HOUSE BILL No. 5333

 

October 18, 2007, Introduced by Reps. Nofs, Caswell, Steil, Rick Jones, Palmer, Espinoza, Gaffney, Virgil Smith, Stahl, Rocca, Hildenbrand, Moore, Pavlov, Nitz, Proos, Brandenburg, Meekhof, Acciavatti, Calley, Agema, Meltzer, Stakoe, Moolenaar, Sheen, Booher, Caul, Johnson and Gonzales and referred to the Committee on Judiciary.

 

     A bill to amend 1949 PA 300, entitled

 

"Michigan vehicle code,"

 

by amending sections 328 and 907 (MCL 257.328 and 257.907), section

 

328 as amended by 2004 PA 52 and section 907 as amended by 2006 PA

 

298, and by adding sections 520a and 520b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 328. (1) The Before October 1, 2008, upon the request of

 

a police officer, 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.

 


After September 30, 2008, the owner of a motor vehicle who operates

 

or permits the operation of the motor vehicle upon the highways of

 

this state and who personally, or through e-registration, the mail,

 

or an agent, fails to provide to an employee of the department

 

evidence that the motor vehicle is insured 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. Subject to

 

section 907(16), an owner or operator of a motor vehicle who fails

 

to produce evidence of insurance 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 Before October 1, 2008, 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 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 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. After September 30, 2008, a

 

police officer or other authorized individual who seeks to verify

 

that a motor vehicle is insured shall access the motor vehicle

 


insurance verification system developed under section 520a. The

 

motor vehicle insurance verification system developed under section

 

520a shall automatically provide an automated verification of each

 

query to indicate whether or not motor vehicle insurance is in

 

effect at the time the query is made.

 

     (3) If, before the appearance date on the citation, the person

 

submits proof to the court that the motor vehicle had insurance

 

meeting the requirements of sections 3101 and 3102 chapter 31 of

 

the insurance code of 1956, 1956 PA 218, MCL 500.3101 and 500.3102

 

to 500.3179, 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 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 chapter 31 of the insurance

 

code of 1956, 1956 PA 218, MCL 500.3101 and 500.3102 to 500.3179,

 

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 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 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 chapter 31 of the insurance code of 1956, 1956 PA 218, MCL

 

500.3101 and 500.3102 to 500.3179, is submitted to the secretary of

 

state, whichever occurs later. A person who submits proof of

 

insurance or for whom proof of insurance is automatically provided

 

by the vehicle insurance verification system developed under

 

section 520a 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 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 notification 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 applies to the owner or

 

operator of a motor vehicle that is registered in a this state and

 

also a state other than this state or a foreign country or province

 

as those vehicles are subject to the laws of this state.

 

     (9) As used in this section, "e-registration" means

 

registration through electronic means.

 

     Sec. 520a. (1) As used in this section:

 

     (a) "NLETS" means the national law enforcement

 

telecommunications system.

 

     (b) "Unparsed data" means data that are not electronically

 

sorted by jurisdiction.

 

     (2) No later than October 1, 2008, the department of state

 

police shall establish and implement and maintain an NLETS-

 

authorized paperless verification system for motor vehicle

 

insurance coverage. The paperless verification system shall be

 

designed with the goal of identifying motor vehicles that are being

 

operated on highways in this state without the required insurance

 

coverage and shall have all of the following characteristics:

 


     (a) Provide quick, accurate, and current access to motor

 

vehicle insurance coverage information for persons and agencies

 

charged with enforcement of motor vehicle insurance requirements,

 

including, but not limited to, all of the following processes:

 

     (i) The daily gathering of unparsed data concerning motor

 

vehicle insurance coverage by insurance companies providing motor

 

vehicle insurance coverage in this state.

 

     (ii) The daily transmittal of data concerning motor vehicle

 

insurance coverage from companies described in subparagraph (i) to

 

the department of state police and that is commonly accommodated by

 

insurers for other jurisdictions, such data to be electronically

 

transmitted.

 

     (iii) The department of state police's transmittal of data

 

elements required to confirm active insurance status for

 

registration from the data elements described in subparagraph (ii)

 

to the department of state.

 

     (b) Protect the privacy of motor vehicle owners by ensuring

 

that names or addresses cannot be maintained or used to obtain

 

access to insurance status, except as otherwise required to comply

 

with section 328 and this section.

 

     (c) Protect the security and integrity of information gathered

 

and transmitted by insurers under subdivision (a) by meeting all

 

security standards of the state's NLETS system.

 

     (d) Allow the director of state police to automatically create

 

and mail a citation for a violation of section 328 to the owner of

 

a motor vehicle in other states, foreign countries, or foreign

 

provinces by means of the NLETS connection to national law

 


enforcement data.

 

     (3) The secretary of state shall provide to the department of

 

state police existing data submitted to the secretary of state

 

under section 3103a(2) of the insurance code of 1956, 1956 PA 218,

 

MCL 500.3103a, in an electronic form as required by the department

 

of state police not more than 30 days after the department of state

 

police notifies the secretary of state that it is prepared to

 

receive that data and no later than October 1, 2008.

 

     Sec. 520b. (1) The insurance verification fund is created

 

within the state treasury.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the fund. The state treasurer shall

 

direct the investment of the fund. The state treasurer shall credit

 

to the fund interest and earnings from fund investments.

 

     (3) Money in the fund at the close of the fiscal year shall

 

remain in the fund and shall not lapse to the general fund.

 

     (4) The department of state police shall be the administrator

 

of the fund for auditing purposes.

 

     (5) The department of state police shall expend money from the

 

fund, upon appropriation, only to establish, implement, and

 

maintain the paperless verification system described in section

 

520a.

 

     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 pursuant to 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,

 

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 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. 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

 

violation of section 319f(1), the civil fine ordered under this

 

section shall be not less than $1,100.00 or more than $2,750.00.

 

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)(b) 319g(1)(g), the civil fine ordered under this

 


section shall be not less than $2,750.00 or more than $11,000.00.

 

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. If a person is determined to be responsible or

 

responsible "with explanation" for a civil infraction under section

 

319g or a local ordinance substantially corresponding to section

 

319g, that person shall be ordered to pay costs as provided in

 

subsection (4) and a civil fine of not more than $10,000.00.

 

     (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 (14), 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 (14), 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 pursuant to this section within the time prescribed by the

 

court, the driver's license of that person shall be suspended

 

pursuant to 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 shall 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) Until October 1, 2003, in addition to any civil fines and

 


costs ordered to be paid under this section, the judge or district

 

court magistrate shall levy an assessment of $5.00 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. An assessment paid before October 1, 2003 shall be

 

transmitted by the clerk of the court to the state treasurer to be

 

deposited into the Michigan justice training fund. An assessment

 

ordered before October 1, 2003 but collected on or after October 1,

 

2003 shall be transmitted by the clerk of the court to the state

 

treasurer for deposit in 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) Effective October 1, 2003, 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.

 

     (15) 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.

 

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

 

section 328(1) for failing to produce or, after September 30, 2008,

 

to provide a certificate of insurance pursuant to 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 or provided 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.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5332(request no.

 

02663'07 *) of the 94th Legislature is enacted into law.