Bill Text: MI HB5032 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Traffic control; violations; notification to law enforcement information network (LEIN) of expired, terminated, or canceled automobile insurance; require of secretary of state, and make other revisions. Amends secs. 221, 227a, 328 & 907 of 1949 PA 300 (MCL 257.221 et seq.). TIE BAR WITH: HB 5031'15

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-10-29 - Printed Bill Filed 10/29/2015 [HB5032 Detail]

Download: Michigan-2015-HB5032-Introduced.html

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HOUSE BILL No. 5032

October 28, 2015, Introduced by Rep. Lucido and referred to the Committee on Insurance.

 

     A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending sections 221, 227a, 328, and 907 (MCL 257.221,

 

257.227a, 257.328, and 257.907), section 221 as amended by 1998 PA

 

64, section 227a as added by 1995 PA 287, section 328 as amended by

 

2015 PA 135, and section 907 as amended by 2015 PA 126.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 221. (1) The secretary of state shall create and maintain

 

a computerized central file of all applications for registration of

 

motor vehicles and is not required to retain any other record of

 

the application. The computerized central file shall be interfaced

 

with the law enforcement information network as provided in the

L.E.I.N. C.J.I.S. policy council act, of 1974, 1974 PA 163, MCL

 

28.211 to 28.216.28.215.

 

     (2) The secretary of state shall preserve the records

 

described in subsection (1) for 3 years after the date of

 

registration. The records shall be available to state and federal

 

agencies and the friend of the court as provided under section 4 of

 

the L.E.I.N.C.J.I.S. policy council act, of 1974, 1974 PA 163, MCL

 

28.214, and rules promulgated under that section, and to the public

 

through the secretary of state's commercial look-up service.

 

     (3) Upon receipt of a notification that an automobile

 

insurance policy has expired without being renewed or is terminated

 

or that a policyholder cancels his or her automobile insurance

 

policy as provided in section 3101a of the insurance code of 1956,

 

1956 PA 218, MCL 500.3101a, the secretary of state shall enter that

 

information into the law enforcement information network.

 

     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 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 500.3101 to 500.3179 of the Michigan Compiled Laws,

 

1956 PA 218, MCL 500.3101 to 500.3179, 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 of insurance 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.the

 

insurance code of 1956, 1956 PA 218, MCL 500.3101 to 500.3179.

 

     (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 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

 

as required by chapter 31 of Act No. 218 of the Public Acts of

 

1956, at the time of registration.

 

     (b) The if 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.

 

     (3) The secretary of state shall revoke the registration of a

 

vehicle if the automobile insurance policy for that vehicle has

 

expired without being renewed or is terminated or the owner cancels

 

his or her automobile insurance policy as provided in section 3101a

 

of the insurance code of 1956, 1956 PA 218, MCL 500.3101a.

 

     (4) (3) Before a cancellation occurs under subsection (2), the

 

person who will be affected by the cancellation shall be given

 

notice and an opportunity to be heard.

 

     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,

 

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(15), an owner or operator of a motor vehicle

 

who fails to produce evidence of insurance upon request under this

 

subsection 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 guilty of

 

a civil infraction. misdemeanor punishable by imprisonment for not

 

more than 1 year or a fine of not more than $500.00 for a first

 

offense, and a fine of not more than $1,000.00 for a second or

 

subsequent offense, or both. 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. A police officer may require the person

 

to electronically forward the electronic copy of the certificate of

 

insurance to a specified location provided by the police officer.

 

The police officer may then view the electronic copy of the

 

certificate of insurance in a setting in which it is safe for the

 

officer to verify that the information contained in the electronic

 

copy of the certificate of insurance is valid and accurate. This

 

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

 

law enforcement agency is not liable for damage to or loss of 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 or loss occurred.

 

     (2) A Unless a search of the law enforcement information

 

network shows that the automobile insurance policy for a motor

 

vehicle has expired without being renewed or is terminated or the

 

policyholder has canceled his or her automobile insurance, 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 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,

 

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 a citation issued under

 

subsection (1), the 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 forward an abstract of the court

 

record 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

 

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 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

 

under section 320c and shall not be required to pay a replacement

 

license fee.

 

     (3) If an owner or operator of a motor vehicle fails, upon

 

request of a police officer, to produce 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, or if a search of the law

 

enforcement information network shows that the automobile insurance

 

policy for the motor vehicle has expired without being renewed or

 

is terminated or the policyholder has canceled his or her

 

automobile insurance policy, the police officer shall do all of the

 

following:

 

     (a) Immediately confiscate the motor vehicle's registration

 

plate and destroy it.

 

     (b) Impound the motor vehicle.

