Legislative Analysis
Phone: (517) 373-8080
INCLUDE RECREATION PASSPORT FEE IN VEHICLE
http://www.house.mi.gov/hfa
REGISTRATION AND RENEWAL PAYMENTS
Analysis available at
House Bill 5428 (H-1) as passed by the House http://www.legislature.mi.gov
Sponsor: Rep. Julie Brixie
House Bill 5873 (H-2) as passed by the House
Sponsor: Rep. Denise Mentzer
Committee: Natural Resources
Complete to 12-19-24
SUMMARY:
House Bill 5428 would amend the Michigan Vehicle Code to include the amount of the annual
recreation passport fee in a vehicle’s annual registration or renewal fee as an option on the
registration and renewal forms. The recreation passport fee is the admission cost for a vehicle
to enter all Michigan state parks and recreation areas as well as all DNR-operated boat access
sites. The bill also would add a separate line item to the registration and renewal form that
would allow individuals to make an optional $15 donation to support state parks and recreation
in addition to the other fees.
Currently, the recreation passport fee is listed as a separate line item on a vehicle registration
or renewal form, and the vehicle owner indicates if they wish to pay the additional recreation
passport fee along with their registration or renewal cost. The bill would combine the
registration or renewal costs and recreation passport fee into a single line item and provide the
vehicle owner with a separate option to decline the recreation passport.
For the 2024 calendar year, the cost of the passport is $14 for vehicles and $7 for motorcycles.1
The code currently states that the state treasurer can adjust the fees annually based on the
change in the consumer price index. The bill would amend this requirement so that any change
to the passport fee would be made by August 1 annually. Donations made via the
registration/renewal forms would be collected by the Secretary of State and deposited as
recreation passport fee revenue.
The secretary of state and DNR would have to agree on the format and language regarding the
recreation passport fee for both online, electronic, and written application formats. Changes to
the form would have to be implemented by January 1, 2026. Payment of the recreation passport
fee authorizes a vehicle’s entry into state parks, recreation areas, and boat launches for the
same duration as the vehicle’s registration or renewal.
MCL 257.805
House Bill 5873 would amend the Natural Resources and Environmental Protection Act
(NREPA) to revise the formula for distribution of recreation passport revenue to be
participation-based rather than revenue-based.
1
https://www.michigan.gov/dnr/about/newsroom/releases/2023/12/21/resident-recreation-passport-fee-to-increase-
slightly-jan-1
House Fiscal Agency Page 1 of 5
 Under current law, up to the first $1.0 million in revenue collected may be appropriated to
cover necessary expenses incurred by the secretary of state in their administration and
implementation of section 805 of the Vehicle Code, which enables collection of the recreation
passport fee through vehicle registration and renewals.
The next $10.7 million collected each fiscal year is distributed in the State Park Improvement
account, with the following $1.03 million deposited into the Waterways account. After these
amounts, which total $12.73 million, are deposited into their respective accounts, the remaining
revenue is distributed into accounts on a percentage basis as follows:
• 50% into the State Park Improvement account to be used for capital improvements at
state parks, including state recreation areas.
• 30% into the Improvement account to be used for operations and maintenance at state
parks and state recreation areas.
• 2.75% into the Improvement account to be used for historical and culture resources at
state parks.
• 0.25% into the Improvement account for the purpose of promoting:
o In concert with other state agencies, the use of state parks, state-operated
boating access sites, state forest campgrounds, and state forest nonmotorized
trails and pathways.
o Using the internet to make reservations at state park campgrounds and for
payment of the recreation passport fee in conjunction with motor vehicle
registration.
• 10% into the Local Public Recreation Facilities Fund to be used for the development
of public recreation facilities for local units of government.
• The final 7% is deposited into the Forest Recreation Account to be used for operating,
maintaining, and making capital improvements to state forest campgrounds and state
forest pathways and nonmotorized trails.
The bill would amend this distribution by establishing two formulas based on the participation
rate in the recreation passport program. Annually by August 1, the Department of State would
have to report to the DNR the participation rate for the prior year. If the participation rate was
less than 55%, funds would be distributed as they currently are, with one change:
• 80% to the State Park Improvement account, to be used for capital improvements,
operations, operations, and maintenance at state parks and state recreation areas (while
this is the same total amount of revenue that would now be dedicated toward this work
as separate allocations, the bill would combine them into a single category).
If participation is 55% or greater in the prior year, then after the static dollar amounts are
allocated, the percentage-based distributions would be as follows:
• 70% (instead of 80%) to the State Park Improvement account for capital improvements,
operations, and maintenance.
• 20% (instead of 10%) to the Local Public Recreation Facilities Fund for the
development of public recreation facilities for local units of government.
The other percentage-based categories would remain unchanged.
