House Bill 1087 aims to simplify and streamline processes at the Bureau of Motor Vehicles. It consolidates numerous vehicle registration classes and credentials, standardizes fees, and reduces over 160 registration fees. While some fees increase slightly, overall the bill promotes fairness and transparency while maintaining revenue neutrality.
2. Objectives
1. Simplify Indiana Code Title 9
2. Streamline Registrations and Credentials
3. Reduce Complexity within Fee Structure
4. Promote Fairness and Transparency
5. Maintain Revenue Neutrality
3. Fact Sheet re HB 1087
• No Tax Increases
• Approx. 2.1 million Hoosiers See Fee Decreases
• 163 Registration Fees are Reduced/Eliminated
• BMV’s Fee Chart Reduced to One Page
• Promotes Transparency re Third Party Transactions
• Consolidates Vehicle Weight Classes
• Streamlines Vehicle Type/Weight Class Fees
• Consolidates Credentials / Endorsements
• Simplifies Semitrailers (Permanent, Transferrable)
• Revenue Neutral
• Fees are Consistent, Predictable
• Externally-Funded Groups Not Impacted Negatively
• Updates Language to Conform w/ Modern Practice
• Addresses BKD Assessment Items re Compliance
• Technical Corrections from Previous Drafting Errors
• Simplifies Buses (For-Hire / Not-For-Hire)
• Farm Vehicles = 50% off Registration Fee
• Pro-Rated System (Fairness; Based on Use)
4. Credentials: For-Hire Endorsement
• Currently there are four different types of licenses:
• Operator’s
• Public Passenger Chauffeur’s (e.g., taxi drivers)
• Chauffeur’s (vehicles between 16,000 pounds and 26,000 pounds for hire)
• Commercial Driver’s License (more than 26,000 pounds)
• The bill converts the PPC and Chauffeur’s Licenses into a uniform for-hire
endorsement on an Operator’s License
• No impact on CDL program
5. Credentials: Motorcycle Endorsement
• Currently, motorcyclists pay $12 or $10.50 upon each license renewal.
• The bill changes this fee to a one-time endorsement fee of $19,
resulting in a net savings to Hoosier motorcyclists.
• Current motorcycle endorsement holders will not pay any
endorsement fee on renewals.
6. Simplification: Vehicle Registrations/Fees
Current System
• 191 ways to register a vehicle and pay the corresponding fee (including half-year fees)
• 21 truck, tractor, and bus weight classes
• Different vehicle types within the same weight classes pay different fees
• Farm vehicles pay approximately 52% of the basic registration fee for the appropriate weight
class (original intent was 50%, but various legislative add-ons over time have bumped this
number up)
• Fees are random, arbitrary amounts (e.g., $.25 / .35 / .50 / .75 / .00)
• BMV offers ½-year fee structure; Indiana Dept. of Revenue offers pro-rated fee structure
7. Simplification: Truck and Semi-Tractor Registrations
Current system:
• 21 weight classes
• Different fees for trucks and semi-tractors at same weight class
• One of only 4-5 states with different fees for trucks/semi-tractors
• 51-53% registration discount for farm truck/semi-tractor
Proposed system:
• 8 weight classes
• Fee decreases
• Trucks and semi-tractors pay same fee at same weight class
• Farm truck/semi-tractor registrations receive consistent 50% discount
8. Registration: Semitrailers
• Consolidate semitrailer registration options:
• 1-year (transferrable, $41.75)
• 5-year (transferrable, range of $41.75 to $77.75)
• Permanent (not transferrable, $82.75)
• All registrants convert to permanent registration
• $82 for initial registration
• $8.75 each year
• Proposed permanent registration is transferrable
Permanent Only
Perm.
5 Year
1 Year
9. Simplification: Bus Registrations
Bill consolidates into two types of buses: for-hire and not-for-hire
• Does not impact municipal buses (exempt from registration fees)
• Not-for-hire registration fee decreases to $16.35/year.
• Some for-hire buses see fee increases to match what trucks/semi-tractors of
same weight pay.
• Fee increases affect approximately 499 buses per year.
Currently, there are 33 ways to register a bus:
intercity buses (11 weight classes)
intracity buses
school buses
special purpose buses
church buses
“other” buses
10. Registration: Pro-rating Fees
• Currently, BMV offers a half-year fee for certain commercial registrations.
• The bill proposes pro-rated fees (if eligible).
• All pro-ratable fees are whole numbers, divisible by 12.
• Consumer pays for the months used during a registration period.
• Matches how Department of Revenue treats similar registrations.
11. Registration: Pro-rating Fees
Date of
Purchase
Current System Proposed System
July
Pay full-year registration fee for only eight
months ($1359.75)
Pay eight months of registration fees
($1356 * 8/12 = $904)
September Pay half-year registration fee ($682.75)
Pay six months of registration fees
($1356 * 6/12 = $678)
January
Pay half-year registration fee for only two
months ($682.75)
Pay two months of registration fees
($1356 * 2/12 = $226)
14. Transparency: Contractor Convenience Fees
• Amount of convenience fee subject to the written approval of the BMV Commission.
• Convenience fee charged cannot exceed the following:
• Title Work: 150% of the $15 Title Fee ($22.50)
• Registration Work: 150% of the $21.35 Passenger Motor Vehicle Fee ($32.03)
• BEFORE a convenience fee is charged, the contractor must disclose, in writing:
1. The amount of the convenience fee
2. That this convenience fee is NOT charged at a BMV license branch for the same transaction
3. The address and hours of operation of the closest BMV license branch
4. The distance to the closest BMV license branch
• Notice must be provided in a single, discrete document that includes no additional terms
or conditions. Customer must agree to the charge in writing or electronically.
15. Maintaining Neutrality: Delinquent Penalties
• Make up for lost revenue from fee decreases
• Delinquent:
• registration: $5 to $15
• license: $5 to $6
• title: $21.50 to $30
• watercraft title: $20 to $30
16. Highway Funds
• Motor Vehicle
Highway
Account
• Highway,
Road and
Street
• Crossroads
2000
BMV Related
Funds
• Commission
Fund
• Motor Vehicle
Technology
Fund
Public Safety
Funds
• IPSC
• State Police
Building
Account
Other
• Spinal Cord &
Brain Injury
Fund
• Various
Charities and
Organizations
Fees Collected by BMV
Maintaining Neutrality: Distributions