DMV describes IT modernization wins, will shift credit‑card fees to customers and pause paper‑plate program

The Department of Motor Vehicles reported progress on IT modernization and several operational changes to the House Appropriations Committee. Andrew Fowler (introduced as "commissioner of DMV") said a $50,000,000 core modernization project finished in December on time and slightly under budget and that staff are now learning the new system and refining internal processes.

"We came in on time and just under budget with it," Fowler said, praising the contractor and DMV staff for the rollout. DMV officials said the modernization has improved customer experience and enabled new services, including a $3,000,000 e‑permitting system for commercial heavyweight trucks that moves a previously manual process online and will expand to local municipalities for yearly local permits.

DMV said it plans to stop absorbing credit‑card processing fees and instead allow customers to pay those fees beginning July 1, subject to IT implementation timelines. DMV staff said customers will retain fee‑free payment options such as cash, check and ACH; the agency cited an expected card‑fee rate of about 2.3%.

DMV also disclosed it paused a temporary paper‑plate program after finding compliance gaps: staff estimated that of more than 200,000 paper plates issued since program inception, roughly two‑thirds did not translate into a recorded registration or purchase‑and‑use tax payment. DMV plans an IT change to require payment before printing paper plates and noted pending House legislation that would repeal the program's authorizing language.

Committee members raised concerns about inspection rules, tinted windows and license‑plate tinting. DMV staff said they are revising the inspection manual to focus on safety‑related items and intend to add language addressing tinted plates. On inspection frequency, DMV estimated eliminating routine safety inspections would reduce revenue by about $4,000,000 and outlined mitigation options such as adjusting inspection cadence and fees to offset the cut.

On service delivery, DMV staff said appointment customers are typically served within about 20 minutes and telephone wait times average roughly 20–26 minutes; some high‑volume walk‑in locations, notably South Burlington, continue to experience multi‑hour waits.

The committee did not vote on any DMV proposals during the hearing; members requested further detail on credit‑card fee implementation, the paper‑plate IT fix and inspection revenue‑mitigation plans.