```

[Senate Report 111-104]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 217
111th Congress                                                   Report
                                 SENATE
 1st Session                                                    111-104

======================================================================

PROVIDING FOR ADDITIONAL SECURITY IN STATES' IDENTIFICATION ACT OF 2009

                               __________

                              R E P O R T

                                 of the

        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 1261

TO REPEAL TITLE II OF THE REAL ID ACT OF 2005 AND AMEND TITLE II OF THE 
     HOMELAND SECURITY ACT OF 2002 TO BETTER PROTECT THE SECURITY, 
 CONFIDENTIALITY, AND INTEGRITY OF PERSONALLY IDENTIFIABLE INFORMATION 
 COLLECTED BY STATES WHEN ISSUING DRIVER'S LICENSES AND IDENTIFICATION 
                   DOCUMENTS, AND FOR OTHER PURPOSES

                December 9, 2009.--Ordered to be printed

        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware           JOHN McCAIN, Arizona
MARK L. PRYOR, Arkansas              GEORGE V. VOINOVICH, Ohio
MARY L. LANDRIEU, Louisiana          JOHN ENSIGN, Nevada
CLAIRE McCASKILL, Missouri           LINDSEY GRAHAM, South Carolina
JON TESTER, Montana                  ROBERT F. BENNETT, Utah
ROLAND W. BURRIS, Illinois
PAUL G. KIRK, Jr., Massachusetts

                  Michael L. Alexander, Staff Director
                     Kevin J. Landy, Chief Counsel
            Deborah P. Parkinson, Professional Staff Member
 Evan W. Cash, Professional Staff Member, Subcommittee on Oversight of 
   Government Management, the Federal Workforce, and the District of 
                                Columbia
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
                    John K. Grant, Minority Counsel
Tara L. Shaw, Minority Counsel, Subcommittee on Oversight of Government 
    Management, the Federal Workforce, and the District of Columbia
                  Trina Driessnack Tyrer, Chief Clerk

                                                       Calendar No. 217
111th Congress                                                   Report
                                 SENATE
 1st Session                                                    111-104

======================================================================

 
PROVIDING FOR ADDITIONAL SECURITY IN STATES' IDENTIFICATION ACT OF 2009

                                _______
                                

                December 9, 2009.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 1261]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 1261) to repeal 
title II of the REAL ID Act of 2005 and amend title II of the 
Homeland Security Act of 2002 to better protect the security, 
confidentiality, and integrity of personally identifiable 
information collected by States when issuing driver's licenses 
and identification documents, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History.............................................15
 IV. Section-by-Section Analysis.....................................16
  V. Evaluation of Regulatory Impact.................................20
 VI. Congressional Budget Office Cost Estimate.......................20
VII. Changes in Existing Law Made by the Bill, as Reported...........25

                         I. Purpose and Summary

    The purpose of S. 1261 is to replace existing minimum 
standards for States' issuance of driver's licenses and 
identification cards that can be used as identification for 
certain federal official purposes in order to decrease the cost 
and increase the practicality of issuing secure identification. 
S. 1261 would replace Title II of the REAL ID Act of 2005 (P.L. 
109-13) with new drivers license and identification card 
standards. It would also amend the Drivers Privacy Protection 
Act (P.L. 103-322) to set new conditions under which non-
governmental entities could read and use information stored on 
the machine-readable component of a driver's license or 
identification card.

              II. Background and Need for the Legislation

    The issuance of driver's licenses and State identification 
cards has long been left to the discretion of State and local 
governments. As a result, Americans face a patchwork of diverse 
policies governing who qualifies for a driver's license, how an 
individual proves his or her identity when applying for a 
license, and the physical appearance and construction of the 
card. Any coordination among the States has been done through 
voluntary efforts by the departments of motor vehicles (DMVs) 
themselves.

                     9/11 COMMISSION RECOMMENDATION

    The need for federal intervention in the issuance protocols 
for State driver's licenses and identification cards was raised 
in 2004 by the National Commission on Terrorist Attacks Upon 
the United States (9/11 Commission), which recommended that the 
federal government set standards for the issuance of 
identification documents, such as driver's licenses. This 
recommendation was based on the finding that

          All but one of the 9/11 hijackers acquired some form 
        of U.S. identification document, some by fraud. 
        Acquisition of these forms of identification would have 
        assisted them in boarding commercial flights, renting 
        cars, and other necessary activities. . . . Fraud in 
        identification documents is no longer just a problem of 
        theft. At many entry points to vulnerable facilities, 
        including gates for boarding aircraft, sources of 
        identification are the last opportunity to ensure that 
        people are who they say they are and to check whether 
        they are terrorists.\1\
---------------------------------------------------------------------------
    \1\9/11 Commission Report, p. 390.
