STATE OF MICHIGAN
JOURNAL
OF THE
House of Representatives
100th Legislature
REGULAR SESSION OF 2019
House Chamber, Lansing, Thursday, May 9, 2019.
12:01 a.m.
The House was called to order by the Speaker.
The roll was called by
the Clerk of the House of Representatives, who announced that a quorum was
present.
Afendoulis—present Filler—present Kahle—present Reilly—present
Albert—present Frederick—present Kennedy—present Rendon—present
Alexander—present Garrett—present Koleszar—present Robinson—present
Allor—present Garza—present Kuppa—present Sabo—present
Anthony—present Gay-Dagnogo—present LaFave—present Schroeder—present
Bellino—present Glenn—present LaGrand—present Shannon—present
Berman—present Green—present Lasinski—present Sheppard—present
Bolden—present Greig—present Leutheuser—present Slagh—present
Bollin—present Griffin—present Liberati—present Sneller—present
Brann—present Guerra—present Lightner—present Sowerby—present
Brixie—present Haadsma—present Lilly—present Stone—present
Byrd—present Hall—present Love—present Tate—present
Calley—present Hammoud—present Lower—present VanSingel—present
Cambensy—present Hauck—present Maddock—present VanWoerkom—present
Camilleri—present Hernandez—present Manoogian—present Vaupel—present
Carter, B.—present Hertel—present Marino—present Wakeman—present
Carter, T.—present Hoadley—present Markkanen—present Warren—present
Chatfield—present Hoitenga—present Meerman—present Webber—present
Cherry—present Hood—present Miller—present Wendzel—present
Chirkun—present Hope—present Mueller—present Wentworth—present
Clemente—present Hornberger—present Neeley—present Whiteford—present
Cole—present Howell—present O’Malley—present Whitsett—present
Coleman—present Huizenga—present Pagan—present Wittenberg—present
Crawford—present Iden—present Paquette—present Witwer—present
Eisen—present Inman—present Peterson—present Wozniak—present
Elder—present Johnson, C.—present Pohutsky—present Yancey—present
Ellison—present Johnson, S.—present Rabhi—present Yaroch—present
Farrington—present Jones—present
e/d/s = entered during session
Rep.
Phil Green, from the 84th District, offered the following invocation:
“Our
heavenly Father, we are thankful that You are the lord of lords, the king of
kings, the god of gods, that You are the god of all wisdom. Lord we are
thankful that we can see another day today and remember that it is a life worth
living. I pray that as we get into this day we would be reminded that You give
life and that You give wisdom. We are thankful for the opportunity to be Your
ministers representing the individuals of our districts. We pray for wisdom
today to know right and courage to do right. We pray for continued health and
safety as we travel later today. We ask these things in Your precious son’s
name, Amen.”
Second
Reading of Bills
A bill
to amend 1956 PA 218, entitled “The insurance code of 1956,” by amending
sections 1833, 1910, 2102, 2103, 2116a, 2118, 2120, 3009, 3017, 3020, 3037,
3101, 3102, 3103, 3104, 3131, 3135, 3163, 3171, 3172, 3179, 3303, and 6107 (MCL
500.1833, 500.1910, 500.2102, 500.2103, 500.2116a, 500.2118, 500.2120,
500.3009, 500.3017, 500.3020, 500.3037, 500.3101, 500.3102, 500.3103, 500.3104,
500.3131, 500.3135, 500.3163, 500.3171, 500.3172, 500.3179, 500.3303, and
500.6107), section 1833 as added by 1989 PA 214, sections 1910, 3171, and 3172
as amended by 2012 PA 204, section 2103 as amended by 2016 PA 449, section
2116a as added and sections 2118 and 2120 as amended by 2007 PA 35, sections
3009 and 3037 as amended and section 3017 as added by 2016 PA 346, section 3020
as amended by 2006 PA 106, section 3101 as amended by 2017 PA 140, section 3102
as amended by 1990 PA 79, section 3103 as amended by 1986 PA 173, section 3104
as amended by 2002 PA 662, section 3135 as amended by 2012 PA 158, section 3163
as amended by 2002 PA 697, section 3303 as amended by 1980 PA 461, and section
6107 as amended by 2017 PA 58.
(The
bill was read a second time, substitute (H-1) adopted and bill postponed for
the day on May 8, see House Journal No. 44, p. 519.)
The
motion prevailed, a majority of the members serving voting therefor.
Rep. Whitsett moved to amend the bill as follows:
1. Amend page 5, line 27, after “persons.” by striking out the balance
of the subsection and inserting:
“(3) An insurer, including, but not limited to, an insurer that
writes insurance as described in subsection (2) and an insurer that is
exempted from any of the requirements of this chapter for any reason, shall not
establish or maintain rates or rating classifications for automobile insurance
based on a factor that is not allowed, or that is prohibited, under section
2111.”.
2. Amend page 8, following line 1, by inserting:
“Sec. 2111. (1) Notwithstanding
any provision of this act or this chapter to the contrary, classifications and territorial
base rates used by an insurer in this state with respect to automobile
insurance or home insurance shall must
conform to the applicable requirements of this section.
