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Committees continue DMV transformation funding with oversight, require semiannual reporting
Summary
The joint committees approved continued funding for the Nevada DMV’s department transformation effort, including multiyear project funding and master service agreement contractor authority, but placed FY27 contractor funds in reserve and required semiannual reporting and interim approvals before further expenditures.
The joint Senate Finance and Assembly Ways and Means committees voted on May 1 to continue funding the Nevada Department of Motor Vehicles’ long-running department transformation effort but added expanded oversight and reporting requirements and placed fiscal limits on some FY27 expenditures.
The DMV told the committees that the estimated total project cost is now $306.5 million with projected completion in fiscal year 2029. The transformation effort replaces core DMV systems and expands online service delivery. The subcommittee recommended and the full committees approved continuation funding for the project — including master service agreement (MSA) contractor funding of $4.8 million in FY26 and $6.5 million in FY27 — but directed that the FY27 contractor funding be placed in reserves, requiring the DMV to request interim finance committee approval before expending those FY27 amounts.
Tanya Laney, Director of the Nevada Department of Motor Vehicles, told the committees the portfolio covers roughly 867 services and numerous sub‑transactions and system interfaces across state and federal systems. “This is 867 services the department offers to the Nevada citizens that are being transformed,” Director Laney said, and invited legislators to visit the DMV to review project work.
Why it matters: The DMV project is a large, multi-year IT modernization effort that affects customer service delivery statewide. Committees expressed concern about long timelines and cost escalation and required semiannual reporting to the Interim Finance Committee and stricter interim approvals for releasing FY27 contractor funds from reserve.
Other DMV actions
The committees adopted a package of personnel and reclassification moves contingent on enabling legislation (SB 455 or similar), authorized positions to shift between central services and field services in a planned reorganization, and approved a continuation of credit card fee revenue projections with authority to transfer highway fund appropriations between fiscal years to cover credit card fees (with language specifying the appropriation is for credit card fees only). The subcommittee also approved a reduction eliminating a vacant program officer position assigned to language-access plan administration and approved contract and printing costs relating to the language access plan.
Ending
The committees requested semiannual status reports on the DMV transformation project and directed the agency to return to the Interim Finance Committee for FY27 contractor expenditures removed to reserve; those reporting requirements will be incorporated into budget language.
