DMV, controller at odds over suspended licenses

Wednesday, July 2, 2003 | 9:48 a.m.

CARSON CITY -- Department of Motor Vehicle officials and the state controller are at odds over whether the DMV will continue suspending driver's licenses and withholding vehicle registrations from people who haven't settled their bad check charges with the state.

The 2001 Legislature authorized a debt collection trial system sought by state Controller Kathy Augustine, but it is due to expire in October because a bill to extend it failed. Augustine says that means the DMV won't continue imposing the sanctions for bounced checks.

But Tom Jacobs, a spokesman for the motor vehicle department, said its system to collect on bad checks has been effect since 2000 and has nothing to do with the Augustine program. So even if the Legislature fails to extend Augustine's debt collection pilot program, the DMV will continue to suspend driver's licenses and will refuse to renew vehicle registrations unless the debts to the DMV are settled.

Augustine responded that Jacobs is "giving out bum information." She said she and former state Motor Vehicles Director Richard Kirkland started the debt collection efforts.

"They were not doing anything before that" to collect the money due on bogus checks, Augustine said.

Augustine suggested last week that if the Legislature does not extend the debt collection program, she would lose a "hammer" to force people to pay their debts.

The motor vehicle system provides that if it receives a bogus check, the check is run through the bank a second time. Jacobs said 50 percent of the checks clear on the second go-around. If the debt remains unpaid, the individual is sent a letter telling him or her of the consequences.

Failure to pay a check on a driver's license results in a suspension of the license. Those who don't pay on a vehicle registration will not be able to renew their registration.

The bad debts are then turned over to Augustine's office, who has the duty to collect for the state. Jacobs said 200 to 250 checks a month are forwarded to Augustine's office.

In the 2000 fiscal year, Jacobs said Augustine collected $528,025 for the department.

Jacobs said there will be a minor impact if the Legislature does not extend the trial program. It allowed the department to take sanctions against those who gave bogus checks to the state Division of Wildlife. But there were only about 30 to 40 checks over the past two years and only 18 of them resulted in some type of action.

Augustine this year sought to expand the pilot program to include all state agencies that receive bad checks. Those agencies would, under her proposal, turn the names over to the Department of Motor Vehicles for appropriate action.

But the Legislature balked. Lawmakers said she never presented evidence that would support an extension and expansion of the present program. They also complained that in some cases a person needed a car to get a job so they check could be made good.