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The issuing authority will vary between countries, but it'll normally be the agency responsible for matters pertaining to motor vehicles as a whole. In states of the US, it's known as Department of Motor Vehicles, and that agency may be subordinate to a number of offices - normally, it would fall under the Department of Transportation, but, in some states, it's listed as being subordinate to the Department of Public Safety.

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Q: Who issues drivers licenses?
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