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Transportation, Technology & Legislative Affairs - Senate

April 7, 2025 ·Upon Adjournment of Senate ·OSC ·1:40:54
Video Transcript 1 document

Bills discussed (11)

Bill Title Sponsor Status
HB1606 Act 922 · 3 mentions in agenda, chapter, transcript
Matched: “…CONCERNING THE ARKANSAS SELF-FUNDED CYBER RESPONSE PROGRAM. HB1606 Steimel TO ALLOW A LOCAL GOVERNMENT TO AUTHORIZE THE OPERAT…”
TO ALLOW A LOCAL GOVERNMENT TO AUTHORIZE THE OPERATION OF A UTILITY TASK VEHICLE ON … Steimel Notification that HB1606 is now Act 922
HB1666 Act 656 · 3 mentions in agenda, chapter, transcript
Matched: “…E USE OF AN EXPIRED TEMPORARY PREPRINTED PAPER BUYER'S TAG. HB1666 S. Meeks TO AMEND THE LAW CONCERNING THE ARKANSAS SELF-FUND…”
TO AMEND THE LAW CONCERNING THE ARKANSAS SELF-FUNDED CYBER RESPONSE PROGRAM. S. Meeks Notification that HB1666 is now Act 656
HB1796 Act 711 · 3 mentions in agenda, chapter, transcript
Matched: “…S LAW CONCERNING THE USE OF A DEALER'S EXTRA LICENSE PLATE. HB1796 Beaty Jr. TO REQUIRE THE DISPLAY OF GENDER INFORMATION ON A…”
TO REQUIRE THE DISPLAY OF GENDER INFORMATION ON AN ARKANSAS DRIVER’S LICENSE OR IDENTIFICATION CARD. Beaty Jr. Notification that HB1796 is now Act 711
SB478 Act 738 · 3 mentions in chapter, agenda, transcript
Matched: “SB478 G. Stubblefield TO CREATE THE ARKANSAS DIESEL ENGINE FREEDO…”
TO CREATE THE ARKANSAS DIESEL ENGINE FREEDOM ACT OF 2025; AND TO PROHIBIT STATE ENFORCEMENT … G. Stubblefield Notification that SB478 is now Act 738
SB561 · 3 mentions in agenda, chapter, transcript
Matched: “…ING THE RELEASE OF A VEHICLE THAT HAS BEEN TOWED OR STORED. SB561 M. Johnson TO ALLOW FOR THE ISSUANCE OF AN ADDITIONAL TEMPO…”
TO ALLOW FOR THE ISSUANCE OF AN ADDITIONAL TEMPORARY PREPRINTED PAPER BUYER'S TAG IN CERTAIN … M. Johnson Died in Senate Committee at Sine Die adjournment.
HB1688 Act 710 · 2 mentions in chapter, agenda
Matched: “HB1688 Cavenaugh TO AMEND ARKANSAS LAW CONCERNING THE USE OF A DEA…”
TO AMEND ARKANSAS LAW CONCERNING THE USE OF A DEALER'S EXTRA LICENSE PLATE. Cavenaugh Notification that HB1688 is now Act 710
HB1834 Act 816 · 2 mentions in chapter, agenda
Matched: “HB1834 Holcomb TO AMEND ARKANSAS LAW CONCERNING THE LICENSING AND…”
TO AMEND ARKANSAS LAW CONCERNING THE LICENSING AND REGULATION OF MOTOR VEHICLES. Holcomb Notification that HB1834 is now Act 816
HB1845 Act 926 · 2 mentions in agenda, chapter
Matched: “…ION ON AN ARKANSAS DRIVER’S LICENSE OR IDENTIFICATION CARD. HB1845 Holcomb TO ALLOW THE ELECTRONIC ADMINISTRATION OF DOCUMENTS…”
TO ALLOW THE ELECTRONIC ADMINISTRATION OF DOCUMENTS RELATED TO THE OWNERSHIP OF MOTOR VEHICLES; TO … Holcomb Notification that HB1845 is now Act 926
SB330 · 2 mentions in agenda, chapter
Matched: “…rs and Staff Only'. DEFERRED BILLS Number Sponsor Subtitle SB330 J. Scott TO AMEND THE CONTENTS OF THE WRITTEN DRIVER'S LICE…”
TO AMEND THE CONTENTS OF THE WRITTEN DRIVER'S LICENSE TEST AND THE DRIVER'S INSTRUCTION MANUAL; … J. Scott Died in Senate Committee at Sine Die adjournment.
SB541 · 2 mentions in agenda, chapter
Matched: “…T OF FEDERAL REGULATION OF CERTAIN TYPES OF DIESEL ENGINES. SB541 G. Leding TO AMEND THE LAW CONCERNING THE TOWING OR STORAGE…”
TO AMEND THE LAW CONCERNING THE TOWING OR STORAGE OF A VEHICLE, IMPLEMENT, OR PIECE … G. Leding Died in Senate Committee at Sine Die adjournment.
SB96 · 2 mentions in chapter, agenda
Matched: “SB96 C. Penzo TO AMEND THE LAW CONCERNING DETACHMENT BY A REGION…”
TO AMEND THE LAW CONCERNING DETACHMENT BY A REGIONAL AIRPORT AUTHORITY; AND TO REPEAL REGIONAL … C. Penzo Died in Senate Committee at Sine Die adjournment.