---------------------------------------------------------------------------

  PREVIOUS LEGISLATIVE EFFORTS AT ESTABLISHING UNIFORM IDENTIFICATION 
                               STANDARDS

    In response to the 9/11 Commission Report, Congress passed 
the Intelligence Reform and Terrorism Prevention Act of 2004 
(IRTPA; P.L. 108-458), which among other things, required the 
Secretary of Transportation, in consultation with the Secretary 
of Homeland Security, to issue regulations with respect to 
minimum standards for federal acceptance of driver's licenses 
and identification cards through a negotiated rulemaking among 
DOT and DHS representatives, State officials, and other 
interested parties. Under Section 7212 of IRTPA, no federal 
agency would be permitted to accept a State issued 
identification card unless it conformed to the minimum 
standards.
    IRTPA directed its regulations to include minimum applicant 
documentation standards, procedures for document verification, 
requirements for the card contents, and standards for 
application processing.\2\ It also mandated privacy protections 
for those who apply for and hold such identification.
---------------------------------------------------------------------------
    \2\Public Law 108-458, Section 7212 (Repealed).
---------------------------------------------------------------------------
    The negotiated rulemaking committee had met only once 
before Congress passed the REAL ID Act of 2005 as part of the 
2005 Emergency Supplemental Appropriations Act for Defense, the 
Global War on Terror, and Tsunami Relief (P.L. 109-13). The 
REAL ID Act repealed Section 7212 of IRTPA and replaced the 
negotiated rulemaking provision with a stricter set of federal 
requirements for the issuance of driver's licenses and 
identification cards.\3\ The REAL ID Act was inserted into P.L. 
109-13 during the House-Senate conference; the Senate did not 
independently consider or vote on the REAL ID Act as either a 
bill or an amendment to a bill. Moreover, neither the House nor 
the Senate held hearings on the REAL ID Act prior to its 
enactment.
---------------------------------------------------------------------------
    \3\Public Law 109-13, Division B--The REAL ID Act of 2005.
---------------------------------------------------------------------------
    Title II of the REAL ID Act of 2005 requires that, 
beginning on May 11, 2008, federal agencies may accept only 
State issued driver's licenses and identification cards that 
are compliant with the requirements of the Act as proof of 
identification for certain federal purposes, including--but not 
limited to--boarding an airplane, accessing a nuclear facility, 
or entering a federal building. Before issuing a compliant 
document, a state must verify the issuance, validity, and 
completeness of: (1) a photo identification document or a non-
photo document containing both the individual's full legal name 
and date of birth; (2) the individual's date of birth; (3) the 
individual's social security number (SSN) or verification of 
the individual's ineligibility for a SSN; and (4) name and 
address of the individual's principle residence. In addition, 
the Act requires States to provide electronic access to the 
information contained in other States' driver's license 
databases.
    The REAL ID Act also requires States to verify an 
applicant's legal status in the United States before issuing a 
compliant driver's license or identification card and adopt 
procedures and practices to: (1) employ technology to capture 
digital images of identity source documents; (2) retain paper 
copies of source documents for a minimum of seven years or 
images of source documents presented for a minimum of ten 
years; (3) take a picture of each applicant; (4) establish an 
effective procedure to confirm or verify a renewing applicant's 
information; (5) confirm with the Social Security 
Administration a SSN presented by a person using the full 
Social Security account number; (6) refuse issuance of 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 
cards are produced and the security of document materials and 
papers from which driver's licenses and identification cards 
are produced; (8) subject all persons authorized to manufacture 
or produce driver's licenses and identification cards to 
appropriate security clearance requirements; (9) establish 
fraudulent document recognition training programs for 
appropriate employees engaged in the issuance of driver's 
licenses and identification cards; and (10) limit the length of 
time a driver's license or identification card is valid to 
eight years. The REAL ID Act did not require any protection of 
personally identifiable information.
    A September 2006 report issued by the National Governors 
Association (NGA), the National Conference of State 
Legislatures (NCSL), and the American Association of Motor 
Vehicle Administrators (AAMVA), based on a nation-wide survey 
of State DMVs, concluded that compliance with the REAL ID Act 
would cost States more than $11 billion over five years, would 
have a negative impact on DMV services, and would impose 
unrealistic burdens on States.\4\
---------------------------------------------------------------------------
    \4\The Real ID Act: National Impact Analysis (September 2006).
---------------------------------------------------------------------------
    On March 1, 2007, Department of Homeland Security (DHS) 
released a notice of proposed rulemaking (NPRM), which was 
published in the Federal Register on March 9, 2007.\5\ The 
proposed rule sought to implement each of the REAL ID Act's 
mandates. The Office of Management and Budget (OMB) estimated 
that the proposed rule would cost States $14.6 billion over 10 
years.
