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. The Department of Motor Vehicles shall work to increase the use of alternative service delivery methods. As part of its effort to shift customers to internet usage where applicable, the department shall not charge its customers for the use of credit cards for internet or other types of transactions. To mitigate the impact of the federal Real ID Act of 2005 on customer service centers, the Department of Motor Vehicles shall promulgate policies to direct vehicle registration renewal transactions to more efficient delivery channels pursuant to the provisions of § 46.2-214.2, Code of Virginia. In addition, notwithstanding the provisions § 46.2-342, Code of Virginia, and in accordance with the newly released regulations governing the Real ID Act of 2005, the department may issue driver's licenses and identification cards with photographs in color or black and white.

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 base compensation for DMV Select Agents shall be set at 4.5 percent of gross collections for the first $500,000 and 5.0 percent of all gross collections in excess of $500,000 made by the entity during each fiscal year. The Commissioner shall supply the agents with all necessary agency forms to provide services to the public, and shall cause to be paid all freight and postage, but shall not be responsible for any extra clerk hire or other business-related expenses or business equipment expenses occasioned by their duties.

E. Out of the amounts identified in this Item, $297,052 the second year from the Commonwealth Transportation Fund shall be paid to the Washington Metropolitan Area Transit Commission.

F. In order to ensure the both the cost-effectiveness and equitable availability of DMV services, the Commissioner shall review the locations and workloads of the existing DMV Customer Service Centers and DMV Select Offices.  Prior to making any changes to the operations of the DMV Select program, the Commissioner shall consider: (i) the proximity of any DMV Select Office to a DMV Customer Service Center, (ii) the workloads and wait times at Customer Service Centers and DMV Select Offices in close proximity to one another, (iii) the length of time any existing DMV Select Agent has served in that capacity, and (iv) the ability of a DMV Select office to meet both the current and future business needs of the program as determined by the Commissioner.  Upon completion of this review, the Commissioner shall transmit his findings to the Chairmen of the House and Senate Transportation Committees, and the Chairmen of the House Appropriations and Senate Finance Committees no less than 30 days prior to the implementation of any substantial policy changes.