Division of Motor Vehicles · 17/02/2011 · Commissioner - 1 Assistant Commissioners - 2 Staff Support ± 4 Operations Section Personnel include: Director ± 1 Deputy Director ±

Division of Motor Vehicles

Mike Robertson, Commissioner

Johanna Reese, Deputy Commissioner

Ronald Kaylor, Deputy Commissioner

NC DIVISION OF MOTOR VEHICLES Revenue Sources

2009-2010

Total $1.103Billion

2

3

2005-06 2006-07 2007-08 2008-09 2009-10

Driver License Transactions

2,812,000

2,871,000

2,901,000

2,702,000

2,546,000

Driver License Employees 839 789 811 808 773

Driver License Revenues $110,604,716 $126,047,940

$133,457,409 $129,766,134 $126,617,706

Vehicle Registration Issues and

Renewals

8,401,000

8,518,000

8,545,000

8,451,000

8,255,000

Vehicle Registration Employees 297 281 283 277 259

Vehicle Registration Revenues

$498,061,600 $529,476,362

$517,934,409 $491,754,890 $475,219,940

NC Division of Motor Vehicles.

Driver and Vehicle Transactions, Revenues and Employee Trends

5

Commissioner's Office

BUDGET AND PERSONNEL TRENDS

05 - 06 06 - 07 07 - 08 08 - 09 09 - 10

Personnel $1,134,933 $1,337,118 $1,600,393 $1,802,129 $2,038,868

Operating $382,163 $454,523 $374,616 $242,192 $313,641

Total $1,517,096 $1,791,641 $1,975,009 $2,044,321 $2,352,509

# of Positions 14 17 18 17 27

Major Expenditures FY09-10

Telephone system maintenance and charges, office equipment and maintenance 36% of the Personnel Budget for legal services provided by Attorney General’s Office

Commissioner's Office Personnel include:

Commissioner - 1 Assistant Commissioners - 2 Staff Support – 4

Operations Section Personnel include: Director – 1 Deputy Director – 1 Staff Support – 3

Facilities Mgr. – 1 Telecommunications – 1 Safety Representative – 1 Budget Office – 2 Purchasing Office – 3 Personnel Staff – 7

6

Hearings Section

BUDGET AND PERSONNEL

05 - 06 06 - 07 07 - 08 08 - 09 09 - 10

Personnel $506,060 $4,042,220 $4,174,904

Operating $20,123 $267,241 $303,946

Total $526,183 $4,309,461 $4,478,850

# of Positions 76 76 80


55% - $167,432 for travel expenses 12% - $35,088 for the transcription recorder maintenance fees

18% - $55,930 funds for Hearing operations (e.g., printer/scanner maint, office supplies, etc.)

Administrative Hearings and Medical Review Personnel include: Director - 1 Staff Support - 4 Supervisors – 4 Problem Resolution - 21

Court Data - 3 Hearing Officers - 34 Medical Review - 13 7

Vehicle Registration

BUDGET AND PERSONNEL TRENDS 05 - 06 06 - 07 07 - 08 08 - 09 09 - 10

Personnel $10,511,009 $10,871,748 $11,269,294 $11,511,430 $11,172,056

Operating $23,309,119 $24,583,461 $23,158,932 $23,420,667 $20,014,937

Total $33,820,128 $35,455,209 $34,428,226 $34,932,097 $31,186,993

# of Positions 297 281 283 283 259


66% - $13,260,392 is for License Plate Agent's (LPA) compensation 16% - $3,270,198 is for license plates and validation stickers

5% - $1,061,411 is for credit card processing fees 13% - $2,422,936 funds for operations (e.g., remittance processing equip, facility rentals, utilities, etc.)

Vehicle Registration Section Personnel include:

Raleigh Window – 40 Charlotte Window – 28

Raleigh Headquarters - 100 Field Auditors – 11

Call Center - 80

8

Driver License


05 - 06 06 - 07 07 - 08 08 - 09 09 - 10

Personnel $33,946,680 $34,560,730 $35,683,631 $35,456,721 $35,148,927

Operating $11,608,991 $13,811,835 $11,369,052 $10,020,061 $8,866,785

Total $45,555,671 $48,372,565 $47,052,683 $45,476,782 $44,015,712

# of Positions 839 789 811 808 773


49% - $4,384,303 Driver license production contract 17% - $1,479,831 Driver License office leases

16% - $1,439,775 other operations (e.g., System Alien Verification national database, utilities, uniforms, etc.)

Driver License Section Personnel include:

Driver License Headquarters – 120 Driver License Field staff - 529 School Bus and Traffic Safety Branch – 89 Traffic Records Branch - 35

License & Theft Bureau


05 - 06 06 - 07 07 - 08 08 - 09 09 - 10

Personnel $12,391,616 $16,309,993 $16,724,428 $14,032,546 $13,016,297

Operating $3,438,069 $3,584,621 $3,774,070 $4,244,917 $3,725,818

Total $15,829,685 $19,894,614 $20,498,498 $18,277,463 $16,742,115

# of Positions 277 343 276 275 250


34% - $1,269,375 LEO automobiles and travel expenses 30% - $1,119,223 LEO separation allowances

11% - $406,284 funds for other operations (e.g., special investigations, uniforms, etc.)

