STAFF FIGURE SETTING FY 2021-22 DEPARTMENT OF REVENUE
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STAFF FIGURE SETTING
FY 2021-22
DEPARTMENT OF REVENUE
(Information Technology Division, Division of Motor Vehicles,
Enforcement Business Group, State Lottery Division)
JBC WORKING DOCUMENT - SUBJECT TO CHANGE
STAFF RECOMMENDATION DOES NOT REPRESENT COMMITTEE DECISION
PREPARED BY:
ANDREA UHL, JBC STAFF
MARCH 11, 2021
JOINT BUDGET COMMITTEE STAFF
200 E. 14TH AVENUE, 3RD FLOOR · DENVER · COLORADO · 80203
TELEPHONE: (303) 866-2061 · TDD: (303) 866-3472
https://leg.colorado.gov/agencies/joint-budget-committeeCONTENTS
Department Overview ...................................................................................................................................... 1
Summary of Staff Recommendations......................................................................................................... 2
Description of Incremental Changes.......................................................................................................... 2
Major Differences from the Request .......................................................................................................... 4
Decision Items Affecting Multiple Divisions............................................................................................ 5
R3 Information Technology reorganization & streamlining .................................................. 5
R5 Realign DMV spending .......................................................................................................... 5
R6 Realign Specialized Business Group spending ................................................................... 6
(2) Information Technology Division............................................................................................................. 8
Decision Items – Information Technology Division (None) ................................................................. 8
Line Item Detail - Information Technology Division ............................................................................. 8
(A) Systems Support ..................................................................................................................................... 8
(B) DMV IT System (DRIVES) Support ................................................................................................10
(4) Division of Motor Vehicles ......................................................................................................................13
Decision Items - Division Of Motor Vehicles........................................................................................13
R8 DMV digital transformation ................................................................................................13
Line Item Detail - Division of Motor Vehicles.......................................................................................16
(A) Administration ......................................................................................................................................16
(B) Driver Services ......................................................................................................................................18
(C) Vehicle Services.....................................................................................................................................22
(D) County Support Services (NEW SUBDIVISION) ........................................................................26
(5) Specialized Business Group......................................................................................................................28
Decision Items - Specialized Business Group (None)...........................................................................28
(B) Limited Gaming Division ....................................................................................................................28
(C) Liquor and Tobacco Enforcement Division ....................................................................................31
(D) Division of Racing Events ..................................................................................................................33
(E) Motor Vehicle Dealer Licensing Board .............................................................................................35
(F) Marijuana Enforcement .......................................................................................................................37
(6) State Lottery Division................................................................................................................................40
Decision Items - State Lottery Division ..................................................................................................40
R1 Lottery re-imagined for beneficiaries .................................................................................40
Line Item Detail - State Lottery Division ................................................................................................42
Long Bill Footnotes and Requests for Information ..................................................................................48Long Bill Footnotes ....................................................................................................................................48 Requests for Information ...........................................................................................................................48 Indirect Cost Assessments..............................................................................................................................49 Appendix A Numbers Pages (Digital Only) ................................................................................................50 HOW TO USE THIS DOCUMENT The Department Overview contains a table summarizing the staff recommended incremental changes followed by brief explanations of each incremental change. A similar overview table is provided for each division, but the description of incremental changes is not repeated, since it is available under the Department Overview. More details about the incremental changes are provided in the sections following the Department Overview and the division summary tables. Decision items, both department-requested items and staff-initiated items, are discussed either in the Decision Items Affecting Multiple Divisions or at the beginning of the most relevant division. Within a section, decision items are listed in the requested priority order, if applicable.
STAFF WORKING DOCUMENT – DOES NOT REPRESENT COMMITTEE DECISION
DEPARTMENT OVERVIEW
The Department of Revenue (DOR) regulates, enforces, and administers the state’s tax laws. The
Department also issues and maintains records related to drivers licenses, vehicle emissions testing
stations, registration and titling of motor vehicles, limited stakes gaming, liquor and tobacco retailers,
horse racing and pari-mutuel betting, the automobile sales industry, and medical and recreational
marijuana retailers, growing facilities, and manufacturing facilities. In addition, the Department
operates the State Lottery, including state and multi-state games. The Department is divided into six
divisions or business groups, four of which provide direct services to the citizens of the State, and two
that provide support for the four direct-service providers. This document covers the Information
Technology Division, Division of Motor Vehicles, Specialized Business Group, and State Lottery
Division.
THE INFORMATION TECHNOLOGY DIVISION is responsible for the maintenance and support
of the Department’s information technology systems that are not maintained and supported by the
Governor’s Office of Information Technology.
THE DIVISION OF MOTOR VEHICLES (DMV)
• Is responsible for enforcement and administration of the laws governing driver licensing and vehicle
registration;
• Licenses drivers, maintains records of licensed drivers, and applies administrative sanctions against drivers
who violate traffic laws, including for drunk driving and for excessive points;
• Oversees the vehicle emissions testing stations (including mobile testing stations);
• Registers and titles motor vehicles; and
• Administers the motor vehicle insurance identification database to prevent the registration of vehicles that
are not insured.
THE SPECIALIZED BUSINESS GROUP
• Regulates and enforces laws related to the limited stakes gaming industry in three historic mining towns;
• Regulates and enforces laws related to the sports betting industry;
• Enforces laws regarding liquor and tobacco retailers, including laws against selling those products to
minors, and licenses retailers and special events where alcohol is served;
• Regulates horse racing (dog racing is currently inactive) and pari-mutuel betting (including off-track
betting);
• Regulates retailers and sales agents in the motor vehicle sales industry; and
• Regulates medical and recreational marijuana dispensaries, cultivation, and manufacturing facilities.
THE STATE LOTTERY DIVISION
• Operates the State Lottery, which sells scratch ticket games and tickets for jackpot games (e.g. Powerball,
Lotto, Cash 5, Pick 3, and Mega Millions). The net proceeds of the Lottery benefit the following funds and
programs:
• The Conservation Trust Fund;
• Colorado Division of Parks and Outdoors Recreation;
• Great Outdoors Colorado; and
• The Public School Capital Construction Assistance Fund.
