BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 1213
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  hueso
                                                         VERSION: 2/20/14
          Analysis by:  Erin Riches                      FISCAL:  yes
          Hearing date:  April 8, 2014



          SUBJECT:

          Vehicles:  enhanced driver's licenses

          DESCRIPTION:

          This bill authorizes the Department of Motor Vehicles (DMV) to  
          issue enhanced driver's licenses (EDLs), which individuals can  
          use at border crossings as proof of both identity and  
          citizenship.

          ANALYSIS:

          Existing law authorizes DMV to issue driver's licenses and  
          identification cards.  In order to obtain a driver's license or  
          identification card, an individual must provide, among other  
          things, a social security number, verification of birth date and  
          legal presence in the U.S., and a thumb print.  The DMV encodes  
          the individual's basic personal information in a magnetic strip  
          on the back of the license or card.

          To address the need for increased security measures after the  
          9/11 terrorist attacks, Congress passed the Intelligence Reform  
          and Terrorism Prevention Act of 2004 (Public Law 108-458).  To  
          implement this legislation, with an eye to reducing border  
          congestion, the Department of State and Department of Homeland  
          Security (DHS) established a plan called the Western Hemisphere  
          Travel Initiative (WHTI).  The WHTI requires U.S. and Canadian  
          travelers to present a passport or other document proving  
          identity and citizenship to enter the country beginning in 2007  
          for air travel into the U.S. and in 2009 for land and sea travel  
          into the U.S.  The EDL is one of the documents meeting WHTI  
          requirements.  

          An EDL is a driver's license that an individual can also use as  
          a travel document to enter the U.S. from Mexico, Canada, the  
          Caribbean, and Bermuda.  A key feature distinguishing an EDL  
          from a California driver's license is Radio Frequency  




          SB 1213 (HUESO)                                        Page 2
          
                                                                       


          Identification (RFID) technology.  RFID systems allow  
          information contained in a wireless device or "tag" to be read  
          from a distance.  RFID technology can be found in car keys,  
          security access cards, and highway toll lanes (such as  
          "FasTrak").

          Under WHTI, U.S. Customs and Border Protection (border patrol)  
          created "ready lanes" at some ports of entry, including Calexico  
          and Otay Mesa on the California-Mexico border, dedicated to  
          travelers with RFID-enabled travel documents such as EDLs.   
          Frequent travelers who hold EDLs can use these ready lanes to  
          expedite the inspection process.  Specifically, as a traveler  
          approaches inspection lanes at the border, authorized readers  
          read the EDL from 10 to 15 feet away.  The WHTI provides that no  
          personal information is stored on the EDL, but rather a number  
          that points to information housed in the secure database.  Upon  
          reading this number, the reader signals the database to display  
          biographical information, a photo, and the results of  
          terrorist/criminal checks to the border patrol officer as the  
          vehicle pulls up to the inspection booth.  While the officer  
          must still conduct a visual inspection, and potentially  
          interview the driver, he or she does not have to take the time  
          to collect paper documents and key them in.  Four states  
          (Michigan, New York, Vermont, and Washington), as well as four  
          Canadian provinces, are currently issuing EDLs.  

           This bill  :

           Authorizes DMV to enter into a memorandum of understanding  
            with a federal agency to obtain approval to issue an EDL,  
            instruction permit, provisional license, or identification  
            card (hereafter referred to as EDL) that meets WHTI  
            requirements.  

           Authorizes DMV to issue or renew an EDL to an applicant 16  
            years or older and is both a California resident and a U.S.  
            citizen.

           Requires the applicant for an EDL to sign a declaration  
            acknowledging his or her understanding of RFID technology.

           Requires DMV to include in the EDL reasonable security  
            measures to protect against unauthorized duplication or  
            disclosure of the holder's personal information.  

           Requires an applicant for an EDL to submit proof of identify,  




          SB 1213 (HUESO)                                        Page 3
          
                                                                       


            residency, and citizenship and to certify under penalty of  
            perjury that the information is valid.  

           Limits the RFID technology in the EDL to contain only a  
            randomly assigned number, encrypted subject to DHS approval,  
            and a barcode that can be read by border patrol. 

           Requires DMV to notify an applicant that the randomly assigned  
            RFID number can be read remotely without the holder's  
            knowledge, especially if the EDL is not enclosed in a  
            protective shield or similar tamper-resistant device.

           Prohibits an employer from requiring an employee to apply for  
            or use an EDL as a condition of employment or to discharge,  
            discriminate against, or retaliate against an employee who  
            refuses to apply for or use an EDL.

           Requires an applicant for an EDL to allow DMV to capture or  
            reproduce his or her photograph and signature at the time of  
            application or renewal and provides that these items shall  
            only be available to border patrol or DHS.

           Establishes a maximum non-refundable fee of $55 for  
            application or renewal, in addition to other fees required by  
            state law, to be deposited in a special account within the  
            Motor Vehicle Account.

