Hilton's proposal would have drivers complete anything related to obtaining a driver's license online instead of in person.
DMV functions would also be performed by counties and local governments rather than a statewide office.
Hilton would also cap registration at a flat fee of $73 per vehicle.
"With the DMV and vehicle registration, they charge the highest vehicle registration in the country for the worst roads in the country," he said. "Ranked 50th out of 50 on our roads. On another measure, we're 49th out 50, worse only in Alaska."
Hilton's opponent, Democrat Xavier Becerra, is now agreeing to one of the six debates proposed by Hilton ahead of the November election.
It is now set for September 30, less than a week before counties start mailing ballots to Californians.