2007 House Bill 4675

Put MCCA under FOIA and OMA

Introduced in the House

April 26, 2007

Introduced by Rep. Michael Sak (D-76)

To require the Michigan Catastrophic Claims Association (MCCA) to comply with the state Freedom of Information Act (FOIA) and the Open Meetings Act, which otherwise apply to public bodies. MCCA is the private entity established to provide reinsurance to cover the liability of individual auto insurance companies to pay unlimited medical claims above $400,000 per incident, as required by the state no-fault auto insurance law.

Referred to the Committee on Insurance

Dec. 6, 2007

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Feb. 21, 2008

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Joe Hune (R-47)

To tie-bar the bill to House Bill 5453, meaning this bill cannot become law unless that one does also. HB 5453 would allow a person age 65 or older who is on Medicare to waive the mandatory unlimited personal injury protection (PIP) auto insurance coverage provided by the Michigan Catastrophic Claims Association. Note: Although passed, the amendment was not included in a subsequent substitute version of the bill that was adopted.

The amendment passed by voice vote

Amendment offered by Rep. Paul Opsommer (R-93)

To tie-bar the bill to House Bill 4070, meaning this bill cannot become law unless that one does also. HB 4070 would regulate but not ban the use of “credit scoring” by insurance companies, in which a person’s credit history is used to give discounts or deny coverage. Note: Although passed, the amendment was not included in a subsequent substitute version of the bill that was adopted.

The amendment passed by voice vote

Amendment offered by Rep. Jacob Hoogendyk (R-61)

To tie-bar the bill to House Bill 5627, meaning this bill cannot become law unless that one does also. HB 5627 would repeal the <a href="http://www.michiganvotes.org/2007-HB-5408">21.99 percent Michigan Business Tax surcharge</a> imposed on businesses to replace the revenue from the <a href="http://www.michiganvotes.org/2007-HB-5198">6 percent tax on many services</a> that was passed on Sept. 30, 2007 to avoid government spending reductions in 2008 and was then repealed several hours after it went into effect on Dec. 1, 2007. Note: Although passed, the amendment was not included in a subsequent substitute version of the bill that was adopted.

The amendment passed by voice vote

Substitute offered by Rep. Michael Sak (D-76)

To replace the previous version of the bill with one that also would require an annual audit of the Michigan Catastrophic Claims Association by the state Auditor General or an independent audit firm retained by the Auditor General. This substitute also sweeps away all the amendments adopted to this point.

The substitute passed by voice vote

Passed in the House 66 to 38 (details)

To require the Michigan Catastrophic Claims Association (MCCA) to comply with the state Freedom of Information Act (FOIA) and the Open Meetings Act, which otherwise apply to public bodies. Also, to require an annual audit of the Michigan Catastrophic Claims Association by the state Auditor General or an independent audit firm retained by the Auditor General. MCCA is the private entity established to provide reinsurance to cover the liability of individual auto insurance companies to pay unlimited medical claims above $400,000 per incident, as required by the state no-fault auto insurance law.

Motion by Rep. Steve Tobocman (D-12)

To give the bill immediate effect.

The motion failed 58 to 46 (details)

Received in the Senate

Feb. 26, 2008

Referred to the Committee on Economic Development and Regulatory Reform