VETS:  WAIVER OF INITIAL LIC. FEES                                                              S.B. 671:

                                                                                               COMMITTEE SUMMARY

 

 

 

 

 

 

 

 

 

 

 

Senate Bill 671 (as introduced 11-7-13)                                                 (enacted version)

Sponsor:  Senator John Moolenaar

Committee:  Veterans, Military Affairs and Homeland Security

 

Date Completed:  11-12-13

 

CONTENT

 

The bill would amend the State License Fee Act to require the Department of Licensing and Regulatory Affairs (LARA) to waive an initial licensing or registration fee for an honorably discharged veteran of the U.S. armed forces.

 

Specifically, LARA would have to waive the fee for an initial license or initial registration that was otherwise required under the Act, or an application processing fee charged for an initial license or initial registration, if the applicant had served in the armed forces and provided LARA with a Form DD214, Form DD215, or any other form that demonstrated to LARA's satisfaction that the applicant was separated from that service with an honorable character of service or under honorable conditions (general) character of service.

 

(Form DD214 is the Department of Defense form for a certificate of release or discharge from active duty.  Form DD215 is the Department of Defense form for making a correction to a Form DD 214.)

 

Under the bill, "armed forces" would mean that term as defined in the Veteran Right to Employment Services Act.  (That Act defines "armed forces" as the Army, Air Force, Navy, Marine Corps, Coast Guard, or other military force designated by Congress as part of the Armed Forces of the United States.)

 

Proposed MCL 338.2204                                            Legislative Analyst:  Patrick Affholter

 

FISCAL IMPACT

 

The bill would have a minor negative fiscal impact on the Department of Licensing and Regulatory Affairs and no fiscal impact on local units of government.  Under the bill, veterans would be exempted from paying initial application or application processing fees for any occupational license fee established under the Act.  Table 1 provides a list of these occupations and approximately how much fee revenue was generated by them in fiscal year (FY) 2011-12.  It should be noted that some of these licenses are on a biennial or triennial renewal basis, which creates asymmetric revenue for these fees from year-to-year. 

 

 

 

 

 

 

Table 1

Fee Revenue Collected Under the

State License Fee Act in FY 2011-2012

Profession

Revenue

Accountancy

$2,371,872

Appraisers, Real Estate

425,085

Architects

218,260

Auctioneer Registration Program

7,440

Barbers

123,391

Builders, Residential

689,875

Collection Agencies

138,675

Community Planners

3,550

Cosmetology

2,982,599

Engineers, Professional

908,893

Foresters

16,500

Funeral Directors (Mortuary Science)

127,050

Hearing Aid Dealers

51,350

Landscape Architects

71,160

Ocularists

560

Personnel Agencies

5,250

Real Estate Brokers and Salespersons

1,344,230

Surveyors, Professional

57,355

TOTAL

$9,543,095

                        Source: Department of Licensing and Regulatory Affairs

 

Since the bill would waive the fees for veterans only for their initial license, it is difficult to determine how much revenue LARA would lose each year.  According to the U.S. Department of Veterans Affairs, there are approximately 680,000 veterans living in Michigan, representing approximately 6.9% of the State's population.  If it is assumed that a veteran will enter a 30-year career after discharge from the military, then it would seem reasonable to assume that 1/30th of the revenue from each veteran's career-long license fee payments would be lost under the bill.  Multiplying the amount of revenue generated annually by 1/30th and then by 6.9% yields a loss of revenue each year of about $22,000.   This figure would increase if the average career length is actually shorter than the assumed 30 years and would decrease if it is longer.  The figure also would increase if the percentage of veterans in the workforce is actually greater than their percentage of the population in general.

 

                                                                                        Fiscal Analyst:  Josh Sefton

 

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.