{"id":829,"date":"2024-06-10T14:04:13","date_gmt":"2024-06-10T14:04:13","guid":{"rendered":"https:\/\/sites.ncleg.gov\/houseoversight\/?p=829"},"modified":"2024-06-10T14:05:55","modified_gmt":"2024-06-10T14:05:55","slug":"committee-members-press-dmv-on-pattern-of-questionable-interpretation-of-laws","status":"publish","type":"post","link":"https:\/\/sites.ncleg.gov\/houseoversight\/2024\/06\/committee-members-press-dmv-on-pattern-of-questionable-interpretation-of-laws\/","title":{"rendered":"Committee Members Press DMV on Pattern of Questionable Interpretation of Laws"},"content":{"rendered":"<figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1601\" src=\"https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-1-scaled.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" style=\"object-fit:cover;\" srcset=\"https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-1-scaled.jpg 2560w, https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-1-300x188.jpg 300w, https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-1-1024x640.jpg 1024w, https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-1-768x480.jpg 768w, https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-1-1536x961.jpg 1536w, https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-1-2048x1281.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n<div class=\"wp-block-post-date\"><time datetime=\"2024-06-10T14:04:13+00:00\">June 10, 2024<\/time><\/div>\n\n\n<p>A hearing that began with conflicting stories between the Department of Motor Vehicles and a vendor ended with questions of DMV\u2019s compliance with state law. Along the way, members had many questions for DMV Commissioner Wayne Goodwin and Idemia North America Vice President for Global Corporate Relations Lisa Shoemaker during the Thursday, June 6 House Oversight and Reform hearing.<\/p>\n\n\n\n<p>From 6:45 on February 15 to 5:45 on February 20, DMV software improperly allowed 2,136 customers to renew their licenses. By the time DMV recognized the problem, its vendor Idemia had already printed many of the requested licenses. Idemia and DMV blamed each other for the eventual decision to find and retrieve the problem cards from among 33,000 printed at the same time. Idemia halted production to conduct the search and did not resume until March 4. Over the next few weeks, the backlog from missed production days and high demand for IDs grew to more than 350,000. Some people were waiting two months to receive their credentials.<\/p>\n\n\n\n<p>Although DMV and Idemia disputed each other\u2019s interpretations of events, both agreed that Idemia will be back on track by June 30. In addition to the 10,000 daily units Idemia produces in Sacramento, California, the company expanded production to its Springfield, Illinois, plant on May 13.<\/p>\n\n\n\n<p>Committee members targeted their questions on the legality of this decision. Chair Harry Warren (R-Rowan) cited Commissioner Goodwin\u2019s May 6 letter to all members of the General Assembly. \u201cAs you know,\u201d Goodwin wrote, \u201cthe Division of Motor Vehicles (\u201cDMV\u201d) is required to have all credentials produced and issued from a central location. N.C. GEN. STAT. \u00a7 20-1(c1)(5) [<a href=\"https:\/\/www.ncleg.gov\/EnactedLegislation\/Statutes\/PDF\/BySection\/Chapter_20\/GS_20-7.pdf\">N.C. GEN. STAT.\u00a7207-(f)(5)<\/a>].\u201d<\/p>\n\n\n\n<p>At the hearing, DMV debated the meaning of \u201ccentral location\u201d while also acknowledging that the law should be changed to accommodate the transition between two vendors. Chairman Warren asked Commissioner Goodwin whether he had asked for a change in the law, recognizing the challenges it presents. Rep. George Cleveland (R-Onslow) also raised concerns about DMV\u2019s willingness to solve one problem by selectively interpreting the law. Goodwin argued that central location could mean \u201cone company.\u201d Cleveland responded, \u201cWhen Idemia opened another facility, they broke our state law, and you, I understand, did nothing about this.\u201d<\/p>\n\n\n\n<p>Rep. Allen Chesser (R-Nash) joined Cleveland and Warren in questioning DMV\u2019s interpretation of state law. Chesser asked about DMV\u2019s contracting exemption under <a href=\"https:\/\/www.ncleg.gov\/Sessions\/2021\/Bills\/House\/PDF\/H650v6.pdf\">HB650 (SL 2021-134)<\/a> and its willingness to sign a contract for driver\u2019s license production that conflicted with <a href=\"https:\/\/www.ncleg.gov\/EnactedLegislation\/Statutes\/PDF\/BySection\/Chapter_20\/GS_20-7.pdf\">General Statute \u00a720-7(n)(4)<\/a> which specifies a physical license must include a color photo. Counsel Drew Marsh wrote in his <a href=\"https:\/\/webservices.ncleg.gov\/ViewDocSiteFile\/87845\">April 12 response<\/a> to chairs of the Joint Legislative Transportation Oversight Committee, \u201c\u2026DMV had a good faith belief at the time prior to and shortly after entering the contract that the State might be amenable to amending that statute, if in fact it was necessary.