---------------------------------------------------------------------------
    \5\72 Fed. Reg. 10820 (March 9, 2007).
---------------------------------------------------------------------------
    After receiving numerous comments on the NPRM, including 
concerns regarding cost, schedule, and lack of privacy 
protections, DHS issued a final rule implementing Title II of 
the REAL ID Act on January 29, 2008.\6\ The final rule, which 
differed significantly from the NPRM, required that States use 
certain federal databases for verification purposes, set 
minimum standards for State motor vehicle databases, check with 
other States to determine if compliant identification had been 
issued in any other State, complete security plans, and 
physically secure identification issuance facilities. These 
regulations addressed some of the timing and cost concerns with 
REAL ID by offering a series of deadline extensions to States 
demonstrating progress in meeting REAL ID requirements and 
allowing a phased issuance of licenses and identification cards 
to different segments of the population. OMB estimated the cost 
of the final rule to States to be $3.9 billion over ten 
years.\7\
---------------------------------------------------------------------------
    \6\73 Fed. Reg. 5272 (January 29, 2008).
    \7\See Id. at p. 5272-5340.
---------------------------------------------------------------------------
    For all practical purposes, the final rule effectively 
disregards the law's May 11, 2008, deadline. Instead it used 
the waiver authority granted to the Secretary under REAL ID to 
put in its place a series of deadlines, each requiring States 
to demonstrate a certain level of compliance with REAL ID. 
First, States were allowed to request from DHS an extension 
until December 31, 2009, by submitting a written statement 
attesting to the State's intent to comply with REAL ID. 
However, in reality, a number of States were granted extensions 
based on a promise to improve driver's license security in 
general, as opposed to a specific commitment to comply with 
REAL ID. Second, the rule stated that States that could 
demonstrate ``material compliance'' with REAL ID by October 
2009 would be granted an additional extension until May 10, 
2011, to begin issuing fully compliant licenses. ``Material 
compliance'' is defined to mean meeting a series of 18 
benchmarks laid out by DHS in the final rule. By May 11, 2011, 
all States must be compliant with REAL ID for the issuance of 
all new licenses. The regulations provide for a phased-in, 
risk-based issuance such that individuals born after December 
1, 1964, be issued REAL-ID compliant driver's licenses by 
December 1, 2014, and that all license holders seeking 
compliant licenses have them by December 1, 2017.
    If at any point a State does not meet one of the extension 
criteria, the full weight of the REAL ID Act takes effect, and 
no licenses issued by that State may be used to prove identity 
for federal purposes, including boarding a commercial airplane.

                      COMMITTEE CONSIDERS OPTIONS

    The Committee (HSGAC), including its Subcommittee on 
Oversight of Government Management, the Federal Workforce, and 
the District of Columbia (OGM), has held three hearings 
exploring the implementation of the REAL ID Act since that 
law's enactment. In addition, the Senate Judiciary Committee 
held a hearing on the REAL ID Act on May 8, 2007.
    On March 26, 2007, the OGM Subcommittee held a hearing on 
the NPRM entitled, Understanding the Realities of REAL ID: A 
Review of Efforts to Secure Drivers' Licenses and 
Identification Cards.\8\ Witnesses included Richard C. Barth, 
Assistant Secretary for Policy Development, DHS; Leticia Van de 
Putte, Texas State Senator representing NCSL; Mufi Hannemann, 
Mayor of Honolulu, Hawaii; David Quam, Director of Federal 
Relations, NGA; Timothy Sparapani, Legislative Counsel, 
American Civil Liberties Union (ACLU); and Jim Harper, Director 
for Information Policy Studies, CATO Institute.
---------------------------------------------------------------------------
    \8\Senate Homeland Security and Governmental Affairs Subcommittee 
on Oversight of Government Management, the Federal Workforce, and the 
District of Columbia Hearing on Understanding the Realities of REAL ID: 
A Review of Efforts to Secure Drivers' Licenses and Identification 
Cards (S. Hrg. 110-291), March 26, 2007.
---------------------------------------------------------------------------
    On April 29, 2008, the OGM Subcommittee held a second 
hearing entitled The Impact of Implementation: A Review of the 
REAL ID Act and the Western Hemisphere Travel Initiative. This 
hearing examined the views of stakeholders on the final 
regulations, and explored the challenges that remained in 
implementation of REAL ID. The witnesses at that hearing were: 
Stewart A. Baker, Assistant Secretary for Policy, DHS; Derwood 
K. Staeben, Senior Advisor, Department of State; Donna Stone, 
President, NCSL; David Quam, Director of Federal Relations, 
NGA; Caroline Fredrickson, Director of the Washington 
Legislative Office, ACLU; Roger J. Dow, Chief Executive 
Officer, Travel Industry Association; Angelo I. Amador, 
Director of Immigration Policy, U.S. Chamber of Commerce; and 
Sophia Cope, Staff Attorney, Center for Democracy and 
Technology (CDT).
