BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1465 (Gordon) - Driver's licenses.
          
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          |Version: March 26, 2015         |Policy Vote: T. & H. 11 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: July 6, 2015      |Consultant: Mark McKenzie       |
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          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  







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          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.  









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          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.




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