SESSION OF 2025 SUPPLEMENTAL NOTE ON SENATE BILL NO. 119 As Recommended by Senate Committee on Transportation Brief* SB 119 would increase the portion of two vehicle-related fees to be retained by the entity that performs the service. As authorized under continuing law, that entity could be a county treasurer, the Division of Vehicles of the Kansas Department of Revenue (KDOR), or a contractor of the Division or county treasurer. The bill would direct $5.75, increased from $0.75, of each vehicle registration fee and $3.50, increased from $2.00, from each fee accompanying an application for a certificate of title to a fund to be used by the county treasurer, Division, or contractor to pay expenses related to vehicle transactions. Background The bill was introduced by the Senate Committee on Transportation at the request of a representative of the Kansas County Treasurers Association. Senate Committee on Transportation In the Senate Committee hearing, the treasurers of Riley, Saline, Sedgwick, and Shawnee counties and a representative of the Kansas Association of Counties provided proponent testimony. The conferees stated county treasurers have for more than a decade performed motor vehicle functions formerly performed by the Division of ____________________ *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at https://klrd.gov/ Vehicles without any changes to the distribution of fees. The conferees further stated costs have increased, many counties subsidize the motor vehicle operations of the county treasurers from county general funds, and shortfalls lead to reductions in customer service. Written-only proponent testimony was provided by the Chairman of the Sedgwick County Board of County Commissioners, a representative of the Kansas County Commissioners Association, the Saline County treasurer- elect, and the county treasurers of Crawford, Nemaha, Trego, and Wallace counties. Neutral testimony was provided by representatives of the Kansas Department of Transportation (KDOT) and the Kansas Contractors Association, who noted the bill would reduce revenues to the State Highway Fund (SHF) by approximately $16 million annually. No other testimony was provided. [Note: The amounts deposited to the funds used to pay vehicle transaction expenses have not changed since 1978 for vehicle registration fees and 1981 for certificate of title fees.] Fiscal Information According to the fiscal note prepared by the Division of the Budget, KDOR states enactment of the bill would result in a total decrease to the SHF of $16.2 million based on 2024 totals for applications for vehicle registration and certificates of title. KDOR estimated its administrative costs would increase by approximately $475 for workload related to ensure proper distribution of the fees and $2,400 for changes to fees in the titles and registration system. KDOT indicates enactment of the bill could require the agency to reevaluate expenditures under the Eisenhower Legacy Transportation Program because of the long-term fiscal effect of the 2- 119 reduction in revenue to the SHF. Any fiscal effect associated with enactment of the bill is not reflected in The FY 2026 Governor’s Budget Report. The Kansas Association of Counties notes enactment of the bill would have a positive fiscal effect on county operations by helping to cover the costs of the motor vehicle program. County treasurer; vehicle title fees; vehicle registration 3- 119