BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 249| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- VETO 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 SENATE FLOOR: 38-1, 9/11/15 AYES: Allen, Anderson, 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, Nielsen, Pan, Pavley, Roth, Runner, Stone, Vidak, Wieckowski, Wolk NOES: Morrell NO VOTE RECORDED: Moorlach SB 249 Page 2 ASSEMBLY FLOOR: 73-2, 9/11/15 - See last page for vote 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 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. 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 the information stored on the EDL can be read remotely without SB 249 Page 3 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 Radio Frequency Identification (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 Motor Vehicle Account (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 SB 249 Page 4 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 SB 249 Page 5 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 SB 249 Page 6 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 SB 249 Page 7 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: (Verified10/20/15) 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: (Verified10/20/15) 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 SB 249 Page 8 Liberty Guard Privacy Rights Clearinghouse Tenth Amendment Center GOVERNOR'S VETO MESSAGE: I am returning Senate Bill 249 without my signature. This bill authorizes the Department of Motor Vehicles to enter into a memorandum of understanding with the U.S. Department of Homeland Security, allowing the department to issue "enhanced" driver's licenses, provisional licenses and identification cards. While I support the purpose of this bill to allow easier passage across certain borders within the Western Hemisphere, I believe that there are other means, such as the U.S. Passport Card, that achieve the same goal without imposing new burdens on the Department of Motor Vehicles. ASSEMBLY FLOOR: 73-2, 9/11/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Weber, Wilk, Wood, Atkins NOES: Gatto, Levine SB 249 Page 9 NO VOTE RECORDED: Brough, Dahle, Harper, Waldron, Williams Prepared by:Erin Riches / T. & H. / (916) 651-4121 11/4/15 13:34:10 **** END ****