailer, when

 

driven or moved upon on a street or highway, is subject to the

 

registration and certificate of title provisions of this act except

 

the following:

 

     (a) A vehicle driven or moved upon on a street or highway in

 

conformance with the provisions of this act relating to

 

manufacturers, transporters, dealers, or nonresidents.

 

     (b) A vehicle that is driven or moved upon on a street or

 

highway only for the purpose of crossing that street or highway

 

from 1 property to another.

 

     (c) An implement of husbandry.

 

     (d) Special mobile equipment. for which the The secretary of

 

state may issue a special registration to an individual,

 

partnership, corporation, or association not licensed as a dealer

 

that pays the required fee, to identify the special mobile

 

equipment when being moved over the streets and highways upon

 

payment of the required fee that is driven or moved on a street or

 

highway.

 

     (e) A vehicle that is propelled exclusively by electric power

 

obtained from overhead trolley wires though not operated upon on

 

rails.

 

     (f) Any vehicle subject to registration, but owned by the

 


government of the United States.

 

     (g) A certificate of title need not be obtained is not

 

required for a trailer, semitrailer, or pole trailer weighing that

 

weighs less than 2,500 pounds.

 

     (h) A vehicle driven or moved upon the on a street or highway,

 

by the most direct route, only for the purpose of securing a scale

 

weight receipt from a weighmaster as is required in for purposes of

 

section 801 , or for obtaining a vehicle inspection by a law

 

enforcement agency before titling or registration , and then only

 

by the most direct route of that vehicle.

 

     (i) A certificate of title need not be obtained is not

 

required for a vehicle owned by a manufacturer or dealer and held

 

for sale or lease, even though incidentally moved on the a street

 

or highway or used for purposes of testing or demonstration.

 

     (j) A bus or a school bus , as defined in section 4b or 57,

 

that is not self-propelled and is used exclusively as a

 

construction shanty.

 

     (k) A certificate of title need not be obtained is not

 

required for a moped.

 

     (l) For 3 days immediately following the date of a properly

 

assigned title or signed lease agreement from any person other than

 

a vehicle dealer, a registration need not be obtained is not

 

required for a vehicle driven or moved upon the on a street or

 

highway for the sole purpose of transporting the vehicle in by the

 

most direct route from the place of purchase or lease to a place of

 

storage if the driver has in his or her possession the assigned

 

title showing the date of sale or a lease agreement showing the

 


date of the lease.

 

     (m) A certificate of registration need not be obtained is not

 

required for a pickup camper, but a certificate of title shall be

 

obtained is required.

 

     (n) A new motor vehicle driven or moved upon the on a street

 

or highway only for the purpose of moving the vehicle from an

 

accident site to a storage location if the vehicle was being

 

transported on a railroad car or semitrailer that was involved in a

 

disabling accident.

 

     Sec. 248. (1) The secretary of state shall not grant a dealer

 

license under this section until an investigation is made of the

 

applicant's qualifications under this act, except that this

 

subsection does not apply to dealer license renewals. The secretary

 

of state shall make the investigation within 15 days after

 

receiving the application and make a report on the investigation.

 

     (2) An applicant for a new vehicle dealer or license, a used

 

or secondhand vehicle dealer or broker license, or a recreational

 

vehicle license shall include a properly executed bond or renewal

 

certificate with the application. If a renewal certificate is used,

 

the bond is considered renewed for each succeeding year in the same

 

amount and with the same effect as an original bond. The bond shall

 

be in the sum of $10,000.00 with good and sufficient surety to be

 

approved by the secretary of state. The bond shall indemnify or

 

reimburse a purchaser, seller, lessee, financing agency, or

 

governmental agency for monetary loss caused through fraud,

 

cheating, or misrepresentation in the conduct of the vehicle

 

business whether the fraud, cheating, or misrepresentation was made

 


by the dealer or by an employee, agent, or salesperson of the

 

dealer. The surety shall make indemnification or reimbursement for

 

a monetary loss only after judgment based on fraud, cheating, or

 

misrepresentation has been entered in a court of record against the

 

licensee. The bond shall also indemnify or reimburse the state for

 

any sales tax deficiency as provided in the general sales tax act,

 

