Bill Summary – FastDemocracy

HOUSE BILL NO. 6062
 November 12, 2024, Introduced by Reps. Steckloff, Rogers, Byrnes, Price, Hood, Roth, Wozniak,
   Breen, Hope, Conlin, Weiss, Brenda Carter, Dievendorf and Scott and referred to the
   Committee on Transportation, Mobility and Infrastructure.
      A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
by amending sections 252a, 252d, 252e, 252f, 252g, 252k, 252l, 676c,
676d, and 907 (MCL 257.252a, 257.252d, 257.252e, 257.252f,
252g, 257.252k, 257.252l, 257.676c, 257.676d, and 257.907),
sections 252a, 252f, and 252g as amended by 2018 PA 347, sections
252d and 252e as amended by 2022 PA 89, sections 252k and 252l as
amended by 2008 PA 539, section 676c as added by 2014 PA 303,
section 676d as amended by 2020 PA 141, and section 907 as amended
by 2024 PA 22, and by adding sections 68a, 252n, 252o and chapter
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     IIA; and to repeal acts and parts of acts.
                  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 68a. "Towing agency" means a person engaged in the
 business of removing vehicles from public or private property by
 means including, but not limited to, towing, relocating, and
 storing vehicles.
       Sec. 252a. (1) A person shall not abandon a vehicle in this
 state. It is presumed that the last titled owner of the vehicle is
 responsible for abandoning the vehicle unless the person provides a
 record of the sale as that term is defined in section 240. A person
 who that violates this subsection and who fails to redeem the
 vehicle before disposition of the vehicle under section 252g is
 responsible for a civil infraction and shall must be ordered to pay
 a civil fine of $50.00.
       (2) As used in this section and sections 252b through to 252l,
 "abandoned vehicle" means any of the following:
       (a) A vehicle that has remained is on private property without
 the consent of the owner if the vehicle is located in 1 of the
 following:
       (i) In a private tow-away zone that meets the requirements of
 section 252k.
       (ii) On real property that is appurtenant to and obviously part
 of a single- or dual-family residence.
       (b) A vehicle that has remained on public property for a
 period of not less than 48 hours, or on a state trunk line highway
 as described in section 1 of 1951 PA 51, MCL 247.651, as follows:
       (i) If a valid registration plate is affixed to the vehicle,
 for a period of not less than 18 hours.
       (ii) If a valid registration plate is not affixed to the
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 vehicle.
       (c) A vehicle, other than a late-model vehicle, to which all
 of the following apply:
       (i) An insurance company has not acquired ownership of the
 vehicle under section 217c.
       (ii) The vehicle cannot be disposed of under section 248c.
       (iii) The vehicle has remained in the custody of a vehicle
 salvage pool or broker site without the consent of the vehicle
 salvage pool operator or the broker for a period of not less than
 60 days.
       (3) If a vehicle has remained on public property for the
 period of time described in subsection (2)(b) so that it and
 qualifies as abandoned, a police agency having that has
 jurisdiction over the vehicle or the police agency's designee shall
 determine whether the vehicle has been reported stolen and may
 affix a written notice to the vehicle. The written notice shall
 must contain the following information:
       (a) The date and time the notice was affixed.
       (b) The name and address of the police agency taking the
 action.
       (c) The name and badge number of the police officer affixing
 the notice.
       (d) The date and time the vehicle may be taken into custody
 and stored at the owner's expense or scrapped if the vehicle is not
 removed.
       (e) The year, make, and vehicle identification number of the
 vehicle, if available.
       (4) If the vehicle is an abandoned vehicle, the police agency
 or the police agency's designee may have the towing agency take the
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 vehicle into custody.
         (5) A police agency that has received a vehicle taken into
 custody as abandoned shall do all of the following:
         (a) Recheck to determine if the vehicle has been reported
 stolen.
         (b) Within Not later than 24 hours after the vehicle is taken
 into custody, enter the vehicle as abandoned into the law
 enforcement information network, and notify the secretary of state
 through the law enforcement information network that the vehicle
 has been taken into custody as abandoned. Each notification shall
 must contain the following information:
         (i) The year, make, and vehicle identification number of the
 vehicle, if available.
         (ii) The address or approximate location from which the vehicle
 was taken into custody.
         (iii) The date on which the vehicle was taken into custody.
         (iv) The date the vehicle is being entered into the law
 enforcement information network and whether the information is
 being entered within not later than 24 hours after the vehicle was
 taken into custody.
