LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7095 NOTE PREPARED: Feb 15, 2022
BILL NUMBER: HB 1167 BILL AMENDED: Feb 15, 2022
SUBJECT: Bureau of Motor Vehicles.
FIRST AUTHOR: Rep. Pressel BILL STATUS: CR Adopted - 2
nd
House
FIRST SPONSOR: Sen. Crider
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill has the following provisions:
(1) Allows an advanced practice registered nurse (APRN) to sign certain health documents concerning
driving privileges.
(2) Requires the Bureau of Motor Vehicles (BMV) to establish and maintain an audit working group.
(3) Provides that meetings of the audit working group are not subject to open door laws.
(4) Provides that the BMV, rather than the State Board of Accounts, is required to conduct an audit of each
license branch.
(5) Amends certain dates regarding the statewide electronic lien and title system (system).
(6) Removes system provisions concerning qualified service provider payments, participation notification,
and annual fees.
(7) Provides that the Bureau and participating qualified service providers or lienholders may charge certain
system fees.
(8) Amends dates concerning the voluntary or required use of the system.
(9) Requires the BMV to distribute at least one time each month the fees collected and deposited from certain
special group recognition license plates.
(10) Repeals the law providing for the Earlham College trust license plate.
(11) Provides that interference with highway traffic is considered unreasonable if the interference occurs for
more than 10 consecutive minutes except for: (A) machinery or equipment used in highway construction
or maintenance by the Indiana Department of Transportation, counties, or municipalities; and (B) firefighting
apparatus owned or operated by a political subdivision or a volunteer fire department.
(12) Provides that a public agency or towing service that obtains the name and address of the owner of or
lienholder on a vehicle shall, not later than three business days after obtaining the name and address, notify
HB 1167 1 the owner of the vehicle and any lienholder on the vehicle, as indicated by the certificate of title or as
discovered by a search of the National Motor Vehicle Title Information System or an equivalent and
commonly available data base.
(13) Requires the BMV to process an electronic application for a certificate of authority not more than five
business days after the submission of the application if the application meets certain requirements.
(14) Provides that an individual is not required to be a citizen of the United States as shown in the records
of the BMV to apply for a replacement driver's license or learner's permit by electronic service.
(15) Provides that a suspension for failure to satisfy a judgment imposed before December 31, 2021
terminates on December 31, 2024.
(16) Removes the requirement that the BMV collect an administrative penalty if a dealer fails to apply for
a certificate of title for a motor vehicle that is purchased or acquired in a state that does not have a certificate
of title law.
(17) Provides that a manufacturer or distributor may not sell or offer to sell, directly or indirectly, a new
motor vehicle to the general public in Indiana except through a new motor vehicle dealer holding a franchise
for the line make covering the new motor vehicle.
(18) Provides that the sales of new motor vehicles by a manufacturer or franchisor to the federal government,
a charitable organization, an employee of the manufacturer or distributor, or a manufacturer or distributor
under certain conditions.
(19) Makes technical corrections.
Effective Date: (Amended) Upon passage; July 1, 2022.
Explanation of State Expenditures: The bill removes statutory requirements for the SBOA to perform
audits of BMV license branches and transfers this responsibility to the BMV. This change codifies existing
practice and is expected to have no fiscal impact.
The bill will decrease BMV workload to the extent non-citizens request online credential renewals for
operator license and learner’s permits in lieu of making these requests at BMV license branches.
The bill will also codifies existing practice of distributing special group license plate revenue monthly. The
lone exception being the Native American Trust license plate revenue, which is currently distributed
annually. Changes in special group fee distributions are expected to have minimal impact on BMV workload.
The bill expands the list of prohibited actions of a motor vehicle manufacturer or distributor. To the extent
a manufacturer or distributor violates these prohibitions, the Secretary of State could receive additional
complaints where an investigation would be performed. Increases in workload could be offset with the
collection of civil penalties levied against individuals who violate the provisions of the bill.
The bill requires the BMV to process a certificate of authority application for scrap motor vehicles within
5 days of the request being submitted electronically. This requirement will increase BMV workload by
specifying time frames in which the action must be completed.
