BILL ANALYSIS Ó SENATE COMMITTEE ON TRANSPORTATION AND HOUSING Senator Jim Beall, Chair 2015 - 2016 Regular Bill No: SB 249 Hearing Date: 4/7/2015 ----------------------------------------------------------------- |Author: |Hueso | |----------+------------------------------------------------------| |Version: |2/18/2015 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Erin Riches | |: | | ----------------------------------------------------------------- SUBJECT: Vehicles: enhanced driver's license DIGEST: This bill authorizes the Department of Motor Vehicles (DMV) to issue enhanced driver's licenses (EDLs), which individuals can use at border crossings as proof of both identity and citizenship. ANALYSIS: Existing law authorizes DMV to issue driver's licenses and identification cards. In order to obtain a driver's license or identification card, an individual must provide, among other things, a social security number, verification of birth date and legal presence in the U.S., and a thumb print. DMV encodes the individual's basic personal information in a magnetic strip on the back of the license or identification card. To address the need for increased security measures after the 9/11 terrorist attacks, Congress passed the Intelligence Reform and Terrorist Prevention Act of 2004 (Public Law 108-458). To implement this legislation, with an eye to reducing border congestion, the Department of State and the Department of Homeland Security (DHS) established a plan called the Western Hemisphere Travel Initiative (WHTI). The WHTI requires U.S. and Canadian travelers to present a passport or other document proving identity and citizenship to enter the country beginning in 2007 for air travel into the U.S. and in 2009 for land and sea travel into the U.S. The EDL is one of the documents meeting WHTI requirements. SB 249 (Hueso) Page 2 of ? An EDL is a driver's license that an individual can also use as a travel document to enter the U.S. from Mexico, Canada, the Caribbean, and Bermuda. A key feature distinguishing an EDL from a California driver's license is Radio Frequency Identification (RFID) technology. RFID systems allow information contained in a wireless device or "tag" to be read from a distance. RFID technology can be found in car keys, security access cards, and highway toll lanes (such as FasTrak). Under the WHTI, the U.S. Customs and Border Protection (border patrol) created "ready lanes" at some ports of entry, including Calexico East, Otay Mesa, and San Ysidro on the California-Mexico border. Ready lanes are dedicated to travelers with RFID-enabled travel documents, such as EDLs; frequent travelers who hold EDLs can use these lanes to expedite the inspection process. Specifically, as a traveler approaches inspection lanes at the border, authorized readers read the EDL from 10 to 15 feet away. The WHTI provides that no personal information is stored on the EDL, but rather a number that points to information housed in the secure database. Upon reading this number, the reader signals the database to display biographical information, a photo, and the results of terrorist/criminal checks to the border patrol officer as the vehicle pulls up to the inspection booth. While the officer must still conduct a visual inspection, and potentially interview the driver, he or she does not have to take the time to collect paper documents and key them in. Four states (Michigan, New York, Vermont, and Washington), as well as several Canadian provinces, are currently issuing EDLs. This bill: Authorizes DMV to enter into a memorandum of understanding with a federal agency to obtain approval to issue an EDL, instruction permit, provisional license, or identification card (hereafter referred to generally as an EDL) that meets WHTI requirements. Authorizes the DMV to issue or renew an EDL to an applicant who is 16 years or older and is both a California resident and a U.S. citizen. Requires an applicant to submit proof of identity, California SB 249 (Hueso) Page 3 of ? residency, and U.S. citizenship and to certify under penalty of perjury that the information is valid. Also requires the applicant to sign a declaration acknowledging his or her understanding of RFID technology. Requires DMV to include in the EDL reasonable security measures to protect against unauthorized duplication or disclosure of the holder's personal information. Limits the RFID technology in the EDL to contain only a randomly assigned number, encrypted subject to DHS approval, and a bar code that can only be read by border patrol. Prohibits an employer from requiring an employee to apply for or use an EDL as a condition of employment or to discharge, discriminate against, or retaliate against an employee who refuses to apply for or use an EDL. Requires DMV to inform the applicant that the randomly assigned RFID