PROVIDENCE – Gov. Daniel J. McKee on Wednesday issued his only vetoes of the closing legislative session, opposing a pair of bills that would reduce revenues to the R.I. Division of Motor Vehicles.
Citing what he called unnecessary taxes and fee increases, McKee also opted to neither sign nor veto the $14.3 billion state budget that was approved by lawmakers on June 20, marking the first time since that has occurred since former Governor Don Carcieri did so in 2010.
Among the pair of laws McKee seeks to reverse is a change empowering the DMV to offer prorated credits to motor vehicle registrants who voluntarily cancel their registrations early and receive a credit which can be applied to future registration fees.
In his transmittal letter McKee wrote “this act will pose significant implementation challenges for the DMV and will also have adverse fiscal ramifications,” including incorporating the act into the DMV's computer system, which would require “extensive structural modifications, as the current system does not accommodate the concept of issuing credits.”
His second veto targets a bill permitting the DMV to provide a one-year renewal registration for vehicles leased for a 36-month term, along with an adjustment to the renewal fee and refunds of certain portions of the registration fee to registrants of leased vehicles who choose to cancel their registration voluntarily.
In a statement released after the legislation was submitted, Senate Majority Whip and bill sponsor David P. Tikoian said because state registrations are good for two years but many lease agreements run on three-year cycles, “Given the multitude of fees imposed, it is only fair to refund taxpayers for registrations they no longer utilize.”
But in addition to stretching resources by requiring updates to the computer system “to create expiration date rules for leased vehicles across all forty-seven plate types,” McKee argued this law too would have “detrimental fiscal effects.”
“This major overhaul will divert resources currently allocated to enhancing online transaction capabilities,” he wrote.
In testimony before the House Finance Committee in May, DMV Administrator Walter “Bud” Craddock reported that more than 22,000 registrations were canceled with more than one year remaining, which would have resulted in a reduction of $1.3 million in fees under the new provision and a total loss of $7.5 million including federal matching funds provided by the U.S. Department of Transportation because the revenues are kept in the state’s highway maintenance account.
An override of a governor's veto requires a three-fifths vote by the General Assembly.
Christopher Allen is a staff writer for PBN and can be reached at Allen@PBN.com.
