House Transportation reviews fiscal note for S326; towing fee hike would raise DMV costs about $32,000 a year

The House Transportation Committee on March 31 reviewed the fiscal note for S326, a bill that makes several policy changes at the Department of Motor Vehicles including expanded free identification for detained individuals, higher civil penalties and new or increased fees. Fiscal analyst Logan Mover of the Joint Fiscal Office told members the overall revenue impact is small but that one provision would increase DMV expenses by roughly $32,000 a year.

Mover said sections 1–5 expand eligibility for free identification to additional detained or sentenced individuals and extend free benefits to replacement operator licenses and learner permits. "In 2025, there were 465 free non‑driver IDs given out," he said, and the Department of Corrections estimates about 46 additional detained people would newly qualify. The fiscal office noted non‑driver IDs cost $29 and replacement operator licenses and learner permits are $25, so the added volume would have a minimal net effect on revenue.

The committee focused attention on Section 8, which increases the maximum towing fee the state can be charged for removing an abandoned vehicle from public property from $125 to $250. "This section would allow towing services to charge up to $250... It would increase the potential expenses by $32,000 a year," Mover said. Committee members asked practical questions about where vehicles are stored after tow, whether towing firms bid on state tows, and whether storage or recovery charges could be billed differently; Mover said the department could provide more detail on operational practices.

Mover also described higher civil penalties in the bill: for violations in Smuggler's Notch the penalty is raised from $1,000 to $10,000 and from $2,000 to $20,000 when the violation substantially impedes traffic. He said the fiscal office generally does not assume revenue from civil penalties because they presume legal compliance, but acknowledged some violations may continue.

Section 17 would raise civil penalties for unregistered snowmobiles from $135 to $450 for a first offense and to $500 for second or subsequent offenses within three years, Mover said. Committee members pressed whether a missing VAST sticker or similar condition would be treated as an ‘‘unregistered’’ machine; members said the department should clarify how the statute and existing registration stickers interact.

Other provisions described as having negligible fiscal effect include a $40 annual fee for one‑year nondomicile commercial driver licenses (16 issued in 2025) and a $26 annual registration fee for a limited‑use specialty‑vehicle category that would be capped at 12 statewide.

Members asked where penalties and fees are deposited. Mover said many of the fees flow into the Transportation Fund (referred to in testimony as the "T fund") but that fee accounting can be complex and that he would provide a breakdown of fund destinations. Lawmakers also raised proportionality and constitutional questions about large fines; Mover and members suggested agency counsel or statute would govern limits and recommended departmental follow‑up.

No formal vote was recorded on S326 during the session. Committee members asked staff to invite DMV officials and other department staff back to explain operational details on towing, storage and fee allocation, and to bring updated revenue reports and vehicle‑dealer sales data at a future meeting.