Committee backs DRIVES funding fix tied to fuel allowance change; bill contingent on tax bill

The Senate Appropriations Committee on Monday approved House Bill 11-02 as amended, a measure intended to provide a sustainable funding path for the DRIVES account, which supports DMV operations and the state's driver-license and vehicle-registration services.

Sponsor comments: A sponsor said the bill would divert approximately $4.5 million in fiscal 26-27 to the DRIVES cash fund and up to $6.312 million in 27-28, contingent on a companion change in House Bill 12-89 that reduces the fuel-distributor allowance from 2.5% to 1.0%. The sponsor described L42 as a technical amendment aligning effective dates and noted the bill is designed so the funding shift does not take effect unless the related tax-change bill passes.

Why it matters: Committee members raised concerns about routing fuel-related adjustments away from transportation uses and whether HUTF distributions would be affected. The sponsor said the proposal includes a hold-harmless/backfill concept: the reduction in the distributor allowance is expected to increase net HUTF receipts in some scenarios, and the DRIVES funding is structured to rely on that interaction; if the companion bill does not pass, the DRIVES funding does not go into effect.

Committee action: The committee adopted L42 and then approved the bill as amended 4–3.

Next steps: The bill will move to subsequent legislative consideration; committee members asked for continued clarity on the hold-harmless mechanics.