February 13, 2014, Introduced by Senator SMITH and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending the title and sections 102, 6101, 6103, 6105, 6107,
6110, and 6111 (MCL 500.102, 500.6101, 500.6103, 500.6105,
500.6107, 500.6110, and 500.6111), the title as amended by 2002 PA
304, section 102 as amended by 2000 PA 252, sections 6101, 6103,
6105, 6107, and 6110 as added by 1992 PA 174, and section 6111 as
amended by 2004 PA 316, and by adding section 6108.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to revise, consolidate, and classify the laws relating
to the insurance and surety business; to regulate the incorporation
or formation of domestic insurance and surety companies and
associations and the admission of foreign and alien companies and
associations; to provide their rights, powers, and immunities and
to prescribe the conditions on which companies and associations
organized, existing, or authorized under this act may exercise
their powers; to provide the rights, powers, and immunities and to
prescribe the conditions on which other persons, firms,
corporations, associations, risk retention groups, and purchasing
groups engaged in an insurance or surety business may exercise
their powers; to provide for the imposition of a privilege fee on
domestic
insurance companies and associations; and the state
accident
fund; to provide for the imposition
of a tax on the
business of foreign and alien companies and associations; to
provide for the imposition of a tax on risk retention groups and
purchasing groups; to provide for the imposition of a tax on the
business of surplus line agents; to provide for the imposition of
regulatory fees on certain insurers; to provide for assessment fees
on certain health maintenance organizations; to modify tort
liability arising out of certain accidents; to provide for limited
actions with respect to that modified tort liability and to
prescribe certain procedures for maintaining those actions; to
require security for losses arising out of certain accidents; to
provide for the continued availability and affordability of
automobile insurance and homeowners insurance in this state and to
facilitate the purchase of that insurance by all residents of this
state at fair and reasonable rates; to provide for certain
reporting with respect to insurance and with respect to certain
claims against uninsured or self-insured persons; to prescribe
duties for certain state departments and officers with respect to
that reporting; to provide for certain assessments; to establish
and
continue certain state insurance funds; to modify and clarify
the
status, rights, powers, duties, and operations of the nonprofit
malpractice
insurance fund; to provide for the
departmental
supervision and regulation of the insurance and surety business
within this state; to provide for regulation over worker's
compensation self-insurers; to provide for the conservation,
rehabilitation, or liquidation of unsound or insolvent insurers; to
provide for the protection of policyholders, claimants, and
creditors of unsound or insolvent insurers; to provide for
associations of insurers to protect policyholders and claimants in
the event of insurer insolvencies; to prescribe educational
requirements for insurance agents and solicitors; to provide for
the regulation of multiple employer welfare arrangements; to create
an automobile and metal theft prevention authority to reduce the
number of automobile thefts and the amount of metal theft in this
state; to prescribe the powers and duties of the automobile and
metal theft prevention authority; to provide certain powers and
duties upon certain officials, departments, and authorities of this
state; to provide for an appropriation; to repeal acts and parts of
acts; and to provide penalties for the violation of this act.
Sec. 102. As used in this act:
(a)
(1) "Commissioner" as used in this act means
the
commissioner
of the office of financial and insurance
services.director.
(b) (2)
"Department" as used
in this act means the office
department
of financial and insurance and financial services.
(c) "Director" means the director of the department.
CHAPTER 61
AUTOMOBILE AND METAL THEFT PREVENTION AUTHORITY
Sec. 6101. As used in this chapter:
(a) "Authority" means the automobile and metal theft
prevention authority created by section 6103.
(b)
"Board" means the board of directors of the automobile
theft
prevention authority created by section 6103.
(c) "Economic automobile theft" means automobile theft
perpetrated for financial gain.
(d) "Metal theft" means the theft of metal from structures on
real property.
Sec.
6103. (1) There The
automobile and metal theft prevention
authority
is hereby created as a
public body corporate and politic.
to
be known as the automobile theft prevention authority.
(2)
The purposes, powers, and duties of the authority shall be
are vested in and shall be exercised by a board of directors.
(3)
The board of directors shall consist of 7 11 members. ,
appointed
by the The governor
, shall appoint the members with
the
advice
and consent of the senate. , 2 Two
of whom shall the members
must be representative of purchasers of automobile insurance in
this
state, 2 of whom shall must
be representative of automobile
insurers doing business in this state, 2 must be representative of
purchasers of home insurance in this state, 2 must be
representative
of home insurers doing business in this state, 2 of
whom
shall must be representative of law enforcement officials in
this
state, and 1 of whom shall must
be the director of the
department of state police or his or her designee. The governor
shall designate 1 member to serve as the chairperson of the
authority.
