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BILL # HB 2957 |
TITLE: driver license; enhanced; mobile; prohibition |
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SPONSOR: Fink |
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PREPARED BY: Trevor Malzewski |
STATUS: House Engrossed |
HB 2957 would prohibit the state or a local entity from requiring the use of a digital or mobile driver license or nonoperating identification license (license) for any government service or purpose. The bill directs the Arizona Department of Transportation (ADOT) to inform applicants that obtaining a Real ID compliant license is optional, prohibits ADOT from retaining documents used to verify identity during the application process, and prohibits ADOT from sharing information from an application for a non-Real ID compliant license with external databases.
Estimated Impact
ADOT estimates that the bill could result in the loss of up to $(84.0) million in federal highway funding. ADOT also estimates the following impacts on their operating budget:
- $(350,000) decrease in ADOT ongoing expenditures due to the elimination of fees associated with interstate database exchanges.
- a one-time cost of $260,000 associated with coming into compliance with various provisions of this bill.
Under the bill, ADOT believes that they would no longer be able to interact with various interstate databases to verify information for a commercial driver license (CDL) application, as required by federal regulation. ADOT suggests that the federal government may withhold up to 8% of federal highway money if the state is not in compliance with these federal regulations, which would translate into a loss of up to $(84.0) million. We are unable to confirm whether the federal government would invoke this penalty.
Our estimate assumes the following:
1) According to the Association of Motor Vehicle Department Administrators, Arizona takes part in the state-to-state verification system that enables the use of the state pointer exchanges services (SPEXS) database. If the bill became law, ADOT would not be able to share any information collected during a non-Real ID license application with SPEXS, or any other interstate, federal, or international database. ADOT estimates that disconnecting from interstate and federal databases will reduce ADOT expenditures by $350,000 annually.
2) Currently, ADOT may retain images or copies of documents that are provided to them when someone applies for a license in the state. This bill could require the department to destroy current copies they have retained or stop collecting them in the future. ADOT estimates that modifying the Motor Vehicle Division's credential system and retraining employees for compliance with the bill will have a one-time cost of $260,000.
3) According to the Arizona League of Cities and Towns, and the Arizona Association of Counties, there is no fiscal impact to local governments from this legislation.
3/24/26