ALLOCATION STUDY S.B. 1317: COMMITTEE SUMMARY
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Senate Bill 1317 (as introduced 5-15-08)
Sponsor: Senator Bill Hardiman
Committee: Transportation


Date Completed: 5-19-08

CONTENT The bill would amend the Michigan Transportation Fund law to require the Auditor General to conduct a study to determine the actual costs incurred by the Departments of Treasury and State Police in the administration and enforcement of certain statutes.

The law requires the Legislature to appropriate funds for necessary expenses incurred in the administration and enforcement of the Motor Fuel Tax Act, the Motor Carrier Act, and certain sections of the Michigan Vehicle Code dealing with registration fees. Funds appropriated for those expenses must be based on established cost allocation methodology that reflects actual costs.


Under the bill, beginning October 1, 2007, the methodology would have to be based on actual costs incurred since October 1, 2002. The Auditor General would have to complete a study to determine the actual costs incurred by the Departments of Treasury and State Police and to be reimbursed no later than December 31, 2007.


MCL 247.660 Legislative Analyst: Curtis Walker

FISCAL IMPACT
The Auditor General would be reimbursed by the Michigan Transportation Fund for any costs incurred in conducting the study that the bill would require. Current law allows these funds to be used for any purpose as provided in the Act, which would include the study conducted by the Auditor General.


The bill would have no fiscal impact on local government.

Fiscal Analyst: Joe Carrasco

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. sb1317/0708