Transportation, Technology & Legislative Affairs - Senate

I will manage to the committee that to Senate bill one twenty by Senator love he is asked a hole that bill we've he's working on it we'll so we'll just hold that one over of. I'm. I don't see your general Barry MC in the room yes or representative Collins so representative Cavenaugh we'd love to have you come forward now if you're if. He wants to speak on this okay. Hi representative Cavenaugh and senator mark Johnson please you're here to present the house bill eleven fifty. Please proceed thank you Mr chair thank you committee house bill eleven fifty it is a bill that will just extend the time that our cans and have to license or vehicle from thirty days to sixty. The current problem that we're experiencing and this is from just practical experience running dealerships is that as a person go buys a vehicle from us. We sometimes we'll have a pay off from a leading source we don't get that title in for forty five days. So excuse me so we're already past due the thirty days so it causes a problem so if we extended the two sixty this will help alleviate some of the problem that we're experiencing where our Kansans Barnett fault but they're getting charge penalties and fines for something beyond their control the other thing is it will also help the lowest. Income our Kansans to be have additional thirty days to be a pay that tax we're not getting rid of the tax all we're doing is deferred it for thirty days so you're going to we're going to collect the same amount of tax we're just going collected thirty days later. Okay Senate Johnson give anything that. Okay of. So we're really just we're just going from thirty to sixty yes the only change that we would like yes Sir okay. Yes ma'am a Mister gearing from the FNA is signed up to speak on the bill so it off you would. Come join us in. Thank you. I'm sorry. Mr hearing you're recognized please enter identify yourself correct. Good morning Mr chairman of the committee Paul hearing D. SA. And in center Chesterfield your point we're not here to talk anyone for or against the bill we've nearly signed up to speak as to the fiscal impact of house bill eleven fifty and so as person cannot Cavenaugh noted that there is a delay in time from thirty to sixty days for a individual to pay their sales tax and also register their vehicle so what does result in the fiscal impact that DFA issued for this bill is what's known as a one time revenue shift so essentially what what will occur is that those individuals that would ordinarily would have registered and paid their sales tax in June of two thousand twenty four they'll have the ability to delay that additional thirty days to a July two thousand twenty four so there is a a one time. Shift in those revenues up to forty two point six million as noted in the fiscal impact it's not a definite figure there still are going to be individuals that will continue to register within that thirty daytime frame but there will be a shift from one fiscal year to the next I'll be happy to answer any questions about the fiscal impact statement. Of the committee Let me ask questions quick Mr the bill does not have an emergency clause so if it doesn't take effect until. The new fiscal year it would still have that revenue shipped. Yes it would Mr chairman and the issue for that is that of course once the bill becomes effective if it were to be enacted by the General Assembly and signed by the governor and that there were. Whether that's in July or August or September whenever ninety days after signing die the process will go into effect on the effective date so that that deadline will move but of course they're going to be individuals that ordinarily under existing law would have a deadline to register and pay their sales tax in June of two thousand twenty four those individuals that do come in I understand that that's wrong so to speak that reads it pushes it out one more month maximum the registration fees and the sales taxes are all going to be collected but it's just so it's a matter of timing okay all right thank you you have questions Senator Chesterfield. I'm not the money subsequently collected. That's absolutely correct the moneys you're talking about just that **** yes you lose it but this time I won't the person comes in and pays it you make up that money anyway don't you you will be collected okay so that's right that's why I think the forty two is rather misleading in that it appears to be a total loss and it is not is a shift from one month to another month and that's exactly correct exactly what how we stated in the fiscal okay so I have one time revenue shift from one fiscal year to the next but when you look at the forty two million is you're going up and then you realize you can get the forty two million back one way or the other it's just a matter of one fiscal year one time cash flow tracts one time cash or change exactly. We don't have a for or against position we just wanna make sure the committee was aware of the fiscal impact thank you Mr your senate Russia question. Mr. Of not less certain of fiscal impact but it is to In the discussion about the delay taking sometimes forty five days and in the opera get about buying a vehicle for the business or something and. Senator later that time shows a. Is and I and I realize we've seen the postal service not the. As quick as the. Is there any exception that you see coming from D. F. and nine and that is going to go back to a more prompt. The delivery of a title papers whatever being discussed so I and I'm not against giving people X. thirty days anyway but. Well are you all in the thanks making get much better I can certainly speak to. as initial matter DFA we don't need an individual's title to the registration. Copy of the bill of sale proof of assessment and then as the title gets works its way through the former lien holder or ninety at the prior holder and that's it that's a process that can take place after the person is has registered their vehicle but certainly a Senator doing the pandemic we certainly had a period of time where are the title processing it DFA that's when we actually have the