1933 PA 167, MCL 205.51 to 205.78, or use tax deficiency as

 

provided in the use tax act, 1937 PA 94, MCL 205.91 to 205.111, for

 

the year in which the bond is in force. The surety shall make

 

indemnification or reimbursement only after final judgment has been

 

entered in a court of record against the licensee. A dealer or

 

applicant who that has furnished satisfactory proof that a bond

 

similar to the bond required by this subsection is executed and in

 

force is exempt from the bond provisions set forth in this

 

subsection. The aggregate liability of the surety shall not exceed

 

the sum of the bond. The surety on the bond may cancel the bond

 

upon by giving 30 days' notice in writing to the secretary of state

 

and thereafter after that period is not liable for a breach of

 

condition occurring after the effective date of the cancellation.

 

     (3) An applicant for a new vehicle dealer, or a used or

 

secondhand vehicle dealer, or recreational vehicle dealer license

 

shall apply for not less than 2 dealer plates as provided by

 

required under section 245 and shall include with the application

 

the proper fee as provided by required under section 803.

 

     (4) As a condition precedent to the granting of a dealer

 

license, a the dealer shall file with the secretary of state an

 

irrevocable written stipulation, authenticated by the applicant,

 


stipulating and agreeing that legal process affecting the dealer,

 

served on the secretary of state or a deputy of the secretary of

 

state, has the same effect as if personally served on the dealer.

 

This appointment remains in force as long as the dealer has any

 

outstanding liability within this state.

 

     (5) A person shall not carry on or conduct the business of

 

buying, selling, brokering, leasing, negotiating a lease, or

 

dealing in 5 or more vehicles of a type required to be titled under

 

this act in a 12-month period unless the person obtains a dealer

 

license from the secretary of state authorizing the carrying on or

 

conducting of that business. A person shall not carry on or conduct

 

the business of buying, selling, brokering, leasing, negotiating a

 

lease, or dealing in 5 or more distressed, late model vehicles or

 

salvageable parts to 5 or more of those vehicles in a 12-month

 

period unless the person obtains a used or secondhand vehicle parts

 

dealer, an automotive recycler, or a salvage pool license from the

 

secretary of state or is an insurance company admitted to conduct

 

business in this state. A person shall not carry on or conduct the

 

business of buying 5 or more vehicles in a 12-month period to

 

process into scrap metal or store or display 5 or more vehicles in

 

a 12-month period as an agent or escrow agent of an insurance

 

company unless the person obtains a dealer license from the

 

secretary of state. A vehicle scrap metal processor who does not

 

purchase vehicles or salvageable parts from unlicensed persons is

 

not required to obtain a dealer license. A person from another

 

state shall not purchase, sell, or otherwise deal in distressed,

 

late model vehicles or salvageable parts unless the person obtains

 


a foreign salvage vehicle dealer license from the secretary of

 

state as prescribed under section 248b. A person, including a

 

dealer, shall not purchase or acquire a distressed, late model

 

vehicle or a salvageable part through a salvage pool, auction, or

 

broker without a license as a salvage vehicle agent. The secretary

 

of state shall investigate and seek prosecution, if necessary, of

 

persons any person allegedly conducting a business without a dealer

 

license.

 

     (6) The An application for a dealer license shall be in the

 

form prescribed by the secretary of state, and shall be signed by

 

the applicant, . In addition to other information as may be

 

required by the secretary of state, the application and shall

 

include all of the following:

 

     (a) Name of the applicant.

 

     (b) Location of the applicant's established place of business

 

in this state, together with written verification from the

 

appropriate governing or zoning authority that the established

 

place of business meets all applicable municipal and zoning

 

requirements.

 

     (c) The name under which business is to be conducted.

 

     (d) If the business is a corporation, the state of

 

incorporation.

 

     (e) Name, address, date of birth, and social security number

 

of each owner or partner of the applicant and, if a corporation,

 

the name, address, date of birth, and social security number of

 

each of the principal officers of the corporation.