 

     (c) Notify the secretary of state through the law enforcement

 

information network in a form prescribed by the secretary of state

 

that the registration plate was confiscated and destroyed, and that

 

the motor vehicle was impounded.

 

     (4) The owner of a motor vehicle impounded under subsection

 

(3) is liable for the expenses incurred in the removal and storage

 

of the motor vehicle whether or not it is returned to him or her.

 

The motor vehicle shall be returned to the owner only if the owner

 

pays the expenses of removal and storage. If redemption is not made

 

or the vehicle is not returned as described under this subsection,

 

it shall be considered an abandoned vehicle and disposed of under

 

section 252a.

 

     (5) If an owner or operator of a motor vehicle is determined

 

to be responsible for found guilty of 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. 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 under

 

section 320a for a violation of this section.

 

     (7) (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. 907. (1) A violation of this act, or a local ordinance

 

substantially corresponding to a provision of this act, that is

 

designated a civil infraction shall not be considered a lesser

 

included offense of a criminal offense.

 

     (2) If a person is determined under sections 741 to 750 to be

 

responsible or responsible "with explanation" for a civil

 

infraction under this act or a local ordinance substantially

 

corresponding to a provision of this act, the judge or district

 

court magistrate may order the person to pay a civil fine of not

 

more than $100.00 and costs as provided in subsection (4). However,

 

if the civil infraction was a moving violation that resulted in an

 

at-fault collision with another vehicle, a person, or any other

 

object, the civil fine ordered under this section shall be

 

increased by $25.00 but the total civil fine shall not exceed

 

$100.00. However, for a violation of section 602b, the person shall

 

be ordered to pay costs as provided in subsection (4) and a civil

 

fine of $100.00 for a first offense and $200.00 for a second or

 

subsequent offense. For a violation of section 674(1)(s) or a local

 

ordinance substantially corresponding to section 674(1)(s), the

 

person shall be ordered to pay costs as provided in subsection (4)

 

and a civil fine of not less than $100.00 or more than $250.00. For

 

a violation of section 676c, the person shall be ordered to pay

 

costs as provided in subsection (4) and a civil fine of $1,000.00.

 

For a violation of section 328, the civil fine ordered under this

 

subsection shall be not more than $50.00. For a violation of

 

section 710d, the civil fine ordered under this subsection shall

 

not exceed $10.00, subject to subsection (12). For a violation of

 

section 710e, the civil fine and court costs ordered under this

 

subsection shall be $25.00. For a violation of section 682 or a

 

local ordinance substantially corresponding to section 682, the

 

person shall be ordered to pay costs as provided in subsection (4)

 

and a civil fine of not less than $100.00 or more than $500.00. For

 

a violation of section 240, the civil fine ordered under this

 

subsection shall be $15.00. For a violation of section 252a(1), the

 

civil fine ordered under this subsection shall be $50.00. For a

 

violation of section 676a(3), the civil fine ordered under this

 

section shall be not more than $10.00. For a first violation of

 

section 319f(1), the civil fine ordered under this section shall be

 

not less than $2,500.00 or more than $2,750.00; for a second or

 

subsequent violation, the civil fine shall be not less than

 

$5,000.00 or more than $5,500.00. For a violation of section

 

319g(1)(a), the civil fine ordered under this section shall be not

 

more than $10,000.00. For a violation of section 319g(1)(g), the

 

civil fine ordered under this section shall be not less than

 

$2,750.00 or more than $25,000.00. Permission may be granted for

 

payment of a civil fine and costs to be made within a specified

 

period of time or in specified installments, but unless permission

 

is included in the order or judgment, the civil fine and costs

 

shall be payable immediately.

 

     (3) Except as provided in this subsection, if a person is

 

determined to be responsible or responsible "with explanation" for

 

a civil infraction under this act or a local ordinance

 

substantially corresponding to a provision of this act while

 

driving a commercial motor vehicle, he or she shall be ordered to

 

pay costs as provided in subsection (4) and a civil fine of not

 

more than $250.00.

 

     (4) If a civil fine is ordered under subsection (2) or (3),

 

the judge or district court magistrate shall summarily tax and

 

determine the costs of the action, which are not limited to the

 

costs taxable in ordinary civil actions, and may include all

 

expenses, direct and indirect, to which the plaintiff has been put

 

in connection with the civil infraction, up to the entry of

 

judgment. Costs shall not be ordered in excess of $100.00. A civil

 

fine ordered under subsection (2) or (3) shall not be waived unless

 

costs ordered under this subsection are waived. Except as otherwise

 

provided by law, costs are payable to the general fund of the

 

plaintiff.

 

     (5) In addition to a civil fine and costs ordered under

 

subsection (2) or (3) and subsection (4) and the justice system

 

assessment ordered under subsection (13), the judge or district

 

court magistrate may order the person to attend and complete a

 

program of treatment, education, or rehabilitation.

