The Legislative Committee met on September 24 to discuss changes to the TR-52 forms.  Also present was Cherie Price from the Secretary of State’s office to discuss possible revisions to the TR-52.  Some of the proposed changes include: 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:  I have communicated with the SOS several times and am told that the proposed changes are still being reviewed internally.   I will continue to inquire and take a top-down approach if it is warranted.   

HB 5140: Quick Clearance Legislation

The bill amends the Michigan Vehicle Code by creating a new section requiring motorists to move disabled vehicles from the roadway if the vehicle can be safely operated and the disablement has not caused death or serious injury.  The bill permits law enforcement to ticket motorists with a civil infraction if they fail to move their vehicles to the side of the road if the vehicle can be safely operated and the accident did not result in death or serious injury. Status:  The passed the full House by a vote of 102-1.  This bill is not as broad as we were originally led to believe.   As proposed last session, the bill would have given law enforcement the ability to have vehicles "quick cleared" which could have created additional liability for wreckers.  This bill does not address that issue. 

Reintroduced at our request by Sen. Alan Sanborn (R-Richmond), the bill limits the amount of a bond that must be posted when a vehicle is overweight on two or more axles to an amount equal to the estimated fine.  Currently the statute permits collecting double the estimated fine.  This issue was brought to us by Joe Ballor.  Status:  The bill was reported unopposed from the House Transportation Committee on October 22 and is awaiting a vote by the full House.

Nothing new to report on this front.  If the MTA decides to move forward with a charitable game to raise proceeds, I will be positioned to get our license approved.  As you recall, I met last fall with the Lottery Commissioner to discuss the particulars of our issue, and he is willing to approve our application up receipt of a letter agreement between the MTA and the TRAA.  Status:  The long anticipated TRAA letter was finally received.  The letter will be submitted along with the completed raffle application, which must include the date of the raffle.  

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.

The Legislative Committee met on June 29 and established the following three short range goals:  1) Revise TR52 form to highlight vehicle owners’ responsibility for towing and storage; 2) Exempt situations when owner turns title over to custodian from the "dealer" provisions from the 5 transfers before someone must be licensed as a dealer; 3) Continue to explore processes for disposing of abandoned watercraft.  The committee also identified two long range goals: 1) Explore the creation of a state "licensing" mechanism for towers and 2) explore creating a possessory lien type situation for towers similar to the garage keepers lien.  Status:  At the July meeting, the board approved the committee objectives as outlined above.

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.  

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 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.   The SCAO has expressed concerns over the bill and its separate assessment.

SCAO Memorandum on Public Act 539 of 2008

I have been working with the State Court Administrator’s Office (SCAO) to prepare a memorandum to educate the district court administrators and judges regarding the changes to the abandoned vehicle provisions.  Status: This memorandum was released on March 19.  I have provided copies for your review.

Senate Bill 201: Sales tax on the Difference:

Introduced by Sen. Alan Sanborn (R-Richmond), the bill limits the tax assessed on a vehicle purchase to the difference between the trade-in value and the purchase price of the new vehicle.  As currently drafted, the bill includes wreckers and tow trucks.  Status:  This bill passed the Senate and was referred to the House Tax Policy Committee.

Senator Gilbert Golf Outing

A special thanks to the following members who participated in the Jud Gilbert Golf Outing:  Terry Adams, Nick Aiuto, Shane Anders, Dennis Brewer, Joel Ballor, Bill Byers, Ken Farley, Gordie Merriman, and Scott Snuverink.  Our efforts raised $1900 for Senator Gilbert’s election!  As you know, Senator Gilbert chairs the Senate Transportation Committee and has been supportive of our issues over the years.  MTA participation in the political process augments all of our legislative efforts in Lansing!  Thanks again to those who participated.  

Detroit Free Press Story

Spoke with a reporter from the Detroit Free Press on numerous occasions to provide detailed background information on the changes the MTA pursued as reflected in P.A. 539 of 2008.  Specifically, the reported was writing a story relative to the requirement that vehicle owners must now post a bond equal to towing and storage prior to having a hearing scheduled.  As a result, I was able to discuss the abandoned vehicle process and the reasons towers would seek such changes.  In the end, the article seemed to be written fair and balanced.