The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 5564

September 19, 1979

MOTOR VEHICLES:

Special registration

INSURANCE:

Special registration of motor vehicles

Where a motor vehicle is operated in this State by a non-resident owner or out-of-state registrant for less than thirty (30) days, it is not necessary for the owner to obtain or present proof of insurance or other security.

The Honorable Richard H. Austin

Secretary of State

State Treasury Building

Lansing, Michigan 48918

You have requested my opinion on the following questions relating to the registration and insuring of motor vehicles:

1) Does a special registration, issued pursuant to MCLA 257.226(e), constitute a Michigan registration for purposes of section 3102 of the Insurance Code (MCLA 500.3102)?

2) Must a nonresident purchaser of a vehicle present proof the vehicle is insured in compliance with Michigan law prior to issuance of a 30 day registration by the Secretary of State?

The legislature has provided through the Michigan Motor Vehicle Code, 1949 PA 300, Sec. 216; MCLA 257.216; MSA 9.1916, that every motor vehicle shall be subject to registration with certain specified exceptions:

'Every motor vehicle, trailer coach, trailer, semitrailer, and pole trailer, when driven or moved upon a highway shall be subject to the registration and certificate of title provisions of this act except:

'(a) A vehicle driven or moved upon a highway in conformance with the provisions of this act relating to manufacturers, transporters, dealers, or nonresidents.' [Emphasis added]

In order to encourage the purchase of vehicles by nonresidents, yet avoid the absurdity of requiring registration of vehicles which will not be driven in the state, section 226(10), the Motor Vehicle Code, supra, provides for the special registration of some vehicles:

'The secretary of state may issue a special registration:

'(a) For a new vehicle purchased outside of this state and delivered in this state to a nonresident purchaser by the manufacturer of that vehicle for removal to the residence of the purchaser outside of this state, if an attestation is made that the vehicle will be primarily used, stored, and registered outside of this state and will not be returned to this state by the purchaser for use or storage.

'(b) For a vehicle purchased and delivered in this state to a nonresident purchaser by a dealer or owner of the vehicle for removal to the residence of the purchaser outside of this state, if an attestation is made that the vehicle will be primarily used, stored, and registered outside of this state and will not be returned to this state by the purchaser for use or storage.

'(c) For a vehicle purchased in this state and delivered to the purchaser by a dealer or by the owner of the vehicle for removal to a place outside of this state, if an attestation is made that the vehicle will be primarily used, stored, and registered outside of this state and will not be returned to this state by the purchaser for use or storage. MCLA 257.226(10); MSA 9.1926 [Emphasis added]

A special registration 'may' be issued for a vehicle in accord with this act, but such registration is not mandatory. While a registration under this statute is termed 'special' it is nevertheless clearly 'registration by the state'.

The Michigan Insurance Code of 1956, 1956 PA 218 (1), provides for the limited operation of motor vehicles not registered in the state.

'A nonresident owner or registrant of a motor vehicle not registered in this state shall not operate or permit the vehicle to be operated in this state for an aggregate of more than 30 days in any calendar year unless he continuously maintains security for the payment of benefits.' MCLA 500.3102; MSA 24.3102 [Emphasis added]

This act requires the maintenance of 'security' (insurance) where a motor vehicle is operated in the state by a non-resident owner of out-of-state registrant for more than 30 days. It is my opinion that motor vehicles registered under 1949 PA 300, Sec. 226, supra, are specially registered for 30 days. Therefore, 1956 PA 218, Sec. 3102, supra, would be inapplicable until after the special registration issued under 1949 PA 300, Sec. 226, has expired.

In your second question you ask whether a non-resident purchaser of a vehicle must present proof that the vehicle is insured prior to the issuance of a 30 day registration of said vehicle by the Secretary of State.

The Michigan Insurance Code of 1956, 1956 PA 218, Sec. 3101; MCLA 500.3101; MSA 24.13101, requires that the owner of a vehicle required to be registered in this state shall maintain insurance or other security.

'The owner or registrant of a motor vehicle required to be registered in this state shall maintain security for payment of benefits under personal protection insurance, property protection insurance, and residual liability insurance. Security shall be in effect continuously during the period of registration of the motor vehicle.' [Emphasis added]

Sections 3101(3) and (4) provide that security (insurance) may be obtained under an insurance policy issued by an insurer duly authorized to transact business in the state or by any other method filed and continuously maintained with the Secretary of State throughout the registration period of the vehicle in conformity with Sec. 3101(4), supra. The Legislature did not require owners or registrants of a specially registered vehicle to be bound by this provision.

A non-resident purchaser of a vehicle 'may' register his vehicle in the state. However, the non-resident vehicle owner is not required under 1956 PA 218, Sec. 3102, to register his vehicle in this state until it has been operated in the state in excess of 30 days. The statute, 1956 PA 218, Sec. 3101, mandates that only those vehicles which are 'required' to be registered in 'this state' shall maintain insurance. It is therefore my opinion that a non-resident purchaser of a motor vehicle is not required to present proof of insurance prior to the expiration of a 30 day special registration for said vehicle.

Frank J. Kelley

Attorney General

(1) Compulsory insurance requirements were dealt with in Shavers v Attorney General, 402 Mich 554, 609; 267 NW2d (1978), wherein the court stated:

'We therefore believe it best, for purposes of the general jurisprudence, the general welfare of the public, and the administration of justice in our state to hold the 'compulsory insurance requirement' of the No-Fault Act unconstitutional . . .'