SENATE BILL No. 638

 

 

July 16, 2003, Introduced by Senators OLSHOVE, LELAND, SCOTT, PATTERSON, JACOBS, BRATER, CLARK-COLEMAN, BERNERO, CHERRY, SCHAUER, BARCIA, BASHAM, GILBERT and CLARKE and referred to the Committee on Banking and Financial Institutions.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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 section 520a.                                                 

                                                                                

                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              

                                                                                


                                                                                

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, MCL           

                                                                                

4   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  3103            

                                                                                

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

                                                                                

9   500.3101 and 500.3102 of the Michigan Compiled Laws  the                    

                                                                                

10  insurance code of 1956, 1956 PA 218, MCL 500.3101 and 500.3103,             

                                                                                

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

                                                                                

12  insurance is in force for the motor vehicle described in the                

                                                                                

13  certificate of insurance until the expiration date shown on the             

                                                                                

14  certificate.  The certificate  , in addition to describing the              

                                                                                

15  motor vehicles for which insurance is in effect, shall state the            

                                                                                

16  shall contain all of the 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                       

                                                                                

21  insurance 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           


                                                                                

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  3103 of  Act No. 218 of            

                                                                                

5   the Public Acts of 1956  the insurance code of 1956, 1956 PA 218,           

                                                                                

6   MCL 500.3101 and 500.3103, 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  3103 of  Act           

                                                                                

9   No. 218 of the Public Acts of 1956  the insurance code of 1956,             

                                                                                

10  1956 PA 218, MCL 500.3101 and 500.3103, 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                     

                                                                                

13  surrendered, the court shall order the secretary of state to                

                                                                                

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

                                                                                

15  destroy the license and shall forward to the secretary of state             

                                                                                

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

                                                                                

17  receipt of the abstract, the secretary of state shall suspend the           

                                                                                

18  person's license beginning with the date on which a person is               

                                                                                

19  determined to be responsible for the civil infraction for a                 

                                                                                

20  period of 30 days or until proof of insurance  which  that meets            

                                                                                

21  the requirements of sections 3101 and  3102  3103 of  Act No. 218           

                                                                                

22  of the Public Acts of 1956  the insurance code of 1956, 1956 PA             

                                                                                

23  218, MCL 500.3101 and 500.3103, 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                 


                                                                                

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                 

                                                                                

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

                                                                                

15  the violation until the owner meets the requirements of section             

                                                                                

16  227a or unless the vehicle involved in the violation is                     

                                                                                

17  transferred or sold to a person other than the owner's spouse,              

                                                                                

18  mother, father, 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                   

                                                                                

21  misdemeanor, punishable by imprisonment for not more than 1 year,           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  or a foreign country or province.                                           


                                                                                

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 3103 of the insurance code of 1956, 1956 PA 218,            

                                                                                

5   MCL 500.3101 and 500.3103.  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                       

                                                                                

11  insurance policy.                                                           

                                                                                

12      (2) The secretary of state shall send a notice to each                      

                                                                                

13  registered owner of a motor vehicle registered under this act if            

                                                                                

14  the 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                    

                                                                                

17  secretary of state has not been informed by the registered owner            

                                                                                

18  of the motor vehicle that the motor vehicle is insured under                

                                                                                

19  another 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                     

                                                                                

27  registered owner of the motor vehicle that the motor vehicle is             


                                                                                

1   insured under another policy of insurance.                                  

                                                                                

2       (b) A statement that if a registered owner of the motor                     

                                                                                

3   vehicle fails to respond to the notice before the expiration of             

                                                                                

4   14 days after the notice was issued and fails to present proof to           

                                                                                

5   the secretary of state that is satisfactory to the secretary of             

                                                                                

6   state that the motor vehicle is insured pursuant to section 520,            

                                                                                

7   the secretary of state will cancel the registration of the motor            

                                                                                

8   vehicle and will not issue a new registration for the motor                 

                                                                                

9   vehicle until an owner of the motor vehicle provides proof to the           

                                                                                

10  secretary of state that is satisfactory to the secretary of state           

                                                                                

11  that the motor vehicle is insured pursuant to section 520.                  

                                                                                

12      (4) The secretary of state shall cancel the registration of                 

                                                                                

13  a motor vehicle unless a registered owner of the motor vehicle              

                                                                                

14  provides proof of insurance to the secretary of state as required           

                                                                                

15  under this section.                                                         

                                                                                

16      Enacting section 1.  This amendatory act does not take                      

                                                                                

17  effect unless Senate Bill No. 634                                           

                                                                                

18                         of the 92nd Legislature is enacted into              

                                                                                

19  law.