Republican gubernatorial candidate Steve Hilton announced Tuesday a plan to abolish the California Department of Motor Vehicles (DMV) and reduce annual vehicle registration fees to $73 if elected governor in November. The proposal, unveiled outside a DMV office in West Hollywood, includes decentralizing driver’s license and registration services to county offices or regulated local providers.
Hilton framed the plan as a cost-saving measure amid California’s affordability crisis, arguing the DMV operates as an inefficient, bureaucratic agency. "We are going to shut down this bloated, nanny-state bureaucratic agency that treats Californians with complete contempt," he said during the announcement. His campaign estimates the DMV’s $1.6 billion annual budget would be reallocated under the proposal, with the flat $73 fee covering local administrative costs.
Political and Legislative Context
The plan requires approval from the Democratic-controlled Legislature, where Democrats hold super majorities in both chambers. Assembly Speaker Robert Rivas (D-Hollister) and Senate President Pro Tem Monique Limón (D-Santa Barbara) have endorsed Hilton’s Democratic rival, former Biden cabinet member Xavier Becerra. Becerra’s campaign criticized Hilton’s proposal, with spokesperson Jonathan Underland stating, "You can’t spend a year calling Democrats a failure and then expect two-thirds of both chambers to take your calls."
Hilton acknowledged the political challenges but expressed optimism about bipartisan cooperation. "My starting expectation would be, they would be with me on things to reduce the cost of living, so let’s work together," he told the Los Angeles Times. He added that he believes lawmakers would recognize his willingness to "solve problems" beyond partisan divides.
Policy Details and Rationale
Under Hilton’s plan, the DMV’s responsibilities—including vehicle registration, titles, driver’s licenses, and road tests—would shift to county offices or regulated private providers. He also proposed eliminating California’s "value-based vehicle tax," transportation add-ons, and local surcharges, which he described as a "hidden Car Tax." The $73 annual fee would replace these varied charges, with Hilton asserting it would simplify the process for residents.
The proposal aligns with Hilton’s broader campaign focus on affordability, a central issue in California’s gubernatorial race. He has previously highlighted housing and living costs as key concerns for voters. In a social media post after securing a spot on the November ballot, Hilton stated, "Change is coming; we are heading to Sacramento."
Reactions and Implications
Supporters at the announcement event cheered Hilton’s plan, while critics questioned its feasibility given the Legislature’s Democratic supermajority. The DMV’s elimination would mark a significant restructuring of state services, with potential impacts on wait times, service accessibility, and administrative efficiency. No independent cost-benefit analysis of the proposal was provided by Hilton’s campaign.
Hilton’s plan comes as California grapples with high costs of living and ongoing debates over state bureaucracy. The outcome of the November election will determine whether the proposal advances beyond the campaign trail.