Sets States mileage reimbursement rate at IRS rate for business use of automobile.
Impact
Under existing law, the state's reimbursement rate was fixed at 18 cents per mile, updated biannually in response to gasoline price fluctuations. The proposed legislation eliminates this fixed rate and replaces it with the IRS rate, which adjusts regularly based on economic conditions. This amendment is anticipated to enhance fairness for state employees, ensuring they are reimbursed in accordance with the true costs of operating vehicles for business purposes.
Summary
Senate Bill 262 aims to align the state mileage reimbursement rate for state officers and employees driving their personal vehicles for official state business with the federal Internal Revenue Service (IRS) standard mileage rate. This change intends to provide equitable compensation for state employees who incur costs while using their own vehicles on state business, addressing a longstanding issue of differing reimbursement rates that may not reflect current operational costs.
Contention
While the bill appears to have garnered support within legislative discussions, points of contention may arise around budget implications and the management of state funds. Critics could argue that adjusting the reimbursement rate could strain state budgets, especially during economic downturns when costs across state departments are already scrutinized. However, supporters assert that it is necessary to treat state employees fairly and to encourage efficiency in state operations.
Provides relative to costs for certain emergency services provided by fire departments, fire protection districts, and certain nonprofit corporations (EN INCREASE SG EX See Note)
Insurance: no-fault; assigned claims plan; require unlimited-level benefit reimbursement for bicyclists. Amends sec. 3172 of 1956 PA 218 (MCL 500.3172).