As complaints mount over long waits, DMV head questioned by NC lawmakers

Lawmakers began questioning the head of the North Carolina Division of Motor Vehicles Thursday, an interrogation that comes as the division faces mounting delays in issuing driver licenses and identification cards — and as lawmakers seek more control over who runs the division.

DMV Commissioner Wayne Goodwin, who underwent a grilling by Senate lawmakers in February, testified before the House Oversight and Reform Committee Thursday. He updated lawmakers on wait times, unfilled positions, efforts to protect customers from identity fraud and customer service amid lengthy delays for new licenses.

Problems with a private contractor that makes physical licenses and ID cards for the state have delayed delivery of new cards to customers, Goodwin says. A typical 15-day turnaround to receive IDs in the mail has jumped to roughly six weeks, the DMV said last month. At the time, there were about 50,000 per week added to the backlog across the state, according to the state DMV.

Rep. Harry Warren, the Salisbury Republican leading the hearing, said he was concerned not just about the delays but also for their potential effect on the November elections. This is the first major election in which voters will be required to show photo identification — a scenario that could lead to a rush of people trying to get new or updated driver's licenses.

Rep. Sarah Stevens, R-Surry, said she knows the problems from personal experience. She went to update her license photo earlier this year, she said, due to losing her hair in cancer treatments. She was given a temporary paper license — which isn't allowed to be used for voting — and waited nearly two months for the DMV to send her a real license.

Goodwin told lawmakers Thursday that the backlog has been improving and is on track to be fully resolved by the end of the month.

An executive with the private license contractor, Idemia, was also called to testify Thursday. Lisa Shoemaker, a vice president with the company, blamed the DMV. Tensions between the two quickly erupted at the meeting, with Shoemaker making it clear the company was upset that the DMV has begun seeking other companies to contract for certain tasks.

Contractor pushes back

After Goodwin said the DMV is looking to other companies to help resolve the issues he blamed on Idemia, Shoemaker responded the root problems began inside the DMV. She said Idemia tried offering solutions, which the DMV ignored. Goodwin shot back, saying Idemia's work ranged from sloppy to fundamentally flawed.

Some driver's licenses had to be destroyed since Idemia printed "State of Illinois" on them instead of "State of North Carolina," Goodwin said. And in many cases the company seemed unable to deliver proper photos of people with darker skin. Many photos of non-white people were so poorly done, he said, it was impossible to tell who was actually in the photo.

"I am thankful we are moving to a new company," Goodwin said.

Shoemaker said Idemia — a French company specializing in facial recognition software that works with most states, as well as the U.S. government — is the best and most experienced option in the field. She suggested the problems won't stop even if they end up losing their contracts with North Carolina.

“The DMV didn't choose to take Idemia’s proposed solution to address this backlog," she told lawmakers.

Rep. Maria Cervania, D-Wake, tried to re-focus the hearing on what is being done to address the problems, regardless of the antagonistic stance of the state and its contractor against one another. "I want responses that are business, not feelings," she said.

Rep. George Cleveland, R-Onslow, said he was stunned that the DMV and Idemia were openly fighting and wondered why there didn't seem to be anything written into their contract — which was first signed in 1996 and updated again in 2012 — on dealing with the performance issues. "This boggles my mind," Cleveland said.

Cleveland also at one point said he believes the efforts the DMV did undertake to fix the backlog may have broken state law, by opening a second license production facility. Goodwin told him they were aware of legal issues and believe they always worked within the law.

After the hearing the DMV sent a more thorough statement to WRAL, saying that they interpret the law to mean there can only be one vendor making licenses, but that there can be multiple factories: "DMV’s current production model meets the intent of this statute and the needs of the people of North Carolina," the division wrote.

The DMV has been pushing for other changes, including the implementation of digital licenses and ID cards, which would allow customers to renew or update without standing in long lines or taxing in-person staff. Goodwin said the ability to make appointments online is just one of a series of modernization efforts that he thinks the DMV deserves credit for.

Appointment power

Much of the DMV's operations are already run by private contractors. Concerns about the recent long wait times and lack of staffing have caused some lawmakers to push for privatizing more of the DMV’s functions. They’re also contemplating ways to siphon more appointment powers from the governor.

A proposal discussed Wednesday would give lawmakers some say in who gets the commissioner job. Under House Bill 309, the governor would nominate a candidate to become DMV commissioner, but the nominee would need approval from the state Senate to be seated in the position.

Sen. Michael Lazzara, R-Onslow, who’s leading the effort, presented the idea to the Senate Transportation Committee meeting on Wednesday.

“Each new administration blames a lack of progress on its predecessor while failing to make measurable improvement during their tenure,” Lazzara said. “We as legislators need tools in our toolbox to provide proper oversight for this division.”

Lazzara faced pushback over the proposal from from Democrats in the Senate Transportation Committee on Wednesday.

“This is an erosion of authority,” said state Sen. Julie Mayfield, D-Buncombe.

During the committee meeting Wednesday, state Sen. Mary Wills Bode, D-Wake, asked Lazzara if he is interested in confirming leaders of other state government divisions with budgets similar to that of the DMV. Lazzara said no and accused Bode of overlooking the main issue: The DMV stands out, he said, because people have complained about it for a long time.

State Sen. Buck Newton, R-Wilson, said the senate already has the opportunity to confirm the governor’s nominee to direct the State Bureau of Investigation. “This isn’t all that different,” he said. “We’re talking about a critical function that could be, policywise and leadershipwise, really detrimental to the public if it’s not well-run.”

State Sen. Mike Woodard, D-Durham, said he feared Lazzara’s bill could set a precedent where legislators change the confirmation rules for government officials that they don’t like.

“I see a very slippery slope here,” Woodard said.

He added: “I just don’t think it’s our job to go into these agencies and start picking these division heads because we have questions of performance about a commissioner or a division head. We need to hold the governor and the secretaries accountable to hire and fire their people.”

LPAs and kiosks

In prepared remarks submitted to the committee ahead of Thursday's meeting, Goodwin also updated lawmakers on third-party license plate agencies, or LPAs, which are small businesses that contract with the state to handle license plate purchases and replacements.

Several LPAs were shut down by the DMV in recent years due to contract or legal violations. There are 129 LPAs, but only 121 are currently open. At least seven offices have opened this year. And at least seven more are expected to open this year, according to Goodwin’s prepared remarks.

Goodwin also provided updates on the performance of self-serve DMV kiosks, which became available to customers in February at three Harris Teeter grocery stores in Raleigh, Fayetteville and Charlotte. The kiosks allow drivers to renew their licenses or conduct other DMV business at the kiosks. Through May 29, about 2,000 people had completed transactions at the kiosks, according to Goodwin's prepared statement.