BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 60
                                                                  Page  1

          Date of Hearing:   July 11, 2007 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mark Leno, Chair

                     SB 60 (Cedillo) - As Amended:  July 3, 2007 

          Policy Committee:                             Transportation  
          Vote:        12-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires the DMV, by May 1, 2008, to report to the  
          Legislature on issues concerning the implementation of the  
          federal Real ID Act of 2005 (Act).  Specifically, this bill  
          requires the DMV report to include the following:

          1)The measures that need to be taken to implement the Act in  
            California.
          2)An estimate of implementation costs.
          3)Recommendations for funding implementation of the Act. 

           FISCAL EFFECT  

          Minor costs, probably less than $50,000 in 2007-08, to the DMV  
          to develop the report on Act implementation.  (Motor Vehicle  
          Account)

           COMMENTS  

           1)Rationale  .  This bill requires the DMV to formally report to  
            the Legislature on the measures required and the costs  
            associated with implementing the federal Real ID Act in  
            California.  

           2)Preliminary Costs  .  DMV's preliminary analysis of the Act has  
            already identified implementation costs of at least $500  
            million, with little or none of the costs reimbursed by the  
            federal government.  This estimate does not reflect the  
            possibility that final federal regulations would require  
            states to use polycarbonate in the production of driver  
            license cards and ID cards, instead of the less expensive  








                                                                  SB 60
                                                                  Page  2

            material assumed in the implementation cost estimate.  The DMV  
            believes that a polycarbonate requirement will add another  
            $200 million to its preliminary cost estimate.  The $500  
            million cost estimate also does not reflect any effort to  
            establish a "second-tier" driver license for undocumented  
            persons.

           3)Related Legislation  .  AB 1433 (Huff), sponsored by the DMV,  
            includes provisions to position California for eventual  
            implementation of the Act.  AB 1433 was held in the Assembly  
            Transportation Committee.

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081