Coercive Driver Fees Phase-Out Close To Becoming Reality
Driver responsibility fees 'basically a debtors' prison for low-income citizens in Michigan'
Legislation needed to allow a phase-out of one of the most regressive set of laws enacted in recent times is expected to be passed by the state Legislature within a matter of weeks.
The measure, Senate Bill 633, is the second piece of a two-bill package aimed at eventually eliminating Michigan's "driver responsibility fees.” The bill could be brought up in the House as soon as Aug. 27.
In a blatant move to hike revenues under the guise of public safety, in 2003 the Legislature passed a bill that assessed "driver responsibility fees." These fees often go beyond just assigning stiffer penalties for unsafe driving practices and pile on costs that individuals often don't have the ability to pay. In addition, under certain circumstances, they include stiff fines for violations such as not being able to produce proof of insurance when stopped by law enforcement.
Once the $123.2 million annual revenue stream from the fees was created, state government became addicted to it. In spite of a decade of public outcry over the fees and frequent statements by lawmakers themselves that the fees were bad policy, they remained on the books.
Two lawmakers, neither of whom is seeking re-election this year, are the sponsors of the legislation to phase the fees out. The new law will also, in the meantime, allow some affected drivers to do community service instead of paying the fines.
House Appropriations Committee Chair Joe Haveman, R-Holland, is the sponsor of House Bill 5414, which creates the phase-out, while Senate Bill 633 deals with the community service in lieu of payment angle. Before the phase-out can begin, both bills need to be signed by Gov. Rick Snyder.
“The main bill (House Bill 5414) phases out the fees over a six-year period, which is longer than I wanted, but it was the best we could get,” Rep. Haveman told Capitol Confidential. “That bill has already been signed by the governor, but it is tie-barred to the Senate Bill (633), which has yet to be passed.”
“This is good legislation,” Rep. Haveman continued. “We have ourselves in a situation where there are $600 million in uncollected fees that we’re never going to collect. We need to get out of this and off the peoples’ backs.”
Sen. Bruce Caswell, R-Hillsdale, said the fees are an unjustified burden and barrier to many.
“These fees have created what is basically a debtors’ prison for low-income citizens in Michigan,” Sen. Caswell said. “We have to end the fees and give these people their lives back so they can do basic things like simply being able to drive to work.
“I applaud the governor for being willing to have this taken up and Rep. Joe Haveman for pursuing it,” Sen. Caswell added. “Rep. Haveman did an absolutely outstanding job with this. He came to me, told me what he wanted to do and said, ‘Bruce, I know this is something you’ve been very concerned about’ and I said, ‘I don’t care who gets the credit for it as long as we get it done.’”
According to a 2012 Senate Fiscal Agency analysis, only 56 percent of the fees assessed were collected. That statistic could be taken as evidence of the degree to which the fees have caused financial hardship. All indications are that when Senate Bill 633 is brought up for a vote in the House it will pass easily. It is also rumored that there are plans for a public press conference/bill signing at which the governor would sign the legislation.
Beginning Date |
Fee Rate |
October 1, 2015 | 75% |
October 1, 2016 | 50% |
October 1, 2018 | 25% |
October 1, 2019 | No Fee |
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
Small Tent or Big Tent?
Why political parties are missing the larger picture
An analogy used to describe the extent to which a political party is exclusive or inclusive is whether or not it is a “big tent” or a “small tent.” This analogy is most commonly employed in reference to the Republican Party. In essence, the terms “big tent” and “small tent” are used to describe the width and depth of a party’s political appeal.
When the Republican Party is said to be a “small tent,” the intimation is that the political positions it holds represent too narrow a segment of the voting public. Frequently this accusation is accompanied by a list of issues upon which the party supposedly needs to change its policy position.
How often these suggested changes are the result of analysis is questionable. Sometimes polling is cited to support making the policy changes. The idea of standing up for principle is almost never cited and those recommending the changes virtually always oppose the positions they recommend be changed.
No doubt, the Republican Party too easily slips into presenting itself too narrowly. To varying degrees it does so most of the time — and suffers for doing so at the ballot box. However, despite claims to the contrary, the GOP does not fall into the “small tent” trap when it refuses to adopt positions held by its opponents. It does so again and again when it represents business and management at the expense of freedom and liberty.
Arguably the same observation could be applied to the Democratic Party; when it subordinates freedom and liberty to unionism.
As both major political parties fail to fully embrace freedom and liberty, the power struggle between them devolves to contests of short-term populism, misinformation campaigns and rhetorical prowess. Under these circumstances the open path to the “big tent,” which the advancement of freedom and liberty offers, becomes a nearly abandoned road.
If its quest is to become a “big tent” party, the GOP must stand with freedom and liberty, even when adopting such positions collides with the immediate interests of business and management. To do otherwise means losing all claims of representing anything more than a limited, though powerful, strata of society. And is there any doubt that this narrower vision of the Republican Party is the image it maintains with large portions of the voting public today?
Think of how often Republican candidates and officials sound as though they believed every voter owned a businesses. Time and again, Republicans mistakenly use issues that are primarily attractive to the business community as if the issues had more general appeal.
Of course, creating conditions under which businesses and the economy can thrive is vital. But in and of itself the message falls far short of what it could be and opens the door to all of the traditional disagreements between labor and management.
Couple that better economy and jobs message with a dedication to real reforms that bring about more freedom and liberty and its potential positive impact increases exponentially. This is not a combination that will appeal only to conservatives. If, and only if, freedom and liberty are placed on the first rank — above all other considerations — does the message call to the full spectrum of voters.
Contrary to what many believe, liberals in general do not love government. They simply distrust and fear other entities and conditions in the world and see government as their primary protector against those elements. Conservatives distrust and fear the same entities and conditions but believe giving more power government will likely make matters worse.
Liberty and freedom are concepts that transcend these differing perspectives.
Based on recent polling, neither major political party in this nation can, with a straight face, claim to have a “big tent” appeal. For years polling has shown that voters tend to want smaller government and to see government more as a problem than as a solution. Make no mistake about it; both of these sentiments are joined at the hip with the fear of freedom and liberty diminishing.
Theoretically this should be an advantage for Republicans. But in recent years it has been an advantage Republicans love to speak to but very rarely deliver on.
The more the game of politics comes down to Republicans representing business and the Democrats representing labor, the more the debate becomes pedantic. It’s too often “our” special interests versus “their” special interests. Each side strives to turn out its base and key elections are decided by voters in the middle who see little virtue on either side. Meanwhile, in a political sense, the eternal and potential “big tent” producing issues — freedom and liberty — remain available and up for grabs.
(Editor’s note: Jack Spencer is Capitol Affairs Specialist for Michigan Capitol Confidential and a veteran Lansing-based journalist. His columns do not necessarily represent viewpoints of the Mackinac Center for Public Policy or Michigan Capitol Confidential.)
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
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