BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                UNFINISHED BUSINESS 


          Bill No:  SB 249
          Author:   Hueso (D)
          Amended:  9/9/15  
          Vote:     21  

           SENATE TRANS. & HOUSING COMMITTEE:  11-0, 4/7/15
           AYES:  Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,  
            McGuire, Mendoza, Roth, Wieckowski

           SENATE JUDICIARY COMMITTEE:  5-2, 4/21/15
           AYES:  Jackson, Hertzberg, Leno, Monning, Wieckowski
           NOES:  Moorlach, Anderson

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SENATE FLOOR:  36-3, 6/1/15
           AYES:  Allen, Bates, Beall, Berryhill, Block, Cannella, De  
            León, Fuller, Gaines, Galgiani, Glazer, Hall, Hancock,  
            Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno,  
            Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Nguyen, Pan,  
            Pavley, Roth, Runner, Stone, Vidak, Wieckowski, Wolk
           NOES:  Anderson, Moorlach, Morrell
           NO VOTE RECORDED:  Nielsen
            
            ASSEMBLY FLOOR:  Not available

           SUBJECT:   Vehicles:  enhanced drivers license


          SOURCE:    Author

          DIGEST:   This bill authorizes the Department of Motor Vehicles  
          (DMV) to issue enhanced drivers licenses (EDLs), which  
          individuals can use at border crossings as proof of both  








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          identity and citizenship.

          Assembly Amendments remove instruction permits from this bill;  
          require DMV to consult with stakeholders prior to entering a  
          memorandum of understanding with the federal government; clarify  
          what shall be included in the Radio Frequency Identification  
          (RFID) technology in the EDL; remove the provision allowing an  
          applicant to appeal a denial of an application; remove the  
          provision establishing a new account within the Motor Vehicle  
          Account (MVA) and instead provide for the funds to be deposited  
          in the MVA; and require DMV to provide a protective shield for  
          the license or identification card at the time of issuance.

          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.

          This bill:

          1)Authorizes DMV to enter into a memorandum of understanding  
            with a federal agency to obtain approval to issue an EDL,  
            provisional license, or identification card (hereafter  
            referred to generally as an EDL) that meets Western Hemisphere  
            Travel Initiative (WHTI) requirements.  Requires DMV to  
            consult with stakeholders prior to entering such a memorandum.  
             

          2)Authorizes the DMV to issue an EDL to an applicant who is 16  
            years or older and is both a California resident and a U.S.  
            citizen.

          3)Requires an applicant to submit proof of identity, California  
            residency, and U.S. citizenship, and to certify under penalty  
            of perjury that the information is valid.  

          4)Requires DMV to provide a protective shield for the EDL at the  
            time of issuance and to inform the applicant in writing that  








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            the information stored on the EDL can be read remotely without  
            the holder's knowledge if it is not enclosed in the protective  
            shield.  Requires the applicant to sign a declaration  
            acknowledging his or her understanding of RFID technology.

          5)Requires DMV to include in the EDL reasonable security  
            measures to protect against unauthorized duplication or  
            disclosure of the holder's personal information.  Provides  
            that the RFID technology in the EDL shall contain a randomly  
            assigned number or employ other security measures deemed  
            necessary by DMV to make any information on the card  
            unintelligible to an unauthorized reader.  Limits the RFID  
            technology in the EDL to the information needed to comply with  
            U.S. Department of Homeland Security (DHS) requirements and a  
            machine-readable zone or bar code that contains only as much  
            information as required by the WHTI to permit a border  
            crossing.  

          6)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.  

          7)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.  

          8)Establishes a non-refundable fee of $55 for application or  
            renewal, in addition to other fees required by state law, to  
            be deposited in the MVA.

          9)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 have been security or privacy breaches related to the  
            use of EDLs or related documents.

          Background








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          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 DHS established a  
          plan called the Western Hemisphere Travel Initiative.  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.  

          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 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  








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          Washington), as well as several Canadian provinces, are  
          currently issuing EDLs.

          Comments

          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 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.

          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.  This bill also requires DMV to provide a  
          protective shield for the EDL at the time of issuance.

          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  








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          U.S. citizen in order to obtain an EDL, individuals holding an  
          AB 60 driver's license would not be eligible.

          Prior Legislation
          
          SB 397 (Hueso), which passed the Senate Transportation and  
          Housing Committee 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 the Senate Transportation  
          and Housing Committee in that it incorporates several provisions  
          added in subsequent committees to address privacy concerns  
          raised by civil rights organizations.  

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes

          According to the Assembly Appropriations Committee (July 16,  
          2015 version):


           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 a  
            memorandum of understanding with DHS; 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. (MVA)


           Ongoing costs of about $1.2 million to operate the program.   
            (MVA)





           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 fully funded by 2021-22.  No  








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            revenue would accrue until after DMV incurs most of the  
            start-up costs, however; thus DMV would need to cover these  
            costs through borrowing from internal funds or from  
            programmatic efficiencies or reductions.




          SUPPORT:   (Verified9/10/15)


          Baja California State Government
          Calexico Chamber of Commerce
          California Chamber of Commerce
          Casa Familiar
          Chula Vista Mayor Mary Casillas Salas
          City of San Diego
          El Centro Chamber of Commerce & Visitors Bureau
          Imperial County Transportation Commission
          Otay Mesa Chamber of Commerce
          San Diego Association of Governments
          San Diego City Councilmember Todd Gloria
          San Diego Regional Chamber of Commerce
          San Diego-Tijuana Smart Border Coalition
          U.S. Representative Juan Vargas


          OPPOSITION:   (Verified9/10/15)


          American Civil Liberties Union of California
          Calegislation
          Center for Democracy & Technology
          Consumer Action
          Consumer Federation of California
          Consumer Watchdog
          Council for Citizens Against Government Waste
          Eagle Forum of California
          Electronic Frontier Foundation
          Ella Baker Center for Human Rights
          Gun Owners of California
          Legal Services for Prisoners with Children








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          Liberty Guard
          Privacy Rights Clearinghouse
          Tenth Amendment Center





          Prepared by:Erin Riches / T. & H. / (916) 651-4121
          9/11/15 19:33:59


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