(2)
Classifications established under this section for automobile insurance shall
must be based only on 1 or
more of the following factors, which shall must be applied by an insurer on a uniform basis throughout this
state:
(a)
With respect to all automobile insurance coverages:
(i) Either the age of the driver; the
length of driving experience; or the number of years licensed to operate a
motor vehicle.
(ii) Driver primacy, based on the
proportionate use of each vehicle insured under the policy by individual
drivers insured or to be insured under the policy.
(iii) Average miles driven weekly,
annually, or both.
(iv) Type of use, such as business, farm,
or pleasure use.
(v) Vehicle characteristics, features,
and options, such as engine displacement, ability of the vehicle and its
equipment to protect passengers from injury, and other similar items, including
vehicle make and model.
(vi) Daily or weekly commuting mileage.
(vii) Number of cars insured by the
insurer or number of licensed operators in the household. However, number of
licensed operators shall must not
be used as an indirect measure of marital status.
(viii) Amount of insurance.
(b) In
addition to the factors prescribed in subdivision (a), with respect to personal
protection insurance coverage:
(i) Earned income.
(i)(ii)
Number of dependents of income earners insured under the policy.
(ii)(iii)
Coordination of benefits.
(iii)(iv) Use
of a safety belt.
(c) In addition to the factors prescribed in subdivision (a), with
respect to collision and comprehensive coverages:
(i) The anticipated cost of
vehicle repairs or replacement, which may be measured by age, price, cost new,
or value of the insured automobile, and other factors directly relating to that
anticipated cost.
(ii) Vehicle make and model.
(iii) Vehicle design
characteristics related to vehicle damageability.
(iv) Vehicle characteristics
relating to automobile theft prevention devices.
(d) With respect to all automobile insurance coverage other than
comprehensive, successful completion by the individual driver or drivers
insured under the policy of an accident prevention education course that meets
the following criteria:
(i) The course shall must include a minimum of 8 hours of
classroom instruction.
(ii) The course shall must include, but not be limited to, a
review of all of the following:
(A) The effects of aging on driving behavior.
(B) The shapes, colors, and types of road signs.
(C) The effects of alcohol and medication on driving.
(D) The laws relating to the proper use of a motor vehicle.
(E) Accident prevention measures.
(F) The benefits of safety belts and child restraints.
(G) Major driving hazards.
(H) Interaction with other highway users, such as motorcyclists,
bicyclists, and pedestrians.
(3) Each insurer shall establish a secondary or merit rating plan for
automobile insurance, other than comprehensive coverage. A secondary or merit
rating plan required under this subsection shall must provide for premium surcharges for any or all coverages
for automobile insurance, other than comprehensive coverage, based upon on any or all of the following,
when that information becomes available to the insurer:
(a) Substantially at-fault accidents.
(b) Convictions for, determinations of responsibility for civil
infractions for, or findings of responsibility in probate court for civil
infractions for violations under chapter VI of the Michigan vehicle code, 1949
PA 300, MCL 257.601 to 257.750. However, an insured shall must not be merit rated classified for rating purposes based on a civil infraction under chapter VI of the
Michigan vehicle code, 1949 PA 300, MCL 257.601 to 257.750, for a period of
time longer than that which the secretary of state’s office carries points for
that infraction on the insured’s motor vehicle record.
(3) (4)
An insurer shall not establish or maintain rates or rating
classifications for automobile insurance based on sex or marital status or a non-driving factor.
(4) (5)
Notwithstanding other provisions of this chapter, automobile insurance
risks may must not be grouped
by territory.
(5) (6)
This section does not limit insurers or rating organizations from
establishing and maintaining statistical reporting territories. This section
does not prohibit an insurer from establishing or maintaining, for automobile
insurance, a premium discount plan for senior citizens in this state who are 65
years of age or older, if the plan is uniformly applied by the insurer
throughout this state. If an insurer has not established and maintained a
premium discount plan for senior citizens, the insurer shall offer reduced
premium rates to senior citizens in this state who are 65 years of age or older
and who drive less than 3,000 miles per year, regardless of statistical data.
(6) (7)
Classifications established under this section for home insurance other
than inland marine insurance provided by policy floaters or endorsements shall
must be based only on 1 or more
of the following factors:
(a) Amount and types of coverage.
(b) Security and safety devices, including locks, smoke detectors, and
similar, related devices.
(c) Repairable structural defects reasonably related to risk.
(d) Fire protection class.
(e) Construction of structure, based on structure size, building
material components, and number of units.
(f) Loss experience of the insured, based on prior claims attributable
to factors under the control of the insured that have been paid by an insurer.
An insured’s failure, after written notice from the insurer, to correct a
physical condition that presents a risk of repeated loss shall be considered
is a factor under the control of
the insured for purposes of this subdivision.
(g) Use of smoking materials within the structure.
(h) Distance of the structure from a fire hydrant.
(i) Availability of law enforcement or crime prevention services.
