Reilly Bill Proposes DMV Transactions at Town Halls
House Bill No. 5708, sponsored by Reilly, would give cities and towns in Rhode Island the ability to issue and renew drivers’ licenses on behalf of the state’s Division of Motor Vehicles.
Why not allow some DMV transactions to happen right at the local Town Hall or City Clerk’s office?
That’s a question state Representative Daniel P. Reilly (R-Dist. 72 Portsmouth, Middletown, Newport) hopes to explore as the bill he introduced last week makes its way through the General Assembly, so far with bipartisan support. House Bill No. 5708, sponsored by Reilly, was also co-signed by Representatives James N. McLaughlin (D-Dist. 57, Central Falls, Cumberland), Michael J. Marcello (D-Dist. 41, Scituate, Cranston), Raymond A. Hull (D-Dist. 6, Providence), and John A. Savage (R-Dist. 65, East Providence).
If made into law, the measure would give cities and towns throughout Rhode Island the ability to issue and renew drivers’ licenses on behalf of the state’s Division of Motor Vehicles (DMV).
Rhode Island residents have for years complained about the unreasonably long wait times and inconvenience experienced when doing business at the various branches of the DMV, Reilly said on Monday, noting how staff reductions and DMV branch closings in recent years have only put a greater strain on the remaining DMV offices and customers alike.
Reilly, a freshman legislator, said this latest DMV bill has become a priority for him.
“Under my proposal, obtaining a driver’s license would no longer require a missed day from work, but rather a simple stop at the local city or town hall," he said. "Currently, local AAA offices can perform this relatively simple task so I see no reason not to allow willing municipalities to do the same."
Since the Middletown DMV branch closed in early February, Reilly has called on the state government to implement other temporary measures to continue providing DMV services on Aquidneck Island until a new location reopens. In spite of state officials' insistance that a new location is actively being sought to reopen by early summer, Reilly said he also remains somewhat skeptical about whether one will reopen at all.
"I might be a bit cynical, and I'd love to be proven wrong, but they've been saying for years that they'd love to see that location closed," he said.
House Bill No. 5708 would not require the set-up of a mini DMV branch in each of Rhode Island’s cities and towns, he emphasizes, but would give each municipality the option to begin offering the driver's license services, similar to how some license and registrations services are already available to members of the AAA Auto Club locations throughout Rhode Island.
“I have a AAA membership and I love it and I think it’s great that they continue to do that,” Reilly said. “But that’s a membership I already pay for, and as taxpayers we shouldn’t have to pay a separate fee in order to sidestep the DMV line, if we can do it in some other way that’s convenient to everyone.”
If drivers licenses are successfully managed at town and city clerks' offices, he envisions expanding the program to other DMV services, although he cautioned that some transactions, such as special licenses, would likely have to remain under the domain of the current DMV offices.
In the hearings and testimony that will follow in coming weeks on th bill, legislators will hear from DMV officials and town clerks, and will likely look at the examples set by other states. Reilly himself has already begun looking at how some other states now offer DMV transactions both online and through private business partnerships, where the businesses collect small surcharges from each DMV transaction.
Similarly, an incentive system could be put in place to either share some of those revenues with cities and towns or impose a small surcharge that each municipality could collect, Reilly said.
If the bill becomes law, Reilly said he’s not expecting all of Rhode Island’s 39 municipalities to sign on, but is hopeful that some towns will see it as an opportunity.
“Some of the busier cities and towns might say, ‘we just don’t have the manpower to support this,’ but other towns, where it’s harder for the residents to get to the DMVs that are further away, as is the case on Aquidneck Island right now, those towns might find they already have the staff and they might welcome any revenue that's shared,” Reilly said. “The important thing is that it’s enabling legislation, in that it doesn’t require anyone to do this, but if they wanted to do it, they could tie into the DMV system, with minimal upfront costs for a little bit of equipment that would be immediately recouped by the fees or revenues collected.”
Reilly’s bill has been referred to the House Committee on Municipal Government for a hearing and consideration.
The full text of this legislation is available to view or print in the PDF file above.
Local Yocal
3:21 pm on Tuesday, March 15, 2011
Excellent idea, however many towns including aquidneck island has town hall issues. The increase of residents coming in would greatly increase. Also the true ridiculous lines come from registration lines.
Doug Smith
4:41 pm on Tuesday, March 15, 2011
An interesting idea if the Towns are provided the resources to do this. Maybe we could also look at privatizing the DMV to companies like AAA for all vehicle registration and license functions. This would add some competition to the mix to make the services "user-friendly" and cut the need for DMV State employees - or even a DMV at all!
Jeff Lewis
5:54 pm on Tuesday, March 15, 2011
I like your creative thinking here Doug. I can’t be sure that competition would lessen the cost burden significantly though. Given the amount of DMV business in Rhode Island, how many private companies could occupy that business space? The other potential sticking point I see is this. The savings gained in having a lower compensated workforce for a privatized DMV (workforce is largest cost - by far), would be replaced by another effective cost -- profit. The private companies already know you'll pay the current fees for DMV related items. Knowing that you’ll be saving in taxes, what is the incentive not to escalate them?
It’s not too dissimilar from the privatized model of oil companies really (just as a comparator). There are many manufacturers, so competition is high. However, price is dictated as much by demand, as it is delivery cost. With both oil and DMV services, you can ensure that demand will always be high. The privatized price for consumers will always follow the demand curve. Given the margins on oil products, we can safely say that competition does not always drive down costs.
I know a private company can do the job better, faster, and cheaper than DMV. What I don’t know is if there’s value in it for the taxpayer. Controls on fees are primitive at best with DMV today (basically taxpayer noise). However, with a privatized model, there’s really no controls on DMVs fees – outside of the limit of what people are willing to pay (demand).
Thoughts?
Portsmouth Neighbor
6:47 pm on Tuesday, March 15, 2011
Dan,
Kudos for thinking outside the box!
Jeff Lewis
7:54 pm on Tuesday, March 15, 2011
I think this is good creative thinking by Mr. Reilly, but we'd have to see the complete model to see if this is beneficial to the towns. AAA offers this service to support their business model (they have a subscription model and need to provide valuable services to justify the membership fee). Therefore, they accept the resource expense that goes along with the service.
From a value standpoint, it would be interesting to know what cost burden the town would have to bear to offer this service (headcount, logistics, and/or CapEx). What cost would the townspeople be willing to incur to have this service? It would be nice if the state would offer cost relief to the towns for doing this, but I don't think they can - unless they shut down more DMV offices down. I'm also wondering if the state would allow the towns to keep a portion of the fees (revenue), to offset the extra burden on the town, but I can't see that happening. Then there’s the investment required in systems/infrastructure to enable the town to do "DMV" processes. Who pays for that?
While this idea may have great merit, I would hope that Mr. Reilly would develop the business case, (and share with the public) prior to driving a bill that would consume resources at the state house. I don't mean to be negative or petty here - but just a realist. While perhaps a nice service, I am concerned that this is a "priority" for any one of our legislators, given our current state.
Doug Smith
9:04 am on Wednesday, March 16, 2011
Valid points Jeff, and obviously both concepts would need to be studied in detail before they can be taken seriously. I'm just wondering if the state of RI could figure out a way to privatize some administrative functions, subcontracting them to commercial companies, who could likely provide the same services more efficiently and still make a profit. This would cut the number of employees (and their attendant benefits) on the state payroll and lessen the need for the state to incur liabilities for pensions and other benefits. This idea would also need to be thoroughly examined, but if the US military can outsource some services to private companies, there is no reason that the state could not do likewise. The DMV/AAA model might be a place to start.