BILL ANALYSIS �
AB 2113
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Date of Hearing: May 16, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2113 (Hueso) - As Amended: April 30, 2012
Policy Committee:
TransportationVote:13-0
Judiciary 10-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill authorizes issuance of enhanced driver
licenses-standard driver licenses with 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 Department of Motor Vehicles (DMV) to enter
into a memorandum of understanding (MOU) with a federal agency
to receive approval for the issuance of enhanced driver
licenses, instruction permits, provisional licenses or
identification cards (EDLs, collectively) as proof of identity
and citizenship.
2)Authorizes DMV, upon request of the applicant, to issue an EDL
to an applicant who is at least 16 years of age, a resident of
California and a citizen of the United States.
3)Provides for various disclosures to an applicant of an EDL and
various, specific security features.
4)Authorizes DMV to deny an application or renewal for an EDL if
it is not satisfied with documentation supporting the
application, and provides such an applicant the right to
appeal the denial.
5)Authorizes DMV to charge an applicant for issuance or renewal
of an EDL fee of $75, in addition to any other fees, to be
deposited in the EDL Identification Card Account, created by
this bill, within the Motor Vehicle Account.
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6)Requires DMV to report annually to certain committees of the
Legislature regarding issuance of EDLs, the effect of that
issuance on wait times at border crossings and any security
issues.
FISCAL EFFECT
1)Potential one-time costs, should DMV choose to exercise the
authority provided by this bill, of approximately $4.5 million
over two to five years for DMV to development the EDL program
(Motor Vehicle Account (MVA)). According to DMV, program
development will include entrance into a comprehensive 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. Startup activities
will also include significant information technology
programming and purchase of Radio Frequency Identification
(RFID) readers and other equipment.
2)Potential annual costs to DMV of an unknown but significant
amount, in the range of hundreds of thousands of dollars to
the low millions, to administer the EDL program, should DMV
choose to exercise the authority provided by this bill. The
ongoing costs generally will begin following program
implementation (MVA).
3)Potential annual revenue of approximately $21 million (based
on a DMV estimate of issuance and renewal of 280,000 EDLs per
year), should DMV choose to exercise the authority provided by
this bill (MVA). While revenue would far exceed both DMV's
startup and ongoing costs, the revenues would not begin until
after DMV incurs most of its one-time startup costs of
approximately $4.5 million. Therefore, DMV would need to
cover startup costs through borrowing from internal funds or
from programmatic reductions.
COMMENTS
1)Rationale . The author asserts that the state's international
border crossings are exceptionally busy and have peak wait
times of four hours or more. The author contends that these
wait times translate into a revenue loss of over $1 billion in
the San Diego region alone. The author further contends that
issuance of EDLs will allow US Customs and Border Protection
to convert more lanes to into express "ready lanes" thereby
reducing border crossing wait times significantly.
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2)Background . According to the Department of Homeland Security,
state-issued EDLs provide proof of identity and US
citizenship, are issued in a secure process, and include
technology that makes travel easier. They provide travelers
with a low-cost, convenient alternative for entering the
United States from Canada, Mexico or the Caribbean through a
land or sea port of entry, in addition to serving as a permit
to drive.
Enhanced drivers licenses make it easier for U.S. citizens to
cross the border into the United States because they include a
vicinity RFID chip that will signal a secure system to pull up
biographic and biometric data as an EDL holder approaches a
border inspection booth. Michigan, New York, Vermont and
Washington are issuing EDLs.
1)A Lower-cost Alternative May Already Exist. The State
Department issues passport cards, which the department
describes as more convenient and less expensive than a
passport book and that 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 five years. And, the passport card is
equipped with RFID technology. It is worth considering
whether the federal passport card could achieve the goals of
this bill without incurring state costs.
2)Support. This bill is supported by the California Chamber of
Commerce, the Governor of the State of Baja California, and
other governmental officials and organizations representing
the international border region.
3)Opposition . This bill is opposed by the American Civil
Liberties Union and other privacy rights groups who are
concerned about the potential compromise of personal data
contained in RFID devices.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081
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