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SUMMARY OF STAFF RECOMMENDATIONS
DEPARTMENT OF REVENUE
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $240,415,703 $5,660,151 $234,235,096 $520,456 $0 994.3
Other legislation 3,682,815 1,878,000 1,804,815 0 0 17.4
TOTAL $244,098,518 $7,538,151 $236,039,911 $520,456 $0 1,011.7
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $244,098,518 $7,538,151 $236,039,911 $520,456 $0 1,011.7
R1 Lottery re-imagined for beneficiaries 16,921,833 0 16,921,833 0 0 0.0
R8 DMV digital transformation 2,520,072 2,520,072 0 0 0 0.0
Indirect cost assessment 1,409,101 0 1,409,101 0 0 0.0
Annualize prior year budget actions 377,797 0 377,797 0 0 0.0
Technical adjustments 124,800 100,463 24,337 0 0 0.0
R6 Realign Specialized Business Group
spending (1,013,471) 0 (1,013,471) 0 0 0.0
Annualize prior year legislation (1,765,126) (1,878,000) 112,874 0 0 6.9
R3 Information Technology reorganization
& streamlining (1,949,421) (1,209,976) (739,445) 0 0 0.0
R5 Realign DMV spending (6,631,401) 0 (6,631,401) 0 0 (16.1)
TOTAL $254,092,702 $7,070,710 $246,501,536 $520,456 $0 1,002.5
INCREASE/(DECREASE) $9,994,184 ($467,441) $10,461,625 $0 $0 (9.2)
Percentage Change 4.1% (6.2%) 4.4% 0.0% 0.0% (0.9%)
FY 2021-22 EXECUTIVE REQUEST $256,612,630 $9,590,638 $246,501,536 $520,456 $0 1,002.5
Request Above/(Below) Recommendation $2,519,928 $2,519,928 $0 $0 $0 (0.0)
DESCRIPTION OF INCREMENTAL CHANGES
R1 LOTTERY REIMAGINED FOR BENEFICIARIES: The recommendation includes $16.9 million cash
funds to expand lottery game offerings to include monitor games (i.e. Keno) and convert to an
incentive based contract with the Lottery’s scratch ticket vendor. The increased spending would be
funded entirely by newly generated revenue in the Lottery Fund, which is an enterprise. The proposal
would allow bars and restaurants to offer instant-win drawings on video monitors; these businesses
would be paid a commission for offering the games.
R3 INFORMATION TECHNOLOGY REORGANIZATION & STREAMLINING: The recommendation
includes reductions of $370,548 General Fund and $332,931 cash funds from the Information
Technology Division, the permanent dissolution of this division, and the relocation of remaining
funds to other line items throughout the Department.
R5 REALIGN DMV SPENDING: The recommendation includes a permanent reduction of $6,631,401
cash funds and an associated 16.1 FTE within the DMV. Over two-thirds of this reduction, about
$4.5 million, is to true-up spending authority from the Driver’s License Documents and License Plate
Ordering Lines. The remaining reductions are related to personnel changes to address the effects of
the COVID-19 pandemic and respond to changing demographics that will cause a long-term decrease
in demand. The reductions will be implemented by eliminating vacant positions and transferring
employees to alternative locations or positions where necessary.
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R6 REALIGN SPECIALIZED BUSINESS GROUP SPENDING: The recommendation includes a
reduction of $1,013,471 cash funds from savings originating in the Specialized Business Group. The
majority of the reduction would come from spending reductions in the Liquor Enforcement Division
(LED) and Marijuana Enforcement Division (MED), with small reductions in the Division of Racing
Events and Auto Industry Division. These entities provide fee funded services that have been
impacted by the COVID-19 pandemic and must therefore respond by adjusting their operations to
match revenues. Changes include workload adjustments, reduced outreach from MED, reductions in
employee training and travel, and delays in project implementation.
R8 DMV DIGITAL TRANSFORMATION: The recommendation includes a one-time increase of $2.5
million General Fund to support the DMV’s digital expansion. The initiative includes expanding self-
service kiosks to include new transaction types, creation of cloud-based virtual call centers with
artificial intelligence technology, expanding vehicle titling and registration services to third parties, a
statewide marketing campaign to promote online services, and establishment of mobile driver’s license
offices to reach residents with limited mobility and in remote areas.
INDIRECT COST ASSESSMENT: The recommendation includes net adjustments of $1.4 million to
indirect costs across these Divisions.
ANNUALIZE PRIOR YEAR BUDGET ACTIONS: The recommendation includes a net increase of
$377,797 cash funds for Driver’s License Documents originating from a FY 2019-20 budget action.
TECHNICAL ADJUSTMENTS: The recommendation includes a net increase of $124,800 cash funds for
the FAST Enterprises contract escalator.
TECHNICAL ADJUSTMENTS
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
DRIVES (FAST Enterprises) contract
escalator $124,800 $0 $124,800 $0 $0 0.0
Indirect-related refinancing 0 100,463 (100,463) 0 0 0.0
TOTAL $124,800 $100,463 $24,337 $0 $0 0.0
ANNUALIZE PRIOR YEAR LEGISLATION: The recommendation includes a net decrease of $1,765,126
total funds, including $1,878,000 General Fund, to reflect the FY 2021-22 impact of bills passed in
previous sessions, summarized in the following table.
ANNUALIZE PRIOR YEAR LEGISLATION
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
HB 19-1230 Marijuana Hospitality $325,053 $0 $325,053 $0 $0 5.3
SB 20B-001 COVID-19 Relief Small &
Minority Bus Arts Orgs (1,878,000) (1,878,000) 0 0 0 0.0
SB 20-035 Kiosk Program Provider (112,500) 0 (112,500) 0 0 0.0
HB 20-1001 Nicotine Product Reg (63,992) 0 (63,992) 0 0 1.6
HB 19-1255 Mesa Verde License Plate (32,312) 0 (32,312) 0 0 0.0
SB 20-056 Surplus Military Vehicles (3,375) 0 (3,375) 0 0 0.0
TOTAL ($1,765,126) ($1,878,000) $112,874 $0 $0 6.9
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MAJOR DIFFERENCES FROM THE REQUEST
• Staff’s recommendation is lower than the November 1st request by $2.5 million General Fund due
to reductions to the R8 DMV digital transformation request that were brought forward by the
Department shortly before Figure Setting. The recommendation and unofficial revised request are
the same.