    On July 15, 2009, the Committee held a hearing entitled 
Identification Security: Reevaluating the Real ID Act, which 
focused on the PASS ID Act. Witnesses included: Janet 
Napolitano, Secretary of Homeland Security; Jim Douglas, 
Governor of Vermont; Stewart A. Baker, former Assistant 
Secretary for Policy, DHS; Leroy D. Baca, Sheriff, Los Angeles 
County; David Quam, Director of Federal Relations, NGA; and Ari 
Schwartz, Vice President and Chief Operating Officer, Center 
for Democracy and Technology.
    At these hearings, many witnesses called for repealing REAL 
ID and replacing it with more workable standards. Witnesses 
opposing REAL ID cited cost, time constraints, lack of the 
necessary federal electronic systems, refusal of multiple 
States to comply, and privacy concerns as reasons to 
contemplate a new proposal.
    A number of states have passed resolutions denouncing the 
REAL ID Act. Furthermore, to date, fifteen States have enacted 
laws prohibiting compliance with REAL ID, and several others 
have anti-REAL ID legislation pending.\9\ Unless these States 
reverse the legislation, residents of these States will not 
have compliant identification required for official federal 
purposes. However, the legislatures in most States only meet 
every two years, meaning that if a State legislature did want 
to repeal existing anti-REAL ID laws there could be a 
significant time delay before they are able. The most urgent 
practical repercussion of this State rejection of REAL ID is 
that as of December 31 of this year, millions of Americans will 
not be able to use their State driver's license or 
identification card to board an airplane, unless the Secretary 
further exercises the waiver authority provided under the REAL 
ID Act. At a minimum, this will cause the Transportation 
Security Administration (TSA) to perform more extensive 
screening procedures, potentially including secondary 
screening, on the vast majority of passengers that travel 
through certain airports, greatly inconveniencing passengers 
and causing the air travel industry to lose revenue. The worst 
case scenario is that TSA simply cannot handle the additional 
screening burden and many of these individuals are unable to 
board commercial flights all together.
---------------------------------------------------------------------------
    \9\Those states with laws prohibiting compliance with REAL ID are 
Alaska, Arizona, Georgia, Idaho, Louisiana, Maine, Minnesota, Missouri, 
Montana, New Hampshire, Oklahoma, Oregon, South Carolina, Virginia, and 
Washington.
---------------------------------------------------------------------------
    To address the concerns with REAL ID and avoid significant 
air travel disruptions at the end of this year, the PASS ID Act 
(S. 1261) was introduced by Senators Daniel Akaka, George 
Voinovich, Patrick Leahy, Jon Tester, Max Baucus, and Thomas 
Carper on June 15, 2009 to address these concerns while still 
ensuring a heightened level of security in drivers licenses and 
state-issued identification cards. The following sections 
discuss the major concerns with REAL ID identified in the 
Committee's hearings and how PASS ID would address those 
issues.

                         COST AND PRACTICALITY

    States have repeatedly raised the REAL ID Act's high 
implementation costs as one of their primary concerns with the 
law. At OGM's 2007 hearing, David Quam, Director of Federal 
Relations at NGA, testified that the $11 billion in 
implementation costs, as estimated by NGA, NCSL and AAMVA, 
would have a major adverse effect on State-offered public 
services. According to Mr. Quam, many of the law's provisions 
would impose significant costs on the States, which would have 
to take on additional staff to compress their regular renewal 
cycles for issuing licenses; rework the physical processes for 
issuing licenses; ensure digital storage of all source 
documentation; upgrade and interlink State databases; and 
establish connections to Federal electronic databases.\10\ The 
Honorable Leticia Van de Putte, Texas State Senator and 
President of NCSL, echoed those concerns at the same hearing, 
emphasizing the burden that the costs and implementation 
timeline would create.\11\
---------------------------------------------------------------------------
    \10\See Senate Homeland Security and Governmental Affairs 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia Hearing on Understanding the 
Realities of REAL ID: A Review of Efforts to Secure Drivers' Licenses 
and Identification Cards (S. Hrg. 110-291), p. 26-27, March 26, 2007.
    \11\Id. at p. 22-23.
