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House Bill 1087: BMV Omnibus Bill
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 Year
1 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 buses
school buses
special purpose buses
church 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)
BMV Fee Chart
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.
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
House Bill 1087: BMV Omnibus Bill

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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)
  • 12.
  • 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