0826: FLOOR ANALYSIS - SPECIALTY FUND-RAISING PLATES

SPECIALTY FUND-RAISING PLATES - S.B. 826 (S-1)-829: FLOOR ANALYSIS

Senate Bill 826 (Substitute S-1 as reported)

Senate Bills 827, 828, and 829 (as reported without amendment)

Sponsor: Senator Bill Bullard, Jr. (S.B. 826)

Senator Bev Hammerstrom (S.B. 827 & 829)

Senator Mike Rogers (S.B. 828)

Committee: Transportation and Tourism

CONTENT

Senate Bill 826 (S-1) would amend the Michigan Vehicle Code to do the following:

-- Permit the Secretary of State (SOS) to develop a Michigan university fund-raising registration plate and a matching collector plate, limited-term registration plates, and up to six State-sponsored fund-raising registration plates and matching collector plates.

-- Permit the SOS to issue a fund-raising plate instead of a standard registration plate for use on passenger vehicles.

-- Require a person purchasing a fund-raising plate or a collector plate to pay a $10 service fee and a $25 fund-raising donation; require a renewal application for a fund-raising plate to include the vehicle registration tax and a $10 donation; and require a person purchasing an original or renewal fund-raising plate to pay the regular vehicle registration tax, as well.

-- Allow a collector plate to be displayed on a vehicle's front bumper.

-- Require service fees to be credited to the Michigan Transportation Fund, and be used to defray manufacturing and administrative costs associated with fund-raising and collector plates, and provide for the disbursement of the funds.

-- Permit the SOS to authorize the commercial use of a plate design upon consent of the pertinent State university or sponsoring entity.

Sections of the bill and the bills to which it is tie-barred would be repealed five years after their effective dates.

Senate Bills 827 and 828 would amend the Michigan Vehicle Code to require the SOS, under provisions of Senate Bill 826, to develop and, upon application, issue a State-sponsored Children's Trust Fund-Raising registration plate and a State-sponsored Michigan Veterans Memorial Fund-Raising registration plate, respectively, as well as matching State-sponsored collector plates.

Senate Bill 829 would amend Public Act 249 of 1982, which establishes the State Children's Trust Fund in the Department of Treasury, to require the State Treasurer to credit to the Trust Fund any amounts received under Senate Bill 827.

Senate Bills 826 (S-1), 827, and 828 would take effect October 1, 2000.

Senate Bill 826 (S-1) is tie-barred to House Bills 5040, 5041, 5042, which would provide for the issuance of an agricultural heritage specialty plate, a lighthouse preservation plate, and a water quality preservation plate, respectively. The bill also is tie barred to Senate Bill 770, which would provide for the issuance of a critical wildlife habitat specialty plate, as well as Senate Bills 827 and 828.

Senate Bill 827 is tie-barred to Senate Bills 826 and 829. Senate Bill 828 is tie-barred to Senate Bill 826. Senate Bill 829 is tie-barred to Senate Bill 827.

MCL 257.803l et al. (S.B. 826) - Legislative Analyst: L. Arasim

Proposed MCL 257.811j (S.B. 827)

Proposed MCL 257.811m (S.B. 828)

MCL 21.171 (S.B. 829)

FISCAL IMPACT

These bills would increase revenue to the State. There would be some administrative costs to the Department of State to administer the program. However, the costs would be absorbed by the revenue gained from the sale of the license plates. Because the number of people who would purchase fund-raising plates is unknown, the fiscal impact of the program is indeterminate. However, figures for other plate programs are shown below for reference.

	Olympic Plates		Organizational Plates
	Issued	Fees	Issued	Fees
FY 1995-96	5,795	$139,357	1,439	$35,975
FY 1996-97	6,985	$146,326	1,228	$30,700
FY 1997-98	7,244	$177,762	1,283	$32,075
FY 1998-99	7,800	$192,000	1,400	$35,000

After the Department of State deducts its costs from the original fees for the Olympic plates, the remainder is sent to the Olympic Training Center at Northern Michigan University. The chart above shows the total revenue collected from fees for both the Olympic plates and the organizational plates. The figures for FY 1998-99 are projected totals.

Date Completed: 10-27-99 - Fiscal Analyst: E. LimbsFloor\sb826

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.