The document provides an overview of an interim roads and transportation committee meeting at the Bureau of Motor Vehicles (BMV). The agenda includes discussing BMV initiatives, agency initiatives, and legislative initiatives. It introduces the BMV Commissioner and senior leadership team who are focused on improving operations, systems, and transparency. It outlines steps taken for transformation including an assessment, internal audit department, and systems improvement. Legislative goals are discussed around simplifying codes and fees while maintaining revenue streams. The vision is to make the BMV the most efficient and trustworthy agency through improved processes, accountability, and transparency.

1. Interim Roads and
Transportation Committee
October 8, 2015

2. Meeting Agenda
• BMV Foundation and Vision
• Agency Initiatives
• Legislative Initiatives
• Wrap up
• Questions
2

3. Commissioner Kent Abernathy
• Grew up in Jay County
• Graduated West Point - served seven years as officer in U.S. Army
• Over 15 years experience in the corporate banking industry in New York and
Indianapolis
• Vice President – managed all aspects of corporate banking relationship of
business clients in a broad range of industries
• Volunteered to return to active military duty
– September 2003 to December 2009
– leadership positions at the Pentagon in Washington, D.C. and Baghdad
• January 2010 joined the administration of Governor Mitch Daniels as Chief
of Staff for IDEM
• Appointed BMV Commissioner by Governor Mike Pence in February 2015
3

4. Did you know?
4
132 license
branches
1,400
BMV/C
associates
12.5 million
transactions
a year
2 million calls
to Contact
Center
7 million
registrations
in 2014
1 million
credentials
issued in 2014
Branch visit times less than 15 minutes!

5. Maintain Our Service
96%
Customer Satisfaction Rating
5

6. The Objective
“I want to make the back office at the BMV run
as well as the front office.”
– Governor Mike Pence
6
Good to Great

7. Building the Team
• New Senior Leadership Team
–Commissioner
–Chief of Staff
–General Counsel
–Chief Operating Officer
–Chief Information Officer
–Chief Financial Officer
7

8. BMV Senior Staff
Peter Lacy, Chief of Staff
• Graduated from The Citadel with Bachelor’s Degree; Earned Master’s in
Business Administration from Xavier University.
• Possesses 17 years of experience with a leading independent automotive
paint distributor featuring over 2,400 employees spread across 176 corporate
stores.
• Spent the last 7 of those years as National Vice President of Operations,
responsible for $70M budget supporting $500M in revenue.
• Has demonstrated a proven ability to lead employees through periods of
significant organizational change due to new systems implementations and
business model transformation.

9. BMV Senior Staff
Adam Krupp, General Counsel
• Graduated from Purdue in 3 years with a Bachelor’s Degree in Speech
Communications and Theatre Education and a minor in English.
• Graduated from IU McKinney School of Law, cum laude, and was a member
of the Indiana Law Review.
• Has practiced law for 12 years, the majority of which have been as a litigator
in two of the nation’s top-ranked law firms in NYC, representing clients such
as the Ford Motor Company, Comcast, and Celanese Chemical Corporation.
• Experience in State government includes a judicial clerkship for Judge
Mathias of the Indiana Court of Appeals, and Deputy Director, Contracts
Manager, and Counsel for Indiana’s Division of Family Resources.

10. BMV Senior Staff
Kevin Garvey, Chief Operating Officer
• Graduated with a Bachelor’s Degree from IU – Kelley School of Business.
• Joined the BMV in December 2008; served as the Director of Supply Chain
Management, Executive Director of Fulfillment Operations, and Deputy
Commissioner of Central Operations.
• Promoted to Chief Operating Officer in the fall of 2014.
• Responsible for ensuring day-to-day tasks are performed with an emphasis
on efficiency, processing accuracy and cost savings.
• Implemented the BMV’s on-demand license plate production system —
currently, Indiana is the only state utilizing this process.

11. BMV Senior Staff
Christopher Riester, Chief Information Officer
• Graduated from IU with a Bachelor’s Degree in Telecommunications.
• Was CEO of a technology consulting start-up with a focus on setting long-
range, strategic growth initiatives, building a best-in-class team and
delivering cutting edge technology solutions to premier clients.
• Led the customization of Managed Services Provider solutions for clients
including: State of Indiana, Luxottica, Conseco, Polo, Hillrom, Papa John’s,
Republic Waste and Ralph Lauren.
• Has acted in the roles of Project Manager, Business Analyst, Software
Developer and Trainer for premier clients including: Eli Lilly, Praxair,
Caterpillar and Wheaton Van while a consultant for Whittman-Hart.

12. BMV Senior Staff
Jeff Moon, Chief Financial Officer
• Graduated with a Bachelor’s Degree from Ball State with a major in
Accounting.
• A Certified Public Accountant since 1989.
• Possesses eight years of CFO experience with two private sector
companies. Was able to raise private equity, reduce expenses/improve
operations and eventual sale of each company which resulted in saving over
300 Indiana jobs.
• Has spent nearly 20 years in Public Accounting starting as a staff accountant
and worked his way up to Audit Partner at the large CPA firm, Clifton
Gunderson. Relocated with this firm to Raleigh, NC in order to serve as
Partner-in-Charge of newly opened office.

