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Minutes for SB97 - Committee on Transportation
Short Title
Division of vehicles registering fleet vehicles.
Minutes Content for Tue, Feb 19, 2019
The Chairperson called the meeting to order and opened the hearing on SB97,
Revisor Adam Siebers briefed the Committee on the bill; he explained that the bill changes the process for registration of fleet vehicles. Each registered vehicle is issued a registration receipt, and a $1 fee per vehicle is received.
Eric Kremer, Enterprise Leasing Company of Kansas, testified in support of the bill. He reported that, when the Department of Motor Vehicles (DMV) implemented a new license-plate system, unintended consequences were created for rental car companies (Attachment 1). A registered vehicle is provided with a temporary tag and the new license plate is mailed, a delay of 7-10 days. A rental car may be several states away during that lapse of time. Passing SB97 and creating a separate rental-car plate will obviate this problem.
Deann Williams, Deputy Director, DMV, Kansas Department of Revenue, spoke in support of the bill (Attachment 2). She called it a business-friendly solution addressing a situation unique to businesses like rental-care companies. A centralized location will register the vehicle(s) and a license plate issued at the time of registration.
Conferees responded to members' questions:
- The fee structure has changed in recent years. The $4 registration fee for non-fleet vehicles now goes to the Kansas Department of Transportation, and a separate $1 transaction fee is collected by DMV.
- Several other states are using similar systems.
- The bill is revenue-neutral.
- The transaction fee (3.5%) is in lieu of property tax.
- The fee is collected in the county in which the vehicle resides and remains in that county.