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Speaker 126 25:32
No, OK, yeah, yes, sir. OK, Johnson, Senator Desma and I've been trying to really just understand what
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Senator Jonathan Dismang Unverified 25:41
we're trying to accomplish because I don't know that we're going to help eliminate paper tags, and we even may build a pride more confusion with what we're looking to do. I mean, For instance, and it just, I've been trying to understand the assessed. Like I understand that you would get it assessed. But the odds that taxes are due on that personal property taxes would be only because you happen to hit a small window. And had purchased, I don't even know how you would actually pay. There's not property taxes due. For the first year. So that, that piece of the bill doesn't really accomplish anything unless you were to have the property, the, the, the car for a year, uh, from what I understand it, or it might have to hit a certain window. The one thing that I, so then I was like, well, maybe I just missed it and looking in the bill, it's like, well, if you were requiring like insurance to be present. Whenever you picked up your paper tag, your 2nd round of paper tag, now that would be helpful because when I hear people complain about paper tags because they're unlicensed, they're uninsured vehicles. That people are just driving around with expired or these fake paper tags on, essentially, but there's not a requirement to get this second one to prove that you have insurance. And so I just don't know, I just don't, I don't see what we're. Accomplishing for the people that are concerned about the paper tags being driven around in. You can discuss
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Senator Mark Johnson Unverified 27:07
um, Senator Disma, you make valid point on the insurance, but I believe that's again a separate requirement in the law that you have the insurance, uh, second thing about the uh uh the assessment, yes, you didn't pay tax on that car, but you had to show that you paid the tax on your previous car. Now if you were a new driver, you bought your first car, uh, and we all were there one time. You definitely would not have to have pay that until the next year, but for now that you want to buy, you want to license a tag, you want to say, well, did you pay your personal property tax, whatever that might be in the previous year, and that's what the stamp that Senator Bryant was talking about from the collector in the uh sensor that you're, you're, you're good with the county and it would be on the previous vehicles or vehicles that you have on your personal property tax statement. OK Any other discussion?
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Senator Ricky Hill Unverified 28:11
Saying none, is there anyone here to speak for or against the bill? You do, OK. We already have, that's right, we are. got behind but I was trying to get ahead. We have a motion to pass. By Senator Johnson. Do we have a say? Centra. All those in favor say aye. The pole same time. Center your bill fail did not get 5 votes.
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Speaker 136 28:51
Senator Mark Johnson. Senator Mark Johnson votes yes. Senator Bryant. Senator Bryant votes no. Senator Stone. Uh, Senator Stone votes yes. Senator Day. Senator Dees votes yes. Senator Love Center love votes no. Senator Scott. Senator Scott. Senator dismaying. Senator dismaying votes no.
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Senator Ricky Hill Unverified 29:30
Center your bill failed. So these. 1606. Please. Introduce yourself for the record and
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Senator Tyler Dees Unverified 29:51
you're Good present your bill. Thank you, Mr. Chair. Tyler Dee, state senator, District 35. This is House Bill 1606 that um that Representative Steinmel has worked on and uh um honored to bring. So what this bill does is it's a really kind of a local control bill that allows permissive the um local entities to be able to to allow UTVs, utility task vehicles on their public streets, highways, and so, uh, if you look at the bill, all of the, the requirements. are still there for UTVs. They've got to have the right lights, the seatbelts, all the roadworthy um requirements that any other vehicle would have to have has to be operated by a a licensed driver, driver's license operator, and so this just gives the ability to um for local governments to authorize the operation of these of these vehicles, um, and a governing body of a city may adopt an ordinance, um, designating that a Street or highway as being open to the operation of these vehicles, would that take
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Speaker 148 30:56
any questions. Any questions for the committee.
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Senator Ricky Hill Unverified 31:04
Center Bryant Of We can do that. There are days if you just
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Senator Tyler Dees Unverified 31:15
want to talk about the bill for a couple of minutes while he's, let me send you uh another comment from uh son of Steinel that um may help as you're reading that as well. So Mark Whitmore from AAC and the Sheriff Association helped with the language on this bill. Um. It requires registration and insurance, and it gives law enforcement the ability to pull over these vehicles as well, so I hope all that puts a piece. Um, I believe there was, uh, there's no known opposition that that I'm aware of. Um, and, uh, we're separate body, but I think it was about 80 something votes on the house, so happy to, happy to to. Stall longer if you need longer how the
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Speaker 152 31:55
state police uh fall in on this. I do not know, sir. The alo Alright, I'm
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Speaker 154 32:02
trying to quickly read through this bit, so if
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Senator Fredrick J. Love Unverified 32:06
like say for instance, on this on the um the Little Rock Seaboard, if they say, hey, we don't want, we don't want new TVs on our streets then. I mean, it's this permissive
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Senator Tyler Dees Unverified 32:19
because I'm, I'm understanding, Senator Love is that this is just the ability for a city ordinance, um, to be adopted, so it would have the oversight. The permissive oversight of the local government. OK. All right, thank you.
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Senator Jonathan Dismang Unverified 32:38
reading that question comment. Go ahead Thank Mr. Chairman, the only thing, I mean, I don't have any issue with the bill whatsoever. I did notice that it only relates back to gas engines, uh, which I wish we would expand that. My understanding is maybe we don't know how to define that. Um, so that's the reason rather than trying to complicate something that's not in there, but I do hope that it's some future point we revisit that. I mean, we have lots of makers of UTVs here in the state that make electric powered UTDs that are just as fast, strong, whatever as the gas powered ones, so I think it makes sense that we would include them for our own industry. Fair enough, yeah. A great point. I'm happy to
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Speaker 166 33:17
share that with the bill sponsor. I, I, and
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Senator Jonathan Dismang Unverified 33:22
I have done that too, but yeah, but I don't know how you say it. I don't know what language you put in, but I sure wish it were there. Uh, I wouldn't even mind just striking that. 900 cc provision out. That way we just didn't, it didn't limit anything. But again, where we are in session, I completely understand. Senator Johnson. Thank you,
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Senator Mark Johnson Unverified 33:51
Mr. Chairman. You may not know this, Senator Deans. I know you're kind of new to this, this particular thing. I agree with Senator Dismay that we shouldn't not allow an electric or even a hybrid drive UTV if there is such a thing, but uh uh it I'm never, I'm not quite sure I understand why it came up with 900 ccs because that's, that's, that's pretty powerful engine for uh I mean I've, I've seen cars with smaller engines before. So I just, I didn't, it's, I think it's maybe a little bit too restrictive in that, and I agree that it shouldn't make. You know, there's, I'm sure there's an electric, electric UTV that would work just as well out there, but uh I, I guess it's too late to change that, but I just want to clarify that that is what I'm reading. that's
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Speaker 67 34:45
helpful. Thank you, Senator, thank you. Thank you. I mean, would he
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Senator Jonathan Dismang Unverified 34:54
be willing for an amendment just to strike lines 31 through 33. I think that's worthy of a conversation with the
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Senator Tyler Dees Unverified 34:59
chair's permission we can pull this down and have him revisit that. Yeah, that's fine because we'll, we're gonna meet one more time because
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Senator Ricky Hill Unverified 35:06
they've got a bill coming up from the house down here to us and you can do that
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Senator Jonathan Dismang Unverified 35:10
or. Any other questions verbal amendment right now I mean I'm assuming the goal is what we're seeing in some other cities. So if you go to Tulsa. The, I mean, that's, it's a in a neighborhood setting, they are predominantly used. I mean, I was
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Senator Tyler Dees Unverified 35:27
kind of surprised. Could we verbal, is that considered substantive or how would that work on a verbal amendment? men we just
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Senator Ricky Hill Unverified 35:48
We can allow it here. Right. Well, basically what we'd have to do, Senator Des, is we have to suspend the rules, wait on the drafter, since we're gonna meet again, if you want to do that, it'd be a lot easier just to. Take comments and pull it down and run it tomorrow.
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Senator Tyler Dees Unverified 36:04
Let's, let's do that, but before we do, is there any other comments or any other questions that we can address as well. Senator Brown. I guess you
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Senator Joshua Bryant Unverified 36:14
know what the penalty is for Class C misdemeanor. Off the top of your head.
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Senator Ricky Hill Unverified 36:22
I believe it's $500 fine and 30 days up to 30 days in jail and a $500 fine. I can't remember I heard someone say this morning, but I can't remember what it was. I don't know. Yeah, I think
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Senator Tyler Dees Unverified 36:37
that's probably perfect. All right, members, um, we will pull this down and work on that verbiage and bring it back for our last
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Speaker 115 36:42
meeting. So it just means you get everything said that you wanted to.
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Senator Jonathan Dismang Unverified 36:47
Yeah, I mean, if you can just make sure, I mean if the whole thing is we're just worried about how to word for the electric. UTVs and it striking that out would kind of satisfy. And If
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Senator Ricky Hill Unverified 37:01
you strike that out though, you're going to have Some of the electric golf carts that go 15 miles an hour down the road. I think some of that's already legal, but someone else would have to. I say, OK, let's say uh. an electric pool that doesn't go very fast. You can't straddle it. out.
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Speaker 24 37:25
Yeah, all right don't worry about. All right, thank you,
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Senator Ricky Hill Unverified 37:28
members. Appreciate it. OK, thank you, sir. That one's pulled down. Senator Stone, if you'll let me go real fast, and we'll let you do your two round in a row.
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Speaker 195 38:02
Mr. Chair, with your permission, I'd like to ask Mr. Patrick to come down
