JUNEAU (AP) - A plan by the governor to close six Division of Motor Vehicles offices and contract with private companies to provide services has been met with resistance from the state Legislature.
Under the proposal, the state would save money but the public would have to pay extra fees charged by the private companies for licenses and registrations.
The plan by Gov. Mike Dunleavy’s administration to close the offices in Haines, Eagle River, Tok, Homer, Delta Junction and Valdez would save about $500,000 a year in operating costs, according to the administration’s calculations.
About 27,000 people live in those six community regions, the Department of Administration told lawmakers.
The proposal, unveiled in December, would encourage companies to start a public-private partnership with the state, Department of Administration Commissioner Kelly Tshibaka told lawmakers in a pair of meetings this month.
Residents could have to use the state’s online services or, if they choose or are required to conduct their licensing in person, would have to pay any fee charged by the private operator or travel to a state office that is open.
First-time licenses and renewals for seniors over age 68 require an in-person application.
In addition, there are limits in state law as to what services private operators are allowed to perform. “For example, I have a (commercial driver’s license) and I can’t renew that online, nor can I renew it through one of the private companies,” North Pole Sen. Robert Myers said.
State lawmakers across party lines have pushed back against the governor’s proposal.
Rep. Zack Fields has introduced legislation that would disallow the division from closing any office that had been open on Jan. 1 in a community with at least 850 residents.
Meanwhile, Homer Rep. Sarah Vance introduced legislation with bipartisan support that would repeal the requirement for seniors and others to visit offices in person to renew their driver’s licenses, which could allow them to use the state’s online services.
Residents who want to get a federally required REAL ID license must also visit an office in person.
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