BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 60
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  Cedillo
                                                         VERSION: 1/20/09
          Analysis by:  Jennifer Gress                   FISCAL:  yes
          Hearing date:  April 14, 2009








          SUBJECT:

          Federal Real ID Act:  driver's license eligibility

          DESCRIPTION:

          This bill requires the State of California to comply with the  
          federal Real ID Act of 2005, a measure that establishes  
          standards for the issuance of drivers' licenses and  
          identification cards that may be used by federal agencies for  
          official purposes.  In complying with the Real ID Act, this bill  
          requires the Department of Motor Vehicles (DMV) to issue two  
          types of drivers' licenses and identification cards:  cards that  
          may be used for official federal purposes, and for persons who  
          are not able to demonstrate legal presence status, cards that do  
          not.   

          ANALYSIS AND BACKGROUND:
          
          Existing State Law
           Current law provides that DMV shall "require every applicant for  
          an original driver's license or identification card to submit  
          satisfactory proof that the applicant's presence in the United  
          States is authorized under federal law."  DMV may not issue an  
          original driver's license to persons who cannot submit  
          satisfactory proof of legal presence.  In addition, existing law  
          provides that "the department shall require every application  
          for a driver's license to contain the applicant's social  
          security number and any other number or identifier determined to  
          be appropriate by DMV."  The California Code of Regulations  
          specifies approximately 27 documents that may be submitted as  
          satisfactory proof of legal presence status.  It a misdemeanor  
          for any person to assist knowingly in obtaining a driver's  




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          license or identification card for any person whose presence in  
          the United States is not authorized under federal law.

          The legal presence provision was enacted by the Legislature (SB  
          976 (Alquist), Chapter 820, Statutes of 1993) in order to make  
          the driver's license a more secure form of identification with  
          the intent of preventing undocumented persons from being  
          licensed or obtaining DMV identification cards.  The supporters  
          of SB 976 asserted that the driver's license was a "breeder  
          document" that was used to acquire other documentation and  
          served as the most widely accepted form of personal  
          identification used to qualify for both private and public  
          sector services and programs.

          In response to the enactment of Senate Bill 976, DMV authorized  
          a variety of birth verification/immigration status documents  
          that applicants for an original driver's license or  
          identification card can submit for the purpose of documenting  
          legal presence.  When an applicant submits a specified document,  
          such as a birth certificate, it is reviewed for acceptability  
          and authenticity by a DMV field office employee.  For  
          verification of Bureau of Citizenship & Immigration Services  
          (formerly the "Immigration and Naturalization Service")  
          documents submitted by applicants, DMV has direct computer  
          access to the Systematic Alien Verification for Entitlements  
          (SAVE), an electronic intergovernmental-sharing system  
          maintained by the U.S. Department of Homeland Security (DHS) to  
          ensure that only legally entitled aliens receive government  
          benefits and services.  

           The Federal Real ID Act   
          The federal Real ID Act of 2005 emerged as one response to the  
          terrorist attacks that occurred on September 11, 2001.  A number  
          of the 9/11 hijackers had acquired state-issued drivers'  
          licenses, primarily from the State of Florida and the  
          Commonwealth of Virginia, which were used for identification  
          purposes to board and later hijack the ill-fated airliners.  As  
          a result of these attacks, the federal government established  
          the National Commission on Terrorist Attacks upon the United  
          States (the 9/11 Commission).  In its final report, the 9/11  
          Commission concluded that the "abuse of the immigration system  
          and a lack of interior enforcement were unwittingly working  
          together to support terrorist activities."

          Congress enacted H.R. 1268 - the "Real ID Act of 2005" to  
          improve the security of driver's licenses and identification  




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          cards issued by the states.  The Real ID Act includes certain  
          minimum document and license issuance requirements, as described  
          below.  The federal act allows for three types of driver's  
          licenses.  For driver's license applicants meeting all of the  
          requirements, including demonstrating lawful presence, the state  
          shall issue a driver's license that may be used by federal  
          agencies for official purposes.  For those applicants who have  
          an application for legal status pending, has an approved  
          deferred action status, or has temporary protected status, a  
          state shall issue a temporary driver's license or identification  
          card that may be used by federal agencies for official purposes.  
           Finally, for those applicants who are unable to demonstrate  
          lawful presence, a state may issue a driver's license or  
          identification card, providing the license meets certain  
          appearance requirements and clearly states that it cannot be  
          used for any official purpose.