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Senator Jonathan Dismang Unverified 38:09
here with us. Mr. Chairman, please recognize yourself for the committee, Ricky
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Speaker 197 38:12
Hill District 11. And if you could just recognize yourself and you're welcome to Greg
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Speaker 198 38:17
Patrick Arkansas Auto Dealer Association. Senator, this deal
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Senator Ricky Hill Unverified 38:23
is is pretty simple. It makes it possible for the Department of Finance and Administration to implement a system for electronic lien and titling. If they're ever to decide to make it, decide to digital titles. That just gives DFNA a choice to do that, and with that being said, I'm going to let Mr. Kirkpatrick go through the, the
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Speaker 200 38:44
bill with you. members of the committee, I will defer on time and go through this as certainly as much or as
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Speaker 202 38:50
little as we need to. The general goal of this bill is to, it's a permissive bill to allow the department to start to implement an electronic registration system. Senator Bryant, you kind of teed it up actually on the pace of paperwork that's the goal of this entire system. So when if anyone who's bought a car lately at a dealership, the whole process is basically digital until you get to the state part at that point. It becomes very paper intensive, um, this will allow this language will allow the state to start to develop a system so that dealerships can upload the register their paperwork, the customer's paperwork digitally. Each dealership has an agreement with a DMS system, and that DMS system can interconnect with the state of Arkansas once this system's in place. Arkansas is one of about 4 states that kind of limits, has a limited services, so this is really going to start putting us in line with with where the direction the rest of the country is going. So it's called electronic registration and titling because the registration piece is the paperwork. That's step one. That one's fairly simple. As of right now, if a dealership wants to upload the customer data, essentially has to be keyed in manually by either a dealership employee or a citizen who wants to go online and register themselves. This will create a portal for. Dealer for that for that registration paperwork to be uploaded to DFNA, um, then once you get into the electronic title piece, now you can get into some of the lean releases and you can get into the application of the lien. The lien release and the lien process through the banking system has been a huge hindrance on getting paperwork. Um, that's certainly not a criticism of the lenders. They, they want to take their time to make sure that that everything's in place before releasing that lien. But when you're seeing the delay, often it's in that that period of time and it varies lender to lender. So this system completely permissive will allow the state to start implementing this. There is a component within the bill that talks about digital titles. That is not on the on the docket at this point. It's more of a I hate to use the phrase placeholder, but it's, it's an ambition that eventually the state, what what we're going to eventually see across the country digital titles. That's years down the road. We just wanted to have it there kind of in place when the state's ready to do that, uh, but again, there's nothing in here to require the state to do it. It's permissive to allow them to do it. There were two components that still required paper in Arkansas, a power of attorney form called a TEA2 form. That's a truth and mileage Act form. It's a federal-based form that has been and we have required that to have a signature and an odometer statement. Those two documents under this law will now be allowed to be digital digitized, once that, once, once those are allowed to be digital, now it's going to be a lot easier for dealerships to upload the the paperwork directly to DFNA should speed up the entire registration process and hopefully we'll address some of the expired temp tags and the pace and speed at which customers are getting their
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Senator Ricky Hill Unverified 42:15
paperwork. Thank you. With that all being said, I didn't have said that any better myself. I'm glad
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Senator Jonathan Dismang Unverified 42:29
to take any questions. Well, I was texting Stein, so I apologize. I was trying to say sorry. Uh, any questions? Senator Johnson, you're
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Senator Mark Johnson Unverified 42:37
recognized for a question. Thank you, Mr. Chairman. Greg, this is not a destination, it's a journey. This is the kind of beginning of this journey, I guess is a way to look at this. And we may be back in 2 years to finalize a digital title or some other thing, but this allows uh DFNA to start the process. Am I reading it
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Speaker 202 42:59
correctly? Absolutely. That's why I kind of focused on the registration part. That's really been the holdup for consumers. It's been getting their paperwork. Right now it's literally certified mail or being mailed or they're having to go to the dealership and pick it up, you're having to drive to DFNA in a lot of cases. This will allow that documentation to be transmitted electronically. OK, thank you Senator Bryant,
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Senator Joshua Bryant Unverified 43:20
recognize for question. Thank you. So I'm, I'm, I'm viewing this as registration is post. DMV and so you get the registration, it's got the sticker. Attached to it that you take off and you put on your tag. Is, is that the
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Speaker 210 43:36
registration, that's the temp tag. So is that
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Senator Joshua Bryant Unverified 43:39
what you're referring to actual registration like every year they are star, you fill in your
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Speaker 212 43:44
paperwork for your license plate. This would actually be the paperwork that you're uploading that will allow you to register the car to initiate getting that, that this is the this is from the moment of
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Speaker 202 43:56
purchase. It will initiate you being able to get that piece of renewal paperwork renewal paperwork in the mail
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Speaker 213 44:01
right now you purchase a car, you get
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Senator Joshua Bryant Unverified 44:04
your invoice, you get your odometer statement, you get all the things they fold all the legal documents into a wall and they stuff in an envelope, you stick it in your glove box with your temp tag, and then you wait. That's correct. And then one day in the mailbox, you open it up and there's your MSO or your title from the previous if you didn't get one or however the lien holder releases it and then you take that to the DMV. So I'm just trying to picture with this process. Is
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Speaker 214 44:33
where is that in the loop? The stuffing of the paperwork into the
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Speaker 212 44:38
envelope that you're waiting on should go away. That would be the goal long term. The paperwork would be digitally uploaded directly to DFNA, they would then be able to review that paperwork, lien
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Speaker 202 44:50
holders would eventually be able to release the lien on that once they know that paperwork's been uploaded, so all of the processes that are holding things up, certified mail has been a huge one. I mean literally. mail getting lost. People not at their destination when they need to sign for it, you know, it's this will prevent that from from
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Senator Joshua Bryant Unverified 45:12
being the impediment. So I guess not not to get into the weeds, even though it's going to appear in the weeds a little bit on this. When you show up and you no longer have an envelope. At all, and you still have to have your title when you show up and hand that to them and they pull the title, then they can kind of cross reference to thousands of different buyers now in the system where they've got to locate your, you know, by name or by purchase to be able to generate those documents that were traditionally in an envelope, so it'll all be
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Speaker 202 45:43
The paper, so the process they'll all be Ven-based, obviously the process would be you go to buy the car. You sign all that paperwork digitally. For the most part, you're saying it on on some sort of pad device that is then within the dealer's system digitally. Dealerships are now printing that out and having been sending it to you because you're still having to sign a couple of documents with a pen, um, once that signature with a pen goes away, now it can all stay digital. Then you have to have a secure portal with between the dealership and the state of Arkansas, and right now we don't have that. That's the missing component. So this bill will allow the sweat signature requirement to go away. It'll allow the state to start working towards developing that portal which will then link directly with the um with the dealership's DMS system, which is the where all the paperwork you're referring to is housed. If there's a title along the way. It has probably been if, if I, if I traded in, I have a title, at that point, that's where it kind of will get into the weeds depending on transact it's it's, it's less important maybe what happens with that title as much as if there's a lien on the title, now the lien holder can release that lien a lot faster, um, and you're no longer having to rely on getting that envelope of paperwork to take with you, um, so honestly, I mean there there would be a moment to Senator Johnson's point on the temper tag piece. There's going to be a lot more information available to DFNA to know who's driving the vehicle, you know, what's the status of that vehicle? Um it, it really is kind of the next iteration and registration hopefully to a point and there is some language. This was at the secretary's request. There is language regarding assessment that has always been a hurdle in Arkansas, making sure that assessment process is included, so there is some language in the bill to allow for that as well, to make that a digitized process, so The hope is, I will tell you, I mean the goal would be that people don't have to go to the revenue office. That would be the goal, and that seems to be what a lot
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Speaker 210 47:55
of consumers are kind of ambitioning towards and I guess just to finalize my question is,
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Senator Joshua Bryant Unverified 47:59
will it work interstate? Like, uh, yeah, consumers, you know, I live up northwest corner. I consume in Oklahoma and Missouri just as quick as I can see in Arkansas. Yes, and I wish I had a better. This is a system that is being a bit
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Speaker 202 48:17
cobbled together state by state, states are working together on it, but it's, it has been, this is, it's an interesting situation where, you know, states have individual DMV laws, so they've all kind of progressed this direction on their own. You're starting to see some consolidation of. Processes through the National Association, the DFNA is a part of AMA, there's a lot of uniformity. Yes, there is interstate connectivity, but it's not, um, but it's, it's, it really is
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Speaker 210 48:49
an Arkansas state by state sort of system implementation. I don't know if that makes if that's a very good answer. Alright, I
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Senator Fredrick J. Love Unverified 48:58
just have one quick question. So what, what are we going to do with the with the county information because we have to take it to the county to get assists, so I know you, you're talking about between the dealerships and the and the the dealerships in the state and I'm supportive of that, but what about that piece to the To the between the counties to
