Legislative Committee Report

The Legislative Committee met May 10, 2010 and reviewed several pieces of legislation and took the following action:

• It was moved and supported to oppose HB 5725 through HB 5730 as introduced.
• It was moved and supported to oppose HB 6060 and HB 6061.
• It was moved and supported to take no position on SB 1069 if two proposed amendments are adopted.
• It was decided to table action on expanding quick clearance legislation to indemnify towers at this time.
• It was decided to remove from further committee action at this time discussion regarding the creation of a process for the disposal of abandoned watercraft.
• It was decided to explore legislation to prohibit predatory towing.
• It was decided to add legislation to modify the advertising of aban auctions to the list of legislative priorities.
• The committee agreed to try and meet more frequently and primarily via conference call.

Public Act 10 of 2010: Quick Clearance

The Act bill amends the Michigan Vehicle Code to permit law enforcement to issue a misdemeanor citation to motorists who fail to move their disabled vehicles from the roadway if the vehicle can be safely operated and the disablement has not caused death or serious injury to a person. On May 10, 2010, the Legislative Committee discussed the new Public Act and decided to table further action at this time and revisit this issue next session if there is a need.

House Bills 5725-5730: Vehicle Seizures

A five-bill package addressing the release of vehicles that have been seized was introduced the last day of session in 2009. The bills specify that vehicle seized as forfeitures under a state law or local ordinance must be released within 7 days and any forfeiture fees and impound fees must be waived if the person is not subsequently charged with a crime, is acquitted of committing a crime or is found not guilty of committing the crime. These bills are in reaction to a recent Detroit Free Press story about the large increase in the number of vehicle forfeitures in the southeast Michigan region. The bill sponsors are as follows: Reps. Gabe Leland (D-Detroit), Bettie Cook-Scott (D-Detroit), Tim Melton (D-Pontiac), and Doug Geiss (D-Taylor). Status: The bills were introduced on December 21, 2009 and were referred to the House Judiciary Committee. Similar bills were introduced in the Senate as well (Senate Bills 1212-1217 introduced by Sen. Tupac Hunter (D-Detroit). I have reached out to the bill sponsors and the Committee chair to discuss concerns that the MTA has with these bills. I continue to monitor these bills very closely. On May 10, 2010, the Legislative Committee discussed the bills in detail and adopted a position opposing the bills as introduced. The bill sponsor was slated to meet with the committee and cancelled that morning. However, he has committed that he will not move the bills until we meet to discuss the legislation.

House Bill 6060-6061: Eliminates Licensing Requirements for Salvage Auctions

Introduced by Rep. Marty Knollenberg (R-Troy), the bills eliminate the requirement that purchasers of salvage or scrap vehicles be licensed by the Secretary of State if the purchaser is licensed by another state and the vehicle is to be taken out of state. In-state purchasers would still have to be licensed by the state. The bills were introduced on April 22, 2010 and were referred to the House Regulatory Reform Committee. The Legislative Committee reviewed the bills and adopted a motion to oppose the bills as introduced.

Senate Bill 1069: Prohibits Excessive Idling

Introduced by Senator Ray Basham (D-Romulus), the bill would prohibit the operator of a commercial diesel vehicle from idling more than 30 minutes while loading or unloading or more than 5 minutes in any 60-minute period unless it meets one of a number of exemptions. Some of those exemptions include: idling of emergency vehicles in use during an emergency; idling for engine diagnostic or repair purposes; idling is necessary to operate vehicle equipment. Status: The bill was introduced on January 20 and was referred to the Senate Transportation Committee. The Legislative Committee reviewed the bill and with two amendments agreed to take no position.

House Bill 4400: Court Assessment on Abans

Introduced by Rep. Andrew Kandrevas (D-Southgate), the bill directs the court to assess a $25 fee to each vehicle owner who is issued a citation under MCL 257.252a. The fee would be directed to the jurisdiction of the police agency that issued the ticket. Status: The bill passed the House 110-0 and was referred to the Senate Transportation Committee. I continue to press Senator Gilbert to take the bill up in the Senate Transportation Committee and he has told me that he intends to take the bill up in Spring 2010.

Revisions to the TR-52 Forms

As previously reported, the Legislative Committee met with Cherie Price from the Secretary of State’s office to discuss possible revisions to the TR-52. Some of the proposed changes included: inserting text on the front of the notice sent to vehicle owners clearly stating that they are responsible for towing/storage regardless of whether they obtain the release of the vehicle or not; clarify the rights of the lien holder; and, clarify the rights of the lessor. Status: The revised forms which incorporated the MTA’s suggested changes were distributed at the March 2010 meeting.

