Committee amends motor vehicle technology fee bill to direct revenue into existing motor vehicle fund

The Joint Committee on Appropriations voted to amend SB 45 and advance it with a due-pass recommendation after members approved an amendment to direct the proposed $2-per-transaction motor vehicle technology fee into the existing motor vehicle fund rather than creating a new, separate technology fund.

Representative Moore, sponsor of the amendment, explained the change: the amendment "took out where they created a state treasury and motor vehicle technology fund, and it moves, it leaves it at where it goes into the motor vehicle fund."

Mike Howdieshell, cabinet secretary of the South Dakota Department of Revenue, told the committee the department proposed the amendment after further review and discussion with the sponsor. Howdieshell said the motor vehicle fund is used for Motor Vehicle Division operations and that "the purpose of the fee is to ensure that we have enough revenue in that fund to be able to provide for the ongoing support and maintenance of our new motor vehicle system 605 Drive, which went live, just a couple of weeks ago." He also referenced another bill, SB 131, that would require e-title implementation, and said the fund needs sufficient revenue to support that work.

Senator Vilhauer asked whether directing the fee into the broader motor vehicle fund could allow the money to be "blurred and buried" among other uses; Representative Moore and department testimony indicated the fund would still be used for motor vehicle operations and maintenance.

Representative Moore moved a due-pass recommendation on SB 45 B. On a recorded roll call, the committee approved the amended bill 15 yeas and 3 nays. The committee indicated the bill will be sent to the floor as amended with the due-pass recommendation.