RE: House Bill 4839 (H-1) Draft-1

As you know, Representative Barb Farrah (D-Southgate) introduced House Bill 4839 on May 24, 2007. Below are the changes that were negotiated with both the Secretary of State and Michigan State Police. As you read the bill, regular case that is not in boldface denotes existing langague in the statute. New language being proposed to the law are denoted with BOLDFACE CAPS and words that have strikethrough is existing language that is being proposed to be removed from the law. We are by no means limited to these changes and can suggest additional changes to the Act of modifications to the proposed changes. At the November board meeting, a deadline of December 1, 2007 was established for consideration of additional changes. The proposed changes to the Michigan Vehicle Code include:

(Page 3 of the bill) Amends Sec. 11 by inserting a new § J which exempts persons engaged in the incidental sale of vehicles considered abandoned under 252a (2) and are valued at less than $2500 from the definition of a dealer. This means that a tower can transfer ownership of any number of abandoned vehicles valued at less than $2500 without first obtaining title to the vehicle.

(Page 5) Amends Sec. 208g by inserting language to permit the custodian of an abandoned vehicle to obtain the name and address of the last-titled owner.

(Page 10) Amends 252a (6) by inserting language which requires an owner to post a bond equal to storage, towing and the abandoned vehicle fee if they request a hearing and regardless of whether they take possession of the vehicle or not.

(Page 11) Amends 252a (9) by establishing that for private property impounds, a "local towing agency" is an agency whose storage lot is located within 15 from the border of the local unit of government having jurisdiction of the tow.

(Page 11) Amends Sec 252a (10) by inserting language under the private property impounds which requires the tower to provide reasonable notice by telephone, or otherwise to law enforcement regarding the removal of a vehicle.

(Page 11) Amend Sec 252a (10) by inserting language which clarifies that a police agency is not required to verify tower compliance under 252a prior to entering a vehicle into LEIN.

Amends 252d with several changes:

1. (Page 16) Inserts a new § K to permit the immediate removal of a vehicle that has been involved in a traffic accident that cannot be safely operated from the scene.

2. (Page 17) Amends 252d (3)(a) to require a stolen vehicle check prior to a police agency authorizing the immediate removal of a vehicle on private property.

3. (Page 17) Amends 252d (3)(b) to Establish that a vehicle taken into immediate custody must be entered into LEIN not less than 7 days after authorizing the removal unless the vehicle is being held as a stolen, used in the commission of a crime, or involved in a traffic accident.

4. (Page 17) Amends 252d by creating a new § 4 by clarifying that a vehicle taken into immediate custody as a stolen, used in the commission of a crime, or involved in an accident must first be released by the agency prior to releasing the vehicle to the owner.

5. (Page 17) Amends 252d by creating a new § 5 establishing that a vehicle brought in under 252d that has been released the police agency must be deemed abandoned by the custodian of the vehicle not less than 20 days nor more than 30 days after the vehicle has been released by the police agency.

(Page 18) Amends 252e by creating a new § (4) establishing that the hearing provisions under this Act are the exclusive remedies.

(Page 20) Amends 252e (3) creating new § (E) and (F) which would permit the courts to determine whether a private property owner complied with the provisions of 252k or 252l and order restitution if he or she did not comply.

(Page 20)Amends 252e (3) creating new § (G) and (H) which would permit the courts to determine whether a tower complied with procedures for the proper removal and reporting of an abandoned vehicle under 252a(10), 252b or 252d and order restitution if tow company did not comply.

(Page 21) Amends 252g (1) (a) by clarifying that auctions occur under the direction of the police agency and that a police agency may designate the custodian or a third party to conduct the auction.

(Page 21) Amends 252g (1) (d) by permitting posting of vehicle auctions on the SOS website as sufficient public notice under the Act.

(Page 22) Amends 252g (5) by clarifying that the entity that conducted the public auction, if it was not the police agency, is required to notify the Secretary of State regarding the final disposition of the vehicle.

(Page 23) Amends 252g by creating a new § (6) that permits the towing agency or custodian to obtain a copy of the bill of sale from the Secretary of State 25 days after notice has been provided to the vehicle owner.

(Page 23) Amends 252k by clarifying that the "no parking" sign (notice) required for private property impounds shall be displayed each point of entry.

(Page 24) Amends 252l by creating a new § C which clarifies that private property does not have to be posted as required under 252k if a police agency authorizes a vehicle to be immediately removed under the provisions of 252d.

If you have any questions or comments regarding this legislation, please feel free to contact Bill Zaagman to discuss at 517/484-6216.