HOUSE BILL NO. 5147

A bill to amend 1949 PA 300, entitled

"Michigan vehicle code,"

(MCL 257.1 to 257.923) by adding chapter IIA.

the people of the state of michigan enact:

CHAPTER IIA Damaged or Disabled VEHICLE TOWING AND STORAGE

Sec. 270. (1) A towing agency must annually register and maintain a valid and current towing agency license issued by the department of licensing and regulatory affairs.

(2) The department of licensing and regulatory affairs shall promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, necessary to issue, reject, suspend, and revoke a towing agency's license and to implement this chapter.

(3) The department of licensing and regulatory affairs may, at any time during the term of the license, inquire into the licensee's management, conduct of the business, or otherwise to determine that the licensee is in compliance with this chapter and the rules promulgated under subsection (2).

Sec. 271. (1) Except as otherwise provided in this section, a towing agency shall not commence the towing of a damaged or disabled vehicle without signed authorization from the vehicle owner or operator after the disclosures set forth in this section.

(2) Except as otherwise provided in this section, before towing a damaged or disabled vehicle, a towing agency shall give each vehicle owner or operator a written disclosure that provides all of the following:

(a) The business name of the towing agency, as registered with the department of licensing and regulatory affairs, and the business's address and telephone number.

(b) The address of the vehicle's storage location after the vehicle is towed.

(c) The cost of all relocation, storage, and other fees, without limitation, that the towing agency will charge for any provided services.

(d) A disclosure of the vehicle owner's or operator's rights must be approved in advance by the department of licensing and regulatory affairs and read substantially as follows:

"As a customer, you have the following rights under Michigan law:

1. This disclosure must be provided to you in writing before your vehicle is towed. It must include the business name and address, the address where the vehicle will be towed, and a reliable telephone number for the vehicle's location.

2. You must be told of the price of all services before towing.

3. On request, you must be provided with a final invoice itemizing all charges and any damage to the vehicle on the vehicle's return to you.

4. On request, your vehicle must be returned during business hours after payment of all reasonable fees. If you request your vehicle be returned after normal business hours, you may be charged an after-hours retrieval fee.

5. You have the right to pay all charges in cash or by debit card, major credit card, or certified check.

6. On request, you must be provided with proof of the towing agency's insurance that insures against all of the risk to transport and store your vehicle.".

(3) The towing agency shall provide a copy of the disclosure required under subsection (2) to the vehicle owner or operator and shall maintain a copy of the disclosure as required under section 274.

(4) If the vehicle owner or operator is incapacitated, incompetent, or otherwise unable to knowingly accept receipt of the disclosure under subsection (2), the towing agency shall provide the disclosure to the local police agency and, if known, the vehicle owner's or operator's automobile insurance company.

(5) If a damaged or disabled vehicle is located on a roadway with a posted speed limit of 55 miles per hour or greater and immediate removal of the vehicle is necessary for safety or to prevent the obstruction of traffic, the towing agency may satisfy the disclosure requirements under this section after the vehicle has been removed from the scene by, subject to subsection (4), giving the disclosure to the vehicle owner or operator at the earliest reasonable opportunity, not later than 1 business day after removal of the vehicle.

(6) If the towing agency fails to comply with the requirements of this section, the towing agency is prohibited from seeking any compensation whatsoever from the vehicle owner or operator, including, but not limited to, any towing, storage, or other incidental fees. Furthermore, if the towing agency or operator fails to comply with the requirements of this section, any contracts entered into by the towing agency and the vehicle owner or operator are null, void, and unenforceable.

Sec. 272. (1) On demand of the vehicle owner or operator, a towing agency shall provide a legible, itemized, final invoice that fairly and accurately documents the charges owed by the vehicle owner or operator for relocation of damaged or disabled vehicles. The written final invoice must accurately record all of the following:

(a) The formal business name of the towing agency, as registered with the department of licensing and regulatory affairs.

(b) The business address and telephone number.

(c) The date of the invoice.

(d) The odometer reading, if it can be obtained, of the vehicle at the time the final invoice was prepared.

(e) The name of the vehicle owner or operator.

(f) A description of the motor vehicle, including the motor vehicle identification number.

(g) A description of any modifications made to the vehicle by the towing agency.

(h) A description of any observable damage to the vehicle on the vehicle's initial receipt by the towing agency.