          While not specifically mandating the provisions of Real ID on  
          states, the act provides that if a state fails to implement its  
          provisions, a federal agency would not be authorized to accept a  
          license issued by that state for any official purpose, including  
          to board an airplane or enter a federal building or facility.   
          At the time Real ID was passed, it was expected that all the  
          states would adopt these provisions.  The federal act originally  
          required implementation to begin in May 2008, however, the final  
          regulations delay full implementation until May 11, 2011, at  
          which time states must begin issuing Real ID-compliant cards.  
          The pertinent provisions included in the Real ID Act of 2005 are  
          outlined below.

          Provisions of Real ID
          
          Minimum License Document Requirements:

                     Applicant's full legal name and gender.
                     Applicant's date of birth. 
                     Digital photograph of the applicant.
                     License number and applicant's signature.
                     Applicant's residence address.
                     Security features designed to prevent tampering,  
                 counterfeiting, or duplication.
                     Common machine readable technology.

          Minimum Issuance Standards for Applicants:

                     Provide a photo identity document.




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                     Provide date of birth documentation.
                     Provide proof of social security number (or  
                 verification that the applicant is not eligible).
                     Provide residence documentation.

          Evidence of Lawful Status:  A state "shall require, before  
          issuing a driver's license or identification card to a person,  
          valid documentary evidence that the person": 

                     Is a citizen or national of the United States.
                     Is an alien lawfully admitted for permanent or  
                 temporary residency.
                     Has conditional permanent resident status.
                     Has an approved application for asylum or has  
                 refugee status.
                     Has a valid, unexpired nonimmigrant visa or  
                 nonimmigrant visa status.
                     Has a pending application for asylum.
                     Has a pending or approved application for temporary  
                 protected status.
                     Has approved deferred action status.
                     Has a pending application for adjustment of status.

          Verification of Documents:

                     A state "shall verify, with the issuing agency, the  
                 issuance, validity, and completeness of each document  
                 required to be presented by the applicant."
                     A state shall not accept any foreign document, other  
                 than a passport.
                     A state shall use the Systematic Alien Verification  
                 for Entitlements to verify legal presence.

          Other Requirements:

                     Employ technology to capture digital images of  
                 identity source documents.
                     Retain paper documents for 7 years or images of  
                 source documents for 10 years.
                     Subject applicants to mandatory facial image  
                 capture.
                     Establish an effective procedure to confirm or  
                 verify a renewing applicant's information.
                     Confirm with the Social Security Administration a  
                 social security number.
                     Limit term of a license or identification card to 8  




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                 years.
                     Confirm that an out-of-state license applicant is  
                 terminating or has terminated the license from that  
                 state.

          Licenses for Undocumented Persons:  A state is permitted to  
          issue a driver's license or identification card to a person  
          without legal presence status providing that it meets the  
          following requirements:

                     The license or identification card "clearly states  
                 on its face that it may not be accepted by any Federal  
                 agency for federal identification or any other official  
                 purpose."
                     The license or identification card "uses a unique  
                 design or color indicator to alert federal agencies and  
                 other law enforcement personnel that it may not be  
                 accepted for any such purpose."
          
           Federal Regulations to Implement the Real ID Act
           The final regulations, published in the Federal Register on  
          January 29, 2008, were very different from the act itself and  
          allowed states to apply for up to two extensions in order to  
          phase in the implementation of the act and the issuance of  
          compliant cards.  The final rule established two levels of  
          compliance and timeframes for each.  The first level is referred  
          to as material compliance, which states must achieve by January  
          1, 2010, and the second level is full compliance, which must be  
          achieved by May 11, 2011.  DMV has developed a table that  
          outlines each requirement for material and full compliance,  
          which is included in Appendix A of this analysis.  

          According to DMV, California's current driver's license and  
          identification card (DL/ID) system already incorporates  
          approximately 90 percent of the requirements necessary to be  
          deemed materially compliant with the Real ID Act for original  
          applicants. There are no states that can claim to be in full  
          compliance with the Real ID Act because the national databases  
          necessary to complete the required verification procedures do  
          not currently exist. Therefore, while California has made no  
          decision to comply with the Real ID Act, DMV believes it is well  
          positioned to meet the material compliance requirements  
          contained in the regulations.

          In addition to phasing in the state's compliance, the final  
          regulations provided more time for states to issue compliant  




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          driver's licenses and identification cards (DL/IDs).  States  
          have until December 1, 2014 to issue new cards to people born  
          after December 1, 1964 and until December 1, 2017 to anyone born  
          on or before December 1, 1964. The following section of this  
          report highlights key dates for implementing the Act.  
          
