BILL ANALYSIS Ó
SB 249
Page 1
Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 249
(Hueso) - As Amended July 16, 2015
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Urgency: No State Mandated Local Program: YesReimbursable:
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
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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 any person who is at least 16 years of age, a resident
of California, and a U.S. citizen.
2)Requires DMV to provide a protective shield with the ELD and
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 the protective
shield.
3)Requires an applicant for an EDL to sign a declaration
acknowledging his or her understanding of radio frequency
identification (RFID) technology and the purpose of the
protective shield, and requires the EDL to include reasonable
security measures to protect against unauthorized duplication
or disclosure of personal information.
4)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.
5)Authorizes an employee that is discriminated or retaliated
against per (4) to file a complaint with the Division of Labor
Standards Enforcement of the Department of Industrial
Relations.
6)Requires the DMV to set an EDL application fee, not to exceed
$55, and provides that fees shall be deposited in the EDL and
Identification Card Subaccount and expended, upon
appropriation by the Legislature, to implement this bill.
7)Requires DMV to report annually to relevant legislative
committees on the number of EDLs issued, the effect on wait
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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 upfront costs of around $4.4 million over several
fiscal 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 of about $1.2 million to operate the program.
[MVA]
3)Offsetting revenue for the above costs from EDL application
fees. If DMV sets the fee at the maximum $55, implementation
and ongoing costs would be fully funded by 2021-22. No revenue
would accrue until after DMV incurs most of the start-up
costs, however, thus the department would need to cover these
costs through borrowing from internal funds or from
programmatic efficiencies or reductions.
4)Unknown, likely absorbable costs to the Division of Labor
Standards Enforcement to investigate discrimination and
retaliation complaints against employers. [Labor Enforcement
Compliance Fund]
COMMENTS:
1)Background. Before 9-11, land travel across borders,
especially between the U.S. and Canada, tended to be somewhat
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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
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.
At the time of this analysis, the author was continuing
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discussions with privacy advocates, including the American
Civil Liberties Union, in an attempt to address their
concerns.
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. SB 397 (Hueso) of 2014 and AB 2113 (Hueso)
of 2012, both similar bills, were held on this committee's
Suspense File.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081