LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7749 NOTE PREPARED: Jan 13, 2025 BILL NUMBER: HB 1599 BILL AMENDED: SUBJECT: Motor Vehicle Registration. FIRST AUTHOR: Rep. Snow BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: This bill provides that a person that acquires a vehicle may operate the vehicle on a highway with an interim plate and without registering for 90 days if the vehicle is to be titled or registered in another state. It allows an interim plate to authorize a person to operate a motor vehicle until 90 days after the date of sale or lease or until the date on which a regular license plate is issued by another state, whichever comes first. Effective Date: July 1, 2025. Explanation of State Expenditures: The bill could increase the workload of the Secretary of State to issue additional interim license plates for electric vehicles. Increases in workload are within the routine administrative function of the agency and would be financed with the collection of interim license plate fees. Explanation of State Revenues: Summary - The bill could decrease Class C and Class A infraction violations. Any decrease in state revenue from civil judgments is expected to be minor. The bill could also increase state revenue received from interim license plate requests made with the Secretary of State. Each interim license plate has a $3 fee that is split between the Crossroads 2000 Fund, the Dealer Compliance Verification Fund, and the Motor Vehicle Highway Account (MVHA). Increases in state revenue from interim license plate fees is expected to be minimal. Additional Information - Penalty Provisions: The bill also creates a new class of temporary license plates that have a 90 day valid period. Currently, vehicles that are sold or leased are issued temporary license plates that expire in 45 days. Additionally, other provisions of law require vehicles to be registered within 45 days of lease or purchase. These two provisions could (1) increase requests for 90-day temporary license plates created by the bill and (2) decrease possible Class C and Class A infraction violations for failure to register a vehicle. The bill’s potential impact on state revenue from these changes, however, is expected to be minimal. HB 1599 1 For decreases in court cases, revenue to both the General Fund from judgments would decrease. The maximum judgment for a Class A infraction is $10,000, and for a Class C infraction is $500. The total court fee revenue per case would range between $85.50 and $103.Court fee amounts 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. Interim License Plate Fees: Increases in requests for interim license plates would increase revenue from the $3 fee. This fee is split between the Crossroads 200 Fund (40%), the Secretary of State’s Dealer Compliance Verification Fund (49%), and the Motor Vehicle Highway Account (11%). The Motor Vehicle Highway Account has a suballocation of 62% to the State Highway Fund (Indiana Department of Transportation) and the remaining 38% is distributed to local units of government. Explanation of Local Expenditures: Explanation of Local Revenues: Penalty Provisions: If there is a reduction in court actions occur where a judgement would have been entered, less revenue will be collected by certain local units. If the case is filed in a court of record, the county would have received $33.90 and qualifying municipalities would have received a share of $2.10. If the case is filed in a municipal court, the county would have received $20, and the municipality would have received $33.50. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. Interim License Plate Fees: The bill could increase revenue local units of government receive from the Motor Vehicle Highway Account, however any increases in revenue are expected to be small. State Agencies Affected: Secretary of State, Indiana Department of Transportation. Local Agencies Affected: Courts, local recipients of MVHA funds. Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual. Fiscal Analyst: Bill Brumbach, 317-232-9559. HB 1599 2