NGA Contact: Jodi Omear, 202/624-5334
NCSL Contact: Bill Wyatt 202/624-8667
WASHINGTON—A comprehensive analysis of the federal Real ID Act was released today, revealing a cost to states of more than $11 billion over five years. The report—which reflects findings from a survey conducted by the National Governors Association (NGA), National Conference of State Legislatures (NCSL) and the American Association of Motor Vehicle Administrators (AAMVA)—sets forth the consequences and costs of implementing the act and makes recommendations to facilitate a more realistic approach.
The federal Real ID act creates national standards for issuing state drivers licenses and identification cards. Among the costly requirements necessary for implementation of the law, states will likely be required to: re-issue drivers licenses and identification cards to all 245 million current holders within five years; establish on-site identification verification procedures at the source of issuance; and meet specific security and production requirements for the new card. Detailed data provided by the 47 jurisdictions which responded to the survey indicates that among the cost of the changes to the driver’s licensing process are a one-time calculable expense of nearly $1 billion and ongoing costs of more than $10.1 billion for the first five-year enrollment period.
The report also suggests additional costs, such as the added time and effort citizens will spend to comply with the state motor vehicle department. Anticipating three to four identity documents per applicant, with more than 80 million transactions performed annually, applicant processing time will more than double for citizens in most states, with waits in some areas increasing by up to 200%. Several provisions under consideration by the Department of Homeland Security were not addressed by the survey, and could potentially further impact citizens and DMVs and add significantly to the costs described above.
“States feel it is vitally important for Congress and the administration to understand the substantial fiscal and operational cost of altering state systems, said NGA Executive Director Raymond C. Scheppach. “This report identifies the most significant costs of Real ID compliance and describes the impact to states’ business processes.”
“There’s no question that state legislators believe driver’s licenses should be as secure as is possible,” said NCSL Executive Director William Pound. “The $11 billion question is, ‘Who’s going to pay for it?’ State legislators are eager to work with Congress and the administration to ease the impact of Real ID and look forward to doing so.”
Among the recommendations outlined in the report, states asked the federal government to:
- extend the compliance deadline;
- provide the funds necessary for states to comply with Real ID;
- provide the federal electronic verification systems necessary to comply with the law;
- require states to employ electronic verification systems only as they become available;
- implement a 10 year re-enrollment schedule;
- adopt uniform naming conventions to facilitate electronic verification between files;
- allow reciprocity for persons already vetted by the federal government;
- establish card security criteria based on performance—not technology; and
- grant the Secretary of Homeland Security the flexibility to recognize innovation at the state level.
“As those primarily responsible for issuing licenses and identification cards, governors, state legislators and motor vehicle administrators are working together to ensure the act is implemented in a cost-effective and operationally feasible manner,” said AAMVA President and CEO Linda Lewis-Pickett. “Our goal is to improve the security and integrity of licensing and identification systems to ensure maximum safety and minimum inconvenience for all Americans.”
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The National Governors Association (NGA) is the collective voice of the nation's governors and one of Washington, D.C.'s most respected public policy organizations. NGA provides governors with services that range from representing states on Capitol Hill and before the administration, to developing policy reports on innovative state programs and hosting networking seminars for state government executive branch officials. The NGA Center for Best Practices focuses on state innovations and best practices on issues that range from education and health to technology, welfare reform, and the environment. For more information about NGA and the Center for Best Practices, please visit www.nga.org.
The National Conference of State Legislatures is the bipartisan organization that serves the legislators and staff of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system. For more information, visit www.ncsl.org.
The American Association of Motor Vehicle Administrators (AAMVA) is a nonprofit organization committed to enhancing safety and security through motor vehicle administration and law enforcement. AAMVA develops model programs in motor vehicle administration, law enforcement and highway safety. The association's programs encourage uniformity and reciprocity among the states and provinces, and liaisons with other levels of government and the private sector. Founded in 1933, AAMVA represents the state and provincial officials in the United States and Canada who administer and enforce motor vehicle laws.