Authority: Title 46.2, Chapters 1, 2, 3, 6, 8, 10, 12, 15, 16, and 17; §§ 18.2-266 through 18.2-272; Title 58.1, Chapters 21 and 24, Code of Virginia. Title 33, Chapter 4, United States Code.

A. The Commissioner, Department of Motor Vehicles, is authorized to establish, where feasible and cost efficient, contracts with private/public partnerships with commercial operations, to provide for simplification and streamlining of service to citizens through electronic means. Provided, however, that such commercial operations shall not be entitled to compensation as established under § 46.2-205, Code of Virginia, but rather at rates limited to those established by the Commissioner.

B. In order the encourage the use of alternative service delivery methods, the Department of Motor Vehicles shall not charge its customers for the use of credit cards for internet or other types of transactions.

C. In order to provide citizens of the Commonwealth greater access to the Department of Motor Vehicles, the agency is authorized to enter into an agreement with any local constitutional officer or combination of officers to act as a license agent for the department, with the consent of the chief administrative officer of the constitutional officer's county or city, and to negotiate a separate compensation schedule for such office other than the schedule set out in § 46.2-205, Code of Virginia. Notwithstanding any other provision of law, any compensation due to a constitutional officer serving as a license agent shall be remitted by the department to the officer's county or city on a monthly basis, and not less than 80 percent of the sums so remitted shall be appropriated by such county or city to the office of the constitutional officer to compensate such officer for the additional work involved with processing transactions for the department. Funds appropriated to the constitutional office for such work shall not be used to supplant existing local funding for such office, nor to reduce the local share of the Compensation Board-approved budget for such office below the level established pursuant to general law.

D. The Department of Motor Vehicles is directed to implement, wherever possible, the recommendations of the Auditor of Public Accounts included in the study conducted pursuant to Item 2, Chapter 1042 of the Acts of Assembly of 2003. The Department of Motor Vehicles, in conjunction with the Auditor of Public Accounts, shall report to the Governor, the Secretary of Transportation, the Chairmen of the House Committees on Transportation and Appropriations and the Chairmen of the Senate Finance and Transportation Committees on the progress of the Department of Motor Vehicles' efforts to implement the cost methodology and productivity measures recommended by the Auditor of Public in his November 13, 2003, report by December 1, 2004. Such report shall include the department's evaluation of the variable costs of providing customer services via the various service delivery methods, as well as additional recommendations from the Auditor on the changes to the Department of Motor Vehicles' budget processes that will ensure that it reflects sound financial policy.

E. The Department of Motor Vehicles shall work with the Secretary of Transportation to develop performance goals and strategies that shall be submitted in the form of budget amendments for review and approval by the 2005 Session of the General Assembly. The goals and strategies shall be based on constrained assumptions of revenues and appropriations and shall address the major activities of the agency, including (1) driver licensing; (2) driver monitoring; (3) driver reinstatement; (4) vehicle titling and registration; (5) vehicle insurance monitoring; (6) dealer licensing and regulation; and (7) customer records and information.