Legislative Analysis
Phone: (517) 373-8080
USE OF SALVAGE VEHICLE FEE REVENUE http://www.house.mi.gov/hfa
House Bill 4716 (H-1) as reported from committee Analysis available at
Sponsor: Rep. Brian BeGole http://www.legislature.mi.gov
Committee: Transportation, Mobility and Infrastructure
Complete to 10-25-23
SUMMARY:
House Bill 4716 would amend the Michigan Vehicle Code to allow salvage vehicle
inspection fees collected by law enforcement agencies to be used for a broader range of
law enforcement purposes than currently 1.
The code allows the secretary of state to issue a certificate of title or registration plates for
a vehicle with a salvage certificate only after the vehicle has been inspected and met certain
criteria. An employee of the Department of State, an on- or off-duty police officer, or a
previously certified police officer may be authorized to conduct a salvage vehicle
inspection. Each police agency must charge a fee of up to $100 for the inspections, as
determined by the local authority for the police agency. The fees are deposited with the
local authority or, if the inspection is completed by an employee of the Department of State,
with that department.
Currently, fee revenue collected by local law enforcement agencies must be used solely for
law enforcement purposes related to stolen vehicles, including equipment and road patrol
services that increase the likelihood of recovering stolen vehicles or stolen vehicle parts,
and salvage vehicle inspections.
The bill would instead require that a local authority use the fees for law enforcement
equipment and training that are necessary to protect public health or safety.
The bill also would remove a provision that now requires a dealer selling or assigning a
vehicle to a vehicle scrap metal processor to make a record and distribute it in triplicate
paper copies, and instead would allow the dealer to make and distribute the record as
prescribed by the Department of State.
Finally, the bill would eliminate a provision that now requires a dealer that acquires
ownership of an older model vehicle to receive an assigned certificate of title and retain it
as long as the dealer retains the vehicle and that requires a vehicle scrap metal processor to
surrender an assigned certificate of title to the secretary of state within 30 days after the
vehicle is destroyed or scrapped.
1
The bill also would delete subsection (1) of section 217c. However, because that provision duplicates subsection
(23), this change would have no effect.
House Fiscal Agency Page 1 of 2
 Section 35b of the code defines older model vehicle as a vehicle weighing 8,000
pounds or less, manufactured in the sixth model year immediately preceding the
current model year, or manufactured in any model year before that model year; or,
if more than 8,000 pounds, a vehicle manufactured in a model year preceding the
fifteenth model year before the current model year. (The eliminated provision is the
only place in the code this term is used.)
MCL 257.217c
FISCAL IMPACT:
House Bill 4716 would not affect the level of fee revenue collected by local law
enforcement agencies, but it would alter how those funds could be expended. Expenditures
would be allowed for law enforcement training and equipment necessary to protect public
health or safety.
POSITIONS:
The Michigan Sheriff’s Association indicated support for the bill. (10-25-23)
Legislative Analyst: E. Best
Fiscal Analyst: Marcus Coffin
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 4897 (H-1) as reported from committee Page 2 of 2


Statutes affected:
Substitute (H-1): 257.217
House Introduced Bill: 257.217
As Passed by the House: 257.217