DMV outlines $201 million modernization contract, warns e‑titling won’t be ready in six months

The Department of Motor Vehicles told the House Ways and Means transportation and regulatory budget subcommittee on Tuesday that a comprehensive modernization effort is under way and that electronic titling will be rolled into a larger, multi‑year contract rather than delivered as a quick, stand‑alone fix.

An unnamed DMV director, speaking for the agency, said the department let a contract to Fast Enterprises and expects the modernization to run roughly $201 million over the long term, with about $109 million expected in the first six years. "We will be with Fast Enterprises," the director said, adding the contract spans the next decade and beyond.

The director stressed the project’s scale and risks. "If we're gonna be the first, I don't think that anybody right now has the capability to go ahead and turn a product in 6 months without failing significantly," he told lawmakers, noting many states are still working through comprehensive modernization efforts.

The DMV also asked for recurring and one‑time funds tied to modernization and operations: configuration and shared IT services, branch office contracts, and safety upgrades. The director said DMV handled more than 12 million transactions last year and generated more than $840 million for the state, and that modernization is necessary to meet growing demand.

Salary and retention were highlighted as immediate priorities. The director said 86% of certain skill‑level positions are paid below the state average and that 55% of IT staff earn less than comparable state roles. "When they get recruited out because there's a $20,000 disparity, their current salaries won't bring good people in," he said, warning that turnover has hit the agency: "40 of my DMV positions have turned over 2 or more times since 2023."

On the question of electronic titling, staff and lawmakers referenced a proviso directing DMV to hire programmers and select a vendor to create an e‑titling program. The director said e‑titling is being integrated into the modernization procurement and cautioned against a piecemeal approach. "Entitling modernization right now is having issues. It's not ready for prime time," he said, adding that the agency is meeting with multiple contractors and plans to issue procurement actions as part of the broader modernization work.

Lawmakers also pressed the DMV about sales of motor vehicle records. The director confirmed the agency sells motor vehicle records and generates roughly $20 million per year from those sales — about $97–98 million over the last five years — with a portion coming from aggregators. He said the DMV complies with the federal Driver's Privacy Protection Act and that some consumer solicitations originate from other commercial databases, not DMV files.

The director provided a Real ID update, reporting the state is about 69% compliant and warning that new TSA enforcement measures will increase scrutiny at airports and may create additional costs for travelers who are not Real ID‑compliant.

The committee adopted a new proviso directing DMV to pursue e‑titling work and approved related packet changes; lawmakers also authorized staff to make technical edits. The DMV director said the agency will provide additional briefings and documentation as procurement moves forward.

The subcommittee adjourned after adopting the packet and new provisos; the full committee will reconvene in a few weeks unless additional meetings are needed.