BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 60 (Alejo) - Driver's license eligibility: required  
          documentation.
          
          Amended: July 8, 2013           Policy Vote: T&H 8-2
          Urgency: No                     Mandate: No
          Hearing Date: August 19, 2013                           
          Consultant: Mark McKenzie       
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: AB 60 would authorize the Department of Motor  
          Vehicles (DMV) to issue a driver's license, other than a  
          commercial driver's license, to an applicant who provides four  
          specified documents that establish proof of identity, rather  
          than providing a social security number (SSN) or other proof of  
          legal presence in the United States.

          Fiscal Impact: 
              Estimated DMV costs of approximately $140 million to $220  
              million over three years to issue approximately 1.4 million  
              new driver's licenses (Motor Vehicle Account).  Most of  
              these costs are for new temporary facilities, additional  
              staff, and increased processing time in field offices  
              throughout the state.

              Estimated driver's license application fee revenues of  
              approximately $50 million over three years (Motor Vehicle  
              Account).

          Background: Current law requires every applicant for an original  
          driver's license or identification card to submit satisfactory  
          proof that the person has legal presence status under federal  
          law.  The California Code of Regulations specifies over 30  
          documents that may be submitted as satisfactory proof of legal  
          presence status, such as a birth certificate or approved  
          immigration documents.  Applications for the issuance or renewal  
          of a driver's license or ID card must contain a section for the  
          applicant's social security number.  DMV is prohibited from  
          accepting an application without a verified SSN unless the  
          application was submitted with documents establishing legal  
          presence and the Department of Homeland Security (DHS) verifies  








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          that the person is in the country legally, but not authorized to  
          work.  It a misdemeanor for any person to assist knowingly in  
          obtaining a driver's license or identification card for any  
          person whose presence in the United States is not authorized  
          under federal law.  DMV charges an application fee of $32 for a  
          standard Class C driver's license.  

          Proposed Law: AB 60 would authorize DMV, beginning January 1,  
          2015, to issue a driver's license to an applicant that provides  
          specified documentation in lieu of a SSN or proof of legal  
          presence in the United States.  Specifically, this bill would:
                 Authorize an applicant to provide all of the following,  
               instead of a SSN or proof of legal presence: 
                  o         A valid passport or consular identification  
                    document issued by the applicant's home country.
                  o         An original birth certificate or other proof  
                    of age designated by DMV.
                  o         A residential utility bill, lease or rental  
                    agreement, or other proof of California residency, as  
                    designated by DMV.
                  o         Any one of the following documents,  
                    accompanied by an English translation if necessary: a  
                    marriage license or divorce certificate; a specified  
                    foreign electoral photo card; a foreign driver's  
                    license; DHS Forms I-589, I-20, or DS-2019; specified  
                    education records; a property deed or title; a recent  
                    property tax statement; an income tax return; or other  
                    proof of identity, as designated by DMV.
                 Require all applications for a driver's license or  
               identification card to include, in addition to space for a  
               SSN, a space for a number associated with any document that  
               established the identity of the applicant, as determined by  
               DMV.
                 Specify that an applicant for a commercial driver's  
               licenses must provide a SSN.

          The bill would also delete the following provisions, effective  
          January 1, 2015 that:
                 Prohibit DMV from issuing a driver's license to an  
               applicant who cannot provide proof of legal presence in the  
               US.    
                 Allow DMV to issue a driver's license to an applicant  
               from another country who can establish legal presence as  
               approved by the federal government.     








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                 Require DMV to issue a temporary driver's license to a  
               legal nonimmigrant if he or she has successfully completed  
               the application and related requirements but the US  
               Immigration and Naturalization Service has not yet verified  
               the applicant's legal presence status.
                 Make it a misdemeanor for an individual to assist  
               knowingly in obtaining a driver's license or identification  
               card for an individual who is unable to establish legal  
               presence.

          Staff Comments: DMV currently issues approximately 900,000  
          original driver's licenses each year.  AB 60 is expected to  
          encourage many of the estimated 2 million undocumented  
          immigrants of driving age in California to apply for a driver's  
          license.  This bill would have a significant impact on DMV  
          operations and service levels in field offices statewide.  DMV  
          anticipates a processing volume of approximately 1.4 million  
          additional applicants over a three-year period, beginning in  
          2015 as a result of the bill.  DMV estimates costs to process  
          new undocumented immigrant applications to be in the range of  
          $140 million to $220 million over three years, with offsetting  
          driver's license application fee revenue gains of approximately  
          $50 million.  Total costs include additional facilities  
          requirements, additional field staffing, extended Saturday field  
          office service, outreach activities, phone centers,  
          investigations, human resources, training, and headquarter  
          processing.  The disparity in the range of costs is based upon  
          two distinct implementation approaches.  The estimated costs  
          would also depend upon the actual volume of applicants and how  
          well the impacts are tolerated.

          DMV estimates up-front costs in the range of $20 million to $60  
          million (depending on the chosen approach) for new temporary  
          facilities to handle the increased volume of customers,  
          significant computer programming costs in the low millions, and  
          approximately $100 million to hire and train new staff to handle  
          the increased workload, all of which must be in place prior to  
          implementation and cannot be financed with application fees.   
          DMV would require a multi-million dollar appropriation in the  
          2014-15 budget year to implement this bill.  According to the  
          Governor's budget documents, the Motor Vehicle Account is  
          projected to have a reserve of approximately $237 million at the  
          end of the 2013-14 budget year.  The expenditures envisioned by  
          this bill would have a significant impact on overall condition  








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          of the Motor Vehicle Account.

          Congress enacted and the President signed H.R. 1268-"Real ID Act  
          of 2005" on May 11, 2005, which is designed to improve the  
          security of driver's licenses and identification cards issued by  
          the individual states.  The Act includes certain minimum  
          document and license issuance requirements, and it provides that  
          only persons with legal presence status can be issued a driver's  
          license or identification card (DL/ID).  A state, however, is  
          permitted to issue a license or identification card to an  
          undocumented immigrant, providing the license meets certain  
          appearance requirements and clearly states that it cannot be  
          used for any other official purpose.  A driver's license issued  
          by a state that is not compliant with the Act will not be  
          recognized for federal identification purposes, such as entering  
          a federal building or boarding a plane.  To date, the Department  
          of Homeland Security has determined that only 13 states meet  
          REAL ID Act standards, and California is not among them.   
          Enforcement of the Act has been deferred several times, and DHS  
          is contemplating continued deferments for states that are making  
          efforts to attain REAL ID compliance.  Staff notes that the  
          author of AB 60 has indicated that the bill may be amended to  
          address issues related to the REAL ID Act.  Such amendments  
          would likely have impact on the fiscal estimates noted above.