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DMV outlines reorganization, new chief data officer and auditor transfers in budget hearing

Joint Assembly Ways & Means & Senate Finance subcommittees · February 20, 2025
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Summary

Nevada DMV presented a reorganization plan to merge customer‑facing divisions, requested a chief data officer funded from records fees, and proposed transferring internal auditors to the director’s office; lawmakers pressed for clarity on highway fund projections and the administrative cap tied to IT modernization.

Deputy Director Angela Smith Lam told joint assembly and senate finance subcommittees that the Department of Motor Vehicles is seeking statutory and organizational changes to align customer‑facing services under a merged Customer Services Division and to improve data governance and security.

"We are undergoing significant transformation efforts," Smith Lam said, explaining that the reorganization would merge central services and field services so customer‑facing divisions report through the same chain of command while maintaining program autonomy. She said a bill draft request has been submitted to rename the merged divisions to match the new structure.

The director’s office budget (account 4744) includes decision unit E901 to transfer two existing internal auditor positions to the director’s office and decision unit E300 to create a chief data officer. Smith Lam said the auditors’ transfer is intended to avoid conflicts that arise when auditors report within the same divisional chain of command and to give auditors direct access to the director. On the chief data officer, she said: "Standards for data management and data quality need to be established to ensure data is secure, timely, available, complete, and accurate. The role of a chief data officer will be to guide the DMV's data strategy, implementation and operations." The administration proposes funding that chief data officer position from DMV records fees.

Lawmakers asked how these moves interact with the department’s IT modernization and its effect on the highway fund. Chair Taylor asked about highway fund trends and projections; Smith Lam said revenue grew about 4.5% in the most recent year and the department projects about 2.5% year‑over‑year growth going forward based on seasonality and source‑by‑source review. Senator Wynne asked about the administrative cap, noting an earlier increase from 22% to 27% to support IT work; Smith Lam confirmed the DMV submitted a BDR to extend a 27% cap through FY27 and said the department is seeking to reduce expensive contract supports over time so the highway fund allocation can return closer to historic levels.

The department also asked for reclassifications tied to workforce and IT responsibilities — including moving a master IT professional into the director’s office to improve network security reporting — and emphasized that data governance and information security will be coordinated: "They have to work hand in hand, but their focus is very different," Smith Lam said, explaining the chief data officer focuses on how data is collected, stored and shared while information security focuses on transport, storage environment and breach risks.

The committee requested additional data and staff follow‑up on revenue allocations, cost‑allocation changes from the reorganization, and when IT‑related expenses are expected to taper. No formal budget actions or votes were recorded during the hearing.

The DMV also described an ongoing classification and compensation study meant to address turnover and pay differentials with other state agencies; Smith Lam said the recent pay raises reduced vacancies sharply but turnover remains a concern and the department will monitor DHRM study outcomes.