11-Mar-2021 4 REV2-figSTAFF WORKING DOCUMENT – DOES NOT REPRESENT COMMITTEE DECISION DECISION ITEMS AFFECTING MULTIPLE DIVISIONS R3 INFORMATION TECHNOLOGY REORGANIZATION & STREAMLINING REQUEST: The Department requests reductions of $370,548 General Fund and $332,931 cash funds from the Information Technology Division (ITD), the permanent dissolution of this division, and the relocation of ITD appropriations to other line items throughout the Department. RECOMMENDATION: Staff recommends approving the request. ANALYSIS: The Department of Revenue is unique in that it still has a separate technology division when all other agencies underwent a consolidation to move IT costs into their executive director’s offices at the time the Office of Information Technology was formed. There is no operational, financial, or managerial reason for these funds to remain separate from other operational appropriations in the Executive Director’s Office (EDO). DOR’s Information Technology Division is divided into two parts: (A) Systems Support and (B) DMV IT System (DRIVES) Support. The R3 request identifies savings of $370,548 General Fund and $11,131 cash funds in the (A) Systems Support subdivision from the elimination of personnel appropriations that were previously used for project management and consulting costs related to IT project implementation, as well as savings from telecom costs. The request identifies cash fund savings of $321,800 in the (B) DMV IT System (DRIVES) Support subdivision from supplies such as specialty vehicle registration and title paper. After identified reductions, the Department proposes relocating all appropriations in the ITD elsewhere and eliminating the division. The ITD (A) Systems Support appropriations would be relocated to Personal Services and Operating Expenses lines in the EDO. The ITD (B) DMV IT System (DRIVES) Support appropriations would be moved to a new subdivision with line items of the same name within the DMV. R5 REALIGN DMV SPENDING REQUEST: The Department requests a permanent reduction of $6,851,411 cash funds and an associated 16.1 FTE within the DMV. RECOMMENDATION: Staff recommends approving a reduction of $6,631,401 cash funds. This excludes requested salary common policy reductions (POTS) in the EDO for reasons that were discussed in the Department’s Figure Setting presentation for the Executive Director’s Office. ANALYSIS: The Department requests permanent reduction of $6,851,411 cash funds and an associated 16.1 FTE within the DMV. Two-thirds of this reduction, about $4.5 million, is to true-up spending authority from the Driver’s License Documents and License Plate Ordering Lines. The Department has authority to request future increases in these lines as technical adjustments. 11-Mar-2021 5 REV2-fig
STAFF WORKING DOCUMENT – DOES NOT REPRESENT COMMITTEE DECISION
The remaining reductions are related to personnel changes to address the effects of the COVID-19
pandemic and respond to changing demographics that will cause a long-term decrease in demand. The
reductions will be implemented by eliminating vacant positions and transferring employees to
alternative locations or positions where necessary. The requested and recommend changes by line
item are shown in the following table.
R5 REALIGN DMV SPENDING
REQUEST RECOMMENDATION
(1) Executive Director's Office Cash Funds FTE Cash Funds FTE
Health, Life, and Dental ($142,689) $0
Short-term Disability (1,441) 0
AED (37,940) 0
SAED (37,910) 0
(4) Division of Motor Vehicles
(A) Administration
Personal Services (146,712) (1.0) (146,712) (1.0)
Operating Expenses (5,313) (5,313)
(B) Driver Services
Personal Services (702,004) (12.1) (702,004) (12.1)
Operating Expenses (285,550) (285,550)
Drivers License Documents (2,300,000) (2,300,000)
Ignition Interlock Program (600,000) (600,000)
(C) Vehicle Services
Personal Services (200,000) (3.0) (200,000) (3.0)
Operating Expenses (25,775) (25,775)
License Plate Ordering (2,200,000) (2,200,000)
Emissions Program (166,047) (166,047)
Total ($6,851,381) (16.1) ($6,631,401) (16.1)
R6 REALIGN SPECIALIZED BUSINESS GROUP SPENDING
REQUEST: The Department requests a reduction of $1,196,200 cash funds from savings originating in
the Specialized Business Group.
RECOMMENDATION: Staff recommends approving a reduction of $1,013,471 cash funds. This
excludes requested salary POTS reductions in the EDO for reasons that were discussed in the
Department’s Figure Setting presentation for the Executive Director’s Office.
ANALYSIS:
The majority of the reduction would come from spending reductions in the Liquor Enforcement
Division (LED) and Marijuana Enforcement Division (MED), with small reductions in the Division
of Racing Events and Auto Industry Division. These entities provide fee-funded services that have
been impacted by the COVID-19 pandemic and must therefore respond by adjusting their operations
to match revenues. Changes include workload adjustments, reduced outreach from MED, reductions
in employee training and travel, and delays in project implementation. The requested and
recommended changes by line item are shown in the following table.
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R6 REALIGN SPECIALIZED BUSINESS GROUP SPENDING
REQUEST RECOMMENDATION
(1) Executive Director's Office
Health, Life, and Dental ($103,054) $0
Short-term Disability (1,485) 0
AED (39,095) 0
SAED (39,095) 0
(5) Specialized Business Group
(A) Administration
Operating Expenses (1,696) (1,696)
(C) Liquor and Tobacco Enforcement Division
Personal Services (223,702) (223,702)
(D) Division of Racing Events
Operating Expenses (18,401) (18,401)
(E) Motor Vehicle Dealer Licensing Board
Operating Expenses (12,804) (12,804)
(F) Marijuana Enforcement
Marijuana Enforcement (756,868) (756,868)
Total ($1,196,200) ($1,013,471)
The outlook for the Marijuana Cash Fund (MCF), which is used exclusively by and for the MED, is
particularly bleak. The proposed $756,868 reduction shown above is a small step in correcting this
fund’s trajectory. The MCF had an excess fund balance for many years, leading to an aggressive spend-
down plan including an average 22 percent fee reduction in 2016. The Department was aware fees
would need to be restored to an appropriate level in FY 2020-21 and hired a third party vendor to
conduct a fee study in summer 2020. The MED has broad authority to adjust fees as necessary as long
as stakeholder engagement and a rule-making process (which can take several months) is conducted.
Taking into account the fund’s aggressive spend-down path and balancing actions made in the 2020
Session, the vendor estimated fees would need to be raised by 65 to 75 percent in FY 2020-21 to right-
size the fund. However, the Executive Branch has been unwilling to raise fees during the economic
downtown and does not plan to raise them in the near future. The Department projects a negative
balance in the Marijuana Cash Fund will occur early in FY 2021-22. OSPB is working on legislative
options to aid this and other struggling cash funds.
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(2) INFORMATION TECHNOLOGY DIVISION
The Division is responsible for the support and maintenance of the Department systems that are not
supported and maintained by the Governor's Office of Information Technology (OIT). These are
entirely made up of contract services. The division has two subdivisions, Systems Support, which
supports most of the Department's information technology services, and the DMV IT system called
the Colorado Driver's License, Record, Identification, and Vehicle Enterprise Solution or DRIVES.
