1. State to State Verification Service (S2S) ATSIP – Traffic Records and Highway Information Systems Forum August 8, 2016 Christine Nizer Administrator of the Maryland Motor Vehicle Administration and Chair of the DIVS Board of Directors

2. Agenda  What is S2S?  How Does S2S work?  Highway Safety Benefits  Highway Safety Plan  Pilot Status and Benefits  Funding Opportunities  Q&A 2

3. State to State (S2S) Verification Service What is S2S ?

4. What is S2S? State to State Verification Service  Allows a state to determine if an applicant has a DL or ID card in another state.  Provides functionality States have sought for many years - to achieve the goal of “One Driver- One License” for all drivers.  Allows all States to enforce their own laws, rules, regulations and policies.  Improves Driver License Compact compliance  Reduces the need for manual labor  Reduces potential for error  Increases certainty that driver history will be carried forward 4

5. What is S2S? State to State Verification Service  Developed by the states, for the states as an extension of the existing CDLIS service, which has been place since 1992.  Federal grant funds used to develop and pilot the service through February 2017.  Federal grant funds are available to be used by states to implement S2S. (ex. NHTSA 405(c) formula grants, DHS grants)  DHS has a stake in the pilot but no Federal oversight is anticipated post-pilot for non-CDL program.  States will continue to oversee the non-CDL program and the related S2S service.  FMCSA will continue oversight of the CDL program and the related CDLIS services.  Real ID participation is not required  Participating in S2S does not require a State to participate in REAL ID,  But S2S does help a state comply with Real ID requirements if it chooses to do so. 5

6. State to State (S2S) Verification Service How does it work?

7. A System of Systems Like CDLIS, there are three Primary Components: 1.Pointer Index for All Credentials Each state maintains pointers for credentials issued to their customers. Minimal information needed to identify person, credential and the state of record. 2.Data Exchange Protocols Specifications for exchange of information using AAMVAnet messaging protocols 3.State Driver Licensing Systems Maintain the complete driver record Interoperate with the pointer index and other State DL Systems before issuance. Exchange additional information directly between State DL Systems 7 How does S2S work?

8. A System of Systems  States Maintain the Detailed Information for each Credential Holder  States Add and Maintain a “Pointer” for each credential issued.  States Search the pointer index before issuing a credential.  If a match is found the state:  Confirms the Identity  Receives Driver History  Determines Eligibility  Performs a pointer change to become the state of record (SOR) 8 How does S2S work?

9. Rules of the Road Service Enforced Rules for ALL Participants: 1.Only one Driver License. 2.Only one REAL ID credential. Additional State-specific Rules: 3.Most states allow only one credential per person (Driver License or Identification Card). Some states allow a person to hold a DL in state of residence and an ID Card from another state. These State-specific rules are enforced by each state with notification to the other state(s). 9 How does S2S work?

10. Customer Service Rep Customer We see that you currently hold a DL in Wisconsin. Maryland Motor Vehicle Administration Base license issuance with S2S and customer does not surrender OOS credential State Perspective – Use Case 10 Perform CDLIS and S2S Checks via SPEXS It will be cancelled if we issue you a Maryland DL. Do you want us to proceed? The decision to proceed with issuance or not is made by the customer Perform external checks (SSOLV, VLS/SAVE, PDPS, EVVE, US Passport)

11. State to State Pointer Index Pointer Data FieldS2S NameFull Name DOBDate of Birth Partial SSNLast 5 Digits DL/ID indicatorDL, ID, Permit Real ID indicatorReal ID compliant? CDLIS Record indicatorCDL Record? 11

12. State to State (S2S) Verification Service What are the benefits?

13. Overall Benefits Benefits of Participation  Improved Integrity of US-Issued Credentials  Compliance with State Laws  Detect & Deter Identity Theft & Fraud  Enable Efficient, Effective Compliance with Interstate Compacts  Improve Homeland Security  Improve Highway Safety 13

14. Highway Safety Benefits Benefits of Participation Identity Management: Participating states can limit a person to one driver license. Participating states can determine if an identity is in use in another state, what credentials were issued under that identity and consolidate the credentials such that a person only has one active driver license in their primary state of residence. Integrity: Use of S2S increases the integrity of driver licenses and Identification cards issued by participating states. This trust supports field operations and electronic verification services with less dependence on manual inspection and training of staff. Issuance Decisions: Use of S2S can help states proactively prevent issuance of driving privileges to problem drivers. States can examine driving records from prior states of record and use that information to determine if the applicant qualifies for a driver license or if an identification card is more appropriate. 14

15. Highway Safety Benefits Benefits of Participation Driver Control Records: S2S enables participating states to manage driving records more effectively, resulting in a more accurate and complete view of a person driving record. Completeness: States can electronically accept driving records from prior states of record and consolidate that history into one driver control record maintained by the driver’s primary state of residence. Visibility into the driving history across all prior states of record allows the new state of record to build a more complete and accurate picture of the person’s driving history. Timeliness and Accuracy: When a driver moves from one state to another, S2S provides an automated process for the new state to become the state of record for that driver, to receive the driving history from the prior states of record and to notify the prior states to cancel the driver license(s). This increases the timeliness and accuracy of the information available to participating states. The current manual processes are prone to delays and errors. 15