13. Steps Toward Transformation
• Governor Pence directed outside assessment of BMV
– BMV adopts policy requiring all BMV employees to report
suspected overcharges or undercharges
• BKD assessment “supplements the ongoing procedures
being performed by associates at the BMV and their
outside legal counsel”
• Report released May 2015
– Released to public
– posted on myBMV.com
13

14. BKD Findings
• Compliance
– Indiana Code complex, confusing, contradictory
– Lack of independent and objective oversight
• Technology
– Feasibility of systems
– Documented practices
– Access controls
• Operations
– Organizational structure
– Documented processes and procedures
– Operational controls
14
Confirmed the need for change!

15. Three-Legged Stool
15
O
P
E
R
A
T
I
O
N
S
BMV

16. Agency Initiatives
Peter L. Lacy
Chief of Staff

17. Overall BMV Systems
Improvement
17

18. Agency Refocus
– Project Management Office (PMO)
– Internal Audit Department
– Overall Systems Improvement
18

19. Project Management Office
• Structured approach to reporting and
identifying issues
• Sets goals to measure performance
• Holds employees accountable
19

20. Project Management Office
• PrideLine
– Employees report areas of improvement
• Business Advancement Team (BAT)
– Subject matter experts from different
departments identify issues, provide a
Statement of Work and establish a plan to
implement a fix
20

21. Internal Audit Department
21

22. Internal Audit Accountability
22
Director, Internal
Audit
Commissioner
State Board of
Accounts
Auditor of State General Assembly Governor
Create Audit Plan
Approve Activity
Evaluate Activity
Review Progress
External
Stakeholders
Internal
Controls
Review ProgressReview Progress

23. System Improvement
23
BKD Assessment Findings
Information
Technology
Department
Operations
Legislative
Code

24. STARS Operating System
Current environment
• System deployed 2008
• Homegrown
• System of patchwork
fixes
• No complete system
refreshes
Future decisions
• Feasibility study to
understand options
• Refresh
– Stars 2.0
– Update architecture
– Develop enhancements
• Replace
– Look at what other states
use
– Is there existing system to
use
24

25. Current Status
Certified Partners
Defined process for recording
issues
Developed solutions
Processed refunds
34 findings
Each has been assigned to a
senior staff member
Progress is being tracked by PMO
25
State Fee
Phase I
Phase II
Phase III
201520162017

26. Legislative Initiatives
Adam J. Krupp
General Counsel

27. 27

28. 28

29. 29

30. 30
• Total transactions over 18 months: 97
• Average annual transactions (including new and renew): 1,389

31. 31
Of the “38 percent of the IDs” (451 total) used less than 100 times in
an 18-month period, only 92 fees are in play.
• Taxes are included.
• Duplicate entries exist.
• Master fee unique ID numbers (6 digits) attach to each fee;
in some cases, there are multiple master fee unique ID
numbers for the same fee, described differently in the
computer system.
• 6 fees the BMV no longer charges.
• Several fees have been combined.
• Ex: Fee for new registration & renewal registration = 1 fee
now

32. 32
BMV Legislative Initiative Workgroup Meetings

33. 33
BMV Legislative Initiative Stakeholder Meetings

34. Legislative Goals
34
1. Evaluate Structure
2. Simplify the Code
3. Promote Transparency
4. Preserve Existing Revenue Streams
5. Revenue Neutrality

35. Registration and Fees
35
• 191 ways to register a vehicle (including half-year fees)
• 26 vehicle-related weight classes
• Different vehicle types within the same weight classes pay
different fees
• Farm vehicles pay approximately 52% of the basic
registration fee for the appropriate weight class (original
intent was 50%, but various legislative add-ons over time
have bumped this number up)

36. BMV Credentials (etc.)
36
• Operator’s License
• Commercial Driver’s License
• Chauffeur’s License
• Public Passenger Chauffeur’s License
• Identification Card (3 types)
• Endorsements

37. 37

38. Legislative Goals
38
1. Evaluate Structure
2. Simplify the Code
3. Promote Transparency
4. Preserve Existing Revenue Streams
5. Revenue Neutrality

39. End Product?
39
• Easier Navigation
• Predictability
• Consistency
• Less Confusion

40. Wrap-Up
40

41. Transformational Change
• Instituted structured approach for identifying and
reporting issues
• Established process for continuous improvement
• Set goals to measure performance
• Laying foundation for transparent oversight
• Evaluating and upgrading systems
• Preparing proposal to streamline legislative code
41

42. Vision
• Make the Indiana BMV the most efficient
and trustworthy motor vehicle agency in
the country.
– Improved, well-documented processes and
procedures
– Clear lines of accountability
– Focus on compliance
– Public transparency
42

43. 43

44. Questions?
44