number can be read remotely without the holder's knowledge, particularly if the EDL is not enclosed in a protective shield or similar cloaking device. Requires an applicant to allow DMV to capture and reproduce his or her photograph and signature at the time of application or renewal and provides that these items shall only be available to border patrol or DHS. Requires DMV to verify the validity of an EDL application or renewal and accompanying proof. Authorizes DMV to require the applicant to submit additional information to establish identity, residency, and citizenship. Authorizes DMV to deny an application if it finds the application or supporting documentation is inadequate or invalid. Establishes a non-refundable fee of $55 for application or renewal, in addition to other fees required by state law, to be deposited in a special account within the Motor Vehicle Account. Specifies that this bill is not intended to conflict with any other state or federal law. Requires DMV to submit an annual report to the Legislature including, but not limited to, information on the number of EDLs and related documents issued, the effect on wait times and traffic congestion at ports of entry, and whether or not there SB 249 (Hueso) Page 4 of ? have been security or privacy breaches related to the use of EDLs or related documents. COMMENTS: 1.Purpose. The author states that each year, 45 million vehicle passengers and 15 million pedestrians cross the border into California through the six ports of entry from Mexico. Long wait times, as high as three to four hours, between Imperial County and the Mexico border accounted for an estimated output loss of $1.4 billion and 11,600 jobs lost nationally in 2007. More recent studies indicate a $620 million loss to due to congestion at the Imperial County ports of entry and a nearly $1.3 billion revenue loss at the San Diego ports of entry. The author states that the EDL could both significantly reduce wait times at the border and strengthen border security. 2.EDLs and RFID technology. An RFID tag with a power source is an "active" tag that can transmit a radio wave transmitting information to any reader in the area. An RFID without a power source is a "passive" tag; a reader can remotely read the information when the tag gets within a certain range of the reader. While an RFID tag is similar to bar code technology, it differs in that it can be read remotely, without having to swipe the bar code, and in that much more information can be stored on an RFID tag chip than on a bar code. The EDL proposed in this bill would include a passive tag. In addition, as required by the WHTI, this bill specifies that the EDL would contain only a number that points to information housed in the border patrol's secure database. 3.What about AB 60? AB 60 (Alejo), Chapter 524, Statutes of 2013, requires the DMV to issue an original driver's license to an individual who is unable to submit satisfactory proof of legal presence in the U.S. These applicants must meet all other qualifications for licensure and must provide satisfactory proof of identity and California residency. AB 60 specifies that a license issued under these provisions is valid only for driving privileges and cannot be used for identification or federal purposes. The DMV began issuing these licenses on January 2, 2015. Because this bill requires that an individual must be a U.S. citizen in order to obtain an EDL, individuals holding an AB 60 driver's license would not be eligible. SB 249 (Hueso) Page 5 of ? 4.Previous legislation. SB 397 (Hueso), which this committee passed on an 11-0 vote in 2013 but was subsequently held on the suspense file by the Assembly Appropriations Committee, was almost identical to this bill. This bill differs from the version of SB 397 voted on by this committee in that it incorporates several provisions added in subsequent committees to address privacy concerns raised by civil rights organizations. Specifically, this bill requires an applicant to allow DMV to capture or reproduce his or her photograph and signature, rather than his or her facial image and signature; clarifies that this bill is not intended to conflict with any other state or federal law; and requires DMV to inform applicants that the random RFID number can be read remotely without their knowledge. This bill also authorizes DMV to charge a $55 fee rather than a $75 fee. 5.Double referral. The Rules Committee has referred this bill to both this committee and the Judiciary Committee. Therefore, if this bill passes this committee, it will be referred to the Judiciary Committee. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes POSITIONS: (Communicated to the committee before noon on Wednesday, April 1, 2015.) SUPPORT: City of San Diego OPPOSITION: None received. -- END -- SB 249 (Hueso) Page 6 of ?