Session: State Capitol, Room 204 Juneau, AK 99801-1182 Phone: (907) 465-3777 Fax: (907) 465-2819 Interim: 10928 Eagle River Road, Suite 141 Eagle River, AK 99577 Phone: (907) 694-8944 Fax: (907) 694-8945

Sponsor Statement for HB 344
Increase Driver's License Fees

An Act increasing fees for driver's licenses, instruction permits, and identification cards; and providing for an effective date.

HB 344 raises the fees for non-commercial drivers licenses, and ID cards by $5.00. Instruction permits will increase by $10 dollars. While these revenues go into the General Fund, DMV requires additional funding to implement the first ever overhaul of the license format. The archaic laminated Polaroid license will be converted to a digital system bringing Alaska up to national standards in terms of security and fraud prevention for its personal identification system.

The one-time start-up cost of digital driver license and ID card would be $500,000. Once the digitized system is in place, licensees could convert as they expire and are renewed, or people may want to convert to the new format earlier. The new fee structure would remain in place following the conversion, as it would conform to fee structures in other states. Of note, this is DMV's first rate increase since 1993. The fee increase means that the Alaskan driver will pay an additional $1 per year as a consequence.

Why digitize?

Alaska is one of the last four states to convert to digital licenses. By moving beyond 1950's era technology, Alaska steps up efforts to insure the integrity of its individual identification system. In the wake of September 11, there is a demand to "harden" all driver license systems rather than create a national ID card. One of the existing national standards already in place is the digital driver license. Other standards include uniform standards for the appearance, photo file format and readable media among state driver licenses.

Alaska's sweeping driver license format change will benefit law enforcement as well as industries that sell restricted products such as alcohol and tobacco.

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