(7) (8)
Notwithstanding other provisions of this chapter, home insurance risks
may be grouped by territory.
(8) (9)
An insurer may use factors in addition to those permitted by this
section for insurance if the plan is consistent with the purposes of this act
and reflects reasonably anticipated reductions or increases in losses or
expenses.
(9) As used in this section, “non-driving
factors” means any factor for which there is no rational correlation between
the factor and insurance losses. The director shall promulgate rules under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to
establish the factors that are non-driving factors. After the effective date of
the amendatory act that added this subsection, an insurer shall not use a
factor to establish a rate for automobile insurance if the factor is in the
rules promulgated under this subsection.”.
3. Amend page 12, following line 6, by inserting:
“Sec. 2151. As used in this
chapter:
(a) “Adverse
action” means an increase in any charge for, or a reduction or other adverse or
unfavorable change in the terms of coverage or amount of, any personal
insurance, existing or applied for.
(b) “Consumer
reporting agency” means any person which, that, for monetary fees or dues or on a cooperative nonprofit
basis, regularly engages in whole or in part in the practice of assembling or
evaluating consumer credit information or other information on consumers for
the purpose of furnishing consumer reports to third parties.
(c) “Credit
information” means any credit-related information derived from a credit report,
found on a credit report itself, or provided on an application for personal
insurance. Information that is not credit-related shall is not be considered credit
information, regardless of whether it is contained in a credit report or in an
application, or is used to calculate an insurance score.
(d) “Credit
report” means any written, oral, or other communication of information by a
consumer reporting agency bearing on a consumer’s credit worthiness, credit
standing, or credit capacity that is used or expected to be used or collected
in whole or in part for the purpose of serving as a factor in the rating of
personal insurance.
(e) “Insurance
score” means a number or rating that is derived from an algorithm, computer
application, model, or other process that is based in whole or in part on
credit information for the purposes of predicting the future insurance loss
exposure of an individual applicant or insured.
(f) “Personal
insurance” means property/casualty insurance written for personal, family, or
household use, including automobile, home, motorcycle, mobile home,
noncommercial dwelling fire, boat, personal watercraft, snowmobile, and
recreational vehicle, whether written on an individual, group, franchise,
blanket policy, or similar basis.
Personal insurance does not include automobile insurance.”.
The
question being on the adoption of the amendments offered previously by Rep.
Whitsett,
The
amendments were not adopted, a majority of the members serving not voting
therefor.
Rep. Bolden moved to substitute (H-2) the bill.
Rep. Whitsett moved to amend the bill as follows:
1. Amend page 5, line 27, after “persons.” by striking out the balance
of the subsection and inserting:
“(3) An insurer, including, but not limited to, an insurer that
writes insurance as described in subsection (2) and an insurer that is
exempted from any of the requirements of this chapter for any reason, shall not
establish or maintain rates or rating classifications for automobile insurance
based on a factor that is not allowed, or that is prohibited, under section
2111.”.
2. Amend page 8, following line 1, by inserting:
“Sec. 2111. (1)
Notwithstanding any provision of this act or this chapter to the contrary,
classifications and territorial base rates used by an insurer in this
state with respect to automobile insurance or home insurance shall must conform to the applicable
requirements of this section.
(2)
Classifications established under this section for automobile insurance shall
must be based only on 1 or
more of the following factors, which shall must be applied by an insurer on a uniform basis throughout this
state:
(a)
With respect to all automobile insurance coverages:
(i) Either the age of the driver; the
length of driving experience; or the number of years licensed to operate a
motor vehicle.
(ii) Driver primacy, based on the
proportionate use of each vehicle insured under the policy by individual
drivers insured or to be insured under the policy.
(iii) Average miles driven weekly,
annually, or both.
(iv) Type of use, such as business, farm,
or pleasure use.
(v) Vehicle characteristics, features,
and options, such as engine displacement, ability of the vehicle and its
equipment to protect passengers from injury, and other similar items, including
vehicle make and model.
(vi) Daily or weekly commuting mileage.
(vii) Number of cars insured by the
insurer or number of licensed operators in the household. However, number of
licensed operators shall must not
be used as an indirect measure of marital status.
(viii) Amount of insurance.
(b) In addition to the factors prescribed in subdivision (a), with
respect to personal protection insurance coverage:
(i) Earned income.
(ii) Number of dependents of
income earners insured under the policy.
(iii) Coordination of
benefits.
(iv) Use of a safety belt.
(c) In addition to the factors prescribed in subdivision (a), with
respect to collision and comprehensive coverages:
(i) The anticipated cost of
vehicle repairs or replacement, which may be measured by age, price, cost new,
or value of the insured automobile, and other factors directly relating to that
anticipated cost.
(ii) Vehicle make and model.
(iii) Vehicle design
characteristics related to vehicle damageability.
(iv) Vehicle characteristics
relating to automobile theft prevention devices.
(d) With respect to all automobile insurance coverage other than
comprehensive, successful completion by the individual driver or drivers
insured under the policy of an accident prevention education course that meets
the following criteria:
(i) The course shall must include a minimum of 8 hours of
classroom instruction.
