October 5, 2005, Introduced by Senator HAMMERSTROM and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
(MCL 257.1 to 257.923) by adding sections 520a, 520b, 520c, and
520d.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 520a. (1) The secretary of state shall establish and
implement a verification system for motor vehicle insurance
coverage. The verification system shall be designed with the goal
of identifying motor vehicles that are being operated on highways
in this state without the required insurance coverage and shall
have all of the following characteristics:
(a) Provide quick, accurate, and current access to motor
vehicle insurance coverage information for persons and agencies
charged with enforcement of motor vehicle insurance requirements.
(b) Be cost-effective.
(c) Protect the privacy of motor vehicle owners.
(d) Protect the security and integrity of information provided
by insurers.
(e) Allow for independent auditing.
(2) The secretary of state may consult with motor vehicle
insurers and the implementing and enforcing agencies and entities
regarding the design, development, and testing of a pilot program
and the full implementation of the program.
Sec. 520b. The secretary of state shall collect a $2.00 motor
vehicle insurance verification fee along with each yearly motor
vehicle registration. The fee shall be deposited with the state
treasurer and credited to the insurance verification fund created
in section 520c.
Sec. 520c. (1) The insurance verification fund is created in
the state treasury. The state treasurer shall credit to the fund
the amounts received under section 520b and interest on investment
of the fund. The state treasurer may credit money from any other
source to the fund.
(2) Money in the fund at the close of a fiscal year shall
remain in the fund and shall not lapse to the general fund.
(3) Money in the fund shall be expended only as provided in
this section. The secretary of state shall expend money from the
fund to establish, implement, and maintain a program for timely
verification of motor vehicle insurance coverage, which may include
any of the following:
(a) Soliciting competitive bids for supplies, services,
software, or equipment.
(b) Implementing a pilot program.
(c) Purchasing, developing, modifying, testing, implementing,
operating, or maintaining a motor vehicle insurance coverage
verification system.
Sec. 520d. The secretary of state shall require motor vehicle
insurers to submit on a daily basis information necessary for
effective implementation and operation of the motor vehicle
insurance coverage verification system.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
(a) Senate Bill No. 792.
(b) Senate Bill No. 793.