The bill amends the Michigan Vehicle Code, specifically section 217c, to enhance the procedures and requirements for salvage and scrap vehicle titles. It introduces new provisions that clarify the responsibilities of insurance companies when they take ownership of late model vehicles through claims. For example, if the estimated repair costs are between 75% and 91% of the vehicle's pre-damaged value, the insurance company is required to apply for a salvage certificate of title, while costs exceeding 91% necessitate a scrap certificate. Additionally, insurance companies must provide proof of payment and adhere to specific procedures for title transfer, including notifying the owner or lienholder about the need to surrender the title.

The bill also grants local police agencies the authority to arrest individuals suspected of unlawfully possessing stolen vehicles or parts and establishes that officers with suspended, revoked, or denied certifications cannot be appointed. It outlines the process for the secretary of state to issue certificates to trained officers for conducting salvage vehicle inspections, emphasizing that only certified individuals may perform these inspections. The bill includes provisions for revoking an officer's certification upon conviction of certain crimes and establishes a right to appeal such revocations. Furthermore, it mandates that inspection fees, capped at $100, be determined by local authorities and used for law enforcement purposes, while also clarifying the definition of "actual cash value" for vehicles and detailing the responsibilities of dealers and processors regarding salvage vehicles.

Statutes affected:
Substitute (H-1): 257.217
House Introduced Bill: 257.217