(ii) The course shall must include, but not be limited to, a
review of all of the following:
(A) The effects of aging on driving behavior.
(B) The shapes, colors, and types of road signs.
(C) The effects of alcohol and medication on driving.
(D) The laws relating to the proper use of a motor vehicle.
(E) Accident prevention measures.
(F) The benefits of safety belts and child restraints.
(G) Major driving hazards.
(H) Interaction with other highway users, such as motorcyclists,
bicyclists, and pedestrians.
(3) Each insurer shall establish a secondary or merit rating plan for
automobile insurance, other than comprehensive coverage. A secondary or merit
rating plan required under this subsection shall must provide for premium surcharges for any or all coverages
for automobile insurance, other than comprehensive coverage, based upon on any or all of the following,
when that information becomes available to the insurer:
(a) Substantially at-fault accidents.
(b) Convictions for, determinations of responsibility for civil
infractions for, or findings of responsibility in probate court for civil
infractions for violations under chapter VI of the Michigan vehicle code, 1949
PA 300, MCL 257.601 to 257.750. However, an insured shall must not be merit rated classified for rating purposes based on a civil infraction under chapter VI of the
Michigan vehicle code, 1949 PA 300, MCL 257.601 to 257.750, for a period of
time longer than that which the secretary of state’s office carries points for
that infraction on the insured’s motor vehicle record.
(3) (4)
An insurer shall not establish or maintain rates or rating
classifications for automobile insurance based on sex or marital status or a non-driving factor.
(4) (5)
Notwithstanding other provisions of this chapter, automobile insurance
risks may be grouped by territory.
(5) (6)
This section does not limit insurers or rating organizations from
establishing and maintaining statistical reporting territories. This section
does not prohibit an insurer from establishing or maintaining, for automobile
insurance, a premium discount plan for senior citizens in this state who are 65
years of age or older, if the plan is uniformly applied by the insurer
throughout this state. If an insurer has not established and maintained a
premium discount plan for senior citizens, the insurer shall offer reduced
premium rates to senior citizens in this state who are 65 years of age or older
and who drive less than 3,000 miles per year, regardless of statistical data.
(6) (7)
Classifications established under this section for home insurance other
than inland marine insurance provided by policy floaters or endorsements shall
must be based only on 1 or more
of the following factors:
(a) Amount and types of coverage.
(b) Security and safety devices, including locks, smoke detectors, and
similar, related devices.
(c) Repairable structural defects reasonably related to risk.
(d) Fire protection class.
(e) Construction of structure, based on structure size, building
material components, and number of units.
(f) Loss experience of the insured, based on prior claims attributable
to factors under the control of the insured that have been paid by an insurer.
An insured’s failure, after written notice from the insurer, to correct a
physical condition that presents a risk of repeated loss shall be considered
is a factor under the control of
the insured for purposes of this subdivision.
(g) Use of smoking materials within the structure.
(h) Distance of the structure from a fire hydrant.
(i) Availability of law enforcement or crime prevention services.
(7) (8)
Notwithstanding other provisions of this chapter, home insurance risks
may be grouped by territory.
(8) (9)
An insurer may use factors in addition to those permitted by this
section for insurance if the plan is consistent with the purposes of this act
and reflects reasonably anticipated reductions or increases in losses or
expenses.
(9) As used in this section, “non-driving factors”
means any factor for which there is no rational correlation between the factor
and insurance losses. The director shall promulgate rules under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to
establish the factors that are non-driving factors. After the effective date of
the amendatory act that added this subsection, an insurer shall not use a
factor to establish a rate for automobile insurance if the factor is in the
rules promulgated under this subsection.”.
3. Amend page 12, following line 6, by inserting:
“Sec. 2151. As used in this
chapter:
(a) “Adverse
action” means an increase in any charge for, or a reduction or other adverse or
unfavorable change in the terms of coverage or amount of, any personal
insurance, existing or applied for.
(b) “Consumer
reporting agency” means any person which, that, for monetary fees or dues or on a cooperative nonprofit
basis, regularly engages in whole or in part in the practice of assembling or
evaluating consumer credit information or other information on consumers for
the purpose of furnishing consumer reports to third parties.
(c) “Credit
information” means any credit-related information derived from a credit report,
found on a credit report itself, or provided on an application for personal
insurance. Information that is not credit-related shall is not be considered credit
information, regardless of whether it is contained in a credit report or in an
application, or is used to calculate an insurance score.
(d) “Credit
report” means any written, oral, or other communication of information by a
consumer reporting agency bearing on a consumer’s credit worthiness, credit
standing, or credit capacity that is used or expected to be used or collected
in whole or in part for the purpose of serving as a factor in the rating of
personal insurance.
(e) “Insurance
score” means a number or rating that is derived from an algorithm, computer
application, model, or other process that is based in whole or in part on
credit information for the purposes of predicting the future insurance loss
exposure of an individual applicant or insured.
