SENATE BILL NO. 8

January 15, 2019, Introduced by Senator LUCIDO and referred to the Committee on Insurance and Banking.

"Michigan vehicle code,"

by amending section 227a (MCL 257.227a), as added by 1995 PA 287.

the people of the state of michigan enact:

Sec. 227a. (1) If a court has notified the secretary of state of a vehicle registration number as provided in section 328(4) 328(5) and if the owner has not secured proof that the vehicle involved in the violation is currently insured under chapter 31 of the insurance code of 1956, Act No. 218 of the Public Acts of 1956, being sections 1956 PA 218, MCL 500.3101 to 500.3179, of the Michigan Compiled Laws, the secretary of state shall not renew, replace, or transfer 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 or the owner's representative appears at a branch office and does both of the following:

(a) Shows a certified statement from an automobile insurer on a standard form prescribed by the commissioner director of the department of insurance and financial services under section 3102 of the insurance code of 1956, 1956 PA 218, MCL 500.3102, that the vehicle involved in the violation is currently insured under a prepaid noncancelable policy for a period of not less than 6 months. under chapter 31 of Act No. 218 of the Public Acts of 1956.

(b) Pays a fee of $50.00 in addition to any other fee required by law, of which $25.00 shall be allocated to the secretary of state to defray the costs of administering this section.

(2) The secretary of state may cancel the registration of a motor vehicle under either any of the following circumstances:

(a) The secretary of state receives notice that a court has determined that a vehicle involved in the violation was not insured at the time of the violation as required by chapter 31 of Act No. 218 of the Public Acts of 1956, at the time of registration.the insurance code of 1956, 1956 PA 218, MCL 500.3101 to 500.3179.

(b) The secretary of state receives notice that a court has determined that the owner or the owner's representative presented a certificate of insurance that was forged, altered, fraudulent, or counterfeit when insurance was required by this act.

(c) The department of insurance and financial services has notified the secretary of state to cancel a vehicle registration under section 5 of the vehicle insurance verification act.

(3) Before a cancellation occurs under subsection (2), (2)(a) or (b), the person who will be affected by the cancellation shall must be given notice and an opportunity to be heard.

Enacting section 1. This amendatory act takes effect 1 year after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect unless Senate Bill No. 7

of the 100th Legislature is enacted into law.