 

     (f) The county in which the business is to be conducted and

 


the address of each place of business in that county.

 

     (g) If new vehicles or new recreational vehicles are to be

 

sold, the make to be handled of those new vehicles or new

 

recreational vehicles. Each new vehicle or new recreational vehicle

 

dealer shall send with the application for license a certification

 

that the dealer holds a bona fide contract to act as factory

 

representative, factory distributor, or distributor representative

 

to sell at retail ......... (the make of vehicle or recreational

 

vehicle to be sold).

 

     (h) A statement of the previous history, record, and

 

associations of the applicant and of each owner, partner, officer,

 

and director. The statement shall be sufficient to establish to the

 

satisfaction of the secretary of state the business reputation and

 

character of the applicant.

 

     (i) A statement showing whether the applicant has previously

 

applied for a license, the result of the application, and whether

 

the applicant has ever been the holder of a dealer license that was

 

revoked or suspended.

 

     (j) If the applicant is a corporation or partnership, a

 

statement showing whether a partner, employee, officer, or director

 

has been refused a license or has been the holder of a license that

 

was revoked or suspended.

 

     (k) If the application is for a used or secondhand vehicle

 

parts dealer or an automotive recycler, it shall include all of the

 

following:

 

     (i) Evidence that the applicant maintains or will maintain an

 

established place of business.

 


     (ii) Evidence that the applicant maintains or will maintain a

 

police book and vehicle parts purchase and sales and lease records

 

as required under this act.

 

     (iii) Evidence of worker's compensation insurance coverage for

 

employees classified under the North American industrial

 

classification system number 42114, entitled "motor vehicle parts

 

(used) wholesalers" or under the national council on compensation

 

insurance classification code number 3821, entitled "automobile

 

dismantling and drivers", if applicable.

 

     (l) Certification that neither the applicant nor another person

 

named on the application is acting as the alter ego of any other

 

person or persons in seeking the license. For the purpose of this

 

subdivision, "alter ego" means a person who that acts for and on

 

behalf of, or in the place of, another person for purposes of

 

obtaining a vehicle dealer license.

 

     (m) Any other information required by the secretary of state.

 

     (7) A person shall apply separately for a dealer license for

 

each county in which business is to be conducted. Before moving 1

 

or more of his or her places of business or opening an additional

 

place of business, a dealer shall apply to the secretary of state

 

for and obtain a supplemental dealer license. , for which a fee

 

shall not be charged. A The secretary of state shall not charge a

 

fee for issuing a supplemental dealer license and shall issue a

 

supplemental dealer license shall be issued only for a location,

 

including a tent, temporary stand, or any temporary quarters, that

 

does not meet the definition of an established place of business,

 

within the county in which the dealer's established place of

 


business is located. A dealer license entitles the dealer to

 

conduct the business of buying, selling, leasing, and dealing in

 

vehicles or salvageable parts in the county covered by the license.

 

The dealer license shall also entitle the dealer to conduct at any

 

other licensed dealer's established place of business in this state

 

only the business of buying, selling, leasing, or dealing in

 

vehicles at wholesale.

 

     (8) The secretary of state shall classify and differentiate

 

vehicle dealers according to the type of activity they perform. A

 

dealer shall not engage in activities of a particular

 

classification as provided in this act unless the dealer is

 

licensed in that classification. An applicant may apply for a

 

dealer license in 1 or more of the following classifications:

 

     (a) New vehicle dealer.

 

     (b) Used or secondhand vehicle dealer.

 

     (c) Beginning July 1, 2009, recreational vehicle dealer.

 

     (d) (c) Used or secondhand vehicle parts dealer.

 

     (e) (d) Vehicle scrap metal processor.

 

     (f) (e) Vehicle salvage pool operator.

 

     (g) (f) Distressed vehicle transporter.

 

     (h) (g) Broker.

 

     (i) (h) Foreign salvage vehicle dealer.

 

     (j) (i) Automotive recycler.

 

     (k) (j) Beginning April 1, 2005, wholesaler.

