Interim Joint Committee on Transportation


Minutes of the<MeetNo1> 5th Meeting

of the 2015 Interim


<MeetMDY1> November 5, 2015


Call to Order and Roll Call

The<MeetNo2> 5th meeting of the Interim Joint Committee on Transportation was held on<Day> Thursday,<MeetMDY2> November 5, 2015, at<MeetTime> 10:00 AM, in<Room> Room 171 of the Capitol Annex. Representative Hubert Collins, Chair, called the meeting to order, and the secretary called the roll. The minutes from the Committeeís October 6, 2015 were approved.


Present were:


Members:<Members> Senator Ernie Harris, Co-Chair; Representative Hubert Collins, Co-Chair; Senators, Jared Carpenter, C.B. Embry Jr., Gerald A. Neal, Dorsey Ridley, Albert Robinson, Brandon Smith, Johnny Ray Turner, Whitney Westerfield, and Mike Wilson; Representatives Denver Butler, Leslie Combs, Tim Couch, David Floyd, Tom McKee, Russ A. Meyer, Charles Miller, Jerry T. Miller, Terry Mills, Tanya Pullin, Marie Rader, Steve Riggs, Sal Santoro, John Short, Arnold Simpson, Diane St. Onge, Fitz Steele, Jim Stewart III, Tommy Turner, David Watkins, and Addia Wuchner.


Guests: Mike Hancock, Secretary, Kentucky Transportation Cabinet (KYTC); Rebecca Goodman, General Counsel, KYTC; Rodney Kuhl, Commissioner, Department of Motor Vehicle Regulation, KYTC; Wendy Reilly, Manager of Government Relations, HID Global; Kathleen Carroll, Vice President of Corporate Affairs, HID Global; Paul Bergman and Mike Young, Scenic Kentucky; Tom Fitzgerald, Kentucky Resources Counsel; and, Loretta Crady, Hardin County Circuit Court Clerk, Chair, Driverís License Committee, Kentucky Association of Circuit Court Clerks.


LRC Staff: John Snyder, Brandon White, Dana Fugazzi, and Christina Williams.


KYTC: REAL ID and possible alternatives

Rodney Kuhl, Commissioner, Department of Motor Vehicle Regulation, KYTC, testified concerning REAL ID and possible alternatives. Commissioner Kuhl stated the REAL ID process began in 2005 as a result of a federal mandate that was passed. Since 2005 the REAL ID act has seen many changes and has now reached the implementation phase. There are four phases of REAL ID and three of those four have already been implemented. Phase one includes the requirement of a REAL ID to enter the Department of Homeland Security Office in Washington, DC. Phase two includes a REAL ID to have limited access to most federal facilities and nuclear power plants. Phase three includes the requirement of a REAL ID to enter most federal facilities including military bases however that does not include health services or social security offices. The fourth and final phase of REAL ID implementation includes the requirement of a REAL ID or alternate identification such as a passport to be able to board commercial aircraft within the United States. The fourth phase will be implemented no sooner than 2016.


Commissioner Kuhl stated that KYTC recently visited with Indiana which is a REAL ID compliant state to observe their print farm and the processes they undergo to produce a REAL ID. The cabinet also visited Virginia to compare their processes with that of Indianaís. Georgia, where Kentuckyís current print vendor is located was also visited to discuss REAL ID compliant situations. The University of Kentucky Transportation Center has also completed a study on Kentucky becoming REAL ID compliant. Kentucky has received an extension from the Department of Homeland Security until October 10, 2016 to become REAL ID compliant. Commissioner Kuhl stated within the past year, the Systematic Alien Verification for Entitlements (SAVE) program was implemented resulting in the ability to ensure the citizens that are being processed for a non U.S. citizen ID have legal status.


†In moving forward, Commissioner Kuhl stated the cabinet feels it would be beneficial for Kentucky to move to a central issuance system for driverís licensing and identification cards. The recommendation is for the Circuit Court Clerkís office to continue to take applications and photos for licenses, then issue a temporary driverís license by paper or perhaps a mobile identification process in the future. The actual driverís license would then be produced and mailed to the recipient by a private vendor. The current vendor that Kentucky utilizes has several print farm operations other than Georgia, and the closest are in Illinois, Pennsylvania, and Massachusetts. Commissioner Kuhl stated by going to a central issuance system the security issues of utilizing 141 locations will be eased by transitioning to one location where the card is produced by the vendor. Commissioner Kuhl stated the cabinet recommends switching from a four to eight year renewal cycle for IDs. Both Tennessee and Indiana regret not going to an eight year cycle, and several surrounding states are moving toward an eight year issuance cycle as well.


