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Bill Would Allow DMV Vendors To Charge Fees

Published On: Feb 13 2014 04:44:00 PM AKST

DMV off Benson


Private vendors for the Division of Motor Vehicles would get to keep a percentage of proceeds collected from customers as well as charge fees of their own under a bill pending in the Legislature.
The Senate State Affairs Committee began hearing testimony on SB127 Thursday.
The bill, from Sen. Cathy Giessel (R-South Anchorage/North Kenai), would allow private vendors who handle things like license renewals or title changes for the Division of Motor Vehicles to keep 15 percent of proceeds collected from customers. They also could charge a fee on top of state required fees.
Giessel said the bill compensates small businesses for credit card processing and other fees and the updating of equipment.
However, Sen. Bill Wielechowski (D-Elmendorf/College Gate) said the bill would cost the state $1.2 million that would otherwise go into the general fund.