Fraud Revealed in DMV Privatization of Driver Testing Pilot Program

The DMV is asking 11,000 customers to verify their addresses after an investigation found that some customers were giving false Oregon addresses. Oregon law does not require proof of citizenship or legal immigration status to obtain a driver license.

Photo courtesy: gothamist.com

(SALEM) - An investigation by federal and state law enforcement, at the request of the Oregon Driver and Motor Vehicle Services Division, revealed fraud in a privatization of drive-testing pilot program, forcing the DMV to require verification of residence by 11,000 customers who took drive tests from two companies during 2003.

The investigation determined that some customers of two private companies, Catt’s Testing and DME, provided false Oregon addresses in order to obtain driver licenses.

DMV will send letters to affected customers, asking them to provide proof that they are residents of Oregon.

“We need to determine which of these 11,000 people are legal Oregon residents,” said DMV Administrator Lorna Youngs. “We apologize for the inconvenience to people who are lawful Oregon residents, but we have determined that this is the most reliable way to verify eligibility.”

DMV launched the third-party Class C (passenger vehicle) drive-test program in January 2000 as part of a privatization initiative directed by the Legislature. The program was patterned after the third-party drive-test program for commercial driver licensing.

Recipients will have 30 days to provide proof that they are Oregon residents. The state will cancel the driver licenses or identification cards of those who do not respond or who can’t provide proof of an Oregon residence address within 30 days.

Drivers who tested at DME or Catt’s Testing, and have moved within Oregon since obtaining their licenses, should send their current Oregon addresses to DMV as soon as possible. Otherwise, they may not receive the letter informing them of impending cancellation. If DMV receives no response, it will cancel a recipient’s license or ID card.

Oregon law requires individuals to provide their new address within 30 days after they move within the state.

Because the third-party testing companies such as Catt’s Testing and DME operated primarily in the Portland area, the majority of cases occurred in the metro area.

The information came as a result of police investigations that DMV requested in early 2003. The investigations led to the arrests and convictions of several people involved in providing false documents with Oregon addresses for customers who were not Oregon residents.

Observations and analyses by DMV employees led to initial suspicion that some customers of the third-party Class C pilot program were not Oregon residents. DMV notified Oregon State Police in spring 2003, spurring an investigation that lasted through the year.

DMV canceled the program in November 2003 and modified the list of documents accepted to verify residence address in January 2004. The agency has submitted additional changes to the list of acceptable documents to the state rules-making process – such as no longer accepting rental or lease agreements as proof of Oregon address.

At the conclusion of the police investigation and criminal trials, law enforcement provided DMV with the testimony, affidavits, statements, investigative interviews and an appointment book from one of the companies in March 2006. DMV then analyzed the information to yield the list of 11,000 customers.

Governor Kulongoski will submit a bill to the 2007 Oregon Legislature to achieve compliance with the federal Real ID Act, which includes a requirement that applicants provide proof of citizenship or legal immigration status in order to obtain a driver license. The 2007 Legislature will decide whether Oregon will adopt this requirement.