California Republican gubernatorial candidate Steve Hilton unveiled a plan Tuesday to abolish the state's Department of Motor Vehicles, proposing to close its field offices and implement a decentralized system of local and private service providers. The proposal, part of Hilton's "make California affordable" agenda, aims to reduce bureaucracy and lower costs for drivers.
Hilton, who announced the plan outside the DMV's West Hollywood office, criticized the agency for its perceived inefficiency and poor customer service, calling it a "symbol of California’s bloated, costly, nanny state bureaucracy that treats people with complete contempt." His campaign estimates that capping annual vehicle registration fees at $73 would reduce revenue by approximately $8.3 billion per year. To offset this shortfall, the plan suggests reducing state spending on roads and shifting DMV functions to local governments and authorized private entities.
The proposal also includes limiting commercial driver's licenses to foreign nationals who meet English-language requirements. Unused DMV office spaces could potentially be converted into vocational training centers or sold.
California's current vehicle registration fees can vary widely, with standard passenger vehicles sometimes incurring several hundred dollars annually, and newer or higher-value vehicles potentially costing over $1,000. These fees include a base registration, highway patrol fee, transportation improvement fee, and local charges, along with a vehicle license fee based on a vehicle's depreciated value.
Hilton's plan emphasizes the need for secure record-keeping and legitimate licensing but asserts that these functions do not require the current system's in-person requirements and lengthy wait times, pointing to online services available in other states and countries.
The concept of a DMV-less system is not unprecedented. California already utilizes numerous business-partner locations for certain transactions. Several other states have adopted different models: Arizona houses its Motor Vehicle Division within the Department of Transportation and contracts with private companies for registration and some licensing services. Colorado divides responsibilities between the state for driver's licenses and counties for title and registration. Tennessee and Mississippi route vehicle registration through local county clerks and tax collectors, respectively.
Hilton's proposal builds on these models by proposing the elimination of California's state-run DMV field offices in favor of local and private alternatives. Shrinking government has been a central theme of Hilton's campaign, which also includes initiatives like Cal DOGE, aimed at cutting state waste, and an "Office of Fun and Freedom" to reduce regulations on entertainment and community events.
Hilton is set to face Democratic nominee Xavier Becerra in the general election on November 3. The candidates are scheduled to debate on September 30.