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Speaker 220 49:20
where we had to assess, so the, we wanted to make sure that there was the ability within
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Speaker 202 49:26
this legislation for the department to implement the digital system to get the accounting information back to probably still have
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Senator Fredrick J. Love Unverified 49:32
to print out something for the person to take it to the county. I hate to give an answer that I, I mean, I hate to
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Speaker 220 49:40
give an answer if the goal would be no, but
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Speaker 202 49:44
I, I can't, I can't confirm. That because the counties sometimes they might be hesitant initially, I think some of this is going to be department um counties working together to determine how comfortable they are with it's my understanding that, I mean there is county data being uploaded routinely. Between all 75 counties in DFNA for lots of tax purposes, so this would just become a part of that data that would be uploaded digitally. All right, thank you. Thank you. Do
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Senator Jonathan Dismang Unverified 50:13
you have any other questions? Seeing no other questions, we signed up to speak for or against. All right, seeing noneen would you like to close for your bill? I'd appreciate a
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Senator Ricky Hill Unverified 50:24
good vote bring Arkansas into the 21st century with digitalization. We've got a
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Senator Jonathan Dismang Unverified 50:28
motion to pass by Senator Hill. We've got a second by Senator Johnson in discussion on the motion, seeing none, all those in favor signified by saying aye. All those opposed. Motion carries. Yes Good One sec. Oh, you're about to present. OK.
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Senator Ricky Hill Unverified 51:20
Yeah, I think he's yeah. Go ahead, Senator Stone I'm sorry. We have an amendment 1688. Center stone. This is HB 1688, the amendment. So if you'd like to When it All this does is just add you to the uh as a function, we need a motion center right. seconden Scott to prove the amendment all in favor say aye. Present your bill as amended, um, Mr. Chair, with your permission, I'd like to ask Mr. Kirkpatrick.
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Senator Matt Stone Unverified 52:23
Come to the table also members I have House Bill 1688. And I also have um House Bill 1834. Of course, I obviously I'm going to run them independently of each other, but they're also companion bills, and I'd like Mr. Kirkpatrick to speak to him. I think he's in intimately familiar with them and, and, and make sure we can get everything straight. Um, members of the committee, Greg
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Speaker 200 52:46
Kirkpatrick, Arkansas auto dealers. Thank you, Senator Stone and Mr. Chair, if I can kind of run through very quickly. So House
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Speaker 202 52:55
Bill 1688 is a bill that addresses dealer extra license plates. This section of code has not been altered in about 25 years. That's relevant because one of the key pieces it does is redefine who is an allowed user of these tags of these plates, um, for example, um, the current law, there's some singular and plural uses of the word manager, dealership. operations have expanded pretty dramatically, so you generally have two sides to a dealership where you'll actually have to managers that the days of sort of the top down singular manager gone. So this clarifies who exactly is allowed to utilize these plates. The other thing it does, and this this uh this came out of a um out of a Supreme Court decision based on a use tax issue, um. The uh DFNA do some tax audits, made the determination that a that a use of a dealer extra tag was a taxable use under sales tax law, um, and when I say the use of it, I mean the misuse of it is actually the better description. There was a penalty schedule within the law that penalty schedule was not that penalty schedule there it was a little bit unclear exactly who could enforce that penalty schedule. So then the department do some sales. tax audits decided, let's look at this as a as a taxable use that led to dealerships that were found to have had employees misusing the dealer extra plates. DFNA was then assessing sales tax on these vehicles. The important part to know is these vehicles remained in inventory. They were for sale in every case, these vehicles had been sold once the audit occurred and more importantly, sales tax has been paid on every vehicle. So it's effectively a double collection of sales tax. I will note there is no fiscal impact on this bill, so the FNA did a fiscal impact statement. There is no fiscal impact, so it, it, it, that is, that's important. We're not, the state's not losing revenue here. It was just sort of an interpretation. Supreme Court agreed in a split decision, so we made the decision to bring it to bring this bill forward to clarify one who isn't allowable user for these extra plates and to clarify kind of what what we're talking about with the dealer extra plate when a dealership gets licensed, they get an F tag. There's a franchise tag that franchise tag then allows a dealer to pick up certain extra license plates. Those extra license plates can be driven by employees. They can be driven to transport vehicles back and forth between maybe. dealership to dealership, um, and, and once we, once this use definition was all of a sudden expanded so broadly, it actually got to the place where what is a use is driving to the gas station on the corner to fill up the tank for the customer who has not yet bought the car, but, you know, may want to test drive it. Is that a use? Um, and driving it in a parade, driving it to the airport to display, so the use term got very concerning, so this bill clarifies that is not a taxable event under sales tax. Why this is a companion bill and we'll get to it later. This bill does not open up the dealership misuse of these tags. In fact, I think it enhances the penalty pretty pretty dramatically. It puts the enforcement you'll see in 1834, the enforcement of misuse is now going to be in the motor Vehicle Commission Act. It will allow the commission to find a dealer up to $5000 for a freight if I'm sorry, it'll it'll allow the commission to either sus spin the license or penalize the dealership up to $5000 per occurrence. So literally and the way the commission's definition of per occurrences, it'd be every day. So every day the vehicle was being driven. They could actually have a $5000 penalty or if it's a if the commission determined that the dealership was abusing this plate so much they could actually revoke the dealership's license or find them $10,000 per occurrence. You'll see that in the next bill, but I just wanted to make it clear this wasn't something that's just going to try to open up the the use of a dealer plate. So it defines the primary purpose of this bill is to one define the eligible users to find the eligible use for the dealer extra plate, and the third issue is to actually state that this is not a taxable use under sales and use tax, and as I said, there's no fiscal impact, um, and at this point I'd be happy to take any questions. Do you have any questions?
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Senator Joshua Bryant Unverified 57:55
Center right. Chair, just, just kind of Cursory look. kind of got me to the uh Really the back page. Of Senate, I'm sorry, House Bill 1688 section. I guess what? I guess I can understand we're not, we're not constituting a withdrawal from stock, I guess under the current technically if they withdrew it from stock, you could start to they could technically be assessed some sort of taxation on their vehicles. Do you know why they added not authorized, I guess I'm The balance between Is the penalty what you're saying is if they get caught allowing if a dealership salesmen or owner allow their son or daughter. Stick it on there and we're going to keep this one at the house. And let them go back and forth to school, to work, to just because I can. I mean they can't, but they can. Are we saying that they are not authorized, so if they get caught. They're going to have a penalty for allowing that, but we're not going to charge tax on the vehicle's use and the depreciation of that vehicle over the month that they didn't get caught.
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Speaker 214 59:15
So under this, under this bill, that would be a misuse, so that would
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Speaker 212 59:20
then be when, when we get to 1834, you're gonna see that would then. Open up the dealership to the
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Speaker 202 59:27
penalties under the motor Vehicle Commission Act. There was a penalty schedule already in the law. The problem is the enforcement of it. It was unclear if it had to go to court. It, it really didn't say that in the law, but it then, you know, does DFNA have the enforcement authority. They don't really have a good authority, a clear authority to issue penalties, um, so this will put it into the realm of a commission that actually has an administrative authority. It's a commission made up of a majority consumers, the chairman of the commission is a consumer from Pine Bluff, um, they routinely hear cases and matters about about involving dealerships and they have this pretty extreme penalty schedule that they'll be able then to enforce the the provision, um, but the defined users would not include kids or just um, you know, it's,
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Speaker 240 1:00:20
it's very limited to dealership employees or owners. OK, and then just to
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Senator Joshua Bryant Unverified 1:00:27
follow up on that work. The use of the term without limitation. Is in a few places. Without limitation, the manager includes regional manager, division manager, department manager, sales manager, are we, are we allowing the commission by rule to go too far and allowing basically any employee for a dealership
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Speaker 214 1:00:52
to be permissive on their perks. No, in fact, I just had a uh
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Speaker 202 1:00:57
no, I would say that, um, for one thing, dealerships have due to liability reasons, I mean most dealer dealerships aren't letting. Kids drive on these blunt way, um, it's a very kind of specific use, um, and it's a specific employee for the most part it's somebody in sales, um, we expanded the phrase manager because dealerships have sort of split into two camps now. What used to be a general manager that sort of oversaw everything and then you had a sales team. Now you actually have most dealerships are sophisticated enough. They've got a fixed operations side where they are running all of the dealership operations service parts, everything in the office side, then you have the sales side. This would allow a dealership, or I should add, or you have a dealership group, and that's probably where we're seeing the biggest headaches, I guess, for dealers where you'll have a dealership group where you may have a non where you'll have a platform manager, let's say, some of our largest groups have a position called a platform manager. They might have a platform manager in Northwest Arkansas and Platform manager in central Arkansas. Well, that person clearly would be defined under the term overall manager of they're an overall manager of a pot of dealerships that are here and a pot of dealerships in Northwest Arkansas, um, so we were trying to define manager in a way that allowed the flexibility for a dealership. In modern parlance, I guess in modern operations to allow that employee to drive on a dealer extra plate. And, and so, so it's, it's, it's still quite, it's still limited to somebody that has to be defined as, in fact, it's, it's um without limitation, regional manager, that's where I got into the platform side, um, a division manager, department manager, and finally sales manager, so often, you know, it's kind of funny. I just had this conversation with a dealer today, um, office manager asked me about office manager. That's not going to be a manager under here. The word manager isn't the trigger. It's regional manager, division manager. Well, the office isn't going to be a division, um. You know, it's, it's as, as, as the dealerships have become more and more sophisticated. You still have some smaller stores that kind of operate maybe with some some different terminology and the old office manager position really isn't a position that's in most dealerships today. Most dealerships have a comptroller, they'll have a CFO. That person isn't going to be an eligible user under this, clearly, um. So it's, it's, it was really an effort to modernize the defined.
