24VAC20-90 Evidence Required to Permit Registration or Reregistration of Vehicles for Which Proof of Tax Payment and of State Corporation Commission Registration is Required

REGULATIONS

Vol. 29 Iss. 24 - July 29, 2013

TITLE 24. TRANSPORTATION AND MOTOR VEHICLES

DEPARTMENT OF MOTOR VEHICLES

Chapter 90

Fast-Track Regulation

Title of Regulation: 24VAC20-90. Evidence Required to Permit Registration or Reregistration of Vehicles for Which Proof of Tax Payment and of State Corporation Commission Registration is Required (repealing 24VAC20-90-10, 24VAC20-90-20, 24VAC20-90-30).

Statutory Authority: §§ 46.2-203 and 46.2-649 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: August 28, 2013.

Effective Date: September 27, 2013.

Agency Contact: Barbara S. Klotz, Legislative Services Manager, Department of Motor Vehicles, P.O. Box 27412, Richmond, VA 23269-0001, telephone [phone], FAX [phone], TTY [phone], or email [e-mail].

Basis: Pursuant to § 46.2-203 of the Code of Virginia the Commissioner of the Department of Motor Vehicles (DMV) has general authority to adopt reasonable regulations necessary to carryout the laws administered by DMV. However, specific authority to promulgate regulations regarding evidence of payment of taxes was removed from § 46.2-649 of the Code of Virginia by Chapter 226 of the 2013 Acts of Assembly.

Purpose: This regulatory action is necessary to eliminate DMV's regulations entitled Evidence Required to Permit Registration or Reregistration of Vehicles for which Proof of Tax Payment and of State Corporation Commission Registration Is Required (24VAC20-90). Specific authority to regulate was removed from the Code of Virginia by Chapter 226 of the 2013 Acts of Assembly. The regulatory requirements are codified in the Code of Virginia. The regulations are redundant.

Rationale for Using Fast-Track Process: Repeal of this regulation is not anticipated to be controversial since the regulations are no longer authorized and are redundant.

Substance: There are no substantive changes. The regulation is being repealed.

Issues: The advantage for the public, the agency, and the Commonwealth is the repeal of redundant and unnecessary regulations. In addition, it is advantageous to the agency not to have to go through a lengthy regulatory process when the agency decides to add new methods and types of evidence that may be used to prove that all local, state, and federal taxes have been paid. The agency will work with local commissioners of revenue and directors of finance, and with appropriate federal officials on the kinds of evidence that will be accepted, especially as technology permits more options for providing evidence or payment. This flexibility will also be advantageous to the public and localities. There is no disadvantage for the public, the agency, and the Commonwealth in repealing this regulation.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Commissioner of the Department of Motor Vehicles proposes to repeal this regulation.

Result of Analysis. The proposed change will have no significant impact.

Estimated Economic Impact. Code of Virginia 46.2-649 states the following:

A. Before the Commissioner registers or reregisters any motor vehicle, trailer, or semitrailer under 46.2-697, 46.2-698, 46.2-700 or 46.2-703, the applicant shall furnish evidence satisfactory to the Commissioner that all state, local, and federal taxes levied on that motor vehicle, trailer, or semitrailer have been paid and that the motor vehicle, trailer, or semitrailer either (i) is registered with the Department as required by law, or (ii) is not required so to register.

Prior to the 2013 Acts of Assembly, the next subsection of 46.2-649 was as follows:

B. The Commissioner, in consultation with local commissioners of the revenue and directors of finance, and with appropriate federal officials, by regulation shall provide for the kinds of evidence required to satisfy the provisions of subsection A of this section.

Chapter 226 of the 2013 Acts of Assembly removed the words by regulation from the above subsection. Consequently, the Commissioner proposes to repeal this regulation. As still required by the Code, the Commissioner will continue to consult with local commissioners of revenue and directors of finance, and with appropriate federal officials on the kinds of evidence that can be used to prove that all local, state, and federal taxes have been paid.

The current regulations essentially indicate that a receipt from the relevant taxing authority would serve as proof. Presumably this will continue to be the case without these regulations. Thus, the proposed repeal of these regulations will not have a significant impact.

Businesses and Entities Affected. The proposed repeal will not significantly affect any business or entity. The subject matter of the regulations concerns individuals seeking to register a motor vehicle, trailer, or semitrailer.

Localities Particularly Affected. The proposed repeal does not disproportionately affect particular localities.

Projected Impact on Employment. The proposed repeal is unlikely to affect employment.

Effects on the Use and Value of Private Property. The proposed repeal is unlikely to significantly affect the use and value of private property.

Small Businesses: Costs and Other Effects. The proposed repeal is unlikely to significantly affect small businesses.

Small Businesses: Alternative Method that Minimizes Adverse Impact. The proposed repeal is unlikely to significantly affect small businesses.

Real Estate Development Costs. The proposed repeal is unlikely to affect real estate development costs.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 14 (10). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, a determination of the public benefit, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

Agency's Response to Economic Impact Analysis: The Virginia Department of Motor Vehicles concurs with the analysis of the Department of Planning and Budget.

Summary:

Chapter 226 of the 2013 Acts of Assembly removes the authority of the Commissioner of the Department of Motor Vehicles to promulgate regulations specifically dealing with evidence of payment of taxes and of registration with the department. Therefore, this chapter is repealed.

VA.R. Doc. No. R13-3686; Filed June 28, 2013, 4:19 p.m.