(f) “Personal
insurance” means property/casualty insurance written for personal, family, or
household use, including automobile, home, motorcycle, mobile home,
noncommercial dwelling fire, boat, personal watercraft, snowmobile, and
recreational vehicle, whether written on an individual, group, franchise,
blanket policy, or similar basis.
Personal insurance does not include automobile insurance.”.
Rep.
Sheppard moved that the bill be placed on the order of Third Reading of Bills.
The motion prevailed.
Rep.
Cole moved that the bill be placed on its immediate passage.
The motion prevailed, a majority of the members serving voting therefor.
______
The
Speaker called the Speaker Pro Tempore to the Chair.
By
unanimous consent the House returned to the order of
Third
Reading of Bills
House Bill No. 4397, entitled
A bill to amend 1956 PA 218, entitled “The insurance code of 1956,” by
amending sections 1833, 1910, 2102, 2103, 2116a, 2118, 2120, 3009, 3017, 3020,
3037, 3101, 3102, 3103, 3104, 3131, 3135, 3163, 3171, 3172, 3179, 3303, and
6107 (MCL 500.1833, 500.1910, 500.2102, 500.2103, 500.2116a, 500.2118,
500.2120, 500.3009, 500.3017, 500.3020, 500.3037, 500.3101, 500.3102, 500.3103,
500.3104, 500.3131, 500.3135, 500.3163, 500.3171, 500.3172, 500.3179, 500.3303,
and 500.6107), section 1833 as added by 1989 PA 214, sections 1910, 3171, and
3172 as amended by 2012 PA 204, section 2103 as amended by 2016 PA 449, section
2116a as added and sections 2118 and 2120 as amended by 2007 PA 35, sections
3009 and 3037 as amended and section 3017 as added by 2016 PA 346, section 3020
as amended by 2006 PA 106, section 3101 as amended by 2017 PA 140, section 3102
as amended by 1990 PA 79, section 3103 as amended by 1986 PA 173, section 3104
as amended by 2002 PA 662, section 3135 as amended by 2012 PA 158, section 3163
as amended by 2002 PA 697, section 3303 as amended by 1980 PA 461, and section
6107 as amended by 2017 PA 58.
Rep. Rabhi moved that the bill be read
in its entirety by the Clerk.
Was read a third time and passed, a majority
of the members serving voting therefor, by yeas and nays, as follows:
Roll Call No. 84 Yeas—61
Afendoulis Frederick LaFave Rendon
Albert Glenn Leutheuser Schroeder
Alexander Green Lightner Sheppard
Allor Griffin Lilly Slagh
Bellino Hall Love VanSingel
Berman Hauck Lower VanWoerkom
Bollin Hernandez Maddock Vaupel
Brann Hoitenga Marino Wakeman
Calley Hornberger Markkanen Webber
Cambensy Howell Meerman Wendzel
Chatfield Huizenga Miller Wentworth
Cole Iden Mueller Whiteford
Crawford Inman O’Malley Whitsett
Eisen Johnson,
S. Paquette Wozniak
Farrington Kahle Reilly Yaroch
Filler
Nays—49
Anthony Garrett Jones Rabhi
Bolden Garza Kennedy Robinson
Brixie Gay-Dagnogo Koleszar Sabo
Byrd Greig Kuppa Shannon
Camilleri Guerra LaGrand Sneller
Carter, B. Haadsma Lasinski Sowerby
Carter, T. Hammoud Liberati Stone
Cherry Hertel Manoogian Tate
Chirkun Hoadley Neeley Warren
Clemente Hood Pagan Wittenberg
Coleman Hope Peterson Witwer
Elder Johnson,
C. Pohutsky Yancey
Ellison
In The
Chair: Wentworth
The
question being on agreeing to the title of the bill,
Rep. Cole moved to amend the title to read as follows:
A bill
to amend 1956 PA 218, entitled “The insurance code of 1956,” by amending
sections 150, 2105, 2106, 2108, 2111, 2111f, 2118, 2120, 3101, 3101a, 3104,
3107, 3111, 3112, 3113, 3114, 3115, 3135, 3142, 3145, 3148, 3157, 3163, 3172,
3173a, 3174, 3175, and 3177 (MCL 500.150, 500.2105, 500.2106, 500.2108, 500.2111,
500.2111f, 500.2118, 500.2120, 500.2151, 500.3101, 500.3101a, 500.3104,
500.3107, 500.3111, 500.3112, 500.3113,
500.3114, 500.3115, 500.3135, 500.3142, 500.3145, 500.3148, 500.3157, 500.3163,
500.3172, 500.3173a, 500.3174, 500.3175, and 500.3177), section 150 as amended
by 1992 PA 182, section 2108 as amended by 2015 PA 141, section 2111 as
amended by 2012 PA 441, sections 2118 and 2120 as amended by 2007 PA 35,
section 3101 as amended by 2017 PA 140, section 3101a as amended by 2018
PA 510, section 3104 as amended by 2002 PA 662, section 3107 as amended by
2012 PA 542, section 3113 as amended by 2016 PA 346, section 3114 as
amended by 2016 PA 347, section 3135 as amended by 2012 PA 158, section
3163 as amended by 2002 PA 697, sections 3172, 3173a, 3174, and 3175 as amended
by 2012 PA 204, section 3177 as amended by 1984 PA 426, and section 2151 as
added by 2012 PA 165 and by adding sections 261, 1245, 2111f, 2116b,
3107c, 3107d, 3107e, 3157a, and 3157b and chapter 63.