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Senator Fredrick J. Love Unverified 1:03:55
positions within the vast majority of dealerships. They And so I, I missed most of the conversation, so basically, but what we're trying to do is is just provide them
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Speaker 238 1:04:09
with additional extra plates that they can use in the opposite, um, so it dealers. You know, one, I, I hadn't even
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Speaker 202 1:04:17
actually hadn't even brought this up, but as we're getting a little bit deeper into it, dealerships are required by the manufacturer to put a certain number of vehicles into some sort of user loaner status. Um, that would include being driven by employees. Factories want dealers to have vehicles with mileage on them. It's just a part of the operations. In fact, they give incentive money for you to sell, you know, vehicles that, that hit a certain threshold. In the old days, I mean, I still remember it used to be a demonstrator vehicle. You always said you get a demonstrator vehicle. You got one of these demonstrate they they don't really call them that anymore. Now they're, they're loner vehicles or they, they, they have to get to a certain mileage right below a certain mileage threshold and it varies by OEM. So this dealer extra plate is an opportunity for a specific segment of a dealership's employees to be able to drive. With that plate, um, what we're saying is that's not a taxable event. And and I think that doesn't seem to be disputed, especially since we got back that there's no fiscal impact, so DFNA wasn't even viewing that as a as a taxable event. It was just being defined as a taxable use, so we're kind of closing that loophole, but what we didn't want to do is open the floodgate and misuse. So that's where the next bill you'll see will have the
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Speaker 240 1:05:41
penalty phase, um, and it's a very extreme set of penalties. OK. All right. Thank you.
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Speaker 245 1:05:46
Any other questions? Seeing no is there any
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Senator Joshua Bryant Unverified 1:05:58
I just wanna just wanna broadly state. We are expanding, we are expanding license plate to a point. Officers of the company, which weren't in the previous. Previous, so These large mega companies probably have multiple officers they can now legally have a license plate, dealer plate. I mean, I'm not, I'm not necessarily opposed to it. I just I'm just stating the obvious if you had uh a large company with 11 officers, um, you're gonna have 11 dealer tags being signed out potentially, um. And then owners, you can have an owners group in addition to the officers, so we are expanding the use of dealer plates. So that is
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Speaker 214 1:06:44
actually you're raising a very good point and, and Over the
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Speaker 202 1:06:49
last, like I said, this line been amended or updated in 25 years. One thing that didn't exist like it does today are the number of in Northwest Arkansas is a great example, um, I really hate to use specific dealership group names, but there are a number of dealership groups that the general process of ownership is groups of, they'll be an ownership group and then there's an on-site manager that runs the operation and has a small piece of the ownership. So that is clearly a dealer that's now an owner and under the that That was not ever a kind of a, a system that was considered in the old statute, and I'll give you an example. The word dealer in the old in the current law is singular. So the fear that that was being defined as, well, how many dealers are are dealers if if you've got 5 owners, does that mean that's 5 dealers or does there's just one dealer. So what we wanted, we had to capture a way to make it clear that That ownership is a trigger to be called a dealer because you could have multiple dealerships just today the way they are. Uh, with private investment, with, I mean, I again, I hate to, I could throw names all over the state that you all are very familiar with and those dealership groups generally have multiple owners, um, yeah. Any other questions?
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Senator Fredrick J. Love Unverified 1:08:22
Senator Love, and so, and so you said that that these plates are not taxable. Meaning they don't pay anything for the use of these plates? No,
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Speaker 220 1:08:34
there's a cost to the plate, I think. I don't know the cost. I don't know the cost offhand. There is a cost to the plate, but it's not a so what That's
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Senator Matt Stone Unverified 1:08:46
the question I think to answer your question is, I mean, of course, the deer, the dealer will have to buy the plate, but since it's an inventory owned by the dealership. It's never taxable. It's never sold, so there would never be a tax. The, the amendment bill or companion bill to this if a dealer took it upon themselves to use A dealer plate illegally. Then they could be subject to a 500 to $10,000 fine and maybe even have their dealership license pulled. So they're just clarifying that there's inventory driven among the managers in a dealership is never taxable, but if they misuse it, they subject themselves to substantial fines. Got you, OK. So, but there is a
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Senator Fredrick J. Love Unverified 1:09:28
cost for the plate, but there is a cause for the police. All
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Senator Ricky Hill Unverified 1:09:34
right, thank you. Any other questions? Say none. Is there anyone here to speak for or against the bill? Yeah
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Senator Matt Stone Unverified 1:09:48
Center You're free to close for your will. I'm ready to close for the bill, but I was also noticed I failed to disclose. I'm Matt Stone, state senator District 2, so I just wanted to go ahead and say that for the record. And with that, I'm closed you for correcting me on, I'm not correct you, but I just, we have a little commotion going on here, so I think I'll take ownership of that, but anyway, I just wanted to set it straight for the record, but with that being said, I'm closed for the bill, and I'd make a motion. I'm I'd appreciate a good vote and I also make a motion to pass, as amended. Thank you. So we
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Senator Ricky Hill Unverified 1:10:18
have a motion to pass as amended. We have a 2.2 with Senator Scott. Any discussion All those in favor say aye same time. since your bill passed. And Senator, you Monroe, go right into 1834.
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Senator Matt Stone Unverified 1:10:45
Map stones, state senator District 2 members, this is the companion bill that we referenced just a while ago and just to summarize, if a dealer. violates the law. These are the penalties that that that they will be subject to, uh, $5000 per occurrence. And then up to maybe $10,000 fine and they could have their dealership license revoked to. You know, with that I'd be open to any questions, any questions on the committee. Say
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Speaker 253 1:11:21
no. right. I kind of rolling. That question
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Speaker 255 1:11:46
So that maybe. no more than that. I see. And also placard typically in the ocean. So there's been. answer.
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Speaker 202 1:12:17
So this is this is a situation where I kind of wish the bill was longer because there's a whole section of law that very clearly states how that fee is used more importantly, that the commission already um sets that amount. And it's set by rule. It's commission Rule 8, That has been in place since 2007. The goal is that as and we've seen this in other states. Kind of hearkening back to the e-title bill, you're starting to see more and more operations of the state shift to dealerships, so you're starting to see kind of an expansion of roles that dealerships have. This gives the commission flexibility. To review that amount. The key is that amount is not going to change right now. Rule 8 is in place. All this will do would be if at some point in the future the commission wanted to review it they could since it's a rule, it still has to go to ALC. It still has to be approved by the legislature, so there's no the the the legislature is still going to be setting this, um, that's why the, the phrasing reasonable was added, uh, it's not something that That you, it's not something that's going to change once the bill passes, and it's not something that's going to change without legislative approval. And So that's 2.
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Senator Jonathan Dismang Unverified 1:13:53
Tags and then the $129 fee, how do
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Speaker 259 1:13:58
those make it into the same? Yes I apologize. One, because it's
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Speaker 66 1:14:03
in the motor Vehicle Commission Act. It it the same. Right where we talked about. Multiple license for dealers, yes,
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Speaker 234 1:14:11
we could have. I, I think they were
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Speaker 248 1:14:13
drafted at different times, to be honest, I don't have. Yeah.
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Speaker 262 1:14:24
Are you talking about the bill that Senator John Johnson just ran. Now we are when you
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Senator Matt Stone Unverified 1:14:30
just ran. Oh, OK. Oh, I'm sorry, I missed, I misunderstood what you said. I apologize.
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Senator Jonathan Dismang Unverified 1:14:34
The way that I understood the Presentation with this paper tag goes hand in hand with this other bill.
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Speaker 214 1:14:41
It's not the paper tag, it's the dealer. So the dealer's paper tag is that not a tag? No. OK, so to clarify, so This was, this will be a metal plate.
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Speaker 202 1:14:54
Yes, the dealer extra plates a metal plate, so in line on page 1 line 22, where it says temporary preprinted paper buyer's tag. That was a, um, in retrospect, I wish that hadn't gotten put in there because of the tag conversations, but we were clarifying the motor Vehicle Act said a cardboard tag that went away in 2009. It's just the motor Vehicle Commission Act had never been updated. So once we added this. Sick on line 28. Once we added. 308 is a laundry list of violations for dealers, so we had to add the misuse of a dealer extra plate, which is a metal plate into that laundry list because we opened up that section. It was actually brought to my attention by BLR that, hey, while we're here, why don't we fix the cardboard tag piece because there are no cardboard tags. It's now printed on an 8.5 by 11 sheet of paper, you affixed that holographic seal. You put it in a cellophane sleeve. You put on the back of a vehicle, so there's no cardboard involved, so that's the only reason there's a reference to cardboard, then lines 28 to. 29 are the provision that will now add to the list of violations by dealers, the misuse of the extra plate. This section 308 is governed by another Section 309 that gives a penalty provision. of that Senator Stone referenced for $5000 or suspension of the license or $10,000 or revocation of the license. So that's how That's how the temporary pre-printed tag
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Speaker 248 1:16:40
