Senate Bill S9449

                                 
BILL NUMBER: S9449

SPONSOR: GRIFFO
 
TITLE OF BILL:

An act to amend the vehicle and traffic law, in relation to increasing
the retention percentage collected for certain motor vehicle service
fees

 
PURPOSE:

To increase the retention percentage for certain motor vehicle service
fees.

 
SUMMARY OF PROVISIONS:

Section 1. Subdivisions 3 and 3-a of section 205 of the vehicle and
traffic law, as amended by section 1 of part M of chapter 58 of the laws
of 2023 are amended to read as follows:  Each county clerk shall retain
from fees collected for any motor vehicle related service described in
subdivision one of this section processed by such county clerk an amount
based on a percentage of gross receipts collected. The retention
              

percentage shall be twenty-five percent. In addition to the fees
retained pursuant to subdivision three of this section, each county
clerk acting as the agent of the commissioner pursuant to subdivision
one of this section shall retain a percentage of "enhanced internet and
electronic partner revenue" collected by the commissioner. The commis-
sioner shall certify the amounts to be retained by each county clerk
pursuant to this subdivision. The retention percentage shall be twenty-
five percent.

Section 2. This act shall take effect on the first of January next
succeeding the date on which it shall have become a law.

 
EXISTING LAW:

 
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 89.25% of
all fees collected from the work performed entirely by the county oper-
ated 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. Increas-
ing 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 DV 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 gener-
ate 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 10.75% 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 89.25% of the revenue generated from providing these services.
This bill balances that inequity and as such, its enactment is imper-
ative.

 
LEGISLATIVE HISTORY:

2021-22- S. 2710- Transportation Committee

2023-24- S. 5522- Transportation Committee

 
FISCAL IMPLICATIONS:

Minimal.

 
LOCAL FISCAL IMPLICATIONS:

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