Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Motor Vehicle Modernization topic
No spam. Unsubscribe anytime.
Revenue Department modernizes motor-vehicle system; proposes $2 registration fee and closes two field offices
Summary
The Department of Revenue said it will replace SD CARS with a FAST Enterprises solution (605Drive) on Feb. 17, 2025, requested ongoing maintenance funding and proposed a $2 per-registration technology fee (Senate Bill 45). The agency also proposed closing Mitchell and Watertown field offices to save rent.
Mike Houdyshell, cabinet secretary of the South Dakota Department of Revenue, and Toni Richardson, director of administration, briefed the appropriations committee on the department’s FY26 requests and a planned switch of motor-vehicle technology.
605Drive modernization: Houdyshell said the department selected Fast Enterprises to replace the aging SD CARS motor-vehicle platform and that the new system (referred to as 605Drive) is scheduled to go live Feb. 17, 2025. The vendor-hosted, subscription model will provide cloud hosting, regular version updates and a commercial off-the-shelf solution already in use in nearby states. Houdyshell said the vendor’s implementation was paid via a prior special appropriation; the department said it expects ongoing hosting and maintenance costs and seeks a sustainable funding source.
Proposed motor-vehicle technology fee: To fund ongoing system costs and future enhancements, the department introduced Senate Bill 45 to impose a $2 per-registration motor-vehicle technology fee. Houdyshell estimated about $4 million in annual revenue from the proposal (rough estimate based on titled vehicles and renewals) and said average ongoing vendor support and hosting is expected to be about $2 million per year over the initial contract period.
Why it matters: The new system changes business practices for county treasurers, dealers and the public and aims to replace manual, paper-driven title processing with more secure, online workflows. The department plans a president’s‑day rollover day to limit county office disruption.
Field-office closures and cost savings: Richardson said the department plans to close field offices in Mitchell and Watertown by late June to reduce rent expenses. Watertown field-office traffic averages roughly 15 walk‑in customers per week; Richardson and Houdyshell said services will continue via other offices, virtual options and occasional field hours.
Other points: Holmes (sic) staff said they will reduce one motor-vehicle title processor FTE due to expected efficiency gains from the new system. The department also noted upcoming license-plate contract expiration and said it will review specialty‑plate fees during the next procurement cycle.
Quotes: “We will be rolling over to our new system Feb. 17th,” Houdyshell said. He added the department intentionally chose President’s Day for the rollover because county offices will be closed.
What’s next: Senate Bill 45 and the FY26 motor-vehicle budget will return to committee for consideration; the department offered to provide a more detailed breakout of anticipated ongoing costs and a report on nonresident and mail‑in registration volumes on request.
