Summary — HB 4549 (Motor Vehicle Service and Repair Act amendments)
Status & timeline
- Introduced: March 12, 2025 (Rep. Joseph A. Aragona).
- Passed House: September 9, 2025 (immediate effect).
- Referred to Committee of the Whole: September 11, 2025.
- Amends: 1974 PA 300 (MCL 257.1302 et seq.) — sections 2, 13b, 14, 15, 16, 17, 18, 30, 32, 32a, 33, 40; adds section 30a.
Purpose
- Allow a motor vehicle repair facility owner to operate a single auxiliary facility under the same registration and registration number as a primary facility, revise registration/application requirements, restructure fees, and create a dedicated fund to support mechanic certification exams.
Key provisions
1. Auxiliary facility (newly defined)
- Owners may register one auxiliary facility under the primary facility’s registration/number.
- Application to Secretary of State (SOS) must include written verification from the appropriate municipal or zoning authority that the auxiliary facility complies with local zoning and municipal requirements.
- SOS may deny or revoke auxiliary approval if the primary facility has:
• Two or more unresolved customer parts-retention violations;
• Two or more unresolved recordkeeping violations; or
• An unresolved violation for hindering/obstructing inspections.
- Auxiliary facility requirements: within 1 mile of primary; function as an extension of the primary (mirror hours, vehicle types, repairs); customer in-person interactions (drop-off/pick-up, payment, invoicing, documents) occur at the primary; auxiliary may perform only repairs approved/initiated by the primary.
- Exemptions for auxiliary: no separate registration certificate/number, no exterior business sign requirement, no separate customer forms, no consumer-information sign, and no notice-of-parts-return sign.
- Records for the auxiliary must be stored at the primary facility.
- Auxiliary facilities remain subject to SOS and law-enforcement inspections, including unannounced inspections.
- Certified specialty/master mechanics need not display certificates at auxiliary locations.
Application and ownership information
- For applications on/after Jan 1, 2026, applicants must provide established place-of-business location and municipal/zoning verification.
- Registration must list any auxiliary facilities that will share the primary registration.
- Ownership disclosure threshold raised: principal-occupation history required for persons owning 25%+ (was 10%).
- If the applicant’s gross revenue range does not exceed $300,000, SOS can request proof of gross revenue.
Fees and fund changes
- Registration fees become nonrefundable.
- New registration fee schedule (by gross annual revenue):
• Under $50,000 — $100
• $50,001–$100,000 — $200
• $100,001–$200,000 — $300
• $200,001–$300,000 — $400
• Over $300,000 — $500
- Certification exam fee increased from $6 to $18; $12 of each fee deposited into a new Mechanic Certification Examination Fund, $6 to the general fund.
- Owners of facilities with gross revenue > $300,000 may opt for multi‑year registration (1–4 years); fee = annual fee × number of years.
Mechanic Certification Examination Fund
- Created in state treasury; treasurer directs investment; SOS administers for audit purposes.
- Funds (upon appropriation) may be used to develop/update and administer the mechanic certification examination.
Other changes
- Facility address changes must be accompanied by municipal/zoning verification for the primary and any auxiliary facility.
- SOS notification threshold for transfers of corporate stock increased from 10% to 25%.
Who is affected
- Motor vehicle repair facility owners/operators (especially those wanting an auxiliary location).
- Certified mechanics (display rules and certification exam fees/administration).
- Department of State (administration, inspection, enforcement).
- Municipalities/zoning authorities (verification role).
- Consumers (service access, potential oversight implications).
Potential impacts
- Lowers administrative burden for opening a nearby auxiliary location while centralizing records and customer interactions at the primary site.
- Raises registration and exam fees (increasing revenue; creates a dedicated exam fund).
- Retains SOS enforcement authority and establishes denial/revocation triggers tied to compliance history.
- Modifies ownership disclosure and corporate transfer notification thresholds, affecting transparency requirements.
