Southbound traffic on Interstate 95 in Portsmouth, NH, after a holiday weekend.
Southbound traffic on Interstate 95 in Portsmouth, NH, after a holiday weekend.
Dan Tuohy/NHPR

McKee Vetoes Bills That Aimed to Give Credits for Unused Vehicle Registration Fees

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Southbound traffic on Interstate 95 in Portsmouth, NH, after a holiday weekend.
Southbound traffic on Interstate 95 in Portsmouth, NH, after a holiday weekend.
Dan Tuohy/NHPR
McKee Vetoes Bills That Aimed to Give Credits for Unused Vehicle Registration Fees
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Of the 513 bills the General Assembly sent to Gov. Dan McKee this year, only two pairs have been blocked at the governor’s desk — both aimed at giving Rhode Island drivers partial credits for fees on canceled vehicle registrations.

McKee vetoed the two sets of bills opposed by the Rhode Island Division of Motor Vehicles (DMV) on Wednesday, July 2, when his office announced his final decisions on legislation from this year’s session, which ended June 21.

The legislation sponsored by Rep. Gregory Costantino, a Providence Democrat, and Senate Majority Whip David Tikoian, a Smithfield Democrat, would have allowed drivers who cancel their vehicle registration before its expiration date to receive a credit for the unused portion of the fee they paid to the DMV. That credit could have been used toward future registration fees.

The registration period for renewals of motorcycles, passenger vehicles and camper RVs is two years. Fees are based on vehicle weight.

In letters to legislative leaders, McKee wrote the bills would “impose significant implementation burdens on the DMV” and could have negative fiscal impacts under the language approved by lawmakers.

Indeed, the DMV in its written testimony to lawmakers stated that the state would have lost between $1.3 million and $1.6 million based on registration cancellations in 2023 and 2024.

“Because the fees for many vehicles are more than $60, the actual amount of lost revenue could be much higher,” Walter “Bud” Craddock, the administrator of the Rhode Island DMV, wrote to the House Committee on Finance May 6.

McKee voiced concerns about provisions in one of the bill sets that would have allowed 36-month vehicle leases to renew for a third year to align with the end of the lease.

He wrote that the DMV does not track the terms of any leased vehicles because dealers and motorists are not required to submit a copy of their lease agreement at the time of initial registration.

“As a result, it would be impossible for the DMV to know the lease term at the time of renewal since most registrations are renewed online or through mail,” McKee wrote.

The governor can choose to sign a bill as a form of explicit endorsement, veto it, or can simply allow the bill to become law without a signature.

Vetoed bills return to the chamber where they originated and the Rhode Island Constitution allows the General Assembly to override the governor’s decision if three-fifths of members in each chamber vote to affirm the bill’s passage. That vote would need to take place before the start of the new law-making session in January.

McKee’s veto messages are being reviewed by House Speaker K. Joseph Shekarchi and President Valararie Lawson, their respective spokespeople said in an email to Rhode Island Current.

In 2024, McKee vetoed five sets of bills. The governor does not intend to strike down any other pieces of legislation this year, McKee spokesperson Andrea Palagi said in a text message.

“There aren’t any (bills) left — desk is cleared,” she wrote.

This story was originally published by the Rhode Island Current.

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