HOUSE BILL No. 6091

 

December 16, 2014, Introduced by Rep. Cotter and referred to the Committee on Regulatory Reform.

 

      A bill to amend 1986 PA 119, entitled

 

"An act to regulate the business of buying or receiving used

motor vehicle parts; to prescribe the powers and duties of

certain state and local officers; and to provide penalties,"

 

by amending sections 1 and 2 (MCL 257.1351 and 257.1352) and by

 

adding section 2a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 1. As used in this act:

 

 2        (a) "Agent" means a person an individual who, for

 

 3  compensation or valuable consideration, is employed either

 

 4  directly or indirectly by a dealer.

 

 5        (b) "Dealer" means any person , corporation, partnership, or

 

 6  association, which, in whole or in part, that engages in the

 

 7  ordinary course of repeated and recurrent transactions of buying

 

 8  or receiving used motor vehicle parts from persons other than a

 

 9  licensee. A dealer shall include The term includes any motor


 

 1  vehicle repair facility which that engages in repeated and

 

 2  recurrent transactions of buying or receiving used motor vehicle

 

 3  parts from persons other than a licensee. Dealer The term does

 

 4  not include a scrap metal processor who that buys or otherwise

 

 5  acquires motor vehicles or motor vehicle component parts for the

 

 6  purpose of processing or selling the metal for remelting.

 

 7        (c) "Late model vehicle" means a motor vehicle manufactured

 

 8  in the current model year or the 5 model years immediately

 

 9  preceding the current model year.

 

10        (d) "Local police agency" means the police agency of the a

 

11  city, village, or township, or if none, the county sheriff.

 

12        (e) "Major component part" means 1 any of the following

 

13  subassemblies of a motor vehicle regardless of its actual market

 

14  value: front end assembly, including fenders, grills, hood,

 

15  bumper, and related parts; engine; transmission; T-tops; rear

 

16  clip assembly, including quarter panels and floor panel assembly;

 

17  or doors. ; tires, tire wheels, and continuous treads.

 

18        (f) "Motor vehicle" means a motor vehicle as defined in

 

19  section 33 of the Michigan vehicle code, Act No. 300 of the

 

20  Public Acts of 1949, being section 257.33 of the Michigan

 

21  Compiled Laws.1949 PA 300, MCL 257.33.

 

22        (g) "Motor vehicle repair facility" means a place of

 

23  business which engages in the business of performing or employing

 

24  persons who perform maintenance, diagnosis, or repair service on

 

25  a motor vehicle for compensation.

 

26        (h) "Licensee" means a person , partnership, corporation, or

 

27  association that is licensed under section 248 of the Michigan


 

 1  vehicle code, Act No. 300 of the Public Acts of 1949, being

 

 2  section 257.248 of the Michigan Compiled Laws, 1949 PA 300, MCL

 

 3  257.248, or similarly licensed in another state.

 

 4        (i) "Person" means an individual, corporation, limited

 

 5  liability company, partnership, association, or other legal

 

 6  entity.

 

 7        (j) (i) "Used motor vehicle part" means any of the

 

 8  following:

 

 9        (i) A major component part, dashboard, radio, stereo, or seat

 

10  of a late model motor vehicle for which a certificate of title

 

11  and registration plate have been issued to a consumer or dealer.

 

12        (ii) A motor vehicle tire, tire wheel or rim, or continuous

 

13  tire tread.

 

14        Sec. 2. (1) A dealer shall maintain a permanent record of

 

15  each transaction concerning the buying or receiving of any used

 

16  motor vehicle part from a person other than a licensee, on a

 

17  record of transaction forms provided for form prescribed in

 

18  subsection (5), legibly written in ink in the English language.

 

19  Each record of transaction form shall be filled out in duplicate

 

20  by the dealer or agent with 1 copy going given to the customer ,

 

21  and 1 copy to be retained by the dealer. At the time a dealer

 

22  receives or purchases a used motor vehicle part from a person

 

23  other than a licensee, the dealer or agent shall accurately

 

24  record all of the following information on a record of

 

25  transaction form:

 

26        (a) A general description of the used motor vehicle part

 

27  received or purchased.


 

 1        (b) The vehicle identification number of the vehicle the

 

 2  used motor vehicle part came from.

 

 3        (c) The state of origin of the used motor vehicle part.

 

 4        (d) The date of the transaction.

 

 5        (e) The name of the person individual who is conducting the

 

 6  transaction for on behalf of the dealer.