License & Theft Personnel include: 115 sworn law enforcement officers

135 civilian positions

10

License & Theft Bureau – Emissions Program

The License & Theft Bureau Emissions program is receipt-funded as $3.00 per vehicle emission inspection is placed into a dedicated, non-reverting account for program purposes.


05 - 06 06 - 07 07 - 08 08 - 09 09 - 10

Personnel $7,829,191 $9,406,310 $9,159,632 $8,659,702 $8,153,066

Operating $8,054,445 $8,154,486 $8,649,900 $14,990,485 $7,051,041

Total $15,883,636 $17,560,796 $17,809,532 $23,650,187 $15,204,107

# of Positions 161 161 163 163 178


64% - $4,497,144 Emission transactions (Verizon Contract) 15% - $1,027,437 LEO automobiles and travel expenses

11% - $748,140 LEO automobiles with radios

License & Theft Emission Personnel include: 81 sworn law enforcement officers

97 civilian positions

11

Driver License

• Primary responsibilities to

issue driver licenses,

commercial driver

licenses, driving permits,

ID cards; train driver

education instructors and

school bus drivers

• Central office staff --

administration, central

issuance, help desk, CDL,

school bus & drivers

education

12

Driver License Examiner Ratio Per

Office

1 examiner station 13

2-3 examiner stations 39

4-7 examiner stations 44

8 or more examiner stations 13

Driver License - Customer Service Wait Times at DMV Facilities

• DOT’s goal - average wait time of 15 minutes or less for

each customer.

• FY 2008-2009 average wait time was 17.55 minutes.*

• FY 2009-2010 average wait time was 26.03 minutes.*

• Budget cuts beginning October 2008 increased wait times.

Offices with examiner absence closed because relief

workers could not be paid overtime or travel expenses to

travel to the offices needing assistance.

• We expect wait times to improve with new DL system in

Fall 2011.

*These transactions were measured in 60 Driver License offices

which have Nemo-Q technology (out of a total 111 Driver License

offices statewide)*

13

New Driver License System

• DMV is implementing an upgraded driver license system in

fall 2011 with improved security and administrative functions.

• The cost of each card to the division will increase by 29.5 cents,

from $1.825 to $2.12.

• Driver License issuances have decreased in recent years, so the

available appropriation for that function will cover the increased

card cost. However, if issuances increase, the current budget will

not be sufficient to cover the cost.

14

New DL System Improvements

Administrative/Customer Service

• Pre-enrollment to reduce front-end work at office

• Ability for customer to view forms and final card image

• Document and inventory management

• Audit trail

Increased Security

• Customer photo first step; follows through process

• Near real-time facial recognition

• Fraud pattern detection

• Laser engraved polycarbonate card with 3-D photos

15

Drivers Education Program

• The 2010 Budget Act directed OSBM to review the funding and

administration of the state's driver education program.

• One recommendation from that report was for DPI to develop a

standardized curriculum. DMV is now participating in the

curriculum workgroup.

• DMV also certifies instructors teaching driver education in the

public school system and those who take our commercial

instructor school, and checks the eyes of students who take

classes through the local school system

16

Vehicle Registration

• Primary responsibility to issue titles and registrations and renew

registrations

• These transactions through mail-in, Internet, two DMV offices

(Raleigh and Charlotte), 126 contract license plate agencies

(LPA), and 400 online auto dealers

• Also manages call center, special license plate program,

International Registration Plan (IRP), liability insurance tracking,

traffic records

• The largest expenditures of this program are employees salaries

and compensation to LPAs

17

License Plate Agencies

• Operate under contract with DMV

• Reimbursed standard transaction fees of $1.43 for registrations,

$1.27 for Highway Use Tax collection, and $1.00 for titles

• Allowed to charge $5-$7 for notary signatures

18

License Plate Agency Staffing

Transactions per

LPA

Number of

Branches

Number of

suggested

employees

Total

Tier 1 (up to 25,000) 3 2 6

Tier 2 (25,001-50,000) 10 3 30

Tier 3 (50,001-100,000) 26 5 130

Tier 4 (100,001 and up) 70 7 490

19

License Plate Agency Oversight

• DMV field supervisors audit documents, deposits, inventory;

address customer complaints

• Central office staff inspect work submitted to DMV

• Corrective actions -- 1) written notice; 2) discussion with field

supervisor of corrective action; 3) additional training or contract

termination

20

Vehicle Property Tax Collection

(HB1779)

• In 2005, legislation passed requiring DMV to collect county

and municipal property tax on vehicles.

• This will require DMV registration offices and contract

license plate agencies to collect and process much larger

sums of money.