House Bills 5768-5770: Motor and Diesel Fuel Tax Increases

House Bill 5768, introduced by Rep. Dick Ball (R-Owosso), amends the Motor Fuel Tax Act to increase the current tax on motor fuel from 19-cent per gallon tax to 23 cents per gallon (a 4-cent per gallon increase) effective March 1, 2010. The 23-cent per gallon rate would be effective through December 31, 2012 (34 months). Effective January 1, 2013, the rate would increase by an additional 4 cents per gallon, to 27 cents per gallon. House Bill 5769, introduced by Rep. Pam Byrnes (D-Lyndon Twp.) amends the Motor Carrier Fuel Tax Act to increase the current 15-cent per gallon tax on diesel motor fuel to 21 cents per gallon (a 6-cent per gallon increase) effective March 1, 2010. The increase would be effective through December 31, 2012 (34 months). The rate would increase by another 6 cents per gallon, to 27 cents per gallon, effective January 1, 2013. House Bill 5770, introduced by Rep. Dick Ball, adds language that prohibits use of revenue from any increase in fuel tax revenue after January 1, 2010 for any purpose other than road and bridge construction or maintenance. Status: The bills were introduced on January 28, 2010 and were referred to the House Transportation Committee where their fate is uncertain. Michigan is facing a serious deficit in transportation funding putting matching federal road money at risk. The disagreement is over the size of the deficit. On the small side, some argue that minimally, Michigan needs to raise an additional $78 million for the Michigan Transportation Fund (MTF) to preserve the maximum in federal matching funds. Without the additional $78 million, Michigan stands to lose nearly $600 million in federal funding this year and beyond. However, others argue that $78 million is the tip of the iceberg and that Michigan’s roads are in terrible condition. These groups argue that Michigan needs approximately $1.8 Billion to improve the aging infrastructure of our roads. When fully implemented, HBs 5768 and 5769 will raise an additional $675 million for the MTF.

House Bill 5897: Vehicle Registration Fee Increases

Introduced by Rep. George Cushingberry (D-Detroit), the bill increases the annual fee for registering motor vehicles by 90 percent over four years. The cost of a wrecker plate would be increased 20 percent over four years. The money raised would be earmarked to the Michigan Transportation Fund (MTF). Status: The bills were introduced on February 24, 2010 and were referred to the House Transportation Committee where its fate is uncertain.

Senate Bills 862-863: Diesel Fuel Tax Increase

Introduced by Sen. Jud Gilbert, the bills would increase the diesel fuel tax by 4-cents per gallon. An estimated $36 million would be raised by increasing the diesel fuel tax from 15 to 19 cents. This is the same rate levied on gasoline. The revenue generated is dedicated to statewide critical bridge repairs. Status: The bills were reported from the Senate Transportation Committee and have been stalled on the Senate floor since early December.

Charitable Gaming License

The long anticipated TRAA letter was finally received and the raffle application was submitted to the Michigan Lottery in late December. Assuming the application is approved, the date of the raffle is Friday, July 16, 2010 in Gaylord at BJs Restaurant. The prizes are as follows: Grand Prize is $2000, second prize is $400 and third prize is $100. The ticket price is $1 per ticket.

AAA Second Tow Policy

We continue to gather information regarding a recent communication from AAA to their DRP facilities requiring them to use Quest to perform the second tow. The communication further indicates that AAA will refuse to reimburse any DRP facility for the second tow unless it was performed by Quest. I explored this policy with the Office of Financial and Insurance Regulation (OFIR) to see if it violates the "anti-steering" provisions of the Insurance Code. Status: At this point, the policy does not seem to violate any statute. However, we want to be kept informed of any DRP facility that is denied reimbursement as we may want to encourage them to file a complaint with OFIR to allow for a more formal review of the policy.

SOS Interpretive Guidance on Abandoned Watercraft

I have had preliminary discussions with the Secretary of State’s office regarding the issuance of interpretive guidance on how watercraft should be handled under the provisions of MCL 257.252. Currently, watercraft does not meet the definition of a "vehicle" under the code. However, trailers are considered vehicles and are therefore processed in the same way as vehicles. Under MCL 257.252g, the statute indicates how an abandoned vehicle and its contents shall be auctioned at a public sale. At issue is whether a boat on a trailer is considered "contents" and can therefore be auctioned off under MCL 257.252g. After review of the pertinent statutes, it is my opinion that "non-trailered" watercraft would fall under the general abandoned property provisions of one of the following: P.A. 54 of 1959, P.A. 214 of 1979, or P.A. 238 of 1957. Status: The legal counsel for the Secretary of State concurred with my belief that boats could be disposed as abandoned property under MCL 434.181. There seems a reluctance to agree that boats qualify as "contents" for purposes of the auction. Additionally, she shared our concern that auctioning off a trailer with a boat without notifying the owner (or lienholder) could land someone in court. I returned this matter to the Legislative Committee for further guidance and at the May 10, 2010 committee a motion to table further action was adopted.

SB 629: Allows Recovery of Rental Car Fees

Introduced by Sen. Mickey Switalski (D-Roseville), the bill allows for the reimbursement of rental car fees under the mini-tort provisions of the Michigan Insurance Code. The bill does not increase the mini-tort from the current level of $500. Status: The bill was referred to the Senate Economic Development and Regulatory Reform Committee where no action has yet to occur. I met with the Committee Chair to express our opposition.

House Bill 4329: Increases Mini-Tort

Introduced by Rep. Tim Melton (D-Pontiac), the bill increases the amount of the mini-tort under the auto no-fault law from $500 per occurrence to $1,000 per occurrence. Status: The bill was referred to the House Insurance Committee where no action has yet to occur. I have discussed our opposition with the Committee Chair several times.

House Bill 5631: Eliminates Mini-Tort