Committee hears bill to unrestrict police salvage-inspection fees for broader law enforcement uses

The committee considered House Bill 5234, sponsored by the chair, to change how revenue from salvage-vehicle inspection fees may be used. Under current law, police agencies that perform salvage inspections may charge up to $100 and must restrict the revenue to purposes related to recovering stolen vehicles or parts. Representative and Chief Matt Bade of the Genesee County Metro Police testified that unrestricting those revenues would allow agencies—many of which are small or mid-sized—to fund training, equipment, and patrol services.

Chief Bade told the committee there are 86 police agencies and 24 counties that provide salvage inspections. He explained the fee structure: inspectors (off-duty certified officers) typically receive about $80 of the $100 inspection fee; agencies retain $20 as a pass-through fee. Chief Bade said his agency has about $200,000 in restricted funds from this program it cannot currently spend for broader purposes and asked the committee to advance House Bill 5234.

Committee members asked whether participation in the inspection program has declined; Chief Bade said he did not have statewide trend data but described fiscal pressures on small agencies and the potential benefits of allowing more flexible use of the revenue.

Representative noted the bill previously passed the House last year but stalled in the Senate; witnesses urged the committee to advance it again. No committee vote was recorded during the hearing.

The hearing included written support or neutral cards from the Michigan Department of State and the Michigan Sheriffs Association.