House of Representatives Week in Review: January 21st - 23rd

Hello Friends,

Below please find an update on legislation passed by the House of Representatives last week (January 21st-23rd). Please feel free to contact me (517.373.0826; andyschor@house.mi.gov) if you have questions or thoughts about any of the below bills.

Thank you!

Andy Schor
State Representative
68th District

Creation of a Human Trafficking Commission
HB 5158 (Heise); 1/22/14, Passed: 109-1
Next: Sent to Senate for consideration
HB 5158 creates a Human Trafficking Commission within the Department of Attorney General.

Enhancement of Criminal Penalties for Solicitation of Commercial Sex for Minors
HB 4209 (Zorn), 1/22/14, Passed: 109-1
HB 4210 (Kowall), 1/22/14, Passed: 109-1
Next: Sent to Senate for consideration
HB 4209 and HB 4210 enhance criminal penalties for persons who solicit minors for commercial sex. The penalty would be a felony, up to five years in prison, and/or up to a $10,000 fine.

Creation of an Offer-In-Compromise Program in Michigan
HB 4003 (Walsh), 1/23/14, Passed: 107-0
Next: Sent to Senate for consideration
HB 4003 will create an offer-in-compromise program in Michigan where specific taxpayers with unpaid taxes can negotiate with the state to pay less than what is owed to clear the debt.

Allowing Group Life Insurance Plans to Be Issued to an Association or Trust
HB 5146 (Segal), 1/23/14, Passed: 107-0
Next: Sent to Senate for consideration
HB 5146 would allow group life insurance plans to be issued to an association or to a trust or to the trustees of a fund established or maintained for the benefit of the members of an association. Such a policy may be issued for the members, employees, or the employees’ of members of the association. For eligibility under this bill, an association must meet the following criteria: (1) It must have at least 100 members; (2) It must have been organized for a purpose other than obtaining insurance; (3) It must have been in existence for at least two years; and (4) It must have been adopted by laws requiring meeting at least once a year, the collection of dues (unless the association is a credit union), and voting rights board representation for its members.

Changes to the Variable Annuity Contract Requirements
HB 5147 (Goike), 1/23/14, Passed: 107-0
Next: Sent to Senate for consideration
HB 5147 would state that, if a variable annuity contract was approved by the SEC, it is considered to conform to Michigan’s readability requirements.

Definition of Qualified Assets for Determining Minimum Asset Requirements of Insurance Companies
HB 5148 (Hovey-Wright), 1/23/14, Passed: 107-0
Next: Sent to Senate for consideration
HB 5148 deals with the definition of qualified assets for the purpose of determining minimum asset requirements of insurance companies under Section 901. Under current law, stocks and bonds from the US are considered qualified assets. Under the bill, qualified assets would include preferred stock of companies organized under the laws of Canada or a province or territory of Canada. (The act currently refers to companies organized under the laws of the United States, any U.S. state, or the District of Colombia.)

Accelerated Benefit Definitions for Life Insurance Policies
HB 5149 (Cochran), 1/23/14, Passed: 107-0
Next: Sent to Senate for consideration
HB 5149 adds “chronic illness” as a “qualifying event” that allows the payment of accelerated benefits. “Chronic illness” would be defined as a permanent medical condition that results in an individual being unable to attend basic physical activities such as eating, toileting, bathing, grooming, dressing, or ambulating. The term would also include a permanent severe cognitive impairment or similar form of dementia. Finally, the bill also stipulates that accelerated benefits cannot be collected under long-term care insurance.

Allowing Applications for Life Insurance to be Obtained Electronically
HB 5150 (Glardon), 1/23/14, Passed: 107-0
Next: Sent to Senate for consideration
HB 5150 allows for applications for life insurance to be obtained by electronic means. HB 5150 also addresses how a refund is calculated if a customer who has purchased life insurance changes his or her mind within 10 days of making the purchase. The bill stipulates that, if that situation occurs, the customer would receive 100% of his or her money back, plus any gains or minus any losses that occurred while it was part of the insurance company’s investments.