Legislature(2001 - 2002)
04/23/2002 03:45 PM Senate STA
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HB 344-INCREASE DRIVER'S LICENSE/PERMIT FEES
MS. SYLVESTER said that HB 344 was introduced by the House Rules
Committee at the request of the Division of Motor Vehicles (DMV).
HB 344 increases the fees for drivers' licenses and ID cards by
$5.00 and learners' permits by $10.00. It allows DMV to
implement a conversion to a digital drivers' licensing system.
Examples of what a drivers' license might look like were in the
packets. She pointed out that the information on the drivers'
licenses is stipulated in statute and this bill would not have
any impact on that. The back of the license would have a barcode
that would allow the police to scan and protect the licensee from
having their private details broadcast.
She said the fee increase would go into the General Fund and is
expected to increase revenues by $750,000 to $900,000. The cost
of implementing the conversion is expected to be $500,000, which
is for the computer systems only. DMV already has the funds for
the equipment.
She said that Alaska is one of the three remaining states still
using the old Polaroid personal identification system. By
converting, Alaska will step up its efforts to ensure the
integrity of this nation's individual identification system.
Since September 11, there has been focus on the need to harden
the drivers' license system as a security measure. There was
discussion about switching to a national identification system,
but that idea was abandoned. However, there is still a need for
increased security and Alaska's identification system is a weak
point. She explained that the ID card is considered to be a
"breeder document," which can be parlayed into other documents
such as airline tickets, passports, checking accounts, firearms
permits, credit cards, etc. The drivers' license is the
cornerstone of the identity theft phenomenon, which resulted in
$7 billion in losses last year.
She said another problem with the current system is underage
individuals obtaining or manufacturing fraudulent identification
cards. The packet contains resolutions and comments from
restricted sales individuals who support the conversion of the
system.
MS. SYLVESTER explained that the drivers' license has become a
critical component in our society's security, both personal and
financial. The State of Alaska has a responsibility to ensure
the integrity of that system. Yet there is a lot of anecdotal
information about how the identification cards can be
fraudulently obtained. DMV doesn't have the ability to pull up
photographs. Someone can easily steal your Social Security
Number or mail and go into the DMV and if they match your
biometric data, they can walk out with your identification. If
you travel and you lose your license or have it stolen, DMV is
also unable to replace your lost identification with your
photograph. This makes it very difficult to get back to Alaska
without one of the only proofs that the airline will consider as
an identification form.
She said Polaroid is in Chapter 11 bankruptcy and has sold their
personal identification business to a company called Digimark,
who will only supply Alaska with film until the end of the year.
The other two states that still use the Polaroid system, Oklahoma
and Rhode Island, have already put out RFP's for digital systems.
This will also impair Alaska's ability to get commercial-grade
Polaroid film. She said that when digital cameras came onto the
market, it was the death knell of the old Polaroid drivers'
license system.
CHAIRMAN THERRIAULT asked Mary Marshburn to speak.
MS. MARY MARSHBURN, Director of DMV, said that when DMV started
pursuing a digital system, there were seven "photo states,"
meaning states that still use the instant photograph process. At
the beginning of the session, there were only three "photo
states." Now Alaska is the only state without even a RFP out for
services for a digital licensing system.
She said the current system is a manual process; it uses
preprinted forms, instant photographs and a laminated security
pouch. It is subject to theft, fraud and alteration. Security
is the biggest advantage to a digital system. It is more
difficult to alter or replicate because it does not use
preprinted forms or pouches or instant photos. The information
is computer generated and fused onto a chip. Computer generation
and flexibility enables DMV to place more and more complex
security features into the license. The photo can be stored on a
server, which allows DMV personnel to access it to verify your
identity the next time you need a license or when you travel.
MS. MARSHBURN said the biggest benefactor of a conversion would
be law enforcement. HB 344 enjoys the support of law enforcement,
including the Alaska State Troopers and the Municipality of
Anchorage Police Department, which is computerizing its cars and
are looking forward to the change. Alcohol and tobacco sellers
are also in support of HB 344 because a new system can help them
with their underage problem.
CHAIRMAN THERRIAULT asked if people regularly came up to the
counter at DMV to commit license fraud and alteration.
MS. MARSHBURN said that in the past four months in one Anchorage
office alone they have had five arrests.
CHAIRMAN THERRIAULT asked if there would be an embedded chip or
just a barcode.
MS. MARSHBURN said that although the disc upon which the image
and license data is fused is referred to as a "chip," it is not a
"chip" as we think of a computer chip.
CHAIRMAN THERRIAULT asked whether the barcode contained the
information or if it contained the license number that would
access the information through the computer system.
MS. MARSHBURN asked if he was looking at the example in the
packet.
CHAIRMAN THERRIAULT said yes.
MS. MARSHBURN said that the barcode would contain all of the
information required by law, such as name, address, date of
birth, sex, hair, eyes and weight, along with any driving
restrictions, but not the Social Security Number.
CHAIRMAN THERRIAULT pointed out that the underage license
examples in the packet were laid out vertically. He asked if
this was the intention of DMV to do this.
MS. MARSHBURN said she was excited to have the licenses be
formatted that way. DMV wants to keep the adult licenses in a
horizontal format and the underage licenses in a vertical format.
It helps everyone who has to deal with the age group. She noted
that the vertical license says "under 21 until" along the top.
With the current system, the alcohol or tobacco salesperson has
to look at the birth date and calculate the age, which can be
difficult and time consuming. Using the "under 21 until" system
would be much easier for them.
CHAIRMAN THERRIAULT asked if there were other questions for Ms.
Marshburn from the committee members. He asked if Del Smith had
comments or if he was just there to answer questions.
DEPUTY COMMISSIONER DEL SMITH, Department of Public Safety, said
he was there to answer questions.
SENATOR PHILLIPS asked if Social Security Numbers were off the
drivers' license now.
MS. MARSHBURN said they were. As of last year, Social Security
Numbers were not allowed on the face of the drivers' licenses,
nor would they be in the barcode.
CHAIRMAN THERRIAULT pointed out that the increased fees would
cause increased revenues of $900,000 and the contractual IT
system cost would be $500,000 the first year.
SENATOR PHILLIPS asked Ms. Marshburn if DMV would take
responsibility for the fees being raised and not tell complaining
customers that the Legislature did this.
MS. MARSHBURN said yes. The fees are equal to $1.00 per year,
and they were last raised eleven years ago. She has no qualms
saying it is well worth it.
SENATOR PHILLIPS said he'd been through this before where the
employees said the Legislature did it.
MS. MARSHBURN promised that wouldn't happen.
CHAIRMAN THERRIAULT asked if there was anyone else that wished to
testify on HB 344. There was no one. He asked if there were any
amendments from committee members.
SENATOR BETTYE DAVIS moved to pass CS HB 334 (STA) from the
committee with individual recommendations and the accompanying
fiscal note.
CHAIRMAN THERRIAULT asked if there were any objections.
CSHB 334(STA) moved from committee with attached fiscal note and
individual recommendations.
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