INFORMATION TECHNOLOGY DIVISION
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 Appropriation
HB 20-1360 (Long Bill) $4,853,386 $1,209,976 $3,643,410 $0 $0 0.0
TOTAL $4,853,386 $1,209,976 $3,643,410 $0 $0 0.0
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $4,853,386 $1,209,976 $3,643,410 $0 $0 0.0
R3 Information Technology reorganization
& streamlining (4,853,386) (1,209,976) (3,643,410) 0 0 0.0
TOTAL $0 $0 $0 $0 $0 0.0
INCREASE/(DECREASE) ($4,853,386) ($1,209,976) ($3,643,410) $0 $0 0.0
Percentage Change (100.0%) (100.0%) (100.0%) n/a n/a 0.0%
FY 2021-22 EXECUTIVE REQUEST $0 $0 $0 $0 $0 0.0
Request Above/(Below) Recommendation $0 $0 $0 $0 $0 0.0
DECISION ITEMS – INFORMATION TECHNOLOGY DIVISION (NONE)
The Department did not submit any decision items solely affecting this division. Changes requested
in R3 are discussed on page 5.
LINE ITEM DETAIL - INFORMATION TECHNOLOGY DIVISION
(A) SYSTEMS SUPPORT
This unit supports the tax information systems and enforcement systems for licensing, reporting, tax
filing, and case management.
PERSONAL SERVICES
This line item pays for contract services. Although this is a personal services line, there are no FTE in
the line. The line item pays for contract services to maintain those systems that are not maintained by
OIT. This line item also provides funding for appropriations to implement bills passed by the General
Assembly that require programming expenses in the Department's information systems including
programming services provided by OIT.
STATUTORY AUTHORITY: Section 24-50-101 et seq., C.R.S.
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REQUEST: The Department requests this line item be permanently discontinued with no appropriation
through changes discussed in R3, which fully eliminates expenditures for this purpose without
transferring them elsewhere in the Department. This results in an ongoing reduction of $100,000
General Fund and $11,131 cash funds.
RECOMMENDATION: Staff recommends approving the request.
INFORMATION TECHNOLOGY DIVISION, SYSTEM SUPPORT, PERSONAL SERVICES
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $111,131 $100,000 $11,131 $0 $0 0.0
TOTAL $111,131 $100,000 $11,131 $0 $0 0.0
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $111,131 $100,000 $11,131 $0 $0 0.0
R3 Information Technology reorganization
& streamlining (111,131) (100,000) (11,131) 0 0 0.0
TOTAL $0 $0 $0 $0 $0 0.0
INCREASE/(DECREASE) ($111,131) ($100,000) ($11,131) $0 $0 0.0
Percentage Change (100.0%) (100.0%) (100.0%) 0.0% 0.0% 0.0%
FY 2021-22 EXECUTIVE REQUEST $0 $0 $0 $0 $0 0.0
Request Above/(Below) Recommendation $0 $0 $0 $0 $0 0.0
OPERATING EXPENSES
This line funds information technology related contracts for the Department, telecommunications
expenses, general office supplies, and printing costs.
STATUTORY AUTHORITY: Section 24-35-105, C.R.S.
REQUEST: The Department requests this line item be permanently discontinued with no appropriation
through changes discussed in R3, which relocates remaining costs to the Executive Director’s Office,
Administration and Support, Operating Expenses line item.
RECOMMENDATION: Staff recommends approving the request.
INFORMATION TECHNOLOGY DIVISION, SYSTEM SUPPORT, OPERATING EXPENSES
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $1,516,490 $1,109,976 $406,514 $0 $0 0.0
TOTAL $1,516,490 $1,109,976 $406,514 $0 $0 0.0
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $1,516,490 $1,109,976 $406,514 $0 $0 0.0
R3 Information Technology reorganization
& streamlining (1,516,490) (1,109,976) (406,514) 0 0 0.0
TOTAL $0 $0 $0 $0 $0 0.0
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INFORMATION TECHNOLOGY DIVISION, SYSTEM SUPPORT, OPERATING EXPENSES
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
INCREASE/(DECREASE) ($1,516,490) ($1,109,976) ($406,514) $0 $0 0.0
Percentage Change (100.0%) (100.0%) (100.0%) 0.0% 0.0% 0.0%
FY 2021-22 EXECUTIVE REQUEST $0 $0 $0 $0 $0 0.0
Request Above/(Below) Recommendation $0 $0 $0 $0 $0 0.0
(B) DMV IT SYSTEM (DRIVES) SUPPORT
The DRIVES project replaced the legacy driver’s license system and the Colorado State Titling and
Registration System (CSTARS). CSTARS was the state's centralized database for the distribution of
registration taxes between the state, all its counties, and the Highway Users Tax Fund (HUTF).
CSTARS was created in 1983 to automate the distribution of vehicle registration taxes. CSTARS
enabled Colorado's 64 county clerks' offices to issue more than 2 million vehicle titles and 4.3 million
vehicle registrations every year. The appropriations fund hardware, software, and technical support to
maintain the system and ensure adequate access for the county clerks.
In FY 2019-20, the Colorado DRIVES Vehicle Services Account in the Highway Users Tax Fund
replaced the Colorado State Titling and Registration Account in the Highway Users Tax Fund,
pursuant to Section 42-1-211 (2), C.R.S. Sources of Revenue include a share of fees and taxes for
titling and registering motor vehicles; for titling manufactured homes; and for the sale of some special
license plates.
Historically, this subdivision exclusively reflected the costs shared by the counties and the state. With
the elimination of CSTARS and its cash fund, and with the implementation of the DRIVES system
and its cash funds, it is anticipated that this subdivision will be eliminated and its remaining purposes
transitioned into the Division of Motor Vehicles. The personal services line item was eliminated in
FY 2018-19.
OPERATING EXPENSES
This line item funds information technology related contracts for the Department as they relate
specifically to the Colorado State Titling and Registration System. This appropriation is primarily
managed by the Department's OIT liaison and used for vendor-managed services for county
equipment maintenance, building equipment maintenance at the Pierce and Capitol Annex buildings,
renewals for software and hardware maintenance, and related supplies and administrative expenses.
These expenses are not duplicative of the DRIVES system costs requested in the Division of Motor
Vehicles. Other costs include telecommunications expenses, general office supplies, and printing
expenses.
STATUTORY AUTHORITY: Sections 42-1-211 and 24-35-105, C.R.S.
