SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Driver's License 
Security and Modernization Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Minimum document requirements and issuance standards for 
                            Federal recognition.
Sec. 4. Linking of databases.
Sec. 5. Trafficking in authentication features for use in false 
                            identification documents.
Sec. 6. Grants to States.
Sec. 7. Authority.
Sec. 8. Repeal.

SEC. 2. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Driver's license.--The term ``driver's license'' means 
        a motor vehicle operator's license, as defined in section 30301 
        of title 49, United States Code.
            (2) Identification card.--The term ``identification card'' 
        means a personal identification card, as defined in section 
        1028(d) of title 18, United States Code, issued by a State.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security.
            (4) State.--The term ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, the Northern Mariana Islands, 
        the Trust Territory of the Pacific Islands, and any other 
        territory or possession of the United States.

SEC. 3. MINIMUM DOCUMENT REQUIREMENTS AND ISSUANCE STANDARDS FOR 
              FEDERAL RECOGNITION.

    (a) Minimum Standards for Federal Use.--
            (1) In general.--Beginning 3 years after the date of the 
        enactment of this Act, a Federal agency may not accept, for any 
        official purpose, a driver's license or identification card 
        issued by a State to any person unless the State is meeting the 
        requirements of this section.
            (2) State certifications.--The Secretary shall determine 
        whether a State is meeting the requirements of this section 
        based on certifications made by the State to the Secretary. 
        Such certifications shall be made at such times and in such 
        manner as the Secretary, in consultation with the Secretary of 
        Transportation, may prescribe by regulation.
    (b) Minimum Document Requirements.--To meet the requirements of 
this section, a State shall include, at a minimum, the following 
information and features on each driver's license and identification 
card issued to a person by the State:
            (1) The person's full legal name.
            (2) The person's date of birth.
            (3) The person's gender.
            (4) The person's driver license or identification card 
        number.
            (5) A digital photograph of the person.
            (6) The person's address of principal residence.
            (7) The person's signature.
            (8) Physical security features designed to prevent 
        tampering, counterfeiting, or duplication of the document for 
        fraudulent purposes.
            (9) A common machine-readable technology, with defined 
        minimum data elements.
    (c) Minimum Issuance Standards.--
            (1) In general.--To meet the requirements of this section, 
        a State shall require, at a minimum, presentation and 
        verification of the following information before issuing a 
        driver's license or identification card to a person:
                    (A) A photo identity document, except that a non-
                photo identity document is acceptable if it includes 
                both the person's full legal name and date of birth.
                    (B) Documentation showing the person's date of 
                birth.
                    (C) Proof of the person's social security account 
                number or verification that the person is not eligible 
                for a social security account number.
                    (D) Documentation showing the person's name and 
                address of principal residence.
            (2) Special requirements.--
                    (A) In general.--To meet the requirements of this 
                section, a State shall comply with the minimum 
                standards of this paragraph.
                    (B) Evidence of legal status.--A State shall 
                require, before issuing a driver's license or 
                identification card to a person, valid documentary 
                evidence that the person--
                            (i) is a citizen of the United States;
                            (ii) is an alien lawfully admitted for 
                        permanent or temporary residence in the United 
                        States;
                            (iii) has conditional permanent resident 
                        status in the United States;
                            (iv) has a valid, unexpired nonimmigrant 
                        visa or nonimmigrant visa status for entry into 
                        the United States;
                            (v) has a pending or approved application 
                        for asylum in the United States;
                            (vi) has entered into the United States in 
                        refugee status;
                            (vii) has a pending or approved application 
                        for temporary protected status in the United 
                        States;
                            (viii) has approved deferred action status; 
                        or
                            (ix) has a pending application for 
                        adjustment of status to that of an alien 
                        lawfully admitted for permanent residence in 
                        the United States or conditional permanent 
                        resident status in the United States.
                    (C) Temporary drivers' licenses and identification 
                cards.--
                            (i) In general.--If a person presents 
                        evidence under any of clauses (iv) through (ix) 
                        of subparagraph (B), the State may only issue a 
                        temporary driver's license or temporary 
                        identification card to the person.
                            (ii) Expiration date.--A temporary driver's 
                        license or temporary identification card issued 
                        pursuant to this subparagraph shall be valid 
                        only during the period of time of the 
                        applicant's authorized stay in the United 
                        States or if there is no definite end to the 
                        period of authorized stay a period of one year.
                            (iii) Display of expiration date.--A 
                        temporary driver's license or temporary 
                        identification card issued pursuant to this 
                        subparagraph shall clearly indicate that it is 
                        temporary and shall state the date on which it 
                        expires.
                            (iv) Renewal.--A temporary driver's license 
                        or temporary identification card issued 
                        pursuant to this subparagraph may be renewed 
                        only upon presentation of valid documentary 
                        evidence that the status by which the applicant 
                        qualified for the temporary driver's license or 
                        temporary identification card has been extended 
                        by the Secretary of Homeland Security.
            (3) Applications for renewal, duplication, or reissuance.--
                    (A) Presumption.--For purposes of paragraphs (1) 
                and (2), a State shall presume that any driver's 
                license or identification card for which an application 
                has been made for renewal, duplication, or reissuance 
                has been issued in accordance with the provisions of 
                such paragraphs if, at the time the application is 
                made, the driver's license or identification card has 
                not expired or been canceled, suspended, or revoked.
                    (B) Limitation.--Subparagraph (A) shall not apply 
                to a renewal, duplication, or reissuance if the State 
                is notified by a local, State, or Federal government 
                agency that the person seeking such renewal, 
                duplication, or reissuance is neither a citizen of the 
                United States nor legally in the United States.
            (4) Verification of documents.--To meet the requirements of 
        this section, a State shall implement the following procedures:
                    (A) Before issuing a driver's license or 
                identification card to a person, the State shall 
                verify, with the issuing agency, the issuance, 
                validity, and completeness of each document required to 
                be presented by the person under paragraph (1) or (2).
                    (B) The State shall not accept any foreign 
                document, other than an official passport, to satisfy a 
                requirement of paragraph (1) or (2).
                    (C) Not later than September 11, 2005, the State 
                shall enter into a memorandum of understanding with the 
                Secretary of Homeland Security to routinely utilize the 
                automated system known as Systematic Alien Verification 
                for Entitlements, as provided for by section 404 of the 
                Illegal Immigration Reform and Immigrant Responsibility 
                Act of 1996 (110 Stat. 3009-664), to verify the legal 
                presence status of a person, other than a United States 
                citizen, applying for a driver's license or 
                identification card.
    (d) Other Requirements.--To meet the requirements of this section, 
a State shall adopt the following practices in the issuance of drivers' 
licenses and identification cards:
            (1) Employ technology to capture digital images of identity 
        source documents so that the images can be retained in 
        electronic storage in a transferable format.
            (2) Retain paper copies of source documents for a minimum 
        of 7 years or images of source documents presented for a 
        minimum of 10 years.
            (3) Subject each person applying for a driver's license or 
        identification card to mandatory facial image capture.
            (4) Establish an effective procedure to confirm or verify a 
        renewing applicant's information.
            (5) Confirm with the Social Security Administration a 
        social security account number presented by a person using the 
        full social security account number. In the event that a social 
        security account number is already registered to or associated 
        with another person to which any State has issued a driver's 
        license or identification card, the State shall resolve the 
        discrepancy and take appropriate action.
            (6) Refuse to issue a driver's license or identification 
        card to a person holding a driver's license issued by another 
        State without confirmation that the person is terminating or 
        has terminated the driver's license.
            (7) Ensure the physical security of locations where 
        drivers' licenses and identification cards are produced and the 
        security of document materials and papers from which drivers' 
        licenses and identification cards are produced.
            (8) Subject all persons authorized to manufacture or 
        produce drivers' licenses and identification cards to 
        appropriate security clearance requirements.
            (9) Establish fraudulent document recognition training 
        programs for appropriate employees engaged in the issuance of 
        drivers' licenses and identification cards.