         (v) The name and address of the police agency that had the
 vehicle taken into custody.
         (vi) The name and business address of the custodian of the
 vehicle.
         (vii) The name of the court that has jurisdiction over the
 case.
         (c) Within 7 Not later than 3 days after receiving notice
 under subdivision (b) that the vehicle has been taken into custody,
 the secretary of state shall do both of the following:
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       (i) Send to the last titled owner and secured party, as shown
 by the records of the secretary of state as described in section
 221 or 237, by first-class mail or personal service, notice that
 the vehicle is considered abandoned. The form for the notice shall
 must be furnished by the secretary of state . Each notice form
 shall and must contain all of the following information:
       (A) The year, make, and vehicle identification number of the
 vehicle if available.
       (B) The address or approximate location from which the vehicle
 was taken into custody.
       (C) The date on which the vehicle was taken into custody.
       (D) The name and address of the police agency that had the
 vehicle taken into custody.
       (E) The name and business address of the custodian of the
 vehicle.
       (F) The procedure to redeem the vehicle.
       (G) The procedure to contest the fact that the vehicle is
 considered abandoned or the reasonableness of the towing fees and
 daily storage fees.
       (H) A form petition that the owner may file in person or by
 mail with the specified court that requests a hearing on the police
 agency's action.
       (I) A warning that the failure to redeem the vehicle or to
 request a hearing within 20 days after the date of the notice may
 result in the sale of the vehicle and the termination of all rights
 of the owner and the secured party to the vehicle or the proceeds
 of the sale.
       (ii) Enter the information described in subparagraph (i) on a
 website maintained by the department for public use in locating to
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 locate vehicles that are removed under this section as abandoned.
 The department shall maintain the data on the website for 1 year or
 until the vehicle is disposed of under this act, whichever occurs
 first.
         (6) The owner may contest the fact that the vehicle is
 considered abandoned or the reasonableness of the towing fees and
 daily storage fees by requesting a hearing and posting a bond equal
 to $40.00 plus the amount of the accrued towing and storage fees. A
 request for a hearing shall be is made by filing a petition with
 the court specified in the notice described in subsection (5)(c)
 within not later than 20 days after the date of the notice. Subject
 to subsection (8), if the owner requests a hearing, the matter
 shall be is resolved after a hearing conducted under sections 252e
 and 252f. An owner who requests a hearing may obtain release of the
 vehicle by posting a towing and storage bond in an amount equal to
 the $40.00 plus the accrued towing and storage fees with the court.
 The owner of a vehicle who requests a hearing may obtain release of
 the vehicle by paying a fee of $40.00 to the court and the accrued
 towing and storage fees instead of posting the towing and storage
 bond.
         (7) Subject to subsection (9), if the owner does not request a
 hearing under subsection (6), he or she the owner may obtain the
 release of the vehicle by paying a fee of $40.00 and the accrued
 towing and storage fees to the custodian of the vehicle. The
 custodian of the vehicle shall forward $25.00 of the fee to the
 secretary of state within not later than 30 days after receipt in a
 manner prescribed by the secretary of state, who shall deposit the
 fee into the abandoned vehicle fund created in section 252h.
         (8) The secured party may contest the reasonableness of the
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 towing fees and daily storage fees and request a hearing in the
 same manner and subject to the same requirements as the owner of
 the vehicle under subsection (6). If both the owner and the secured
 party request a hearing to contest the reasonableness of the towing
 fees and daily storage fees within not later than 20 days after the
 date of the notice, the court shall dismiss the secured party's
 petition and proceed with the owner's petition as provided in
 subsection (6), unless the owner is in default on a contract or
 agreement with the secured party regarding that vehicle. If the
 owner is in default on a contract or agreement with the secured
 party regarding that vehicle, the court shall dismiss the owner's
 petition and proceed with the secured party's petition in the same
 manner as provided in subsection (6). If the secured party redeems
 the vehicle, the owner may only seek damages related to the
 reasonableness of the towing fees and daily storage fees from the
 secured party. If the court finds, after a hearing on the
 reasonableness of the towing fees and daily storage fees, that the
 owner's or the secured party's challenge was frivolous, the court
 may award reasonable attorney fees to the custodian of the vehicle.
         (9) If the owner does not redeem the vehicle or request a
 hearing within 10 days after the date of the notice described in
 subsection (5)(c), the secured party may obtain the release of the
 vehicle by paying a $40.00 fee plus the accrued charges to the
 custodian of the vehicle. The custodian of the vehicle shall
 forward $25.00 of the fee to the secretary of state, who shall
 deposit the fee into the abandoned vehicle fund created in section
 252h.