REQUEST: The Department requests this line item be permanently discontinued with no appropriation
through changes discussed in R3, which relocates expenditures for this purpose to a new County
Support Services subdivision within the Division of Motor Vehicles.
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RECOMMENDATION: Staff recommends approving the request.
INFORMATION TECHNOLOGY DIVISION, DMV IT SYSTEM (DRIVES) SUPPORT, OPERATING EXPENSES
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $2,617,535 $0 $2,617,535 $0 $0 0.0
TOTAL $2,617,535 $0 $2,617,535 $0 $0 0.0
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $2,617,535 $0 $2,617,535 $0 $0 0.0
R3 Information Technology reorganization
& streamlining (2,617,535) 0 (2,617,535) 0 0 0.0
TOTAL $0 $0 $0 $0 $0 0.0
INCREASE/(DECREASE) ($2,617,535) $0 ($2,617,535) $0 $0 0.0
Percentage Change (100.0%) 0.0% (100.0%) 0.0% 0.0% 0.0%
FY 2021-22 EXECUTIVE REQUEST $0 $0 $0 $0 $0 0.0
Request Above/(Below) Recommendation $0 $0 $0 $0 $0 0.0
COUNTY OFFICE ASSET MAINTENANCE
This line item provides funding for replacement of infrastructure every four years (the OIT standard
for replacement of this type of equipment is every three years).
STATUTORY AUTHORITY: Section 42-1-211, C.R.S.
REQUEST: The Department requests this line item be permanently discontinued with no appropriation
through changes discussed in R3, which relocates expenditures for this purpose to a new County
Support Services subdivision within the Division of Motor Vehicles.
RECOMMENDATION: Staff recommends approving the request.
INFORMATION TECHNOLOGY DIVISION, DMV IT SYSTEM (DRIVES) SUPPORT, COUNTY OFFICE ASSET
MAINTENANCE
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $568,230 $0 $568,230 $0 $0 0.0
TOTAL $568,230 $0 $568,230 $0 $0 0.0
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $568,230 $0 $568,230 $0 $0 0.0
R3 Information Technology reorganization
& streamlining (568,230) 0 (568,230) 0 0 0.0
TOTAL $0 $0 $0 $0 $0 0.0
INCREASE/(DECREASE) ($568,230) $0 ($568,230) $0 $0 0.0
Percentage Change (100.0%) 0.0% (100.0%) 0.0% 0.0% 0.0%
FY 2021-22 EXECUTIVE REQUEST $0 $0 $0 $0 $0 0.0
Request Above/(Below) Recommendation $0 $0 $0 $0 $0 0.0
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COUNTY OFFICE IMPROVEMENTS
This line item provides funding for improvements to and expansion of county offices to provide
services related to CSTARS or DRIVES. Counties are required by statute (Section 42-1-210, C.R.S.)
to provide motor vehicle title and registration services in a manner that is convenient and easily
accessible to the public. The State (Department of Revenue) is required to provide necessary data
processing equipment, software, support, and training to support the counties (Section 42-1-211,
C.R.S.) The line item was established to provide for a stable appropriation to fund the expansion and
improvements to the CSTAR system. Funding requests for this line item are based on approval from
the CSTARS Advisory Committee or the Colorado DRIVES County Governance Committee (Section
42-1-211 (4), C.R.S.), which receives and prioritizes requests from the counties for funding the
expansions and improvements in county offices.
STATUTORY AUTHORITY: Section 42-1-211, C.R.S.
REQUEST: The Department requests this line item be permanently discontinued with no appropriation
through changes discussed in R3, which relocates expenditures for this purpose to a new County
Support Services subdivision within the Division of Motor Vehicles.
RECOMMENDATION: Staff recommends approving the request.
INFORMATION TECHNOLOGY DIVISION, DMV IT SYSTEM (DRIVES) SUPPORT, COUNTY OFFICE
IMPROVEMENTS
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $40,000 $0 $40,000 $0 $0 0.0
TOTAL $40,000 $0 $40,000 $0 $0 0.0
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $40,000 $0 $40,000 $0 $0 0.0
R3 Information Technology reorganization
& streamlining (40,000) 0 (40,000) 0 0 0.0
TOTAL $0 $0 $0 $0 $0 0.0
INCREASE/(DECREASE) ($40,000) $0 ($40,000) $0 $0 0.0
Percentage Change (100.0%) 0.0% (100.0%) 0.0% 0.0% 0.0%
FY 2021-22 EXECUTIVE REQUEST $0 $0 $0 $0 $0 0.0
Request Above/(Below) Recommendation $0 $0 $0 $0 $0 0.0
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(4) DIVISION OF MOTOR VEHICLES
The Division of Motor Vehicles consists of Administration, Driver Services, and Vehicle Services
sections. These sections are responsible for the enforcement and administration of the laws governing
driver licensing and vehicle registration.
DIVISION OF MOTOR VEHICLES
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 Appropriation
HB 20-1360 (Long Bill) $64,525,683 $4,255,177 $60,084,617 $185,889 $0 559.4
Other legislation 115,875 0 115,875 0 0 0.0
TOTAL $64,641,558 $4,255,177 $60,200,492 $185,889 $0 559.4
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $64,641,558 $4,255,177 $60,200,492 $185,889 $0 559.4
R8 DMV digital transformation 2,520,072 2,520,072 0 0 0 0.0
Indirect cost assessment 658,659 0 658,659 0 0 0.0
Annualize prior year budget actions 377,797 0 377,797 0 0 0.0
Technical adjustments 124,800 100,463 24,337 0 0 0.0
Annualize prior year legislation (148,187) 0 (148,187) 0 0 0.0
R3 Information Technology reorganization
& streamlining 2,903,965 0 2,903,965 0 0 0.0
R5 Realign DMV spending (6,631,401) 0 (6,631,401) 0 0 (16.1)
TOTAL $64,447,263 $6,875,712 $57,385,662 $185,889 $0 543.3
INCREASE/(DECREASE) ($194,295) $2,620,535 ($2,814,830) $0 $0 (16.1)
Percentage Change (0.3%) 61.6% (4.7%) 0.0% 0.0% (2.9%)
FY 2021-22 EXECUTIVE REQUEST $66,967,191 $9,395,640 $57,385,662 $185,889 $0 543.3
Request Above/(Below) Recommendation $2,519,928 $2,519,928 $0 $0 $0 0.0
DECISION ITEMS - DIVISION OF MOTOR VEHICLES
R8 DMV DIGITAL TRANSFORMATION
REQUEST: The November 1st request includes a one-time increase of $5.0 million General Fund to
support the DMV’s digital expansion. The initiative includes expanding self-service kiosks to include
new transaction types, creation of cloud-based virtual call centers with artificial intelligence
technology, expanding vehicle titling and registration services to third parties, a statewide marketing
campaign to promote online services, and establishment of mobile driver’s license offices to reach
residents with limited mobility and in remote areas. In light of additional research and new
information obtained after the original request was submitted, the Department revised the
request downward to $2.5 million General Fund.
