State of Michigan DEPARTMENT OF NATURAL RESOURCES Lansing
JENNIFER M. GRANHOLM governor		REBECCA A. HUMPHRIES director

BILL ANALYSIS

BILL NUMBER:	HOUSE BILL 4875 (AS INTRODUCED)
TOPIC:	Expand state park pass to include boat launch access
SPONSOR:	Representative Gail Haines
CO-SPONSORS:	None
COMMITTEE:	Tourism, Outdoor Recreation and Natural Resources
Analysis Done:	May 27, 2009

POSITION

The Department of Natural Resources (DNR) opposes this legislation.

PROBLEM/BACKGROUND

Currently, visitors entering a Michigan State Park or Recreation Area are required to purchase/display a daily or annual Motor Vehicle Permit (MVP). Revenue from the sale of those permits is deposited into the Park Improvement Fund and used for park operations. Cost for the permit is $6 for the daily permit and $24 for the annual permit. There are also bridge card annuals, non-resident and commercial MVPs.

At 75 (out of over 850) Boating Access Sites (BAS), a BAS entry permit is required. Only sites requiring Department staffing for control are designated fee sites. Daily and annual fees match those set for the MVP program. Revenue from the sale of BAS permits is deposited into the Waterways Fund and used for supporting boating site maintenance and operations.

Visitors do complain that having two sticker programs is confusing when both programs are administered by the same DNR Division and many resent paying for two permits. However, the boating fee sites are not located in the state parks or recreation areas.

DESCRIPTION OF BILL

House Bill 4875 combines the state park motor vehicle permit and the boating access site permit into a single permit. Those individuals who currently purchase both permits will only need to purchase one. Since the revenues collected from the MVP program must be deposited into the Park Improvement Fund and the revenue from the BAS fees must be deposited into the Waterways Fund, this bill proposes a percentage split of the revenues from the combined permit based on the sales made in 2009. The bill also

extends the sunset date to January 1, 2012, and does not adjust the fees currently charged.

SUMMARY OF ARGUMENTS

Pro

• This bill would reduce customer confusion by making all DNR, Parks and Recreation Division (PRD), administered facilities accessible via a single permit system.

Con

• The Park Improvement Fund and the Waterways Fund are two separate funds. Basically, this bill would eliminate over $500,000 currently collected at 75 fee sites and used to help maintain over 850 boat launches statewide.
• Revenues to the Department would diminish since users would only need to purchase one permit instead of two. At a time when the Department is experiencing declining revenues, any additional reduction would only add to the revenue problems that the Department is facing and will continue to erode the services that the parks and boating access sites are able to provide. General Fund support for the park system was eliminated in 2004.
• This bill does not include the increases to the motor vehicle permit fees that were proposed in the FY 2010 Executive Recommendation. This will further limit the amount of revenue that the Department receives and will hinder park operations and maintenance.

FISCAL/ECONOMIC IMPACT

Are there revenue or budgetary implications in the bill to the --

(a) Department

Budgetary:

None

Revenue:

While the number of visitors who purchase both the park and boating permits is unknown, it is clear the result of this legislation would be less revenue for the Department. This figure is most likely in the range of $500,000 annually.

Comments:

None

(b) State

Budgetary:

None

Revenue:

None

Comments:

None

(c) Local Government

Comments:

None

OTHER STATE DEPARTMENTS

N/A

ANY OTHER PERTINENT INFORMATION

This legislation does not include the increases to the MVP fees that were proposed in the FY 2010 Executive Recommendation. This will further limit the amount of revenue that the Department receives and will hinder park operations and maintenance.

Passage of Senate Bills 388 and 389 as well as House Bills 4677 and 4678, the recreation passport bills, would negate the need for this legislation.

ADMINISTRATIVE RULES IMPACT

Rules can be promulgated to provide for administration of the act.

_______________________________

Rebecca A. Humphries

Director

_______________________________

Date

PRD/BSS