State of Michigan

 

JENNIFER M. GRANHOLM

governor

DEPARTMENT OF NATURAL RESOURCES

Lansing

K. L. COOL

director

 


 

 

BILL ANALYSIS

 

BILL NUMBER:       HB 5023, AS INTRODUCED

TOPIC:                       Free daily Motor Vehicle Permit for Gulf War Veterans

SPONSOR:              Representative Milosch,

CO-SPONSORS:    Representatives Garfield, McConico, Phillips, Drolet, Brandenburg,

                                    Acciavatti, and Meyer

COMMITTEE:           Conservation and Outdoor Recreation

Analysis Done:       September 8, 2003

POSITION

Oppose.

PROBLEM/BACKGROUND

N/A

DESCRIPTION OF BILL

This bill, as introduced, would provide for a free daily motor vehicle permit for entry into any Michigan State Park for the 2004 season for members of the armed forces possessing a “global war on terrorism” expeditionary or service medal.

SUMMARY OF ARGUMENTS

Pro

This bill, if passed, would provide a financial benefit for an unknown number of Gulf War veterans.  This bill recognizes the efforts that our military personnel have made to protect and defend our country.

 

Con

 

There are some significant concerns with this bill.  First, the bill does not reflect recent increases to the motor vehicle permit fees, included in PA 170 of 2003, that are essential to meeting our Fiscal Year 2003-04 budget obligations.  This legislation also could open the door to requests from other groups to receive the same treatment, and the amount of lost revenue could be significant.  Secondly, each of these special rates and terms of sale needs to be administered by Parks and Recreation, which will increase costs and decrease efficiency.  This decrease in efficiency will likely mean longer lines and longer waits for visitors at park entrances.  SB 537 has already resulted in the need for significant verification requirements for non-resident permits and “food stamp” discounted permits in addition to the existing requirements for sales of the “senior citizen” permit.  Park visitors, waiting in line to enter the park, will most likely experience additional delays if this legislation is enacted.

 

The bill has the potential to reduce operating revenue for the Parks and Recreation Bureau (PRB) at a time when General Fund dollars are no longer available to support PRB programs.  The logistics of implementing this program will add complications to PRB entrance procedures by slowing visitor entry into the parks due to the verification requirements necessary to implement the terms and conditions identified in this bill.  An administrative system to track “free” permits would have to be established.  The bill is also silent on the issue of the number of “free” permits that may be issued to a single, eligible individual.  For example, many veterans camp for a number of nights in a single park.  Does this legislation imply that this individual would be exempt from the motor vehicle permit purchasing requirement for the length of their camping stay?

 

FISCAL/ECONOMIC IMPACT

(a)     Department

Budgetary:

Budgetary implications could be significant as revenue is negatively impacted by this bill which would further compromise PRB’s ability to continue to provide recreational services expected by park visitors. 

Revenue:   

Firm figures are not available regarding the actual number of Gulf War veterans who would be eligible.  The Parks and Recreation Bureau sells approximately 900,000 daily motor vehicle permits in a year.  If we assume that two percent of those sales are to Gulf War veterans, that would represent a revenue loss of over $100,000 to the Bureau.

Comments:

At a time when PRB is expected to become “self-sufficient”, this kind of legislation impairs the ability to meet that goal.

 (b)    State

Budgetary:

                         See Department impacts.

Revenue:   

None.

Comments:

None.

(c)     Local Government

Comments:

No impact.

OTHER STATE DEPARTMENTS

No impact.

ANY OTHER PERTINENT INFORMATION

None.

ADMINISTRATIVE RULES IMPACT

None.

 

 

 

 

_______________________________

K. L. Cool

Director

 

_______________________________

Date

 

 

PRB/BSS