RECOMMENDATION: Staff recommends approving $2,520,072 General Fund, which is the full
amount of the Department’s revised request.
ANALYSIS:
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The R8 request aims to reduce customer trips to driver license and motor vehicle offices by promoting
online services and expanding services that can be offered through other means. The components of
the request are shown in the following table.
R8 DMV DIGITAL TRANSFORMATION
ORIGINAL
REVISED REQUEST RECOMMENDED
REQUEST
Self-service kiosk expansion $900,000 $900,000 $900,000
Call center improvements 580,000 580,000 580,000
Third party titling and registration 1,672,352 0 0
Online services marketing campaign 331,227 331,227 331,227
Mobile Driver License Office program 1,556,421 708,845 708,845
Total $5,040,000 $2,520,072 $2,520,072
Self-service kiosk expansion
The DMV’s kiosk program, offered in 13 counties, can currently only be used for vehicle registration
renewals. Pursuant to S.B. 20-035 (Kiosk Program Provider Vehicle and Identity Services), services
will be expanded by the end of FY 2020-21 to include duplicate title requests, duplicate registration
card requests, tab replacement, add/change a vehicle address, check title status, and driver’s license or
ID renewal.
The $900,000 request would allow the DMV to develop an additional 15 new transaction types for
kiosk use to include services currently offered online, including first-time vehicle registration, payment
of citations, apply for a driver’s license/ID, change a driver’s license/ID address, driving record
requests, emissions waiver applications, and more.
Call center improvements
In FY 2019-20, DMV call centers answered 755,174 calls, but an estimated 370,000 calls went
unanswered due to limited resources. The request includes $580,000 General Fund to build cloud-
based virtual call centers with chatbot (artificial intelligence) technology. The result will be a single call
center platform to support both in-office and teleworking call center employees long term, increase
customer availability for self-service around the clock with artificial intelligence, reduced wait times,
and consolidated call center operations within each division. The Department plans to use Amazon
Connect for these services; the Governor’s Office of Information Technology has an existing
enterprise agreement in place with this vendor.
The DMV’s call center improvement plan will move CenturyLink call center technologies from on-
site hardware, which includes servers and dedicated physical phone lines, to a web-based Voice-Over-
Internet-Protocol solution using Amazon Connect. All DMV call center employees will continue to
work remotely using the new technology. Ongoing costs to support the software would be absorbed
by DMV cash funds. In the future, this platform could be expanded to the Tax and Specialized
Business Group (enforcement) divisions to create department-wide consistency.
Third party titling and registration
This portion of the request would allow vendors to establish services for auto dealers, vehicle auctions,
rental companies, and other stakeholders to title and register vehicles in Colorado, thereby eliminating
customers’ need to visit county motor vehicle offices. This initiative is estimated to move 10.5 percent,
about 1.6 million, of the state’s 16.0 million annual vehicle transactions out of county offices. House
Bill 18-1299 (Electronic Filing Title Registration Motor Vehicle) created statutory authority for DOR
11-Mar-2021 14 REV2-figSTAFF WORKING DOCUMENT – DOES NOT REPRESENT COMMITTEE DECISION to license third party vendors for this purpose, but made implementation contingent on gifts, grants, and donations which did not materialize. The programming and implementation cost was estimated at $1,672,352 General Fund in the November 1st budget request. Statute currently prohibits the Department from using General Fund to implement H.B. 18-1299 1, but accompanying legislation was not considered in the budget request. The General Assembly is currently considering Senate Bill 21-076 (Fund Electronic Third-party Vehicle Transactions), which accomplishes the same goal as this portion of the request and authorizes the Department to use General Fund to implement third party titling and registration. The Department was unaware of plans for this legislation when the request was submitted. The bill passed out of the Senate Committee on Transportation & Energy and was referred to Senate Appropriations on February 16th. Senate Bill 21-076 differs from the request in two main ways as it is currently written: by authorizing the Department to charge third party providers a fee of up to three dollars for each transaction, and also creating the option for the General Fund to be paid back for implementation costs identified in the Fiscal Note when enough revenue has accumulated in the newly created Electronic Transactions Fund. Due to differences between the bill and the budget request and slight changes in cost assumptions, the appropriation required in the Fiscal Note is $1,273,993, about $400,000 lower than the R8 request. Due to the timing of this legislation, its similarity to the request, and the fact that it makes necessary statutory changes to allow the use of General Fund, the Department has asked to withdraw this portion of the R8 request and instead focus on S.B. 21-076 to achieve third party titling and registration. Online services marketing campaign The Department and counties have only been able to provide minimal, scattered messaging to communicate DMV changes in the wake of the COVID-19 pandemic. The request includes $331,227 General Fund for the DMV to hire an advertising agency to create a unified messaging strategy and assist with content and media buys. The campaign would span 12 to 18 months with the goal of increasing awareness and adoption of new virtual and other service options. One of the DMV’s specific goals is for 85 percent of eligible Coloradans to renew their driver’s license or ID online. In the first half of FY 2020-21, only 72 percent of renewals that were eligible to be completed online were completed online. Mobile Driver License Office program The request includes one-time funding to create a Mobile Driver License Office (Mobile DLO) program designed to bring services to Coloradans that have limited access to existing office locations by using a fleet of SUVs and RVs that would operate out of community centers, schools, shopping centers, and other parking lots with Wi-Fi availability. An example of the program’s use would be deploying a unit on multiple dates each month to provide services outside of a municipal building in a remote town. Units could also be deployed by request to provide service events at assisted living homes, sporting events, or high schools. The November 1st request included 7 SUVs and 3 RVs as well as costs for 10.0 FTE and corresponding equipment and staffing costs, for a grand total of $1,556,421 General Fund. The Department estimates that each SUV unit could process up to 25 customers a day, and RV units could process up to 85. 1 See Section 42-1-234 (3)(a) 11-Mar-2021 15 REV2-fig
STAFF WORKING DOCUMENT – DOES NOT REPRESENT COMMITTEE DECISION
After re-examining the staff time and costs that can be supported with existing appropriations on an
ongoing basis, the Department revised its request downward to $708,845 General Fund. This includes
the purchase of 2 SUVs and 1 RV, as well as associated staffing costs for 6.0 FTE. The Department
would use two vehicles from its existing fleet in addition to the 3 purchased.
