BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 249


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          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,       |                    |








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          |                |     |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  








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            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.









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          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  








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            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]









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          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  








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          - 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