           Requires DMV to submit an annual report to the Legislature  
            including, but not limited to, information on the number of  
            EDLs and related documents issued, the effect on wait times  
            and traffic congestion at border points of entry, and whether  
            or not there have been any security or privacy breaches  
            related to the use of EDLs or related documents.
          COMMENTS:

           1.Purpose  .  The author states that long wait times, as high as  
            three to four hours, between Imperial County and the Mexican  
            border accounted for an estimated output loss of $1.4 billion  
            and 11,600 lost jobs nationally in 2007.  In San Ysidro, the  
            busiest port of entry in the world, 50,000 vehicles and 25,000  
            pedestrians are processed into the U.S. each day.  Congestion  
            at these ports of entry has led to significant negative  
            impacts on air quality, neighboring communities, businesses,  
            tourists, and employees traveling to work.  In order to fully  
            leverage California's economy and improve trade, business, and  
            tourism, the state needs a modern, efficient, and responsible  




          SB 1213 (HUESO)                                        Page 4
          
                                                                       


            way to expedite the movement of people across the  
            California-Mexico border.  EDLs can greatly reduce wait times  
            at the border, thereby providing significant economic benefits  
            to California while strengthening border security.  

           2.EDLs and RFID technology  .  An RFID tag with a power source is  
            an "active" tag that can transmit a radio wave containing  
            information to any reader in the area.  An RFID tag without a  
            power source is a "passive" tag; a reader can remotely read  
            the information when the tag gets within a certain range of  
            the reader.  While an RFID tag is similar to bar code  
            technology, it is different in that it can be read remotely,  
            without having to swipe the bar code, and in that much more  
            information can be stored on an RFID tag chip than in a bar  
            code.  The EDL proposed in this bill would include a passive  
            tag.  In addition, as required by WHTI, the bill specifies  
            that the EDL would contain only a number that points to  
            information housed in the border patrol's secure database.

           3.Privacy concerns  .  The American Civil Liberties Union (ACLU)  
            and several other organizations note that the U.S. Department  
            of Homeland Security has admitted that personal identification  
            information encoded on the RFID chip be read from up to 30  
            feet away.  They argue that this bill includes no  
            technological protections in the RFID chip, or in the EDL  
            document itself, to keep this personal information from being  
            read without an individual's knowledge or consent.  Further,  
            there is nothing in the EDL as currently designed to prevent  
            an individual from building similar readers to make  
            counterfeit EDLs.  The organizations state that the EDL as  
            currently proposed does not have the basic security and  
            privacy features included in U.S. e-passports.  They also note  
            that California law safeguards the confidentiality of the  
            driver's license by including the personal information on a  
            magnetic strip, which can be swiped by businesses but cannot  
            be read from a distance.  Because EDLs could be read from a  
            distance, an individual, business, or agency could build up a  
            database about an individual without the person ever knowing  
            about it.  

            The author responds that this bill expressly states that the  
            RFID chips will contain only a randomly assigned number, as  
            well as encryption and other security measures such as  
            tamper-resistant features.  The author made several amendments  
            last year to address ACLU concerns, including changing the  
            word "facial image" to "photograph" to avoid issues relating  




          SB 1213 (HUESO)                                        Page 5
          
                                                                       


            to biometric identification; requiring DMV to inform EDL  
            applicants that the randomly assigned number can be read  
            remotely without the individual's knowledge; and expressly  
            stating that this bill is not intended to conflict with any  
            other state or federal law.

           4.What about AB 60  ?  AB 60 (Alejo), Chapter 524, Statutes of  
            2013, requires DMV to issue a driver's license to an  
            individual who is ineligible for a social security number if  
            the individual can provide additional documentation, as  
            specified.  Pursuant to the federal REAL ID Act, the "driving  
            privilege only" (DP) license cannot be used for identification  
            purposes, and DMV must obtain approval on the license design  
            from the DHS before it may begin issuing the new DP license.   
            An individual does not have to be a U.S. citizen in order to  
            obtain the DP license, but must be able to establish proof of  
            identity and of legal presence in the U.S.  DMV is currently  
            in the process of implementing AB 60, and expects to begin  
            issuing DP licenses in January 2015.  The EDL created by this  
            bill differs from the DP license in that for an EDL, an  
            individual must be both a California resident and a U.S.  
            citizen.

          RELATED LEGISLATION:
          
          This bill is virtually identical to two prior bills:

          SB 397 (Hueso) of 2013, which this committee passed unanimously,  
          but the Assembly Appropriations Committee held on the suspense  
          file.  

          AB 2113 (Hueso) of 2012, which never made it to the Senate  
          because the Assembly Appropriations Committee held it on the  
          suspense file.  To address numerous privacy concerns raised by  
          the RFID technology included in the EDL, the author took several  
          amendments proposed by the Assembly Judiciary Committee.  That  
          language is included in this bill.

          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             April 2,  
          2014.)

               SUPPORT:  California Chamber of Commerce
                         City of San Diego
                         County of Imperial
                         Otay Mesa Chamber of Commerce




          SB 1213 (HUESO)                                        Page 6
          
                                                                       


                     
               OPPOSED:  American Civil Liberties Union of California 
                         CaLegislation
                         Consumer Watchdog
                         Eagle Forum of California 
                         Privacy Rights Clearinghouse