WASHINGTON, Aug. 31 (UPI) -- The overhaul of driver licensing mandated by last year's Real ID Act will generate a $2.5 billion bonanza for technology companies, says a new report.
Government contractor consultants INPUT say that is the amount 50 state governments will have to spend by 2012 to comply with the act's mandates for standardized secure licenses and other ID cards, and interoperable driver databases.
"Varying levels of commitment, progress, and spending have been seen across the states," INPUT analyst James Krouse said. "But clearly ... there has been more talk than action" so far.
The compliance deadline for states is May 11, 2008, after which licenses that do not meet the standards in the law will no longer be accepted as ID by the federal government -- so they could not be used to board planes or enter courthouses.
But the report said that deadline is likely to slip, because of concerns about the cost of upgrading. "Critical regulations from (the Department of Homeland Security) have been delayed and conflicting cost estimates between the Congressional Budget Office and the states are further complicating the issue," the report concludes.
Implementation cost estimates from the National Governors Association and the National Conference of State Legislatures are to be published in the next few weeks.
"The numbers are expected to be staggering ... Barring another historic event such as Sept. 11, it is unlikely the federal government will be able to muster the funding or the public support to force swift implementation of Real ID," said Krouse.
But he said, even if implementation was delayed, "Vendors will begin to see traction," once the Department of Homeland Security guidance on the standards was published. "It'll be a slow burn," he said.
