The new system begins earlier than now - when teens are 14 years, 9 months old, instead of 15 - but doesn't end until after they are 17.
Teens could qualify for a level-one license allowing them to drive only with a parent or someone over 21 with a parent's approval after completing driver training and a writing test.
Once they turn 16, students then could move up to level two and drive alone after holding the permit for six months and practicing their driving for at least 50 hours with a parent accompanying them.
They also would have to have completed a second driver education segment, passed a newly reinstated road test and gone without a moving violation for the 90 days before.
The level-two license bans the teen from driving between midnight and 5 a.m. unless going to work or accompanied by a parent.
After turning 17, spending six months at level two and going 12 consecutive months without a moving violation or accident, the teen would be eligible for an unrestricted driver's license.
Michigan's current system says 15-year-olds can get a learner's permit, allowing them to drive with a parent after they complete driver's education - which usually means six hours of road practice and 30 hours of class instruction - and take a written test. After turning 16 and having the permit for at least 30 days, teens can get an unrestricted license.
The new law also releases public schools from the requirement they offer driver's education as of April 1998. Instead, those that decide to continue offering the training would be required to match state dollars, but allowed to charge parents for any class costs over that total. If a district discontinues its program, it must give parents "certificates" - worth about $75 - to use toward the cost with a private instructor.