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
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          |Author:   |Hueso                                                 |
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          |Version:  |2/18/2015                                             |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Erin Riches                                           |
          |:         |                                                      |
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          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.  







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          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  








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          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  








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          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.  









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           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 --
          











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