DMV License Agents (language only)

Item 538 #1s

Language
Page 415, after line 33, insert:
"3. Notwithstanding the provisions of §46.2-205 of the Code of Virginia and where feasible and cost efficient to the Department, the Commissioner of the Department of Motor Vehicles may compensate agencies appointed pursuant to §46.2-205 that use electronic processing of agency transactions directly to the Department at a rate of three and one-half percent of the first $1,000,000 of gross collections made by the agency and one percent of all gross collections in excess of $1,000,000 made by the agency during each fiscal year.
Notwithstanding the provisions of §46.2-205, for all other license agencies the compensation shall be three and one-half percent of the first $500,000 of gross collections made by the agency, two percent of the next $500,000 of gross collections made by the agency, and one percent of all gross collections in excess of $1,000,000 made by the agency during each fiscal year."

Explanation
(This amendment authorizes DMV to compensate license agencies established pursuant to § 46.2-205 of the Code of Virginia at a fixed rate of three and one-half percent of the first $1,000,000 of gross collections made by the agency and one percent of all gross collections in excess of $1,000,000 for those agencies that are equipped with automated computer systems that electronically process transactions to DMV. Only about ten agents process transactions electronically to the department, and this amendment would serve as an incentive for license agents to use electronic processing. Other license agencies without automated equipment would be compensated at the rate of three and one-half percent of the first $500,000 of gross collections, two percent of the next $500,000 of gross collections, and one percent for gross collections in excess of $1,000,000 made during the fiscal year. Currently, license agents are compensated on a sliding scale of three and one-half percent for the first $250,000 of gross collections, and three percent for the next $250,000. This amendment would provide additional compensation for electronic processing as an incentive to encourage this more efficient means of processing agency transactions.)