SB-0392, As Passed Senate, December 8, 2016

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 392

     A bill to amend 1982 PA 432, entitled

"Motor bus transportation act,"

by amending the title and sections 3, 4, 5, 7, 9, 15, 16, 17, 27,

29, 32, 33, 34, 35, and 39 (MCL 474.103, 474.104, 474.105, 474.107,

474.109, 474.115, 474.116, 474.117, 474.127, 474.129, 474.132,

474.133, 474.134, 474.135, and 474.139), sections 3, 4, 5, 7, 17,

27, 29, 33, 34, 35, and 39 as amended and section 32 as added by

1989 PA 233, section 9 as amended by 2012 PA 570, and section 16 as

amended by 1996 PA 421, and by adding section 10; and to repeal

acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

     An act to regulate persons who transport passengers by motor

bus; to prescribe powers and duties for the state transportation

department; to impose certain fees; and to impose penalties; and to

repeal acts and parts of acts.

     Sec. 3. As used in this act:

     (a) "Applicant" means a person who applies for an authority

under this act.

(b) (a) "Certificate of authority" "Authority" means a

certificate of an authority issued under the terms of this act.

unless the context indicates otherwise.Authority includes an

original annual authority, a reinstatement authority, and a renewal

authority.

     (c) "Authorized seasonal vehicle" means an authorized vehicle

that satisfies both of the following:

     (i) The department has approved the vehicle to be used in

service for a contiguous period of time that does not exceed 6

months.

     (ii) The vehicle satisfies the inspection and insurance

requirements of this act during the period the vehicle has been

approved for use.

     (d) "Authorized vehicle" means a vehicle operated by a motor

carrier that complies with all requirements of this act.

     (e) "Bus" means a motor vehicle with a seating capacity of 9

or more passengers, including the driver, that is used in the

transportation of passengers and their baggage for hire upon any

public highway of this state. Except as otherwise provided in

section 4(1)(j), bus includes a school bus.

(f) (b) "Department" means the state transportation

department.

(g) (c) "For hire" means for remuneration or reward of any

kind, paid or promised, either directly or indirectly.

     (d) "Lessor" means a person who leases a motor bus to any

other person for the transportation of passengers for hire over the

public highways of this state.

     (e) "Motor bus" means a self-propelled motor vehicle used in

the transportation of passengers and their baggage for hire upon

any public highway of this state with a maximum seating capacity of

10 persons or more, or 16 persons or more if the limousine

transportation act is enacted into law, including the driver. Motor

bus does not include a self-propelled motor vehicle having a

seating capacity of 15 passengers or less that is used by or on

behalf of an employer to transport its employees to and from their

place of employment.

(h) (f) "Motor carrier of passengers" "Motor carrier" means a

person who, either directly or through any device or arrangement,

holds himself or herself out to the public as willing to undertake

for hire to transport passengers for hire by motor bus from place

to place over the public highways of this state. persons who may

choose to employ him or her for that purpose or for the purpose of

transporting package express, baggage of passengers, newspapers, or

United States mail in the same vehicle used to transport

passengers.

     (i) "Original annual authority" means the first authority

applied for and received by a motor carrier under this act.

(j) (g) "Person" means an individual, sole proprietorship,

partnership, association, corporation, or other legal entity, or

the lessee, trustee, or receiver of any of these entities; this

state; a city, village, township, or county of this state; the

federal government; or an employee, officer, or agent of any of

these units of government.

(k) (h) "Public highway" means a highway, road, street,

avenue, alley, or thoroughfare of any kind, or a bridge, tunnel, or

subway used by the public.

     (l) "Reinstatement authority" means an authority issued to a

motor carrier whose original annual authority or original seasonal

authority was previously revoked under this act.

     (m) "Renewal authority" means an authority for the

continuation of a prior original annual authority or an original

seasonal authority that remained in good standing, or the

continuation of a reinstatement authority.

