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MINUTES

EXPANSION OF THE DRIVER'S LICENSE ONE-STOP SHOPS STUDY COMMITTEE

January 16, 1996 -- First and only Meeting

MEMBERS PRESENT

MEETING IN BRIEF

  1. Procedural Business.
  2. Presentation by the Department of Transportation.
  3. Presentation by the County Treasurers.
  4. Federal Motor Carrier Safety Presentation.
  5. Committee Recommendations.
  6. Written Materials Filed with the Legislative Service Bureau.

COMMITTEE BUSINESS

1. Procedural Business.
The meeting of the Interim Study Committee on the Expansion Of The Driver's License One-Stop Shops was called to order by Acting Co-Chairperson, Representative Vande Hoef, at 5:05 p.m., Tuesday, January 16, 1996, in Room 118, State Capitol, Des Moines, Iowa.
a. Election of Permanent Chairpersons. Representative O'Brien made a motion that Representative Vande Hoef and Senator Kibbie be elected as permanent chairpersons of the Interim Committee. The motion was seconded by Representative Main. The motion was adopted.
b. Adoption of Rules. Representative Arnold made a motion that the Committee adopt the proposed rules presented to the committee, and Representative Mascher seconded the motion. The motion was adopted.
c. Opening Comments. Senator Kibbie addressed the committee, noting that he would chair the second half of the meeting, and that Representative Vande Hoef would chair the first half of the meeting.
d. Adjournment. The meeting was adjourned at 8:10 p.m.
2. Presentation of the Department of Transportation.
a. Introduction. Mr. Mike Coverdale, Legislative Liaison, expressed his enthusiasm for the opportunity for the Department of Transportation ("DOT") to make a presentation before the committee, and introduced the DOT employees making a formal presentation, and gave an overview of the topics that each would cover.
b. Background. Mr. Terry Dillinger, Director of the Office of Driver Services, began his presentation with a review of the evolution of driver's licenses in Iowa during the past twenty years. He identified security as the primary public concern with driver's licenses, referring to the need for a reliable method of identification for many purposes. Mr. Dillinger reviewed the current nationwide system of electronic investigation of the authenticity of driver's licenses presented from other states, which is the same system used by law enforcement personnel on patrol. Mr. Dillinger also reviewed other programs, including CIVS, involving carrier fitness and safety, and the Examiner Certification board.
Senator McLaren questioned Mr. Dillinger regarding certain policies on investigation of driver's license information.
c. Training Oversight. Mr. David Stutz, Senior Driver's License Examiner, reviewed the implementation of the Driver's License One Stop Shop Pilot Program ("the Pilot Program"). He explained the training process for the county treasurer's employees participating in the pilot program, and described the proficiency testing to be done as a check on the efficacy of the training.
Senator Fraise asked Mr. Stutz about the comparative training done for, and monitoring of, DOT employees who issue driver's licenses. There was a brief discussion of the higher costs incurred when a larger group of individuals were trained at once, as compared to the training of a single new employee. Senator Kibbie made several comments regarding DOT's perceived attitude towards the pilot program. DOT responded that they were committed to serving rural Iowa.
Mr. Dillinger added comments regarding oversight issues, noting that there were problems in implementing the digitized system, and in filling certain supervisory positions, which were obstacles incurred during the pilot program.
d. Operational Review. Ms. Tina Hargis, Senior Driver's License Examiner and Manager of the Park Fair Driver's License Facility, presented an overview of the observation of the pilot program by DOT during visits to the counties this fall. The formal Observations Report is currently being prepared. DOT will do follow-up on the conclusions of the report on a one-on-one basis with the county employees.
The primary concerns expressed by DOT related to issues of uniformity and quality of services, as provided by the county treasurers offices. She noted particular concerns regarding these issues in the areas of testing, vision screening, issuing of suspensions and notices, document control, and safety issues.
Representative O'Brien questioned whether the oversight and training of DOT and county employees was the same. DOT responded affirmatively, and explained some of the review procedure. Senator Fraise requested a report on the errors made by DOT employees, and asked what kind of reprimands were given for non-compliance by county employees. He was referred to the written agreement between DOT and the counties, which addresses that issue.
e. Costs. Ms. Kim Snook, Senior Driver's License Examiner, compared the costs incurred on a per license basis by both DOT and the counties in the pilot program. DOT concluded that its cost was $3.32 per license, while the county cost was $5.55 per license. Representative Vande Hoef, Senator Kibbie, and Senator Fraise questioned Ms. Snook regarding the figures and calculations presented by DOT.
f. Summary. Mr. Coverdale summarized the DOT presentation, noting that while the county system offers some conveniences, that DOT offers a more desirable cost, and that expansion of the pilot program will cost the state more.
Senator Hedge, Senator McLaren, Representative Main, Senator Drake, Senator Judge and Senator Kibbie all questioned Mr. Coverdale regarding DOT's position. There was a request for a direct comparison of DOT costs in the 6 counties participating in the pilot program, to the costs incurred by the pilot program, and also a request for a cost estimate for expanding the pilot program to an additional 24 counties.
