BILL ANALYSIS Ó
SB 397
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Date of Hearing: August 21, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 397 (Hueso) - As Amended: August 15, 2013
Policy Committee:
TransportationVote:15-0
Judiciary 10-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill authorizes the DMV to issue enhanced driver's
licenses, which include transmission technology to denote
identity and citizenship, for purposes of entering the United
States at land and sea ports of entry. Specifically, this bill:
1)Authorizes the DMV to enter into a memorandum of understanding
with a federal agency to allow the department to offer
applications for an enhanced driver's license, instructional
permit, provisional license, or identification card [hereafter
EDL] to a person at least 16 years of age, a resident of
California, and a U.S. citizen.
2)Prohibits an employer from requiring an employee to obtain or
use an EDL as a condition of employment or from taking an
adverse action against an employee for refusing to do so.
3)Requires an applicant for an EDL to sign a declaration
acknowledging his or her understanding of radio frequency
identification (RFID) technology, and requires the EDL to
include reasonable security measures to protect against
unauthorized duplication or disclosure of personal
information.
4)Requires DMV to inform the applicant that the randomly
assigned RFID number can be read remotely without the holder's
knowledge, especially if the EDL is not enclosed in a
protective shield or similar tamper-resistant device.
5)Requires the DMV to set an EDL application fee, to exceed $55,
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and provides that fees shall be deposited in the EDL and
Identification Card Subaccount and expended to implement this
bill.
6)Requires DMV to report annually to relevant legislative
committees on the number of EDLs issued, the effect on wait
times and traffic congestion at points of entry, and whether
there have been any security or privacy breaches related to
the use of the EDL.
FISCAL EFFECT
1)One-time costs special fund costs of around $4.5 million over
two to five years, if the DMV exercises the authority to
develop the EDL program. Start-up costs would include
completing an MOU with the Department of Homeland Security;
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.
[Motor Vehicle Account (MVA)]
2)Ongoing costs to operate the program would likely be in the
low millions of dollars for additional staff. [MVA]
3)The above costs would be offset by EDL fee revenue, however no
revenue would accrue until after DMV incurs most of the
startup costs, thus the department would need to cover these
costs through borrowing from internal funds or from
programmatic efficiencies or reductions.
COMMENTS
1)Background . Before 9-11, land travel across borders,
especially between the U.S. and Canada, tended to be somewhat
lax and informal. More rigorous enforcement since 9-11,
however, has slowed crossings and led to longer wait lines. To
reduce congestion, the federal World Hemisphere Travel
Initiative (WHTI) authorized the use of enhanced driver's
licenses and identification cards, and the U.S. Customs and
Border Protection created "Ready Lanes" dedicated to travelers
with RFID-enabled travel documents. Under WHTI, and rules
promulgated by the Department of Homeland Security (DHS),
states that border Mexico and Canada may enter into agreements
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with DHS that allow them to issue enhanced driver's licenses
that meet certain criteria, including use of radio frequency
identification (RFID) technology.
So far four states - Vermont, New York, Michigan, and
Washington - have enacted authorizing legislation and already
have EDLs in place. For the most part the programs have met
with success. For example, the New York State DMV reports on
its website that over 100,000 persons have availed themselves
of the new licenses, especially in upstate New York near the
Canadian border.
2)Purpose . This bill would permit California citizens traveling
across the California-Mexico border to take advantage of this
more convenient and time-saving process. The author cites a
2007 report suggesting that long wait times slow commerce and
discourage personal trips across the California-Mexico border.
(San Diego Association of Governments and the California
Department of Transportation, 2007 Update to Economic Impacts
of Wait Times at the San Diego-Baja California Border: Final
Report.) The report claims that delays at the border at the
San Ysidro, Otay Mesa, and Tecate points-of-entry result in
the loss of millions (and even billions) of dollars in lost
revenue and tens of thousands of jobs in the San Diego-Baja
region. Proponents, mainly business groups and local officials
from both Southern California and Northern Mexico, argue that
this measure will reduce wait times and facilitate
cross-border travel and trade.
3)Less Costly Alternative May Exist . The State Department issues
passport cards-equipped with RFID technology-which the
department describes as more convenient and less expensive
than a passport book can be used to enter the United States
from Canada, Mexico, the Caribbean and Bermuda at land border
crossings or sea ports-of-entry. The passport card costs $55
for first issue and $30 to renew and is good for ten years. A
person does not have to first have a passport in order to
obtain a passport card.
4)Prior Legislation . In 2012, a substantially similar bill, AB
2113 (Hueso), was held on this committee's Suspense File.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081
SB 397
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