Funding requested for DMV software upgrade

The state Department of Motor Vehicles (DMV) would have a new source of funding for software upgrades under a bill heard by the Transportation and Telecommunications Committee Jan. 26.

LB918, introduced by Gretna Sen. John Murante, would redistribute 1 percent of motor vehicle tax proceeds to the Vehicle Title and Registration Replacement and Maintenance cash fund. The money would be used to fund a new vehicle title and registration (VTR) system.

Murante said the current system is outdated and in need of replacement. The Legislature appropriated $12.5 million in 2014 to the DMV to pay for the system upgrade, he said, which is estimated to cost $24 million. Another $5 million was later allocated, he said.

“The VTR system was developed in the late 1980s and the technology currently does not meet today’s business needs,” he said. “[LB918] would provide a funding mechanism to complete the project and ongoing maintenance of the system.”

Rhonda Lahm, DMV director, supported the bill. She said the department collected almost $75 million for local government entities under the current VTR system.

“The partnership between the state and local governments has served the people of Nebraska well,” she said. “[LB918] would allow us to use the capacity of the current system to fund the new system without raising taxes or fees.”

Jack Cheloha, representing the city of Omaha, testified in opposition to the bill. He said the funding mechanism would divert valuable resources from the city.

“The impact of 1 percent for Omaha is approximately $100,000. In terms of hiring, that’s two new rookie police officers,” he said. “Maybe a fairer way to pay for this would be to increase fees on people when they register their vehicles.”

The committee took no immediate action on the bill.