---------------------------------------------------------------------------
    After DHS issued its final regulations, DHS Assistant 
Secretary for Policy Stewart Baker testified in April 2008 that 
the final regulations reduced the cost to the States from the 
$14.6 billion estimated for the NPRM's proposal to $3.9 
billion. This 73 percent reduction from the NPRM was achieved, 
according to DHS, by giving States more flexibility in security 
requirements and timing.\12\ However, NGA disagreed with that 
savings estimate. For example, according to NGA DHS assumed 
that only 75 percent of all drivers would choose to receive a 
REAL ID, while the States estimated that this figure could be 
substantially higher, particularly if States decline to offer 
their residents an alternative license that is not REAL ID 
compliant.\13\
---------------------------------------------------------------------------
    \12\Senate Homeland Security and Governmental Affairs Subcommittee 
on Oversight of Government Management, the Federal Workforce, and the 
District of Columbia Hearing on The Impact of Implementation: A Review 
of the REAL ID Act and the Western Hemisphere Travel Initiative (S. 
Hrg. 110-555), p. 63, April 29, 2008.
    \13\Id. at p. 36.
---------------------------------------------------------------------------
    States view REAL ID as an unfunded mandate, and the 
majority of governors and State legislators have maintained the 
position that the federal government should bear the majority 
of implementation costs. To date, the Department of Homeland 
Security has awarded approximately $140 million to States to 
implement the requirements of REAL ID, with another $50 million 
appropriated for FY 2010.\14\ DHS has also allowed States to 
reallocate up to 20 percent of their State Homeland Security 
Program grants for REAL ID implementation since FY 2007; 
however, States note that those funds are already committed to 
other pressing homeland security projects and have generally 
been unavailable for REAL ID.
---------------------------------------------------------------------------
    \14\Id. at p. XX.
---------------------------------------------------------------------------
    NGA has estimated that PASS ID would cut in nearly half the 
implementation costs to States by granting additional 
flexibility, modifying requirements and eliminating fees for 
federal databases, and allowing for date-forward renewals to 
distribute compliant licenses and identification cards, meaning 
that States would be given a date when they are required to 
begin issuing compliant licenses as opposed to a date when all 
residents must possess a compliant license.\15\
---------------------------------------------------------------------------
    \15\Testimony of David Quam, Director, Office of Federal Relations, 
National Governors Association before Senate Committee on Homeland 
Security and Governmental Affairs, July 15, 2009.
---------------------------------------------------------------------------

                             RENEWAL CYCLE

    One significant cost driver for States is the requirement 
to issue compliant driver's licenses and identification cards 
to all current card holders in person and within a condensed 
timeframe. The original NPRM for the REAL ID Act would have 
required that States reissue all driver's licenses and 
identification cards no later than May 11, 2013. States 
expressed concern over the disruption that they would face to 
their regular renewal cycles under this timeframe. At the 2007 
OGM hearing, Texas State Senator Van de Putte said that 
implementing REAL ID under the NPRM would have required 
approximately 741 additional full time positions and 18 
additional facilities in the State of Texas alone.\16\
---------------------------------------------------------------------------
    \16\Testimony of Leticia Van de Putte, Texas State Senator before 
Senate Committee on Homeland Security and Governmental Affairs, March 
26, 2007.
---------------------------------------------------------------------------
    Most States currently reissue driver's licenses every 5 to 
10 years, though at least one State issues licenses that are 
valid for 65 years.\17\ Additionally, all States rely on mail-
in and online application processes to facilitate a significant 
percentage of renewals. REAL ID thus will not only require a 
number of States to accelerate their existing schedules; it 
also will require them to do so while issuing and reissuing 
licenses in person. Both of these factors require additional 
staff and, therefore, impose significant new costs.
---------------------------------------------------------------------------
    \17\Division of Motor Vehicles, State of Arizona, http://
www.dmv.com/az/arizona/drivers-license.
---------------------------------------------------------------------------
    To try to address those concerns, the final rule provided 
for a phased enrollment period, whereby States would be 
required to issue new licenses to all residents under the age 
of 50 by December 1, 2014. States would have until December 1, 
2017 to enroll individuals over the age of 50.
    DHS justified these staggered deadlines by citing 
statistical analysis finding that ``persons over the age of 50 
were less likely to be involved in TSA-related law enforcement 
incidents involving false or fraudulent identification.''\18\ 
However, the Governors argued that this change did not go far 
enough. At the July 2009 HSGAC hearing, Vermont Governor Jim 
Douglas argued for further flexibilities. Meeting this 
deadline, he explained, would still require States to alter 
existing timetables for driver's license re-issuance and 
significantly increase costs to the States.\19\
---------------------------------------------------------------------------
    \18\73 Fed. Reg. 5275 (January 29, 2008).