LINE ITEM DETAIL - DIVISION OF MOTOR VEHICLES
(A) ADMINISTRATION
The Administration subgroup includes the Senior Director, Deputy Director, administrative support
staff, division financial staff, and the Investigations Unit. The Administration subgroup supports the
administrative and financial management of all DMV operations. The Investigations Unit is
responsible for conducting investigations on both driver and vehicle records. This unit is accountable
for preserving and protecting the integrity of motor vehicle records by investigating and preventing
fraud, ensuring statutory compliance, and providing victim advocacy. The unit is also responsible for
all Exception Processing for Colorado residents who cannot meet the established requirements for
driver licenses or identification cards.
PERSONAL SERVICES
This line item pays for program staff salary and contract services. Typical adjustments that occur each
year include annualization of salary increases and performance awards granted in the prior fiscal year
and common policy base reductions.
STATUTORY AUTHORITY: Sections 24-50-101, et seq. and 42-2-101, et seq., C.R.S.
REQUEST: The Department requests an appropriation of $3,989,914 total funds, including $470,851
General Fund, $3,467,553 cash funds, $51,510 reappropriated funds, and 48.9 FTE. The request
includes a $146,712 decrease associated with R5 and a technical adjustment related to indirect costs.
RECOMMENDATION: Staff recommends approving the request.
DIVISION OF MOTOR VEHICLES, ADMINISTRATION, PERSONAL SERVICES
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $4,136,626 $370,437 $3,714,679 $51,510 $0 49.9
TOTAL $4,136,626 $370,437 $3,714,679 $51,510 $0 49.9
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $4,136,626 $370,437 $3,714,679 $51,510 $0 49.9
Technical adjustments 0 100,414 (100,414) 0 0 0.0
R5 Realign DMV spending (146,712) 0 (146,712) 0 0 (1.0)
TOTAL $3,989,914 $470,851 $3,467,553 $51,510 $0 48.9
INCREASE/(DECREASE) ($146,712) $100,414 ($247,126) $0 $0 (1.0)
Percentage Change (3.5%) 27.1% (6.7%) 0.0% 0.0% (2.0%)
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DIVISION OF MOTOR VEHICLES, ADMINISTRATION, PERSONAL SERVICES
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2021-22 EXECUTIVE REQUEST $3,989,914 $470,851 $3,467,553 $51,510 $0 48.9
Request Above/(Below) Recommendation $0 $0 $0 $0 $0 (0.0)
OPERATING EXPENSES
This line item funds telecommunications, general office supplies, and printing costs.
STATUTORY AUTHORITY: Sections 24-35-105, et seq. and 42-2-101, et seq., C.R.S.
REQUEST: The Department requests an appropriation of $550,591 total funds, including $63,682
General Fund, $483,519 cash funds, and $3,390 reappropriated funds. The request includes a decrease
of $5,313 cash funds associated with R5.
RECOMMENDATION: Staff recommends approving the request.
DIVISION OF MOTOR VEHICLES, ADMINISTRATION, OPERATING EXPENSES
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $555,904 $63,633 $488,881 $3,390 $0 0.0
TOTAL $555,904 $63,633 $488,881 $3,390 $0 0.0
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $555,904 $63,633 $488,881 $3,390 $0 0.0
Technical adjustments 0 49 (49) 0 0 0.0
R5 Realign DMV spending (5,313) 0 (5,313) 0 0 0.0
TOTAL $550,591 $63,682 $483,519 $3,390 $0 0.0
INCREASE/(DECREASE) ($5,313) $49 ($5,362) $0 $0 0.0
Percentage Change (1.0%) 0.1% (1.1%) 0.0% 0.0% 0.0%
FY 2021-22 EXECUTIVE REQUEST $550,591 $63,682 $483,519 $3,390 $0 0.0
Request Above/(Below) Recommendation $0 $0 $0 $0 $0 0.0
DRIVES MAINTENANCE AND SUPPORT
This line item was added in FY 2018-19 and provides funding for the managed services contract that
supports and maintains the DRIVES IT system. The DRIVES project replaced the legacy driver’s
license system and the Colorado State Titling and Registration System. The DRIVES project received
$93.4 million of capital construction funding, including $41.0 million in FY 2014-15 and $52.4 million
in FY 2015-16. This line item funds the ten-year maintenance and support contract with the DRIVES
system vendor, FAST Enterprises, LLC., estimated to total $71.3 million over 10 years, with a base
annual cost of $6.24 million plus Denver-Boulder CPI inflation index adjustments.
STATUTORY AUTHORITY: Sections 24-35-105 and 42-2-101, et seq., C.R.S.
REQUEST: The Department requests a total appropriation of $8,363,947, including $1,359,000 General
Fund. The request includes a technical adjustment for the FAST Enterprises contract, annualizations
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for several bills that passed in the 2020 legislative session and required one-time appropriations for
FY 2020-21, and a $1,341,000 General Fund increase associated with R8.
RECOMMENDATION: Staff recommends an appropriation of $7,022,947 total funds, which
excludes a portion of the R8 request as discussed on page 13.
DIVISION OF MOTOR VEHICLES, ADMINISTRATION, DRIVES MAINTENANCE AND SUPPORT
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $6,901,972 $18,000 $6,883,972 $0 $0 0.0
Other legislation $115,875 $0 $115,875 $0 $0 0.0
TOTAL $7,017,847 $18,000 $6,999,847 $0 $0 0.0
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $7,017,847 $18,000 $6,999,847 $0 $0 0.0
Technical adjustments 124,800 0 124,800 0 0 0.0
R8 DMV digital transformation 0 0 0 0 0 0.0
Annualize prior year legislation (119,700) 0 (119,700) 0 0 0.0
TOTAL $7,022,947 $18,000 $7,004,947 $0 $0 0.0
INCREASE/(DECREASE) $5,100 $0 $5,100 $0 $0 0.0
Percentage Change 0.1% 0.0% 0.1% 0.0% 0.0% 0.0%
FY 2021-22 EXECUTIVE REQUEST $8,363,947 $1,359,000 $7,004,947 $0 $0 0.0
Request Above/(Below) Recommendation $1,341,000 $1,341,000 $0 $0 $0 0.0
(B) DRIVER SERVICES
The Driver Services subgroup includes three programs: Driver License (including the Commercial
Driver License Program (CDL), Driver Control, and Ignition Interlock.
