2001 House Bill 5364 / 2002 Public Act 652

Introduced in the House

Oct. 29, 2001

Introduced by Rep. Jud Gilbert (R-82)

To require a person who buys or sells five or more vehicles in a year to obtain an auto dealer license, unless the person demonstrates he or she is not “in the business” of buying and selling cars (is not a "curbside" auto dealer). The bill authorizes fines of up to $5,000 for a first violation, and $7,500 for subsequent violations within seven years. See also House Bill 5366.

Referred to the Committee on Commerce

May 8, 2002

Substitute offered

To replace the previous version of the bill with a version recommended by the committee which reported it. The substitute incorporates technical changes resulting from committee testimony and deliberation. These changes do not affect the substance of the bill as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Jud Gilbert (R-82)

To more clearly define who would not be considered auto “dealers,” including financial institutions, insurers, rental companies, and companies that lease fleets of 5 or more semitrailers.

The amendment passed by voice vote

May 9, 2002

Passed in the House 98 to 7 (details)

To require a person who buys or sells five or more vehicles in a year to obtain an auto dealer license, unless the person demonstrates he or she is not “in the business” of buying and selling cars (is not a "curbside" auto dealer). Financial institutions, insurers, rental companies, and companies that lease fleets of 5 or more semitrailers would be exempt from auto dealer licensure. The bill authorizes fines of up to $5,000 for a first violation, and $7,500 for subsequent violations within seven years. See also House Bill 5366.

Received in the Senate

May 9, 2002

Sept. 24, 2002

Substitute offered

To replace the previous version of the bill with one containing technical changes that do not affect its substance as previously described.

The substitute passed by voice vote

Dec. 11, 2002

Substitute offered

To replace the previous version of the bill with one which also provides changes to a law requiring dealers to have the title in their possession before offering the vehicle for sale. This would require acknowledgement by a buyer regarding disclosure that a vehicle is a "flood car," buyback (lemon), etc.; and an exception in cases where a lessee is buying the leased vehicle.

The substitute passed by voice vote

Passed in the Senate 25 to 8 (details)

Received in the House

Dec. 12, 2002

Amendment offered by Rep. Stephen Adamini (D-109)

To establish that a dealer would be responsible for a vehicle if "in possession or control" of the vehicle even though the title was not yet in the dealer's possession.

The amendment failed by voice vote

Passed in the House 79 to 21 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. John Engler

Dec. 22, 2002