Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Motor Vehicle Code topic
No spam. Unsubscribe anytime.
Rules committee adopts substitute to update Michigan vehicle code; dealers and state say changes streamline sales
Summary
The House Rules Committee adopted and reported HB 53‑56, a roughly 70‑page revision to the Michigan Vehicle Code developed with the Michigan Department of State and auto dealers. Sponsors said it clarifies "courtesy vehicle" status, extends the total‑loss look‑back to eight years, and allows electronic odometer disclosures.
Representative Schutte introduced House Bill 53‑56 as a collaborative update to the Michigan Vehicle Code developed with the Michigan Department of State and the Michigan Auto Dealers Association. "This is a product of collaboration and numerous meetings in person over the past few years," Schutte said, describing the measure as a "brief 70 page bill" that clarifies regulatory issues facing dealers.
Kurt Berryman of the Auto Dealers of Michigan said the bill tightens several regulatory points and highlighted four substantive changes: classifying vehicles with fewer than 5,000 miles as "courtesy vehicles" rather than used vehicles; adding three model years to the total‑loss/salvage calculation (extending the look‑back to eight model years); permitting certain title transactions to be completed electronically; and allowing the department to accept an electronic odometer disclosure. "We're finally gonna ... say that e odometers are allowed in Michigan," Berryman said.
Berryman also described a provision that would allow a dealer to surrender a license rather than requiring a sale of the dealership to exit the business, noting that surrendering a license would not waive any outstanding criminal or civil liability. He added that the bill also defines "fraudulent act" in the code so the department and dealers have a clear standard.
Committee members pressed presenters on the salvage/total‑loss change. Sponsors said the existing statute applied the 71% salvage / 91% scrap thresholds only to the current model year and the prior five model years; HB 53‑56 would add three additional model years to better reflect the current vehicle fleet. "So now we'll be looking at 8 model years," a presenter said, noting the change reflects an average vehicle age on Michigan roads of about 11–14 years.
Vice chair Farhat moved to adopt the H‑2 substitute; the clerk called the roll and recorded 8 yays, 0 nays, and 0 pass, and the substitute was adopted. Vice chair Aragona then moved to report the bill with recommendation as substituted; the clerk again recorded an 8–0 result, and the bill was reported with recommendation as substituted.
The committee also noted a submitted card from the Recycled Materials Association (Matt Sowash) not wishing to speak in support. The bill will move forward from Rules with the committee's recommendation.
Next steps: HB 53‑56 was reported out of Rules with recommendation as substituted; further floor scheduling will be set by House leadership.