(4)
Members A member of the board shall serve for a term of 4
years.
(5) Members of the board shall serve without compensation for
their membership on the board, except that members of the board
shall
receive are entitled to reasonable reimbursement for
necessary travel and expenses.
(6)
A majority of the members of the board shall constitute a
quorum for the transaction of business at a meeting, or the
exercise of a power or function of the authority, notwithstanding
the existence of 1 or more vacancies. Notwithstanding any other
provision of law, action may be taken by the authority at a meeting
upon a vote of the majority of its members present in person or
through the use of amplified telephonic equipment, if authorized by
the bylaws of the board. The authority shall meet at the call of
the
chair or as may be provided in the bylaws of the authority.
Meetings
of the authority may be held anywhere within the in this
state. of
Michigan.
(7)
The authority shall be within is
created in the department
of state police and shall exercise its prescribed statutory powers,
duties,
and functions independently of the head of that director of
the department of state police. The budgeting, procurement, and
related functions of the authority, and administrative
responsibilities for employees of the authority, shall be performed
under the direction and supervision of the director of the
department of state police.
Sec.
6105. The authority shall have has
the powers necessary
or convenient to carry out and effectuate the purposes and
provisions of this chapter and the purposes of the authority and
the powers delegated by other laws, including, but not limited to,
the power to:
(a)
Sue and be sued; to have a seal and alter the same seal at
pleasure;
to have perpetual succession; to make, execute, and
deliver contracts, conveyances, and other instruments necessary or
convenient
to the exercise of its powers; and to make and amend
bylaws.
(b)
Solicit and accept gifts, grants, loans, funds money
collected and placed in the automobile theft prevention fund and
the
metal theft prevention fund, and other aids
aid from any
person, or
the federal , or
state , or government, a local
government, or any
an agency thereof.of the federal or state
government or a local government.
(c) Make grants and investments.
(d) Procure insurance against any loss in connection with its
property, assets, or activities.
(e) Invest any money held in reserve or sinking funds, or any
money not required for immediate use or disbursement, at its
discretion
and to name and use depositories for its money.
(f) Contract for goods and services and engage personnel as is
necessary, including the services of private consultants, managers,
counsel, auditors, and others for rendering professional,
management, and technical assistance and advice, payable out of any
money of the fund legally available for this purpose.
(g) Indemnify and procure insurance indemnifying any member of
the board from personal loss or accountability from liability
resulting from a member's action or inaction as a member of the
board.
(h) Do all other things necessary or convenient to achieve the
objectives and purposes of the authority, this chapter, or other
laws.
Sec.
6107. (1) Prior to Before April 1 of each year, each an
insurer
engaged in writing insurance coverages which that provide
the
security required by section 3101(1) within in this
state, as a
condition of its authority to transact insurance in this state,
shall pay to the authority an assessment equal to $1.00 multiplied
by the insurer's total earned car years of insurance providing the
security required by section 3101(1) written in this state during
the
immediately preceding calendar year.
(2)
Money received pursuant to under
subsection (1) ,
and all
other
money received by the authority, shall
be segregated and
placed
in a fund to be known as the automobile theft prevention
fund. The automobile theft prevention fund shall be administered by
the authority.
(3) Money in the automobile theft prevention fund shall be
expended in the following order of priority:
(a) To pay the costs of administration of the authority.
(b) To achieve the purposes and objectives of this chapter
relating to the prevention of automobile theft, which may include,
but not be limited to, the following:
(i) Provide Providing financial support
to the department of
state police and local law enforcement agencies for economic
automobile theft enforcement teams.
(ii) Provide Providing financial support
to state or local law
enforcement agencies for programs designed to reduce the incidence
of economic automobile theft.
(iii) Provide Providing financial support
to local prosecutors
for programs designed to reduce the incidence of economic
automobile theft.
(iv) Provide Providing financial support
to judicial agencies
for programs designed to reduce the incidence of economic
automobile theft.
(v) Provide Providing financial support
for neighborhood or
community organizations or business organizations for programs
designed to reduce the incidence of automobile theft.