3. Presentation by the County Treasurers.
a. Six County Panel. Ms. Sharon Winchell, Cass County Treasurer, spoke on behalf of the six counties participating in the pilot program. She was accompanied by the treasurers of the other five participating counties, including Mr. Marc Carr, Adams County Treasurer; Mr. Chris Sheldon, Fremont County Treasurer; Ms. Lesta Kahl, Mills County Treasurer; Ms. Anita Walker, Montgomery County Treasurer; and Ms. Donna Wheeler, Page County Treasurer.
Ms. Winchell emphasized the convenience of the expanded service that county treasurers are able to offer for driver's license services, especially benefiting not only seniors, but also employers whose employees must utilize those services. She also indicated that the service provided by counties in the pilot program was highly accurate and impartial, and met all DOT standards.
Ms. Winchell suggested that there is a savings in county issuance of driver's licenses because there is no need for daily equipment setup, and there is no need for additional state vehicles to travel to the county for driver's license service. She observed that the number of licenses issued by the counties has increased during a time period when state-issued licenses were down, and that, in Cass County, 27% of the licenses issued were to residents of other counties. She presented the County Treasurer's analysis of the cost of issuance of a driver's license, based on the pilot program. She concluded that the county program pays for itself, and will result in a $2 million savings if the program is expanded, as compared to the current DOT system. She noted that the county keeps $5 from each license transaction, and that the rest of the proceeds are placed in the Road Use Tax Fund. She emphasized that a large number of other Iowa counties have expressed an interest in being able to offer the driver's license service.
Questions were asked by Representative O'Brien, Representative Cohoon, Representative Hammitt-Barry, Senator Fraise, and Representative Mascher regarding the cost analysis performed by the county treasurers, the training process, and the number of other counties interested in offering this service.
b. Liability Issues. Mr. James Barry, Cass County Attorney, addressed the issue of county liability under the written agreement between the counties and DOT, noting that the counties must contract to indemnify DOT. Mr. Barry reviewed several issues relating to county liability, including the fact that a county has a form of limited statutory tort immunity that the state does not possess. However, while the counties have assumed a great level of liability under the pilot program, the board of supervisors were still eager to undertake the project.
Representative Vande Hoef questioned Mr. Barry about the types of insurance coverage possessed by counties.
c. Independent Cost Analysis. Mr. Deane Adams, Marshall County Treasurer, presented the findings of the report analyzing the costs of the pilot project prepared by David M. Griffith & Associates, Ltd., an independent firm. That firm concluded that the cost in the counties participating in the pilot project was $4.83 per license, and that the service should be available in other counties.
d. County Support for the Pilot Program. Mr. Maurice Reavis, Page County Supervisor spoke about the benefits of the pilot program. Mr. Wayne Walter, Winneshiek County Treasurer, and Ms. Mary Kay Williams, Appanoose County Treasurer, spoke in favor of expanding the pilot program to their counties. Ms. Dianne Kiefer, President of the Iowa State County Treasurers' Association, and Mr. John Easter, Senior Public Policy Analyst for the Iowa State Association of Counties, announced the support of their respective organizations for expansion of the pilot project.
4. Federal Motor Safety Carrier Presentation.
Mr. Kent Fleming, State Director, Federal Highway Administration, Office of Motor Carriers, United State Department of Transportation, addressed the issue of federal oversight of the Commercial Driver's License ("CDL")issuance under the pilot program. He highlighted two concerns in expanding the program. First, there must oversight of the counties by the Iowa DOT, and second, that if the counties do not fully comply with DOT requirements, continued federal funding of the program could be at risk.
Senator Gettings, Representative Cohoon, Senator Fraise, and Senator Kibbie asked questions about federal funding and CDLs.
5. Committee Recommendations.
Senator Kibbie moved that the committee recommend the expansion of the pilot program to include 24 additional counties. Representative Mascher seconded the motion.
Senator Drake requested that a fiscal note be prepared, focusing at least on the unemployment compensation effect on DOT due to necessary layoffs of employees when the program is expanded, and the net computer costs of program expansion. Senator Kibbie noted that convenience was a greater concern than the cost, but agreed with the request for a fiscal analysis.
A roll call vote was taken, with the following results:
The motion passed, 12-2.
6. Written Material on File with the Legislative Service Bureau.
*Written Material Accompanying Presentation by DOT
*DOT Station Schedule for Counties and Cities
*Report prepared by David M. Griffith & Associates, Ltd.
*Written Material Accompanying Presentation by the County Treasurers
*Written Material Accompanying Presentation on Federal Motor Carrier Safety

OTHER INFORMATION FOR THIS COMMITTEE:

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