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Could privatizing North Carolina's DMV solve customer service woes?

North Carolina lawmakers are considering privatizing some of the DMV's functions, including branch operations and software upgrades, to improve customer service.
Posted 2024-02-21T22:40:26+00:00 - Updated 2024-02-22T00:31:13+00:00
NC Republican leaders push to privatize DMV in North Carolina

North Carolina lawmakers are looking at ways to improve customer service at the Division of Motor Vehicles [DMV}.

It includes the possibility of having the private sector handle some of the DMV's duties.

State House and Senate Republican leaders say they don't know yet whether fully privatizing the DMV would be a good idea. However, they say something has to change because what's in place now isn't working.

Appointments at DMV offices in the Triangle are booked up months in advance. Taking a chance on getting a walk-in spot can mean hours of waiting, too, missing work or school.

Some state lawmakers think privatization might be the answer.

A study is taking place right now to see if it’s feasible to contract out some or all of the DMV’s current functions in North Carolina. That study, conducted by legislative staff, is set to completed by May.

"It’s just a lot of frustration," said Sen. Michael Lazzara, R-Onslow. "And who gets the calls? We get the calls."

Lazzara has heard a LOT from his constituents about these problem. So have other legislators, he said. He believes the private sector would handle customer service more efficiently, saving the state money. License plate agencies are already mostly privately run, as are inspection stations, and Lazzara said that has worked well for the most part.

Several years ago, he said, state lawmakers gave the DMV $90 million dollars to modernize its extremely outdated software systems. But that still hasn’t happened.

“This is not an attack on the agency,” Lazzara said. “It's just we're at a point where we've got to make some changes. We've got to figure out how we can deliver a service more efficiently and effectively. And that's our job.”

Privatization would be complicated. The DMV manages a lot of sensitive data that’s federally required to be kept confidential. The agency also interfaces with voter registration and criminal records. Only one state has fully privatized its DMV: Hawaii.

The study is expected to be finished by May.

This year is a short session, Lazzara said says there may not be time to do a full-scale overhaul of the agency until next year's session.

The DMV declined WRAL News’ interview request for this story. However, a DMV spokesperson provided information on efforts to improve customer service.

DMV spokesman Marty Homan told WRAL Wednesday that the DMV has entered an agreement with the state of Arizona to replace its systems with an updated system Arizona is making available at no cost. Several other states are also adopting Arizona's software. The move is expected improve customer service, Homan said.

The state's DMV will also seek consultants to assist with implementing this new modernized system utilizing the funding allocated by the legislature. But he cautioned it will likely take years to fully transfer all the data and operations.

Also, the North Carolina DMV is planning a pilot program for self-service kiosks at some grocery stores. The program was initially set to launch last fall, but Homan said it will roll out in the coming weeks. The kiosks will allow customers to obtain DMV services outside of normal office hours.

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