VETERANS SPECIAL LICENSE PLATE FEE; PROHIBIT                                H.B. 5678 (H-1):

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

House Bill 5678 (Substitute H-1 as reported without amendment)

Sponsor:  Representative Bradley Slagh

House Committee:  Military, Veterans and Homeland Security

Senate Committee:  Transportation and Infrastructure

CONTENT

The bill would amend the Michigan Vehicle Code to delete various provisions requiring service members and veterans to pay a $5 service fee when applying for or renewing a veterans special registration plate, and to prohibit an application or renewal of a veterans special registration plate from requiring a service fee.

MCL 257.217d et al.                                             Legislative Analyst:  Tyler P. VanHuyse

FISCAL IMPACT

The bill would decrease restricted revenue for the Department of State by an estimated $75,000 annually. The elimination of the $5 service fee currently paid for the specialty license plates would decrease revenue to the Transportation Administration Collection Fund (TACF) by an estimated $75,000 for the Department based on fiscal year (FY) 2020-21 revenue collections. The TACF is a primary funding source for the Department's operational costs. Based on the FY 2020-21 data, just under 15,000 veterans specialty plates were issued in FY 2020-21. The three most-issued plates that provide a majority of the revenue from these specialty plates were Vietnam Veteran (640 plates), Disabled Veteran (2,859 plates), and Foreign Wars Service (10,578 plates).

Date Completed:  5-17-22                                               Fiscal Analyst: Joe Carrasco, Jr.

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.