\u201d<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"988\" src=\"https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-2-Chesser-1024x988.jpg\" alt=\"\" class=\"wp-image-832\" style=\"width:591px;height:auto\" srcset=\"https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-2-Chesser-1024x988.jpg 1024w, https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-2-Chesser-300x289.jpg 300w, https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-2-Chesser-768x741.jpg 768w, https:\/\/sites.ncleg.gov\/houseoversight\/wp-content\/uploads\/sites\/15\/2024\/06\/DMV-2-Chesser.jpg 1395w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Rep. Allen Chesser (R-Nash) discusses the new driver&#8217;s license design during the House Oversight and Reform Committee hearing Thursday, June 6, 2024.<\/figcaption><\/figure>\n<\/div>\n\n\n<p>Chesser held up a poster showing what the updated driver\u2019s license will look like. The license includes a small color photo on the back that required purchase of $3 million in additional equipment and led to a 13% increase in price per card to $2.91 from the originally contracted price of $2.55 per card.<\/p>\n\n\n\n<p>Although DMV\u2019s contract with Idemia and its predecessors dated back to 1996, Goodwin said, \u201cIt was our understanding that the legislature had changed the law previously whenever there was a change with contractors.\u201d<\/p>\n\n\n\n<p>\u201cChanging the law at a previous date doesn\u2019t mean you were in compliance with the current law,\u201d Chesser responded.<\/p>\n\n\n\n<p>With the disputes over the meaning of \u201ccentral location,\u201d the need for a color photograph on driver\u2019s licenses, and DMV\u2019s exemption from Department of Information Technology contracting procedures and oversight, Chairman Warren summed up his frustration: \u201cThe department sems to have a pattern of interpreting statute as it best fits your need.\u201d<\/p>\n\n\n\n<p>Idemia has sued DMV over its contract award to Canadian Bank Note Secure Technology, Inc. (CBN-STI). Any judgment in the lawsuit could affect DMV\u2019s ability to use the exemption. The transition to CBN should be complete by July 1, and with the backlog resolved, will settle for now the color photo requirement and the definition of \u201ccentral location.\u201d DMV has added another series of projects to replace its core systems for driver\u2019s licenses and vehicle titles under the HB650 exemption, so that controversy will continue as will the possible need to amend state law.<\/p>\n\n\n\n<p>While DMV was the focus of the hearing, members complained that other agencies have taken similar liberties with the law. \u201cIf you want to circumvent the law, counsel is a good way to go.\u2026 I see that being done. Not only in your organization, I see it in other agencies that I have the pleasure of overseeing, and it\u2019s something that really needs to stop,\u201d Cleveland said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A hearing that began with conflicting stories between the Department of Motor Vehicles and a vendor ended with questions of DMV\u2019s compliance with state law. Along the way, members had many questions for DMV Commissioner Wayne Goodwin and Idemia North America Vice President for Global Corporate Relations Lisa Shoemaker during the Thursday, June 6 House [&hellip;]<\/p>\n","protected":false},"author":59,"featured_media":831,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[1],"tags":[37,22,21,18,32],"class_list":["post-829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-dmv","tag-general-assembly","tag-legislature","tag-oversight","tag-warren"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>Committee Members Press DMV on Pattern of Questionable Interpretation of Laws - House Oversight and Reform Committee<\/title>\r\n<meta name=\"description\" content=\"A hearing that began with conflicting stories between the Department of Motor Vehicles and a vendor ended with questions of DMV\u2019s compliance with state law.\" \/>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/sites.ncleg.gov\/houseoversight\/2024\/06\/committee-members-press-dmv-on-pattern-of-questionable-interpretation-of-laws\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Committee Members Press DMV on Pattern of Questionable Interpretation of Laws - 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