16. Highway Safety Benefits Benefits of Participation Court Actions: Use of S2S enhances a participating state’s ability to manage driver identities and histories associated with those identities. This reduces potential for multiple “First Time Offenses” for a given driver, resulting in more accurate adjudication by the courts and removal of dangerous drivers from the highway. Note: S2S does not currently allow participating states to electronically notify the state of record when a violation or conviction occurs outside of the state of record. This is still a manual process prone to delays and errors. Enhancing S2S to support the exchange of out of states convictions will increase the timeliness, accuracy and completeness of the one driving control record maintained by the state of residence/record. 16

17. Highway Safety Benefits S2S Highway Safety Plan  NHTSA Grant to Mississippi as Lead State  Working Group Members  States: IA, IN, FL, MD, MS, NY, WA, WI.  DIVS/MS Staff  AAMVA Staff  Federal Stakeholders: NHTSA, FMCSA.  Estimated to be completed in September  Plan will Recommend Tasks and Budget Required to Maximize the Highway Safety Benefits of S2S 17

18. State to State (S2S) Verification Service Pilot Status

19. District of Columbia As of 8/8/2016 Delaware 6Live In Production 9 Go Live Date Confirmed during Pilot

20. S2S Timeline – Key Milestones and Dates Task / DeliverableDate(s) Certification Environment Go-Live03/03/2015 Production Environment Go-Live07/06/2015 Wisconsin Go-Live08/10/2015 North Dakota Go-Live11/16/2015 Maryland Go-Live01/31/2016 Indiana Go-Live02/21/2016 Iowa Target Go-Live05/22/016 Arkansas Target Go-Live06/05/2016 Idaho Target Go-Live08/21/2016 South Dakota Target Go-Live10/02/2016 Nebraska Target Go-Live10/16/2016 Arizona Target Go-Live10/30/2016 Wyoming Target Go-Live11/29/2016 Virginia Target Go-Live12/04/2016 Delaware Target Go-Live12/18/2016 Alaska Target Go-Live01/29/2017 Mississippi Target Go-Live02/12/2017 Pilot Operations End Date03/03/2017 20 S2S Pilot Schedule As of 8/8/2016

21. CDL and Non-CDL Pointer Counts

22. S2S Pilot Benefits  Customer service benefits related to testing  Identification of several cases of potential fraud  Automation of manual processes, and improvement of existing processes and systems  Increased communication and collaboration with other pilot states  Identification of CDLIS records where CSOR did not occur when driver requested only base DL or ID in new state  Identification of tens of thousands of potential duplicates 22 Benefits Realized To Date

23. S2S Pilot Benefits  The majority of potential duplicates are an indication of either:  An error of some type or  Fraud  The more errors there are, the easier it is to get away with fraud 23 Potential Duplicates Why is eliminating potential duplicates so important?

24. S2S Pilot Benefits S2S is helping eliminate potential duplicates reactively and proactively.  Reactively: Six production state bulk loads discovered 67,000 existing potential duplicates.  Cases of fraud have been found  Many involve CDLIS records for drivers with a base DL in another state  Proactively: Daily operations identify potential duplicates and prevent creation of new duplicates.  Drivers with DL/ID card in another state identified before issuance. (20,000+ CDL holders with additional Base DL)  State can make informed decision about issuance and take action to prevent the potential duplicate. (29,000 prevented to date) 24 Potential Duplicates

25. S2S Pilot  Support Pilot State Implementations  Complete Pilot Evaluation and Best Practices Recommendations  Complete Highway Safety Plan Recommendations  Seek additional funding to implement the recommendations of the pilot and the highway safety plan  Prepare to Transition Governance to AAMVA  Establish AAMVA Governance Committee  Implement Fee Model starting March 2017 25 Next Steps for the Pilot Program

26. State to State (S2S) Verification Service Funding Opportunities

27. S2S Funding Both NHTSA and DHS have acknowledged that S2S is an eligible use of these grant monies, which are available annually to all states. For more information concerning the NHTSA and DHS grant programs please visit:  NHTSA 405c Formula Grants http://www.nhtsa.gov/About+NHTSA/Highway+Safety+Grant+ Programs http://www.nhtsa.gov/About+NHTSA/Highway+Safety+Grant+ Programs  and  DHS Grant Program (HSGP) http://www.grants.gov/web/grants/view- opportunity.html?oppId=281548. http://www.grants.gov/web/grants/view- opportunity.html?oppId=281548 States are also exploring the use of grants from FMCSA to support the level of effort required for states to resolve the large number of potential duplicates, especially those involving a CDLIS pointer and a Non-CDLIS pointer. 27 Grant Funding Opportunities

28. State to State (S2S) Verification Service Question & Answer

29. DIVS & S2S Questions? Questions? ncarlson@clerussolutions.com This Document was prepared under a grant from the Federal Emergency Management Agency's (FEMA) Grant Programs Directorate (GPD) United States Department of Homeland Security. Points of view or opinions expressed in this document are those of the authors and do not necessarily represent the official position or policies of FEMA/GPD or the U.S. Department of Homeland Security. This document and associated work product were produced by Clerus Solutions, LLC as Program Manager to the DL/ID Verification Systems, Inc. program under contract to the Mississippi Department of Public Safety. 29