The motion prevailed.
The House agreed to the title as amended.
______
“Mr. Speaker and members of the
House:
I voted no on HB 4397 because it guarantees
that thousands of Michigan drivers who are injured in car accidents will not
get the care they need to address those injuries and the financial security
they deserve, but fails to provide Michigan drivers with meaningful, long-term
rate reductions. Michigan drivers will continue to pay exorbitant insurance
rates and get far less in return than they currently receive. The bill contains
window dressing to create the appearance that rates will be reduced and
Department of Insurance and Financial Services (DIFS) will be given the
authority to reign in insurance company abuses, but a careful reading reveals
that these provisions have no teeth. Use of non-driving factors such as credit
scores, zip codes, and educational attainment are not prohibited under the
bill. DIFS is not provided the tools to reject excessive rates. Rate reductions
are temporary and address only one of the many line items on an insurance bill.
There is no guarantee that anyone’s total insurance bill will be reduced at
all.
I support comprehensive reform
that guarantees rate relief and provides accident victims with the care they
need. I support the substitute bill offered by the representative from the 35th
district that would have provided real rate relief and reigned in insurance
company abuses. Unfortunately the majority rejected the proposal.
I look forward to continuing to
work on this issue. The committee process that was bypassed by the majority
today should resume and a real, bi-partisan solution should be brought forward.”
Reps. Chirkun, Kennedy, Clemente,
Pohutsky, Manoogian, Koleszar, Stone, Shannon, Kuppa, Hammoud and Camilleri,
having reserved the right to explain their protest against the passage of the
bill, made the following statement:
“Mr. Speaker and members of the House:
With no hearing or public input, and
under the cover of darkness via a late night session, the legislative
leadership in the Michigan House brought up an auto insurance proposal that no
one has had time to properly vet and ensure it is the best for the citizens of
Michigan.
I voted no on HB 4397 because it
guarantees that thousands of Michigan drivers who are injured in car accidents
will not get the care they need to address those injuries and the financial
security they deserve, but fails to provide Michigan drivers with meaningful,
long-term rate reductions. Michigan drivers will continue to pay exorbitant
insurance rates and get far less in return than they currently receive. The
bill contains window dressing to create the appearance that rates will be
reduced and Department of Insurance and Financial Services (DIFS) will be given
the authority to reign in insurance company abuses, but a careful reading
reveals that these provisions have no teeth. Use of non-driving factors such as
credit scores, zip codes, and educational attainment are not prohibited under
the bill. DIFS is not provided the tools to reject excessive rates. Rate
reductions are temporary and address only one of the many line items on an
insurance bill. There is no guarantee that anyone’s total insurance bill will
be reduced at all.
I support comprehensive reform that
guarantees rate relief and provides accident victims with the care they need. I
support the substitute bill offered by the representative from the 35th
district that would have provided real rate relief and reigned in insurance
company abuses. Unfortunately the majority rejected the proposal.
I look forward to continuing to work on
this issue. The committee process that was bypassed by the majority today should
resume and a real, bi-partisan solution should be brought forward. As such,
while reducing auto insurance rates remains my top priority, I could not
support this bill. I stand committed to working on a bipartisan plan that works
for Michigan.”
Rep. Haadsma, having reserved the
right to explain his protest against the passage of the bill, made the
following statement:
“Mr. Speaker and members of the
House:
I have sat yesterday and very
early this morning throughout a flawed process to amend a long chapter of
Michigan’s Insurance Code, a chapter passed over 45 years ago, followed by 45
years of court commentary.
This legislative process has been
undertaken in a back room, and dropped on MI House members in the evening
proceeding a middle-of-the-night vote.
This inadequate process will
affect millions of Michigan motorists.
This bill doesn’t guarantee
premiums reduction, and to pass this bill would be to trade in protection for a
pot of porridge, for promises that won’t be kept.”
Rep. Garza, having reserved the
right to explain his protest against the passage of the bill, made the
following statement:
“Mr. Speaker and members of the
House:
I voted no on HB 4397 because it
guarantees that thousands of Michigan drivers who are injured in car accidents
will not get the care they need to address those injuries and the financial
security they deserve. This bill also fails to provide Michigan drivers with
meaningful, long-term rate reductions.
Michigan drivers will continue to
pay exorbitant insurance rates and get far less in return than they currently
receive. The bill creates a facade to create the appearance that rates will be
reduced and Department of Insurance and Financial Services (DIFS) will be given
the authority to reign in insurance company abuses, but a careful reading
reveals that these provisions aren’t enforceable. Use of non-driving factors
such as credit scores, zip codes, and educational attainment are not prohibited
under the bill.