 

 7        (f) The name, date of birth, driver's license number or

 

 8  state of Michigan personal identification card number, and street

 

 9  and house number of the person individual with whom the

 

10  transaction is being made, together with a legible imprint of the

 

11  right thumb of the person individual with whom the transaction is

 

12  made, or if that is not possible, then the left thumb or a finger

 

13  of that person. individual. However, the thumbprint or

 

14  fingerprint shall is only be required on the record of

 

15  transaction form retained by the dealer. The dealer shall make a

 

16  thumbprint or fingerprint shall be made available to the local

 

17  police agency or the department of state police only during the

 

18  course of a police investigation involving a used motor vehicle

 

19  part described on the record of transaction. This paragraph shall

 

20  subdivision does not apply to a transaction involving an

 

21  insurance company that has acquired ownership of a late model

 

22  vehicle by the payment of damages due to an accident and a dealer

 

23  that buys the vehicle from the insurance company for salvage.

 

24        (g) The price paid or to be paid by the dealer for the used

 

25  motor vehicle part.

 

26        (h) The Subject to section 2a, the form of payment made to

 

27  the customer. The dealer shall indicate the number of a check,


 

 1  money order, or bank draft and the transaction number of any

 

 2  direct deposit or electronic transfer to the customer's account

 

 3  at a financial institution.

 

 4        (i) The signature of the person individual with whom the

 

 5  transaction is made.

 

 6        (2) The A dealer shall number the record of each transaction

 

 7  shall be numbered consecutively, commencing with the number 1 and

 

 8  the calendar year.

 

 9        (3) The record of transaction forms of a dealer and each

 

10  used motor vehicle part received by a dealer as the result of a

 

11  transaction shall be are open to an inspection by the local

 

12  police agency and the Michigan state police at all times during

 

13  the ordinary business hours of the dealer. As a condition of

 

14  doing business, a dealer shall be is considered to have given

 

15  consent to the inspection prescribed by described in this

 

16  subsection. The record of transaction forms of a dealer shall are

 

17  not be open to inspection by the general public.

 

18        (4) Each A dealer shall retain each record of a transaction

 

19  shall be retained by the dealer for not less than at least 1 year

 

20  after the transaction to which the record pertains. A dealer who

 

21  that goes out of business or changes his or her the dealer's

 

22  business address to another local jurisdiction either within or

 

23  out of this state shall transmit to the local police agency the

 

24  records of all transactions made by the dealer not more than 1

 

25  year before his or her closing or moving. in the 1-year period

 

26  before the dealer closes or moves. After a period of 1 year from

 

27  the date of the transaction, if a police investigation concerning


 

 1  a used motor vehicle part described on the record of transaction

 

 2  has not occurred, the dealer and local police agency shall

 

 3  destroy, and not keep a permanent record of, the records of the

 

 4  transaction.

 

 5        (5) The form of the record of transaction shall be 8-1/2 by

 

 6  11 inches in size and shall be as follows:

 

 

                  "Record of Transaction

                                #  __________________________

10                                   (Transaction number printed

11                                          on the form)

12

13      (1) Description of Property  ___________________________

14 _____________________________________________________________

15 _____________________________________________________________

16 _____________________________________________________________

17 _____________________________________________________________

18      (2) _______________________________ (3) ________________

19          (Vehicle Identification Number)    (State of Origin)

20      (4) ______________, 19 ___   (5) _______________________

21             (Date)                  (Name of  Dealer/Employee)

22      (6) ______________________,   ___________________, 19 ___

23            (Name of Customer)        (Date of Birth)

24      __________________________,   ___________________________

25       (Driver's License No./           (Street Address)

26       Mich. Personal ID Number)   ___________________   ______

27                                    (City & State)       (Zip)

28      (7) ______________________

29             (Price Paid)

30      (8) ______________________

31          (Check no., bank draft

32            no., money order no.,


           transaction no., or cash)

                                ____________________________"

         Thumbprint                (Signature of Customer)

 

 

 7        Sec. 2a. (1) In a transaction concerning the buying or

 

 8  receiving of any used motor vehicle tires, tire wheels or rims,

 

 9  or continuous tire tread, the only methods of payment a dealer

 

10  may use to pay a customer are a check, a money order, a bank

 

11  draft, or a direct deposit or electronic transfer to the

 

12  customer's account at a financial institution.

 

13        (2) A dealer that violates subsection (1) is guilty of a

 

14  misdemeanor punishable by imprisonment for not more than 93 days

 

15  or a fine of not more than $500.00, or both.