05/02/1994 09:10 AM Senate STA

 CHAIRMAN LEMAN brings up HB 328 (PAY MOTOR VEHICLE FEES BY CREDIT             
 CARD) as the next order of business before the Senate State Affairs           
 Committee.  The chairman calls Ms. Larson to testify.                         
                                                                               
 JEANNIE LARSON, Aide to Representative Martin, the prime sponsor of           
 HB 328, states HB 328 would amend existing statutes relating to               
 registration fee rates to allow fees to be paid by credit card,               
 including authorization by telephone.  This would increase                    
 efficiency.  By using a credit card, credit card companies assume             
 responsibility for payment.                                                   
                                                                               
 Number 117                                                                    
                                                                               
 CHAIRMAN LEMAN asks what the fee would be from the credit card                
 companies for use of the credit cards.  The chairman asks if the              
 fees paid to the credit card companies would be less than the fees            
 paid for nsf (non-sufficient funds) checks.                                   
                                                                               
 Number 125                                                                    
                                                                               
 JUANITA HENSLEY, Chief, Driver Services, Division of Motor                    
 Vehicles, Department of Public Safety, states the fiscal note                 
 accompanying HB 328 would give DMV to allocation to handle a 1.5%             
 interest rate on credit card charges.                                         
                                                                               
 Number 153                                                                    
                                                                               
 CHAIRMAN LEMAN asks Ms. Hensley if she thinks HB 328 will help DMV            
 in speeding the processing of registration.                                   
                                                                               
 Number 156                                                                    
                                                                               
 MS. HENSLEY responds DMV is certainly hoping that HB 328 will allow           
 the department to more conveniently serve the public.  DMV is                 
 currently exploring the idea of a venture with a private company to           
 provide kiosk service.  This will allow the division to renew                 
 licenses and registrations through a kiosk system, or ATM type                
 machine.  These kiosks will be placed in grocery stores, banks,               
 those types of places.                                                        
                                                                               
 Number 177                                                                    
                                                                               
 CHAIRMAN LEMAN asks if people will be allowed to charge renewals of           
 registration & licenses to their debit cards.                                 
                                                                               
 MS. HENSLEY states she could see no reason why a person would not             
 be allowed to use their debit card.                                           
                                                                               
 MS. LARSON agrees, stating it was probably just an oversight that             
 debit cards were not included in HB 328.                                      
                                                                               
 SENATOR MILLER states there would be a title problem regarding                
 adding debit cards to HB 328.                                                 
                                                                               
 MS. HENSLEY states that with HB 328, the state would have the                 
 chance to see if the program would be feasible.                               
                                                                               
 Number 193                                                                    
                                                                               
 SENATOR TAYLOR states the committee could put a definition section            
 in the bill, basically saying a debit card shall be known as a                
 debit card.                                                                   
                                                                               
 SENATOR TAYLOR asks why not be able to charge all transactions with           
 the state, such as the Court System.                                          
                                                                               
 Number 201                                                                    
                                                                               
 MS. HENSLEY responds there is nothing to prohibit the state from              
 using credit cards at this time, however, DMV cannot absorb the               
 credit card fee.  Ms. Hensley agrees that the Court System could              
 very well utilize payment of fees by credit card.                             
                                                                               
 Number 221                                                                    
                                                                               
 CHAIRMAN LEMAN asks if there are further questions of the witness,            
 or if anyone else would like to testify on HB 328.                            
                                                                               
 Number 222                                                                    
                                                                               
 SENATOR TAYLOR makes a motion to discharge HB 328 from the Senate             
 State Affairs Committee with individual recommendations.                      
                                                                               
 Number 223                                                                    
                                                                               
 CHAIRMAN LEMAN, hearing no objection, orders HB 328 released from             
 committee with individual recommendations.