Committee hears bill to require insurance and second‑vehicle proof for new collector plates; DOL estimates systems changes and mailing costs

The House Transportation Committee held a public hearing on Substitute Senate Bill 5127, a companion to House Bill 1194, which would change eligibility and insurance rules for collector vehicle and horseless carriage plates.

Sandy Myers, committee staff, summarized the bill: under current law collector and horseless‑carriage plates are exempt from the state’s motor‑vehicle liability insurance requirement. SB 5127 would repeal that exemption; after Jan. 15, 2026 applicants for a collector vehicle plate must provide proof of a collector‑vehicle insurance policy with statutory minimum liability limits. The bill would also require new applicants to show proof of ownership and current registration of a second vehicle used for daily driving, commuting, or work purposes; the Department of Licensing (DOL) may grant exceptions if the applicant demonstrates alternative regular transportation.

Jill Johnson, Legislative and Special Projects Manager at DOL, told the committee the agency supports the bill’s intent to reduce program misuse and ensure the collector‑plate exemption is limited to vehicles infrequently used for special purposes. Johnson said DOL estimates the department would incur a one‑time drive‑system change cost of about $39,500 (fiscal year 2026) and roughly $182,500 in printing and mailing notifications to current plate holders; the net impact on cash receipts is indeterminate but expected to be positive.

Committee members asked about retroactivity and enforcement. Johnson said the new insurance requirement is applied to existing collector‑plate holders, while the second‑vehicle registration requirement takes effect Jan. 15, 2026 and would not apply retroactively. She said DOL currently has “a little under 300,000 vehicle owners out there with collector vehicle plates,” but that the agency cannot confidently verify how many of those vehicles are on the road because applicants often apply once and do not reappear in DOL records.

Senator John Lubbock, who described the bill as a response to program abuse reported by DOL, said the intent is to better align the program with its original purpose and to curb misuse. The committee did not adopt amendments or take a final vote during the hearing; the public testimony portion concluded after agency representatives and several legislators questioned technical and retroactivity details.

Why this matters: SB 5127 would change longstanding exemptions for certain antique and collector‑status vehicles, shifting insurance responsibilities back onto owners and adding a new proof‑of‑daily‑vehicle requirement for new applicants. DOL’s system and notification costs and the large number of existing plate holders prompted committee questions about enforcement, retroactivity, and costs to both the department and vehicle owners.