HOUSE BILL No. 5888

 

May 12, 2004, Introduced by Reps. LaJoy, Richardville, Shackleton, Stahl, Voorhees, Amos, Palsrok, Taub, Meyer, Garfield, Nitz, DeRoche, Milosch, Pumford, Hummel, Steil, Koetje, Bisbee, Hune, Tabor, Shaffer, DeRossett, Ehardt, Gaffney, Newell, Caswell, Walker, Moolenaar, Acciavatti, Huizenga, Kooiman, Caul, Hoogendyk, Nofs and Sheen and referred to the Committee on Government Operations.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1950 (Ex Sess) PA 27, entitled                                    

                                                                                

    "Motor vehicle sales finance act,"                                          

                                                                                

    by amending section 4 (MCL 492.104) and by adding section 6a.               

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 4.  (1)  (a) Applications for licenses  A person shall                 

                                                                                

2   file an application for a new or renewal license under this act             

                                                                                

3   shall be  in writing, under oath, and in the form prescribed by            

                                                                                

4   the administrator.                                                          

                                                                                

5       (2)  (b) The  A complete license application shall contain                  

                                                                                

6   the  all of the following:                                                 

                                                                                

7       (a) The name under which the business is conducted.  ; the                  

                                                                                

8       (b) The address of the principal place of business and of                   

                                                                                

9   each other place of business, if more than 1.  ; the                        

                                                                                

10      (c) One of the following:                                                   

                                                                                

11                                                                               (i) The date and place of incorporation  ,  and the name and                        

                                                                                


                                                                                

1   address of all officers and directors if the applicant is a                 

                                                                                

2   corporation.  ; the                                                         

                                                                                

3       (ii) The name and residence address of the owner  ,  if the                  

                                                                                

4   applicant is an individual owner or operating under an assumed              

                                                                                

5   name.  ; the                                                                

                                                                                

6       (iii) The name and residence address of all owners, partners,                

                                                                                

7   or members  ,  if the applicant is a partnership,  or                       

                                                                                

8   association,  ; the name and address of all officers and                    

                                                                                

9   directors, if the applicant is a corporation; and such  or                  

                                                                                

10  limited liability company.                                                  

                                                                                

11      (d) An appointment under subsection (3), if applicable.                     

                                                                                

12      (e) Any other information  as  the administrator  may                       

                                                                                

13  require  requires.                                                          

                                                                                

14      (c) All applications filed by associations or corporations                  

                                                                                

15  shall be accompanied by a power of attorney showing the name and            

                                                                                

16  address of the authorized agent in the state of Michigan upon               

                                                                                

17  whom all judicial and other process or legal notice may be                  

                                                                                

18  served, and in the case of the death, removal from the state or             

                                                                                

19  any legal disability or disqualification of such agent, service             

                                                                                

20  of such process or notice upon the administrator shall be                   

                                                                                

21  authorized.                                                                 

                                                                                

22      (3) If a license applicant does not maintain an office in                   

                                                                                

23  this state and does not have a resident agent in this state, the            

                                                                                

24  application shall include a written appointment of a statutory              

                                                                                

25  agent upon whom process, notice, or demand may be served.  The              

                                                                                

26  statutory agent shall be an individual residing in this state or            

                                                                                

27  a corporation whose principal place of business is located in               


                                                                                

1   this state.  If the identity or address of the statutory agent              

                                                                                

2   changes while the application is pending or after a license is              

                                                                                

3   issued, the applicant or licensee shall within 3 days file with             

                                                                                

4   the department a written appointment of the new statutory agent             

                                                                                

5   or written notice of the new address, as applicable.                        

                                                                                

6       (4)  (d)  A new or renewal license applicant shall submit a                 

                                                                                

7   separate application, on the prescribed form,  shall be filed               

                                                                                

8   for each place of business conducted by or to be established by             

                                                                                

9   a  the licensee within  the  this state.  of Michigan.                     

                                                                                

10      (5)  (e) All applications  An applicant for a renewal license               

                                                                                

11  shall submit the application for renewal of  existing licenses              

                                                                                

12  shall be filed at least 15 days prior to July first annually  the           

                                                                                

13  license on or before the June 16 preceding the renewal period.              

                                                                                

14      Sec. 6a.  (1) Subject to subsection (3), beginning on the                   

                                                                                

15  effective date of the amendatory act that added this section, the           

                                                                                

16  administrator shall approve or reject a new or renewal license              

                                                                                

17  application within 6 months after receiving the complete                    

                                                                                

18  application under section 4, the bond required under section 5,             

                                                                                

19  if applicable, and the license fee or fees required from the                

                                                                                

20  applicant under section 5.                                                  

                                                                                

21      (2) If a new or renewal license application is considered                   

                                                                                

22  incomplete by the administrator, the bond is not delivered, or              

                                                                                

23  the license fees are not paid, the administrator shall notify the           

                                                                                

24  applicant in writing within 10 days after receipt of the                    

                                                                                

25  application, describing the deficiency and how the applicant may            

                                                                                

26  remedy the discrepancy.                                                     

                                                                                

27      (3) The 6-month time period described in subsection (1) is                  


                                                                                

1   tolled from the date the administrator notifies an applicant of a           

                                                                                

2   deficiency under subsection (2) until the date the administrator            

                                                                                

3   received the missing information, bond, or fees to remedy the               

                                                                                

4   deficiency.                                                                 

                                                                                

5       (4) If the administrator fails to approve or reject a new or                

                                                                                

6   renewal license application within the time period required under           

                                                                                

7   this section, the administrator shall return the license fee or             

                                                                                

8   fees required under section 5 to the applicant, and shall reduce            

                                                                                

9   the license fee or fees for the applicant's next renewal                    

                                                                                

10  application, if any, by 15%.  The administrator shall not                   

                                                                                

11  discriminate against an applicant in the processing of an                   

                                                                                

12  application based on the fact that the application fee was                  

                                                                                

13  returned or reduced under this subsection.                                  

                                                                                

14      (5) Beginning January 31, 2005, the director of the                         

                                                                                

15  department shall submit a report by January 31 of each year to              

                                                                                

16  the standing committees of the senate and house of                          

                                                                                

17  representatives concerned with commerce issues and to the                   

                                                                                

18  appropriations subcommittees of the senate and house of                     

                                                                                

19  representatives generally responsible for appropriations to the             

                                                                                

20  administrator.  The director shall include all of the following             

                                                                                

21  information in the report concerning the preceding calendar                 

                                                                                

22  year:                                                                       

                                                                                

23      (a) The number of new and renewal license applications the                  

                                                                                

24  authority received and processed within the time period described           

                                                                                

25  in subsections (1) and (3), and the number that the administrator           

                                                                                

26  did not process within that time period.                                    

                                                                                

27      (b) The number of applications requiring a notice under                     


                                                                                

1   subsection (2).                                                             

                                                                                

2       (c) The average time for an applicant to respond to a request               

                                                                                

3   for additional information.                                                 

                                                                                

4       (d) The number of applications rejected, categorized by                     

                                                                                

5   reason for rejection.                                                       

                                                                                

6       (e) The amount of money returned to licensees under                         

                                                                                

7   subsection (4).                                                             

                                                                                

8       (f) The average processing time for processing new and                      

                                                                                

9   renewal license applications that are granted after the time                

                                                                                

10  period described in subsections (1) and (3).