HB 1087 Roads and Transportation Committee Presentation - January 6, 2016
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House Bill 1087 aims to simplify and streamline processes at the Bureau of Motor Vehicles. It consolidates numerous vehicle registration classes and credentials, standardizes fees, and reduces over 160 registration fees. While some fees increase slightly, overall the bill promotes fairness and transparency while maintaining revenue neutrality.
HB 1087 Roads and Transportation Committee Presentation - January 6, 2016
- 1. House Bill 1087: BMV Omnibus Bill
- 2. 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
- 3. 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)
- 4. 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
- 5. 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.
- 6. 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
- 7. 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
- 8. 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 Year 1 Year
- 9. 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 buses school buses special purpose buses church buses “other” buses
- 10. 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.
- 11. 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)
- 13. BMV Fee Chart
- 14. 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 fee 2. That this convenience fee is NOT charged at a BMV license branch for the same transaction 3. The address and hours of operation of the closest BMV license branch 4. 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.
- 15. 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
- 16. 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
- 17. 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
- 18. 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
- 19. 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
- 20. House Bill 1087: BMV Omnibus Bill