The bill amends the Michigan Vehicle Code by updating several sections related to the issuance and management of vehicle titles and security interests. Key changes include the requirement for vehicle owners to execute an application to name the holder of a security interest on the certificate of title, and the stipulation that the department must issue a new certificate of title upon receipt of the necessary documents and fees. Additionally, the bill introduces provisions for the assignment of security interests and mandates that written notice be provided to licensed dealers or installment sellers if a person reassesses or transfers a motor vehicle lease agreement or installment sale contract.

Furthermore, the bill establishes new fees associated with the application for vehicle titles, including a tire disposal surcharge and an additional fee for dealers submitting title applications. It also creates a fund for the administration of the Motor Vehicle Sales Finance Act, with provisions for adjusting fees based on anticipated costs. The bill specifies that the secretary of state will collect a 50-cent assessment for salvage vehicle certificates and other titles, which will be used for vehicle theft prevention programs. The enactment of this bill is contingent upon the passage of Senate Bill No. 739.

Statutes affected:
Senate Introduced Bill: 257.238