FUND-RAISING LICENSE PLATE SUNSET H.B. 4963: COMMITTEE SUMMARY
House Bill 4963 (as passed by the House)
Sponsor: Representative David Law
House Committee: Transportation
Senate Committee: Transportation
Date Completed: 9-12-05
CONTENT
The bill would amend the Michigan Vehicle Code to repeal the October 1, 2005, sunset on the Code's provisions regarding fund-raising specialty license plates.
The Code allows the Secretary of State (SOS) to develop up to seven State-sponsored fund-raising registration plates. An application for a fund-raising plate must be accompanied by payment of the regular vehicle registration tax in addition to a service fee, as provided in Section 811f. (Under that section, an application for an original fund-raising plate must be accompanied by a $25 donation, the regular registration tax, and a $10 service fee. An application for renewal of a fund-raising plate must be accompanied by payment of the regular registration tax and a $10 donation.)
The SOS must segregate the fund-raising service fees into a separate account for each type of fund-raising plate. After deducting the manufacturing and administrative costs associated with issuing, replacing, and substituting the plates, the SOS must transfer the balance to the State Treasurer, on a quarterly basis. The State Treasurer then must distribute the funds to the designated entity.
The bill would repeal a sunset date of October 1, 2005, for Sections 6d, 17b, 30b, and 811d through 811n. Those sections contain certain definitions; provide for the application process and fees for a fund-raising license plate and matching collector plate; and allow the SOS to issue fund-raising plates recognizing water quality, Michigan's children, Michigan lighthouses, nongame critical wildlife habitat, and agricultural heritage.
MCL 257.625 et al. Legislative Analyst: Julie Koval
FISCAL IMPACT
The Department of State reports that in FY 2003-04, there were 196,598 fund-raising plate transactions generating $1.2 million for special causes and $1.2 million for 15 State universities.
If the sunset is not eliminated, the Department of State will have to replace fund-raising plates with standard issue plates at the next renewal date, and special causes and universities will not have the fund-raising plate option to generate revenue.
Fiscal Analyst: Bill Bowerman
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. hb4963/0506