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 6594 NOTE PREPARED: Dec 28, 2023
BILL NUMBER: HB 1162 BILL AMENDED:
SUBJECT: Bureau of Motor Vehicles.
FIRST AUTHOR: Rep. Pressel BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
It makes a technical correction regarding the calculation of a county's allocation from the Motor Vehicle
Highway Account (MVHA).
It provides that a commercial driver's license (CDL) and a commercial learner's permit may be issued as a
mobile credential.
It amends the definition of "parole".
It allows an individual who is at least 18 years of age and holds a valid commercial driver's license to be
issued an intrastate hazardous materials endorsement.
It amends provisions regarding proof of a veteran's discharge from the armed forces or its reserves or the
National Guard.
It changes the number of commercial vehicles that must be owned for the State Department of Revenue to
issue a license plate for each commercial vehicle from 25 to five.
It amends provisions requiring the Bureau of Motor Vehicles (BMV) to provide notice to allow the Bureau
to provide notice electronically when the individual has indicated a preference for receiving electronic
notices from the Bureau.
HB 1162 1 It provides that a driver's license or identification card expires upon the BMV receiving notice of the death
of the holder.
It allows an individual to electronically apply for the individual's driver's license or learner's permit to be
converted into an identification card.
Effective Date: July 1, 2024; January 1, 2025.
Explanation of State Expenditures: Electronic Notices and Services - The bill allows individuals to receive
electronic notices from the BMV. To the extent individuals opt to receive electronic notifications instead of
physical notifications in the mail, BMV Commission Fund expenditures would decrease. Total decreases in
BMV expenditures are indeterminable; however, the agency expends a total of $106,000 each year on
notifications that could be impacted by the bill.
Allowing individuals to convert a driver’s or learner’s permit to ID card through electronic service could
decrease license branch workload. Decreases in workload are expected to be minimal.
Fleet Vehicle Registration - The bill would allow the Department of Revenue (DOR) to register fleet vehicles
for individuals who wish to register five or more vehicles at a time instead of a minimum of 25 vehicles. This
change could increase DOR workload to process additional fleet vehicle registrations. The increase in
workload is expected to be accomplished within existing resource and funding levels.
Parole - The bill could increase the workload of the Bureau of Motor Vehicles (BMV) to adopt rules
concerning issuing credentials, titles, and registrations to additional paroles in the state. Depending on the
final rules adopted by the agency, the bill would also increase the workload of the BMV to process additional
credential, title, and registration requests. Increases in workload are expected to be accomplished within
existing resource and funding levels.
Additional Information - The following provisions of the bill are expected to have no fiscal impact:
(1) Expanding eligibility for mobile credentials to commercial driver’s licenses.
(2) Allowing electronic records to verify veteran status.
(3) Adding language specifying an employee of the BMV or BMV Commission conducting a skills
examination may accompany an individual logging practice driving time.
(4) Specifying BMV-issued credentials expire upon the agency receiving notice of the death of the holder.
(5) Specifying minimum age requirements for hazardous material endorsements on CDLs.
Explanation of State Revenues: Summary - Expanding the definition of parole would increase the number
of non-citizens in the state who can petition the BMV for credentials, registrations, and certificates of title.
As a result, state revenue from these fees could increase. The bill’s impact on total state revenue collections
from fees is currently indeterminable.
The bill makes a technical correction to the valid period of off-road vehicle registrations, which codifies
existing practice. The bill also specifies the BMV can make changes to the expiration period of these
registrations to align these vehicles with the agency’s current schedule of expiration dates. These changes
are expected to have no fiscal impact.
Additional Information - Parole - The following table shows the fees collected for each transaction type as
HB 1162 2 well as the distribution to each state fund.
Fund Operator’s
License
Revenue
Learner’s
Permit
Revenue
ID Card
Revenue
Title Fee
Revenue
Registration
Fee Revenue
Motor Vehicle Highway Account $4.50 $0.25 $2.75 $3.25 –*
Crossroads 2000 Fund $2.00 $2.00 -- $5.00 $3.00
BMV Technology Fund $0.50 $0.50 $0.50 $0.50 $0.50
Integrated Public Safety $1.25 $1.25 $1.25 $1.25 $1.25
BMV Commission Fund $9.25 $5.00 $7.00 $5.00 $3.10
State Construction Fund -- -- -- -- $0.25
Spinal Cord & Brain Injury Fund -- -- -- -- $0.30
Highway Road & Street Account -- -- -- -- $2.90
Total $17.50 $9.00 $11.50 $15.00 $11.30*
*Registration fees vary based on the type of vehicle registered in the state. The distribution of registration fee revenue is specified in
statute with the exception of the distribution to the Motor Vehicle Highway Account (MVHA). The distribution to the MVHA is
codified as the difference between the total vehicle registration fee minus the $11.30 in specified distributions to the Crossroads 2000
Fund, BMV Technology Fund, Integrated Public Safety Communication Fund, BMV Commission Fund, State Construction Fund
(Indiana State Police), Spinal Cord and Brain Injury Fund, and Highway Road and Street Account.
Revenue increases to the Motor Vehicle Highway Account and the Highway Road and Street Account have
distributions to the State Highway Fund (INDOT) and local units of government. The State Highway Fund
receives 63% and 62% of revenue deposited in the MVHA and the Highway Road and Street Account,
respectively. Local units of government receive 37% and 38% of revenue from the MVHA and Highway
Road and Street Account, respectively.
Based on reported numbers of parolees in the United States compared to the state’s population as a percent
of the nation’s, an estimated 37,500 parolees could reside in Indiana. Of this amount, an estimated 7.5%
parolees would come from Ukraine and would therefore currently be eligible for credentials, vehicle titling
and registration (3,100). An estimated additional 34,400 parolees could be eligible for BMV-issued
credentials as well as vehicle titling and registrations as a result of the bill.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: BMV; DOR.
Local Agencies Affected:
Information Sources: https://www.migrationpolicy.org/article/twilight-immigration-status; Cody
Eckert, BMV.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1162 3