MI SB0740

Requires lenders who reject, reassign, or transfer a motor vehicle lease or installment sale contract back to a dealer to provide written notice that they no longer retain a security interest in the vehicle, enabling the department to issue a new title with the dealer listed as secured party

Creates a $3.00 fee on dealer title applications beginning January 1, 2026, deposited into a new Motor Vehicle Sales Finance Act Fund to cover the Department of Insurance and Financial Services' administrative costs, with the fee adjustable every two years up to a maximum of $5.00

Establishes the Motor Vehicle Sales Finance Act Fund in the state treasury to be administered by the Department of Insurance and Financial Services for administering the Motor Vehicle Sales Finance Act

Exempts new and used vehicle dealers from standard title fees when acquiring vehicles with electronic titles from non-dealers beginning March 1, 2026

Creates a reduced $5.00 fee for electronic title transfers between dealers beginning March 1, 2026, replacing standard title fees when the selling dealer held an electronic title