 

     (9) A dealer license expires on December 31 of the last year

 

for which the license is issued. The secretary of state may renew a

 

dealer license for a period of not more than 4 years upon after

 


receiving an application and payment of the fee required by under

 

section 807.

 

     (10) A dealer may conduct the business of buying, selling, or

 

dealing in motor homes, trailer coaches, trailers, or pickup

 

campers trailers or recreational vehicles at a recreational vehicle

 

show conducted at a location in this state without obtaining a

 

separate or supplemental license under subsection (7) if all of the

 

following apply:

 

     (a) The dealer is licensed as a new vehicle dealer, or used or

 

secondhand vehicle dealer, or recreational vehicle dealer.

 

     (b) The duration of the recreational vehicle show is not more

 

than 14 days.

 

     (c) Not less than 14 days before the beginning date of the

 

recreational vehicle show, the show producer notifies the secretary

 

of state, in a manner and form prescribed by the secretary of

 

state, that the recreational vehicle show is scheduled, the

 

location, dates, and times of the recreational vehicle show, and

 

the name, address, and dealer license number of each dealer

 

participating in the recreational vehicle show.

 

     Sec. 719a. (1) Notwithstanding any other provisions of this

 

act, a person shall not operate on the highways of this state a

 

towing vehicle to which a mobile home or park model trailer is

 

attached , on a street or highway if that mobile home or park model

 

trailer is more than 45 feet in length or more than 60 feet in

 

length when combined with the towing vehicle, is more than 12-1/2

 

feet in height, and has an actual body width of more than 102

 

inches at base rail, unless that person possesses either of the

 


following:

 

     (a) A permit issued by the jurisdictional authority pursuant

 

to under this section.

 

     (b) A special permit issued by the jurisdictional authority

 

pursuant to under section 725.

 

     (2) The A jurisdictional authority may issue to a mobile home

 

or park model trailer transport company, a mobile home or park

 

model trailer manufacturer, or a mobile home or park model trailer

 

dealer an annual permit to move over a on a street or highway, in

 

the ordinary course of that company's, manufacturer's, or dealer's

 

business, a mobile home or park model trailer that conforms to each

 

of the following:

 

     (a) The mobile home or park model trailer is not more than 12

 

feet wide.

 

     (b) The actual body length of the mobile home or park model

 

trailer is not more than 80 feet and the combined length of the

 

mobile home or park model trailer and towing vehicle is not more

 

than 105 feet or the total length of a combination of mobile homes

 

or park model trailers is not more than 80 feet and the total

 

length of a combination of mobile homes or park model trailers and

 

towing vehicle is not more than 105 feet.

 

     (3) A jurisdictional authority may, in accordance with under

 

section 725 , may issue a special permit for the movement of a

 

mobile home over or park model trailer on a street or highway

 

within its jurisdiction if the width of that mobile home or park

 

model trailer conforms to both of the following:

 

     (a) The mobile home or park model trailer is not more than 16

 


feet wide plus normal appurtenances or eaves that extend not more

 

than 6 inches from any side of the mobile home or park model

 

trailer.

 

     (b) The length of the mobile home or park model trailer

 

complies with subsection (2)(b).

 

     (4) A person operating a towing vehicle under subsection (3)

 

shall transport a mobile home or park model trailer only on the

 

lane farthest to the right of that person. A person shall not move

 

a mobile home or park model trailer that is 14 or more feet in

 

width including an eave of 2 feet when the wind velocity exceeds 25

 

miles per hour.

 

     (5) A jurisdictional authority shall not issue a permit

 

described in subsection (2) or (3) for the transport of a mobile

 

home or park model trailer on a Saturday, Sunday, legal holiday,

 

from the noon before until the noon after a holiday, or during the

 

hours between sunset and sunrise.

 

     (6) A jurisdictional authority shall provide and a person

 

operating a towing vehicle shall comply with all of the following

 

in a permit issued under this section:

 

     (a) The date, day, and time period during which a mobile home

 

or park model trailer subject to the permit may be moved on a

 

highway.

 

     (b) Notice that the permit is conditioned upon its holder's

 

compliance with the permit's terms and with the law.

