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BILL ANALYSIS

BILL NUMBER: HB 5793 AS INTRODUCED

TOPIC: Free entry into Michigan State Parks for Veterans

SPONSOR: Representative Drolet

CO-SPONSORS: Representatives Robertson, Brandenburg, Garfield, Nofs, Casperson, Woronchak, Richardville, LaJoy, Stahl, and Acciavatti

COMMITTEE: Veterans Affairs and Homeland Security

Analysis Done: April 29, 2004

POSITION

The Department strongly opposes this legislation.

PROBLEM/BACKGROUND

N/A

DESCRIPTION OF BILL

This bill, as introduced, would provide for free entry into any Michigan State Park for “veterans” defined as:

(i) A person who served on active duty in the armed forces for a period of more than 180 days and separated from the armed forces in a manner other than a dishonorable discharge.

(ii) A person discharged or released from active duty because of a service related disability.

(iii) A member of a reserve branch of the armed forces at the time he or she was ordered to active duty pursuant to section 672(a), (d), or (g), or section 673 or 673b of title 10 of the United States Code, 10 U.S.C. 672, 673, and 673b, who served on active duty during a period of war, or in a campaign or expedition for which a campaign badge is authorized, and was released from active duty in a manner other than a dishonorable discharge.

SUMMARY OF ARGUMENTS

Pro

This bill, if passed, would provide a financial benefit for an unknown number of veterans. This bill recognizes the efforts that our military personnel have made to protect and defend our country.

Con

There are some significant concerns with this bill. First, the bill does not reflect recent increases to the Motor Vehicle Permit (MVP) fees, included in PA 170 of 2003, that are essential to meeting our Fiscal Year 2004-05 budget obligations. This legislation also could open the door to requests from other groups to receive the same treatment, and the amount of lost revenue could be significant. Secondly, each of these special rates and terms of sale needs to be administered by Parks and Recreation, which will increase costs and decrease efficiency. This decrease in efficiency will likely mean longer lines and longer waits for visitors at park entrances. SB 537 has already resulted in the need for significant verification requirements for non-resident permits and “food stamp” discounted permits in addition to the existing requirements for sales of the “senior citizen” permit. Park visitors, waiting in line to enter the park, will most likely experience additional delays if this legislation is enacted.

The bill will significantly reduce operating revenue (by an estimated $1.3 million) for the Parks and Recreation Bureau (PRB) at a time when General Fund dollars are no longer available to support PRB programs. The logistics of implementing this program will add complications to PRB entrance procedures by slowing visitor entry into the parks due to the verification requirements (currently unknown) necessary to implement the intent of this bill. The bill does not clearly define the conditions under which free access would be granted. Does the veteran have to own the vehicle entering the park in order to qualify as is specified in other “discount” programs? Does the veteran merely need to be a passenger in a vehicle entering the park? If so, the $1.3 million loss estimate may be an underestimation of the potential revenue loss. An administrative system to track “free” permits would have to be established as vehicles without MVP’s in the park typically receive violation notices.

FISCAL/ECONOMIC IMPACT

(a) Department

Budgetary:

Budgetary implications would be significant. Revenue is negatively impacted by this bill which would further compromise PRB’s ability to continue to provide recreational services expected by park visitors. The year 2000 census reveals a Michigan veteran population of 913,573 representing 12 percent of the state’s population. Ohio, Indiana and Wisconsin report an even greater percentage of veterans within those states who would be eligible for free entry. SB 537 established a higher out-of-state fee for MVP’s in an effort to partially replace lost General Fund dollars. Those non-resident permits will now become free for out-of-state veterans, further reducing PRB’s ability to generate operational funding.

Revenue:

The PRB generates approximately $11 million from the sale of MVP’s in a year. If we assume that veterans visit parks at an identical rate as their representation of the general population, then the loss of sales could result in a potential annual revenue loss to the Bureau of over

$1,320,000. In addition, if entry becomes free for veterans, it is possible that a greater number of veterans will visit the parks, adding demands to utilities and other services resulting in greater operational costs with no resultant compensation for those increased costs.

Comments:

At a time when PRB is expected to operate and maintain State Parks from revenue generated through user fees, this kind of legislation severely impairs the ability to meet that goal and would negatively impact services to other park users.

(b) State

Budgetary:

See Department Impacts.

Revenue:

See Department Impacts.

Comments:

None.

(c) Local Government

Comments:

None.

OTHER STATE DEPARTMENTS

No impact.

ANY OTHER PERTINENT INFORMATION

None.

ADMINISTRATIVE RULES IMPACT

None.

_______________________________

Rebecca A. Humphries

Director

_______________________________

Date

PRB/BSS