VEHICLE REG.; DRIVING LICENSE; MODIFY                                             S.B. 876 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

Senate Bill 876 (Substitute S-1 as reported)

Sponsor:  Senator Wayne A. Schmidt

Committee:  Transportation and Infrastructure

CONTENT

The bill would amend the Michigan Vehicle Code to do the following:

-- Specify that a registration issued to a motor vehicle, recreational vehicle, trailer, semitrailer, or pole trailer, when driven or moved on a street or highway, that expired between February 1, 2020, and May 31, 2020, would be valid until June 30, 2020.

-- Specify that a registration issued to any vehicle described above that was used for commercial purposes and expired between March 1, 2020, and June 29, 2020, would be valid until June 30, 2020.

-- Specify that a commercial vehicle, trailer, or semitrailer registration issued a registration under an international registration plan that expired between March 1, 2020, and June 29, 2020, would be valid until June 30, 2020.

-- Provide that a driver license that expired between February 1, 2020, and May 31, 2020, would be valid until June 30, 2020.

-- Specify that certain provisions of the bill would not affect the Secretary of State's authority to revoke or suspend a driver license or a group designation or endorsement under the Code.

-- Prohibit the SOS from assessing late fees on registered vehicles whose registrations expired between February 1, 2020, and May 31, 2020, and whose registrations were renewed before June 30, 2020.

MCL 257.216 et al.                                                   Legislative Analyst:  Tyler VanHuyse

FISCAL IMPACT

The bill would not have a significant fiscal impact on the Department of State, as the fees from renewals of registrations, certificates, endorsements, and operator's and chauffeur's licenses eventually will be collected by the Department, albeit at a later date than normal. 

Regarding late fees, the Department could see a decrease in revenue as the Department of State would not assess a late fee at renewal for a registration, certificate, endorsement, or license or registration that expired between February 1, 2020, and May 31, 2020, so long as renewal occurred by June 30, 2020 (as stated in Executive Order 2020-47).  On average the Department of State collects an estimated $965,000 per month in late fees for these renewals.

Date Completed:  5-13-20                                                   Fiscal Analyst:  Joe Carrasco

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.