The Metropolitan Club: October 16, 2008

Brian Zimmer, President

The Coalition for a Secure Driver’s License (CSDL) is a non-partisan, 501(C) (3) educational public charity with offices in New York City and Washington, DC. Our funding comes from foundations and donors in 48 states and we derive NO donations from commercial interests nor do we represent them. CSDL’s mission is to compile educational materials and research about the public safety benefits of a secure driver license. CSDL supports comprehensive DMV procedures for authenticating identification in all states across the country.

Our country’s identification documents are issued by the states, following the two hundred
year tradition of state prerogatives regarding numeration of their citizens. Since July, 1913,
when New Jersey became the first state to issue drivers’ licenses, that document has gained many more uses than just the qualification that a person had sufficient driving skills and knowledge of traffic laws.

Today, in addition to authorizing the holder to drive an automobile on the public roads, we are asked to provide a driver’s license when we want to open a bank account, cash a check at a convenience store or be treated by a doctor.

Employers are required by law to ask for a driver’s license or state issued ID card when
completing the U.S. Department of Labor’s I-9 employment form for a newly hired worker.

We haven’t time today to list the federal and state laws that specify a driver’s license as an
identity confirmation for public benefits and service. Once we all recognize that a driver’s
license serves other purposes of state and federal government, we all should understand that it is just as important to authenticate the identity of the individual.

Most states do a very good job of verifying that an applicant can drive a car safely before they
issue a driver’s license. However, many states are overdue to upgrade their licensing practices and systems to verify the true identity of that same person before issuing the most universally accepted form of identification in America, the driver’s license. The result is that many people hold licenses in multiple states, they hold licenses in names that do no match their legal names, they hold licenses issued in other peoples’ names, and they hold licenses in completely fictitious names.

Why do people game the system to obtain drivers’ licenses in names other than their own?
They do it because we let them! Probably the biggest reason is that they’ve lost their license
through action of law, most often because of repeated violations of state DUI or reckless driving laws. Some states use the driver’s license as a tool to address other law violations, such as failing to pay child support payments.

Then there is the most controversial reason of the day, which is people who are in the United States on an unlawful basis, who seek drivers’ licenses and state issued IDs so they can meet employer requirements as well as obtain the same public benefits awarded to citizens and legal residents. CSDL does not take positions regarding immigration, but we do support state practices that authenticate the identity of all applicants, and recognize that passports are the only document issued by foreign governments that are sanctioned as reliable proof of identity under international law and United Nations treaty law.

Consequently, CSDL strongly supports voluntary state compliance with federal standards for the identity authentication of applicants for driver licenses and state issued ID cards. Recognizing that these regulations pertain to federal responsibilities for national security, CSDL supports federal funding for voluntary state compliance with PL 109-13 (REAL ID). This law, initially passed by the U.S. House of Representatives as part of the Intelligence Reform and Terrorism Prevention Act of 2004, was deemed by Congress as a compliment to other federal laws increasing security measures to protect against foreign terrorism and to improve border security.

Based on the federal government’s own cost estimates for state compliance with the REAL ID regulations, it appears that states will need $300 million per year to implement REAL ID
regulatory requirements.

The 2009 Department of Homeland Security Appropriations bill, signed by President Bush
authorizes $100 million in REAL ID funding, $50 million to DHS and $50 million to be given to the states. This funding represents only a third of what is needed per year.

Although the REAL ID Act was passed on May 11, 2005, it didn’t become effective as Public Law 109-13 until May 11, 2008, a full three years later. From the original Department of Homeland Security Notice of Public Rulemaking (NPRM) in March, 2007 to the Final Rule, in January, 2008, the regulations defined by DHS were crafted with public and government input in a reasonable manner for implementation.

Following the final REAL ID regulations, as of May 11, 2008 the federal government can no
longer accept state-issued licenses for official purposes from states and territories that were not granted an extension by mid-March. All states were granted an extension.

The next compliance date is December 31st, 2009, giving New York about 13 months to meet the 18 material compliance benchmarks and until May 11th, 2011 to meet 21 additional benchmarks. Many states have begun to take steps to increase the quality of their driver license practices and most already meet ten or more of these benchmarks, based on CSDL research.

Finally, on December 01, 2014 Federal agencies cannot accept driver licenses for certain
specific identification purposes from any individual born after December 1, 1964, unless the
state is in compliance with certain provisions. On December 1, 2017 each state must be in
compliance with the provisions of PL 109-13 to have their driver license and ID cards be
accepted to board an airplane or enter a federal building.

New York has been awarded $2.2 million in the most recent Department of Homeland Security allocation to states for compliance with REAL ID regulations. However, it may choose to opt out of the program at any time as long as the money is still used to increase the security of their driver license, ID cards, or issuance procedures.

Most of the 18 material compliance benchmarks set by DHS are relatively straight forward
measures, such as having the applicant sign a declaration of perjury that the information is
correct. Requirements specifically tied to terrorism prevention include issuing limited term
licenses to applicants with temporary lawful status that expire when their visas expire, and
taking steps to make sure the applicant does not have duplicate or multiple licenses in multiple names. The benchmarks also put security standards in place for DMVs to be accountable for the personal data that is stored in their systems. Benchmarks 13 through 16 stipulate that in order to be compliant with REAL ID regulations, the New York DMV must have a documented security plan, have protections in place to ensure personal information, require all employees to complete AAMVA (or equivalent) fraudulent document training, and conduct name and finger-print based criminal and employment eligibility checks on all employees in covered positions.