piece got in. Dion need the why is the 129
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Senator Jonathan Dismang Unverified 1:16:50
there at all? What, what is the reason for that? Is that, I mean, it's still subject to sales tax, it's still part of the the valuation of the vehicle. You can sell a car for whatever you want to sell it for. So what is, why, why I've never
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Speaker 202 1:17:08
really understood the 129 to begin with. So it In most states it's called a doc fee in Arkansas, service and handling fee, um, it, it has it's been, it was in law and it was being abused where it was being to your point, referred to as a mandatory fee. It's not a mandatory fee, so the legislature, it was actually Senator Malone, Percy Malone, um. wanted to make it clear that that fee, how it was being charged and the amount that could be set. The amount that was set at 129 was set by statute. Um In 2007, I think. Over the over time that amount. has not, we're not, no one's asking for an increase in the amount, but as more services are shifting to dealerships, for example, like this electronic registration process. That's a good example where you might be where you could see some savings down the road to the state by not having As many people having to review paperwork, these kinds of things, a lot of states have gone to to sort of shifting some of those services to the point of sale and what we wanted to make sure was there was something again it has to go through a rule process. It has to go before the legislature to change. So this, this isn't triggering a change of any kind. It's simply
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Speaker 212 1:18:34
giving flexibility should that come up in the future. But we couldn't Deny it
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Speaker 269 1:18:40
legislatively. Either. But As long as it's in the purview of
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Senator Jonathan Dismang Unverified 1:18:47
the law, which we're granting even B 1 and 2, we couldn't deny an increase. We wouldn't have the ability to. Um, I mean, it was my, it's an approval process. That's right. I mean we would see it and we would approve it, but the way that we work, you could not disapprove that rule. Uh, I don't, it didn't matter if it says $500 because it's because of the, you know, what it would allow here. So the, the gap would be whatever motor vehicle, whoever authority motor vehicle commission, the commission says it's going to be and we would have to agree with it. We wouldn't have the authority to say no. I think it would um Yeah, it's a, it's a majority
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Speaker 202 1:19:36
consumer board, um, it's, it's not something that. That they're going to set. A fee amount that would be not it would that fee amount would have to be approved by the people who are going to pay it,
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Senator Jonathan Dismang Unverified 1:19:48
so it's, it's not, but do we need the fee at all? I just don't understand. I understand what you're saying, but why would dealer, I don't, why did dealerships need to call it that anyway. I mean, it's just the price of the vehicle, the state of Arkansas is the price of the vehicle. We're taxed on it. We're We assessed on it. We are everything on the. That I just don't, I've never understood the fee. Besides someone gaming a system trying to tell someone they have to do something. That they really
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Speaker 218 1:20:17
didn't have to do, but it sounds good. Over the years there's an enormous
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Speaker 202 1:20:22
number of costs that the feds, federal government, states fortunately Arkansas's been pretty consumer friendly or pretty business friendly for that purpose, but The EPA requirements that dealerships over the years have had to implement the requirement for truth and lending, um, all of these, you know, dealerships now are almost treated like a bank where you've got, where you have to build separate facilities to store customer data that so the oper as the operations and the requirements that were put on dealerships have grown. That's where that fee has sort of come out of has has come up, um. Several states actually don't regulate it at all, and it's just kind of the wild west. So Arkansas has been good about having a regulated fee, and I think there's some value to it. Um And, and it enumerate the provision. I don't have it right in front of me. The provision of law states the processing storage, um, And there's another term for customer data for For the business operations. Yeah. What I, what I can see happening here
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Senator Ricky Hill Unverified 1:21:32
is a striking that out and us pushing more of it back with the digital to the dealers that they could go up to $1000. Uh, I Because at that point, they can, they'll they'll have the liberty charge what they want. And as I said earlier today when we're debating tires, tire tactic. I'm here for the consumer. I'm here for them. I want to make sure we got protection in there for the consumer. OK. And so You know, I, I think we need to leave it in there or We'll get rid of that fee altogether. Because at that point it center Dima said we're depending on. The commission come and tell us, here's what we're going to charge to our dealers need this much money because they're having to do all this extra work now because of the digital processing, which they wanted. So now we're going to ask consumer to pay for that. And so It's just kind of kind of kind of my trains of thought. I mean, tell me, tell me if I'm right or wrong. It certainly was not the intent
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Speaker 202 1:22:45
at all. It was mainly to give flexibility in the future
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Speaker 212 1:22:48
if you needed to look at adjusting it. The intent was never a 1000. I mean there's just
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Speaker 202 1:22:54
randomly pick that and it's a very public fee. I mean, everybody knows about it and then and the rulemaking process is a public process, you know, it's there's so many different steps and backstops to prevent some sort of an abuse of the system that was so that was certainly not the intent in any way. the rule is already is there and it's not going to change. Once, you know, once this bill were to pass, it's still going to say it's still going to be set at 129.
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Senator Ricky Hill Unverified 1:23:27
The Brown, I can see the wheels turning over
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Speaker 278 1:23:29
there. Go ahead, yeah, I think it's whether we leave it at 129 by statute or
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Senator Joshua Bryant Unverified 1:23:34
we increase it. 250 to keep up with inflation and the cost of doing business, it's going to be whatever. Whatever it is we say the limitation is because the cost of doing business is probably more than that, but then they're going to put that in the cost of the vehicle somehow and their packages that they upgrade or whatever they got to do. I talk about new vehicles, so. But you're saying it's not going to change now. Does that mean it's already in based on the statute you've already adopted
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Speaker 214 1:24:06
it in the rule that it's 129. Yeah, yeah, there is an existing rule, Rule 8 that it nothing will
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Senator Joshua Bryant Unverified 1:24:12
change after so it's it's capped at 129 only because the statute says you cannot go above 129. Is that, is that an accurate statement? Yes. And so if we remove that 129, then you have dealers, then you go out to. You know, the public and dealers show you the laundry list of regulations that the state and the feds have put on them, and then move to digital and buying the software and all the fancy things that they provide for their customers and then the consumer says, well, it's it's reasonable to go to $800 up to $800 in different dealers. put in their calculations and
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Speaker 214 1:24:49
they say, well, we're just going to go ahead and add that and go up
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Speaker 248 1:24:55
to $800. No, the process would be it would have to go to the commission. The commission would have to approve any amount in excess of $129 so that it and and then that amount I guess that's
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Senator Joshua Bryant Unverified 1:25:06
my point. We strike, we strike it out of code with this bill. And then the commission through its own activity. Say, OK, now we're not capped. Let's go out to our public and our dealerships to see what their new reasonable fee is and the feedback they get is 129 was not reasonable. 799 is reasonable up to and dealers can charge $129 and they can charge 799 based on the services they provide out of a a la carte menu that the board may or may not adopt, so I think in essence by us stripping this language, it may not be this year, but eventually it'll head towards A higher cost to the consumer and maybe it needs to be because it's, it's more cost to the consumer than in 2007, but I, I guess my concern is if we're not gonna cap it by statute, we probably need to
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Senator Jonathan Dismang Unverified 1:26:01
cap it by statute. So I'm just, I'm, I don't know enough about it. Dock fees, can they be on, is it only new vehicles
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Speaker 234 1:26:07
only? No, it's also used. OK. Yeah, it's used. So. Senator Payton has
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Senator Jonathan Dismang Unverified 1:26:15
used car sales tax increase. We could do this and negate all of it overnight. I mean, right? I mean, we, we could allow a fee to be charged. That would be in excess of any savings that someone could have off of the new used car sales tax. And that, that would be my I, I don't know. I, I, I'm more of a free market. I don't know why we have it in there anyway. I mean, maybe it shouldn't be in here, but I, what I don't want is What you, if you look at some other states, and I don't understand why. So Florida's is $1000 and essentially, uh, Texas, who has no, you know, has supposedly he's not capped, is at $150 right? I mean, it, it's just kind of all over the place, um. Yeah, I can go around I hate the idea because right now the 129, well, that's what the, that mean essentially they, I mean the pitch is going to be this is what we're allowed to charge you. Right, this is what the state says to charge you. That's how I would. That's how it's inferred by the average consumer like, oh, you've got to do this anyway. Um, I, I really don't know what to make of the bill just to be honest, uh, but anyway. I don't, if I look at the averages though, are 129 is really not that out of line with
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Speaker 238 1:27:32
our surrounding states. Well, I don't, Michigan I know Missouri's at 608, um, tennis
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Speaker 202 1:27:36
uh Louisiana is at 495, 435 I think. So on a used car. The state government is
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Senator Jonathan Dismang Unverified 1:27:41
just that I'm not sure. I apologize that I that's what I don't know for a fact. I don't see having the authority to set the calf is just pretty much setting the new.
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Speaker 212 1:27:58
Bottom, I mean that I don't know. I don't know what to. Who Yeah Well, it would be a used car sold by a new car dealer, I guess that may be where where some of the confusion is. I I I don't know how the other states because the used cars are regulated by the state police, so and I don't, the way this is drafted, it wouldn't affect the used car, um, the state, it would not affect the cap and the
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Speaker 289 1:28:21
fee that the state police have implemented. Any other questions?
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Senator Ricky Hill Unverified 1:28:31
can Seeing none. Is anyone here to speak for or against the bill. Saying no one sent. You're free to close for your meal.