          Compliance Timelines 

          05/11/2008 By May 11, 2008, the federal government cannot accept  
                    state-issued driver license or identification cards  
                    for official purposes from states that have not been  
                    determined to be in compliance unless the state has  
                    requested an extension by mid-March. California has  
                    requested and received an extension to December 31,  
                    2009.

          12/31/2009 The initial extension will terminate unless the  
                    state, by October 1, 2009, has requested an additional  
                    extension and submitted certification that the state  
                    has achieved material compliance. 

          05/11/2011 Driver license and identification cards will not be  
                    accepted from states that are not in full compliance  
                    with the provisions of the Real ID Act.  States must  
                    begin issuing Real ID compliant DL/IDs. 

          12/01/2014 Federal agencies will not accept DL/IDs for official  
                    purposes from any individual born after December 1,  
                    1964.  For California, this represents approximately  
                    60 percent of all cardholders.

          12/01/2017 Federal agencies will not accept any DL/IDs for  
                    official purposes from any individual born on or  
                    before December 1, 1964.  For California, this  
                    represents approximately 40 percent of all  
                    cardholders.

           This bill  :

           Requires the State of California to comply with the federal  
            Real ID Act of 2005.  In complying with the Real ID Act, this  
            bill requires DMV to issue, beginning 240 days following the  
            date when the state is deemed to be in compliance with the  
            Act, two types of DL/IDs:  cards that may be used for official  
            federal purposes, and for persons who are not able to  
            demonstrate legal presence status, cards that do not.   




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           Deletes the provision that it is 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, and  
            instead, once the state is in compliance with the Real ID Act,  
            makes it a misdemeanor for any person to assist knowingly in  
            obtaining a driver's license or identification card that is in  
            violation of the Real ID Act.
          
          COMMENTS:

           1.Purpose  .  This measure, known as the "California Real ID Act  
            of 2009," is intended to ensure that the State of California  
            meets the standards and requirements contained in the federal  
            Real ID Act and the state "has a federally recognized driver's  
            license and identification card."  In addition, it would  
            explicitly enact into state law the option in the federal act  
            that authorizes a state to issue a driver's license to a  
            person who cannot meet the identify requirements of the act.   
            According to the author, this bill is needed because DMV  
            cannot begin implementation of the federal law until the  
            Legislature passes and the Governor signs a bill authorizing  
            them to proceed.  
          
           2.Criticisms of Real ID and barriers to implementation  .

            Unfunded mandate.  According to DMV's analysis of the final  
            rule, the federal Office of Management and Budget estimated  
            the cost of the act to be over $10 billion, of which $4  
            billion would be borne by the states for implementation.  To  
            date, DHS has provided a total of $90 million to the states to  
            help defray these costs.

            In California, DMV estimates that implementing Real ID over  
            eight years would cost $143 million for material compliance  
            and $303 million for full compliance.  It has received $3.2  
            million in federal grant aid.

            Databases not yet developed.  The principal difference between  
            material and full compliance is that to be in full compliance,  
            the states must verify the identity documents using national  
            databases that have not yet been developed.  Appendix B of  
            this analysis contains a figure that describes each of the  
            databases required by the final rule and whether it database  
            is necessary for material or full compliance (i.e., does it  




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            exist).  It is not known when these databases will be  
            developed and ready for use.  The committee may wish to  
            consider whether it is appropriate to move forward with  
            implementation when full compliance is dependent on  
            infrastructure that does not yet exist.

            These databases raise additional concerns.  California will  
            likely bear some cost associated with developing and accessing  
            the databases.  How much?  Where will those funds come from?   
            Finally, databases that contain identity information of much  
            of the nation's population may invite hacking or other  
            unauthorized use to commit fraud or identity theft.  How will  
            the databases be secured to assure that the privacy of  
            Californians is adequately protected?

            Privacy.  Since the passage of the Real ID Act in 2005,  
            privacy and civil rights advocates, most notably the American  
            Civil Liberties Union (ACLU), have raised concerns regarding  
            how personal information acquired and technology deployed  
            under the Act may compromise one's privacy.

            Discrimination and racial profiling.  The ACLU, along with  
            other organizations, have also raised concerns regarding the  
            potential that having two distinct cards may lead to racial  
            profiling.  In its letter of opposition, the ACLU states:
               
                  Citizens and immigrants who look or sound "foreign" may  
               be subject to greater scrutiny as DMV workers must  
               determine and verify the immigration status and then issue  
               a specific class or license depending on that status.  Many  
               citizens and lawfully present immigrants will be denied  
               licenses improperly by DMV employees who may not be able to  
               determine their immigration status.  Other potentially  
               eligible citizens and immigrants will be unable to secure a  
               license because they do not possess one of the documents on  
               the new narrow list.  For example, the Center on Budget and  
               Policy Priorities surveyed U.S. born Medicaid recipients  
               and determined that 3-5 million lacked a birth certificate  
               or U.S. passport.

