Relates to increasing the retention percentage for certain motor vehicle service fees

Section 2 provides the effective date.

Existing law

Pursuant to § 205(1) of the Vehicle and Traffic Law, the clerk of each county, except the counties of Rockland, Albany, Westchester, Suffolk, Nassau, Onondaga, Bronx, Kings, Queens, Richmond and New York, shall act as the agent of the commissioner in the registration of motor vehicles, motorcycles, and when directed by the commissioner snowmobiles, vessels and all terrain vehicles, and in the issuance of certificates thereof and number plates therefor, in receiving documents relating to certificates of title, and unless and until the commissioner shall otherwise direct in any county, in the issuance of non-driver identification cards and drivers' licenses upon the certification of inspectors, and motor vehicle enforcement transactions. Each such agent shall remit to the commissioner all fees collected by him for registrations, licenses, identification cards and transfers or relating to certificates of title, except as hereinafter provided, together with a complete record of such registrations, identification cards and licenses issued and transfers made, in accordance with the procedure prescribed by the commissioner, and with all documents relating to certificates of title received and such record thereof as the commissioner prescribes.

Pursuant to § 205(3) of the Vehicle and Traffic Law such county clerks shall retain 12.7% of the fees collected for any motor vehicle related service described in subdivision one of this section. The retention percentage shall be 30% of the $30 fee established for non-driver identification cards.

Justification

Fifty-one of the sixty-two counties in New York State are mandated by the state to operate a local Department of Motor Vehicles (DMV) Office. This local DMV operation is one of the many examples of shared services that counties provide for the state. Local DMV offices process many no fee transactions on behalf of the State and provide customer services. However, under the current law, the State of New York takes 87.3% of all fees collected from the work performed entirely by the county operated DMV.

In an effort to alleviate that inequity, this legislation increases the percentages of revenue retained by the county clerk from fees generated by the administration of motor vehicle services. Increasing the county DMV revenue sharing rate will not result in any increased cost or fees to local residents or taxpayers and will provide counties with the needed revenue to provide these necessary local government services. It is patently unfair to require a county DMV to provide all services related to motor vehicles, including overhead and staffing, in order to fulfill state mandated operations and not share equitably in the generated revenue.

This bill requires that 25% of the revenue generated from the fees collected for any motor vehicle related service shall be retained by the county clerk. Currently county clerks retain just 12.7% of such fees. Additionally, this bill requires county clerks retain 60% of the $30 fee established for non-driver identification cards. This is an increase from the current 30% retention percentage. There is a clear inequity present when a county DMV provides all of the services to fulfill the DMV needs for state residents, yet the state takes 87.3% of the revenue generated from providing these services. This bill balances that inequity and as such its enactment is imperative.

Legislative history

New bill.

Fiscal implications

Minimal.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law.