HOUSE BILL No. 4564


     April 8, 1997, Introduced by Reps. McNutt, Hammerstrom and Voorhees and referred to the Committee on Insurance.


        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


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 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 of  Act

 8     No. 218 of the Public Acts of 1956, being sections 500.3101 and

 9     500.3102 of the Michigan Compiled Laws  THE INSURANCE CODE OF

10    1956, 1956 PA 218, MCL 500.3101 AND 500.3102, is in force shall

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

12    for the motor vehicle described in the certificate of insurance

13    until the expiration date shown on the certificate.  The certifi-

14    cate  , in addition to describing the motor vehicles for which

15     insurance is in effect, shall state the  SHALL CONTAIN ALL OF THE

16    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 INSUR-

21    ANCE 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



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 1    which the civil infraction determination is entered  may  SHALL

 2    require the person to surrender his or her operator's or

 3    chauffeur's license unless proof that the vehicle has insurance

 4    meeting the requirements of sections 3101 and 3102 of  Act

 5     No. 218 of the Public Acts of 1956  THE INSURANCE CODE OF 1956,

 6    1956 PA 218, MCL 500.3101 AND 500.3102, is submitted to the

 7    court.  If the person submits proof to the court that the vehicle

 8    has insurance meeting the requirements of sections 3101 and 3102

 9    of  Act No. 218 of the Public Acts of 1956  THE INSURANCE CODE OF

10    1956, 1956 PA 218, MCL 500.3101 AND 500.3102, in addition to the

11    civil fine and costs provided by section 907, the court shall

12    assess a fee of $25.00.  If the court requires the license to be

13     surrendered, the  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 of  Act No. 218 of the

22     Public Acts of 1956  THE INSURANCE CODE OF 1956, 1956 PA 218, MCL

23    500.3101 AND 500.3102, is submitted to the secretary of state,

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

25    to the secretary of state under this subsection shall pay a serv-

26    ice fee of $25.00 to the secretary of state.  The person shall





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

 2    shall not be required to pay a replacement 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 pur-

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

15    violation until the owner meets the requirements of section 227a

16    or unless the vehicle involved in the violation is transferred or

17    sold to a person other than the owner's spouse, mother, father,

18    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 misde-

21    meanor, punishable by imprisonment for not more than 1 year, or a

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

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

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

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

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

27    state or a foreign country or province.



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 1         SEC. 520A.  (1) THE SECRETARY OF STATE SHALL SEND A NOTICE

 2    TO EACH REGISTERED OWNER OF A MOTOR VEHICLE REGISTERED PURSUANT

 3    TO THIS ACT IF THE SECRETARY OF STATE HAS BEEN INFORMED BY THE

 4    INSURER THAT THE POLICY OF INSURANCE FOR THE MOTOR VEHICLE HAS

 5    EXPIRED WITHOUT BEING RENEWED OR HAS BEEN TERMINATED OR CANCELED

 6    AND THE SECRETARY OF STATE HAS NOT BEEN INFORMED BY THE REGIS-

 7    TERED OWNER OF THE MOTOR VEHICLE THAT THE MOTOR VEHICLE IS

 8    INSURED UNDER ANOTHER POLICY OF INSURANCE.

 9         (2) A NOTICE ISSUED PURSUANT TO THIS SECTION SHALL BE ON A

10    FORM PRESCRIBED BY THE SECRETARY OF STATE AND SHALL CONTAIN BOTH

11    OF THE FOLLOWING:

12         (A) A STATEMENT THAT THE INSURER HAS INFORMED THE SECRETARY

13    OF STATE THAT THE POLICY OF INSURANCE FOR THE MOTOR VEHICLE HAS

14    EXPIRED WITHOUT BEING RENEWED OR HAS BEEN TERMINATED OR CANCELED

15    AND THE SECRETARY OF STATE HAS NOT BEEN INFORMED BY THE REGIS-

16    TERED OWNER OF THE MOTOR VEHICLE THAT THE MOTOR VEHICLE IS

17    INSURED UNDER ANOTHER POLICY OF INSURANCE.

18         (B) A STATEMENT THAT IF A REGISTERED OWNER OF THE MOTOR

19    VEHICLE FAILS TO RESPOND TO THE NOTICE BEFORE THE EXPIRATION OF

20    14 DAYS AFTER THE NOTICE WAS ISSUED AND FAILS TO PRESENT PROOF TO

21    THE SECRETARY OF STATE THAT IS SATISFACTORY TO THE SECRETARY OF

22    STATE THAT THE MOTOR VEHICLE IS INSURED PURSUANT TO SECTION 520,

23    THE SECRETARY OF STATE WILL CANCEL THE REGISTRATION OF THE MOTOR

24    VEHICLE AND WILL NOT ISSUE A NEW REGISTRATION FOR THE MOTOR VEHI-

25    CLE UNTIL AN OWNER OF THE MOTOR VEHICLE PROVIDES PROOF TO THE

26    SECRETARY OF STATE THAT IS SATISFACTORY TO THE SECRETARY OF STATE

27    THAT THE MOTOR VEHICLE IS INSURED PURSUANT TO SECTION 520.



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 1         (3) THE SECRETARY OF STATE SHALL CANCEL THE REGISTRATION OF

 2    A MOTOR VEHICLE UNLESS A REGISTERED OWNER OF THE MOTOR VEHICLE

 3    PROVIDES PROOF OF INSURANCE TO THE SECRETARY OF STATE AS REQUIRED

 4    UNDER THIS SECTION.

 5         Enacting section 1.  This amendatory act does not take

 6    effect unless Senate Bill No. _______ or House Bill No. _______

 7    (request no. 02259'97) of the 89th Legislature is enacted into

 8    law.








































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