Legislature(2001 - 2002)
05/01/2002 09:49 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 344(STA)
"An Act increasing fees for driver's licenses, instruction
permits, and identification cards; and providing for an
effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
LINDA SYLVESTER, Staff to Representative Pete Kott, Chair of the
House Rules Committee, testified this bill was introduced at the
request of the Division of Motor Vehicles. She informed this
legislation would increase fees for noncommercial driver licenses
from $15 to $20, and learner's permits by $10, as well as increase
the fees for identification cards. She stated the bill would also
enable the Division of Motor Vehicles to implement a conversion to
a digital license system, noting the Division requests $500,000 to
implement the IT component to support the digital system. She
assured this appropriation would be offset by fee increases, which
would generate between $750,000 and $900,000 per year.
Ms. Sylvester pointed out an inaccuracy in Section 1(a) on page 1,
lines 11 and 12, which reads as follows.
(3) Alaska is one of four remaining states that has
yet to convert from 1950s era technology to digital driver
licenses and personal identification cards.
Ms. Sylvester informed that since this bill was introduced, the
other three states have made the conversion and Alaska remains the
only state still operating with the outdated technology.
Ms. Sylvester stressed that the current Polaroid system, which has
remained virtually unchanged since 1954, operates manually and is
"uniquely susceptible" to fraud. She assured that by updating the
technology, the integrity of the nation's personal identification
system would be improved. She spoke of discussions occurring
following the terrorism incidents of September 11, 2001, regarding
the security of the identification system. She stated that these
discussions have resulted in an emphasis in strengthening the
states' systems. She emphasized that states have a responsibility
for the integrity of identification systems.
Ms. Sylvester stressed that obtaining a driver license signifies
more than passage of a driving examination, given the reliance on
these documents for identification for security and financial
reasons. She characterized Alaska's driver licenses and
identification chards as "breeder documents", explaining that once
in hand, airline tickets, passports, checking accounts, firearm
permits, credit cards, etc., could be parlayed. She remarked that
driver licenses are a key component of the theft identity
"phenomenon," which resulted in a loss of $7 billion the previous
year. She furthered that fraudulent manufacturing and use of Alaska
identification cards for certain purchases by underage users is
another problem.
Ms. Sylvester detailed the simple way to obtain a duplicate or
fraudulent driver license, and shared anecdotal stories. This
included a college student with an enlarged "picture" of a driver
license in which a person could pose for a photograph standing in
front of a yellow curtain covering the photo section of the driver
license; the photograph of the person and the picture of the
license would then be laminated, thus producing a realistic, but
fraudulent driver license.
Ms. Sylvester also spoke to difficulties of Alaska residents in
utilizing their Alaska identification while traveling outside the
State, explaining that the identification is sometimes not accepted
because it "looks too hokey." She furthered that the Division is
unable to issue replacement photo driver licenses to Alaskans in
the event their identification is lost or stolen during travel
because the Division does not maintain photographs. She qualified
that identification that does not include a photo is available,
however, airline security and other venues often require photo
identification.
Ms. Sylvester noted that the State's current identification system
relies on Polaroid for equipment and supplies and informed that the
company filed for Chapter 11 bankruptcy protection in October 2001
and that Chapter 7 bankruptcy protection is likely to follow. She
stated that the company's identification system has since been sold
to a company that serves 37 other states with identification
systems. She stated that replacement cameras for the current system
are no longer available and that film would be unavailable at the
end of the calendar year as well.
Senator Ward asked if any states currently utilize private
contractors to fully operate their driver license and
identification programs using privately owned equipment.
MARY MARSHBURN, Director, Division of Motor Vehicles, Department of
Administration was unaware of any states that contract for these
services. She told of "turnkey" systems available, but emphasized
these are primarily used for private security systems.
Senator Ward understood the state of Vermont might utilize a
private contractor.
Ms. Marshburn was unsure.
Senator Ward wanted to research the matter of operations in Vermont
before making a decision to support this legislation.
Senator Hoffman asked if the Division could acquire and install the
new equipment to be operational by the July 1, 2002 effective date
of this bill.
Ms. Marshburn answered no, and explained the effective date applies
to the date the fees would be increased fees to garner the
necessary funding to begin process to begin the conversion process
to a digital system. She informed 18 months would be required
before the new system is operational.
Senator Hoffman asked if licenses would continue to be valid until
the printed expiration date.
Ms. Marshburn affirmed. She anticipated that many people would
choose to renew before the expiration date given the greater
protection against fraud.
Senator Hoffman asked if an additional fee would be imposed for
early renewal.
Ms. Marshburn replied that the current fee for obtaining a
duplicate of an unexpired license would be levied.
Senator Olson asked that amount.
Ms. Marshburn answered $10.
Ms. Marshburn then explained the current Polaroid system, which is
somewhat difficult to alter or replicate, although significantly
easier than a digital system. She pointed out for Senator Leman's
benefit that engineering students tend to be the most inspired to
attempt to alter or create fraudulent identification.
Ms. Marshburn described the digital license technology that would
be used for production of licenses and identification as well as
for data storage. She informed the new licenses and identifications
would not require subtraction of birth dates from the current year
to determine the age of the holder. She furthered that licenses for
holders under the age of 21 would be oriented horizontally rather
than vertically to allow for ready recognition.
Senator Olson asked about the process to obtain a duplicate driver
license if the original is lost while traveling out of State.
Ms. Marshburn responded it is not possible to produce a duplicate
license if the holder is not present. She detailed the current
system of two photographs taken, with one placed on the face of the
license or identification and the other forwarded to the Department
of Public Safety. She stated that in the event of a lost or stolen
license, the Division could research the driving history of the
holder and verify that a valid driver license does exist for that
holder then fax that information to the holder. However, she noted
this does not verify that the holder of this document is the person
claimed, as no photograph is included.
Senator Hoffman asked if it is possible to hold two licenses. He
was told that possessing more than one is punishable with a $25,000
fine.
Ms. Marshburn was unaware of the fine system. She shared that she
obtained a State of Alaska identification card to utilize while
traveling. She therefore is less likely to lose her driver license.
Senator Hoffman commented that $25,000 was a large amount for such
an offense.
Senator Leman supported the conversion to digital licenses. He was
concerned about the ease of altering current licenses. He was also
concerned about the cost involved with such a conversion. However,
he agreed the funding mechanism proposed in this legislation is
acceptable.
Senator Leman noted the Division had indicated to him a request to
amend language contained in the intent section of the bill.
Ms. Marshburn remarked that the change should not be made.
Senator Leman "moved to report committee substitution House Bill
344 from Committee with individual recommendations and the
accompanying fiscal notes."
Co-Chair Donley requested a "definitive written answer" to Senator
Hoffman's question about the possession of more than one driver
license.
Without objection CS HB 344 (STA) MOVED from Committee with
accompanying $500,000 fiscal note #1 from the Department of
Administration, dated 2/20/02.
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