OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-261
AN ACT CONCERNING RECOMMENDATIONS BY THE
DEPARTMENT OF MOTOR VEHICLES.
Primary Analyst: PM 3/17/21
Contributing Analyst(s): DD, AN, MR, PR
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Department of Motor Vehicles TF - Potential
Revenue Loss
Minimal Minimal
Department of Motor Vehicles TF - Potential
Revenue Loss
52,800 44,000
Department of Motor Vehicles TF - Revenue
Gain
48,000 48,000
Department of Motor Vehicles School Bus Seat
Belt account
(Non-lapsing GF)
- Revenue Gain
Minimal Minimal
Department of Energy and
Environmental Protection
Connecticut
Lakes, Rivers and
Ponds
Preservation
account (Non-
lapsing GF) -
Revenue
Gain/Cost
Minimal Minimal
Note: TF=Transportation Fund
Municipal Impact:
Municipalities Effect FY 22 $ FY 23 $
Various Municipalities Potential
Revenue
Loss
Minimal Minimal
Explanation
Sections 1 and 2 require the DMV to revoke an identity card due to 2021SB-00261-R000089-FN.DOCX Page 2 of 4
misrepresentation or deceit and impose a $175 restoration fee with a
requirement that $50 of each fee be deposited into the School Bus Seat
Belt account. To the extent that identity cards are revoked, and people
seek restoration, this section results in a minimal revenue gain to both
the Transportation Fund and to the School Bus Seat Belt account,
depending on the number of identity card restorations.
Section 4 imposes a $25 per application fee on entities that fail or
refuse to file certain applications electronically upon the request of the
DMV Commissioner and, to the extent that entities are non-compliant
and that the fee more than covers administrative costs, results in a
potential minimal revenue gain to the Transportation Fund.
Section 5 lengthens the period a beneficiary designated on a
registration certificate must transfer the vehicle after the death of the
owner, resulting in no fiscal impact because it is not expected to
change the number of vehicles registered in any municipality for
property tax purposes.
Sections 6 and 7 establish fees for the Save Our Lakes
commemorative license plate, remove the requirement that fees be
established through regulation, and make conforming technical
changes. A fee of $60 (or $80 for non-standard plates) will be charged
for the plate in addition to the registration fee. Of the total fee, $15
shall go towards the production of the new plate, and $45 (or $65 for
non-standard plates) shall go into the renamed "Connecticut Lakes,
Rivers and Ponds Preservation account," to be used by the Department
of Energy and Environmental Protection (DEEP) for the purposes
outlined in the bill. This account was established by PA 18-101 as the
"Connecticut Lakes and Ponds Preservation account."
Section 8 increases the registration fees for student transportation
vehicles designed as passenger vehicles, resulting in no fiscal impact
because this section is codifying current practice.
Section 9 modifies insurance requirements for certain commercial
passenger vehicles and has no fiscal impact to the state or 2021SB-00261-R000089-FN.DOCX Page 3 of 4
municipalities because it deals with commercial insurance
requirements.
Section 10 lengthens, from 30 to 60 days, the period during which a
person may operate a motor vehicle with a valid out-of-state license
following the establishment of Connecticut residency. As under
current law, violations of this section will be subject to fines of up to
$90 for a first offense and higher amounts for subsequent offenses. In
FY 20, 98 violations resulted in fine revenue of $14,929. To the extent
that fewer people are fined as a result of lengthening the out-of-state
license grace period, this section results in potential minimal revenue
loss to the Transportation Fund.
Section 15 requires the DMV to check the federal Drug and Alcohol
Clearinghouse before validating a commercial driver's license
beginning January 6, 2023, resulting in no fiscal impact because
clearinghouse costs will be funded through the relevant federal
agency.
Sections 16 and 17 modify the duration of commercial learner's
permits (CLPs) from 180 days, with an option to renew, to a single one-
year duration and increase the fee a commensurate amount, from $10
to $20. In FY 19 and FY 20, DMV issued an average of 5,672 CLPs, of
which 4,798 were for initial issuances and 874 were for renewals. To
the extent that this same proportion of applicants need only a 180-day
CLP but are now required to pay for a full-year duration, these
sections result in a revenue gain of approximately $48,000 annually.
Section 20 expands the option for seniors to obtain a one-year
registration to include combination registration on passenger vehicles.
The bill adjusts the fees proportionately; however, to the extent that
seniors decide to shorten their renewal periods, there may be a
maximum revenue loss of approximately $52,800 in FY 22 and $44,000 2021SB-00261-R000089-FN.DOCX Page 4 of 4
in FY 23
1
, with annual fees returning near current levels by FY 25.
This revenue loss would be dependent on the number of individuals
who choose the shorter registration period and it is not anticipated that
every individual would choose this option.
Section 33 lengthens, from 60 to 90 days, the period by which new
residents must register an out-of-state vehicle in Connecticut. As
under current law, violations of this section will be subject with up to a
$1,000 fine, with all collections remitted to the municipalities in which
the violations occur. In FY 20, 78 violations resulted in fine revenue of
$150. To the extent that fewer people are fined as a result of the
lengthening of the registration period, this section results in potential
minimal revenue loss to municipalities.
The other sections of the bill are technical, make conforming
changes, or otherwise do not have a fiscal impact to the state or
municipalities.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation, except as otherwise
described.
1
There are approximately 2,400 passenger combination vehicles currently registered
by seniors. These figures assume that population remains constant and that all
eligible seniors opt for the one-year renewal.