    \19\Testimony of the Honorable Jim Douglas, Director, Governor, 
State of Vermont before Senate Committee on Homeland Security and 
Governmental Affairs, July 15, 2009.
---------------------------------------------------------------------------
    PASS ID would allow States to begin issuing compliant 
licenses more in line with their current renewal cycle by 
requiring compliance with PASS ID for all new or renewed 
licenses issued one year or more after the effective date of 
interim regulations promulgated pursuant to PASS ID. At the 
same time, the bill accelerates the enrollment process by 
requiring States to complete the process in five years, at 
which point all license holders must possess a PASS ID 
compliant license to use it for federal purposes. So, for 
example, if S. 1261 becomes law during the 111th Congress, all 
States would be fully compliant with PASS ID before 2017, the 
current REAL ID completion date.
    The Committee believes this compromise appropriately 
balances the States' need for flexibility with the national 
interest in achieving secure identification documents 
expeditiously.

                 AVAILABILITY OF MANDATED TECHNOLOGIES

    REAL ID requires States to verify the source documents, or 
the essential information contained on the source documents, 
with the issuing agency. For example, the validity of a Social 
Security number would need to be verified with the Social 
Security Administration. The most feasible way to obtain this 
verification is through the use of electronic systems and 
databases. Otherwise, verification would have to be done by 
telephone or mail, which could substantially lengthen the 
application and issuance process. In order to comply with REAL 
ID, a State would need to access five separate electronic 
systems.\20\
---------------------------------------------------------------------------
    \20\Public Law 109-13, Division B--The REAL ID Act of 2005.
---------------------------------------------------------------------------
    Currently, only two of the five systems required by REAL ID 
are fully developed and nationally deployed--the Systematic 
Alien Verification for Entitlements (SAVE) system, administered 
by U.S. Citizenship and Immigration Services at DHS, and the 
Social Security On-Line Verification (SSOLV) system, 
administered by the Social Security Administration.
    The third system, the Electronic Verification of Vital 
Events Records (EVVE) system, which would be used to verify 
birth certificates, has yet to be fully populated and deployed 
and will cost States millions of dollars to ensure all birth 
records are electronically accessible and accurate. According 
to testimony submitted for the Committee's July 2009 hearing 
record from the National Association of Public Health 
Statistics and Information Systems, which administers EVVE, 
only three State DMVs are currently online with EVVE. The 
system currently contains partial birth record information for 
15 States, but the system requires additional work to input and 
confirm records to improve reliability and accuracy.\21\ Once 
State vital records offices are connected to EVVE, State DMVs 
must make the necessary investments and system adjustments to 
gain access to the database. Estimates suggest that it will 
cost States at least $150 million to complete the necessary 
work and allow the effective utilization of EVVE as part of the 
driver's license and identification card application 
process.\22\ There is no way to determine when EVVE will be 
fully deployed to all 50 States and contain the necessary vital 
records.
---------------------------------------------------------------------------
    \21\Baker Testimony, p. 5.
    \22\Statement of the National Association for Public Health 
Statistics and Information Systems for the Record Senate Committee on 
Homeland Security and Governmental Affairs, July 15, 2009.
---------------------------------------------------------------------------
    The other two required electronic systems are: a system 
that connects to the State Department to verify passport 
information, which does not currently exist; and a system 
connecting each of the State DMVs to allow States to check for 
duplicate licenses. In addition to privacy concerns raised over 
these interlinking databases and the costs associated with 
States enabling such information sharing, no electronic system 
has been developed to connect the motor vehicle records of all 
50 States. A pilot program, using funds provided by DHS to the 
State of Mississippi, is currently underway to develop and test 
the State-to-State connectivity, but it is unclear when it will 
be completed and available to the States.
    Governors and State legislators object to being required to 
use electronic systems that are not currently available and 
many over which they have no control. At the Committee's 2007 
hearing, Ms. Van de Putte of NCSL testified, ``It is critical 
that States not be required to electronically verify the 
validity of identification documents with the issuing agency 
until the necessary verification systems have been developed, 
tested and made available nationwide.''
    The PASS ID Act requires the presentation of the same 
documentation to State DMVs as required under REAL ID. Where 
there are existing functional databases, such as the federal 
databases for verifying immigration status and social security 
numbers, as discussed above, States will be required to use 
them.
    However, where there is no practical way to verify 
documents, the verification requirement is substituted for a 
validation requirement. This means that a person with 
fraudulent document training must examine the document to 
determine its authenticity, as the State Department does with 
birth certificates when it issues passports.
