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