LIMOUSINE REGULATION S.B. 561: FLOOR SUMMARY
[Please see the PDF version of this analysis, if available, to view this image.]






Senate Bill 561 (as reported without amendment)
Sponsor: Senator Jack Brandenburg
Committee: Transportation

CONTENT
The bill would amend the Limousine Transportation Act to do all of the following:

-- Provide that the Michigan Department of Transportation (MDOT) and the Department of State would have exclusive authority to license limousines, limo carriers of passengers, and limo operators.
-- Prohibit local units of government from licensing limousines, limo carriers of passengers, or chauffeurs, or adopting ordinances to do so.
-- Eliminate a provision exempting from regulation a limo carrier of passengers operating only within the boundaries of a local unit that has its own safety inspection and insurance requirements.
-- Delete a provision under which a limo carrier that operates Class B limousines within a city with a population of 750,000 or more, also must comply with that city's vehicle-for-hire ordinance.

(Detroit was the only city that met that population threshold, but the city's population fell below 750,000 according to the 2010 U.S. census. "Class B limousine" means a limousine with a seating capacity of fewer than seven passengers including the driver.)


The bill also would repeal sections allowing a local unit that has an ordinance regulating limousines to perform required annual safety inspections, and requiring a limo carrier of passengers who has the inspections done by a local unit to pay MDOT a fee for each limousine inspected. (The bill would retain the requirement that each limousine be inspected annually.)


MCL 257.1905 et al. Legislative Analyst: Julie Cassidy

FISCAL IMPACT
The bill would have an unknown and likely minimal impact on revenue and expenditure for both the State and local units. Most limousine carriers are already licensed by the State and inspected under State provisions. The bill would eliminate local licensing authority, potentially reducing both license revenue and enforcement expenses for local units while increasing revenue and expenses for the State. The specific impact would depend upon relevant fee schedules and the number of violations.


Date Completed: 10-5-11 Fiscal Analyst: David Zin

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb561/1112