     (n) "Roster" means a list of buses to be operated for hire by

a motor carrier that is authorized or seeking authorization under

this act and that indicates all of the following information:

     (i) The vehicle identification number, make, model, fleet

number, and year of each vehicle.

     (ii) The beginning and ending dates of service for each

seasonal vehicle.

     (o) "Safety inspector" means an individual designated by the

department to conduct safety inspections under this act.

     (p) "Service" means the movement of passengers by bus.

(q) (i) "The public" means that the part or portion of the

general public which that the motor carrier is ready, able,

willing, and equipped to serve.

(r) (j) "Through any device or arrangement" means any and all

methods, means, agreements, circumstances, operations, or

subterfuges under which a person undertakes for hire to conduct,

direct, control, or otherwise perform the transportation of

passengers by motor bus service upon the public highways of this

state.

     Sec. 4. (1) This act shall does not apply to a motor carrier

of passengers that is any of the following:

     (a) A county, city, township, or village as provided by law,

or other authority incorporated under Act No. 55 of the Public Acts

of 1963, as amended, being sections 124.351 to 124.359 of the

Michigan Compiled Laws. Each authority and governmental agency

incorporated under Act No. 55 of the Public Acts of 1963 shall have

the exclusive jurisdiction to determine its own contemplated

routes, hours of service, estimated transit vehicle miles, costs of

public transportation services, and projected capital improvements

or projects within its service area.1963 PA 55, MCL 124.351 to

124.359.

     (b) An authority incorporated under the metropolitan

transportation authorities act of 1967, Act No. 204 of the Public

Acts of 1967, as amended, being sections 124.401 to 124.426 of the

Michigan Compiled Laws, 1967 PA 204, MCL 124.401 to 124.426, or

that operates a transportation service pursuant to an interlocal

agreement under the urban cooperation act of 1967, Act No. 7 of the

Public Acts of the Extra Session of 1967, as amended, being

sections 124.501 to 124.512 of the Michigan Compiled Laws.1967 (Ex

Sess) PA 7, MCL 124.501 to 124.512.

     (c) Operating under a contract entered into pursuant to Act

No. 8 of the Public Acts of the Extra Session of 1967, being

sections 124.531 to 124.536 of the Michigan Compiled Laws, under

1967 (Ex Sess) PA 8, MCL 124.531 to 124.536, or Act No. 35 of the

Public Acts of 1951, being sections 124.1 to 124.13 of the Michigan

Compiled Laws.1951 PA 35, MCL 124.1 to 124.13.

     (d) An authority incorporated under the public transportation

authority act, Act No. 196 of the Public Acts of 1986, being

sections 124.451 to 124.479 of the Michigan Compiled Laws, or a

1986 PA 196, MCL 124.451 to 124.479.

     (e) A regional transit authority created under the regional

transit authority act, 2012 PA 387, MCL 124.541 to 124.558.

     (f) A nonprofit corporation organized under the nonprofit

corporation act, Act No. 162 of the Public Acts of 1982, being

sections 450.2101 to 450.3192 of the Michigan Compiled Laws, 1982

PA 162, MCL 450.2101 to 450.3192, and as defined by sections

501(c)(3), (4), (19), or (23) of the internal revenue code of 1986,

that provides 1 or both of the following transportation services: .

     (i) Services that are restricted only to registered members of

the nonprofit corporation.

     (ii) Services that are funded under 1951 PA 51, MCL 247.651 to

247.675, through programs administered by the department.

(g) (e) An authority financing public improvements to

transportation systems under the revenue bond act of 1933, Act No.

94 of the Public Acts of 1933, being sections 141.101 to 141.140 of

the Michigan Compiled Laws.1933 PA 94, MCL 141.101 to 141.140.

     (h) A motor carrier that operates motor vehicles only for the

purpose of transporting passengers to and from funerals.

     (i) A motor carrier that operates a motor vehicle that is

owned or leased by or on behalf of an employer to transport its

employees to and from their place of employment.