(i) A description of any observable damage to the vehicle at the time of the vehicle's release.

(j) An itemized list of any charges and the total charge presented to the vehicle's owner or operator.

(2) The towing agency shall retain a legible copy of the invoice under subsection (1) as required under section 274.

Sec. 273. (1) A towing agency that relocates or stores damaged or disabled vehicles shall post, in a prominent place on the business premises and readily visible to customers, 1 or more signs of the disclosures required under section 271(1).

(2) The first line of each sign under subsection (1) must be in letters not less than 1-1/2 inches in height, and the remaining lines of the sign must be in letters not less than 1/2 inch in height.

Sec. 274. (1) A towing agency shall maintain copies of both of the following:

(a) The disclosure provided to a vehicle's owner or operator under section 271.

(b) The invoice provided to a vehicle's owner or operator as required under section 272.

(2) The records under subsection (1) must be maintained for not less than 5 years from the date of the release of the vehicle. The records may be maintained in an electronic format or stored at another location.

(3) The records stored under this section must be available for inspection by the department of licensing and regulatory affairs not later than 3 business days after a request.

Sec. 275. A vehicle used in a commercial vehicle safety relocation service must have painted or firmly affixed to the vehicle on both sides of the vehicle in a color or colors that vividly contrast the color of the vehicle the name, address, and telephone number of the towing agency. A decal furnished for a towing vehicle by the Michigan public service commission under section 8 of the motor carrier act, 1933 PA 254, MCL 479.8, must be attached to a conspicuous location on the vehicle for which it was issued as directed by the commission. A towing agency vehicle must not be marked in a way that indicates the vehicle is a police-agency-authorized vehicle or associated with a municipality.

Sec. 276. A towing agency vehicle must carry a copy of the current license provided under section 270. The copy of the license may be a photograph, photocopy, or reproduction by another legible and durable process. If a person found responsible of not carrying or displaying a copy of the license shows at a hearing that the license was issued by the department of licensing and regulatory affairs but was subsequently lost or destroyed, the person may be excused from the payment of a fine.

Sec. 277. (1) A towing agency shall not do either of the following:

(a) Include in a contract for the relocation or storage of vehicles any clause that purports to waive or limit the towing agency's liability under this chapter.

(b) Require a vehicle's owner or operator to sign a document that purports to waive or limit the towing agency's liability under this chapter.

(2) A contract, release, or other document that purports to waive or limit the towing agency's liability to a vehicle's owner or operator under this chapter is null and void.

Sec. 278. (1) The department of licensing and regulatory affairs may request documentation from or investigate the business practices of a towing agency to determine compliance with this chapter.

(2) Except as otherwise provided, failure to comply with any section of this chapter, as determined by the department of licensing and regulatory affairs, subjects a towing agency to the following sanctions:

(a) For a first violation, suspension of license, a fine up to $1,000.00, or both.

(b) For a second violation, suspension of license and a fine up to $5,000.00, or revocation of license.

(c) For a third violation, revocation of license.

Sec. 279. In addition to any other penalty or remedy under this section or the Michigan consumer protection act, 1976 PA 331, MCL 445.901 to 445.922, a towing agency that relocates or stores damaged or disabled vehicles that fails to comply with the following sections is responsible for a civil infraction or guilty of a misdemeanor punishable as follows:

(a) For a violation of section 270 or 271, 1 of the following as applicable:

(i) For a first violation, the individual is guilty of a misdemeanor punishable by imprisonment for not more than 90 days, a fine of not more than $500.00, or both.

(ii) For a violation that occurs after 1 or more prior convictions, the individual is guilty of a misdemeanor punishable by imprisonment for not more than 1 year, a fine of not more than $1,000.00, or both.

(b) For a violation of section 272, 273, 274, 277, or 280, 1 of the following, as applicable:

(i) For a first violation, the individual is responsible for a civil infraction.

(ii) For a violation that occurs after 1 or more prior judgments, the individual is guilty of a misdemeanor punishable by imprisonment for not more than 90 days, a fine of not more than $500.00, or both.

Sec. 280. A towing agency shall accept payment for accrued towing or storage charges under this chapter by any debit card, major credit card, certified check, or cash.

Sec. 281. (1) A towing agency must be insured for all of the following:

(a) All risks associated with the transportation of vehicles towed under this chapter.