    As introduced, PASS ID would have required the validation, 
rather than verification, of birth certificates, because the 
EVVE system is not fully populated with data and is operational 
only in three States' DMVs. At the 2009 HSGAC hearing, former 
Homeland Security Assistant Secretary Stewart Baker raised 
concerns over the exclusion of electronic verification 
requirements for birth certificates in the PASS ID Act.\23\ 
Subsequently, the Committee addressed this concern as part of a 
Lieberman-Collins-Voinovich substitute amendment, which 
included provisions to phase in the use of the birth 
certificate verification database. As amended, PASS ID would 
require that birth certificate information be electronically 
verified through the EVVE system no later than 6 years after 
the date of enactment, provided that the Secretary of Homeland 
Security has certified that the EVVE system is functioning and 
has access to all States' electronic birth records. This 
provision will remove REAL ID's impractical requirement of 
using a system that has not yet been implemented nationwide and 
will enhance security by ensuring that States eventually use 
the system. Once the Secretary has certified that EVVE has been 
sufficiently developed, States would be required to utilize the 
system for any individual that has applied for a compliant 
driver's license or identification card and has not previously 
had his or her birth certificate verified. Additionally, to 
address concerns with the costs of fully implementing EVVE, the 
substitute amendment establishes a grant program for States to 
digitize birth information, link that data to death records, 
and electronically verify birth certificate information. The 
bill also requires that any State accepting these grants 
certify that all birth records in that State will be digitized 
and accurate within three years of receiving the grant.
---------------------------------------------------------------------------
    \23\Baker Testimony, p. 4.
---------------------------------------------------------------------------
    The PASS ID Act would also codify the established pilot 
program for State-to-State driver's license information sharing 
with the goal of evaluating the feasibility of such an 
electronic system, its costs, and the necessary governance 
structure to ensure security and privacy. This would help 
States develop and evaluate a mechanism for sharing electronic 
information to verify the existence of a single compliant 
driver's license or identification card in which States could 
choose to participate. The Committee encourages States to 
participate in this program and work collaboratively with DHS 
to expand inter-State DMV information sharing capabilities.

             CHARGES FOR USE OF EXISTING FEDERAL DATABASES

    Under the REAL ID Act, States must use the Systematic Alien 
Verification for Entitlements (SAVE) database from DHS to 
verify immigration status and the Social Security Online 
Verification (SSOLV) database from the Social Security 
Administration to verify Social Security numbers. Currently, 
States must pay transactional fees in order to use these 
databases, which DHS estimates will cost States $56.8 million 
over 11 years.\24\
---------------------------------------------------------------------------
    \24\E-mail from Legislative Affairs, DHS, to Majority Staff, 
Committee on Homeland Security and Governmental Affairs (November 18, 
2009).
---------------------------------------------------------------------------
    The Committee has determined that the use of these 
databases is a necessary component of identification security. 
However, the Federal government, rather than States, should 
fund the use of these federal databases to comply with a 
federal law. Therefore, the PASS ID Act specifies that States 
shall not be charged transaction fees for the use of federal 
electronic systems to implement this Act. Congress will need to 
appropriate additional resources in the future in order to fund 
the use of these databases by every State.

         INFORMATION STORAGE AND PHYSICAL SECURITY REQUIREMENTS

    Additional areas of high cost under REAL ID are the 
requirements to electronically store copies of applicants' 
identity documents and to ensure the physical security of DMV 
facilities. The requirement to electronically store information 
requires investments in both storage capacity and the 
modification of information technology systems. The physical 
security requirements have posed challenges for States, in part 
due to the late release of more specific information and 
guidance from DHS. Although REAL ID was enacted in 2005 and DHS 
issued its final rule in January 2008, DHS did not release the 
guidelines for physical security requirements until February 
2009, giving States little time to assess the vulnerabilities 
of their facilities and to determine the best means of 
enhancing security where necessary. Some States have determined 
that it would be cost-prohibitive to meet security requirements 
at all facilities and are considering changing their operations 
into a central issuance system that requires significant 
process, facility, and staff adjustments.
    To address these concerns, PASS ID modifies the requirement 
for storage of documents used to prove identity. First, the 
State need only keep them for the period for which the driver's 
license or identification card is valid, rather than a period 
of seven to ten years, as REAL ID requires. PASS ID would also 
allow DMVs to store such information in either electronic or 
paper format, as opposed REAL ID's requirement to keep them in 
both formats. With respect to physical security requirements, 
PASS ID would retain many of the requirements of REAL ID to 
better secure facilities where driver's licenses and 
identification cards are stored or issued but makes clear that 
States can choose from a variety of safeguards to achieve this 
goal.

                      PRIVACY AND CIVIL LIBERTIES

    The CATO Institute, the American Civil Liberties Union, and 
the Center for Democracy and Technology (CDT), as well as NGA 
and NCSL, testified before the OGM subcommittee that the REAL 
ID Act posed serious privacy and civil liberties concerns.