           3.This bill does not implement Real ID  .  To fully comply with  
            Real ID, several changes to state law would be necessary,  
            which this bill does not make.  In its assessment of the final  
            regulations, DMV identified at least three areas that would  
            require legislation if the state were to implement the Act.   
            These include:




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                  Authorizing the issuance of two types of DL/IDs.

                 Strengthening the privacy statutes to protect  
               individuals from unwarranted access to personal  
               information.

                 Making conforming or small changes throughout the  
               statutes to facilitate implementation (e.g., modifying the  
               list of acceptable forms of identification, changing the  
               renewal-by-mail program). 

           4.Premature  ?  According to DMV, the National Governor's  
            Association is sponsoring legislation that will give the  
            states more flexibility in implementing Real ID.   
            Additionally, in its analysis of the Governor's budget  
            proposal to increase funding to assist DMV in achieving  
            material compliance, the Legislative Analyst's Office (LAO)  
            concluded, "?given the change in the federal administration,  
            we think it makes sense to hold off on implementation of Real  
            ID until more is known about the new administration's position  
            on this hugely expensive and unfunded federal mandate?states  
            are not required to begin issuing Real ID compliant licenses  
            until May 2011.  There would still be time for the state to  
            come into compliance with this requirement by the federal  
            deadline?"  Given the uncertainty surrounding the future of  
            the Real ID Act at the federal level, the committee may wish  
            to consider whether it is necessary or appropriate to take  
            action now to implement the act, particularly in light of the  
            significant criticisms and barriers that exist to doing so.

           5.Other states  .  Fifteen states have taken legislative action  
            either to implement or not to implement the Real ID Act. 

                  Three  states are implementing Real ID and have  
               legislation enacted to authorize it:  Florida, Nevada, and  
               Tennessee. 

                  Eleven  states have statutes that prohibit the  
               implementation of Real ID:  Alaska, Arizona, Georgia,  
               Idaho, Louisiana, Maine, Minnesota, Montana, New Hampshire,  
               Oklahoma, and South Carolina.

                  One  state has a statute that allows for the  
               implementation of Real ID if federal funding becomes  
               available:  Washington. 




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           6.Issuance by 12/1/09  .  Under existing law, drivers' licenses  
            are renewed every five years.  To meet the requirement that  
            all people born after December 1, 1964 be issued cards that  
            are in compliance with Real ID, DMV would have to start  
            issuing new and original cards by December 1 of this year in  
            order to avoid having to require individuals to come into a  
            DMV field office prior to the date by which they would  
            otherwise be required to renew their license.  Neither this  
            bill nor any other state action will permit DMV to achieve  
            this given the barriers to implementation that currently  
            exist.

           7.Suggested amendments  .
          
             a)   Given the barriers to implementation and uncertainty  
               regarding the future of Real ID, the author or committee  
               may wish to consider amendments that would delete the  
               requirement to implement Real ID and instead require DMV to  
               issue licenses to individuals even if they are not able to  
               document legal presence status, provided those persons are  
               able to demonstrate they can safely operate a motor  
               vehicle.

             b)   The bill requires DMV to begin issuing Real ID-compliant  
               DL/IDs 240 days after the state is deemed by DHS to be in  
               compliance with the federal act.  It is unclear, however,  
               how this date (240 days after compliance) conforms with the  
               dates for material and full compliance, or by the dates it  
               would be necessary to begin issuing compliant DL/IDs to  
                          achieve the 2014 and 2017 deadlines.  For this reason, the  
               author or committee may wish to consider amendments to  
               establish a firm deadline for implementing the Act, either  
               January 1, 2010 (material compliance) or May 11, 2011 (full  
               compliance). 

           POSITIONS:  (Communicated to the Committee before noon on  
                     Wednesday,                              
                      April 8, 2009)

               SUPPORT:  California Catholic Conference
                         Consumer Attorneys of California
                         Los Angeles Unified School District
                         Yolo County Sheriff's Department
          
               OPPOSED:  American Civil Liberties Union




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                         Californians for Population Stabilization
                         California Immigrant Policy Center
                         Concerned Women for America