     (j) A public or private school or a unit of government that

owns or operates a school bus, or a privately owned school bus that

is under contract with a school district, an independent school

district, or a private or charter school, when that bus is used

solely for the transportation of pupils to or from school, school-

related events, or other uses as provided under the pupil

transportation act, 1990 PA 187, MCL 257.1801 to 257.1877.

     (k) A vehicle operated by a canoe or other watercraft,

bicycle, or horse livery that is used only to transport clients

between their primary business location and the launch or

disembarkment location.

     (l) An interstate motor carrier of passengers operating under

a United States Department of Transportation, Federal Motor Carrier

Safety Administration (USDOT-FMCSA) certificate of authority,

unless required by the department as a condition of financial

assistance.

     (2) A motor carrier of passengers that is exempt under

subsection (1) shall operate under the requirements of this act

when operating outside of the political subdivisions permitted by

the authorizing statute or the contract required by the authorizing

statute.exemptions described in subsection (1).

     Sec. 5. A motor carrier of passengers shall not operate a

motor bus for the transportation of persons for hire on a public

highway in this state except in accordance with this act. A motor

carrier of passengers shall not operate upon a public highway

without first having obtained from the department a certificate of

an authority. A motor carrier shall register its roster with the

department, and all vehicles on the roster shall comply with the

provisions of this act.

     Sec. 7. (1) The department shall issue without a hearing a

certificate of an authority to a motor carrier of passengers

authorizing that carrier to provide transportation services subject

to the jurisdiction of the department under this act, if the

department finds pursuant to section 9(1) that the motor carrier is

fit, willing, and able to provide the transportation service

authorized by the certificate of authority and to comply in

compliance with this act. , and if the applicant presents evidence

of the acquisition of personal injury protection and property

damage liability insurance as required by section 9(2). The

department may attach terms or conditions to the exercise of the

privilege granted by a certificate of an authority terms or

conditions as the department considers appropriate.

     (2) An application for an authority is not complete unless the

applicant has complied with all applicable provisions of this act

and with the application requirements of the department. If an

applicant fails to comply with the application requirements of the

department and fails to correct its noncompliance within 60 days

after the initial application date, the application shall be

canceled and any application fees paid by the applicant are

forfeited.

     (3) The department shall not issue or renew an authority to a

motor carrier if the motor carrier owes outstanding fees to the

department.

     (4) An authority covers a motor carrier and the authorized

vehicles listed on the roster of the motor carrier. A motor carrier

and at least 1 vehicle on its roster shall remain in good standing

during the time period covered by the authority or the authority is

automatically revoked. To remain in good standing as required by

this subsection, a motor carrier shall do all of the following:

     (a) Submit an accurate roster to the department and notify the

department of any changes to the roster.

     (b) Pay all fees by the due date.

     (c) Maintain insurance for each authorized vehicle on the

roster.

     (d) Ensure that each authorized vehicle on the roster complies

with the inspection requirements of this act.

     (5) If the department denies an application for an authority,

the department shall notify the applicant of the denial in writing

and the reasons for the denial. An applicant whose application is

denied may, within 30 days after the date of the denial, correct

any deficiency in the application and reapply for an authority

without payment of an additional application fee.

     Sec. 9. (1) In determining the fitness, willingness, and

ability eligibility of an applicant for a certificate of an

authority to provide transportation service, the department shall

consider all of the following: before issuing the original

certificate of authority:

     (a) The applicant's safety record.Whether the applicant has

paid the required fees under section 17.

     (b) The Whether the character and condition of each motor bus

and whether on the applicant's roster is such that it may be

operated safely upon the public highways based on an inspection

conducted by the department under section 16.in accordance with

this act.

     (c) The applicant's financial ability to provide continuous

Whether the applicant has proof of insurance coverage as required

by subsection (2) or (3) and to have adequate financial resources

in order to pay for damage claims against the applicant.section 10.

