Committee backs raising OMV local service-fee cap and notes PTA market effects

Representative Henry presented House Bill 593 as a statewide approach to standardize maximum service fees for Office of Motor Vehicles service-fee offices. OMV Commissioner Keith Neal said many service offices are coordinated with local municipalities and most currently charge below the statutory maximum of $4.50, but the cap had not been changed since 2005 and inflation has reduced buying power.

Neal told senators that public tag agents (PTAs) now perform about 78% of OMV transactions in the state; he said service-fee offices remit transaction fees to local municipalities via escrow accounts and those funds must be spent only on the OMV facilities. Senators asked how franchises are awarded, whether two private entities can operate in the same locality, and whether regional consolidation might be considered where transaction volumes are low.

Representative Henry said the bill is permissive and that municipalities who choose to increase fees or maintain current levels must do so by local vote. HB 593 was moved and reported favorable by voice vote with no objections; committee members asked staff to provide follow-up data on transaction distribution and capacity in parishes where demand differs.

Next steps: HB 593 will go to the Senate floor; staff committed to share data on dormant projects and transaction volumes with committee members on request.