Write a letter to the Gov, Lt. Gov and let them know that you are also sending a letter to the media (TV & newspaper).
Let them know that you aren't just going to take it lying down and that you want to let the public know what the DMV is doing.
This sounds like another case of a system that makes up it's own rules and enforces them without scrutiny.
I would be fuming if I were told that I had to pay for THEIR mistake!
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