DIFS is not provided the tools to reject excessive
rates. Rate reductions are temporary and address only one of the many line
items on an insurance bill. There is no guarantee that anyone’s total insurance
bill will be reduced at all. I support comprehensive reform that guarantees
rate relief and provides accident victims with the care they need. I support
the substitute bill offered by the representative from the 35th district that
would have provided real rate relief and reigned in insurance company abuses.
Unfortunately the majority rejected the proposal.
I look forward to continuing to
work on this issue. The committee process that was bypassed by the majority
today should resume and a real, bi-partisan solution should be brought forward.”
Rep. Witwer, having reserved the
right to explain her protest against the passage of the bill, made the
following statement:
“Mr. Speaker and members of the
House:
In a
last-minute push, the legislative majority passed House Bill 4397, an auto
no-fault bill that fails to provide real rate relief to Michigan’s hardworking
families. The bill was brought before us with no prior notice, no hearing or
public input, and only a few hours to review. This is not how good public
policy is made.
I am committed to finding a
solution that lowers rates while still providing quality coverage. I am
committed to a solution that provides guaranteed, long-term rate relief, ends
discriminatory rating factors, and strengthens consumer protection. This bill
does not accomplish those goals.
We owe it to the people of
Michigan to come together as a Legislature and come up with the best possible
solution to this longtime issue. Auto insurance reform is not a partisan issue,
and if this chamber continues treating it as such, it is Michigan’s hardworking
families that will continue to suffer. I am disappointed because we had a
process in the House and were working toward a solution I could get behind. I
am still committed to that process and to finding a solution, but unfortunately
what happened tonight is not good government and it’s our residents that will
end up paying for it.
Reforming our auto no-fault
system is a problem that deserves our time and attention and jamming a bill
through the House without proper care or debate is simply not the way I was
elected to govern.”
Rep. Tate, having reserved the
right to explain his protest against the passage of the bill, made the
following statement:
“Mr. Speaker and members of the
House:
I voted no
on 4397. This bill does not address the necessary policy solutions needed to
guarantee sustainable – not temporary – rate reductions, yet it guarantees the
reduction of quality of care if a catastrophic accident occurs. Residents
across our state need relief from excessive auto insurance rates.
Several
items are missing from this bill to create relief of auto insurance rates to
include non-driving factors. Using factors such as credit scores, zip codes,
and educational attainment are still allowed under this bill.
A comprehensive plan to reform
auto insurance is needed and I am committed to working with my colleagues to
find a long-term set of solutions to bring lower rates. Limited substantive
reform will not bring about the change Michiganians
are looking for.”
Rep. Cherry, having reserved the
right to explain his protest against the passage of the bill, made the
following statement:
“Mr. Speaker and members of the
House:
I voted no on HB 4397 because it
does not provide significant long-term rate relief, does not end redlining and
discrimination based on qualities such as age and credit score, and it does not
protect citizens who are injured in auto accidents. This bill would reduce the
ability of residents of Genesee County to have immediate access to emergency
care. This bill would harm the residents of the 49th district.”
Rep. Guerra, having reserved the
right to explain her protest against the passage of the bill, made the
following statement:
“Mr. Speaker and members of the
House:
I voted no on HB 4397 because
this was nothing more than house republicans putting lipstick on a pig. We
could have sat down and included language in this legislation that spelled out
which non driving factors should be prohibited from being used. We could have
included language that would have addressed the medical loss ratio thus forcing
insurance companies to truly make cuts and then we could have included language
that mandated those same cuts be passed down to the consumer. And we could have
included language that touched on more than just the personal injury protection
to GUARANTEE rate relief. This bill did none of that. Car insurance is
complicated and I refuse to treat it as a simple fix. We have known about high
rates for years, but only TODAY at 7pm did house republicans choose to
introduce a bill to address this issue. Michiganders deserve better than the
empty promises this bill guarantees.”
Rep. Hood, having reserved the
right to explain her protest against the passage of the bill, made the
following statement:
“Mr. Speaker and members of the
House:
I voted no on HB 4397 because it guarantees
that thousands of Michigan drivers who are injured in car accidents will not
get the care they need to address those injuries and the financial security
they deserve, but fails to provide Michigan drivers with meaningful, long-term
rate reductions. Michigan drivers will continue to pay exorbitant insurance
rates and get far less in return than they currently receive. The bill contains
window dressing to create the appearance that rates will be reduced and
Department of Insurance and Financial Services (DIFS) will be given the
authority to reign in insurance company abuses, but a careful reading reveals
that these provisions have no teeth. Use of non-driving factors such as credit
scores, zip codes, and educational attainment are not prohibited under the
bill. DIFS is not provided the tools to reject excessive rates. Rate reductions
are temporary and address only one of the many line items on an insurance bill.
There is no guarantee that anyone’s total insurance bill will be reduced at
all.
My district will be economically
devastated by this bill as the Workers Comp fee schedule will not support the
care that is needed for accident victims, nor the jobs of the people who seek
to care for them.
