REGISTRATION FEE EXEMPTION - S.B. 528: FLOOR ANALYSIS

Senate Bill 528 (as reported with amendments)

Sponsor: Senator Leon Stille

Committee: Local, Urban and State Affairs

CONTENT

The bill would amend the Michigan Vehicle Code to exempt a qualified police officer from having to pay a vehicle registration fee. "Qualified police officer" would mean a person who met the following conditions: was employed as a police officer by the State or by a municipality (county, city, village, or township) in the State; lived in a high-crime area; worked as a police officer in the high-crime area where he or she lived; and, met any other conditions as determined by the municipality where he or she lived. "High-crime area" would mean an area within a municipality that the Department of State Police determined was a high-crime area based on the State Police Uniform Crime Reporting Program statistics and other relevant factors after consultation with the municipality.

MCL 257.217 - Legislative Analyst: L. Arasim

FISCAL IMPACT

The fiscal impact of these provisions is indeterminate. Under the terms of the bill, the determination of a "high-crime area" would be made by the Department of State Police after consulting with the local municipality. Because these determinations have not yet been made it is not possible to estimate how many of the 20,000 statewide police officers currently live and work in high-crime areas. Also unknown is the number of police officers who would move into neighborhoods defined as high-crime areas after this program was implemented.

The average registration fee per vehicle for passenger vehicles is approximately $58 per vehicle. Exempting "qualified police officers" from the requirement to pay a registration fee would result in a loss of revenue for the Michigan Transportation Fund.

Finally, in order to verify that someone was a qualified police officer, the Secretary of State would have to maintain a list of designated high-crime areas, and make that list available to its branch offices. It is difficult to estimate the costs of establishing and operating this new system.

Date Completed: 2-12-98 - Fiscal Analyst: E. Limbs

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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.