Sources of Revenue:

Other Fund

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

The purpose of this legislation is to provide that West Virginia will not participate in the REAL ID Act of 2005, but will allow citizens an option to continue to obtain a “REAL ID driver’s license or non-driver identification card.” This bill repeals most of the driver’s license document requirements West Virginia already had in place by statute or by legislative rule before REAL ID. REAL ID requires that identity and birth date of applicants be verified by either a birth certificate or a U.S. Passport. These requirements are in WV statute and predate REAL ID. REAL ID requires that Social Security numbers be verified by submission of the Social Security Card. This requirement has been in a Legislative rule (Legislative Rule 91 CSR 4) long before REAL ID. Proof of legal name change is required by WV Statute and Legislative rule as well as the requirement of proof of residence address. Legal Presence has been in WV law since 2003, it too is required under the recent enactment of REAL ID. Currently, the Division of Motor Vehicles issues approximately 485,000 driver’s licenses and non-driver identification cards per year. More than one half, or 260,000, are driver’s license renewals, with 225,000 issues divided between graduated driver’s licenses, duplicate driver’s licenses and non-driver identification cards. New, first time applicants for driver’s licenses as well as driver’s transferring to West Virginia have always been required to present the documents now being required of driver’s license renewal customers. Applicant’s desiring to change their names have also always been required to provide certified copies of name change documents. Based on our current experience, approximately 47% of current applicants are requesting “REAL ID” cards. Reasons for this percentage vary, but reports from drivers indicate they have been required to present “REAL ID” driver’s licenses or ID cards for tax preparation, checks cashed in financial institutions, and to complete federally-sponsored student loans. Changing the current process will require an additional layer of explanation regarding the new choice to present or not present documents now. Currently, if an applicant chooses to opt for a noncompliant driver’s license or non-driver identification card, [Not For Federal Use] an upgrade to either can be accommodated by presenting his or her driver’s license and one current proof of residency. No additional documents are required as everything else is on record. Under this legislation the entire process would need to be restarted. Also, the current data storage may need to be separated, creating a need for an additional data base for the noncompliant driver’s license and identification card. With about half of current applicants now requesting REAL IDs, it is difficult to estimate if that number would decrease if this bill were to become law, especially since the enforcement of the REAL ID requirement has not started at airports and other federal facilities. The Federal rule provides that federal enforcement will begin on January 1, 2014, however, some federal agencies have initiated enforcement. It is also difficult to project numbers as more states come in compliance, the more the REAL ID driver’s license will become the Gold Standard for identification for the private sector banks, and other entities requiring identification. Since implementation of REAL ID in West Virginia, transaction times for processing driver’s licenses have increased due to applicant questions and the physical time it takes to review and scan the applicant’s vital documents. However the additional time needed to explain yet another choice and consequences, the time saved then expended is likely a wash. The costs of the two types of licenses as per our contract with the vendor: Non REAL ID Compliant license $ 3.71 REAL ID Compliant license $ 8.43 Conceivably the State could save the difference in cost ($4.72 per card) if document requirements were eliminated based on applicants choosing a non-REAL ID compliant license. However, it is impossible to project the fiscal impact of this bill because most of the equation is based on future decisions by the Federal government concerning enforcement at airports and other federal facilities, the number of states that choose to comply, and whether or not federal sanctions for states which are non compliant are increased (reduced federal highway funding for example) or reduced or if states are permitted to offer compliant and non compliant driver’s licenses.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2013 Increase/Decrease (use"-")	2014 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	0	0
Personal Services	0	0	0
Current Expenses	0	0	0
Repairs and Alterations	0	0	0
Assets	0	0	0
Other	0	0	0
2. Estimated Total Revenues	0	0	0

Explanation of above estimates (including long-range effect):

***SEE FISCAL NOTE***

Memorandum

Person submitting Fiscal Note: Jerry L. Conrad
Email Address: Jerry.L.Conrad@wv.gov