SENATE BILL No. 1191

March 6, 2002, Introduced by Senator HART and referred to the Committee on Financial

Services.

A bill to amend 1949 PA 300, entitled

"Michigan vehicle code,"

by amending section 328 (MCL 257.328), as amended by 1995 PA 287,

and by adding sections 520a and 801j.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 328. (1) The owner of a motor vehicle who operates or

2 permits the operation of the motor vehicle upon the highways of

3 this state or the operator of the motor vehicle shall produce,

4 pursuant to subsection (2), upon the request of a police officer,

5 evidence that the motor vehicle is insured under chapter 31 of

6 the insurance code of 1956, Act No. 218 of the Public Acts of

7 1956, being sections 500.3101 to 500.3179 of the Michigan

8 Compiled Laws 1956 PA 218, MCL 500.3101 TO 500.3179. An owner

9 or operator of a motor vehicle who fails to produce evidence of

10 insurance under this subsection when requested to produce that

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1 evidence or who fails to have motor vehicle insurance for the

2 vehicle as required under chapter 31 of Act No. 218 of the

3 Public Acts of 1956 THE INSURANCE CODE OF 1956, 1956 PA 218,

4 MCL 500.3101 TO 500.3179, is responsible for a civil infraction.

5 (2) A certificate of insurance , if issued by an insurance

6 company , which certificate THAT states that security which

7 meets MEETING the requirements of sections 3101 and 3102 of Act

8 No. 218 of the Public Acts of 1956, being sections 500.3101 and

9 500.3102 of the Michigan Compiled Laws THE INSURANCE CODE OF

10 1956, 1956 PA 218, MCL 500.3101 AND 500.3102, is in force shall

11 be accepted as prima facie evidence that insurance is in force

12 for the motor vehicle described in the certificate of insurance

13 until the expiration date shown on the certificate. The certifi-

14 cate , in addition to describing the motor vehicles for which

15 insurance is in effect, shall state the SHALL CONTAIN ALL OF THE

16 FOLLOWING INFORMATION:

17 (A) THE VEHICLE IDENTIFICATION NUMBER.

18 (B) THE NAME AND ADDRESS OF THE INSURER.

19 (C) THE INSURANCE POLICY NUMBER.

20 (D) THE EFFECTIVE DATE AND THE EXPIRATION DATE OF THE INSUR-

21 ANCE POLICY.

22 (E) THE name of each person named on the policy, policy

23 declaration, or a declaration certificate whose operation of the

24 vehicle would cause the liability coverage of that insurance to

25 become void.

26 (3) If an owner or operator of a motor vehicle is determined

27 to be responsible for a violation of subsection (1), the court in

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1 which the civil infraction determination is entered may require

2 the person to surrender his or her operator's or chauffeur's

3 license unless proof that the vehicle has insurance meeting the

4 requirements of sections 3101 and 3102 of Act No. 218 of the

5 Public Acts of 1956 THE INSURANCE CODE OF 1956, 1956 PA 218,

6 MCL 500.3101 AND 500.3102, is submitted to the court. If the

7 person submits proof to the court that the vehicle has insurance

8 meeting the requirements of sections 3101 and 3102 of Act

9 No. 218 of the Public Acts of 1956 THE INSURANCE CODE OF 1956,

10 1956 PA 218, MCL 500.3101 AND 500.3102, in addition to the civil

11 fine and costs provided by section 907, the court shall assess a

12 fee of $25.00. If the court requires the license to be surren-

13 dered, the court shall order the secretary of state to suspend

14 the person's license. The court shall immediately destroy the

15 license and shall forward to the secretary of state an abstract

16 of the court record as required by section 732. Upon receipt of

17 the abstract, the secretary of state shall suspend the person's

18 license beginning with the date on which a person is determined

19 to be responsible for the civil infraction for a period of 30

20 days or until proof of insurance which THAT meets the require-

21 ments of sections 3101 and 3102 of Act No. 218 of the Public

22 Acts of 1956 THE INSURANCE CODE OF 1956, 1956 PA 218,

23 MCL 500.3101 AND 500.3102, is submitted to the secretary of

24 state, whichever occurs later. A person who submits proof of

25 insurance to the secretary of state under this subsection shall

26 pay a service fee of $25.00 to the secretary of state. The

27 person shall not be required to be examined as set forth in

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1 section 320c and shall not be required to pay a replacement

2 license fee.

3 (4) If an owner or operator of a motor vehicle is determined

4 to be responsible for a violation of subsection (1), the court in

5 which the civil infraction determination is entered shall notify

6 the secretary of state of the vehicle registration number and the

7 year and make of the motor vehicle being operated at the time of

8 the violation. This notification shall be made on the abstract

9 or on a form approved by the supreme court administrator. Upon

10 receipt, the secretary of state shall immediately enter this

11 information in the records of the department. The secretary of

12 state shall not renew, transfer, or replace the registration

13 plate of the vehicle involved in the violation or allow the pur-

14 chase of a new registration plate for the vehicle involved in the

15 violation until the owner meets the requirements of section 227a

16 or unless the vehicle involved in the violation is transferred or

17 sold to a person other than the owner's spouse, mother, father,

18 sister, brother, or child.