One purpose of the benchmarks is to ensure that not only the DMV is protected from issuing
legitimate licenses to an applicant with fraudulent documents; but that applicant’s personal
information is protected from unauthorized access or dissemination. The Department of
Homeland Security created a Privacy Impact Assessment, released January 11th, 2008 to
address how a DMV can protect an applicant’s personal identity information.

Security, enhanced standards, training, technology and auditing are not without their price. The slow rollout of the REAL ID regulations and limited federal funding have made it more difficult for states to comply. However, some states are moving forward despite limited funding. Alabama received only $500,000 in recent grant awards, but is moving forward. As of July 1st, 2008, Alabama is compliant with 10 of the 18 interim benchmarks and partially complaint with another two. The examiners have estimated that it will cost Alabama $16.3 million dollars to be fully compliant with the REAL ID regulations. Regardless of their final decision to comply with REAL ID regulations, the practices that they are putting into place will make it increasingly difficult for criminals and terrorists from acquiring legitimate identification and make it easier for law enforcement to identify them.

It is important that states take steps to make their licenses more secure. Every day, individuals attempt to defraud the New York DMV and DMVs across the country. The New York DMV investigates and prosecutes more than 600 people a year for identity document fraud. 

Yet fraud through the DMV is not just a New York problem. In Washington, DC, Gloria Gonzalez-Paz was sentenced in August for working with Patricia Gonzalez and Salvador Diaz to sell hundreds of fraudulent licenses. It’s worth noting that Mrs. Gonzalez-Paz was a supervisor, and used her supervisory level access to the DMV records to falsify records at multiple levels. Diaz charged between $1,000 and $1,700 each for a license and Gonzalez-Paz, in turn, charged Diaz $500 to $700 dollars each. It’s accurate to say it was a multi-level marketing scheme. Without stronger system security practices, background checks of DMV personnel and spot check auditing of DMV records, this type of conspiracy will continue to flourish.

Insider driver’s license fraud in such large numbers is a threat to public safety. The DC
government has cancelled the licenses issued, and the police have recovered some of the
licenses issued through fraud. However, many of the licenses have not been recovered and the people who received them cannot be found. Let’s hope none of the licenses that got away were issued to dangerous criminals.

In October, 2007, at the direction of former New York Governor Elliot Spitzer, the “temporary
visitor” markings were removed from newly issued licenses. In little over a month, before public outcry compelled Governor Spitzer to reverse his plan, more than 23,000 licenses and ID were issued to foreign visitors bearing no indication that they were issued as limited term licenses. Let’s hope none of these licenses were issued to dangerous criminals.

Once someone holds a New York Driver’s License that is not marked “temporary,” no further proof is required as evidence of lawful presence for a renewal. That means that those 23,000 license and ID card holders are free to renew their licenses for a full term license at their leisure!

New York is well acquainted with the tragedy of terrorists defrauding state driver license
systems. When the September 11th terrorists came to the United States with foreign passports and limited term visas they quickly realized that exchanging them for a state issued driver license was key to remaining undetected by law enforcement.

How many of those 23,000 foreign visitors are sympathetic to radical extremists, how many are potential terrorists?

America has an increasingly tenuous relationship with many countries, including Iran. Iranian President Mahmoud Ahmadinejad has repeatedly denied the holocaust and railed against the United States and Israel. During a United Nations speech on September 25th, 2008 he said “The American empire in the world is reaching the end of its road.” He condemned Israel, saying the country should be wiped from the map. 

How long will it be before rhetoric becomes action and America is forced into conflict with Iran? Will the New York DMV be able to identify a potential terrorist who acquires a New York driver license and is there a mechanism to track him if he decides to overstay his visa term?

New York already has a process for verifying identity, state residence and lawful presence. On September 16th, 2008 New York began to issue Enhanced Driver Licenses (EDLs). Besides granting the privilege to drive, the enhanced license allows travel to U.S. neighbors without the need for a passport. For New York, EDLs are expected to facilitate $400 billion dollars in U.S. – Canada trade. To obtain an EDL an applicant must present verifiable documents showing proof of identity, United States citizenship and residency in New York.

The Enhanced Driver License represents a major milestone is creating an identity document that validates lawful presence and identity. That same careful verification process of identity can be applied across all New York licenses, not just EDLs. New York should be for secure licenses and IDs regardless of whether they are used for crossing the Canadian border, or crossing the Hudson River.

New York must act with all states to create secure licenses and stronger verification standards for identity. Driver’s license practices in New York affect the neighboring states of Pennsylvania, New Jersey and Connecticut. Each state must stand together to protect the integrity of the identities printed on drivers’ licenses. Fail to do that and the lives of the state highway patrolmen and the cops on the beat are at risk from foreign and domestic terrorists, from unfriendly foreign governments and, from everyday violent criminals. Compliance with federal driver’s license standards will make it much harder for criminals and terrorists to acquire fraudulent identification and easier for law enforcement to detect these fraudulent licenses and protect American borders, buildings and lives.