         (10) If a vehicle has remained on private property without the
 consent of the property owner, the owner of the private property
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 may have the vehicle taken into custody as an abandoned vehicle by
 in accordance with 1 of the following, as applicable:
       (a) If the vehicle is removed from a private tow-away zone,
 section 252k.
       (b) If the vehicle is located on real property that is
 appurtenant to and obviously part of a single- or dual-family
 residence, by contacting a local towing agency. A local towing
 agency is considered As used in this subdivision, "local towing
 agency" means a towing agency whose storage lot is located within
 not more than 15 miles from the border of the local unit of
 government having jurisdiction over the abandoned vehicle.
       (11) Before a towing agency may remove a vehicle from private
 property, the towing agency shall do all of the following:
       (a) Make a reasonable effort to take as many photographs as
 necessary to show that the vehicle is parked on private property in
 violation of section 252k or 252l.
       (b) Record the time and date when a photograph under
 subdivision (a) was taken.
       (c) Maintain the photograph and record under subdivisions (a)
 and (b) in electronic or printed form, for the earlier of the
 following dates:
       (i) Not less than 30 days after the date on which the vehicle
 is recovered by the owner or lienholder.
       (ii) Not less than 2 years after the date on which the vehicle
 was towed.
       (12) (11) Before removing the vehicle from private property,
 the towing agency shall provide notice by telephone, or otherwise,
 to a police agency having jurisdiction over the vehicle that the
 vehicle is being removed. Within Not later than 24 hours after
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 receipt of the notice from the towing agency, the police agency
 shall determine if the vehicle has been reported stolen and enter
 the vehicle into the law enforcement information network as an
 abandoned vehicle. Verification by the police agency of compliance
 with this section is not necessary and is not a predicate to the
 entrance of the vehicle into the law enforcement information
 network.
       (13) (12) Within Not later than 24 hours after taking the
 notice of the removal of an abandoned vehicle, into custody, the
 police agency shall notify the secretary of state through the law
 enforcement information network that the vehicle has been taken
 into custody as abandoned. Each notification shall must contain the
 following information:
       (a) The year, make, and vehicle identification number of the
 vehicle if available.
       (b) The address or approximate location from which the vehicle
 was taken into custody.
       (c) The date on which the vehicle was taken into custody.
       (d) The date the vehicle is being entered into the law
 enforcement information network and whether the information is
 being entered within not later than 24 hours after the vehicle was
 taken into custody.
       (e) The name and address of the police agency that had the
 vehicle taken into custody.
       (f) The name and business address of the custodian of the
 vehicle.
       (g) The name of the court that has jurisdiction over the case.
       (14) (13) Within 7 Not later than 3 business days after being
 notified under subsection (12), (13), the secretary of state shall
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 do both of the following:
       (a) Send to the owner and secured party, as shown by the
 records of the secretary of state, by first-class mail or personal
 service, notice that the vehicle is considered abandoned. The form
 for the notice shall must be furnished by the secretary of state.
 Each notice form shall must contain the following information:
       (i) The year, make, and vehicle identification number of the
 vehicle if available.
       (ii) The location from which the vehicle was taken into
 custody.
       (iii) The date on which the vehicle was taken into custody.
       (iv) The name of the towing agency that had the vehicle taken
 into custody.
       (v) The business address of the custodian of the vehicle.
       (vi) The procedure to redeem the vehicle.
       (vii) The procedure to contest the fact that the vehicle is
 considered abandoned or the reasonableness of the towing fees and
 daily storage fees.
       (viii) A form petition that the owner may file in person or by
 mail with the specified court that requests a hearing on the
 custodian's action.
       (ix) A warning that the failure to redeem the vehicle or to
 request a hearing within 20 days after the date of the notice may
 result in the sale of the vehicle and the termination of all rights
 of the owner and the secured party to the vehicle or the proceeds
 of the sale.
       (b) Enter the information described in subdivision (a) on a
 website maintained by the department for public use in locating
 vehicles that are removed under this section as abandoned.
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       (15) (14) The owner may contest the fact that the vehicle is
 abandoned or, unless the towing fees and daily storage fees are
 established by contract with the local governmental unit or local
 law enforcement agency and comply with section 252i, the
 reasonableness of the towing fees and daily storage fees by
 requesting a hearing. A requ