December 8, 2005, Introduced by Reps. Gonzales, Polidori, Zelenko, Espinoza, Plakas, Garfield, Farrah, Clack, Wojno, Gleason, Anderson, Vagnozzi, Lipsey and Lemmons, III and referred to the Committee on Commerce.
A bill to establish a right of an individual entering military
service for more than 90 days to cancel a motor vehicle lease; and
to prescribe penalties and provide remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) If an individual who has entered military service
for a period of more than 90 consecutive days is a lessee, or 1 of
the lessees, of a noncommercial motor vehicle for personal use at
the time he or she enters military service, the individual may
cancel the vehicle lease by giving written notice of cancellation
to the lessor or the lessor's assignor at any time after the
individual receives the order to enter military service and
returning the leased vehicle to the lessor or the lessor's
assignor.
(2) If a vehicle lease canceled under subsection (1) provides
for monthly installment payments, the cancellation is effective on
the last day of the month following the month in which the
individual entering military service gives notice of cancellation
or when the leased vehicle is returned to the lessor or the
lessor's assignor, whichever is later. If a vehicle lease canceled
under subsection (1) does not provide for monthly installment
payments, the cancellation is effective on the date the next lease
payment is due or when the leased vehicle is returned to the lessor
or the lessor's assignor, whichever is later.
(3) If an individual cancels a lease under subsection (1), the
individual and any cosigner on the lease have no further liability
to the lessor or the lessor's assignor after the effective date of
the cancellation, except that the individual and any cosigner are
obligated to the lessor or assignor for any damages to the vehicle
and excess mileage over the pro rata amount permitted as of the
effective date of cancellation of the lease. The lessor or
lessor's assignor shall not impose any penalty or charge on the
individual or any cosigner on the lease for early cancellation of
the lease.
(4) As used in this section, "lease" includes a lease with an
option to purchase.
Sec. 2. (1) A vehicle lessor or assignor of a lessor that
knowingly violates this act is guilty of a misdemeanor punishable
by imprisonment for not more than 180 days or a fine of not more
than $1,000.00, or both.
(2) In an action under subsection (1), the court may order the
repayment of all or part of any previous installments or deposits
made by the lessee of the vehicle lease as a condition of
terminating the lease.
(3) In an action under subsection (1), the court may, and
shall if requested by the individual in military service or an
individual on his or her behalf, order a stay of the proceedings or
other equitable relief that the court determines is equitable to
conserve the interests of all of the parties. A stay ordered under
this subsection shall not terminate before the individual leaves
military service or terminate more than 6 months after the
individual leaves military service.