     (d) Whether the applicant has provided the department with

details of any fixed route service that the applicant will provide

in this state, if applicable.

     (e) Whether the applicant has met all other requirements of

this act.

     (2) An applicant shall acquire the following liability

insurance coverage for acts or omissions of the applicant as a

motor carrier of passengers:

     (a) Bodily injury and property damage liability insurance with

a minimum combined single limit of $5,000,000.00 for all persons

injured or for property damage.

     (b) Personal protection insurance and property protection

insurance as required by chapter 31 of the insurance code of 1956,

1956 PA 218, MCL 500.3101 to 500.3119. A motor common carrier of

passengers shall maintain the insurance described in this

subsection as a condition of maintaining a certificate of authority

issued under this act.

     (3) The insurance requirements of subsection (2) are waived if

the applicant qualifies for and obtains a certificate of self-

insurance from the commissioner of the office of financial and

insurance regulation under section 3101d of the insurance code of

1956, 1956 PA 218, MCL 500.3101d.

     (4) An applicant that does not satisfy subsection (1) and

either subsection (2) or subsection (3) shall not be issued a

certificate of authority to provide transportation service under

this act.

     (2) The department shall not issue an authority to an

applicant that does not meet the eligibility requirements described

in subsection (1).

     Sec. 10. (1) An applicant shall acquire the following

liability insurance coverage for acts or omissions of the applicant

as a motor carrier:

     (a) For buses with a seating capacity of between 9 and 15

passengers, including the driver, bodily injury and property damage

liability insurance with a minimum combined single limit of

$1,500,000.00 for all persons injured or for property damage.

     (b) For buses with a seating of 16 or more passengers,

including the driver, bodily injury and property damage liability

insurance with a minimum combined single limit of $5,000,000.00 for

all persons injured or for property damage.

     (c) Personal protection insurance and property protection

insurance as required by chapter 31 of the insurance code of 1956,

1956 PA 218, MCL 500.3101 to 500.3179.

     (2) A motor carrier shall maintain the insurance coverage

described in subsection (1) as a condition of maintaining an

authority issued under this act. For each authorized seasonal

vehicle, a motor carrier shall maintain the insurance coverage

described in subsection (1) during the approved seasonal period.

     (3) The insurance requirements of subsection (1) are waived if

the applicant qualifies for and obtains a certificate of self-

insurance from the commissioner of the office of financial and

insurance services under section 3101d of the insurance code of

1956, 1956 PA 218, MCL 500.3101d.

     (4) Except as otherwise provided in this act, if a motor

carrier cancels the insurance coverage required under this section

for any reason or if the coverage level falls below the levels

provided in subsection (1), the authority issued to that motor

carrier is automatically revoked.

     (5) A motor carrier shall grant notification rights to the

department for all insurance policies required under this act to

ensure that the department is notified of all activities related to

the policy, including cancellation and replacement.

     Sec. 15. The department shall issue a certificate of authority

as provided in this act to a motor common carrier of passengers who

holds either a valid permit as a contract motor carrier of

passengers or a valid certificate of authority as a common motor

carrier of passengers under the motor carrier act, Act No. 254 of

the Public Acts of 1933, as amended, being sections 475.1 to 479.49

of the Michigan Compiled Laws, on the day immediately before the

effective date of this act, without making the determination

Senate Bill No. 392 as amended December 7, 2016

required by section 9(1) if the department determines that the

carrier has met the insurance requirements of section 9(2). [Except as

otherwise provided in this section, each] bus

on a motor carrier's roster shall display the motor carrier's legal

name or assumed name as listed on its application for authority or

official request for name change as submitted to the department and

primary telephone number on both sides of the bus in a color that

is in sharp contrast to the background color and in a size that is

visible from a distance of at least 50 feet. The display required

under this section shall meet the vehicle identification

requirements of 49 CFR parts 390 to 399. [A school bus is not required to

display a primary telephone number.]

