REAL ID - State Cost Estimates

As a general rule, include costs that you anticipate incurring as a
direct result of REAL ID regulation requirements. Include a cost only
once to avoid double-counting the cost of a single expense. Please try
and include what years each costs will be incurred, or a year-by-year
breakdown where appropriate.

1)  Will you be running information awareness campaigns for REAL ID
    advertising the new requirements?

Yes. Posters, brochures, TV, radio, website, etc.

2)  If so, how much (in dollars) do you plan to spend?

\$300,000 (through the re-enrollment period)

3)  How many first-time applicants do you anticipate to apply for a
    driver\'s license or ID card per year?

> 41,653 - 2006 figures

4)  How many renewals applicants for existing license holders do you
    anticipate?

> 82,856

5)  How many, of these renewal applicants, would have visited the DMV
    under status quo (without REAL ID) conditions?

> 57,999 (or approx. 70%)

6)  How many, of these renewal applicants, would have applied remotely
    (mail, internet, etc.) under status quo (without REAL ID)
    conditions?

> 24,856 (or approx. 30%)

7)  How many people do you anticipate to renew their license after they
    have already been issued a REAL ID per year?

We don't expect any changes in the renewal trend. We anticipate people
to renew their REAL ID's as they would have their previously issued
license.

8)  How much do you plan to spend for additional labor to process any
    increased workload directly resulting from REAL ID requirements?

\$2,047,032/yr.

9)  How many additional employee/work hours do you anticipate will be
    necessary to process the workload directly resulting from REAL ID
    requirements?

38,688 hours/yr.

10) What is the average hourly wage of employees that will participate
    in such processing functions?

> \$20.25

11) How much to you plan to spend on other overhead expenses directly
    resulting from REAL ID requirements (e.g. leasing additional
    customer service locations, increased window hours, etc.)? (Note: do
    not include labor costs, Data/IT costs, or security costs in this
    section. If you cannot exclude such costs in this section, do not
    include them in other sections.)

> \$14,000,000 Total
>
> \$500,000/yr. to lease 4 new buildings/offices + \$12,500,000
> (**half** of \$25,000,000 one-time cost for a new central office) +
> \$1,000,000 one-time cost for expanding field offices. **Note:** Only
> 50% of the cost of a new office building would be for REAL ID
> purposes.
>
> Our primary overhead cost would be in facility costs related to
> accommodating the need for more staff.  Most of our locations cannot
> accommodate any sizeable increase in staff.  It is likely we would
> need a new central office facility and would have to expand our field
> offices to meet staffing requirements.  We would likely have to
> discontinue our two mobile van operations, as they would not
> meet security standards. To replace these would require 4 new office
> sites to continue service in those locations of the state served by
> the vans.  Space, if available would need to be leased, to accommodate
> this service.

12) How many SAVE verifications do you expect to run that you would not
    have run if not for REAL ID requirements?

1,144/yr. more than we currently run.

13) How many SSOLV verifications do you expect to run that you would not
    have run if not for REAL ID requirements?

> N/A -- We already run on everyone

14) Do you currently verify in SSOLV using the real-time verification
    system or the batch system?

> Real-time

15) Do you plan to switch to either real-time or batch as a result of
    REAL ID requirements?

> N/A

16) Do you distribute cards from a central location, over-the-counter,
    or use both systems?

> Mostly OTC, but do Central issuance on approximately 100 per week

17) Do you plan to change your issuance process as a result of REAL ID
    requirements?

> No

18) What will the cost for redesigning the license document to meet REAL
    ID requirements (if cost is separate from contracted per card
    price)?

> \$70,000 -- Digimarc quote

19) What is your current cost per card for production purposes (e.g.
    contracted price per card from vendor)?

> \$2.59 (includes hardware/software maintenance)

20) What do you anticipate the cost per card for production purposes to
    be to meet REAL ID requirements?

