BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 28
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          SENATE THIRD READING
          SB 28 (Simitian)
          As Introduced December 4, 2006
          Majority vote 

           SENATE VOTE  :31-6  
           
           JUDICIARY           6-3         TRANSPORTATION      9-5         
           
           ----------------------------------------------------------------- 
          |Ayes:|Jones, Evans, Berg,       |Ayes:|Nava, Carter, DeSaulnier, |
          |     |Laird, Levine, Lieber     |     |Horton, Karnette,         |
          |     |                          |     |Portantino, Ruskin,       |
          |     |                          |     |Solorio, Soto             |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Berryhill, Duvall, Keene  |Nays:|Duvall, Galgiani,         |
          |     |                          |     |Garrick, Houston, Huff    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Prohibits, until January 1, 2011, the Department of  
          Motor Vehicles (DMV) from issuing, renewing, duplicating, or  
          replacing a driver's license or identification (ID) card, if the  
          license or card uses radio waves to either transmit personal  
          information remotely or to enable personal information to be  
          read from the license or card remotely.   

           EXISTING LAW  :

          1)Authorizes the DMV to issue an original driver's license or  
            identification card, or a renewal, duplicate, or replacement  
            driver's license or ID card, when appropriate requirements  
            have been satisfied.  Specifies the required contents that  
            must appear on each driver's license and identification card.   


          2)Limits the purposes for which a business may swipe the  
            magnetic strip of a California driver's license or ID card and  
            makes it a misdemeanor to use the information for any  
            unauthorized purpose.  

          3)Provides that no agency may disclose personal information in a  
            manner that would link the information disclosed to the  
            individual to whom it pertains, subject to certain exceptions.  








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             Further provides that each agency shall keep an accurate  
            accounting of the date, nature, and purpose of each disclosure  
            made pursuant to one of the authorized exceptions.  

          4)Grants to all persons within this state a constitutional right  
            to privacy, and provides that government may not intrude upon  
            this privacy unless:  a) it is necessary to further a  
            compelling state interest; and, b) there is no feasible and  
            effective alternative that would have a lesser impact on  
            privacy interests.  (Cal. Const., Art. I, Sec. 1; Academy of  
            Pediatrics v. Lungren (1997) 16 Cal. 4th 307.)  

           FISCAL EFFECT  :  None

           COMMENTS  :  This bill is one of a number of bills introduced by  
          the author that seek to prohibit, limit, or otherwise regulate  
          the use of remotely readable radio frequency identification  
          (RFID) devices.  According to the author, the use of RFID  
          technology in government-issued documents, and driver's licenses  
          and ID cards in particular, poses a serious threat to the  
          personal privacy of Californians with only marginal offsetting  
          benefits.  The author generally concedes that RFID has many  
          potentially useful applications, such as inventory management.   
          But he points to a number of studies and reports which  
          purportedly show that the technology also poses "clear privacy  
          and security risks."  Despite these risks, the author points  
          out, existing law does not currently regulate the use RFID  
          devices. 
           
          According to the author, the use of RFID in driver's licenses  
          and ID cards is especially egregious given their widespread  
          distribution and the fact that adult citizens have little  
          practical choice but to obtain a license or ID card.  We would  
          in effect, the author contends, be forcing millions of  
          law-abiding citizens to carry documents which would broadcast  
          their personal information and could be used to track their  
          location.  

          This bill is opposed by a number of retail, banking, and  
          business associations and various companies that manufacture  
          RFID and related technologies. Opponents claim that the author  
          and supporters of this and the related RFID bills overstate the  
          dangers of this new technology.  They claim that RFID is, in  
          fact, a safe, efficient, and cost effective technology that  








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          actually enhances safety and security.  Legislation that would  
          ban this technology, opponents claim, would deprive the public  
          of significant benefits and hamper an industry that is creating  
          jobs and generating economic growth in California.

          Opponents argue that this bill, in particular, seeks to address  
          a problem that does not yet exist.  According to the Hi-Tech  
          Trust Coalition, "the Department of Motor Vehicles has publicly  
          stated that they do not intend to use RFID devices within  
          driver's licenses within the foreseeable future."  Because there  
          is no problem at this time, this bill will have no effect except  
          to send a message that RFID is a dangerous technology that  
          threatens our privacy and facilitates identify theft, even  
          though there is as yet no real life example of it doing so.  The  
          only purpose of this bill then, according to the Coalition, is  
          to stigmatize a promising new technology and discourage  
          investment in its development.  HID Global makes a similar  
          argument, but adds that DMV recently concluded contract  
          negotiations to extend the current non-RFID drivers' licenses  
          for five more years.  In short, this bill creates a three-year  
          ban on DMV even though DMV cannot possibly use the technology,  
          even if it wanted to, for another five years. 


           Analysis Prepared by  :  Thomas Clark / JUD. / (916) 319-2334 


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