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Senate approves measure letting DOT pilot third‑party motor vehicle services, but privacy concerns linger
Summary
Senate File 95 would let the Department of Transportation permit third parties to provide driver's licenses, testing and vehicle registration services under contract; supporters said participation is optional and technicians would be trained and bonded, while several senators sought stronger data‑privacy guarantees and background‑check language.
Senate File 95 cleared the Committee of the Whole after sponsors described a voluntary program to allow the Department of Transportation and Motor Vehicle Services to enter agreements with third parties to provide select services — primarily driver’s licenses, driver testing and vehicle registration — in locations that could help reduce long lines and expand convenient service.
Sponsor Sen. Pappas said the department “may enter into agreements with third parties” and emphasized the program is permissive: any participation would be optional for YDOT and subject to rules, audits and background checks for third‑party staff. He said other states use similar partner programs and report efficiency gains without requiring statewide adoption.
Floor concerns: Several senators, including Sen. Rothfuss and Sen. Pearson, asked whether the bill contains adequate data‑privacy protections and background‑check and bonding requirements. Senator Rothfuss noted other states’ DMVs have sold or monetized customer data and urged adding explicit prohibitions or stronger licensing language. Sponsor and supporters said rulemaking, state IT security and bonding plus audits would limit data exposure and that the department would not proceed if it did not pencil out financially or technically.
Action taken: A standing committee amendment correcting a drafting omission (adding a code citation for employees authorized to issue summons) was adopted; the Committee of the Whole adopted the amendment and sent SF95 forward with a due‑pass recommendation.
Next steps: YDOT rulemaking and a security‑audit process will be key. Senators asked the department to return to committees if pilot results warrant expansion; reporters should follow rulemaking text and any privacy/security memoranda of understanding.
