Division of Motor Vehicles Commissioner Wayne Goodwin defended the DMV’s handling of two driver’s license controversies in his testimony before the House Oversight and Reform Committee Wednesday. Goodwin and Chief Deputy Commissioner Portia Manley told committee members the unusual process to select a driver’s license printing vendor was appropriate. Goodwin also addressed questions about a budget provision to extend the eight-year driver’s license renewal period to sixteen years.

Sixteen-Year Driver’s License Renewal Period

 The REAL ID Act of 2005 requires that state driver’s licenses cannot be valid longer than eight years. Goodwin said he did not realize this until after DMV made its legislative request in February 2023, but he was less than clear why legislators were not made aware of this. He said the original request was an attempt to reduce wait times at DMV offices. Goodwin did not directly address the portion of the provision that would allow unlimited online renewal of driver’s licenses, merely stating that a new photo is required every sixteen years.

Rep. Jeff McNeely (R-Iredell) pressed the timeline of awareness and communication.

McNeely, chair of the Transportation Committee, said he did not receive any communication asking that the provision be removed. Members of the committee asked for email communications to track the chain of requests.

“Lack of communication to the chairs is the problem,” McNeely said. “More eyes could have realized what was happening and made sure we corrected this. In the future we need to broaden our net as we cast it.”

Driver’s License Issuance Contract

Goodwin testified that appropriate procedures were followed in selecting CBN Secure Technologies as a new vendor to produce North Carolina’s driver’s licenses.

Only a small number of companies produce credentials that meet federal, state, and American Associate of Motor Vehicle Administrators (AAMVA) requirements. He explained that DMV chose to interview three of five companies that met its initial criteria. After site visits and presentations in Raleigh, DMV officials chose CBN based on their secure technologies.

Goodwin defended the process DMV used to select the company. Citing Session Law 2021-134 (HB650) that allows DMV to exempt five information technology projects from DIT oversight and requirements to increase the speed of technology modernization projects.

North Carolina General Statute 20-7(n)(4) requires that a driver’s license must contain a color photograph. Goodwin testified that CBN can print in color, but the company prefers black-and-white based on industry standards and security best practices. He said passports and “half” of U.S. state driver’s licenses are black-and-white.  Goodwin said DMV’s request to add the words “or monochromatic” was rebuffed by “DOT leadership.”

Rep. Allen Chesser (R-Nash) raised concerns about data security given the CBN Secure Technologies is a global company. He further urged caution and a full, unrushed vetting process because of the importance of security.

Goodwin reiterated that the process used for selecting CBN Secure Technologies was in accordance with state law and included representatives from multiple departments. “No one person made the decision,” he said. “The decision relied upon the 2021 law…[was] discussed at the meetings earlier this year, is also based on recommendations of subject matter experts, it tracked DOT procurement and RFP process, and followed the direction, approval, and blessing of then-Secretary Boyette and our legal team.”

More to Come

Committee members were not satisfied with Goodwin and Manley’s responses on either issue. They requested more documentation of the procurement process and of communications related to the legislative provision. Chairman Harry Warren said the Committee also hopes to have the Commissioner back to discuss customer service at driver’s license offices.

On Tuesday, May 2, House Oversight and Reform Committee members pursued allegations by State Bureau of Investigation Director Bob Schurmeier of overreach and strong-arming by Governor Roy Cooper’s office.

Director Schurmeier testified in March that the governor’s Chief of Staff Kristi Jones and General Counsel Eric Fletcher attempted to interfere in his personnel decisions and intimidate him to resign. He also testified that SBI General Counsel Angel Gray was unsure what responsibilities she had either to the Bureau or to the governor.

Jones, Fletcher, and Gray appeared before the Committee to address the allegations. But the hearing ended with more questions than answers. The three cited rules of professional conduct and other impediments that left them unable to discuss or refute any of the allegations. Despite this, they did mark areas of disagreement with Schurmeier’s testimony and made clear statements that they did not engage in anything that could be deemed inappropriate.

Gray stated that, contrary to Schurmeier’s testimony, she was not conflicted or confused about her role as general counsel of the SBI. “My job is to give advice to my client to make the best decision possible.”

Likewise, Jones, amidst repeated attempts to divert the Committee’s attention, also denied Schurmeier’s accusations of intimidation and interference. She said her relationship with the director was collaborative on hiring practices, training, recruitment, and retention.

Governor Cooper nominated State Capitol Police Chief Roger “Chip” Hawley as SBI director when Schurmeier’s term ends. When questioned by Representatives, Fletcher and Jones seemed confused about the process as well as the provisions in place if the successor had not been confirmed and duly qualified.

Schurmeier testified to meetings with Jones and Fletcher in late 2022 where they asked him to resign and threatened him with an investigation due to discrimination complaints. Jones did not dispute that the meetings happened but that he mischaracterized those meetings and the nature of the look into SBI practices.

Co-Chair Jake Johnson brought to light email communications that did not include Schurmeier between Gray and governor’s staff on SBI matters dating back to 2019. Some of the emails included little more than a personal cell phone number and an invitation to continue communication that way. They suggested significantly more contact between Gray and the governor’s staff without Schurmeier’s knowledge than they had testified to earlier in the hearing.

After the hearing, Johnson said, “I think it is extremely troubling that the general counsel of an independent state agency, and the chief of staff of a sitting governor would be discussing personnel and who knows what other issues behind the back of the sitting SBI director. This testimony raises more questions than answers and certainly merits a follow up.”

Co-Chair Harry Warren called for further investigation in his closing statement and expressed his frustration afterward.

“Interference in personnel matters is much more fundamental than interference in any specific case at the SBI. It is extremely unfortunate that the governor’s office chose not to answer committee members’ pertinent questions. Hopefully, they will be more forthcoming as the committee continues to investigate Director Schurmeier’s allegations,” Warren said. “North Carolinians are entitled to the truth.”

The transcript from the hearing can found here.