SENATE BILL No. 793

 

 

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,"

 

by amending section 328 (MCL 257.328), as amended by 2004 PA 52.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

permits the operation of the motor vehicle upon the highways of

 

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

 

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

 

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

 

insurance code of 1956, 1956 PA 218, MCL 500.3101 to 500.3179.

 

Subject to section 907(16), an owner or operator of a motor vehicle

 

who fails to produce evidence of insurance under this subsection

 

when requested to produce that evidence or who fails to have motor


 

vehicle insurance for the vehicle as required under chapter 31 of

 

the insurance code of 1956, 1956 PA 218, MCL 500.3101 to 500.3179,

 

is responsible for a civil infraction.

 

     (2)  A  Unless the insurance verification system developed

 

under sections 520a to 520d shows otherwise, a certificate of

 

insurance, issued by an insurance company, that certifies that the

 

security that meets the requirements of sections 3101  and  to 3102

 

of the insurance code of 1956, 1956 PA 218, MCL 500.3101  and  to

 

500.3102, is in force shall be accepted as prima facie evidence

 

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

 

certificate of insurance until the expiration date shown on the

 

certificate. The certificate, in addition to describing the motor

 

vehicles for which insurance is in effect, shall state the name of

 

each person named on the policy, policy declaration, or a

 

declaration certificate whose operation of the vehicle would cause

 

the liability coverage of that insurance to become void. A police

 

officer with access to the motor vehicle insurance verification

 

system developed under sections 520a to 520d shall verify that a

 

motor vehicle is insured at the time the owner or operator is asked

 

to produce a certificate of insurance.

 

     (3) If, before the appearance date on the citation, the person

 

submits proof to the court that the motor vehicle had insurance

 

meeting the requirements of sections 3101  and  to 3102 of the

 

insurance code of 1956, 1956 PA 218, MCL 500.3101  and  to

 

500.3102, at the time the violation of subsection (1) occurred, all

 

of the following apply:

 

     (a) The court shall not assess a fine or costs.


 

     (b) The court shall not cause an abstract of the court record

 

to be forwarded to the secretary of state.

 

     (c) The court may assess a fee of not more than $25.00, which

 

shall be paid to the court funding unit.

 

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

 

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

 

which the civil infraction determination is entered may require the

 

person to surrender his or her operator's or chauffeur's license

 

unless proof that the vehicle has insurance meeting the

 

requirements of sections 3101  and  to 3102 of the insurance code

 

of 1956, 1956 PA 218, MCL 500.3101  and  to 500.3102, is submitted

 

to the court. If the court requires the license to be surrendered,

 

the court shall order the secretary of state to suspend the

 

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

 

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

 

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

 

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

 

beginning with the date on which a person is determined to be

 

responsible for the civil infraction for a period of 30 days or

 

until proof of insurance meeting the requirements of sections 3101  

 

and  to 3102 of the insurance code of 1956, 1956 PA 218, MCL

 

500.3101  and  to 500.3102, is submitted to the secretary of state,

 

whichever occurs later. A person who submits proof of insurance to

 

the secretary of state under this subsection shall pay a service

 

fee of $25.00 to the secretary of state. The person shall not be

 

required to be examined as set forth in section 320c and shall not

 

be required to pay a replacement license fee.


 

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

 

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

 

which the civil infraction determination is entered shall notify

 

the secretary of state of the vehicle registration number and the

 

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

 

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

 

on a form approved by the supreme court administrator. Upon

 

receipt, the secretary of state shall immediately enter this

 

information in the records of the department. The secretary of

 

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

 

of the vehicle involved in the violation or allow the purchase of a

 

new registration plate for the vehicle involved in the violation

 

until the owner meets the requirements of section 227a or unless

 

the vehicle involved in the violation is transferred or sold to a

 

person other than the owner's spouse, mother, father, sister,

 

brother, or child.

 

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

 

produces false evidence under this section is guilty of a

 

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

 

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

 

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

 

to section 320a for a violation of this section.

 

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

 

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

 

or a foreign country or province.

 

     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. 791.                                   

 

         

 

     (b) Senate Bill No. 792.