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Speaker 259 1:29:02
I don't want to jeopardize the penalty phase,
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Speaker 212 1:29:05
so I think with the committee appreciate that. more discussion on this. And I will defer to the senator. I think
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Senator Matt Stone Unverified 1:29:12
he has a question. Should we run it or pull it down? Um Just for a purpose of amendment, just let me pull it down and we'll get it clarified and alleviate anybody's concerns that they may have. Is a
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Speaker 293 1:29:25
you're going to pull the bill down, correct? OK.
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Senator Joshua Bryant Unverified 1:29:28
With with the chair a motion to suspend the rules for an
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Senator Fredrick J. Love Unverified 1:29:32
amendment. That's that's what I was gonna say. To spin the rules for an amendment just to just so you know if they want to
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Senator Ricky Hill Unverified 1:29:40
think about or talk about it, I don't know if he has to talk to someone in his. Area or I think he's got control of the session. I think
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Senator Joshua Bryant Unverified 1:29:50
he's got control of the bill, so. I, I'd, I'd make a motion to suspend the rules about the amendment to un-strike the language on page 1 line 36 and page 2, line 1.
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Senator Ricky Hill Unverified 1:30:04
have a motions to spin the rules. Do we have a second love all of the papers suspend the rules. Say ah, same time. And the rules are suspended. OK, Senator, Senator Bryant, we need a motion from you to adopt the verbal amendment. And state verbal amendment. I
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Senator Joshua Bryant Unverified 1:30:27
make a motion to amend page one to unstrike the language on page 1 line 36, page 2, line 1.
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Senator Ricky Hill Unverified 1:30:36
And we heard the Heard the motion and the only amendment. We have a second to Heard the motion and the only amendment.
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Senator Fredrick J. Love Unverified 1:30:49
We have a second love discussion? Yes, I need to clarify. So we're going to strike out the, we're going to strike out B
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Senator Ricky Hill Unverified 1:30:57
altogether, correct? Lines 2 through. Yeah, well, he, he's going to open last line one up and on page 2 and Anything that's stricken out on line 36, page one or Line 1, page 2 will be Unstru. Yeah, but what I'm
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Senator Fredrick J. Love Unverified 1:31:16
saying is, um, Page 2, the B section. Are we striking that? I think we can
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Senator Joshua Bryant Unverified 1:31:24
leave it. It's already in a rule. And it just gives some flexibility to maybe start flush this out in the next session they could
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Senator Fredrick J. Love Unverified 1:31:32
bring in. Say there's some changes, but the but be contradicts what you
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Senator Joshua Bryant Unverified 1:31:38
just said. It just, it gives it still a cap. I don't think it contradicts. It just allows the cap
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Senator Fredrick J. Love Unverified 1:31:47
to still be 129. Well, the cap is, the cap is line 36 and in page 2 line 1, so there's no need for B because the the cap is there. That's the the service handling fee. Yeah, because
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Senator Ricky Hill Unverified 1:32:00
that's new language. He is correct on
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Senator Fredrick J. Love Unverified 1:32:02
that. Yeah, the new language, I mean, because Because if we keep the, then it's, it's really a
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Senator Joshua Bryant Unverified 1:32:11
contradiction of I guess just give me some some latitude here, Mr. Chair. If you look at the section 2 in its entirety, the Arkansas Motor Vehicle Commission shall determine by a rule the amount of service and handling fee that may be charged and then it gives it a range of 0 to 129, and then just auxiliary to that, the new language if it were to remain, it would just say, It shall not exceed the reasonable cost of the handling processing documents and other administrative services. It could be less than 129 based on that just can't exceed 129.
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Senator Fredrick J. Love Unverified 1:32:42
I know, but that's already in. That's already in code. hard and code is the service a handling fee shall be no less than 0. And no more than 129. And so that's what we that's what we try to keep control of is that the cap of 129 if we put B in it, it's pretty much. The other administrative and clerical service, it seems like B is a B is a contradiction of I don't think it contradicts. I think it defines what service
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Senator Jonathan Dismang Unverified 1:33:14
and handling is supposed to be. I mean, if
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Speaker 234 1:33:19
you, if you look at so It's actually already in the law. That's a, that's a that's
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Speaker 202 1:33:25
a recitation of the current language in that section, so it could be struck and it still would say the exact same
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Senator Joshua Bryant Unverified 1:33:36
thing. on Restatement motion, Mr. Chair. We stay in motion to strike the language to unstrike the language stricken. And then strike page 2 lines 2 through 6. OK,
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Senator Ricky Hill Unverified 1:33:53
so second. And motion and we take the motion again, we're going on strike. Line 36 from the services. Yeah. To line 1 on page 2, the period. And then You're going to strike. Section B lines 2 through 6. We have a,
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Speaker 43 1:34:23
have a second on that. Any more discussion? Seeing none. So
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Senator Ricky Hill Unverified 1:34:37
now we need a motion to adopt the amendment to pass the bill. have a motion by center right, seconded by Senator Love. I'm going to take the two of them since they've been in this
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Speaker 46 1:34:54
all along. We got motion in a second. All those
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Senator Ricky Hill Unverified 1:34:57
in favor say aye, both the same sign. Now we need to need a motion. Do
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Speaker 307 1:35:04
passes as amended. I'm calling from. As verbal amendment.
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Senator Ricky Hill Unverified 1:35:18
All those in favor say aye or second, excuse me. This Do certain So get a second here discussion. OK. All in favor say aye the same sign. Senator, your bill passed as amended. Thank you members thank you. Yes, my Yes,
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Speaker 311 1:35:41
yes. Yes. Members on House Bill 1606. It's
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Senator Jonathan Dismang Unverified 1:35:50
the UTV bill that we had a discussion on. It's got some language on lines 31 through 33, I guess that's uh section section 7, 587, uh, that defines what can be, you know, on the road as a combustion engine that has essentially gas-powered 900 cc engine, uh, I'd like to make a, I'd like to spin the rules to make a verbal amendment to strike lines 31 through 33 on page two.
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Senator Ricky Hill Unverified 1:36:22
So that would be all of 5A7. OK. We have a motion. This has been the rules. To delete. To amend or delete. Lines 31 through 33. Page 2. That's the one you have.
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Speaker 152 1:37:03
Page 2231 to 33. This is right. Yup. That will allow electric or diesel. I mean, on the discussion, if you want to discuss that
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Senator Ricky Hill Unverified 1:37:25
or stone you say you 2. We got a second song to spin the rules. Although the papers say I over the same time.
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Senator Jonathan Dismang Unverified 1:37:34
OK. The, uh, the motion to amend. A motion to delete line or 5 A7 on page 2.
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Senator Ricky Hill Unverified 1:37:47
So we have a motion to Delete line 31 to 33, which is 587. the second by Senator Stone. Although in favor, say I, I pose the same sign. Center, you want to present the
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Senator Jonathan Dismang Unverified 1:38:06
bill as ended. Yeah, it's just, I mean, it keeps everything else in place. It removes the provision on the 900 cc engine. I think that was in there because they were, you know, per the sponsor, they weren't sure how to Right in code, the an electric engine. I don't think they probably contemplated a diesel engine. I I'm gonna also say the way that I see this working out based on the way that it's written, cities are going to set parameters on where these things can go. Right, I think that's the way that the bill is written. back and looking at Right, I think that's the way that the bill is written. and all we did was add electric
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Speaker 322 1:38:37
because all it says is internal combustion engine and that would be true of a. Gas or these so really all we've done at the
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Senator Ricky Hill Unverified 1:38:45
electric that that was whatenator Dismay was looking at the beginning, so he got his electric. He got his electric ones on there. Yeah, we have
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Senator Jonathan Dismang Unverified 1:38:56
several manufacturers of electric vehicles that would meet the standards to go on a highway and in the state, so. I'll take any questions. I think my
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Senator Joshua Bryant Unverified 1:39:04
only, my only question would be is were they attempting to achieve 900 cc to get it to a certain velocity to make sure I believe safety was there and the manufacturer UTVs that have No, no power or just like batteries that go 19 miles an hour where. You know, I still think the
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Senator Jonathan Dismang Unverified 1:39:21
way that this is written, that they can, I mean they're gonna set parameters, certain streets that these are going to be allowed on. That's the way that I understood the legislation, so that's gonna be. Up to cities anyway. I don't see cities allowing these things to go. You know, all the way across town, it's more of if you're in a college setting or a neighborhood setting, you could allow these things
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Senator Ricky Hill Unverified 1:39:44
to exist, the county judge count out. Whatever roads he did Dean's permiss on the, the highway. So we have a motion I do pass as amended by Senator Dismay, seconded by Centra Scott. All those in favor say aye. The bill passed as amended. And that was.
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Senator Jonathan Dismang Unverified 1:40:12
HB 1606. And one thing just for the committee, if you don't mind it. It They can still write in whatever they want. I mean that's what it says. I mean, so if they, it's how they're going to further define the UTV. So if they want to put more regulations on that, the way that I'm reading it, they could do that,
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Senator Ricky Hill Unverified 1:40:30
uh, with a local ordinance. I agree with you. It just cannot be any less than what we do. And with that being said, uh, we've got a bill or two in the house that's only coming this this direction, uh, I'm gonna leave us uh adjourned, but we will be at the call of the chair. adjourn.
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Agenda

