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Michigan Senate passes altered proof of insurance law

Michigan drivers who are insured but fail to provide proof during a traffic stop would get some relief if a bill that passed the state Senate this week becomes law.

The bill would change the Michigan driver responsibility laws that took effect Oct. 1, The Detroit News reported. Drivers who could produce proof they were insured at the time they were cited could avoid fees and court costs that now are as high as $435 over a two-year period, including $300 in “bad driver” assessments.

The legislation changes the law so that drivers who can prove before the court appearance date on their citations that they have insurance would pay only a $25 administrative fee, which was charged even before last year’s legislation. Insured drivers who already have been fined under the new law could get their “bad driver” penalties refunded by appealing in court.

The bill – SB4308 – passed the Senate by a 32-5 vote March 16 and now heads back to the House to consider changes.

While giving insured drivers a chance to recoup fines, the Senate plan could make uninsured drivers pay even more than before. The revised version would have those drivers pay up to $575, including $400 in “bad driver” fines over two years.

The original driver responsibility law was intended to generate up to $25 million each year from fines on residents who couldn’t provide proof of insurance, the newspaper reported. But that could be cut significantly if many of the 32,000 people who have been cited since the law took effect five months ago don’t have to pay the “bad driver” fines, even if those who aren’t insured pay more.

Gov. Jennifer Granholm generally supports the bill but wants to replace the lost revenue, spokeswoman Liz Boyd said.

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