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The Honolulu Advertiser
Posted on: Friday, September 22, 2006

New driver ID to cost millions

By Mike Leidemann
Advertiser Staff Writer

New federal security rules for issuing driver's licenses could cost millions to implement in Hawai'i — and an estimated $11 billion to put in place nationwide, according to a national survey of states released yesterday.

The requirements — which are not final — are part of the Real ID Act of 2005, which grew out of a recommendation by the Sept. 11 commission.

"We know it's going to cost big bucks, in the millions," said Dennis Kamimura, administrator of the Honolulu Motor Vehicle and Licensing Division. "It all depends on what they are going to require of us."

The law requires states to incorporate common security features to prevent tampering or counterfeiting, such as using standard materials in every state to print the cards. States will have to verify the legitimacy of documents used to obtain a license and buy equipment to digitally store those documents.

Without such features on their licenses, people would not be allowed to board an airplane or enter a federal building.

If all the federal regulations are adopted, Kamimura said the new law could dramatically increase public waiting times for driver's licenses throughout Hawai'i. The biggest problem for local officials could be verifying the birth certificates of people born outside of Hawai'i, he said.

"If they require to verify all the documentation before you can get a license, it's going to cost a lot of money and all the lines are going to be a heck of a lot longer," Kamimura said.

Hawai'i already requires a birth certificate and Social Security number to obtain a new or renewed license, but officials have a link to a nationwide computer system that allows verification of a Social Security card quickly.

No such system exists to check birth certificates, he said.

"Right now, we accept the proof that's offered on face value. If we have to go all around the country to check on birth certificates, it's going to be very time-consuming," said Kamimura, who said the city currently spends about $8 million a year on driver's licensing, including personnel costs for about 100 employees in his division.

The survey released yesterday was conducted by the National Conference of State Legislatures, the National Governors Association and the American Association of Motor Vehicle Administrators.

William Pound, executive director of the National Conference of State Legislatures, said, "There's no question that state legislators believe driver's licenses should be as secure as is possible." He added, "The $11 billion question is, 'Who's going to pay for it?' "

Seven of the Sept. 11, 2001, hijackers exploited a loophole that allowed people to obtain driver's licenses and ID cards by submitting sworn statements instead of proof of residency or identity.

The biggest cost, about $8.5 billion, would come in re-enrolling the 245 million people who already have driver's licenses and identification cards, the survey found. Those people would have to show documents like birth certificates and Social Security cards at motor vehicle offices.

"If you can't find those documents, you might find yourself walking instead of driving," Tom Wolfsohn, chief policy officer for the American Association of Motor Vehicle Administrators, said yesterday.

The Department of Homeland Security said the government worked closely with associations representing states as it prepared the report.

"Congress passed the Real ID act to help ensure that other potential terrorists don't similarly use fraudulent documents to board planes, enter nuclear facilities or gain authorized access to federal facilities," Homeland Security spokesman Jarrod Agen said Wednesday.

The agency will release its own cost estimates with its final rules by the end of the year, he said.

The law authorizes Congress to pay for the changes but doesn't specify an amount. Pound said the government has released $6 million to date for state pilot programs.

Typically, state motor vehicle agencies are financed by a combination of gasoline taxes, fees and fines. So the extra costs tied to the new security rules could be passed along to consumers.

The survey does not break down the costs by state. States earlier released estimates to The Associated Press, based on equipment they expect to buy, training they must do and the potential hiring of new employees.

Officials in California, with 25 million licensed drivers and ID cardholders, said it would cost $500 million over five years to comply with the law. Texas, with 15 million licensed drivers, said startup costs could reach $167 million with annual, ongoing costs of $101 million a year.

Ohio, with a stubbornly high unemployment rate and a recent history of tight budgets, said implementation could cost about $45 million, with about $15 million in new, annual costs.

North Dakota, with a motor vehicle department budget of just $5 million, estimated it would cost up to $15 million to implement the changes.

The Associated Press contributed to this report.

Reach Mike Leidemann at mleidemann@honoluluadvertiser.com.