     Sec. 16. (1) Each To maintain authorized status for a bus, a

motor carrier of passengers who holds a certificate of authority

issued under this act shall permit the department to inspect each

motor bus once annually, or more frequently if necessary to

determine the current character and condition of the motor

bus.shall ensure that the bus passes a valid inspection as provided

in this section and that the condition of the bus is maintained

between inspections.

     (2) Each motor bus operated by the motor carrier of passengers

under its certificate of authority shall pass the safety inspection

which meets the department's specifications for safe operating

character and condition for the renewal of certificate.

     (2) Beginning on January 1, 2017, for an inspection of a bus

to be a valid inspection, all of the following shall be satisfied:

     (a) An inspection has been scheduled at the department's

convenience.

     (b) The inspector of the bus indicates on an inspection report

Senate Bill No. 392 as amended December 7, 2016

prepared by the department that the bus has passed the inspection

before the expiration of the previous inspection.

     (c) If the inspection is of a seasonal bus, the inspection

occurred no earlier than 30 days before the beginning of the

approved seasonal period for that bus.

[(d) The department shall accept an inspection conducted by the department of state police if that inspection meets the requirements of this act.]

     (3) A motor bus that does not pass a required departmental

have a valid inspection under this section shall not be operated

over the public highways of this state.

     (4) A motor carrier is subject to all of the following

penalties for each bus that does not have a valid inspection as

required by this section:

     (a) A motor carrier shall be assessed a fee of $250.00 for

each inspection that is conducted between 1 and 30 days late, and a

fee of $500.00 for each inspection that is conducted 31 or more

days late. This fee shall be in addition to any fee assessed under

subdivision (b). The department may waive the fee provided for in

this subdivision if the late inspection was primarily caused by the

schedule of the safety inspector. A vehicle that fails an

inspection is subject to the late inspection fees described in this

subdivision.

     (b) The motor carrier shall be assessed a $100.00 reinspection

fee for each inspection after an initial failed inspection until

the vehicle passes or is permanently removed from service.

     (c) A motor carrier that is assessed a reinspection fee under

subdivision (b) shall pay the reinspection fee before the

department conducts the reinspection on the vehicle for which the

reinspection fee was assessed.

(5) (4) Instead of an inspection by the department under

subsection (1), an applicant for a certificate of authority or a

renewal of a certificate of authority (2), a motor carrier may, no

later than the end of the month in which the inspection expires,

provide evidence of a current year motor bus inspection by a state,

district, or province, or local municipality that has standards

comparable to the federal motor carrier safety periodic inspection

standards and that has been approved by the department. The

department shall may issue a list of the states, districts, or

provinces, and local municipalities that have standards comparable

to the federal standards promulgated under 49 C.F.R. CFR part 396.

     (6) A motor carrier shall maintain a copy of a current valid

inspection report on board each bus at all times, and the report

shall be made available for review upon demand by an authorized

federal, state, or local official.

     (7) If the department has reasonable cause to believe that a

bus is unsafe for operation or has not been inspected as required

by this act or rules promulgated under this act, a department

safety inspector may inspect the bus. If the bus is not in

compliance with this act, the department may require the motor

carrier to place the bus out of service until all violations have

been corrected or eliminated.

     (8) Upon satisfactory completion of a valid inspection of a

bus as required by this act and payment of all required fees by the

motor carrier, the department shall issue a decal indicating the

expiration date of the inspection for that bus. A decal issued

under this subsection is property of this state. A motor carrier

shall not use a bus displaying an expired decal to provide for-hire

passenger service.

     (9) A motor carrier shall not operate a bus over the public

highways of this state if that bus does not have a properly

displayed current decal issued by the department under subsection

(8).

     (10) The department may require a motor carrier to return a

decal issued under subsection (8) to the department if the bus upon

which that decal was displayed is removed from the motor carrier's

roster by the department or the motor carrier. A motor carrier that

fails to return a decal within 30 days after a request by the

department shall pay a $50.00 fee.

