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State of
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JENNIFER M. GRANHOLM governor |
DEPARTMENT
OF NATURAL RESOURCES |
K. L. COOL director |
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State of
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JENNIFER M. GRANHOLM governor |
DEPARTMENT
OF NATURAL RESOURCES |
K. L. COOL director |
1.
Bill Number and Sponsor:
Senate Bill No. 604
Senator Jason Allen
2.
Purpose:
This
bill, as introduced, would provide for a 75 percent discount off the standard
price of the Michigan State Park Annual, Motor Vehicle Permit (MVP) for
individuals displaying a “handicap”
3.
How Does This Legislation Impact Current Programs in
the Department?:
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 of sale as identified in this bill.
4.
Introduced at Agency Request?:
No.
5.
Agency Support?:
No.
6.
Arguments Against the Bill:
The Michigan Secretary of State indicates that 27,438 people purchased a license plate for disabled persons from August 2002, through July 2003. The Secretary of State’s office was not able to easily provide information on the number of disabled license plate renewals in that time period.
It is difficult
to predict how many disabled persons currently purchase an annual park MVP.
Also, it is unclear whether disabled persons who do not currently buy an
annual MVP will purchase one, if the
bill becomes law. It is, therefore,
difficult to determine the amount
of revenue lost or gained due to the proposed change.
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 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. Senate Bill 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.
7.
Arguments for the Bill:
This
bill, if passed, would provide for a significant financial benefit for over
27,000
8.
State Revenue/Budgetary Implications:
Budgetary implications could be significant as a negative impact on the ability for PRB to continue providing the recreational services that park visitors expect. Firm figures are not available from the Secretary of State regarding the actual number of Handicap plates in use. If we assume a potential of 60,000 handicap plates in service and estimate that 25 percent of those individuals purchase a discounted permit that would result in a loss of $270,000 from the operational budget of the PRB. That figure is enough to fund a small park operation for an entire year.
9.
Implications to Local Units of Government:
None.
10.
Administrative Rules Implications:
None.
11.
Other Pertinent Information:
None.
12.
User Groups/Customers that Support this Legislation:
Unknown, but, most likely this bill would be supported by those motorists who have handicap license plates.
K. L. COOL
DIRECTOR
MICHIGAN DEPARTMENT OF NATURAL RESOURCES
PRB/BSS
