VETERANS’ STATE ID CARD FEE WAIVER

Senate Bill 404 as passed by the Senate

Sponsor:  Sen. Margaret O'Brien

House Committee:  Military and Veterans Affairs

Senate Committee:  Veterans, Military and Homeland Security

Complete to 1-26-18

SUMMARY:

Senate Bill 404 would amend Public Act 222 of 1972 to require the Secretary of State to waive the fee for issuance of a state personal identification card to a veteran.

Currently, Public Act 222 of 1972 provides for the issuance of an official state personal identification card. Under the act, an applicant must pay a $10 fee to the Secretary of State for each original or renewal ID card issued. The Secretary of State must waive the fee if the applicant is any of the following:

·         An individual who is 65 years of age or older.

·         An individual who has had his or her driver’s license suspended, revoked, or denied under the Vehicle Code because of mental or physical infirmity or disability.

·         An individual who presents evidence of statutory blindness.

·         An individual who decides to add or remove a heart insignia indicating a wish to participate in the anatomical gift donor registry.

·         An individual who presents another good cause for a fee waiver.

The bill would add to this list an individual who is a veteran, as that term is defined under Public Act 190 of 1965. However, before granting the fee waiver, the Secretary of State would have to require the applicant to provide the same documentation as is required to receive a veteran designation on the state personal identification card under the act.

MCL 28.292

FISCAL IMPACT:

The bill would result in a decrease in revenue to the Department of State. The extent of the decrease would depend on the number of veterans who take advantage of the $10 fee exemption for a new or renewal state personal ID card.

The most recent data on Michigan’s veteran population from the U.S. Department of Veterans Affairs (VA) estimate that there are 608,000 veterans in Michigan. A separate estimate from the U.S. Census Bureau puts the number at 559,000. For this analysis, the VA estimate is used. Currently, residents aged 65 years and older are already exempt from the fee. Eliminating the number of veterans estimated to be 65 and older, the annual number of veterans eligible to take advantage of the waiver would be 78,500.

A significant portion of these veterans would also not be expected to accept the waiver since they already have state driver’s licenses. Existing data, however, do not provide for the number of veterans with driver’s licenses. The U.S. Department of Transportation estimates that 87% of the driving-age population is licensed to drive. Assuming, then, that 80% of the Michigan veteran population is licensed to drive, 15,700 vets would be eligible for the waiver, resulting in a revenue decrease of $157,000. Since it is possible that the veteran driving population is unlike the national average, multiple estimates are given below according to varying percentages.

Revenue from ID cards is used to support various operations within the Department of State. There would be no fiscal impact on local units of government.

                                                                                        Legislative Analyst:   E. Best

                                                                                                Fiscal Analyst:   Michael Cnossen

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.