In moving forward with REAL ID, Commissioner Kuhl suggested further discussion on the possibility of current Kentucky citizens being ďgrandfatheredĒ into the system and having the option to choose a non-REAL ID. However, all new and incoming residents will be required to obtain a REAL ID. Breeder documents that are currently needed to receive a Kentucky driverís license, such as birth certificates, will also be required to obtain a REAL ID, therefore the cabinet would push for the issuance of a REAL ID instead. Commissioner Kuhl stated by undertaking REAL ID and a central issuance system, it provides KYTC with an opportunity to possibly move the entire application process for non U.S. citizens, including the photographs, to the KYTC field offices. Currently, for these individuals, applications are taken at the field office, and photos and cards are done at the County Clerkís office. Streamlining these applications for this population would reduce the load on Circuit Clerks. Another idea that has been brought to the attention of the cabinet from the Federal Bureau of Prisons and the Department of Justice is a possible program to have prisoners photos taken while they are still in a prison facility and then the required documents along with the photograph will be sent off to be processed. When that prisoner is no longer incarcerated, they may be provided with an ID that will be needed to successfully integrate them back into society.


Commissioner Kuhl stated KYTC proposes an increase in renewal fees as well as initial identification acquisition fees. This increase in fees would require a statutory change. Four out of the seven states surrounding Kentucky are REAL ID compliant, five of the seven surrounding states utilize a central issuance system, and four of the seven states are either already doing an eight year issuance or are in the process of moving toward an eight year issuance. Currently the $20.00 fee charged for receiving a driverís licenses is broken down as follows: 1) $0.50 goes to the county in which it is issued, 2) $0.50 to driverís education, 3) $1.00 to the cost of the card itself, 4) $4.40 to the Administrative Office of the Courts, and 5) $13.60 to the Road Fund. The proposed increase from a $20.00 fee to a $50.00 fee for an eight year driverís license would be broken down as follows: 1) $2.00 to the county, 2) $2.00 to driverís education, 3) $8.00 to the cost of the photo taken, 4) $10.00 to the Administrative Office of the Courts, and 5) $28.00 to the Road Fund. Commissioner Kuhl stated the next step in order to make Kentucky REAL ID compliant is legislative assistance via statute change. These statutory changes are needed by the 2016 General Assembly.


Commissioner Kuhl stated if REAL ID legislation is passed in 2016, it will take until approximately early 2017 to implement an RFP and begin the work. Approximately two years from that time, the first REAL IDs will be issued. Commissioner Kuhl said that the Department of Motor Vehicle Regulation has reached a limit on the number of extensions the Federal Government will grant in order to allow Kentucky to become REAL ID compliant and from this point on legislation is needed. Kentucky has a federal extension until October 10, 2016. Commissioner Kuhl stated if legislation is passed Kentucky may be granted another extension due to working towards becoming compliant.


In response to a question asked by Chairman Collins, Commissioner Kuhl stated it would be more costly to have Kentucky as a printing location for REAL IDs than to delegate the printing out to a private vendor.


Chairman Collins questioned the reasoning behind the recommendation of increasing the driverís license renewal cycle from four to eight years and also increasing the fee of the renewal to $50.00. Commissioner Kuhl stated in order cover the central issuance costs, which will include the costs of mailing the new IDs as well as the increase in card costs, and an increase in the funds that must be distributed to the Administrative Office of the Courts to help with their budget, a fee increase is needed. Chairman Collins expressed that there may be difficulty in getting an increase in fees passed.


In clarification, Commissioner Kuhl stated breeder documents that are needed to obtain a driverís license include documents such as a certified birth certificate, social security card, passport, or proof of residence or evidence of lawful status. He added for anyone moving to a REAL ID that is a current citizen of Kentucky, they would have to bring breeder documents, whether they are a new driver or have been a driver for several years. If the person chooses not to obtain a REAL ID, in order to board a commercial aircraft, a passport will serve as proper identification and a REAL ID would not be required.


In response to a question asked by Representative Floyd concerning the involvement of Circuit Court Clerks to help transition Kentucky to REAL ID, Commissioner Kuhl stated there has not been a committee established specifically for the transition into REAL ID simply because it is not clear at this time if Kentucky will become REAL ID compliant.


In response to a situation that Senator Smith was made aware of concerning an instance where someone was charged the full $20.00 fee several times in the four year period for changes made to their driverís license instead of the $12.00 change fee, Commissioner Kuhl stated this issue will be looked into. Senator Smith suggested a legislative change if the full renewal fee is in fact being charged for such changes and there is not a new renewal date being set.