     (11) The department may waive the inspection and renewal

requirements of this act for a bus that is not being used in this

state for a motor carrier that is located outside of this state if

the motor carrier submits a roster that indicates which of its

vehicles will be used exclusively outside of this state for at

least 1 year. The roster must be submitted before the affected

vehicle ceases to comply with this act. The motor carrier may put

the bus back into service in this state after at least 1 year by

submitting a revised roster and complying with all other provisions

of this act.

     (12) Until the department conducts an inspection as provided

in this act, or January 1, 2018, whichever is later, an inspection

that was conducted and passed in accordance with this act or the

limousine transportation act, 1990 PA 271, MCL 257.1901 to

257.1939, before January 1, 2017 shall be considered a valid

inspection.

     Sec. 17. (1) An applicant for an original annual authority

shall pay to the department a filing fee of $300.00 and a fee of

$100.00 times the number of buses to be used by the applicant to

provide transportation for hire under this act. The applicant shall

submit its roster to the department at the time of payment.

     (2) (1) Each An authority issued under this act expires on

March 1 of each year. No later than the last day of February each

year, a motor carrier of passengers who that holds a certificate of

an authority issued under this act shall pay to the department an

annual renewal fee equal to $25.00 $100.00 times the number of

motor buses used exclusively by the carrier to provide

transportation of passengers for hire and that meet the annual

renewal inspection requirements of section 16. An annual renewal

fee of $500.00 shall be paid for any motor bus not meeting the

annual renewal inspection requirement of section 16.subject to this

act. The motor carrier shall submit its roster to the department at

the time of payment. The department may require a carrier to submit

additional documentation as part of the annual renewal process to

ensure compliance with this act.

(3) (2) A motor carrier of passengers who that holds a

certificate of an authority issued under this act to provide

transportation for hire that wishes to have additional buses

authorized under its authority between annual renewal periods shall

pay to the department a fee of $25.00 per motor bus for each

additional motor bus acquired during the year for the purpose of

the current year inspection required by section 16.$100.00 times

the number of buses being added to its roster. The motor carrier

shall submit its updated roster to the department at the time of

payment. A motor carrier shall ensure that each bus added to a

roster under this subsection complies with all requirements of this

act.

     (3) All certificates granted by the department terminate on

the last day of February of each year unless renewed on or before

that date with payment of the fee prescribed by subsection (1). The

certificate of any motor carrier of passengers who is delinquent in

payment of fees required to be paid by this section is canceled and

revoked on or after March 1 of the year for which renewal should

have been made pursuant to the requirements of this section, and

the motor carrier of passengers shall be prohibited from operating

any of its vehicles upon or over the highways of this state. All

privileges granted the motor carrier of passengers under the

expiring certificate shall cease.

     (4) The authority of a motor carrier that does not comply with

this section shall be automatically revoked on March 1, and the

motor carrier must apply for and be issued a new authority before

resuming service.

     Sec. 27. (1) A motor carrier of passengers holding a

certificate of an authority for regular route service between

points within this state may apply shall notify the department in

writing no less than 60 days before it plans to discontinue all or

a portion of its service under this certificate of its authority.

by filing written application with the department, payment of the

fees described in section 25, and within Within 10 days after

filing notifying the application publish department, the carrier

shall post notice of the application once a day for 2 different

days in a newspaper of general circulation published in each county

to which the service proposed to be discontinued extends. Within 20

days after the last date of publication, any person opposing the

application shall file written notice of protest with the

department. If the application is not opposed, the motor carrier of

passengers holding a certificate of authority may immediately

discontinue the service. If the application is opposed, the

department, within 20 days, may conduct a hearing on the

application, with at least 10 days' notice to all interested

parties.discontinuation of service on its website and in all

ticketing locations.

     (2) The department shall grant an application for authority to

discontinue if the applicant demonstrates that intrastate revenue

per mile derived from the route or routes proposed to be

discontinued is less than the fully allocated cost per mile

including depreciation. If the department's final determination on

the application is not issued within 90 days after the last date of

publication, the applicant may discontinue the service described in

the application.

