SENATE BILL NO. 656

November 13, 2019, Introduced by Senators IRWIN and JOHNSON and referred to the Committee on Economic and Small Business Development.

A bill to amend 1949 PA 300, entitled

"Michigan vehicle code,"

by amending sections 14, 248a, and 248d (MCL 257.14, 257.248a, and 257.248d), sections 14 and 248a as amended and section 248d as added by 2012 PA 498.

the people of the state of michigan enact:

Sec. 14. (1) Except as provided in subsections (2) and (3), "established place of business" means the place a bona fide premises that is actually occupied either continuously or at regular periods by a dealer or manufacturer; where his or her at which the dealer or manufacturer keeps its books and records; are kept and at which the dealer or manufacturer transacts a large share of his or her its business. transacted.

(2) Established place of business for For a class (a) or class (b) dealer, "established place of business" means a bona fide premises that meet meets all of the following requirements at all times during the term of the dealer's license:

(a) The premises contain, except as otherwise provided in this act, a permanently enclosed building or structure that is either owned, leased, or rented by a dealer, which the dealer; the building or structure is not a residence, tent, temporary stand, or any temporary quarters; the building or structure is continuously occupied in good faith for the purpose of selling, buying, trading, leasing, or otherwise dealing in motor vehicles; all books, records, and files necessary to conduct the business of a class (a) or class (b) dealer are maintained in the building or structure; and the building or structure houses an office of at least 150 square feet in size, equipped with standard office furniture, working utilities, a working restroom, and a working telephone listed in the name of the business on the dealer's license.

(b) The premises have land space of no not less than 1,300 square feet to accommodate the display of a minimum of 10 vehicles of the kind and type that the dealer is licensed to sell and an additional 650 square feet for customer parking.

(c) The display and customer parking areas shall be described in subdivision (b) are adequately surfaced and well-lit during business hours.

(d) (c) The premises are identified by an exterior sign displaying the name of the dealership that is permanently affixed to the building or land with letters clearly visible from a highway.the roadway.

(e) (d) The premises contain a conspicuous posting of the dealer's regular hours of operation. The posted hours shall be not less than 30 hours per week.

(f) (e) The premises contain a registered repair facility on site for the repair and servicing of motor vehicles of a type sold at the established place of business, unless the dealer has entered into a written servicing agreement with a registered repair facility at a location not to exceed 10 miles' distance from that is located within a 10-mile radius of the established place of business. If repairs are conducted pursuant to under a servicing agreement, the dealer shall conspicuously post the servicing agreement shall be conspicuously posted in the dealer's office.

(g) (f) The premises meet all applicable zoning requirements and any other applicable municipal requirements.

(3) An established For a wholesaler, "established place of business for a wholesaler shall satisfy all of the following requirements:business" means a bona fide premises that meets all of the following requirements at all times during the term of the wholesaler's license:

(a) The premises shall contain a permanently enclosed building or structure that is either owned, leased, or rented by a wholesaler, which and is not a commercial mailbox, tent, temporary stand, or other temporary quarters.

(b) All books, records, and files necessary to conduct the business of the wholesaler shall be are maintained in the building or structure described in subdivision (a).

(c) The premises shall are not be used for the display of vehicles. However, the premises may be used for the storage of vehicles purchased by the wholesaler prior to before sale to a licensed vehicle dealer.

(d) The premises shall be are identified by an exterior sign displaying the name of the wholesaler that is permanently affixed to the building or land with letters clearly visible from the roadway.

(e) The premises shall satisfy meet all applicable zoning requirements and any other applicable municipal requirements.

(f) The premises are not located within 200 feet of an established place of business of another licensed wholesaler. However, this subdivision only applies to a wholesaler that receives its initial license after January 1, 2020.

(g) The premises contain a conspicuous posting of the wholesaler's regular hours of operation.

Sec. 248a. (1) A motor vehicle dealer shall not advertise or represent a motor vehicle to be as a demonstrator, executive or manufacturer's vehicle, leased vehicle, new motor vehicle, or used or secondhand vehicle unless the vehicle so described is as defined in this act.

(2) A motor vehicle dealer shall maintain and adhere to designated business hours that are filed and file its designated business hours with the secretary of state.

(3) A class (a) or class (b) dealer shall maintain an established place of business in this state in accordance with the conditions listed in section 14(2).

(4) A class (a) or class (b) dealer shall maintain regular business hours at an established place of business that include at least 30 regular business hours on Monday through Saturday, between the hours of 7:00 a.m. and 7:00 p.m. each week.

Sec. 248d. All of the following requirements apply to a wholesaler:

(a) A wholesaler shall not advertise vehicles for sale on the internet or any classified listing unless the advertisement clearly discloses the wholesaler's license classification and clearly states that any a purchaser shall must be a licensed vehicle dealer.

(b) A wholesaler shall must buy or sell not less fewer than 24 vehicles in this state each year to retain possession of a wholesaler license.

(c) A wholesaler shall maintain an established place of business in this state that satisfies in accordance with the conditions listed in section 14(3).

(d) A wholesaler shall maintain and adhere to designated business hours that are filed and file its designated business hours with the secretary of state.

(e) A wholesaler shall maintain regular hours of operation at an established place of business that include at least 15 regular business hours on Monday through Saturday, between the hours of 7:00 a.m. and 7:00 p.m. each week.

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.