††††††††††† Representative Wuchner stated an increase in fees would place Kentucky at approximately a 35-40 percent higher rate for the fees than the surrounding states. This fee, along with the stateís ad valorem tax on motor vehicles, could create a disincentive to locate in the state, and more discussion on that fee is needed.


††††††††††† In response to a question asked by Senator Wilson, Commissioner Kuhl stated the cost of Kentucky going to a central issuance system will be covered by the proposed fee increase. Also in response to a second question asked by Senator Wilson, Commissioner Kuhl stated driverís testing is done by the Kentucky State Police. Once the driverís testing is completed the citizen then travels to the County Clerkís office and receives their license. There is currently no proposal to change this process.


In response to a question asked by Senator Wilson, Commissioner Kuhl stated additional funding has been requested in KYTCís budget request for the possible REAL ID transition. In response to a question asked by Senator Wilson, Commissioner Kuhl stated Minnesota passed legislation to not become REAL ID compliant. He added New Mexico and Washington have legislation that they are trying to get repealed in an effort to become REAL ID compliant and have been technically denied an extension, but they will be given extra time to become compliant.


††††††††††† In response to a question asked by Representative Mills concerning the analyzation of cost savings on the four to eight year license renewal recommendation, Commissioner Kuhl stated some preliminary figures have been analyzed but it is important to remember that out of the licensing fee money is put into the road fund and allocated to the Administrative Office of the Courts and those fees must continue to be allocated accordingly.


A presentation on the feasibility of display of driverís license info on electronic devices

Wendy Reilly, Manager of Government Relations, HID Global and Kathleen Carroll, Vice President of Corporate Affairs, HID Global gave a brief presentation on the feasibility of display of driverís license information on electronic devices. HID Global is the worldís leading manufacturer of secure identity credentials, headquartered in Austin, Texas. HID provides identity solutions, including access control badges, digital credentials, government identity credentials, and the ecosystem to authenticate those credentials. HID also produces the United States Green Card which has not been counterfeited in more than 18 years, a testament to the expertise HID Global provides in its commitment to security. Ms. Reilly stated HID Global has been at the forefront in developing an interoperable mobile platform to allow citizens to carry their identity credentials on a mobile device. There are more than 184 million smartphone users in the United States and many of those citizens conduct their daily activities such as reading email, paying for groceries, sending texts, and taking videos and pictures ďon the go.Ē Ms. Carroll stated citizen identity ďtokensĒ in smartphones are already in use for many applications including ID badges, credit cards, student IDs, and hotel keys. She added using HID Globalís mobile platform, Starwood Hotels is offering its guests the convenience of mobile check-in and sending room keys directly to mobile devices which allows the guest to bypass the front desk and go straight to their room to open the door with their smartphone once they arrive at the hotel.


There is significant momentum in the United States to examine the feasibility of provisioning driverís licenses to smartphones. HID is reaching out to key stakeholders which include state DMVís, law enforcement, citizen and privacy organizations, the Transportation Security Administration (TSA), as well as state and federal legislators to understand the implications of providing such an option to citizens. Seven states throughout the U.S. are currently looking into provisions and implications of mobile driverís licenses.


Ms. Reilly stated there are four key stakeholders that should have significant input into any solution when discussing a mobile driverís license: citizens, law enforcement, federal authorities, and state licensing authorities. Because of the busy nature of citizensí lives, more than thirty states now allow drivers to show proof of insurance on their smartphones. Applications such as Apple Pay and Google Wallet have made it possible to pay for purchases over their phones. Many citizens prefer the convenience of carrying their smartphone with their credentials rather than a wallet, which could easily become an identity theft problem if their purse or wallet is stolen. As a matter of convenience, a secure mobile driverís license option will allow people to only carry their smartphone and leave their purse or wallet at home. Additionally, driverís licenses built on a secure platforms will give citizens more control over their personal information allowing them to choose when and with whom they share their information and how much information they share.


HID Global is working with law enforcement to understand its concerns and objectives when considering a mobile driverís license option. First and foremost is the safety of law enforcement officers as they need to be able to trust and authenticate an identity credential. When appropriate, a secure mobile driverís license platform would allow the authentication of a personís ID from a safe distance by using Bluetooth technology to give law enforcement officers more time to determine if a traffic stop is routine, or may be more complex. A highly secure mobile platform that allows for validation and authentication of a personís driverís license by authorized entities and individuals can help to reduce the prevalence of fake IDs. A mobile credential would only be sent to a mobile device through a secure service by an authorized state licensing authority. HID Globalís mobile driverís license solution is built upon Seos secure technology, which incorporates best in class cryptographic standards defined by the National Institute of Standards and Technology.


