PREVENTION ASSESSMENT
House Bills 5209 and 5210
Sponsor: Rep. Andrew Richner
Committee: Insurance and Financial
Services
Complete to 2-1-00
A SUMMARY OF HOUSE BILLS 5209 AND 5210 AS INTRODUCED 12-10-99
The Michigan Automobile Theft Prevention Authority was created by Public Act 10 of 1986 to provide financial support to a variety of efforts aimed at reducing automobile theft. It is funded, generally speaking, with a $1 per car annual assessment collected by automobile insurance companies as part of auto insurance premiums. The assessment is levied only on private passenger automobiles (and not commercial vehicles, trucks, or motorcycles). House Bills 5209 and 5210 would alter the funding mechanism for the authority by requiring the secretary of state to collect a $1 assessment on all vehicles at registration. The assessment would be then be transferred to the Automobile Theft Prevention Authority. (While housed in the Department of State Police, the authority is run by a seven-member board representing insurance companies, law enforcement, and consumers. Money in the theft prevention fund is not considered state money.)
House Bill 5209 would amend the Michigan Vehicle Code (MCL 257.801i) to require the secretary of state to collect the assessment and transfer it to the authority. House Bill 5210 would amend the Insurance Code (MCL 500.6107) to eliminate the current assessment collected by insurance companies and to make other related changes. The bills are tie-barred to one another and carry an effective date of January 1, 2000.
Analyst: C. Couch