SB 740 Michigan Senate · 2025-2026 Regular Session

Vehicles: title; requirements for transfer of title by a dealer; provide for. Amends secs. 238, 806 & 810a of 1949 PA 300 (MCL 257.238 et seq.). TIE BAR WITH: SB 0739'25

SB 740 amends Michigan's vehicle code to update procedures for transferring vehicle titles when a security interest (like a car loan) is involved. It requires dealers to submit written notice to the state when a security interest is released, ensuring the title reflects the new owner without outstanding liens. The bill also mandates that title transfers involving security interests must be processed electronically, streamlining the process for dealers and lenders. This affects vehicle dealers, lenders holding security interests, and owners during vehicle sales or title transfers.

Bill status passed 3 of 5 stages cleared

Introduction

Dec 2025

Committee Review

Jun 2026

Senate Passage

Jun 2026

House Passage

Governor

Introduced Dec 16, 2025 Last action Jun 10, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Senate Introduced Bill → Substitute (S-1) · 3 edits

MINOR

The bill was renumbered from an original Senate introduction to a substitute version (S-1), which involves significant restructuring of the text. The most substantive change is the addition of a new subsection regarding the reassignment of motor vehicle lease agreements or installment sale contracts, requiring written notice to dealers if a security interest is no longer retained. Additionally, the deadline for secured parties to execute termination statements was extended from 30 days to 45 days when the title is held by someone other than the owner.

Scope change

The bill's scope remains focused on amending sections of the Michigan Vehicle Code regarding security interests and title transfers, but the procedural requirements for dealers and secured parties have been expanded.

REQUIREMENT

Added a new requirement for individuals to provide written notice to licensed dealers or installment sellers if they reassign a vehicle lease or contract after a security interest has been identified, ensuring the dealer is updated on the status of the lien.

TIMELINE

Extended the deadline for secured parties to execute a termination statement from 30 days to 45 days after demand when the certificate of title is in the possession of another person.

TECHNICAL

Reorganized the numbering of subsections within the bill, shifting existing clauses to accommodate the new content and correcting citation references.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 10, 2026

Upper · Passed

SUBSTITUTE (S-1) CONCURRED IN

upper

Jun 10, 2026

Upper · Passed

REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITH SUBSTITUTE (S-1)

upper

Apr 23, 2026

Committee

REFERRED TO COMMITTEE OF THE WHOLE WITH SUBSTITUTE (S-1)

upper

Apr 23, 2026

Upper · Passed

REPORTED FAVORABLY WITH SUBSTITUTE (S-1) 4/22/2026

upper

Dec 16, 2025

Committee

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION

upper

Dec 16, 2025

Introduced

INTRODUCED BY SENATOR ROSEMARY BAYER

upper

1 primary · 1 co-sponsor