Ms. Reilly added that state licensing authorities are often concerned with operation efficiencies that not only affect how they spend their state allocated funds, but also create a more seamless experience for their customers. States also often want to be leaders with deploying innovative technology, as other states tend to follow their lead. Both operation efficiencies and innovative technology are benefits for state agencies when considering the deployment of a mobile driverís license program. To date, there is no state that has a public program underway that offers an optional mobile driverís license to citizens. It is unknown at this time if states would realize a cost savings with the deployment of a mobile driverís license program, the fiscal implications are being studied by a few of the seven states that are currently looking into provisions and implications of mobile driverís licenses. Iowa currently has a pilot program underway and is offered to select Iowa Department of Transportation employees. A physical driverís license would continue to exist alongside a mobile driverís license for the foreseeable future due to many instances where a citizen would need to prove their identity by presenting a physical driverís license, therefore a mobile driverís license would not replace the physical license, and rather it would complement it. Ms. Carroll stated they met with Kentucky State Police to gain feedback on an implementation of a mobile driverís license program.


Ms. Carroll stated many stakeholders have indicated that privacy is a major consideration when considering a mobile driverís license solution. Citizens want to know that their information is safe and state licensing authorities want to know that the solution they choose for a mobile driverís license will protect the privacy of their citizens. Such a solution must take into account the Fair Information Practice Principles which include transparency, individual participation, purpose specification, data minimization, use limitation, data quality and integrity, security, and accountability and auditing. The heart of the driverís license solution concept is that the citizens have the choice to opt for the mobile driverís license, they control who sees their information, they never have to hand over their smartphone, and they have control over what information is seen.


Due to an increasingly digital world, identity drives daily actions and there has been an increase in identity fraud. Identity thiefs are becoming more sophisticated in their methods preying upon vulnerabilities that exist for individuals and business. Strong identity protection is one of the most critical concerns of citizens. A secure mobile driverís license platform should provide citizens with the assurance that only those entities that the citizens authorize may access their device, and subsequently authenticate their identity. Any transmitted data from a mobile device used to obtain a citizenís credential information will only be usable by the intended authenticating party such as the DMV, law enforcement, etc. and is protected in transit aiding standard-based cryptography.


HID Global has identified and partnered with stakeholders that would be affected by the implementation of a future mobile driverís license program. HID Global has identified the following six principles that should be the backbone of any mobile driverís license solution. The first principle is that the program should be voluntarily mobile and that access to a citizenís driverís license solution should only be possible by some intended action on the citizenís part. The second principle is that the mobile driverís license program should be interoperable and should be able to work with the major smartphone brands and able to work across the North American continent. The third principle is that it must be secure and using strong standards-based cryptography so that a citizenís data only can be viewed by the intended authenticating smartphone. Privacy is another principle, as a citizen should never be asked to hand over their smartphone. Remote capability even in remote areas should be a principle as a citizenís driverís license should be able to be securely made available. Always available is the last and finale principle. The mobile ID should always be available even when a citizenís smartphone is inoperable, i.e. dead batter or not function. A citizenís driverís license should be able to be securely accessed.


Ms. Carroll said that, ultimately, the consideration of a mobile driverís license option requires extensive research and collaboration to ensure that they most secure and privacy enhancing solution is offered. She stated HID Global looks forward to serving as a trusted advisor as Kentucky and other states explore a workable mobile driverís license program. Ms. Carroll and Ms. Reilly demonstrated how the mobile driverís license program would work using a demonstration that was set up in room 169.


In response to a question asked by Senator Wilson, Ms. Carroll stated mobile driverís licenses are a new concept and other vendors are developing their own concepts such as the vendor that is working on the Iowa pilot. She stated it is important that whatever solution is revealed will be interoperable standards based, so no matter the vendor, it will work. She added the services could be competitively bided out between the states and different vendors.


In response to a question asked by Representative St. Onge, Ms. Carroll stated there is not yet an idea of how much implementing a mobile ID program will cost but during the development stage the vendors are bearing the cost of the development process. She added the goal is for pilots to begin to be ran to see the feasibility of the application in the real world and then determine cost. She added the cost that the state will have to bear is indeterminable at this time. She added any other certificates that other states utilize for driving will be open to the mobile platform as well.


In response to a question asked by Representative Floyd concerning when a citizen is pulled over for a traffic stop, Ms. Carroll stated the phone will not be handed over to prove credentials, rather, the information will be transmitted through Bluetooth.


