SENATE BILL No. 1028

 

 

May 23, 2018, Introduced by Senator ZORN and referred to the Committee on Insurance.

 

 

     A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending section 227 (MCL 257.227), as amended by 2011 PA 92.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 227. (1) Application for renewal of a vehicle

 

registration shall be made by the owner upon proper application and

 

by payment of the registration fee for the vehicle, as provided by

 

law.

 

     (2) Every application shall be accompanied by the certificate

 

of title pertaining to the vehicle, showing ownership in the person

 

applying for registration at the time of the application. The

 

secretary of state may waive the presentation of the certificate of

 

title.

 

     (3) Every application for renewal of a motor vehicle

 


registration shall be accompanied by proof of vehicle insurance in

 

a form determined by the secretary of state.

 

     (4) Notwithstanding subsection (3), and subject to subsection

 

(5), the secretary of state shall accept as proof of vehicle

 

insurance a transmission of the applicant's vehicle policy

 

information for an insured vehicle for which vehicle registration

 

is sought. The secretary of state may determine in what format and

 

on what timeline the secretary of state will receive vehicle policy

 

information, which shall not be required more frequently than every

 

14 days. In determining the format under this subsection, the

 

secretary of state shall consult with insurers. The transmission to

 

the secretary of state of the vehicle policy information is proof

 

of insurance to the secretary of state for motor vehicle

 

registration purposes only and is not evidence that a policy of

 

insurance actually exists between an insurer and an individual.

 

Vehicle policy information submitted by an insurer and received by

 

the secretary of state under this subsection is confidential, is

 

not subject to the freedom of information act, 1976 PA 442, MCL

 

15.231 to 15.246, and shall not be disclosed to any person except

 

the department of community health for purposes of 2006 PA 593, MCL

 

550.281 to 550.289, or under an order by a court of competent

 

jurisdiction in connection with a claim or fraud investigation or

 

prosecution.

 

     (5) Subsection (4) does not apply after the director of the

 

department of insurance and financial services certifies, by a

 

certification posted on the department of insurance and financial

 

services's website, that the electronic insurance verification


system established under the real-time electronic insurance

 

verification act is operational. After the certification is posted,

 

the secretary of state may access the electronic insurance

 

verification system to confirm proof of vehicle insurance for

 

purposes of this section.

 

     (6) As used in this section, "policy information" means the

 

information an automobile insurer is required to supply to the

 

secretary of state under section 3101a of the insurance code of

 

1956, 1956 PA 218, MCL 500.3101a.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No. 819 of the 99th Legislature is enacted into

 

law.