Participation rate would mean the percentage of registered motor vehicles, other than
commercial motor vehicles, for which the recreation passport fee was paid for the year
of registration.
House Fiscal Agency HBs 5428 and 5873 as passed by the House Page 2 of 5
 The bill also would allow some recreation passport revenue to be distributed to the Department
of Military and Veterans Affairs based on their actual costs to implement the provisions of
House Bill 6219 relating to free admission to Michigan’s state parks and recreation areas for
active and honorably discharged military. Up to $1.0 million could be distributed in the three
years immediately following the passage of HB 5873, and $500,000 thereafter.
MCL 324.2045
BRIEF DISCUSSION:
Supporters of moving from an opt-in system to an opt-out one for the state parks say that it will
make individuals more likely to consider supporting the parks by purchasing the recreation
passport at the time of their vehicle registration renewal when they see the cost already included
in registration. Since 2020, the number of visits to Michigan’s state parks and recreation areas
has increased from approximately 20 million visits annually to more than 35 million. The
additional visitors have amplified needs for additional revenue to support maintenance and
improvements.
Tying the reallocation of recreation passport revenue to participation rates is done with the
assumption that, when more individuals are opting to purchase the recreation passport, the
additional revenue will be more than enough to support what is needed at state parks and can
also be used to aid local park improvements.
Opponents of changing the recreation passport from opt-in to opt-out argue that people who
wish to purchase the passport know how to do so, and the individuals should not be “tricked”
into purchasing a recreation passport if they do not want one. Additionally, because passports
can be purchased at state parks, individuals who change their minds about purchasing the
passport will have opportunities to do so if they decline to do so at the time of their vehicle’s
registration.
FISCAL IMPACT:
Whether House Bill 5428 will increase revenue for DNR depends in part on whether the
application process change from "opt-in" to "opt-out" results in an increase in the number of
Recreation Passports sold. It is likely that the addition of an optional $15 donation to support
state parks and recreation will increase departmental revenue. The extent of these revenue
increases is unclear at present as the number of applicants taking advantage of these application
options remains to be seen. The bill is unlikely to affect departmental costs as DNR is already
engaged in the collection and expenditure of Recreation Passport fee revenue. The bill is also
unlikely to affect local government costs or revenues. Recreation Passport fee revenue is
expended by DNR to support public recreation facilities at both the state and local levels.
Estimated annual revenue is listed below.
House Fiscal Agency HBs 5428 and 5873 as passed by the House Page 3 of 5
 House Bill 5873 is unlikely to directly affect DNR revenue. However, the bill would alter some
costs covered by Recreation Passport revenue if the participation rate exceeds 55% for the prior
fiscal year. Under this condition, the bill would reduce the collective percentage of revenue
expended for state parks capital improvements, operations, and maintenance from 80% to 70%
and increase the percentage of revenue to the Local Public Recreation Facilities Fund from
10% to 20%. The Recreation Passport participation rate has not exceeded 55%; it has hovered
around 40% in recent fiscal years. The FY 2024-25 DNR budget includes $23.9 million from
Recreation Passport fees, the majority of which ($23.0 million) supports capital outlay repair
and maintenance in state parks. This budget also includes $3.9 million from the Local Public
Recreation Facilities Fund, the majority of which ($3.7 million) supports grants to local
governments for the development of public recreation facilities. Local governments would
have access to additional revenue if the conditions of the bill are met. The bill is unlikely to
affect local government costs.
POSITIONS:
Representatives of the Department of Natural Resources testified in support of the bills.
(12-5-24)
The following entities indicated support for the bills (12-5-24):
• FLOW (For Love of Water)
• Southeast Michigan Council of Governments
• Michigan Environmental Council
• Michigan Association of Counties
• Michigan League of Conservation Voters
• The Nature Conservancy
• Michigan Boating Industries Association
• Michigan Municipal League
• Huron River Watershed Council
• Michigan Trails & Greenways Alliance
• mParks
House Fiscal Agency HBs 5428 and 5873 as passed by the House Page 4 of 5
 The following entities indicated support for HB 5428 (12-5-24):
• Michigan United Conservation Clubs
• Rails & Trails Conservancy
The Michigan Licensed Beverage Association indicated support for HB 5873. (12-5-24)
The Department of State indicated a neutral position on the bills. (12-5-24)
The Mackinac Center for Public Policy indicated opposition to HB 5428. (12-5-24)
Legislative Analyst: Josh Roesner
Fiscal Analyst: Austin Scott
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HBs 5428 and 5873 as passed by the House Page 5 of 5


Statutes affected:
Substitute (H-1): 324.2045
Substitute (H-2): 324.2045
House Introduced Bill: 324.2045
As Passed by the House: 324.2045