September 18, 2013, Introduced by Reps. Nesbitt, Poleski, Pscholka, Lori and Lyons and referred to the Committee on Insurance.
A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
by amending sections 227 and 328 (MCL 257.227 and 257.328), section
227 as amended by 2011 PA 92 and section 328 as amended by 2004 PA
52.
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), 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, the
department of state police as provided in subsection (6), or under
an order by a court of competent jurisdiction in connection with a
claim or fraud investigation or prosecution.
(5) If a transmission to the secretary of state of vehicle
policy information does not show that a vehicle registered pursuant
to this section is covered by a policy of insurance, and the
vehicle identification number of that vehicle is not transmitted to
the secretary of state by an insurer within 30 days after the first
transmission showing that the vehicle is not covered by a policy of
insurance, the secretary of state shall send a notice to the
registrant of the vehicle that the registration for that vehicle
will be canceled unless the registrant presents a valid proof of
vehicle insurance at a branch office no later than 10 days after
the date of the notice.
(6) The secretary of state shall make the vehicle policy
information received under subsection (4) available to the
department of state police for the purpose of determining whether
evidence that a motor vehicle is insured exists under section 328.
(7) (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.
Sec.
328. (1) The Except as
otherwise provided in subsection
(9), 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
subsection
(9) and section 907(16), 907(15), an
owner or operator
of a motor vehicle who fails to produce evidence of insurance upon
request
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 3101 and 3102 of the insurance code of
1956,
1956 PA 218, MCL 500.3101 and 500.3102, is in force shall be
accepted
as is 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 must state 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 a citation issued
under
subsection (1), the person defendant submits proof to the
court that the motor vehicle had insurance meeting the requirements
of sections 3101 and 3102 of the insurance code of 1956, 1956 PA
218, MCL 500.3101 and 500.3102, 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 forward
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 3101 and 3102 of the insurance code of
1956, 1956 PA 218, MCL 500.3101 and 500.3102, 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 an abstract of the court record 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 the 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 3101 and 3102 of the insurance code of 1956, 1956 PA 218,
MCL 500.3101 and 500.3102, 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 under
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 A notification under this subsection 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
under 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.
(9) If policy information for the motor vehicle is available
in electronic format to the police officer at the time of his or
her request under subsection (1), the owner or operator is not
responsible for a civil infraction under subsection (1).