 

     (c) Notice that the operator of a towing vehicle transporting

 

the mobile home or park model trailer shall operate the towing

 

vehicle on a highway as follows:

 


     (i) At a safe speed and in a safe manner that will not impede

 

motor traffic.

 

     (ii) Only when the surface condition of the highway is not

 

slippery.

 

     (iii) In accordance compliance with seasonal load restrictions.

 

     (d) For a mobile home or park model trailer and towing vehicle

 

that, when combined, are more than 80 feet in length or more than

 

12 feet wide, all of the following:

 

     (i) Notice that the mobile home or park model trailer shall be

 

equipped with 2 flashing amber lights on the rear of the mobile

 

home or park model trailer and 1 flashing amber light on the top of

 

the towing vehicle.

 

     (ii) Notice that the mobile home or park model trailer shall be

 

equipped with stop lights and directional lights on the rear of the

 

mobile home or park model trailer.

 

     (iii) Notice that signs with the words "oversize load" shall be

 

displayed on the front bumper of the towing vehicle and the back of

 

the mobile home or park model trailer or, in the case of mobile

 

homes or park model trailers that are 16 feet wide, notice that

 

signs with the words "16-ft wide load" shall be displayed on the

 

front bumper of the towing vehicle and the back of the mobile home

 

or park model trailer.

 

     (iv) Notice that the signs identified in subparagraph (iii) shall

 

be of durable material, in good condition, with black lettering on

 

interstate yellow background, and that each letter shall be of

 

block lettering not less than 12 inches high at the front and not

 

less than 16 inches high at the rear of the unit.

 


     (v) Notice that a vehicle escort is required on those roads

 

where the state police consider escort vehicles necessary for

 

highway safety.

 

     (7) Signs and other special identification for escort vehicles

 

shall conform to state transportation department requirements for

 

all escort vehicles for oversized loads.

 

     (8) For a mobile home or park model trailer being moved

 

pursuant to this section or section 725, the distance between

 

mobile home or park model trailer axle centers shall not be less

 

than 34 inches. The axles and tires shall meet standards

 

established by the state transportation department.

 

     (9) This section does not grant or give authority to the state

 

transportation department that did not exist on May 1, 1982, in

 

accordance with section 127 of title 23 of the United States Code,

 

23 U.S.C. 127 23 USC 127.

 

     (10) A person who that violates this section is responsible

 

for a civil infraction and may be assessed a civil fine of not more

 

than $500.00. The owner of the towing vehicle may be charged with a

 

violation of this section.

 

     (11) The state transportation commission may order the state

 

transportation department to immediately cease issuing all special

 

permits to move on the highways of the lower peninsula of this

 

state a mobile home or park model trailer that is more than 14-1/3

 

feet wide plus normal appurtenances that extend no more than 6

 

inches, and an eave that extends no more than 2 feet from the width

 

of that mobile home upon a or park model trailer if the state

 

transportation commission makes a determination that those permits

 


create an unreasonable safety hazard or hazards. The state

 

transportation commission shall notify all other jurisdictional

 

authorities of the a determination made under this subsection. The

 

order shall not prohibit the issuance of a special permit for the

 

movement of a mobile home or park model trailer if a binding

 

contract for the movement of that mobile home or park model trailer

 

was executed before the commission determination of an unreasonable

 

safety hazard or hazards.

 

     (12) As used in this section:

 

     (a) "Jurisdictional authority" means the state transportation

 

department, a county road commission, or a local authority having

 

that has jurisdiction over a street or highway upon on which a

 

mobile home is proposed to be moved.

 

     (b) "Mobile home" means any of the following:

 

     (i) A prebuilt housing module.

 

     (ii) That term as defined in section 2 of the mobile home

 

commission act, Act No. 96 of the Public Acts of 1987, being

 

section 125.2302 of the Michigan Compiled Laws 1987 PA 96, MCL

 

125.2302.

 

     (iii) A section of a mobile home as that term is defined in

 

subparagraph (ii).

 

     Enacting section 1. This amendatory act takes effect July 1,

 

2009.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 6617(request no.

 

08271'08 *) of the 94th Legislature is enacted into law.