Kansas Officials Close State-Approved AAA License Renewal Program

The Kansas state House panel supported a proposal this week to end a pilot program that allowed motorists to renew drivers licenses at a AAA office in Lawrence.

The project began in May 2005 and officials say it allowed 1,800 people to renew their licenses and saved taxpayers $235,000 for the cost of not opening a new renewal center.

Legislators and insurance company lobbyists complained that the practice has the appearance of giving AAA access to motorists who may be inclined to purchase coverage.

The bill approved by the House Insurance Committee would end the agreement with AAA and the Department of Revenue in July 2006 and prohibit the agency from contracting with private business for license renewal services. The bill awaits debate in the full House, according to an Associated Press story.

Rep. Dick Kelsey, R-Goddard said that it is a matter of fairness, and this (the proposed bill) is unfair to everyone else.The state director of motor vehicles disagreed and promised to fight the bill. While, a State Farm Insurance lobbyist, representing the largest auto and homeowner insurer in Kansas, said the program gave AAA an unfair advantage.

James Hanni, AAA executive vice president of the Kansas region, said the nonprofit company was trying to provide a service and had signed a written agreement to not give insurance policy quotes to any customer who came in to renew their driver’s license. He added that only other insurers had concerns, not the public.

Rep. Nile Dillmore, D-Wichita and member of the Insurance Committee, said the agreement was convenient for customers and there had been no proof or documentation that AAA had gained new insurance business under the agreement.

Topics Kansas