 

     (6) A district court magistrate shall impose the sanctions

 

permitted under subsections (2), (3), and (5) only to the extent

 

expressly authorized by the chief judge or only judge of the

 

district court district.

 

     (7) Each district of the district court and each municipal

 

court may establish a schedule of civil fines, costs, and

 

assessments to be imposed for civil infractions that occur within

 

the respective district or city. If a schedule is established, it

 

shall be prominently posted and readily available for public

 

inspection. A schedule need not include all violations that are

 

designated by law or ordinance as civil infractions. A schedule may

 

exclude cases on the basis of a defendant's prior record of civil

 

infractions or traffic offenses, or a combination of civil

 

infractions and traffic offenses.

 

     (8) The state court administrator shall annually publish and

 

distribute to each district and court a recommended range of civil

 

fines and costs for first-time civil infractions. This

 

recommendation is not binding upon the courts having jurisdiction

 

over civil infractions but is intended to act as a normative guide

 

for judges and district court magistrates and a basis for public

 

evaluation of disparities in the imposition of civil fines and

 

costs throughout the state.

 

     (9) If a person has received a civil infraction citation for

 

defective safety equipment on a vehicle under section 683, the

 

court shall waive a civil fine, costs, and assessments upon receipt

 

of certification by a law enforcement agency that repair of the

 

defective equipment was made before the appearance date on the

 

citation.

 

     (10) A default in the payment of a civil fine or costs ordered

 

under subsection (2), (3), or (4) or a justice system assessment

 

ordered under subsection (13), or an installment of the fine,

 

costs, or assessment, may be collected by a means authorized for

 

the enforcement of a judgment under chapter 40 of the revised

 

judicature act of 1961, 1961 PA 236, MCL 600.4001 to 600.4065, or

 

under chapter 60 of the revised judicature act of 1961, 1961 PA

 

236, MCL 600.6001 to 600.6098.

 

     (11) If a person fails to comply with an order or judgment

 

issued under this section within the time prescribed by the court,

 

the driver's license of that person shall be suspended under

 

section 321a until full compliance with that order or judgment

 

occurs. In addition to this suspension, the court may also proceed

 

under section 908.

 

     (12) The court may waive any civil fine, cost, or assessment

 

against a person who received a civil infraction citation for a

 

violation of section 710d if the person, before the appearance date

 

on the citation, supplies the court with evidence of acquisition,

 

purchase, or rental of a child seating system meeting the

 

requirements of section 710d.

 

     (13) In addition to any civil fines or costs ordered to be

 

paid under this section, the judge or district court magistrate

 

shall order the defendant to pay a justice system assessment of

 

$40.00 for each civil infraction determination, except for a

 

parking violation or a violation for which the total fine and costs

 

imposed are $10.00 or less. Upon payment of the assessment, the

 

clerk of the court shall transmit the assessment collected to the

 

state treasury to be deposited into the justice system fund created

 

in section 181 of the revised judicature act of 1961, 1961 PA 236,

 

MCL 600.181. An assessment levied under this subsection is not a

 

civil fine for purposes of section 909.

 

     (14) If a person has received a citation for a violation of

 

section 223, the court shall waive any civil fine, costs, and

 

assessment, upon receipt of certification by a law enforcement

 

agency that the person, before the appearance date on the citation,

 

produced a valid registration certificate that was valid on the

 

date the violation of section 223 occurred.

 

     (15) If a person has received a citation for a violation of

 

section 328(1) for failing to produce a certificate of insurance

 

under section 328(2), the court may waive the fee described in

 

section 328(3)(c) and shall waive any fine, costs, and any other

 

fee or assessment otherwise authorized under this act upon receipt

 

of verification by the court that the person, before the appearance

 

date on the citation, produced valid proof of insurance that was in

 

effect at the time the violation of section 328(1) occurred.

 

Insurance obtained subsequent to the time of the violation does not

 

make the person eligible for a waiver under this subsection.

 

     (15) (16) If a person is determined to be responsible or

 

responsible "with explanation" for a civil infraction under this

 

act or a local ordinance substantially corresponding to a provision

 

of this act and the civil infraction arises out of the ownership or

 

operation of a commercial quadricycle, he or she shall be ordered

 

to pay costs as provided in subsection (4) and a civil fine of not

 

more than $500.00.

 

     (16) (17) As used in this section, "moving violation" means an

 

act or omission prohibited under this act or a local ordinance

 

substantially corresponding to this act that involves the operation

 

of a motor vehicle and for which a fine may be assessed.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5031 (request no.

 

03954'15) of the 98th Legislature is enacted into law.