HB 5356: Vehicles: title; requirements for transfer of title by a dealer; provide for. Amends 14, 41a, 78, 217, 217c, 233, 233a, 233b, 234, 238, 239, 240, 248, 248a, 248j, 249, 250, 258, 801b, 806 & 810a of 1949 PA 300 (MCL 257.14 et seq.) & adds sec. 9b. - Michigan

Substitute (H-4) → Substitute (H-2) - 3 · 3 edits

MINOR

HB 5356 adds a new Section 24b defining 'late model vehicle' with specific weight and age thresholds, and makes minor language corrections in Section 217c regarding salvage and scrap title requirements. The new definition sets different model-year windows depending on whether the vehicle weighs 8,000 pounds or less (5 or 8 prior model years) or over 8,000 pounds (15 or 18 prior model years). Most other changes in the diff are formatting and indentation adjustments.

DEFINITION

New Section 24b defines 'late model vehicle' as a vehicle weighing 8,000 pounds or less manufactured in the current model year or the 5 (amended from 8) model years immediately preceding, or if over 8,000 pounds, manufactured in the current model year or the 15 (amended from 18) model years immediately preceding. This definition affects which vehicles are subject to salvage and scrap title requirements under Section 217c.

REQUIREMENT

In Section 217c(2)(a), language was changed between 'must' and 'shall' in two places: the owner's obligation to assign the certificate of title to the insurance company, and the requirement that a salvage or scrap certificate be assigned to the buyer. These are clarifying edits to make the mandatory language consistent.

TECHNICAL

In Section 217c(3), 'upon' was changed to 'on' (or vice versa) in the phrase describing when the secretary of state shall issue a certificate of title free of liens upon meeting the subsection's requirements.

Substitute (H-2) - 2 → Substitute (H-4) · 1 edit

MINOR

The H-4 substitute removes the amendment to section 24b (definition of 'late model vehicle') from the bill. In H-2, the bill would have expanded the 'late model vehicle' definition by increasing the number of model years covered from 5 to 8 for vehicles under 8,000 pounds and from 15 to 18 for vehicles over 8,000 pounds. All other visible changes are formatting and line-numbering artifacts from re-pagination.

Scope change

The bill's scope narrowed by dropping the proposed expansion of the 'late model vehicle' definition, which would have affected how insurance companies and dealers handle salvage and scrap title requirements for a broader range of vehicles by model year.

DEFINITION

The amendment to section 24b defining 'late model vehicle' was removed entirely. H-2 would have expanded the definition to include vehicles manufactured up to 8 prior model years (under 8,000 lbs) or 18 prior model years (over 8,000 lbs), up from 5 and 15 respectively. This expansion is no longer part of the bill in H-4.

As Passed by the House → Substitute (H-2) · 7 edits

MODERATE

The substitute bill adds a new definition for 'courtesy transportation vehicle' and excludes such vehicles from the 'used vehicle' definition, extends the deadline for dealers to apply for salvage or scrap titles from 5 to 10 days, and expands the list of entities eligible to receive salvage and scrap vehicles to include automotive recyclers and distressed vehicle transporters throughout the section. It also removes the 'older model' restriction in subsection (19) so title-surrender requirements apply to all vehicles, and simplifies the scrap vehicle inventory record-keeping requirement by removing a specific form template in favor of a format determined by the secretary of state.

DEFINITION

New section 9b defines 'courtesy transportation vehicle' as a new motor vehicle titled and registered by a dealer, used primarily for the dealer's service customers, which becomes a used vehicle after exceeding 5,000 miles.

Section 78 now excludes courtesy transportation vehicles from the definition of 'used or secondhand vehicle,' meaning these dealer loaner cars are not treated as used vehicles for titling and registration purposes until they exceed 5,000 miles.

TIMELINE

Section 217c(5) extends the deadline for a dealer to apply for a salvage or scrap certificate of title after receiving an assigned title from 5 days to not later than 10 days.

ELIGIBILITY

Throughout section 217c, 'automotive recycler' and 'distressed vehicle transporter' are added to the lists of entities eligible to receive salvage or scrap vehicles, expanding who can legally purchase these vehicles.

SCOPE

Section 217c(19) removes the 'older model' qualifier so that the requirement for dealers to receive an assigned certificate of title and retain it applies to all vehicles, not just older model vehicles.

REQUIREMENT

Section 217c(20) replaces the detailed scrap vehicle inventory form template (with specific fields for seller, purchaser, and vehicle details) with a simpler requirement that the record be made in a format determined by the secretary of state, listing only the minimum information elements required.

