WAIVER OF CLEARANCE FEE

House Bill 6207

Sponsor:  Rep. Hoon-Yung Hopgood

Committee:  Transportation

Complete to 12-1-04

A SUMMARY OF HOUSE BILL 6207 AS INTRODUCED 9-9-04

The bill would amend the Michigan Vehicle Code to allow for judicial waiver of the driver's license clearance fee.  This is a fee that must be paid in order for a license suspension to be lifted when a license has been suspended for the failure to answer a citation or a notice to appear or to pay a fine or cost.

FISCAL IMPACT:

The bill would reduce revenues for the Secretary of State and local units of government, with the amount depending on the frequency with which the clearance fee was waived.  Of each $45 driver's license clearance fee, $15 goes to the court funding unit, $15 to the Secretary of State, and $15 to the Juror Compensation Reimbursement Fund (see table, below).

The driver's license clearance fee rose from $25 to $45, commencing January 1, 2003.  The $20 increase was allocated between court funding units (counties and municipalities) and the newly-created Juror Compensation Reimbursement Fund, which was established to assist court funding units with increased costs of juror compensation following increases in statutory minimum compensation that took effect October 1, 2003.   

Statutory Allocation of Driver's License Clearance Fee
		Former			Current
Secretary of State		$15			$15
Court Funding Unit*		$10			$15
Juror Compensation Fund		$0			$15
Total		$25			$45
*County or municipality, depending on circumstances

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Marilyn Peterson

■ 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.