Michigan House Bill HB5356

Michigan 2025-2026 Regular Session

• Introduced: 12/11/25
• Refer: 12/11/25
• Report Pass: 4/30/26
• Report Pass: 5/14/26

Caption

Vehicles: title; requirements for transfer of title by a dealer; provide for. Amends 14, 41a, 78, 217, 217c, 233, 233a, 233b, 234, 238, 239, 240, 248, 248a, 248j, 249, 250, 258, 801b, 806 & 810a of 1949 PA 300 (MCL 257.14 et seq.) & adds sec. 9b.

Impact

The bill amends multiple sections of existing laws, updating definitions and requirements related to vehicle dealerships and their operations. One significant amendment proposed is to section 9b, which explicitly defines the requirements for a courtesy transportation vehicle and lays out the conditions under which it is classified as a used vehicle after exceeding a mileage threshold. This aims to clarify the responsibilities of dealers when dealing with such vehicles, enhancing transparency in transactions and title transfers.

Summary

House Bill 5356 proposes amendments to the Michigan Vehicle Code, specifically targeting the regulations surrounding the title transfer of new motor vehicles by dealers. Among the key changes is the introduction of the term 'courtesy transportation vehicle,' which describes a vehicle registered by a dealer primarily for the service of its customers. This creates a clear classification for vehicles used in dealer arrangements, ensuring that the operational nuances of such vehicles are recognized within the law.

Contention

As the bill seeks to amend longstanding statutes, it has generated discussion regarding whether the changes adequately address the evolving needs of Michigan's automotive market. While proponents argue that revising these definitions will help streamline processes and improve the regulatory framework surrounding vehicle dealerships, critics suggest that the changes may neglect certain consumer protections or inadvertently favor dealer practices over customer rights. Ensuring adequate safeguards for consumers while facilitating dealer operations remains a focal point for ongoing discussions.

Regulatory adjustments

House Bill 5356 not only updates definitions but also impacts the enforcement of administrative fines for violations of vehicle sales regulations. By establishing clear conditions and definitions, the bill aims to enhance compliance among dealers while also providing the Secretary of State with more directive powers in monitoring dealer activities and potential violations. The overarching goal is to create a more efficient and accountable framework for vehicle sales and registrations within Michigan.