Section 217c(5) adds a requirement that a vehicle scrap metal processor surrender an assigned salvage or scrap certificate of title to the secretary of state within 30 days after acquiring a vehicle and report that the vehicle was destroyed or scrapped.

House Introduced Bill → As Passed by the House · 9 edits · Apr 30, 2026

MAJOR

The House passed a substitute version of HB 5356 that significantly expands the bill's scope by adding amendments to section 235 of the Michigan Vehicle Code, which governs salvage and scrap vehicle certificates. The most notable substantive changes include adding 'distressed vehicle transporter' as an eligible entity to receive salvage or scrap titles, extending the deadline for dealers to apply for salvage or scrap certificates from 5 days to 10 days after receiving an assigned title, and adding new provisions for officer certification, appeals, and criminal conviction requirements related to salvage vehicle inspections.

SCOPE

Section 235 (MCL 257.235) was added to the list of sections being amended, expanding the bill to cover salvage and scrap vehicle certificate requirements, a major addition not present in the originally introduced version.

ELIGIBILITY

The term 'distressed vehicle transporter' was added as an entity eligible to receive or be assigned a salvage or scrap certificate of title, alongside automotive recyclers, used parts dealers, foreign salvage vehicle dealers, and vehicle scrap metal processors.

TIMELINE

The deadline for a dealer to apply for a salvage or scrap certificate of title after receiving an assigned certificate was extended from 5 days to not later than 10 days after the dealer receives the assigned certificate of title.

A new requirement was added that the secretary of state must issue and mail a salvage certificate within not later than 5 business days after receiving the application at the Lansing office.

REQUIREMENT

New subsections were added to section 235 requiring that salvage certificate applications include an estimate of repair cost (parts and labor) and an estimate of the predamaged actual cash value of the vehicle.

ENFORCEMENT

New provisions were added establishing a certification system for specially trained officers who conduct salvage vehicle inspections, including grounds for suspension, revocation, or denial of certification, and an appeal process with a 30-day window and a 5-year waiting period before reapplying after revocation.

A new subsection was added stating that a person convicted of certain vehicle-related crimes under the Michigan penal code or substantially corresponding laws in another state or federal court is subject to additional restrictions.

DEFINITION

The defined term 'Used or second-hand vehicle' in section 78 was changed to 'Used or secondhand vehicle,' removing the hyphen from the compound adjective.

TECHNICAL

The bill is now designated as a 'substitute for' House Bill No. 5356, indicating it replaces the originally introduced version rather than amending it in place.

Substitute (H-2) → Substitute (H-2) - 2 · 4 edits

MODERATE

The document transitioned from a legislative committee tracking page listing multiple bills to the full text of a specific substitute amendment for HB 5356. This version introduces a new definition for 'Courtesy transportation vehicle' and clarifies the requirements for a dealer's 'established place of business' to ensure physical offices and repair facilities are present on-site.

Scope change

The scope of the bill now specifically defines how dealers must maintain their physical business premises, including requirements for office space, repair facilities, and land usage, which were not detailed in the previous committee record.

DEFINITION

A new definition for 'Courtesy transportation vehicle' was added, specifying that a vehicle used primarily for service customers becomes a 'used vehicle' after being driven more than 5,000 miles.

REQUIREMENT

Detailed requirements were added for an 'established place of business' for class (a) and (b) dealers, mandating a specific square footage for offices (150 sq ft) and land display areas (1,300 sq ft), along with specific utility and signage standards.

Requirements were added for wholesalers, specifying that books and records must be maintained in a specific office size (8x8 feet) with utilities and a restroom starting January 1, 2024, and that the premises cannot be used for vehicle display.

A new requirement mandates that dealers must have a registered repair facility on-site unless they have a written servicing agreement with a nearby registered repair facility within a 10-mile radius.

House Introduced Bill → Substitute (H-2) · 2 edits

MINOR

The document provided is a diff showing the transition of a legislative bill from its original introduction to a committee substitute version. The primary changes are the removal of the original bill text and the addition of the Michigan Legislature's website interface and navigation menus. No substantive policy, legal, or procedural changes to the bill's content were included in this specific diff.

TECHNICAL

The original bill text, including the bill title, sponsor list, and the specific legal sections being amended, was removed.

The Michigan Legislature website header, navigation links, and a table of other bills currently in committee were added.

Vehicles: title; requirements for transfer of title by a dealer; provide for. Amends 14, 41a, 78, 217, 217c, 233, 233a, 233b, 234, 238, 239, 240, 248, 248a, 248j, 249, 250, 258, 801b, 806 & 810a of 1949 PA 300 (MCL 257.14 et seq.) & adds sec. 9b.

What changed between versions

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