HOUSE BILL No. 4052


     January 27, 1999, Introduced by Rep. Callahan and referred to the Committee on Insurance and Financial Services.


        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   by amending section 6107 (MCL 500.6107), as added by 1992 PA

   174.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 6107. (1) Prior to April 1 of each year, each insurer

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      engaged in writing insurance coverages  which  THAT provide the

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      security required by section 3101(1) OR 3103(1) within this

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      state, as a condition of its authority to transact insurance in

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      this state, shall pay to the authority an assessment equal to

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      $1.00 multiplied by the insurer's total  earned car years of

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      insurance providing the  NUMBER OF MOTOR VEHICLES AND MOTORCYCLES

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      THAT THE INSURER PROVIDED security  required by  FOR UNDER

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      section 3101(1)  written  OR 3103(1) in this state during the

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      immediately preceding calendar year.


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           (2) Money received pursuant to subsection (1), and all other

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      money received by the authority, shall be segregated and placed

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      in a fund to be known as the automobile theft prevention fund.

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      The automobile theft prevention fund shall be administered by the

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      authority.

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           (3) Money in the automobile theft prevention fund shall be

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      expended in the following order of priority:

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           (a) To pay the costs of administration of the authority.

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           (b) To achieve the purposes and objectives of this chapter,

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      which may include, but IS not  be  limited to, the following:

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           (i) Provide financial support to the department of state

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      police and local law enforcement agencies for economic automobile

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      theft enforcement teams.

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           (ii) Provide financial support to state or local law

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      enforcement agencies for programs designed to reduce the inci-

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      dence of economic automobile theft.

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           (iii) Provide financial support to local prosecutors for

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      programs designed to reduce the incidence of economic automobile

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      theft.

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           (iv) Provide financial support to judicial agencies for pro-

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      grams designed to reduce the incidence of economic automobile

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      theft.

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           (v) Provide financial support for neighborhood or community

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      organizations or business organizations for programs designed to

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      reduce the incidence of automobile theft.

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           (vi) Conduct educational programs designed to inform

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      automobile owners of methods of preventing automobile theft and



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      to provide equipment, for experimental purposes, to enable

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      automobile owners to prevent automobile theft.

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           (4) Money in the automobile theft prevention fund shall only

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      be used for automobile theft prevention efforts and shall be dis-

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      tributed based on need and efficacy as determined by the

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      authority.

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           (5) Money in the automobile theft prevention fund shall not

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      be considered state money.

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           (6) AN ASSESSMENT COLLECTED UNDER SUBSECTION (1) IS NOT

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      REFUNDABLE.




































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