Michigan lawmakers are considering Senate Bill (SB) 867, introduced in May by Sen. John Cherry, D-27. The bipartisan legislation seeks to simplify the operational and regulatory burdens faced by auto repair shops.
The bill proposes that a motor vehicle repair business with multiple facilities can register all locations under a single registration and number if the additional facilities are within reasonable proximity, serve as extensions of the main facility, and do not operate independently. This change could save small businesses up to $500 per facility in redundant registration fees and eliminate the need for duplicative customer documentation and exterior signage.
Another significant provision of SB 867 would allow repair businesses to renew their registration every four years instead of annually, reducing the administrative burden on shop owners and freeing up more time for repair work.
Additionally, SB 867 addresses business succession planning. Under current law, repair businesses owned by corporations must report to the state if 10% or more of the corporation's stock is sold or transferred. The proposed legislation would increase this threshold to 25%, reducing the reporting burden on businesses.
The Automotive Service Association (ASA), a national trade association, is urging Michigan lawmakers to pass the bill.
"It makes no sense for an auto repairer to have to pay for and go through the process of registering twice for a single business operation just because it operates out of two or more buildings," said Roy Schnepper, owner of Butler's Collision in Roseville, MI, and an ASA board member. "Running an auto repair business is a practice in small margins. Every dollar counts. SB 867 would make it easier for repairers to remain compliant with state law while simultaneously providing customers with high-quality repairs. I urge our state elected officials to pass this important legislation."
"SB 867 would help repairers like me immensely," added Tom Piippo, owner of Tri-County Motors in Rudyard, MI, and an ASA board member. "Anyone who runs a small business knows that time is money, and that adage is especially true for small independent auto repairers. Time spent completing detailed paperwork and dealing with government bureaucracy is time spent away from repairing my customers vehicles."
ASA is urging Michigan residents to contact their state representatives and senators to support SB 867, which they believe will provide much-needed relief to independent auto repair shops.