     (3) A motor carrier of passengers holding a certificate of

authority for service within this state other than regular route

service may apply to discontinue all or a portion of its service

under this certificate of authority by filing written application

with the department and payment of the fees as described in section

25.

     Sec. 29. (1) A motor carrier of passengers authorized to

provide transportation regular route service under this act shall

not abandon or discontinue a service established under this act

without the approval of notification to the department , except, if

applicable, as provided in section 27(2). as described in section

27. If a motor carrier of passengers discontinues service for more

than 10 days without the previous approval of notification to the

department, authorizing the discontinuance, the certificate of

authority issued to that carrier shall be considered automatically

revoked without any further action upon the part of by the

department.

     (2) If the insurance coverage required under this act is

canceled for any reason, the certificate of authority issued to

that carrier shall be considered revoked without any further action

by the department.

     Sec. 32. (1) A police officer or a peace officer may seize and

impound a vehicle that is operated by a motor carrier in violation

of this act or a rule promulgated by this act or is in such a

condition that the continued operation of the vehicle upon the

highway would constitute an immediate hazard to the public. Upon

impoundment, the vehicle is subject to a lien, subordinate to a

prior lien of record, in the amount of any fine, costs, and damages

that the defendant may be ordered to pay under this act. Upon

impoundment, a notice shall be sent to the owner and

any lienholder of record as kept by the secretary of state of the

vehicle that the vehicle is available for pickup by the owner

or lienholder of record as kept by the secretary of state. The

notice shall be accompanied by an invoice for any outstanding

charges imposed under this act. The notice shall inform the owner

and any lienholder of record as kept by the secretary of state that

the owner and lienholder of record as kept by the secretary of

state have 30 days from the date of the notice and upon payment of

applicable charges to pick up the impounded vehicle. A notice under

this subsection shall be sent by the agency authorizing the

impoundment of the vehicle to the applicable address on record with

the secretary of state by certified mail or by another commercially

available delivery service providing proof of delivery. The

defendant or a person with an ownership interest in the vehicle may

post with the court a cash or surety bond in the amount of $750.00.

If a bond is posted, the vehicle shall be released from

impoundment. The vehicle shall also be released, and the lien shall

be discharged, upon a judicial determination that the defendant is

not responsible for a violation of this act or upon payment of the

fine, costs, and damages. Additionally, if the defendant is

determined to be not responsible for the violation of this act, the

court shall assess against the governmental entity bringing the

action costs, payable to the defendant, for any damages that the

defendant has sustained due to the impoundment of the vehicle.

     (2) If the court determines that the defendant is responsible

for the violation of this act and the defendant defaults in the

payment of any fine, costs, or damages, or any installment, as

ordered under this section, a bond posted under subsection (1)

shall be forfeited and applied to the fine, costs, damages, or

installment. The court shall certify any remaining unpaid amount to

the attorney for the governmental entity bringing the action. If

the owner or lienholder of record as kept by the secretary of state

does not pick up the vehicle within the 30-day period described in

subsection (1), the vehicle may be sold by foreclosure sale. The

foreclosure sale shall be conducted in the manner provided and

subject to the same rights as apply in the case of execution sales

under sections 6031, 6032, 6041, 6042, and 6044 to 6047 of the

revised judicature act of 1961, 1961 PA 236, MCL 600.6031,

600.6032, 600.6041, 600.6042, and 600.6044 to 600.6047.

