September 25, 2008, Introduced by Senators OLSHOVE, THOMAS, ANDERSON, JELINEK, BROWN and JACOBS and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
by amending section 328 (MCL 257.328), as amended by 2004 PA 52,
and by adding section 520a.
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 certificate of insurance, issued by an insurance
company, that certifies that the security that meets the
requirements
of sections section 3101, and 3102, or 3103 of the
insurance
code of 1956, 1956 PA 218, MCL 500.3101, and 500.3102,
and 500.3103, 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 shall
contain all of the following information:
(a) The vehicle identification number.
(b) The name and address of the policyholder.
(c) The insurance policy number.
(d) The effective date and the expiration date of the
insurance policy.
(e) 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.
(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 section
3101, and 3102, or
3103 of the insurance code of 1956, 1956 PA 218, MCL
500.3101, and
500.3102, and 500.3103, 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 section 3101, and 3102, or 3103 of the
insurance
code of 1956, 1956 PA 218, MCL 500.3101, and 500.3102,
and 500.3103, 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
section 3101, and 3102, or 3103 of the insurance
code of
1956,
1956 PA 218, MCL 500.3101, and 500.3102, and 500.3103, 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.
Sec. 520a. (1) The secretary of state shall create and
maintain a central file of registered motor vehicles insured under
an automobile insurance policy meeting the requirements of section
3101, 3102, or 3103 of the insurance code of 1956, 1956 PA 218, MCL
500.3101, 500.3102, and 500.3103. The file shall contain all of the
following information for each insured vehicle:
(a) The vehicle identification number.
(b) The name and address of the policyholder.
(c) The insurance policy number.
(d) The effective date and the expiration date of the
insurance policy.
(2) The secretary of state shall send a notice to each
registered owner of a motor vehicle registered under this act if
the secretary of state has been informed by the insurer that the
policy of insurance for the motor vehicle has expired without being
renewed or has been terminated or canceled and the secretary of
state has not been informed by the registered owner of the motor
vehicle that the motor vehicle is insured under another policy of
insurance.
(3) A notice issued under this section shall be on a form
prescribed by the secretary of state and shall contain both of the
following:
(a) A statement that the insurer has informed the secretary of
state that the policy of insurance for the motor vehicle has
expired without being renewed or has been terminated or canceled
and the secretary of state has not been informed by the registered
owner of the motor vehicle that the motor vehicle is insured under
another policy of insurance.
(b) A statement that if a registered owner of the motor
vehicle fails to respond to the notice before the expiration of 14
days after the notice was issued and fails to present proof to the
secretary of state that is satisfactory to the secretary of state
that the motor vehicle is insured under section 520, the secretary
of state will cancel the registration of the motor vehicle and will
not issue a new registration for the motor vehicle until an owner
of the motor vehicle provides proof to the secretary of state that
is satisfactory to the secretary of state that the motor vehicle is
insured under section 520.
(4) The secretary of state shall cancel the registration of a
motor vehicle unless a registered owner of the motor vehicle
provides proof of insurance to the secretary of state as required
under this section.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 1544
of the 94th Legislature is enacted into law.