Committee backs bill to stop hybrid/electric registration fees for veterans, allow refunds

The Senate Transportation, Technology & Legislative Affairs Committee voted to advance Senate Bill 246, which clarifies whether additional registration fees on hybrid and electric vehicles apply to veterans who receive free specialty license plates and would authorize retroactive refunds.

Senator Johnson presented the measure; Paul Gehring of the Department of Finance and Administration told the committee that after Act 416 took effect in October 2019, DFA initially programmed fees for hybrids and electrics but later concluded legislative history intended free ongoing registration for veterans with specialty plates. Gehring said DFA administratively ceased collection and wants the statute amended to make the waiver and refund authority explicit: "So if anybody that was, that had this fee collected from them, we want them to be able to request a refund of that fee, and also on a going forward basis, we would not have to, include that fee, when that person comes in and registers."

Gehring provided vehicle counts referenced in the hearing: about 2,646 hybrid vehicles and roughly 100 electric vehicles registered to veterans and disabled-veteran plate holders. Senator Eads asked whether the refunds and ongoing exemption would affect highway funding; Eads noted the impact appeared to be "a little over a quarter of a million dollars a year." Gehring said ongoing collections for hybrid fees were in the low millions and that any refunds would reduce future collections. Committee members said DFA covers shortfalls from general revenue when statutorily set fee revenue does not materialize. With no public opposition listed, the committee voted to report the bill do-pass by voice vote.

The committee cleared the bill and moved on to the next item.