Administrative Regulations 603 KAR 5:155, 603 KAR 10:010, 603 KAR 10:002, and 603 KAR 10:021 were reviewed. Paul Bergman and Mike Young, Scenic Kentucky; and Tom Fitzgerald, Kentucky Resources Counsel all spoke in opposition to the regulations citing reasons such as LED light pollution, vegetation, environmental, and possible legal repercussions. Mike Hancock, Secretary, KYTC and Rebecca Goodman, General Counsel, KYTC, spoke in favor of the regulations siting those concerns had been addressed in the regulations. Secretary Hancock further emphasized that these regulations were the cabinetís best attempt to give its employeeís authority to police this industry in an effective manner. The cabinet also expressed no desire to amend or defer the regulations.


The Committee staff informed the members of the Committee of the options before them in considering administrative regulations. The Committee could unilaterally find the regulations deficient, or, with the agreement of the Transportation Cabinet, amend or defer the regulations. The Committee staff stressed that the Committee does not approve administrative regulations.


Representative Riggs stated he has not been adamantly opposed to the removing and pruning of junk vegetation around billboards however, he believes good points have been made concerning the law about care and maintenance of public roads and the billboard regulations go beyond the care and maintenance of public roads. He expressed his discomfort with the public policy changes made by the executive branch, and his concern for dropping the requirement to require ten businesses in the area which should be considered a public policy decision that the legislature should make. He also added the setback of the 1620 feet requirement to 660 feet is not care and maintenance of public roads but more of a public policy issue.


Chairman Collins stated the removal of six existing billboards in order to place one electronic billboard means the reduction of the overall number of billboards and he does not see a problem with doing so. He added several billboards are off of a right-of-way and on someone elseís property, which he assumes they receive money for allowing them to be there. He also stated that the cabinet has the authority to clear the right-of-ways on the highway as they see fit. Chairman Collins stated he would like to see the right-of-ways clean for safety reasons.


Representative Floyd stated he is sympathetic to the objections made against the regulations but he believes KYTC has made a good faith effort to solve the problem. He suggested deferring or finding the regulations deficient so there may be common ground found to please all parties involved.


Chairman Harris stated there are some people that are opposed to any billboards but that is no longer up for discussion. He added that there are people who have invested in legal billboards that have been permitted by the cabinet for decades, and if he were a billboard company or private owner of a billboard, and vegetation grew up in front of it, he would feel as if he is being deprived of the ability for other people to see his property (the billboards.) He added there are some people that want to remove every billboard and that is no longer up for discussion as well so neither of those matters are issues to him. He added it is easier to change regulation with a new administration than it is to change legislation.


In response to a question asked by Senator Embry concerning the six billboards that must be given up in order to obtain one electronic billboard, Ms. Goodman stated if a person or billboard company does not have six billboards to give up but they would like to purchase an electronic billboard, they may purchase deteriorating static billboards and/or they can also ďbankĒ any billboards. Banking billboards entails obtaining a few billboards at a time and having KYTC track those for the person and allow them to be added up. When the person or company is ready to erect the electronic billboards or when they reach six billboards, a permit can then be reviewed and issued to remove the six billboards and replace them for one electronic board if all of the criteria has been met.


In response to a question asked by Representative Simpson, Ms. Goodman stated a local community must pass a resolution via their local legislative body stating that they want the electronic billboards. If the community is silent on the issue it will be indicated that they do not wish for the electronic billboards to be placed there. There must be an affirmative expression that the community does want the electronic billboards before the process can begin within that community.


In response to a question asked by Representative Simpson concerning if a community can express a blanket acceptance of the billboards or if there is a necessity to have an approval on each location, Ms. Goodman stated in her opinion, the community could require that the billboard companies come before them if they want to approve them individually. Ms. Goodman added they have to comply with all local zoning rules and there has to be a favorable expression for the electronic billboards.


In response to a question asked by Representative Riggs concerning no requirements for setback limitations of the billboards on an off ramp or on ramp of a highway, Ms. Goodman stated engineers assisted the cabinet and they were advised on this issue, and the setbacks were eliminated in this particular case. She added there are numerous spacing requirements on the billboards, weather its electronic billboard to electronic billboard, electronic billboard to static billboard, or static billboard to static billboard. She also added it is difficult to specify where a ramp begins and ends and based on the advice given by the engineers, this approach is a safe way to proceed.


Chairman Harris stated the Interim Joint Committee on Transportation directed KYTC to solve the issue. He added that the first regulations that were promulgated were not up to par and the current regulations are much improved and is much more of a compromise which also gives the cabinet the tools needed to prevent the profilation of more billboards that are erected without permits.


The regulations were neither deferred, nor amended, nor were they found deficient. Chairman Harris adjourned the meeting at 11:47 A.M.