SUMMARY
OF HOUSE-PASSED BILL
IN
COMMITTEE
CONTENT
The bill would amend the Michigan Vehicle
Code to do the following:
--
Increase
the fee for an original motorcycle endorsement on an operator's or chauffeur's
license, from $13.50 to $16.
--
Increase
the fee for a renewal of a motorcycle endorsement on an operator's or chauffeur's
license, from $5 to $7.
--
Increase
the motorcycle registration tax from $23 to $25.
--
Create
the "Motorcycle Safety and Education Awareness Fund" within the State
Treasury.
--
Require
$2.50 of each original motorcycle endorsement fee and $2 of each motorcycle
endorsement renewal fee to be placed in the Fund.
--
Require
the Secretary of State (SOS) to spend money from the Fund for the purpose of
creating and maintaining a "Look Twice - Save a Life" program.
--
Increase,
from $3 to $5, the amount from a motorcycle registration tax payment that must
be placed in the Motorcycle Safety Fund for the Motorcycle Safety Education Program.
The bill would take effect 90 days after its
enactment.
Motorcycle Safety & Education Awareness
Fund
The Code requires every application for a
motorcycle endorsement on an operator's or chauffeur's license for operation of
motorcycles to include a fee in addition to any other original or renewal
operator or chauffeur license fee. An original motorcycle endorsement on an
operator's or chauffeur's license requires a fee of $13.50, while a renewal of
a motorcycle endorsement on an operator's or chauffeur's license requires a fee
of $5. Under the bill, an original motorcycle endorsement on an operator's or chauffeur's
license would require a fee of $16, while a renewal would require a fee of $7.
The Code allocates the money collected from
the motorcycle endorsement fees to the General Fund. Out of the fees collected,
the SOS must refund to each county or municipality, acting as an examining
officer or examining bureau, $3 for each applicant examined for a first
endorsement to a three-year or four-year operator's or chauffeur's license,
$2.50 for each original endorsement to a two-year operator's or chauffeur's
license, and $1.50 for every other applicant examined whose application is not
denied, for the purpose of carrying out the provisions of the Code. Ten dollars
of each original motorcycle endorsement and $3 of each motorcycle endorsement renewal
must be placed in the Motorcycle Safety Fund in the State Treasury and must be
used only by the SOS for the Motorcycle Safety Education Program as provided
under Section 811a. (Under that section, the SOS is responsible for the
establishment and administration of motorcycle safety courses and must
promulgate rules regarding teacher qualifications, reimbursement procedures,
the establishment of the course, and other requirements.)
The bill also would require $2.50 of each
original motorcycle endorsement and $2 of each motorcycle endorsement renewal to
be placed in the Motorcycle Safety and Education Awareness Fund.
The Fund would be created within the State
Treasury. The State Treasurer could receive money or other assets from any
source for deposit into the Fund, and would have to direct the investment of
the Fund. The State Treasurer would have to credit to the Fund interest and
earnings from Fund investments. Money in the Fund at the close of the fiscal
year would have to remain in the Fund and could not lapse to the General Fund.
The State Treasurer would be the administrator of the Fund for auditing
purposes. The SOS would have to spend money from the Fund for the purpose of
creating and maintaining a "Look Twice - Save a Life" program that
promotes motorcycle awareness, safety, and education.
Registration Tax Increases
Under the Code, the SOS must collect a
certain amount of taxes at the time of registering a vehicle. For each
motorcycle, a person must pay $23. The bill would increase this amount to $25.
The Code requires $3 of each motorcycle fee to
be placed in the Motorcycle Safety Fund and used only for funding the Motorcycle
Safety Education Program as provided for under Sections 312b and 811a.
Beginning on the bill's effective date, $5 of
each motorcycle registration fee would have to be placed in the Motorcycle Safety
Fund for the same purpose.
(Section 312b requires a person who is 18
years or older to pass a motorcycle safety course approved by the Department of
State under Section 811a before he or she may be issued an original motorcycle
endorsement on an operator's or chauffeur's license. The person must pass an
examination, which includes a driving test. The SOS is responsible for
establishing and conducting the driving skills test, and may enter into an
agreement with another public or private corporation or agency to conduct the
test.)
FISCAL IMPACT
The bill would increase revenue received by
the Department of State as a result of the increased fees for original or
renewal motorcycle endorsements. The bill would increase original motorcycle
endorsement fees by $2.50 to $16, while renewal endorsement fees would increase
by $2 to $7. According to the Department, the increased endorsement fees would
generate an estimated $250,000 in additional revenue from motorcycle
endorsements. The amount collected in FY 2015-16 totaled an estimated
$720,000. The additional revenue would have to be deposited in the proposed
Motorcycle Safety and Education Awareness Fund, the Department of State would
have to use to create and maintain a "Look Twice - Save a Life"
program to promote motorcycle awareness, safety, and education. The remaining
portion of the fees would continue to be distributed according to statute as in
current law.
Additionally, the bill would increase the
registration tax, or fee, for motorcycles by $2 to $25. Currently, $3 of the current
$23 registration fee is deposited into the Motorcycle Safety Fund to fund the
Motorcycle Safety Education Program. Under the bill, the additional $2 from
the increase in fees also would be deposited into the Motorcycle Safety Fund,
also to be used for the Motorcycle Safety Education Program. In FY 2015-16, approximately
260,000 motorcycle registrations raised an estimated $5.98 million, of which
$780,000 was deposited into the Motorcycle Safety Fund. The $2 increase in the
registration fee would raise an estimated additional $520,000.
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.