SEC. 4. LINKING OF DATABASES.

    (a) In General.--To be eligible to receive any grant or other type 
of financial assistance made available under this Act, a State shall 
participate in the interstate compact regarding sharing of driver 
license data, known as the ``Driver License Agreement'', in order to 
provide electronic access by a State to information contained in the 
motor vehicle databases of all other States.
    (b) Requirements for Information.--A State motor vehicle database 
shall contain, at a minimum, the following information:
            (1) All data fields printed on drivers' licenses and 
        identification cards issued by the State.
            (2) Motor vehicle drivers' histories, including motor 
        vehicle violations, suspensions, and points on licenses.

SEC. 5. TRAFFICKING IN AUTHENTICATION FEATURES FOR USE IN FALSE 
              IDENTIFICATION DOCUMENTS.

    Section 1028(a)(8) of title 18, United States Code, is amended by 
striking ``false authentication features'' and inserting ``false or 
actual authentication features''.

SEC. 6. GRANTS TO STATES.

    (a) In General.--The Secretary may make grants to a State to assist 
the State in conforming to the minimum standards set forth in this Act.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for each of the fiscal years 2005 through 
2009 such sums as may be necessary to carry out this Act.

SEC. 7. AUTHORITY.

    (a) Participation of Secretary of Transportation and States.--All 
authority to issue regulations, certify standards, and issue grants 
under this Act shall be carried out by the Secretary, in consultation 
with the Secretary of Transportation and the States.
    (b) Extensions of Deadlines.--The Secretary may grant to a State an 
extension of time to meet the requirements of section 3(a)(1) if the 
State provides adequate justification for noncompliance.

SEC. 8. REPEAL.

    Section 7212 of the Intelligence Reform and Terrorism Prevention 
Act of 2004 (Public Law 108-458) is repealed.
Driver's License Security and Modernization Act - Prohibits a Federal agency from accepting a State-issued driver's license or identification card unless it includes certain information, including a digital photograph, a common machine-readable technology, and certain anti-fraud physical security features. Prescribes minimum license or identification card issuance standards and other special requirements (including requirements with respect to the issuance of temporary drivers' licenses and identification cards) States must meet.

Requires a State, among other things, to require, before issuing a driver's license or other identification card, valid documentary evidence that a person has: (1) U.S. citizenship; (2) lawful permanent residence in the United States; or (3) another specified lawful immigrant or nonimmigrant status.

Requires a State, to be eligible for a grant to assist it in conforming to such minimum standards, to participate in the interstate compact, "Driver License Agreement," in order to provide electronic access by a State to information contained in the motor vehicle databases of all other States.

Repeals similar requirements contained in the Intelligence Reform and Terrorism Prevention Act of 2004.
To establish and rapidly implement regulations for State driver's license and identification document security standards.