Chairperson Petersen opened the Hearing on SB404.

Adam Siebers, Staff Revisor gave an explainer of the bill. (Attachment 1) There were no questions.

Thomas G. Franzen testified in support of SB404.  (Attachment 2) He stated that with the implementation of the Motor Vehicle Registration System (MVRS) in 2012, the vast majority of the workload shifted from the state to county treasurers. However this shift in responsibility was not accompanied by a corresponding shift in revenue. SB404 addresses this issue by providing much-needed fee revenue at the local level. The bill also places fee-setting authority at the local point of service delivery. Additionally, SB404 helps reduce reliance on property tax support, providing property tax relief. 

Shilo Heger gave proponent testimony (Attachment 3) by stating that SB404 provides local control by allowing counties to set a county service fee at a level necessary to cover the true cost of motor vehicle operations. 

Christine Smith testified as a proponent of SB404 by stating that the passage of SB404 will provide much needed property tax relief and allows flexibility for each local county treasurer to determine the most proper funding based on their county's needs. (Attachment 4)

Mike Kelly spoke in support of SB404. The collective voice of the Big 5 Counties (Johnson, Wyandotte, Douglas, Sedgwick and Shawnee) urges the passage of SB404 because it improves customer experience and enhances efficiency and lowers reliance on property taxes. (Attachment 5)

Brandi Baily gave proponent testimony. (Attachment 6) She stated that SB404 provides counties with a reasonable, transparent, and locally accountable way to fund Treasurer operations without shifting additional burden onto property taxpayers. SB404 allows counties to shift part of the financial burden away from property taxes and towards user-based fees, where the cost is borne by those utilizing the service. She also stated that facility fees no longer reflect reality. SB404 also allows transaction-based flexibility, ensuring workload, not just physical presence, can be accounted for. SB404 is a practical, responsible solution to a real operational problem facing counties across Kansas. Brandi Baily also distributed copies of state receipts reflecting customer costs for a renewal and new title work in Sedgwick County. (Attachment 7)

Ryan Baty, Sedgwick County Commissioner, 4th District, part of the Big 5 County Caucus, spoke in support of SB404.  He stated that tag offices are in need of reform, they need to provide better, more efficient service and that personalized tags cannot be scaled to meet demand. He also stated that the need to reduce property tax dependence is crucial and that tag offices should be fee funded. (Attachment 8)

Questions were asked by committee members.

Neutral, verbal testimony was provided by Zach Denney, Director of Government Affairs, Kansas Department of Revenue (KDOR). He has concerns that the transferring of plates between leased and owned vehicles or vice versa would be an issue. Overall the personalized plate changes in this bill would create significant challenges for KDOR. He answered questions from committee members. (Attachment 9)

Proponent, written only testimony was submitted by

Jay Hall, Deputy Director and General Counsel, Kansas Association of Counties (Attachment 10)

Amy Davidson, Gove County Treasurer (Attachment 11)

Anthony Newell, Saline County Treasurer (Attachment 12)

James E. Jordan, Barton County Treasurer (Attachment 13)

Michael White, Executive Director, Kansas Contractors Association (Attachment 14)

Jacob Hansen, Riley County Counselor (Attachment 15)

There was no Opponent testimony submitted.

Chairperson Petersen closed the Hearing on SB404 and adjourned the meeting at 9:25 a.m. The next scheduled meeting is February 10, 2026 at 8:30 a.m.