Explanation of State Revenues: Summary - This bill could have a minor impact on state revenue received
from (1) BMV administrative fees and (2) Class C and A infraction penalties. Additionally, the bill could
increase revenue to the Dealer Enforcement Account from civil penalties collected from automobile
manufacturers who violate the prohibitions in the bill.
(Revised) The changes in the bill concerning electronic lien title (ELT) systems are not expected to have an
HB 1167 2 impact on BMV revenue received from qualified service providers.
Additional Information -
(Revised) Electronic Lien Title System - Under current law, if the BMV elects to develop an ELT system,
the agency can collect each initial applicant’s proportionate share of the expenses BMV incurred in
conjunction with creating an ELT system as well as an annual maximum $3,000 fee for operation and
maintenance of the system. As proposed, in the event the BMV develops the ELT system, only qualified
service providers interested in using the system would be subject to paying their proportionate share for the
creation of the ELT system as well as ongoing operation and maintenance of the system. The bill removes
specified amounts collected from qualified service providers currently in statute.
The BMV reports they will develop the ELT system in-house and have opted to collect a per-transaction fee
in lieu of a fee based on the upfront cost to access the system. The cost to develop the ELT system was
reported to be approximately $6.5 M, and the BMV also estimates revenue from ELT transaction fees to be
approximately $1.3 M per year from approximately 5 or 6 interested parties. Revenue received from
transaction fees would be deposited in the BMV Commission Fund.
BMV Administrative Fees - The bill repeals the Earlham College special group license plate. To the extent
individuals who currently hold this license plate select another license plate where BMV administrative fees
are not collected, state revenue will decrease. The bill’s impact on state revenue is expected to be small.
Revenue received from BMV administrative fees collected on special group license plates distributed as
follows:
Distribution Fee
BMV Technology Fund $0.50
Crossroads 2000 Fund $1.00
Integrated Public Safety Communication Fund $1.25
BMV Commission Fund $5.00
Motor Vehicle Highway Account $7.75
Total $15.00
Changes in revenue to the MVHA will impact distributions to the State Highway Fund (INDOT). The State
Highway Fund will receive 62% of revenue deposited in the MVHA.
Highway Interference: The bill allows certain types of machinery a ten minute window to avoid a highway
interference violation. As a result, this bill could reduce the number of Class C infractions in the state. The
maximum judgment for a Class C infraction is $500, which would have been deposited in the state General
Fund. However, any revenue reduction is likely to be small.
Manufacturer Sales: To the extent the Secretary of State discovers individuals have violated the prohibitions
HB 1167 3 in the bill, revenue to the Dealer Enforcement Account from civil penalties could increase. Increases are
indeterminable, but the Secretary of State can levy a maximum civil penalty of $10,000 per violation of the
bill’s provisions.
Notification of Lienholders: Currently, if a mechanic lienholder wishes to sell a vehicle at auction, they are
only required to notify the vehicle’s owner. As proposed, notifications would need to also be sent to all
persons who hold a lien of record with the vehicle. To the extent these notifications are not sent, the bill
could increase the number of people subject to a Class A infraction penalty in the state. The maximum
judgment for a Class A infraction is $10,000, which would be deposited in the state General Fund. However,
any additional revenue is likely to be small.
Explanation of Local Expenditures:
Explanation of Local Revenues: To the extent this bill impacts revenue deposited in the MVHA from
special group license plate administrative fees, the bill will impact revenue local units of government revenue
through the MVHA funding formula. The bill’s impact on local MVHA revenue is indeterminable but
expected to be small.
Penalty Provision: The bill will have an indeterminable affect on the number of court actions in the state.
The bill’s impact on local revenue from court fees is expected to be small, if any.
State Agencies Affected: BMV; Secretary of State.
Local Agencies Affected: Local agencies as employers; recipients of MVHA funding, trial courts, local law
enforcement agencies.
Information Sources: Abbi Raben, BMV; FSSA, Provider Referance Module: Medical Practitioner
Reimbursement.
Fiscal Analyst: Bill Brumbach, 317-232-9559; Adam White, 234-1360.
HB 1167 4