MI HB5741

Vehicle salvage pools, auctions, and brokers may only sell or transfer distressed late-model vehicles to the vehicle's former owner or lienholder, a licensed salvage agent of an automotive recycler, or a licensed salvage agent of a foreign salvage vehicle dealer.

Insurance companies may direct salvage pools to release vehicles to the owner or lienholder by providing a release statement containing the claim number, owner name and address, vehicle identification number, vehicle description, and authorized representative signature.

Salvage pools must send certified mail or commercially-available delivery notice to the owner and lienholder informing them the vehicle is available for pickup within 30 days from the postmark date, along with an invoice for outstanding charges.

If the vehicle is not claimed within 30 days, the salvage pool may sell distressed late-model vehicles for parts only to licensed salvage agents or automotive recyclers, or sell non-distressed vehicles to recyclers or scrap metal processors.

The salvage pool must provide the buyer and secretary of state with the release statement, proof of notice, and bill of sale so the secretary of state can issue the appropriate salvage or scrap certificate of title; the law takes effect 90 days after enactment.