An ordinance to license and regulate used car sales and used car lots for the purpose of sales; and to prescribe a penalty for the violation of the provisions of this ordinance, pursuant to the Used Car Lots Act, Public Act 232 of 1937, as amended (MCL 445.501, et seq.).

THE TOWNSHIP OF __________, __________ COUNTY, MICHIGAN, ORDAINS:

Section 1: Definitions
1. “Used car,” as used in this ordinance, means any used or second-hand motor vehicle to which a certificate of title and license plates have been issued and which motor vehicle has been registered for use on the highways by a consumer or by a dealer, and any used or second-hand vehicle, defined as any vehicle required to be titled, trailer coaches, and trailers weighing over 2,500 pounds.

2. “Used car dealer” means a person who brokers, deals or engages in the purchase, sale, lease or exchange of five (5) or more used cars within a 12-month period.

3. "Used car business" means the purchase, sale, lease or exchange by any person, firm or corporation of five (5) or more used cars within a 12-month period.

4. “Used car lot” means any place where used cars are displayed and offered for purchase, sale, lease or exchange in the open by a used car dealer or used car business.

5. "Established used car lot” means a used car lot in _________ Township or any land in ________ Township maintained and/or used for the conduct of a used car business.

Section 2: Established Used Car Lots
Any established used car lot must have:

A. A permanent structure containing not less than one hundred twenty (120) square feet of interior floor space to be used as business or sales office.

Any new structure to be built shall conform to the Stille-DeRossett-Hale Single State Construction Code Act, Public Act 230 of 1972, as amended (MCL 125.1501, et seq.).

Any existing structure shall substantially conform to standards established in the Stille-DeRossett-Hale Single State Construction Code Act, Public Act 230 of 1972, as amended (MCL 125.1501, et seq.), in regard to matters connected with public health and safety. (If the township enforces the State Construction Code, include the following language: “The Township Building Inspector shall cause an inspection to be made to determine such compliance.”)

B. Improved grounds complying with the following minimum requirements upon that portion of the land to be used for display and/or offering for sale of used cars:

1. Parking space for inventory shall be not less than ten (10) feet by twenty (20) feet for each used car.

2. Improved ground shall contain a sand base of not less than four (4) inches covered by a minimum of two (2) inches of coarse aggregate that conforms to Michigan Department of Transportation Standards of Specifications Section 702.03, sub-section 6A and 6B.

3. The finished grade of such improved grounds shall be not less than twelve (12) inches or more than thirty six (36) inches above the grade of the street adjoining said premises.

4. Two driveways, one for ingress and one for egress, or one driveway adequate to permit simultaneous ingress and egress.

Section 3: License Requirements and Procedure For Obtaining License
No person, firm or corporation shall operate as a used car dealer or engage in a used car business within the Township of _________, _________ County, Michigan, without a Township Used Car Sales License as herein provided.

A separate Township Used Car Sales License shall be required for each established used car lot.

The Township Clerk is hereby authorized to issue a Township Used Car Sales License upon submission by the applicant of a written application on forms to be provided by the Township Clerk and upon compliance by the applicant with the following requirements:

A. The application shall be accompanied by written detailed plans showing the layout of land to be used, the portion thereof to be improved as required herein, method proposed for improvement, drainage, driveways for ingress and egress, and buildings to be built or existing buildings to be used in the operation of the established used car lot.

The application shall also be accompanied by evidence that he/she has obtained all applicable zoning, use, or site plan approvals/permits required to be obtained prior to operating a used car lot or business in the proposed location in the Township. The granting of a Township Used Car Sales License is contingent on obtaining all applicable zoning, use, or site plan approvals/permits.

The Township Clerk shall submit all such plans to the Township Engineer for his/her approval prior to granting of the Township Used Car Sales License.

B. Applicant must furnish evidence that he/she possesses a valid State of Michigan Class B Used Vehicle Dealer’s License.

C. Payment of an annual Township Used Car Sales License fee in the amount of $100.

All Township Used Car Sales Licenses issued under this ordinance shall be for a period of one year expiring on May 1 of each year. The Township Clerk is hereby authorized to issue a renewal Township Used Car Sales License upon expiration of the initial license upon written application on forms to be provided by the Township Clerk accompanied by a renewal Township Used Car Sales License fee in the amount of $100 and a determination by the Township Clerk that the applicant is complying with all of the provisions of this ordinance.

No Township Used Car Sales License issued under this ordinance may be transferred except upon written application by the licensee and the proposed transferee on forms to be provided by the Township Clerk and the payment of a transfer fee in the amount of $25. Provided however, the transferee shall be required to furnish any and all information as may be contained in an initial application for a Township Used Car Sales License. Prior to transferring any Township Used Car Sales License, the Township Clerk shall determine that the established used car lot for which the Township Used Car Sales License has been issued is complying with all of the provisions of this ordinance.

Section 4: Regulations
Each licensee under this ordinance shall comply with the following regulations:

1. Keep his/her premises in a neat and clean condition. He/she shall not allow any used motor vehicles that are part of his/her inventory to encroach upon the streets and sidewalks of the Township.

2. Not allow any loud or boisterous noises to emanate from his/her place of business, either by persons congregating there or by the playing of recording instruments, radios and/or television sets or other sound-reproducing equipment.

3. At all times keep each motor vehicle used in connection with his/her said business or maintained as part of the inventory thereof insured with public liability and property damage insurance in an amount not less than $10,000 per person and $20,000 per accident, personal injury or death liability insurance and $5,000 property damage insurance.

4. Not engage in the used car business within _______ Township on Sunday.

5. At least once each month prepare and mail to the commissioner of the Michigan State Police in East Lansing, Michigan, and the Secretary of State in Lansing, Michigan, a sworn statement of all purchases and sales made by the said licensee during the month immediately preceding the date of the said sworn statement.

Section 5: Revocation
Any Township Used Car Sales License issued under this ordinance shall be automatically revoked upon termination, suspension, revocation or failure to renew the licensee’s State of Michigan Class B Used Vehicle Dealer’s License or upon proof by competent legal evidence that the licensee made a false statement in any application for Township Used Car Sales License filed upon this ordinance. Any such Township Used Car Sales License may be revoked by the Township Board in their discretion upon proof of conviction of the licensee for a violation of this ordinance.

Section 6: Penalty
Any person, firm or corporation who shall violate any provision of this ordinance shall be deemed guilty of a misdemeanor, punishable by imprisonment in the county jail for not more than 90 days or by fine of not more than $500, or both such fine and imprisonment, in the discretion of the court.

Note: This ordinance is written to be enforced as a criminal misdemeanor. If your Township intends to enforce this ordinance as a civil infraction, the penalty provision will need to be revised. Please consult your local attorney, or contact Michigan Townships Association for sample civil infraction penalty provisions and enforcement guidelines.

Section 7: Repeal
Ordinance No. ___ of __________ Township, adopted _______ is hereby repealed in its entirety, such repeal to take effect upon the effective day of this ordinance. Provided however, all licenses heretofore issued under said ordinance shall be deemed to be valid until ______ at which time they shall automatically expire.

Section 8: Effective Date
This ordinance shall take effect 30 days from the date of first publication and posting as required by law.

The purpose of this sample ordinance is to provide a suggested guideline for the types of items that should be included within an ordinance. Certainly, no sample ordinance should be used unless, after careful review, it is the professional judgment of your legal counsel that using the sample will accomplish the particular objectives and intentions of your Township. Although these sample ordinances are the result of much thought and effort, neither the authors nor the Michigan Townships Association assumes any responsibility for the results of using these samples word-for-word in individual cases.