The Chair opened the hearing on SB404.

Chris Waggoner gave to the committee a briefing on the bill.   (Attachment 1)

Shilo Heger gave proponent testimony before the committee covering a brief history of the fee structure association with vehicle titling and registration in the state of Kansas.  Since the revenues have remained largely flat and with the rising cost of inflation occurring,  the estimated statewide loss for the 2024 calendar year exceeded $11 million dollars. The bill addresses this issue by imposing a statewide fee that would allow counties to set a county service fee to cover the cost of motor vehicle operations within each county. (Attachment 2)

Brandi Baily brought proponent testimony that shows an increasing number of residents who are now completing their vehicle titling and registration fee transactions are done online or through other remote processes.    The current fee structure in the system does not consistently align with the workload process for each transaction.   SB404 would allow for a practical and responsible solution to counties across Kansas by allowing a reduction reliance on property tax subsidies, an alignment of fees with the actual cost of delivery and the maintaining of service levels.(Attachment 3)

Thomas Franzen, brought support testimony to the committee by addressing the current statutory fee structure across counties  that assumes a "one size fits all" approach.   The bill would provide counties with the resources needed to deliver efficient motor vehicle services, improve local accountability and operational flexibility, as well as to help reduce the use of local property taxes to subsidize a state mandated program.(Attachment 4)

Mike Kelly of Johnson County Commission, reported how the county relied on a $2.6 million dollar general fund in 2025 to cover the deficit of operating vehicle title and registration services in Johnson County alone. By allowing counties to charge additional fees , Kansas counties can meet the customer service expectation of residents without increasing a heavier property tax burden.  (Attachment 5)            

Jeff Blubaugh of Sedgwick County presented his testimony virtually as a proponent of the bill, that would allow fee structures that increase vehicle and title registration services would decrease the property taxes paid by Kansas  residents.(Attachment 6)

Zach Denney gave proponent testimony to the bill that would provide improved efficiency for each Kansan and help improve the efficiency of  each county treasurer's office.   (Attachment 7)

Discussion followed with questions from the committee members. 

Written only proponent testimony was given by:                                                                                                                                                                                                                                                        Anthony Newell, Saline County Treasurer    (Attachment 8)                                                                                                                                                                                                                                        Aaron Mays, Kansas Association of Counties (Attachment 9)                                                                                                                                                                                                                                      James E. Jordan, Barton County Treasurer (Attachment 10)                                                                                                                                                                                                                                    Jacob Hansen, Riley County Counselor (Attachment 11)

 The Chair closed the hearing on SB404. 

The meeting was adjourned at 3:10 P.M.