(vi) Conduct Conducting educational
programs designed to inform
automobile owners of methods of preventing automobile theft and to
provide equipment, for experimental purposes, to enable automobile
owners to prevent automobile theft.
(4) Money in the automobile theft prevention fund shall only
be used for automobile theft prevention efforts and shall be
distributed based on need and efficacy as determined by the
authority.
(5)
Money in the automobile theft prevention fund shall is not
be
considered state money.
Sec. 6108. (1) Before April 1 of each year, an insurer engaged
in writing home insurance or insurance of commercial, industrial,
professional, or business property in this state, as a condition of
its authority to transact insurance in this state, shall pay to the
authority an assessment equal to $1.00 multiplied by the total
number of policies written in this state by the insurer during the
preceding calendar year that provided home insurance or insurance
of commercial, industrial, professional, or business property.
(2) The metal theft prevention fund is created. Money received
under subsection (1) shall be segregated and placed in the metal
theft prevention fund. The metal theft prevention fund shall be
administered by the authority.
(3) Money in the metal theft prevention fund shall be expended
in the following order of priority:
(a) To pay the costs of administration of the authority.
(b) To achieve the purposes and objectives of this chapter
relating to the prevention of metal theft, which may include, but
not be limited to, the following:
(i) Providing financial support to the department of state
police and local law enforcement agencies for metal theft
enforcement teams.
(ii) Providing financial support to state or local law
enforcement agencies for programs designed to reduce the incidence
of metal theft.
(iii) Providing financial support to local prosecutors for
programs designed to reduce the incidence of metal theft.
(iv) Providing financial support to judicial agencies for
programs designed to reduce the incidence of metal theft.
(v) Providing financial support for neighborhood or community
organizations or business organizations for programs designed to
reduce the incidence of metal theft.
(vi) Conducting educational programs designed to inform
property owners of methods of preventing metal theft and to provide
equipment, for experimental purposes, to enable property owners to
prevent metal theft.
(4) Money in the metal theft prevention fund shall only be
used for metal theft prevention efforts and shall be distributed
based on need and efficacy as determined by the authority.
(5) Money in the metal theft prevention fund is not state
money.
Sec. 6110. (1) The authority shall develop and implement a
plan of operation.
(2) The plan of operation shall include an assessment of the
scope
of the problem problems of automobile theft and metal theft,
including
particular areas of the this
state where the problem is
problems are greatest; an analysis of various methods of combating
the
problem of automobile theft, and
economic automobile theft,
and
metal theft; a plan for providing financial support to combat
automobile
theft, and economic automobile theft, and metal theft;
and
an estimate of the funds amount
of money required to implement
the plan.
(3)
The authority shall report annually on or before by
February 1 to the governor and the legislature on its activities in
the preceding year.
Sec. 6111. (1) By July 1 of every odd numbered year, the
automobile
theft prevention authority shall
prepare a report that
details
the theft of automobiles occurring in this state for in the
previous 2 years, assesses the impact of the thefts on rates
charged for automobile insurance, summarizes prevention programs,
and outlines allocations made by the authority. The director of the
department
of state police, insurers, and the commissioner director
shall cooperate in the development of the report as requested by
the
automobile theft prevention authority and shall make available
records and statistics concerning automobile thefts, including the
number of automobile thefts, the number of prosecutions and
convictions
involving that resulted
from automobile thefts, and
automobile
theft recidivism. The automobile theft prevention
authority shall evaluate the impact automobile theft has on the
citizens of this state and the costs incurred by the citizens
through insurance, police enforcement, prosecution, and
incarceration
due to because of automobile thefts.
(2) By July 1 of every odd numbered year, the authority shall
prepare a report that details metal theft in this state in the
previous 2 years, assesses the impact of metal theft on rates
charged for home insurance and commercial, industrial, professional
and business property insurance, summarizes prevention programs,
and outlines allocations made by the authority. The director of the
department of state police, insurers, and the director shall
cooperate in the development of the report as requested by the
authority and shall make available records and statistics
concerning metal theft, including the number of metal thefts, the
number of prosecutions and convictions that resulted from metal
thefts, and metal theft recidivism. The authority shall evaluate
the impact metal theft has on the citizens of this state and the
costs incurred by the citizens through insurance, police
enforcement, prosecution, and incarceration because of metal theft.
(3) The report authority shall submit the reports required by
this
section shall be submitted to the senate and house of
representatives standing committees on insurance issues and the
commissioner.director.