SPECIAL PLATE; PARTIALLY DISABLED VET                                                S.B. 502 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bill 502 (Substitute S-1 as reported)

Sponsor:  Senator Marty Knollenberg

Committee:  Transportation

CONTENT

The bill would amend the Michigan Vehicle Code to allow a partially disabled veteran to apply for a disabled veteran special registration plate, but not exempt a partially disabled veteran from payment of the registration tax.

Under the Code, a person who is a disabled veteran with an honorable discharge from the armed services may apply to the Secretary of State (SOS) if he or she owns a private passenger motor vehicle, and the SOS may issue a special registration plate inscribed with special identification numbers preceded by the letters "DV" and the words "disabled veteran" inscribed beneath the registration number.

Under the bill, a partially disabled veteran could obtain a DV plate if the veteran provided proof that he or she had been determined to have a service-connected disability rating.

The Code specifies that the special registration plate is exempt from payment of the tax provided for in Section 801. (Section 801 prescribes the registration taxes the SOS is required to collect when registering a vehicle.) Under the bill, this would apply only to a totally disabled veteran.

The bill would take effect August 1, 2019.

MCL 257.803f                                                          Legislative Analyst:  Drew Krogulecki

FISCAL IMPACT

The bill would have a negligible fiscal impact on the Department of State due to programming costs associated with the provisions of the bill; however, these costs should be minimal and absorbable within current annual appropriations.

According to the Department, there are an estimated 627,000 veterans across the State. An estimated 8,000 totally disabled veterans across Michigan currently are receiving the exemption from the registration tax. Veterans with a partial disability who would qualify under the bill for the DV designation would still be required to pay the required annual registration tax, along with the required $5 service fee to cover the cost of the DV designation. However, as mentioned above, the Department would have some computer programming costs to allow the DV designation to be extended to a larger pool of veterans.

Date Completed:  5-7-18                                                     Fiscal Analyst:  Joe Carrasco

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.