Bill
SB 706
SB 706 removes Driver Responsibility Fee references, lets SOS reinstate licenses suspended only for historic DRFs without the $125 fee, and repeals DRF provisions.
Status / effective date
- Enacted as Public Act 113 of 2024 (originated as SB 706). The bill was passed by the Legislature and signed by the Governor; it was written to take effect 90 days after enactment (per bill language and committee reports).
Purpose and intent
- Clean up and remove lingering statutory references to the now‑discontinued Driver Responsibility Fee (DRF) program, reduce barriers to license reinstatement for people whose licenses remain suspended solely because of historic DRF assessments, and clarify what is included in the Secretary of State’s centralized driving record.
Key provisions
- Removes requirement that the Secretary of State (SOS) include in an individual’s centralized driving record whether the person failed to pay a Driver Responsibility Fee (amends MCL 257.204a). The bill also removes related references to a now‑repealed offense (former section 319e).
- Allows the SOS to reinstate an operator’s or chauffeur’s license that was suspended solely for nonpayment of DRFs without requiring the individual to pay the usual $125 license reinstatement fee (amends MCL 257.320e).
- Deletes or removes DRF‑related provisions elsewhere in the Michigan Vehicle Code:
- Deletes most of section 732a (the statutory section that established DRFs), except for provisions retained to administer the Fire Protection Fund and related carve‑outs.
- Repeals sections 732b and 732d (these provisions related to workforce training and administration tied to DRFs).
- Removes DRF assessment references from other licensing provisions where applicable (amends MCL 257.304, 257.312f, 257.904, and related cross‑references).
- Tie‑bar: A companion bill (SB 799) removes DRF assessment from the “licensing sanction” list for enhanced driver licenses; SB 799 is tied to SB 706.
Who is affected
- Individuals who previously had DRF assessments and whose licenses remain suspended or restricted because of nonpayment — they may be eligible to have licenses reinstated without paying the $125 reinstatement fee.
- Secretary of State (MDOS) — must update central record practices and reinstatement procedures.
- State funds/agencies that currently receive portions of the $125 reinstatement fee — potential minimal revenue reduction. (See fiscal discussion below.)
- Programs and entities associated with sections repealed (e.g., the workforce training mechanism in 732b) — those statutory programs are repealed.
Background and context
- Driver Responsibility Fees were imposed in 2003 but were discontinued and phased out by Public Acts in 2018 (Public Acts 43–50 of 2018). Some individuals continued to have suspensions or administrative artifacts tied to past DRFs. Testimony before committees estimated thousands of people still affected by DRF‑only suspensions.
Fiscal impact
- The bill likely reduces some reinstatement‑fee revenue for the Department of State and other recipients of the $125 fee. House and Senate fiscal analyses concluded that losses would be minimal: reinstatement fees collected in FY 2022–23 totaled about $3.2 million (across many causes), and the portion attributable to DRF‑only cases is uncertain but small. The Department indicated current practice often already waives the fee in DRF‑only situations, so net fiscal impact is likely minor.
Procedural notes
- The bill was considered and reported favorably by relevant committees, was accompanied by SB 799 as a tied measure, and advanced through the Legislature during 2024. It was enacted as Public Act 113 (and related implementing actions completed per legislative calendar).
Bottom line
- SB 706 removes DRF references from the Michigan Vehicle Code, enables SOS to reinstate licenses suspended only for historic DRFs without charging the $125 reinstatement fee, repeals statutory DRF administration sections, and makes related recordkeeping changes — a statutory cleanup and targeted relief measure addressing legacy effects of a discontinued fee program.
Compiled from official sources — confirm details with the bill’s official record.
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