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Minutes for SB119 - Committee on Transportation

Short Title

Increasing the amount of fees retained by the county treasurer, the division of vehicles or a contractor for processing motor vehicle license applications and certificate of titles.

Minutes Content for Tue, Feb 11, 2025

The Chair opened the hearing on SB119.

Assistant Revisor Adam Siebers briefed the Committee on the bill (Attachment 1).  He said the bill increases the amount deposited into a special fund for expenses from both license applications and applications for certificate of titles that are maintained by county treasurers, Division of Vehicles, or contractors for processing such items; the current license fee of $0.75 will be raised to $5.75 and the application for certificate of title will be raised from $2 to $3.50.

Brandi Baily, Sedgwick County Treasurer, testified as a proponent for the bill (Attachment 2).  He provided background for the bill by stating how long the current fees have been static and how inadequate the present fee structure has been to recoup processing costs (e.g., in 2024 the deficit was $655,000); such shortfalls require drawing from property-tax funds.  She reported that the growing deficits will require her to reduce staff in order to meet budget limitations.

A member expressed concern that the current fee reimbursement for counties is drawn from the State Highway Fund; raising license/title fees will further reduce the highway fund.

Shilo Heger, Riley County Treasurer, cited the increased responsibilities of county treasurers in processing licenses and titles and noted options that have been offered by attempting to fund license/title work without a fee increase (Attachment 3).  She said without some solution such as what the bill offers, her office will need to cut staff and reduce services.  Responding to a question, she explained the treasurer's workload increased when the Kansas Department of Revenue shifted the responsibility for title approval to the county treasurers.

James DuBois, Saline County Treasurer, commented that the relevant fees for title/license services have not increased for years--ranging from 17 to 50 years.  He said the financial pressures from inadequate fees required him to close the treasurer's satellite office; his office is searching for funding solutions to remove the pressure on property taxes (Attachment 4).

Jay Hall, Deputy Director and General Counsel, Kansas Association of Counties, spoke in support of the bill.  He stated that the increasing costs of providing license/title services also has a negative impact on customer service.   He especially cited the frustrations of taxpayers who are subjected to long wait times simply to renew a license tag or obtain a vehicle title (Attachment 5). 

Members discussed how to make the system more efficient and referenced the present limited use of IKAN, an online portal for title/license services.

Susan Duffy, Shawnee County Treasurer, recounted her recent position as county treasurer and all the complex issues she is facing as she seeks to provide excellent service to taxpayers.

The Chair noted the following written-only proponent testimony:

Joel Skelley, Director of Policy, Kansas Department of Transportation (KDOT), provided neutral Testimony (Attachment 13).   He expressed concern that the increase in fees authorized by the bill will result in a reduction of $16 million from the State Highway Fund, thus reducing resources for highway projects.  He said is willing to work with stakeholders toward an amenable solution.

Members commented  on the need for options and requested staff to explore optional funding sources.

Michael White, Executive Director, Kansas Contractors Association, testified as neutral (Attachment 14).  He said the bill addresses a need that is more a policy issue, and he expressed concern about the frequent transfers from the State Highway Fund that reduces the moneys available for highway construction projects. 

Deann Williams, Kansas Department of Revenue (KDOR), offered to provide data regarding the funds KDOR retains for various fee transactions.

The Chair closed the hearing on SB119.

The meeting was adjourned at 9:18 a.m.  The next meeting is scheduled for Wednesday, February 12, 2025.