Real ID implementation could cost state $5 million

It could cost the state more than $5 million to implement Real ID by this October, House lawmakers learned Friday.

Legislators have grappled with how to meet toughened federal security standards for state-issued driver’s licenses and ID cards ahead of a January 2018 deadline that would see Minnesotans unable to board domestic commercial flights using non-enhanced IDs. 

A law enacted late last month repealed a 2009 prohibition on planning for compliance with the federal law, and Department of Public Safety officials on Friday presented a report mandated by that legislation that laid out estimated costs and necessary steps to bring the state into line with the Real ID standards.

It would cost between $4.3 million and $5.1 million to get the state up to the federal standards by as early as this fall or next summer, the 21-page report estimated. Lawmakers had set a goal of issuing Real ID-compliant licenses by this October so Minnesotans could begin getting Real ID licenses on their normal renewal timeline.

WATCH Discussion of the Real ID report on YouTube

Much of that estimated cost is related to technology — the state would need to undertake substantial changes to a computer system that’s in the process of being phased out in order to rush toward compliance this year, said Dawn Olson, director of the department’s Driver and Vehicle Services Division.

MORE What is Real ID?

Pushing implementation back to January 2018, however, would save the state a substantial amount of money, with costs estimated at just $16,000 to $30,000 annually. Technology changes would be undertaken as part of the existing upgrade project, officials said, saving around $2 million.

Minnesota — one of the few states still not in compliance with the federal 2005 Real ID law — has applied for another extension from the federal government to allow residents with standard state IDs to access military bases and secure federal facilities; that’s something Minnesotans without enhanced driver’s licenses currently cannot do.

The more secure cards require applicants to submit more proof of identity and attest under penalty of law that the information they submit is correct.

MORE View the report

Gov. Mark Dayton has pushed lawmakers to move the state toward meeting the federal rules, but told reporters Thursday he didn’t know if legislation implementing needed Real ID changes would pass during the remaining six weeks of the 2016 session.

“If you choose to do nothing this session there’s really no impact (on DVS),” Olson told lawmakers. Rather, she said, inaction this year would potentially affect the state’s pending extension request with the federal Department of Homeland Security.

Since lawmakers barred state agencies from planning to comply with Real ID in 2009, opponents of the federal law and privacy advocates have expressed concern that federal officials would expand the scope of Real ID, or maintain a national ID database. Lawmakers have said legislation directing Real ID implementation will include measures to address privacy concerns.

What’s next?

A second bill later this session would be needed to put the changes in place to implement Real ID. Public Safety Commissioner Mona Dohman said the state’s ID card vendor needs to know of any changes by May 15 to be ready to issue Real ID-compliant licenses by Oct. 1, when the new renewal cycle begins.

“If the Legislature takes no action this session the time crunch will be the 2017 session,” Dohman said, compressing the timeline for public safety officials to work toward compliance measures.

The DPS report laid out what is needed to move forward with meeting federal ID standards:

• a law authorizing implementation;
• an implementation date;
• whether to give applicants the option of applying for an ID not compliant with Real ID;
• statutory changes to comply with Real ID;
• expedited rulemaking authority for DPS to make necessary changes; and
• funding