(b) All areas where a vehicle towed under this chapter is impounded or stored, including, but not limited to, adequate coverage for loss by fire, theft, and other risks.

(2) On the demand of a vehicle's owner or operator, a towing agency shall promptly supply proof of the existence of the insurance under subsection (1).

(3) If the department of licensing and regulatory affairs finds that a towing agency has violated this section, the towing agency shall be fined not less than $100.00 or more than $500.00.

Sec. 282. The department of licensing and regulatory affairs shall use the fines and fees collected under this chapter for the costs of administration and enforcement of this chapter.

Sec. 283. (1) A police agency with a duty to remove vehicles from public or private property in accordance with section 252d shall maintain a tow rotation list of towing agencies that may remove damaged or disabled vehicles in accordance with section 252d. A towing agency operating in the jurisdiction of a police agency may submit an application in a form and manner prescribed by the police agency for inclusion on the police agency's tow rotation list. The police agency selects the towing agencies that are included on a tow rotation list. A complaint about a police agency's process for inclusion on a tow rotation list or the use of a tow rotation list must be referred in writing to the head of the police agency administering that tow rotation list. The head of the police agency makes the final determination on the towing agencies that are included on a tow rotation list and must not be held personally liable for the exclusion of a towing agency from a tow rotation list.

(2) If a police officer initiates a tow of a damaged or disabled vehicle, the police officer shall inform the police officer's agency or police dispatch center that a tow has been authorized. The police agency shall contact a towing agency from the police agency's tow rotation list that serves the geographical area where the tow was authorized, and shall contact the towing agency directly using a method provided on the application under subsection (1). Except as otherwise provided in this section, the towing agencies must be contacted in the order listed on the appropriate tow rotation list, at which point the towing agency must be placed at the end of that tow rotation list. If a listed towing agency is not available, the next listed towing agency on that tow rotation list must be contacted.

(3) A police agency may deviate from the order listed on a tow rotation list if the towing agency next on that tow rotation list is, in the judgment of the authorizing police officer or the police agency, incapable of or not properly equipped for a specific task related to the tow that requires special skills or equipment. A deviation from the order listed on the tow rotation list under this subdivision must not cause the towing agency determined to be incapable or not properly equipped to handle the request to lose the next turn on the tow rotation list.

(4) In the event of an emergency, a police officer or agency, taking into account public safety and the location of the emergency, may deviate from the order of the tow rotation list and obtain towing services from any source deemed appropriate.

(5) Except as provided in subsection (6), a person shall not travel to the scene of a motor vehicle accident or a disabled vehicle located on public property, property open to the public, or a state trunk line highway and solicit business for a towing agency. A person that violates this subsection is responsible for a civil infraction and must be ordered to pay a civil fine of $1,000.00.

(6) Subsection (5) does not apply if either of the following conditions occurs:

(a) A police agency that has jurisdiction over the scene of the accident or disabled vehicle, or an individual involved in that accident or disabled vehicle, requests a towing agency to come to the scene, whether or not that towing agency is next on the police agency's tow rotation list.

(b) A towing agency that does not travel to the scene of a motor vehicle accident or disabled vehicle as described in subsection (1) for the purpose of soliciting business for a towing agency offers assistance to a stranded motorist without creating a nuisance or interfering with management of a motor vehicle accident by law enforcement.

(7) Subject to section 252d, a police agency at the scene of a vehicle that needs to be towed shall permit an owner or operator of a motor vehicle to request the towing agency of the owner's or operator's choice unless 1 or more of the following apply:

(a) The vehicle is involved in suspected criminal activity, a fatality, or a law enforcement investigation.

(b) The vehicle is being impounded.

(c) If the vehicle is creating a road or safety hazard as determined by law enforcement at the scene, the requested towing agency is unavailable or cannot respond in a timely manner.

Sec. 284. A person that suffered from a towing agency's violation of this act may bring an action in any court that has jurisdiction to recover treble damages, costs of the action, and reasonable attorney fees.

Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 103rd Legislature are enacted into law:

(a) Senate Bill No. ____ (request no. S00265'25) or House Bill No. 5146 (request no. H00265'25).

(b) Senate Bill No. ____ (request no. S03418'25) or House Bill No. 5148 (request no. H03418'25).