Please find below an example of UPI's continuing coverage of homeland
security and related matters. A shorter version appeared on A5 of
Friday's Washington Times. I hope you find it interesting. You may link
to the full length version on the Web here:

http://www.upi.com/inc/view.php?StoryID=20060921-060334-7007r

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or archive this article, or get more information about UPI products and
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Shaun Waterman
UPI Homeland and National Security Editor
E-mail: [EMAIL PROTECTED]
Tel: 202 898 8081
Web-page: http://homeland-hack.blogspot.com/


States: cost of Real ID is $11B
By SHAUN WATERMAN
UPI Homeland and National Security Editor

WASHINGTON, Sept. 21 (UPI) -- Overhauling America's driver licensing
systems to make them secure against identity thieves and undocumented
migrants will slam state governments with direct costs of more than $11
billion over the next five years, according to a survey by state
officials. 

The overhaul, mandated by Congress in last year's Real ID Act, will also
"have a major impact on services to the public and impose unrealistic
burdens on states to comply" with a May 2008 deadline. 

The National Governors Association and the National Conference of State
Legislatures, joined by the American Association of Motor Vehicle
Administrators, based their projections on data from 47 departments of
motor vehicles around the country, which answered hundreds of questions
about the costs of complying with the national standards on document
security and applicant-identity verification the act mandates in time
for the deadline. 

Their report, published Thursday, paints a grim picture of a
transformation it says states cannot complete on time except at huge
expense and at the risk of overwhelming an infrastructure already
running at full capacity. 

It warns that delays in publishing rules for implementing the law mean
projected costs could rise even higher, depending on the eventual shape
of the regulations. It calls for Congress to push legislative deadlines
back and provide more federal money for implementation; and for homeland
security regulations to be written in a way that provides more
flexibility for state governments to comply. 

Officials at the Department of Homeland Security, where the regulations
are being drafted, said they were working closely with state officials
and listening to their concerns. Spokesman Jarrod Agen said the
regulations would be published by the end of the year and that the
department would issue its own cost estimates then. 

"We recognize that (state motor vehicle agencies) could be overwhelmed,"
he told United Press International. "We're drafting the regulations so
that doesn't happen." 

The report says the biggest costs, nearly $8.5 billion, or 70 percent,
are those associated with re-issuing all 245 million American drivers
licenses so that they comply with the new standards. 

Because the law requires that all documents used to establish identity
be verified, and that license holders prove either their citizenship or
their right to live in the country, the report says: "Efficiencies from
alternative renewal processes such as Internet and mail will be lost"
and states will have to pay out to hire more workers and stretch
business hours to meet the huge demand. 

The five-year deadline for re-enrollment that officials are currently
considering, says the report, would increase the workload at state motor
vehicle bureaus by more than 130 percent on average and more than double
transaction times, resulting in "severe customer service disruptions." 

It calls for the re-enrollment deadline to be made ten years, which will
reduce the excess burden and spread the costs. 

The report also says the law's mandate for electronic verification of
identity documents needs to be relaxed, given that states anticipate
processing more than a billion verifications over the next five years
and that only one of the five systems required to meet the mandate is
actually up and running. 

The report says states should be able to go on using their existing
verification system until the new systems are established. 

Also included in the $11 billion price tag is $248 million to change the
way state agencies take photos, because the law requires that agencies
now do this at the beginning of the process, rather than the end, so
that photos of rejected candidates are available; these can then be used
to prevent them making subsequent applications. 

That quarter billion does not, however, include the costs of special
facial imaging recognition software that can be used to compare
applicants' photos with photos of existing license holders, to prevent
people making multiple applications or trying to change their identity. 

"Although photo capture of all applicants is a useful tool, its
effectiveness is diminished greatly without a significant investment in
facial recognition technology," says the report. 

Verifying that foreigners are legally in the country before issuing them
licenses is another area where states will face problems, it says. 

The Systematic Alien Verification for Entitlements, or SAVE, system -- a
homeland security network which reports the immigration status of
foreigners to verify eligibility for federal benefits -- "will have to
be retrofitted" so that motor vehicle agencies can use it, the report
says. 

Currently 21 states have on-line access to SAVE, the report says, but
the system reports too many cases as simply "pending" and is only
operational in real time 75 percent of the time. It needs upgrading,
says state officials.

(c) Copyright 2006 United Press International, Inc. All Rights Reserved


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