HOUSE BILL No. 5845


     May 25, 2000, Introduced by Reps. Pappageorge, Kukuk, Jellema, Stamas, Caul, Jelinek, Geiger, Stallworth, Pumford, Mead,
Cameron Brown, Pestka, Kelly, Tesanovich, Clarke, Godchaux and Jansen and referred to the Committee on Appropriations.


        A bill to amend 1965 PA 198, entitled

   "Motor vehicle accident claims act,"

   by amending the title and sections 3 and 3a (MCL 257.1103 and

   257.1103a).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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                                    TITLE

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           An act providing for the establishment, maintenance, and

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      administration of a motor vehicle accident claims fund for the

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      payment of damages for injury to or death of certain persons or

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      property damage arising out of the ownership, maintenance, or use

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      of motor vehicles in the state in certain cases AND FOR PAYMENTS

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      AS PROVIDED FOR BY LAW; and to provide penalties for violation of

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      this act.

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           Sec. 3.  (1) There shall be a fund to be known as the motor

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      vehicle accident claims fund.  A detailed financial statement of


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      the condition of the fund shall be published by the secretary of

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      state annually.  This fund shall be subject to a financial audit

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      by the auditor general.  The treasurer shall deposit or invest an

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      unappropriated portion of the fund, in the same manner and

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      subject to all provisions of law with respect to the deposit or

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      investment of state funds by the state treasurer, and interest

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      earned by portions of the fund deposited or invested by the trea-

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      surer shall be collected  by him  and placed to the credit of the

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      fund.  MONEY IN THE FUND SHALL BE EXPENDED AS PROVIDED FOR IN

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      THIS ACT AND AS PROVIDED FOR BY LAW. Unexpended  moneys  MONEY

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      appropriated from the fund shall revert to the fund at the end of

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      each fiscal year.

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           (2) The commissioner of  insurance shall have the power of

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      visitation and examination of the affairs of  THE OFFICE OF

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      FINANCIAL AND INSURANCE SERVICES MAY VISIT AND EXAMINE the fund

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      as though the fund were an insurer and  shall  MAY report to the

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      governor and the legislature on its financial position, actuarial

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      soundness, and general condition.  A copy of the report shall be

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      filed with the auditor general for  his  use in auditing the

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      fund.  The fund shall file an annual statement relating to busi-

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      ness and affairs on a form the commissioner shall prescribe.

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           (3)  As of the close of the fiscal year ending June 30,

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      1970, and at  AT the end of each fiscal year,  thereafter, 
   the

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       insurance bureau of the department of commerce shall  OFFICE OF

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      FINANCIAL AND INSURANCE SERVICES MAY examine the records of the

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      fund in accordance with insurance accounting principles and file

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       its  A report with the secretary before the succeeding April 1.



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            (4) A person who furnishes false evidence of insurance upon

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      the issuance or transfer of registration under this section is

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      guilty of a misdemeanor.  In addition his operator's or

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      chauffeur's license or motor vehicle registration, or both, may

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      be suspended by the secretary for not more than 1 year. 

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           (4)  (5)  A person shall not use records or information

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      produced as a result of the administration of this act for the

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      purpose of soliciting the sale or purchase of motor vehicle

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      liability insurance.  A person who violates this subsection is

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      guilty of a misdemeanor and shall be imprisoned for not more than

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      1 year, or fined not more than $1,000.00, or both.

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           Sec. 3a.  (1)  Upon the effective date of this amendatory

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      act, the state treasurer is authorized to transfer the sum of

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      $20,000,000.00 from  AT THE CLOSE OF BUSINESS ON SEPTEMBER 30,

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      2001, THE BALANCE OF the motor vehicle accident CLAIMS fund IS

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      TRANSFERRED to the state general fund.  The  state accounting

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      division  DEPARTMENT OF MANAGEMENT AND BUDGET shall treat the

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      transfer as revenue from other funds.

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           (2)  To reimburse the motor vehicle accident claims fund for

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      the cash transferred pursuant to subsection (1), there is appro-

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      priated from the general fund for the fiscal year beginning July

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      1, 1976, the sum of $15,000,000.00 and for the fiscal year begin-

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      ning July 1, 1977, the sum of $5,000,000.00.  There is appropri-

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      ated from the general fund each fiscal year from the effective

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      date of this act through the fiscal year beginning July 1, 1976,

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      an amount sufficient to pay any due and payable claims which

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      exceed available revenue of the motor vehicle accident claims



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      fund, which amount shall be deducted from the subsequent

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      $5,000,000.00 appropriation contained in this section to the

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      motor vehicle accident claims fund.  BEGINNING SEPTEMBER 30, 2002

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      AND ON THE LAST DAY OF EACH FISCAL YEAR THEREAFTER, THE BALANCE

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      OF THE MONEY IN THE MOTOR VEHICLE ACCIDENT CLAIMS FUND IS TRANS-

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      FERRED TO THE STATE GENERAL FUND.  THE DEPARTMENT OF MANAGEMENT

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      AND BUDGET SHALL TREAT THE TRANSFER AS REVENUE FROM OTHER FUNDS.










































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