19 (5) An owner or operator of a motor vehicle who knowingly

20 produces false evidence under this section is guilty of a misde-

21 meanor, punishable by imprisonment for not more than 1 year, or a

22 fine of not more than $1,000.00, or both.

23 (6) Points shall not be entered on a driver's record pursu-

24 ant to section 320a for a violation of this section.

25 (7) This section does not apply to the owner or operator of

26 a motor vehicle that is registered in a state other than this

27 state or a foreign country or province.

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1 SEC. 520A. (1) THE SECRETARY OF STATE SHALL CREATE AND

2 MAINTAIN A CENTRAL FILE OF REGISTERED MOTOR VEHICLES INSURED

3 UNDER AN AUTOMOBILE INSURANCE POLICY MEETING THE REQUIREMENTS OF

4 SECTION 3101 OR 3102 OF THE INSURANCE CODE OF 1956, 1956 PA 218,

5 MCL 500.3101 AND 500.3102. THE FILE SHALL CONTAIN ALL OF THE

6 FOLLOWING INFORMATION FOR EACH INSURED VEHICLE:

7 (A) THE VEHICLE IDENTIFICATION NUMBER.

8 (B) THE NAME AND ADDRESS OF THE INSURER.

9 (C) THE INSURANCE POLICY NUMBER.

10 (D) THE EFFECTIVE DATE AND THE EXPIRATION DATE OF THE INSUR-

11 ANCE POLICY.

12 (2) THE SECRETARY OF STATE SHALL SEND A NOTICE TO EACH REG-

13 ISTERED OWNER OF A MOTOR VEHICLE REGISTERED UNDER THIS ACT IF THE

14 SECRETARY OF STATE HAS BEEN INFORMED BY THE INSURER THAT THE

15 POLICY OF INSURANCE FOR THE MOTOR VEHICLE HAS EXPIRED WITHOUT

16 BEING RENEWED OR HAS BEEN TERMINATED OR CANCELED AND THE SECRE-

17 TARY OF STATE HAS NOT BEEN INFORMED BY THE REGISTERED OWNER OF

18 THE MOTOR VEHICLE THAT THE MOTOR VEHICLE IS INSURED UNDER ANOTHER

19 POLICY OF INSURANCE.

20 (3) A NOTICE ISSUED UNDER THIS SECTION SHALL BE ON A FORM

21 PRESCRIBED BY THE SECRETARY OF STATE AND SHALL CONTAIN BOTH OF

22 THE FOLLOWING:

23 (A) A STATEMENT THAT THE INSURER HAS INFORMED THE SECRETARY

24 OF STATE THAT THE POLICY OF INSURANCE FOR THE MOTOR VEHICLE HAS

25 EXPIRED WITHOUT BEING RENEWED OR HAS BEEN TERMINATED OR CANCELED

26 AND THE SECRETARY OF STATE HAS NOT BEEN INFORMED BY THE

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1 REGISTERED OWNER OF THE MOTOR VEHICLE THAT THE MOTOR VEHICLE IS

2 INSURED UNDER ANOTHER POLICY OF INSURANCE.

3 (B) A STATEMENT THAT IF A REGISTERED OWNER OF THE MOTOR

4 VEHICLE FAILS TO RESPOND TO THE NOTICE BEFORE THE EXPIRATION OF

5 14 DAYS AFTER THE NOTICE WAS ISSUED AND FAILS TO PRESENT PROOF TO

6 THE SECRETARY OF STATE THAT IS SATISFACTORY TO THE SECRETARY OF

7 STATE THAT THE MOTOR VEHICLE IS INSURED PURSUANT TO SECTION 520,

8 THE SECRETARY OF STATE WILL CANCEL THE REGISTRATION OF THE MOTOR

9 VEHICLE AND WILL NOT ISSUE A NEW REGISTRATION FOR THE MOTOR VEHI-

10 CLE UNTIL AN OWNER OF THE MOTOR VEHICLE PROVIDES PROOF TO THE

11 SECRETARY OF STATE THAT IS SATISFACTORY TO THE SECRETARY OF STATE

12 THAT THE MOTOR VEHICLE IS INSURED PURSUANT TO SECTION 520.

13 (4) THE SECRETARY OF STATE SHALL CANCEL THE REGISTRATION OF

14 A MOTOR VEHICLE UNLESS A REGISTERED OWNER OF THE MOTOR VEHICLE

15 PROVIDES PROOF OF INSURANCE TO THE SECRETARY OF STATE AS REQUIRED

16 UNDER THIS SECTION.

17 SEC. 801J. (1) THE SECRETARY OF STATE SHALL COLLECT A $1.00

18 UNINSURED VEHICLE DATABASE ASSESSMENT AT THE TIME OF REGISTERING

19 A VEHICLE.

20 (2) THE ASSESSMENT COLLECTED UNDER SUBSECTION (1) SHALL BE

21 TRANSFERRED TO THE GENERAL FUND TO THE CREDIT OF THE DEPARTMENT.

22 Enacting section 1. This amendatory act does not take

23 effect unless Senate Bill No. 1192

24 of the 91st Legislature is enacted into

25 law.

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