Video & story: Democrats call for investigation into BMV problems
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- Published: Tuesday, 24 March 2015 17:22
INDIANAPOLIS – Top Democrats are calling for an investigation into whether Bureau of Motor Vehicles officials knew they were overcharging customers in violation of state law and chose not to act.
State Democratic Chairman John Zody demanded an investigation by the state’s inspector general and also asked the Marion County prosecutor’s office and U.S. attorney’s office to look into the allegations, which were raised in a story by The Indianapolis Star.
The story found that BMV officials knew since 2011 that they were charging higher fees than allowed by law, although they testified later they had not known. The Star also accused the state of covering up the losses to avoid a reduction in revenue.
“We’re past the time for apologies with this issue,” Zody said during a press conference Monday morning at the Statehouse. “Hoosiers need answers and Mike Pence needs to give them.”
But BMV spokesman Josh Gillespie said there was no cover-up.
“When the Pence administration took office and allegations of overcharges came to light, BMV officials moved to hire an independent law firm to look into indications that previous administrations misapplied BMV fees,” the agency said in a statement.
The BMV settled a lawsuit in fall 2013 about overcharges that led to $50 million in refunds. Then last fall, the agency announced another $29 million in refunds.
Then earlier this year, Pence announced $2 million in refunds for several incorrect fees, including those related to antique motor vehicle excise taxes, photographs, and wheel tax payments for some vehicles in Elkhart, Green and Henry counties.
Some of the money will be returned to Hoosiers as credits on their BMV accounts; others will receive refunds.
Pence said earlier this year the agency also discovered it has undercharged customers some $13 million but he said the state will not seek to recoup that money. Instead, the Pence administration is working with lawmakers to reduce fees to bring them in line with current practice.
On Monday, Pence said new agency rules require employees to report to a supervisor any suspected fee problems.
“Frankly, many of the overcharges that we’ve identified and refunded to Hoosiers has been a result of that new policy,” he said.
But Rep. Dan Forestal, an Indianapolis Democrat who has been pushing for more oversight of the BMV, repeated his call for independent BMV audits and a restructuring of fees at the agency.
“Last year and throughout this session of the General Assembly, my colleagues and I have repeatedly offered solutions to help address the scandal at the BMV,” Forestal said in a statement. “Each and every time House Democrats have offered solutions, including reducing the amount of the BMV fees, those calls have gone unanswered by Gov. Pence and House Republicans. Yesterday’s latest revelations at the BMV show this inaction is simply not good enough. Hoosiers deserve transparent and accountable government.”
Article writer Andi TenBarge is a reporter at TheStatehouseFile.com, a news website powered by Franklin College journalism students.