I support comprehensive reform
that guarantees rate relief and provides accident victims with the care they
need. I support the substitute bill offered by the representative from the 35th
district that would have provided real rate relief and reigned in insurance
company abuses. Unfortunately the majority rejected the proposal.
I look forward to continuing to
work on this issue. The committee process that was bypassed by the majority
today should resume and a real, bi-partisan solution should be brought forward.”
Rep. Yancey, having reserved the
right to explain her protest against the passage of the bill, made the
following statement:
“Mr. Speaker and members of the
House:
I voted no on HB 4397 because it
guarantees that thousands of Michigan drivers who are injured in car accidents
will not get the care they need to address those injuries and the financial
security they deserve, but fails to provide Michigan drivers with meaningful,
long-term rate reductions. Michigan drivers will continue to pay exorbitant
insurance rates and get far less in return than they currently receive. The
bill contains window dressing to create the appearance that rates will be
reduced and Department of Insurance and Financial Services (DIFS) will be given
the authority to reign in insurance company abuses, but a careful reading reveals
that these provisions have no teeth. Use of non-driving factors such as credit
scores, zip codes, and educational attainment are not prohibited under the
bill. DIFS is not provided the tools to reject
excessive rates. Rate reductions are temporary and address only one of the many
line items on an insurance bill. There is no guarantee that anyone’s total
insurance bill will be reduced at all.
I support comprehensive reform
that guarantees rate relief and provides accident victims with the care they
need. I support the substitute bill offered by the representative from the 35th
district that would have provided real rate relief and reigned in insurance
company abuses. Unfortunately the majority rejected the proposal.
I look forward to continuing to
work on this issue. The committee process that was bypassed by the majority
today should resume and a real, bi-partisan solution should be brought forward.”
Introduction
of Bills
House Bill No. 4576, entitled
A bill to amend 1949 PA 300, entitled “Michigan
vehicle code,” by amending section 309 (MCL 257.309), as amended by 2016 PA 23.
The bill was read a first time by its title
and referred to the Committee on Transportation.
House Bill No. 4577, entitled
A bill to amend 2001 PA 142, entitled “Michigan memorial highway act,”
(MCL 250.1001 to 250.2081) by adding section 1092.
The bill was read a first time by its title and referred to the
Committee on Transportation.
House Bill No. 4578, entitled
A bill to amend 2006 PA 491, entitled
“Michigan works one-stop service center system act,”
by amending sections 5 and 13 (MCL 408.115 and 408.123).
The bill was read a first time by
its title and referred to the Committee on Commerce and Tourism.
House Bill No. 4579, entitled
A bill to amend 2006 PA 491, entitled “Michigan
works one-stop service center system act,” by
amending section 13 (MCL 408.123).
The bill was read a first time by its title
and referred to the Committee on Commerce and Tourism.
House Bill No. 4580, entitled
A bill to amend 2006 PA 250, entitled “Money
transmission services act,” (MCL 487.1001 to 487.1047) by adding section 35.
The bill was read a first time by its title
and referred to the Committee on Regulatory Reform.
Reps. Kahle, Ellison, Hoitenga and Hall
introduced
House Bill No. 4581, entitled
A bill to amend 1931 PA 328, entitled “The
Michigan penal code,” by amending sections 520d and 520e (MCL 750.520d and
750.520e), as amended by 2012 PA 372.
The bill was read a first time by its title
and referred to the Committee on Judiciary.
Reps. Witwer, Garza, Kennedy, Ellison, Brixie,
Stone, Hood, Shannon, Camilleri, Manoogian, Pagan, Koleszar, Pohutsky, Warren,
Sneller, Cherry, Chirkun, Hoadley, Kuppa, Hope, Cambensy, Liberati, Sabo,
Bolden, Cynthia Johnson, Gay-Dagnogo, Tate, Hertel, Garrett, Brenda Carter,
Sowerby, Anthony and Elder introduced
House Bill No. 4582, entitled
A bill to amend 1967 PA 281, entitled “Income
tax act of 1967,” (MCL 206.1 to 206.713) by adding section 277.
The bill was read a first time by its title
and referred to the Committee on Tax Policy.
Reps. Pagan, Stone, Ellison, Camilleri,
Koleszar, Yancey, Cynthia Johnson, Kennedy, Neeley, Peterson, Kuppa, Sowerby,
Brenda Carter, Shannon, Tyrone Carter, Brixie, Manoogian, Hood, Bolden, Rabhi,
Pohutsky, Gay-Dagnogo, Berman, Clemente, Sneller and Hoadley introduced
House Bill No. 4583, entitled
A bill to amend 1976 PA 451, entitled “The
revised school code,” by amending section 1280f (MCL 380.1280f), as added by
2016 PA 306.
The bill was read a first time by its title
and referred to the Committee on Education.
______
Rep. Lightner moved that the House adjourn.
The motion prevailed, the time being 2:20 a.m.
The
Speaker Pro Tempore declared the House adjourned until Tuesday, May 14, at 1:30
p.m.
GARY L. RANDALL
Clerk of the House of
Representatives