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State of
DEPARTMENT
OF NATURAL RESOURCES |
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JENNIFER M. GRANHOLM governor |
REBECCA A. HUMPHRIES director |
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State of
DEPARTMENT
OF NATURAL RESOURCES |
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JENNIFER M. GRANHOLM governor |
REBECCA A. HUMPHRIES director |
POSITION
The Department of
Natural Resources supports this legislation.
PROBLEM/BACKGROUND
The requirement to
purchase a Motor Vehicle Permit (MVP) for entry into a Michigan State Park or
Recreation Area has applied to everyone equally since 1961. At that time in history, the state park
system received approximately 60 percent of operating revenue from the General
Fund (GF). Since 1961, the percentage of
GF support has eroded to the point of elimination in FY 2004. The revenue generated from the sale of MVPs
is critical for funding state park operations.
In 2004, the MVP Act was amended to add an out-of-state permit (daily
and annual) at an increased price. This
additional revenue helped to partially offset the loss of GF support.
DESCRIPTION OF BILL
This bill would amend
section 74117 (MCL 324.74117) of PA 477, 2006, to exempt active duty military
personnel from the requirement to purchase/display a valid MVP for park entry.
SUMMARY
OF ARGUMENTS
Pro
This bill would recognize and reward the efforts and
dedication of our military personnel in the defense of our country.
Many other states, in addition to the National Parks Service, have
similar "discount" programs for military personnel.
Con
This bill would
negatively impact the ability of the park system to generate operational
revenue. However, the impact of this
legislation would likely be minimal. Of
greater concern would be the possibility that this change could also open the
door to requests from other groups to receive similar treatment.
FISCAL/ECONOMIC
IMPACT
Are there revenue or
budgetary implications in the bill to the --
Budgetary:
None
Revenue:
Operational revenues will be reduced as a result of
this legislation.
Comments:
The Parks and Recreation Division is
currently operating under a structural deficit. The general economy of Michigan, gas prices,
and other economic factors have resulted in a slight decline in park attendance
and, thus, revenue necessary for the continued operational needs of the
Division. Loss of revenue resulting from
this legislation will not improve the Division’s financial situation.
Budgetary/Revenue:
None
Comments:
None
(c) Local Government
Comments:
None
OTHER STATE DEPARTMENTS
None
ANY OTHER PERTINENT INFORMATION
There have been a number
of bills introduced in the past few years that would exempt any number of
individuals based on various criteria that may apply to a certain individual,
e.g., Vietnam-era veterans, disabled veterans, and motor home owners. The Department has consistently opposed such
legislation in the past because each bill represented a decline in the ability
to collect revenue critical to the continued operation of the park system. None of the past bills, nor this bill,
include a funding source to replace lost revenue.
ADMINISTRATIVE
RULES IMPACT
Rules can be
promulgated to provide for administration of the act.
_______________________________
Rebecca A. Humphries
Director
_______________________________
Date
PRD/FMFM
