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.<\/p>\n
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.<\/p>\n
Murante said the current system is outdated and in need of replacement.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.<\/p>\n
\u201cThe VTR system was developed in the late 1980s and the technology currently does not meet today\u2019s business needs,\u201d he said. \u201c[LB918] would provide a funding mechanism to complete the project and ongoing maintenance of the system.\u201d<\/p>\n
Rhonda Lahm, DMV director, supported the bill. She said the department collected almost $75 million for local government entities under the current VTR system.<\/p>\n
\u201cThe partnership between the state and local governments has served the people of Nebraska well,\u201d she said. \u201c[LB918] would allow us to use the capacity of the current system to fund the new system without raising taxes or fees.\u201d<\/p>\n
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.<\/p>\n
\u201cThe impact of 1 percent for Omaha is approximately $100,000. In terms of hiring, that\u2019s two new rookie police officers,\u201d he said. \u201cMaybe a fairer way to pay for this would be to increase fees on people when they register their vehicles.\u201d<\/p>\n
The committee took no immediate action on the bill.<\/p>\n","protected":false},"excerpt":{"rendered":"
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