DMV forces Derry to quit Web registration

The town of Derry has removed its new on-line motor vehicle registration program from its Web site in the wake of a warning issued by state officials.

The program was shut down on June 28 after a representative from the state Division of Motor Vehicles visited with town officials to discuss an earlier request from the state to halt the service.

The DMV had previously threatened to strip towns of their municipal agent status for using E-Reg, an on-line car registration program developed by Interware Development Co. Inc. of Mont Vernon. Several town officials say the program is cheaper and more effective than the software the state wants them to use, called COMPASS.

In a letter dated June 18 and sent to some New Hampshire municipalities, DMV Director Virginia Beecher advised towns not to use the E-Reg software.

Beecher had earlier sent a cease-and-desist order to Derry officials, giving the town 30 days to take E-Reg off their Web site or face losing their municipal agent status.

The DMV head cited privacy issues, downloading “confidential state information” with limited security, and E-Reg’s e-check payment system as reasons the software may be “in violation of laws, statutes and agreements.”

“We are basically agreeing to disagree at this point, but we have shut it down,” Jim Turse, interim town administrator, told the Union Leader. “At this time we are not prepared to litigate on this issue.”

Turse said he has contacted the New Hampshire Municipal Association to discuss the matter, and has spoken with several attorneys.