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Minutes for SB88 - Committee on Transportation
Short Title
Repossessed certificates of title fees; repealing the repossessed certificates of title fee fund.
Minutes Content for Tue, Feb 14, 2017
Chairperson Petersen opened the hearing. Scott Wells, Revisor, gave an overview stating this bill concerns a $3.00 fee for processing certificates of title for repossessed vehicles. Under the provisions of the bill, either the county treasurer or the contractor who is processing the application would retain the $3.00 fee. The statute establishing the Repossessed Certificate of Title Fee Fund would be repealed. He stood for questions.
Senator Skubal asked how much revenue is involved, and Mr. Wells noted the county or contractor who has processed the application would retain the fee and it amounts to $52,000 annually.
Deb Wiley, Manager Vehicles Administrative Support, Division of Vehicles, Kansas Department of Revenue (KDOR), gave proponent testimony (Attachment 1). She noted as Mr. Wells said, there is a $3.00 surcharge for processing titles for a repossessed vehicle. The funds have been used to provide two positions within the Division of Vehicles to process repossession titles. In 2016, the Division of Vehicles changed the business process and no longer processes repossessed title applications, but those applications are processed for auto dealers through a third party. The remainder of applications, for individual customers and lienholders in their communities, are processed by county treasurer offices. This bill provides that the entity processing the title application would retain the $3.00.
In response to questions, Ms. Wiley answered:
- By explaining the procedure for processing repossessed vehicles. It includes proving proof of the lien and proper identification.
- For the customer to again take possession of a repossessed vehicle, the lienholder and the customer must be in agreement.
Written-only proponent testimony was furnished by Don McNeely as President of the Kansas Automobile Dealers Association and as President of Kansas Vehicle Title Services Company (Attachment 2).
There was no opponent or neutral testimony.
The hearing on the bill was closed.
