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
โข No Tax Increases
โข Approx. 2.1 million Hoosiers See Fee Decreases
โข 163 Registration Fees are Reduced/Eliminated
โข BMVโs Fee Chart Reduced to One Page
โข Promotes Transparency re Third Party Transactions
โข Consolidates Vehicle Weight Classes
โข Streamlines Vehicle Type/Weight Class Fees
โข Consolidates Credentials / Endorsements
โข Simplifies Semitrailers (Permanent, Transferrable)
โข Revenue Neutral
โข Fees are Consistent, Predictable
โข Externally-Funded Groups Not Impacted Negatively
โข Updates Language to Conform w/ Modern Practice
โข Addresses BKD Assessment Items re Compliance
โข Technical Corrections from Previous Drafting Errors
โข Simplifies Buses (For-Hire / Not-For-Hire)
โข Farm Vehicles = 50% off Registration Fee
โข Pro-Rated System (Fairness; Based on Use)
4. Credentials: For-Hire Endorsement
โข Currently there are four different types of licenses:
โข Operatorโs
โข Public Passenger Chauffeurโs (e.g., taxi drivers)
โข Chauffeurโs (vehicles between 16,000 pounds and 26,000 pounds for hire)
โข Commercial Driverโs License (more than 26,000 pounds)
โข The bill converts the PPC and Chauffeurโs Licenses into a uniform for-hire
endorsement on an Operatorโs License
โข No impact on CDL program
5. Credentials: Motorcycle Endorsement
โข Currently, motorcyclists pay $12 or $10.50 upon each license renewal.
โข The bill changes this fee to a one-time endorsement fee of $19,
resulting in a net savings to Hoosier motorcyclists.
โข Current motorcycle endorsement holders will not pay any
endorsement fee on renewals.
6. Simplification: Vehicle Registrations/Fees
Current System
โข 191 ways to register a vehicle and pay the corresponding fee (including half-year fees)
โข 21 truck, tractor, and bus weight classes
โข Different vehicle types within the same weight classes pay different fees
โข 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)
โข Fees are random, arbitrary amounts (e.g., $.25 / .35 / .50 / .75 / .00)
โข BMV offers ยฝ-year fee structure; Indiana Dept. of Revenue offers pro-rated fee structure
7. Simplification: Truck and Semi-Tractor Registrations
Current system:
โข 21 weight classes
โข Different fees for trucks and semi-tractors at same weight class
โข One of only 4-5 states with different fees for trucks/semi-tractors
โข 51-53% registration discount for farm truck/semi-tractor
Proposed system:
โข 8 weight classes
โข Fee decreases
โข Trucks and semi-tractors pay same fee at same weight class
โข Farm truck/semi-tractor registrations receive consistent 50% discount
8. Registration: Semitrailers
โข Consolidate semitrailer registration options:
โข 1-year (transferrable, $41.75)
โข 5-year (transferrable, range of $41.75 to $77.75)
โข Permanent (not transferrable, $82.75)
โข All registrants convert to permanent registration
โข $82 for initial registration
โข $8.75 each year
โข 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
โข Does not impact municipal buses (exempt from registration fees)
โข Not-for-hire registration fee decreases to $16.35/year.
โข Some for-hire buses see fee increases to match what trucks/semi-tractors of
same weight pay.
โข 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
โotherโ buses
10. Registration: Pro-rating Fees
โข Currently, BMV offers a half-year fee for certain commercial registrations.
โข The bill proposes pro-rated fees (if eligible).
โข All pro-ratable fees are whole numbers, divisible by 12.
โข Consumer pays for the months used during a registration period.
โข 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
โข Amount of convenience fee subject to the written approval of the BMV Commission.
โข Convenience fee charged cannot exceed the following:
โข Title Work: 150% of the $15 Title Fee ($22.50)
โข Registration Work: 150% of the $21.35 Passenger Motor Vehicle Fee ($32.03)
โข 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
โข 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
โข Make up for lost revenue from fee decreases
โข Delinquent:
โข registration: $5 to $15
โข license: $5 to $6
โข title: $21.50 to $30
โข watercraft title: $20 to $30
16. Highway Funds
โข Motor Vehicle
Highway
Account
โข Highway,
Road and
Street
โข Crossroads
2000
BMV Related
Funds
โข Commission
Fund
โข Motor Vehicle
Technology
Fund
Public Safety
Funds
โข IPSC
โข State Police
Building
Account
Other
โข Spinal Cord &
Brain Injury
Fund
โข Various
Charities and
Organizations
Fees Collected by BMV
Maintaining Neutrality: Distributions