HOUSE BILL No. 6265


     August 13, 2002, Introduced by Rep. Richner and referred to the Committee on Insurance and Financial Services.


        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   by amending section 6107 (MCL 500.6107), as added by 1992 PA

   174.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
             Sec. 6107.  (1) Prior to April 1 of each year, each insurer

 2
        engaged in writing insurance coverages which provide the security

 3
        required by section 3101 (1) within this state, as a condition of

 4
        its authority to transact insurance in this state, shall pay to

 5
        the authority an assessment equal to $1.00 multiplied by the

 6
        insurer's total earned car years of insurance providing the

 7
        security required by section 3101 (1) written in this state

 8
        during the immediately preceding calendar year.

 9
             (1)  (2)  Money received  pursuant to subsection (1)  FROM

10
        THE SECRETARY OF STATE PURSUANT TO SECTION 801J OF THE MICHIGAN


   06676'02                                                 DKH                                   2

 1
        VEHICLE CODE, 1949 PA 300, MCL 257.801J, and all other money

 2
        received by the authority, shall be segregated and placed in a

 3
        fund to be known as the automobile theft prevention fund.  The

 4
        automobile theft prevention fund shall be administered by the

 5
        authority.

 6
             (2)  (3)  Money in the automobile theft prevention fund

 7
        shall be expended in the following order of priority:

 8
             (a) To pay the costs of administration of the authority.

 9
             (b) To achieve the purposes and objectives of this chapter,

10
        which may include, but not be limited to, the following:

11
             (i) Provide financial support to the department of state

12
        police and local law enforcement agencies for economic automobile

13
        theft enforcement teams.

14
             (ii) Provide financial support to state or local law

15
        enforcement agencies for programs designed to reduce the inci-

16
        dence of economic automobile theft.

17
             (iii) Provide financial support to local prosecutors for

18
        programs designed to reduce the incidence of economic automobile

19
        theft.

20
             (iv) Provide financial support to judicial agencies for pro-

21
        grams designed to reduce the incidence of economic automobile

22
        theft.

23
             (v) Provide financial support for neighborhood or community

24
        organizations or business organizations for programs designed to

25
        reduce the incidence of automobile theft.

26
             (vi) Conduct educational programs designed to inform

27
        automobile owners of methods of preventing automobile theft and



   06676'02                                   3

 1
        to provide equipment, for experimental purposes, to enable

 2
        automobile owners to prevent automobile theft.

 3
             (3)  (4)  Money in the automobile theft prevention fund

 4
        shall only be used for automobile theft prevention efforts and

 5
        shall be distributed based on need and efficacy as determined by

 6
        the authority.

 7
             (4)  (5)  Money in the automobile theft prevention fund

 8
        shall not be considered state money.

 9
             Enacting section 1.  This amendatory act takes effect

10
        January 1, 2003.

11
             Enacting section 2.  This amendatory act does not take

12
        effect unless Senate Bill No. _____ or House Bill No. 6264

13
        (request no. 06676'02 a) of the 91st Legislature is enacted into

14
        law.





























   06676'02          Final page.                            DKH