Michigan state lawmakers are attempting to repeal a new $300 fine on insured drivers who fail to provide proof of insurance during a traffic stop.

In addition, the Senate Appropriations Committee voted March 10 to rebate any such penalty assessed to vehicle owners since the fines took effect Oct. 1, the Lansing Bureau reported.

To recoup a portion of the millions in expected revenue loss, however, the fine for failing to actually have insurance will climb from $300 to $400, payable over two years.

The Michigan Treasury Department mailed fine notices last month to about 32,000 residents who couldn’t provide proof of insurance in the past five months. It is estimated about half of those drivers are actually insured.

The fine is added to the maximum $155 assessment in fines and court costs for failing to provide proof of insurance.

Rep. John Garfield, R-Rochester Hills, introduced a bill to repeal the fine on insured drivers. His bill – HB4308 – passed the House late last year.

The Senate is expected to complete action on the bill this week. Gov. Jennifer Granholm has said she’ll sign it.

The new insurance penalties were part of an overall package of new “bad driver” fines that are a key revenue piece of the 2004 state budget, the newspaper reported. Of the more than $76 million estimated to be raised from the new fees, about $13 million is projected to come from drivers who have insurance but couldn’t produce proof.

Under the change, a driver could still be cited, but would have 10 days to provide evidence to a local district court that he or she was insured on the date of the violation. After 10 days, the $400 penalty would be imposed.

Not all penalties on neglectful behavior are being repealed, however.

Drivers who fail to renew their plates after their birthday will still face a $10 fine. Getting stopped by an officer even one day after a license expires will cost a driver $300.