hb 1087 roads and transportation committee presentation - january 6, 2016
TRANSCRIPT
Objectives
1. Simplify Indiana Code Title 9
2. Streamline Registrations and Credentials
3. Reduce Complexity within Fee Structure
4. Promote Fairness and Transparency
5. Maintain Revenue Neutrality
Fact Sheet re HB 1087
• No Tax Increases
• Approx. 2.1 million Hoosiers See Fee Decreases
• 163 Registration Fees are Reduced/Eliminated
• BMV’s Fee Chart Reduced to One Page
• Promotes Transparency re Third Party Transactions
• Consolidates Vehicle Weight Classes
• Streamlines Vehicle Type/Weight Class Fees
• Consolidates Credentials / Endorsements
• Simplifies Semitrailers (Permanent, Transferrable)
• Revenue Neutral
• Fees are Consistent, Predictable
• Externally-Funded Groups Not Impacted Negatively
• Updates Language to Conform w/ Modern Practice
• Addresses BKD Assessment Items re Compliance
• Technical Corrections from Previous Drafting Errors
• Simplifies Buses (For-Hire / Not-For-Hire)
• Farm Vehicles = 50% off Registration Fee
• Pro-Rated System (Fairness; Based on Use)
Credentials: For-Hire Endorsement
• Currently there are four different types of licenses: • Operator’s• Public Passenger Chauffeur’s (e.g., taxi drivers)• Chauffeur’s (vehicles between 16,000 pounds and 26,000 pounds for hire) • Commercial Driver’s License (more than 26,000 pounds)
• The bill converts the PPC and Chauffeur’s Licenses into a uniform for-hire endorsement on an Operator’s License
• No impact on CDL program
Credentials: Motorcycle Endorsement
• Currently, motorcyclists pay $12 or $10.50 upon each license renewal.
• The bill changes this fee to a one-time endorsement fee of $19, resulting in a net savings to Hoosier motorcyclists.
• Current motorcycle endorsement holders will not pay any endorsement fee on renewals.
Simplification: Vehicle Registrations/Fees
Current System
• 191 ways to register a vehicle and pay the corresponding fee (including half-year fees)
• 21 truck, tractor, and bus weight classes
• Different vehicle types within the same weight classes pay different fees
• Farm vehicles pay approximately 52% of the basic registration fee for the appropriate weight class (original intent was 50%, but various legislative add-ons over time have bumped this number up)
• Fees are random, arbitrary amounts (e.g., $.25 / .35 / .50 / .75 / .00)
• BMV offers ½-year fee structure; Indiana Dept. of Revenue offers pro-rated fee structure
Simplification: Truck and Semi-Tractor Registrations
Current system:• 21 weight classes• Different fees for trucks and semi-tractors at same weight class• One of only 4-5 states with different fees for trucks/semi-tractors• 51-53% registration discount for farm truck/semi-tractor
Proposed system: • 8 weight classes• Fee decreases• Trucks and semi-tractors pay same fee at same weight class• Farm truck/semi-tractor registrations receive consistent 50% discount
Registration: Semitrailers
• Consolidate semitrailer registration options:
• 1-year (transferrable, $41.75)
• 5-year (transferrable, range of $41.75 to $77.75)
• Permanent (not transferrable, $82.75)
• All registrants convert to permanent registration
• $82 for initial registration
• $8.75 each year
• Proposed permanent registration is transferrable
Permanent Only
Perm.
5 Year1 Year
Simplification: Bus Registrations
Bill consolidates into two types of buses: for-hire and not-for-hire• Does not impact municipal buses (exempt from registration fees)
• Not-for-hire registration fee decreases to $16.35/year.
• Some for-hire buses see fee increases to match what trucks/semi-tractors of same weight pay.
• Fee increases affect approximately 499 buses per year.
Currently, there are 33 ways to register a bus:intercity buses (11 weight classes)intracity busesschool buses
special purpose buseschurch buses“other” buses
Registration: Pro-rating Fees
• Currently, BMV offers a half-year fee for certain commercial registrations.
• The bill proposes pro-rated fees (if eligible).
• All pro-ratable fees are whole numbers, divisible by 12.
• Consumer pays for the months used during a registration period.
• Matches how Department of Revenue treats similar registrations.
Registration: Pro-rating Fees
Date of Purchase Current System Proposed System
July Pay full-year registration fee for only eight months ($1359.75)
Pay eight months of registration fees ($1356 * 8/12 = $904)
September Pay half-year registration fee ($682.75) Pay six months of registration fees($1356 * 6/12 = $678)
January Pay half-year registration fee for only two months ($682.75)
Pay two months of registration fees($1356 * 2/12 = $226)
Transparency: Contractor Convenience Fees
• Amount of convenience fee subject to the written approval of the BMV Commission.
• Convenience fee charged cannot exceed the following:• Title Work: 150% of the $15 Title Fee ($22.50)• Registration Work: 150% of the $21.35 Passenger Motor Vehicle Fee ($32.03)
• BEFORE a convenience fee is charged, the contractor must disclose, in writing:1. The amount of the convenience fee2. That this convenience fee is NOT charged at a BMV license branch for the same transaction3. The address and hours of operation of the closest BMV license branch4. The distance to the closest BMV license branch
• Notice must be provided in a single, discrete document that includes no additional terms or conditions. Customer must agree to the charge in writing or electronically.
Maintaining Neutrality: Delinquent Penalties
• Make up for lost revenue from fee decreases
• Delinquent:
• registration: $5 to $15
• license: $5 to $6
• title: $21.50 to $30
• watercraft title: $20 to $30
Highway Funds
•Motor Vehicle Highway Account•Highway, Road and Street•Crossroads 2000
BMV Related Funds
•Commission Fund•Motor Vehicle Technology Fund
Public Safety Funds
•IPSC•State Police Building Account
Other•Spinal Cord & Brain Injury Fund•Various Charities and Organizations
Fees Collected by BMV
Maintaining Neutrality: Distributions
Fund 12-14 CY Average Change with Proposal % Change
Motor Vehicle Highway $ 119,665,868 $ 698,500 0.58%
Highway, Road and Street (State and Local) $ 17,213,699 $ 174,500 1.00%
Crossroads 2000 $ 35,982,189 $ 19,000 0.05%
IPSC (Anti-terrorism) $ 13,256,712 $ 43,000 0.32%
Spinal Cord $ 1,666,119 $ 14,100 0.84%
Police Building $ 1,701,172 $ 2,400 0.14%
BMV Tech $ 5,383,023 $ 36,000 0.66%
Commission $ 85,793,936 ($ 1,030,000) (1.22%)
DNR $ 1,573,817 $ 2,000 0.13%
Maintaining Neutrality: Fiscal Impact
Fee Changes: Impact of HB 1087
• Registration Fees• 163 registration fees are reduced or eliminated• 8 registration fees increase
• Standardizes commercial vehicles (same weight = same fee)• Affects only 643 customer transactions per year, out of 12.6 million (< 0.005%)
• Duplicate, Amended, or Replacement Items• To streamline fees for similar transactions:
• 6 fees decrease• 6 fees increase
Objectives
1. Simplify Indiana Code Title 9
2. Streamline Registrations and Credentials
3. Reduce Complexity within Fee Structure
4. Promote Fairness and Transparency
5. Maintain Revenue Neutrality