> \$6.40

21) Please provide any cost estimates for Data/IT upgrades that are
    directly related to complying with REAL ID. Costs can include
    hardware, programming costs, training, etc. (Please do not include
    leased hardware covered under contracts with card vendors, of which
    the cost is included in the per card price)

    a.  Installing verification systems

> \$2,778,000

b.  IT costs related to any changes to the driver history records
    database

> \$249,000

c.  Changes in the photo capture process, including programming costs

> \$416,400

d.  Changes to include a record of legal presence in the United States

> N/A -- We already do this

e.  Changes to meet \"full legal name\" requirements

> \$304,000

f.  Changes to meet \"verifying primary residency\" or data storage of
    address in database

> \$134,100

g.  Storage of source documents to meet REAL ID requirements

> N/A -- We already store all of our license application/identification
> documents

h.  Additional hardware needed to meet requirements (e.g. computers,
    scanners, etc.)

> \$71,000

i.  General programming hours not included elsewhere

> 1,000

j.  Costs to meet various connectivity challenges

> Included in #21a

k.  Costs associated with business process changes

> \$50,000

l.  Additional IT training needed as a result of IT changes associated
    with REAL ID

> \$25,000

m.  Costs for verifications from non-federal databases

> \$11,200/yr.

n.  Any costs for maintenance to meet REAL ID requirements

> \$200,000

22) What are the costs for upgrades to meet the physical security
    requirements under REAL ID?

\$1,000,000

23) Please indicate how many employees you anticipate will need to
    undergo each background check that would not have undergone such a
    background check previous to REAL ID

> **Note:** Initially a total cost of \$11,850 for all of the checks
> indicated below for the existing 150 employees who process license/ID
> transactions, then approximately 15 of each check at a total cost of
> \$1,185 per year due to employee turnover. Currently these checks are
> only done on new DMV Enforcement positions.

a.  Criminal History Records Check (FBI)

> Initially: 150 -- Cost of \$6,600
>
> Yearly: 15 -- Cost of \$660

b.  Criminal History Records Check (fingerprint)

> Initially: 150 -- Cost of \$2,250
>
> Yearly: 15 -- Cost of \$225

c.  Immigration Check

> Initially: 150 -- Cost of \$1,500
>
> Yearly: 15 -- Cost of \$150

d.  Credit check

> Initially: 150 -- Cost of \$1,500
>
> Yearly: 15 -- Cost of \$150

24) How much do you plan to spend in labor and administrative costs for
    preparing an initial certification plan?

> \$100,000 (to hire a consultant)

25) How much do you plan to spend annually for labor and administrative
    costs in preparing an annual certification plan?

\$10,000

**Additional Information:**

A.  Average time it takes to process a license/ID application:

-   New application.

> 15 minutes

-   Renewal application.

> 10 minutes

[]{.mark}

B. Estimated time it will take to process a license/ID application:

-   New application.

> 30 minutes

-   Renewal application.

> 20 minutes

C. Digimarc Contract:

> Current contract with Digimarc expires on April 2009 with 2-year
> extension available. Maintenance is included in the per card price.

D. Fraudulent Document Training:

> We use AAMVA standards, however, we often consult with our Enforcement
> Division to use their expertise and field experience with fraud cases.
> Often times they will sit in, or lead, training sessions.

**Double-Counting:**

It appears as though the only double-counting I did was with the
"*Indirect Labor Costs*" and the "*Expected Additional Costs With The
Proposed Regulation*".

-   All of the *Indirect Labor Costs* are also contained in the
    *Expected Additional Costs With The Proposed Regulation*.

**Security:**

The only change to be made is to the "*Physical Buildings*" amount.

-   As discussed on the phone, \$25,000,000 (of the \$40,000,000) was
    for a new central office. As you pointed out, REAL ID would not be
    the sole reason for the need of a new central office, therefore, we
    estimate that only 50%, or \$12,500,000; can/would be considered an
    additional cost as a result of REAL ID.