HOUSE BILL No. 4193

 

February 12, 2015, Introduced by Reps. Nesbitt, Sheppard, Maturen, Iden, Gay-Dagnogo, Kelly, LaVoy, Zemke and Tedder 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 (5), or under

 

an order by a court of competent jurisdiction in connection with a

 

claim or fraud investigation or prosecution.

 

     (5) 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.

 

     (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 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 under 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), 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. If a person displays an electronic copy of his or her

 

certificate of insurance using an electronic device, the police

 

officer shall only view the electronic copy of the certificate of

 

insurance and shall not manipulate the electronic device to view

 

any other information on the electronic device. A person who

 

displays an electronic copy of his or her certificate of insurance

 

using an electronic device as provided in this subsection shall not

 

be presumed to have consented to a search of the electronic device.

 

This state, a law enforcement agency, or an employee of this state

 

or a law enforcement agency is not liable for damage to an


 

electronic device that occurs as a result of a police officer's

 

viewing an electronic copy of a certificate of insurance in the

 

manner provided in this section, regardless of whether the police

 

officer or the owner or operator of the vehicle was in possession

 

of the electronic device at the time the damage occurred.

 

     (2) A certificate of insurance, in paper or electronic form

 

and 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, if

 

applicable, 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.