• A penalty on late payments of property taxes is funding

startup costs. A per transaction fee paid by local

governments to DMV will cover ongoing costs.

• A number of challenges, including antiquated computer

systems and more complicated business processes than

expected, delayed implementation until FY 2013.

21

Vehicle Property Tax Collection

(HB1779) • With the agreement of stakeholders, the project was halted

while an assessment to determine the best business and

technical solutions was conducted. That assessment will

conclude at the end of this month.

• A likely technical solution is to develop a vehicle tax system,

including valuation, situs and bill payment functions, outside

of DMV’s existing mainframe. Some changes to the

mainframe will still be necessary.

• The steering committee is now considering what ongoing

business processes and oversight will be needed upon

implementation.

22

• For security and customer service improvements, DMV

needs to provide credit and debit cards as a payment

option, the Division only accepts these for online

transactions.

• Key challenges are security requirements of credit card

companies and funding to pay the transaction fees.

• Computer systems in field offices must have extensive

security upgrades, and staff need additional training,

• The technical changes to accept cards and to ensure

security compliance to the antiquated driver license and

registration mainframe systems would be cost prohibitive.

23

Payment Card Acceptance by DMV

Payment Card Acceptance by DMV

Expected Annual Cost to DMV

• 70% of customers would use credit or debit cards

• Vehicle Titling and Registration -- $22.8 million

• Driver License/ID Cards -- $1.7 million

• DMV would need an additional appropriation to cover these

costs.

24

License and Theft

Responsible For:

• Automotive Theft, Notice and Stored Vehicle Investigations

• Driver License Fraud and Identity Fraud Investigations

• Dealer Licensing and Investigations

• Automotive Salvage, Odometer and Title Fraud Investigations

• Licensing Vehicle Inspection Stations/Mechanics; Enforcing

Regulations

25

License and Theft

56 offices

(49 state-owned and 6 leased)

26

Field Offices Number of Personnel 43 1 – 4

5 5 – 10

7 12 – 25

Total 248

License and Theft Investigations

• 5303 Driver License, 600 arrests in 2010

• 20 Document Labs, 31 arrests in 2010

• 4 LPA closures, 7 arrests, 50 felony indictments in 2009-2011

• 36 active out-of-trust dealers with 277 victims

• Current FY showing a 21% increase in investigations since last FY

27

Vehicle Inspection Program

• In the past two years, DMV has made numerous improvements

to the vehicle inspection program.

• Beginning November 2008, all vehicle inspections are conducted

electronically. Previously, only emissions inspections were

electronic, and safety inspections were on paper.

• DMV can now track duration of an inspection, number of

inspection failures, and the reasons for failures.

• Central office staff audit twice yearly field staff oversight of

inspection stations.

28


(Cont.)

• The division has adjusted responsibilities for inspection

staff to better manage consistency, and we continue to

look at more efficient management of the program.

• DMV is looking at increased use of computer monitoring

of inspections to supplement our remote audit function.

• In 2010, state inspection technicians identified 401,172

safety failures while conducting a total of 7,828,622

inspections.

• Since a vehicle is required to pass an inspection before

registering, known safety failures must be repaired

before a vehicle is lawfully operated.

29


(Cont.)

• Preliminary evaluation of crash reports in 2010 shows a

reduction in the number of vehicles with defects being

involved in traffic accidents.

• DMV is working on reducing its dependency on third-

party vendors to run the inspection program. This

involves replacement of disparate computer systems,

ownership by the state of the inspection database.

• This enhancement will save DMV $6.5 million and

further the Division’s ability to provide program

oversight and report our enforcement efforts.

30

31

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

10000000

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Inspection Program Data System Historical and Projected Cost (FY 2006 through FY 2016)

Bladen County Hotline Positions New System Maintenance New System Project Cost

$6,345,047

$6,650,662

$7,168,917

$8,479,593

$6,543,591

$8,612,441 $8,639,352

$711,80 $711,80 $711,800

Projecting 89%

operational cost

reduction from

FY 2010

($5.8 million annual

$1,601,833

$5,746,99

$6,133,46

6

$6,522,26

7

$8,126,11

0

$6,197,14

4

$6,545,19

6

$6,371,1703

$700,000

DMV Hearings

• DMV conducts numerous hearings on complex issues such as

vehicle insurance, drunk driving, vehicle inspections, driver license

suspensions and medical review of drivers.

• Hearings may be in person, by telephone, or mail review

• 24 hearing officers conduct hearings in all one-hundred (100)

counties; 20 officers at DMV headquarters; 2 License and Theft

hearing officers (one Raleigh, one Charlotte); 8 insurance officers

(4 Raleigh and 4 throughout the state)

Hearings 2010 Total Hearings

Administrative 26, 283

Insurance 53,733

Station and Dealer 375

Medical 46,432 32

Division of Motor Vehicles · 17/02/2011 · Commissioner - 1 Assistant Commissioners - 2 Staff Support ± 4 Operations Section Personnel include: Director ± 1 Deputy Director ±

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