Peng Zhang, director of Driver and Vehicle Services, presented multiple legislative proposals to the Senate Transportation Committee covering transaction reimbursement, rulemaking authority, credential renewals, dealer plate rules and background checks.

Deputy registrar reimbursements: DVS proposed authority to compensate full‑service providers (deputy registrars and driver’s license agents) for certain transactions that currently have no filing fee or where fees are waived. The reimbursements would come from the Driver and Vehicle Services operating account. Senator John Jasinski and others expressed concern that reimbursement should reflect the actual fee for the transaction rather than be prorated down.

Ignition interlock rulemaking: DVS requested explicit rulemaking authority and budget to manage the ignition interlock device program, including one additional staffer in Office of General Counsel and estimated administrative costs. The department estimated approximately $457,000 initially — about $133,000 in salary and the balance for rulemaking fees charged by the Office of Administrative Hearings. Senators and members raised process concerns and suggested legislation might be preferable to funded rulemaking.

Online renewals and CLP extension: DVS proposed allowing online renewals every other renewal cycle (effectively eligible every eight years to renew online using a previously taken photo) and projected roughly $2 million in additional revenue to the DBS operating account. The division also proposed extending the commercial learner’s permit (CLP) expiration from six to 12 months to align with federal standards and give new drivers more time to obtain a road test.

Plate replacement at transfer and dealer rules: DVS proposed mandating replacement of license plates at vehicle transfer to encourage timely titling and to avoid registration gaps; the department estimated revenue from increased plate transactions. DVS also proposed limits on the number of dealer plates, limiting dealer plate use to employees on a W‑2, and requiring broader federal background checks for dealer certification with a longer lookback period (to age 18).

Discussion and concerns: Senators emphasized impacts on deputy registrars, possible closures from expanded online renewals, the cost and public‑engagement limits of rulemaking, and practical implications for dealerships using loaner vehicles. Director Zhang said the department could follow up on fee levels and that certain proposals would raise revenue or reduce administrative gaps.

Next steps: DVS will provide bill language and further details to address senators’ concerns about fee levels, rulemaking scope, and local office impacts.