Border Update - Buffalo Niagara Partnership

As a significant portion of Buffalo Niagara's economy and our life in general is tied to us being a bi-national community, I'd like to update you on the ever-evolving issue of required personal identification at CanAm border crossings.

First a bit of background.

The provisions of the Western Hemisphere Travel Initiate (WHTI) have been scheduled to go into effect for air and sea entry into the US in January 2007 and for land crossings in January 2008. The air and sea requirements have been implemented, with huge delays in the time it takes to get a passport as a direct result. Simultaneously, acceptable passport alternatives have been continuously pursued for the land crossings requirement.

The Department of Homeland Security (DHS) and Department of State (DOS) floated the idea of the PASS Card as a substitute for a passport. Applicants for the card would be required to meet the same standards as for a passport, but the card would cost less and be credit card size.

This proposal received fierce objection from the Partnership and, more generally, from businesses dependent on cross-border travel. Opponents urged DHS instead to use a more-accessible, cheaper document, which also would be usable for other purposes. It was thought that an enhanced driver's license could be such a document, and in early July, DHS finally agreed. The result is the following new timetable:

- Starting in January 2008, a government-issued identification and birth certificate will be required to enter the US from Canada via land crossings.

- In the "summer of 2008" (specific date not provided) the new requirement for passport, PASS card, WHTI-compliant driver's license or trusted traveler ID (NEXUS, FAST cards, etc.) will be implemented. Comment on this proposed plan is due by August 27, 2007. The Partnership will be submitting our "comments."

The proposal to accept a WHTI-compliant driver's license is attractive, but, as we have learned from so many issues involving government action, the "devil is in the details."

The State of Washington is initiating a pilot program using a WHTI compliant driver's license, which will begin in January 2008. Other states, New York included, have expressed interest in establishing a similar program, but want to see what happens with the Washington State pilot before implementing a costly new system. Nonetheless, states are being forced to strike a balance between learning from Washington's experience and meeting the "summer of 2008" WHTI implementation deadline.

The WHTI-compliant licenses will be expensive to produce and will require special training for state motor vehicle department personnel, because they will now be required to verify citizenship. Governor Spitzer, Congresswoman Slaughter and Senators Clinton and Schumer met with Michael Chertoff, Secretary of Homeland Security, and presented him with a list of questions the state needs answered before it implements a new driver's license program, the most important being who will pay for implementation. Erie County Clerk Kathy Hochul has estimated that it will cost $1.5 million to implement such a program and $1 million per year to maintain it just in Erie County. Given those figures, the statewide cost would likely be enormous. DHS has not proposed any funding and Congress would likely not be able to provide funding before 2009 - well after implementation is required according to the proposed new rule.

The US House of Representatives, meanwhile, has inserted an amendment delaying implementation of WHTI until June of 2009. The Senate appears ready to do the same. The White House has threatened a veto. The Partnership supports efforts to delay implementation until technology, training and ramp up of state implementation of the driver's licenses have been completed. We do think putting in a specific date for that is probably not productive at this time.

Clarity on the issue, however, is imperative. In the real world of logistics and tourism, there is massive confusion as to what is required and when. Border crossings in our bi-national region are down despite near parity for the Canadian dollar. Visitation to cultural events on both sides of the border also is down substantially. This is all due to confusion in the documentation issue. While the Partnership supports a delay in implementation, another two years of indecision and confusion will be devastating for the many businesses on both sides of our border, small and large, dependent on tourism.

We will keep you posted as this complicated process continues.