title in hand there was a period of time that we had you know a much longer period that people are waiting for title titles we have certainly gotten much better since we're we were at from two thousand twenty when there was as large rush to purchase vehicles because all of the manufacturers and dealers a lot of them were offering favorable financing more attractive price. You have a a backlog of titles that we have gotten much better at the time to turn those around and I'll be happy to get with motor vehicle to see exactly where we're at on average for trying to work on it but I do if the retail I'm better money and I'll get to service use quick as I can but it says like your better getting the money and this will give people more time and it still is taking a delay sometimes for dower stand back if yes Sir thank you I'm I'm good with the bill and if I may just make a comment when they're able to license without the title what happens is that the dealer we write a letter and say that they have the right to go ahead license that we do in that letter promise to present that title when we get it from the lien holder what happens then it gets into the FNA he goes to a department call suspense. Suspense has issues getting those titles in the paper work lined up and I can't tell you how many people come to mate trying to renew their tags but they can't because they're title is in suspense in the end what is happened we find the suspense has lost the title that we send in. And we've got all as far as as a dealership is tax to send it so we know we got proof somebody did it but but still lost the title so the and we have to start the process of trying to go back and get a duplicate title if it's in Arkansas title that's great if it's another state title it's a nightmare okay and. Is the fact that we're debating changes to sixty days as I don't have affect on on the insurance being bound no I wanna make sure that we're we're not giving a loophole there so no because the law technically is now when you drive off the lot you're supposed to have liability insurance so that's not going to call in the the paper tags it is done with the binder for insurance in effect yes then they told me that will actually extend for sixty days to to match the registration period and I don't know the just for clarity also prior to the temporary tags we used to transfer tags when you bought a car whatever car you were driving the trade any and we transfer it in so there was really no way to know if anybody had ever license or car because they were driving around a fictitious tags all the time. Thank you. Of. Was there any other questions for Mr Gerry. Thank you Mr thank you committee anyone else he won the audience like to speak for against this bill. We don't have anyone signed up. Okay well let's let's let let's level under close real quick Senator Chester we like close your bill representative Cavenaugh closed and just trying to have a a practical bill that helps our Kansans and I appreciate a good vote okay thank. Now you're you're. Senator just feel moved to pass second by the vice chairs and board. Any discussion all in favor say aye opposed. Regulations passed real. Yes ma'am. Okay as I mentioned to Senator love is holding his bill Resented Dalby you're welcome come forward present house bill twelve oh eight. You are recognized. Thank you Mr chair members of the committee house bill twelve oh eight you may remember those if you've been around two sessions ago we passed build skews me when somebody is paroled out they can get a temporary driver's license for the link to their parole which is a good thing we want to be able to go to work get their job do all those kinds of things that we require but here is the problem in this problem came to me when I was in the grocery store one day one of our state troopers stopped me and he said you remember that bill said yes and he said well the bill is good but he said here's the problem with that I just stop somebody out on I. forty nine south Miller county said I just stop somebody and I forty nine they had a temporary driver's permit for ten years because that was the length of their parole and so he said we're also stopping people who have never had a driver's license but now they have this temporary driver's license for the link to their parole all this bill simply does is still allow them to get that license when they get out when they're paroled out so that they can go to work but it requires two things one that they have at least have a driver's license at some point in the past it was suspended because obviously they've been imprisoned and secondly that within a year of being out that they go back and get a driver's license that's all this bill does I'd be happy to answer any questions you questions represented all going. Senator English. So I guess is there a reason why somebody would have a temporary license for ten years while they're at they couldn't go and get a. A license after years on his or something in the law well the only thing that I could think of and I had that question asked before when I read it ran in the House Committee would be possibly if their underlying offense was maybe a DWI of five that would put him in prison that could they couldn't get a driver's license or something like that I can't imagine I couldn't think of any other underlying offense that would keep them from getting a driver's license is less as something like that if they if they were convicted and imprisoned for a DWI five or the W. six they're not gonna get a temporary license anyway get out. Thank you. Any other questions. No further questions is anyone the audience like to speak for against the bill. If not represent all you're welcome to close your bill thank you and close and I would appreciate a good vote thank you. motion set by Senator board do pass second by Senator English discussion all they ever say aye hi. Posed great thank you Bills past congratulations thank you Mr chair thank you members of the committee yes ma'am. Of and any other. Sponsors of the bills there on our list for today so. If no any comments from the Committee if not we're we are adjourned thank you.