The Driver License Program is responsible for issuing driver licenses, instruction permits,
identification cards, and commercial driver licenses to the citizens of Colorado. Additionally, this
section also issues copies of driving records, oversees the curriculum and training of commercial
driving schools, and licenses and oversees third-party testers who administer driving and motorcycle
skill tests.
The Driver Control Program is responsible for collecting, maintaining, analyzing, and producing all
driver records for the state. It receives and processes penalty assessment citations and processes fine
payments and administers driver license sanctions by imposing license suspensions and revocations in
accordance with the law. The Driver Control Program also supports law enforcement with a 24/7
communications center that provides information on drivers and vehicles and supports prosecutors
and courts with the production of evidence packets. This section also monitors drive log data on
interlock restricted drivers and imposes restraints.
The Ignition Interlock Program is discussed in detail at the line item level.
PERSONAL SERVICES
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This line item pays for program staff salary and contract services. Typical adjustments that occur each
year include annualization of salary increases and performance awards granted in the prior fiscal year
and common policy base reductions. Cash funds are predominantly provided from the Licensing
Services Cash Fund, as well as the following accounts of the Highway Users Tax Fund: the Colorado
State Titling and Registration Account/Colorado DRIVES Vehicle Services Account, Driver's License
Administrative Revocation Account, and the First-time Drunk Driving Offender Account; and several
funds that provide minimal funding.
STATUTORY AUTHORITY: Sections 24-50-101, et seq. and 42-2-125, C.R.S.
REQUEST: The Department requests an appropriation of $24,315,270 total funds, including
$3,167,300 General Fund, $21,027,151 cash funds, and $120,819 reappropriated funds, and 426.6
FTE. The request includes a reduction of $702,004 cash funds and 12.1 FTE associated with R5 and
an increase of $520,000 General Fund associated with R8.
RECOMMENDATION: Staff recommends approving the request, including the R5 and R8
components discussed previously in this document.
DIVISION OF MOTOR VEHICLES, DRIVER SERVICES, PERSONAL SERVICES
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $24,497,274 $2,647,300 $21,729,155 $120,819 $0 438.7
TOTAL $24,497,274 $2,647,300 $21,729,155 $120,819 $0 438.7
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $24,497,274 $2,647,300 $21,729,155 $120,819 $0 438.7
R8 DMV digital transformation 520,000 520,000 0 0 0 0.0
R5 Realign DMV spending (702,004) 0 (702,004) 0 0 (12.1)
TOTAL $24,315,270 $3,167,300 $21,027,151 $120,819 $0 426.6
INCREASE/(DECREASE) ($182,004) $520,000 ($702,004) $0 $0 (12.1)
Percentage Change (0.7%) 19.6% (3.2%) 0.0% 0.0% (2.8%)
FY 2021-22 EXECUTIVE REQUEST $24,315,270 $3,167,300 $21,027,151 $120,819 $0 426.6
Request Above/(Below) Recommendation $0 $0 $0 $0 $0 0.0
OPERATING EXPENSES
This line item funds operating costs, including telecommunications, general office supplies and
printing costs.
STATUTORY AUTHORITY: Sections 24-35-105 and 42-2-101, et seq., C.R.S.
REQUEST: The Department requests an appropriation of $4,299,222 total funds, including $2,358,803
General Fund, $1,930,249 cash funds, and $10,170 reappropriated funds. The request includes a
reduction of $285,550 cash funds associated with R5 and an increase of $1,947,648 General Fund
associated with R8.
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RECOMMENDATION: Staff recommends an appropriation of $3,451,646 total funds, including
$1,511,227 General Fund. This is $847,576 less than the November 1st R8 request, as discussed
previously.
DIVISION OF MOTOR VEHICLES, DRIVER SERVICES, OPERATING EXPENSES
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $2,637,124 $411,155 $2,215,799 $10,170 $0 0.0
TOTAL $2,637,124 $411,155 $2,215,799 $10,170 $0 0.0
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $2,637,124 $411,155 $2,215,799 $10,170 $0 0.0
R8 DMV digital transformation 1,100,072 1,100,072 0 0 0 0.0
R5 Realign DMV spending (285,550) 0 (285,550) 0 0 0.0
TOTAL $3,451,646 $1,511,227 $1,930,249 $10,170 $0 0.0
INCREASE/(DECREASE) $814,522 $1,100,072 ($285,550) $0 $0 0.0
Percentage Change 30.9% 267.6% (12.9%) 0.0% 0.0% 0.0%
FY 2021-22 EXECUTIVE REQUEST $4,299,222 $2,358,803 $1,930,249 $10,170 $0 0.0
Request Above/(Below) Recommendation $847,576 $847,576 $0 $0 $0 0.0
DRIVER'S LICENSE DOCUMENTS
This line item funds all material costs associated with the production of driver's licenses, instructional
permits, and identification cards including related security features. The physical driver's license is
produced by a third party vendor under contract to the Department, who also mails the document to
the customer. The line also provides funding for verification of Social Security information, and
verification of an applicant's legal immigration/visa status. In addition to receiving funding from the
Licensing Services Cash Fund, this line receives funding for security purposes from the Identification
Security Fund.
STATUTORY AUTHORITY: Section 42-2-101, C.R.S.
REQUEST: The Department requests an appropriation of $6,412,457 cash funds, including an increase
to annualize a prior year budget action and a $2.3 million decrease associated with R5.
RECOMMENDATION: Staff recommends approving the request.
DIVISION OF MOTOR VEHICLES, DRIVER SERVICES, DRIVERS LICENSE DOCUMENTS
TOTAL GENERAL CASH REAPPROPRIATED FEDERAL
FUNDS FUND FUNDS FUNDS FUNDS FTE
FY 2020-21 APPROPRIATION
HB 20-1360 (Long Bill) $8,334,660 $0 $8,334,660 $0 $0 0.0
TOTAL $8,334,660 $0 $8,334,660 $0 $0 0.0
FY 2021-22 RECOMMENDED APPROPRIATION
FY 2020-21 Appropriation $8,334,660 $0 $8,334,660 $0 $0 0.0
Annualize prior year budget actions 377,797 0 377,797 0 0 0.0
R5 Realign DMV spending (2,300,000) 0 (2,300,000) 0 0 0.0
TOTAL $6,412,457 $0 $6,412,457 $0 $0 0.0
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