OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-261
AN ACT CONCERNING RECOMMENDATIONS BY THE
DEPARTMENT OF MOTOR VEHICLES.
AMENDMENT
LCO No.: 9956
File Copy No.: 89
Senate Calendar No.: 96
Primary Analyst: PM 6/3/21
Contributing Analyst(s): ()
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Department of Motor Vehicles TF - Revenue
Gain/ Loss
See Below See Below
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
Resources of the Special
Transportation Fund
TF - Potential
Revenue Loss
Minimal Minimal
State Revenues GF&TF -
Potential
Revenue Gain
Minimal Minimal
Department of Motor Vehicles TF -
Cost/Revenue
Gain
See Below See Below
CT Airport Authority Bradley
International
Airport Fund -
Revenue Gain
See Below See Below 2021SB-00261-R00LCO09956-FNA.DOCX Page 2 of 7
Department of Revenue
Services
Various -
Potential
Revenue
Impact
Indeterminate Indeterminate
Note: TF=Transportation Fund; GF&TF=General Fund & Transportation Fund; Various=Various
Municipal Impact:
Municipalities Effect FY 22 $ FY 23 $
Various Municipalities Potential
Revenue
Loss/ Gain
See Below See Below
Explanation
The amendment strikes the underlying bill and its associated fiscal
impact. Instead, the amendment provides for the following:
Sections 1 and 2 require the Department of Motor Vehicles (DMV) to
revoke an identity card due to 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 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
potential minimal revenue gain to the Transportation Fund.
Sections 5 and 6 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 2021SB-00261-R00LCO09956-FNA.DOCX Page 3 of 7
and Ponds Preservation account," to be used by the Department of
Energy and Environmental Protection for the purposes outlined in the
bill. This account was established by PA 18-101 as the "Connecticut
Lakes and Ponds Preservation account."
Section 7 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 8 modifies insurance requirements for certain commercial
passenger vehicles and has no fiscal impact to the state or municipalities
because it deals with commercial insurance requirements.
Section 9 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 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 14 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 15 and 16 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
revenue gain of approximately $48,000 annually. 2021SB-00261-R00LCO09956-FNA.DOCX Page 4 of 7
Section 18 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
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 30 lengthens, from 60 to 90 days, the period by which new
residents must register an out-of-state vehicle in Connecticut, lowers the
fine for violations from $1,000 to $250, and provides an exemption from
the fine for register prior to the imposition of the fine. In FY 20, 78
violations resulted in fine revenue of $150, with all collections remitted
to the municipalities in which the violations occur. To the extent that
fewer people are fined, and at a reduced level, this section results in
potential minimal revenue loss to municipalities.
Section 32 allows municipalities to establish a fine of up to $250 on
owners of motor vehicles that are subject to local property tax but not
registered with DMV, resulting in potential revenue gain to
municipalities.
Section 36 removes the requirement that children with disabilities
must be under age 18 for parents or guardians to receive accessible
placards. This section results in a potential minimal revenue gain to
DMV to the extent that more temporary placards are requested due to
the expanded eligibility. In FY 20, collections from temporary placards
were $38,850. Under current law, and unchanged by the bill, there is no
fee for a permanent placard.
Section 37 creates a new infraction for failing to yield the right-of-
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. 2021SB-00261-R00LCO09956-FNA.DOCX Page 5 of 7
way to a bus traveling in the same direction when the bus appropriately
signals to reenter the flow of traffic. To the extent that offenders are
fined, this section results in potential minimal revenue.
Section 40 lowers, from $25 to $15, the fee for replacing mutilated or
illegible veteran plates. DMV systems do not track the number of
mutilated veteran plates that are replaced each year. However, in FY 20
DMV replaced 11,414 mutilated plates of any kind, which represent
approximately 0.4% of total active plates.
2
Assuming a similar
percentage of mutilated plate replacements applies to the 17,770 active
veteran plates, this section results in an estimated revenue loss of less
than $1,000 annually.
Section 43 requires DMV to report on compliance with the laws
regarding the sale and repair of fire apparatus and does not result in a
fiscal impact because this is within the department's current expertise.
Section 44 requires DMV to verify with the Federal Motor Carrier
Safety Administration (FMCSA) that commercial driver's license
applicants have undergone federally-required training. This results in
no fiscal impact because the requisite verification will be provided by
FMCSA at no cost to DMV.
Section 45 expands the authority for DMV and the Department of
Administrative services to share organ and tissue donor information to
include instruction permit holders and has no fiscal impact.
Section 47 lowers the Drive Only License three-year renewal fee from
$72 to $36, which is commensurate with the per-year fee amount for
standard license renewals. This is anticipated to result in STF revenue
loss of approximately $222,000 in both FY 22 and FY 23, dependent on
the number of renewals.
3
Section 49 requires DMV to issue special plates indicating service
during a “period of war” to veterans who received campaign medals.
2
As of April 1, 2021, according to data provided by DMV.
3
Estimate reflects 50% of FY 20 Drive Only License renewal fee collections. 2021SB-00261-R00LCO09956-FNA.DOCX Page 6 of 7
This section requires DMV to charge a fee that covers the entire cost of
making such plates, resulting in both costs and revenue for the STF of
an equal amount.
Section 50 permits DMV to waive license and identity card renewal
fees for veterans who apply while attending a one-day event hosted by
the Department of Veteran Affairs (DVA). There are an estimated
165,000 veterans in the state. It is not known how many veterans have
licenses or identity cards, how many would renew at these DVA events,
or to what extent DMV would exercise this authority.
Two scenarios will be utilized to demonstrate a range of potential
revenue loss. Scenario A assumes that 10% of veterans participate in the
DVA event and have their renewal fee waived. This scenario would
result in annual revenue loss of $198,000. Scenario B assumes that 2%
of veterans have their fee waived and would result in annual revenue
loss of $39,600. Both scenarios assume that renewals would be spread
out equally over the current eight-year validity period and would be
otherwise subject to the $96 renewal fee for licenses.
Section 64 allows the Connecticut Airport Authority to collect fees
from peer-to-peer (P2P) car sharing programs operating at Bradley
International Airport and results in a potential revenue gain to the
authority. The level of revenue gain is dependent on 1) the number of
programs that will operate at Bradley and 2) the terms of the
agreements.
Section 65 requires the Department of Revenue Services to issue
guidance on the applicability of sales and use tax to P2P car sharing
services. The revenue impact is indeterminate because current law is
unclear on the tax treatment of P2P services. Traditional rental car
services are taxed at 9.35%; however, in practice certain P2P companies
collect the 6.35% general sales tax rate.
The other sections of the amendment are technical, make conforming
changes, or otherwise do not have a fiscal impact to the state or
municipalities. 2021SB-00261-R00LCO09956-FNA.DOCX Page 7 of 7
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation, the number of violations, or
as otherwise described.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely
for the purposes of information, summarization and explanation and does not represent the intent of the General
Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of
informational sources, including the analyst’s professional knowledge. Whenever applicable, agency data is
consulted as part of the analysis, however final products do not necessarily reflect an assessment from any
specific department.