VEHICLE REGISTRATION: LATE FEES S.B. 425: COMMITTEE SUMMARY
Senate Bill 425 (as introduced 4-24-07)
Sponsor: Senator Ron Jelinek
Committee: Transportation
Date Completed: 6-11-07
CONTENT
The bill would amend the Michigan Vehicle Code to exempt a vehicle insured only for comprehensive damage from a late fee for renewing a registration after it expired.
Under the Code, the Secretary of State must collect a $10 late fee for each registration renewed after the expiration date of the registration plate.
MCL 257.801 Legislative Analyst: Curtis Walker
FISCAL IMPACT
State: In FY 2005-06, the State collected $11.0 million in late fees for 1.1 million late registrations. If all of these late registrations were to convert their insurance coverage to comprehensive damage coverage only, the State would lose $11.0 million in revenue. How many of the estimated 1.1 million late registrations would convert their insurance coverage to comprehensive damage coverage only is indeterminate.
Local: The bill would have no fiscal impact on local government. All revenue collected from late fees for expired registrations is deposited in the State's General Fund/General Purpose fund.
Fiscal Analyst: Joe Carrasco
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. sb425/0708