BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1465 (Gordon) - Driver's licenses. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 26, 2015 |Policy Vote: T. & H. 11 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: July 6, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1465 would require all applicants for an original driver's license or identification card to submit proof of California residency, beginning July 1, 2016. Fiscal Impact: The Department of Motor Vehicles (DMV) would incur one-time and ongoing costs of approximately $5.56 million in 2016-17 and approximately $5.4 million annually thereafter, primarily related to increased transaction times. (Motor Vehicle Account) Background: Existing law generally requires applicants for an original AB 1465 (Gordon) Page 1 of ? driver's license or identification card to submit satisfactory proof of legal presence status under federal law, 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 that the person is in the country legally, but not authorized to work. Existing law, AB 60 (Alejo), Ch. 524/2013, requires DMV to issue an original driver's license to an applicant who is unable to demonstrate proof of legal presence in the United States, if that person meets all other qualifications for licensure and provides satisfactory proof of identity and California residency. An AB 60 driver's license is valid only for driving purposes and cannot be used for identification or federal purposes. 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, DHS has determined that 21 states meet REAL ID Act standards, but the remaining states, including California, have been granted a deferment. The current round of extensions will end on October 15, 2015, but DHS will typically renew an extension if a state can provide adequate justification for continued non-compliance, such as demonstrating progress towards implementing minimum standards of the Act, plans for implementing any unmet requirements, and external factors that have caused delays towards full implementation. AB 1465 (Gordon) Page 2 of ? Proposed Law: Beginning July 1, 2016, AB 1465 would require an applicant for an original driver's license or identification card to submit satisfactory proof of California residency, and would prohibit DMV from issuing a license or identification card to an applicant who cannot prove residency. The bill would also require DMV to adopt regulations specifying procedures for verifying an applicant is a California resident. Staff Comments: This bill is a federal conformity measure that is intended to bring the state incrementally closer to full compliance with the Real ID Act. This would help demonstrate progress towards implementing the Act's minimum standards and full compliance that is necessary for an extension from DHS. The bill would require DMV to update regulations and make other necessary one-time changes for implementation, such as programming and updating of applications, handbooks, and DMV's website. It is likely that DMV could duplicate the regulatory requirements for AB 60's California residency documentation when developing and adopting regulations related to the implementation of this bill. The significant annual ongoing costs of approximately $5.4 million would primarily be attributable to increased processing for the collection, review, and scanning of residency documents, which would add time to each transaction for an original driver's license and identification card. DMV estimates the bill would apply to approximately 130,000 transactions each month, and would require the equivalent of an additional 85 PY of staff time statewide. -- END --