BILL ANALYSIS Ó SB 249 Page 1 SENATE THIRD READING SB 249 (Hueso) As Amended September 9, 2015 Majority vote SENATE VOTE: 36-3 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Transportation |15-0 |Frazier, Achadjian, | | | | |Baker, Bloom, Chu, | | | | |Daly, Dodd, Eduardo | | | | |Garcia, Gomez, Kim, | | | | |Linder, Medina, | | | | |Melendez, Nazarian, | | | | |O'Donnell | | | | | | | |----------------+-----+----------------------+--------------------| |Judiciary |10-0 |Mark Stone, Weber, | | | | |Wagner, Alejo, Chau, | | | | |Chiu, Gallagher, | | | | |Cristina Garcia, | | | | |Maienschein, Thurmond | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |17-0 |Gomez, Bigelow, | | SB 249 Page 2 | | |Bloom, Bonta, | | | | |Calderon, Chang, | | | | |Nazarian, Eggman, | | | | |Gallagher, Eduardo | | | | |Garcia, Holden, | | | | |Jones, Quirk, Rendon, | | | | |Wagner, Weber, Wood | | | | | | | |----------------+-----+----------------------+--------------------| |Judiciary |10-0 |Mark Stone, Wagner, | | | | |Alejo, Chau, Chiu, | | | | |Gallagher, Cristina | | | | |Garcia, Holden, | | | | |Maienschein, | | | | |O'Donnell | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Allows the Department of Motor Vehicles (DMV) to issue enhanced driver's licenses (EDLs) that are acceptable at border crossings as proof of identity and citizenship. Specifically, this bill: 1)Makes findings and declarations regarding traffic congestion at California/Mexico border crossings, the federal government's endorsement of EDLs that allow for far faster processing of border crossers, and limiting an employer's ability to require an employee to obtain an EDL. 2)Allows DMV to enter into a memorandum of understanding (MOU) with a federal agency for the purposes of obtaining approval for the issuance of an EDL, provisional license, or identification card (all of these instruments, other than EDLs, are hereafter referred to as "related documents") that is acceptable as proof of identity and citizenship pursuant to the Western Hemisphere Travel Initiative (WHTI). Requires DMV, prior to entering into the MOU, to consult with the SB 249 Page 3 appropriate interested parties relative to the issuance of EDL's, as specified. 3)Allows DMV upon the request of an applicant, to issue an initial EDL or related document, or renew any of these documents, for a person who is 16 years of age or older and is a resident of California and a citizen of the United States. 4)Requires the applicant to: submit sufficient proof that meets the requirements of the WHTI to establish his or her identity, residency, and citizenship and certify under the penalty of perjury that the information he or she has submitted is true and correct to the best of his or her knowledge. 5)Requires DMV to inform an EDL applicant in writing that the information stored on the EDL or related document can be read remotely without the holder's knowledge. Further requires that the applicant sign a declaration acknowledging his or her understanding of radio frequency identification (RFID) technology. 6)Requires DMV to include in the EDL or related document reasonable security measures to protect against unauthorized disclosure of personal information regarding the person who is the subject of the document. 7)Requires that RFID technology contain only a randomly assigned number or employ other security measures deemed necessary by the department that make any information on the EDL unintelligible to an unauthorized reader. In any event the radio frequency technology shall contain no more information than is required by the United States Department of Homeland Security requirements to permit a border crossing. SB 249 Page 4 8)Allows an EDL to be suspended, revoked, or restricted as are other driver's licenses under existing law. 9)Requires an applicant applying for an initial EDL, or related document, to have his or her photograph and signature captured or reproduced by DMV at the time of application. 10) Requires DMV to deny an application or renewal of an EDL, or related document, if it does not satisfied certain requirements as specified. 11)Requires DMV to retain copies or digital images of documents provided by applicants for EDLs and related documents. 12)Requires DMV, after denying an application for an EDL or related document, to retain the photograph of the applicant and the reason for denial for not less than one year, unless fraud is suspected, in which case the applicant's photograph and the reason for denial must be retained for not less than 10 years. 13)Requires DMV to set the application fee in an amount not to exceed its regulatory cost of issuing or renewing an EDL or $55, whichever is less. Further requires revenues to be deposited into the Motor Vehicle Account (MVA), as specified, and be used to implement the EDL program. 14)Requires DMV to submit an annual report to the following committees: Assembly Transportation, Assembly Judiciary, Senate Transportation and Housing, and Senate Judiciary. The annual report will include data on (but not be limited to) the number of EDL's and information cards issued, the effect on SB 249 Page 5 wait times, traffic congestion at points of entry, and any identified security or privacy breaches related to the use of EDL's and identification cards. FISCAL EFFECT: According to the Assembly Appropriations Committee: 1)One-time upfront costs of around $4.4 million over several fiscal years, if the DMV exercises the authority to develop the EDL program. Start-up costs would include completing an MOU with the Department of Homeland Security; establishing secure, verifiable database connectivity; adopting regulations to require documentation to prove citizenship, identity and residency and the criteria for EDL denial. This would involve significant information technology programming and purchase of RFID readers and other equipment. [Motor Vehicle Account (MVA)] 2)Ongoing costs of about $1.2 million to operate the program. [MVA] 3)Offsetting revenue for the above costs from EDL application fees. If DMV sets the fee at the maximum $55, implementation and ongoing costs would be funding by 2021-22. No revenue would accrue until after DMV incurs most of the start-up costs, however, thus the department would need to cover these costs through borrowing from internal funds or from programmatic efficiencies or reductions. 4)Unknown, likely absorbable costs to the Division of Labor Standards Enforcement to investigate discrimination and retaliation complaints against employers. [Labor Enforcement Compliance Fund] SB 249 Page 6 COMMENTS: Current state law does not allow DMV to implement a process to issue EDL's to applicants within the state. Travelers that currently cross the United States (U.S.)-Mexico border must use other documentation to present proof of identify such as a passport which has minimal impact on expediting a traveler's processing time across the border. The author's office states that the intent of this bill is to reduce travel and processing times and strengthen security at border crossings as a means of stimulating cross-border business activities. According to the Department of U.S. Customs and Border Protection (CBP), an EDL is "the standard document issued by a state or (Canadian) province that has been enhanced in process, technology and security to denote identity and citizenship for purposes of entering into the United States at the land and sea port of entry." CBP goes on to explain, "When the EDL is presented by a United States or Canadian citizen traveler, no other documentation is required for purposes of proving identity and citizenship." An EDL may be used in "ready lanes," which are vehicle lanes operated by CBP at border crossings exclusively for travelers who possess RFID-enabled travel documents (which may also include U.S. passport cards and so-called "trusted travel documents"). These documents allow information contained in a wireless device or "tag" to be read from a distance at ready lanes, similar to those contained in car keys and employee identifications. This technology eliminates the need to key-in traveler information and translates into faster processing than manual queries. The author introduced this bill because DMV currently lacks the authority to issue EDLs. The author notes this bill will provide DMV with the authority to issue EDLs and eliminate the need to manually key-in traveler's information at ports of entry SB 249 Page 7 - resulting in faster processing times and a decrease in wait times for cross-border traffic. Thus, with the ability to expedite crossing the U.S.-Mexico border using "ready lanes" and RFID technology, travelers may see the option of using an EDL as a viable alternative to meet their traveling needs. Analysis Prepared by: Manny Leon / TRANS. / (916) 319-2093 FN: 0002289