MODIFY DRIVER RESPONSIBILITY FEES

House Bill 4101

Sponsor:  Rep. Shanelle Jackson

1^st Committee:  Transportation

2^nd Committee:  Judiciary

Complete to 6-18-09

A SUMMARY OF HOUSE BILL 4101 AS INTRODUCED 1-22-09

Public Act 165 of 2003 amended the Michigan Vehicle Code to establish "driver responsibility fees" for drivers who accumulate a certain number of points on their licenses and for drivers who commit certain specified offenses.  These are in addition to the penalties for committing the offenses.  A number of the fees, ranging from $150 to $1,000 (depending on the underlying violation), are assessed annually for two consecutive years.  House Bill 4101 would amend the Vehicle Code so that these driver responsibility fees would be assessed once, rather than for two consecutive years.

FISCAL IMPACT:

Driver Responsibility Fee revenue is required to be deposited into the State General Fund.  If the amount of collections is high enough, revenue is also deposited into the Fire Protection Fund, which is used for Fire Protection Grants funded within the Department of Energy, Labor, and Economic Growth.  Public Act 165 of 2003 provides that if Driver Responsibility Fee collections exceed $65.0 million, then $3.5 million of the revenue is to be deposited into the Fire Protection Fund.  The act also provides that an additional $5.0 million may be deposited if collections exceed $100.0 million, for a potential total deposit of $8.5 million.

In FY 2008, approximately $114.2 million net revenue was generated through the collection of Driver Responsibility Fees after collection costs.  Of this $114.2 million revenue, $105.7 million was deposited into the State General Fund and $8.5 million funding was dedicated for Fire Protection Grants.

Overall, as of 2008, the collection rate of Driver Responsibility Fees since the program's inception in 2004 is 48.5 per cent.  In 2008, the total of all assessments for Driver Responsibility Fees over the program's five years of existence totaled almost $800.0 million.  Of this amount, just under $400.0 million has been collected. 

The provisions of House Bill 4101 would significantly reduce revenue to the State General Fund by an indeterminate amount by eliminating the second year assessment of Driver Responsibility Fees.  In addition, the bill could potentially reduce or eliminate the $8.5 million revenue for the Fire Protection Grants since the first part of the payment is deposited only when collections exceed $65.0 million in a year.

BACKGROUND INFORMATION:

The following driver responsibility fees are assessed each year for two consecutive years, upon the posting of an abstract that an individual has been found guilty of any of the following:

$1,000

** Manslaughter, negligent homicide, or a felony resulting from the operation of a motor vehicle, off-road vehicle (ORV), or snowmobile.

**A moving violation subject to criminal penalties that results in injury or death to a person working in a construction zone or operating an implement of husbandry on a highway; or causing injury or death to a police officer, fire-fighter, or other emergency response personnel in the immediate area of a stationary authorized emergency vehicle.

** Operating a motor vehicle or ORV under the influence of alcohol or a controlled substance (OUIL); or causing the death or serious impairment of a body function of another person while driving under the influence or while visibly impaired due to the consumption of alcohol or a controlled substance (OWI).

** Failing to stop and disclose identity at the scene of an accident when required by law.

** Fleeing or eluding an officer.

   $500

** Operating while intoxicated (OWI).

** Driving with any bodily alcohol content if under the age of 21.

** Operating under the influence or while intoxicated with a passenger under 16.

** Reckless driving.

** Driving with a suspended or revoked license or registration certificate.

** Driving a motor vehicle or motorcycle without insurance.

$200

** Failing to produce proof of insurance upon request by a police officer or knowingly providing false evidence of insurance.

$150

** Driving without a valid license or possessing more than one valid driver’s license.

Assessment for Points on the license

Under the law, if a licensed or unlicensed driver accumulates seven points on a driving record within a two-year period, for a violation not subject to a $150, $500, or $1,000 fee, the driver is assessed a $100 driver responsibility fee. For each additional point above seven, the driver is assessed an additional $50. The Secretary of State (SOS) must collect the fee once each year that the point total is at least seven.

Payment of Fees

A driver may pay the driver responsibility fee assessments in full or enter into an approved installment agreement for up to 24 months. Failure to make timely payments will result in an indefinite suspension of a driver's license. A reinstatement fee of $125 is required before the license is reinstated.

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Viola Bay Wild

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.