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: Feb 22, 2024
BILL NUMBER: HB 1162 BILL AMENDED: Feb 22, 2024
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:
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 repeals language allowing the Bureau of Motor Vehicles (BMV) to issue a driver's license or identification
card to a person granted parole.
It adds a wearable device that blocks, in whole or in part, the field of vision of the person wearing the device
to the definition of a "telecommunications device". It also clarifies that only handheld telecommunications
devices may be used in conjunction with hands free or voice operated technology while operating a motor
vehicle.
It requires the BMV to state on each of its forms the law or rule making the form necessary.
It prohibits the BMV from requiring a person to appear in person for the renewal of a registration for a
collector vehicle, a historic vehicle license plate, or an authentic license plate from the model year of a
collector vehicle.
It removes the requirement that for a certificate of title maintained electronically by the bureau that when the
HB 1162 1 bureau sends notification that the notification be electronic.
It allows an individual who is at least 18 years of age and holds a valid commercial driver's license to be
issued a 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 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.
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.
The bill also deletes provisions allowing the BMV to suspend or revoke the registration of an individual
convicted of certain crimes.
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.
Registration Suspensions - The bill would remove the requirement that the BMV suspend registrations for
vehicles of owners who are convicted of certain crimes. Decreases in BMV workload are expected to be
minimal.
(Revised) License Branch Impact - This bill would decrease the workload of the BMV to process renewal
collector vehicle applications in person at license branches. Decreases in workload are expected to be
minimal. There are approximately 17,150 collector vehicles registered in the state during CY 2023.
HB 1162 2 (Revised) State Form Revision - The bill would require the BMV to revise state forms that do not contain
either a statutory or administrative rule justification for the form. The bill would also require the BMV to
revise state form 56166 (1-17) to remove a reference that the form must be completed for each subsequent
registration renewal. Increases in BMV workload are expected to be accomplished within existing resource
and funding levels.
(Revised) Title Notifications - Current law only allows the BMV to notify title holders through electronic
means concerning an electronic title maintained by the Bureau. The bill would expand communication
options to allow a notification to be sent through physical mail as well. To the extent the BMV elects to
utilize physical mail to notify a vehicle owner concerning an electronic title, BMV Commission Fund
expenditures would increase, however any increases are expected to be minimal.
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.
Explanation of State Revenues: (Revised) Summary - The bill expands devices that are prohibited from use
during the operation of a motor vehicle. As a result, General Fund revenue from Class C infraction violations
in the state could increase, however increases in revenue are expected to be small.
Additional Information - 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.
(Revised) Telecommunication Devices Prohibitions: During FY 2023, a total of approximately 3,200
infraction convictions for use of a telecommunications device during the operation of a motor vehicle
occurred in the state. The maximum judgment for a Class C infraction is $500, which would be deposited
in the state General Fund. The total court fee revenue per case would range between $85.50 and $103. The
amount of court fees deposited will vary depending on whether the case is filed in a court of record or a
municipal court. The following linked document describes the fees and distribution of the revenue: Court
fees imposed in criminal, juvenile, and civil violation cases.
Explanation of Local Expenditures:
Explanation of Local Revenues: (Revised) Telecommunication Devices Prohibitions: If additional court
actions occur and a judgement is entered, more revenue will be collected by certain local units. If the case
is filed in a court of record, the county will receive $33.90 and qualifying municipalities will receive a share
of $2.10. If the case is filed in a municipal court, the county receives $20, and the municipality will receive
$33.50. The following linked document describes the fees and distribution of the revenue: Court fees
imposed in criminal, juvenile, and civil violation cases.
State Agencies Affected: BMV; DOR.
HB 1162 3 Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources: Cody Eckert, BMV. Indiana Supreme Court, Indiana Trial Court Fee Manual
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1162 4