     (3) Not less than 21 days before a foreclosure sale under

subsection (2), the attorney for the governmental entity bringing

the action shall by certified mail send written notice of the time

and place of the foreclosure sale to the owner and any lienholder

of record as kept by the secretary of state. In addition, not less

than 10 days before the foreclosure sale, the attorney shall twice

publish notice of the time and place of the foreclosure sale in a

newspaper of general circulation in the county in which the vehicle

was seized. The attorney for the governmental entity bringing the

action shall provide the buyer and the secretary of state with a

copy of the proof of notice under this subsection to the owner and

lienholder of record as kept by the secretary of state, and a bill

of sale. The secretary of state shall use the documentation

provided to issue the appropriate certificate of title. The

proceeds of the foreclosure sale shall be distributed in the

following order of priority:

     (a) To discharge any lien on the vehicle that was recorded

prior to the creation of the lien under subsection (1).

     (b) To the clerk of the court for the payment of the fine,

costs, and damages, that the defendant was ordered to pay.

     (c) To discharge any lien on the vehicle that was recorded

after the creation of the lien under subsection (1).

     (d) To the owner of the vehicle.

     (4) The department may use any and all available legal and

equitable remedies of a civil nature to enforce this act, an order

issued, or a rule promulgated pursuant to this act. The department

may employ such experts, assistants, inspectors, and other

personnel as may be necessary subject to civil service rules, to

enable it to administer and enforce this act. An employee of the

department shall not ask for or receive any fee from a person for

the taking of acknowledgments or any other service. State and local

police officers shall enforce this act and the rules promulgated

pursuant to this act. A police officer or a peace officer may

arrest, on sight or upon warrant, any person found violating or

having violated a provision of this act or a rule promulgated

pursuant to this act. The attorney general of the this state and

the prosecuting attorneys of the counties of this state shall

prosecute all violations of this act. When A violation of this act

is violated, the offense may be prosecuted in any jurisdiction in

or through which a motor the bus implicated was present at the time

of the violation.

     Sec. 33. A Notwithstanding any other provision of this act, a

person subject to this act who operates a passenger service without

obtaining a certificate of an authority required under this act or

without meeting the insurance requirements provided in this act

shall be subject to a civil fine of not more than $500.00. Each

violation constitutes a separate offense.

     Sec. 34. A motor carrier, of passengers, or an officer or

agent of a motor carrier, of passengers, who that requires or

permits a driver or operator to drive or operate a motor bus in

violation of this act, or a rule promulgated under this act, is

guilty of a misdemeanor, punishable by responsible for a state

civil infraction and may be ordered to pay a civil fine of not more

than $500.00. , or by imprisonment for not more than 90 days, or

both.

     Sec. 35. The department may alter, suspend, or revoke a

certificate of an authority issued under this act if the department

determines in a contested case hearing held pursuant to under

chapter 4 of the administrative procedures act of 1969, Act No. 306

of the Public Acts of 1969, as amended, being sections 1969 PA 306,

MCL 24.271 to 24.287, of the Michigan Compiled Laws, that a person

motor carrier to whom a certificate of which an authority has been

issued has willfully violated or refused to comply with this act.

If a motor carrier is found operating a bus for the transportation

of persons after its authority has been revoked under this section,

the department may compel compliance with this act by proceedings

in mandamus, injunction, or other appropriate civil remedy. The

proceedings described in this section may be brought in any county

in which the alleged violator may be sued or in Ingham County

circuit court.

     Sec. 39. The department may promulgate rules to implement this

act pursuant to under the administrative procedures act of 1969,

Act No. 306 of the Public Acts of 1969, as amended, being sections

1969 PA 306, MCL 24.201 to 24.328. of the Michigan Compiled Laws.

     Enacting section 1. Sections 6, 11, 13, 21, 25, 31, and 41 of

the motor bus transportation act, 1982 PA 432, MCL 474.106,

474.111, 474.113, 474.121, 474.125, 474.131, and 474.141, are

repealed.

     Enacting section 2. This amendatory act takes effect 90 days

after the date it is enacted into law.

     Enacting section 3. This amendatory act does not take effect

unless all of the following bills of the 98th Legislature are

enacted into law:

     (a) House Bill No. 4637.

     (b) House Bill No. 4639.

     (c) House Bill No. 4640.

     (d) House Bill No. 4641.