CALL TO ORDER - Senator Ricky Hill

0:08

REGULAR AGENDA

SB96 C. Penzo TO AMEND THE LAW CONCERNING DETACHMENT BY A REGIONAL AIRPORT AUTHORITY; AND TO REPEAL REGIONAL AIRPORT AUTHORITY DETACHMENT.

SB478 G. Stubblefield TO CREATE THE ARKANSAS DIESEL ENGINE FREEDOM ACT OF 2025; AND TO PROHIBIT STATE ENFORCEMENT OF FEDERAL REGULATION OF CERTAIN TYPES OF DIESEL ENGINES.

SB541 G. Leding TO AMEND THE LAW CONCERNING THE TOWING OR STORAGE OF A VEHICLE, IMPLEMENT, OR PIECE OF MACHINERY; AND TO AMEND THE LAW CONCERNING THE RELEASE OF A VEHICLE THAT HAS BEEN TOWED OR STORED.

SB561 M. Johnson TO ALLOW FOR THE ISSUANCE OF AN ADDITIONAL TEMPORARY PREPRINTED PAPER BUYER'S TAG IN CERTAIN CIRCUMSTANCES; AND TO CREATE A PENALTY FOR THE USE OF AN EXPIRED TEMPORARY PREPRINTED PAPER BUYER'S TAG.

10:52

HB1666 S. Meeks TO AMEND THE LAW CONCERNING THE ARKANSAS SELF-FUNDED CYBER RESPONSE PROGRAM.

3:02

HB1606 Steimel TO ALLOW A LOCAL GOVERNMENT TO AUTHORIZE THE OPERATION OF A UTILITY TASK VEHICLE ON A DESIGNATED PUBLIC STREET OR HIGHWAY WITHIN THE LOCAL GOVERNMENT'S JURISDICTION SUBJECT TO CERTAIN REQUIREMENTS.

29:45

HB1688 Cavenaugh TO AMEND ARKANSAS LAW CONCERNING THE USE OF A DEALER'S EXTRA LICENSE PLATE.

51:39

HB1796 Beaty Jr. TO REQUIRE THE DISPLAY OF GENDER INFORMATION ON AN ARKANSAS DRIVER’S LICENSE OR IDENTIFICATION CARD.

8:47

HB1845 Holcomb TO ALLOW THE ELECTRONIC ADMINISTRATION OF DOCUMENTS RELATED TO THE OWNERSHIP OF MOTOR VEHICLES; TO AUTHORIZE ELECTRONIC LIEN, TITLING, AND REGISTRATION SYSTEMS; AND TO AUTHORIZE THE CREATION OF A SECURE DIGITAL TITLE SYSTEM.

38:31

HB1834 Holcomb TO AMEND ARKANSAS LAW CONCERNING THE LICENSING AND REGULATION OF MOTOR VEHICLES.

1:10:59

DEFERRED BILLS

SB330 J. Scott TO AMEND THE CONTENTS OF THE WRITTEN DRIVER'S LICENSE TEST AND THE DRIVER'S INSTRUCTION MANUAL; AND TO ADD HAND SIGNALS USED BY BICYCLE OPERATORS TO THE WRITTEN DRIVER'S LICENSE TEST AND THE DRIVER'S INSTRUCTION MANUAL.

ADJOURNMENT

1:40:48

Speakers

Speaker 126
1 segment
Senator Jonathan Dismang Unverified
52 segments
Senator Mark Johnson Unverified
7 segments
Senator Ricky Hill Unverified
53 segments
Speaker 136
1 segment
Senator Tyler Dees Unverified
12 segments
Speaker 148
1 segment
Speaker 152
2 segments
Speaker 154
1 segment
Senator Fredrick J. Love Unverified
16 segments
Speaker 166
1 segment
Speaker 67
1 segment
Senator Joshua Bryant Unverified
37 segments
Speaker 115
1 segment
Speaker 24
1 segment
Speaker 195
1 segment
Speaker 197
1 segment
Speaker 198
1 segment
Speaker 200
2 segments
Speaker 202
69 segments
Speaker 210
3 segments
Speaker 212
8 segments
Speaker 213
1 segment
Speaker 214
7 segments
Speaker 220
3 segments
Senator Matt Stone Unverified
11 segments
Speaker 240
2 segments
Speaker 238
2 segments
Speaker 245
1 segment
Speaker 253
1 segment
Speaker 255
1 segment
Speaker 259
2 segments
Speaker 66
1 segment
Speaker 234
3 segments
Speaker 248
3 segments
Speaker 262
1 segment
Speaker 269
1 segment
Speaker 218
1 segment
Speaker 278
1 segment
Speaker 289
1 segment
Speaker 293
1 segment
Speaker 43
1 segment
Speaker 46
1 segment
Speaker 307
1 segment
Speaker 311
1 segment
Speaker 322
1 segment