Senate trims proposed DMV no‑show fee, advances plan to shore up Drives fund to Appropriations 5–3

Senate Finance voted 5–3 to send House Bill 26-1102, a package intended to stabilize the Drives cash fund that supports DMV operations, to the Committee on Appropriations after the sponsor agreed to strip a proposed appointment no‑show penalty amid committee concerns.

Senator Snyder, the sponsor, opened by warning the committee that the Drives fund faces exhaustion in fiscal year 2027–28 without corrective action and described a projected $12 million gap between revenues and expenditures. He said the bill redirects certain motor vehicle transaction allocations to the Drives account and ties key sections to House Bill 12-289 so that changes to a fuel distributor allowance in that tax bill would backfill Highway Users Tax Fund recipients rather than reduce local revenues.

The bill also originally included a section authorizing a no‑show fee for missed DMV appointments to reduce a reported 20–25% no‑show rate. That proposed penalty drew sustained objection from several senators worried about delegating fee‑setting to agency rulemaking and about the equity and administrative consequences for constituents. Electra Bussell, DMV senior director, described DMV’s operational pressures and defended the larger funding approach but said the DMV is pursuing appointment-system improvements, text reminders and other efficiency upgrades.

Local government representatives opposed the HUTF reallocation. Jared Verner, public policy manager for the Pikes Peak Area Council of Governments, said the fiscal analysis indicates local governments in his region would lose funding (tens of thousands of dollars for individual jurisdictions) and urged a no vote. DMV and DOR witnesses argued the bill would create a sustainable funding model for essential services and stressed the proposal has been crafted to avoid long-term harm if companion tax changes proceed.

After witness testimony and discussion, Senator Snyder offered amendment L041 to strike section 3 (the proposed no‑show penalties). The committee adopted L041 without objection. Senator Snyder moved the amended bill to Appropriations. The committee recorded the motion and referred the measure to Appropriations by a 5–3 vote.

The committee debate centered on the tension between creating sustainable funding for DMV operations and avoiding negative impacts to local governments from redirecting Highway Users Tax Fund allocations. With the no‑show fee removed, the bill proceeds for fiscal analysis and further negotiation in Appropriations.