    According to testimony from CDT at the July 15, 2009 
hearing, the REAL ID Act failed to address privacy concerns 
surrounding secure licensing. CDT contends that the Act and 
DHS's final rule implementing it created new privacy and 
security risks while exacerbating old ones.\25\ The REAL ID Act 
failed to include statutory provisions to protect the privacy 
of individuals' personally identifiable information. The 
American Civil Liberties Union's testimony at the 2007 hearing 
pointed to four main privacy issues: data on the face of the 
cards, data stored in the machine-readable zone of the card, 
data stored in interlinked State Department of Motor Vehicles 
(DMV) databases, and the transmission of data.\26\ 
Additionally, privacy advocates feared that REAL ID would lead 
to a de facto national ID card because of the network of 
interlinked databases and the authority for the Secretary of 
Homeland Security to declare new official purposes for which a 
compliant card would be needed.
---------------------------------------------------------------------------
    \25\Statement of Ari Schwartz, Vice President and Chief Operating 
Officer, Center for Democracy and Technology before Senate Committee on 
Homeland Security and Governmental Affairs, July 15, 2009 (hereafter 
``Schwartz Testimony''), at p. 2.
    \26\Senate Homeland Security and Governmental Affairs Subcommittee 
on Oversight of Government Management, the Federal Workforce, and the 
District of Columbia Hearing on Understanding the Realities of REAL ID: 
A Review of Efforts to Secure Driver's Licenses and Identification 
Cards (S. Hrg. 110-291), p. 75, March 26, 2007.
---------------------------------------------------------------------------
    In addition, the REAL ID Act does not contain processes and 
mechanisms to give individuals the ability to access, and amend 
as necessary, information about them stored in Federal or State 
databases.
    The Department of Homeland Security maintained that because 
it was not explicitly authorized to protect privacy in the REAL 
ID Act, it did not have the legal authority to include such 
protections in the regulations.
    The PASS ID Act contains several important privacy 
protections aimed at mitigating most of the concerns expressed 
by privacy advocates. The PASS ID Act would require future 
regulations to include procedures to protect the constitutional 
rights and civil liberties of those who apply for licenses or 
identification cards, protect individuals' ability to challenge 
and correct errors in databases and data records, and would 
prohibit a national, universal design or numbering scheme for 
licenses. In addition, the definition of ``official purpose'', 
which designates which federal purposes will require a 
compliant license or identification card, would be limited to 
the purposes defined in statute and so could not be expanded 
without congressional action.

Information on the face of the card

    The REAL ID Act requires people to list their principal 
place of residence on their driver's licenses and 
identification cards. This has been a source of substantial 
concern for victims of domestic violence and others, who fear 
that making their address so readily available could put them 
in danger.\27\ The 2006 reauthorization of the Violence Against 
Women Act\28\ required that there be exceptions to this REAL ID 
Act mandate for the principal residence requirement for certain 
individuals in these categories, and these exceptions were 
incorporated into the REAL ID regulations.
---------------------------------------------------------------------------
    \27\Senate Homeland Security and Governmental Affairs Subcommittee 
on Oversight of Government Management, the Federal Workforce, and the 
District of Columbia Hearing on Understanding the Realities of REAL ID: 
A Review of Efforts to Secure Drivers' Licenses and Identification 
Cards (S. Hrg. 110-291), p. 81, March 26, 2007.
    \28\Violence Against Women & Department of Justice Reauthorization 
Act of 2005, Pub. L. No. 109-162, Sec. 827, 119 Stat. 2960, 3066 
(2005).
---------------------------------------------------------------------------
    The PASS ID Act generally would maintain the requirement to 
include the address of principle residence, but it explicitly 
incorporates the Violence Against Women Act exemption, and 
further provides that States can except the principle address 
for an individual whom a State has determined merits the 
exemption for his or her safety.
    The REAL ID Act also requires that temporary driver's 
licenses or identification cards be conspicuously marked, 
indicating that they are temporary, and non-compliant licenses 
are required to clearly state on their face that they may not 
be accepted by a federal agency for identification or any other 
official purpose. States argue that the requirement in the REAL 
ID Act regulations to label compliant licenses and 
identification cards as well as non-compliant cards creates a 
duplicative and unnecessarily costly system that does not 
contribute to security.
    The PASS ID Act would remove the duplicative requirement 
that a driver's license or identification card have a separate 
marking indicating that a license is temporary, and instead 
denotes temporary status with the expiration date. The bill 
requires that States mark compliant documents, instead of non-
compliant documents. Removing duplicative information will make 
the information on licenses more useful and easy to read.
    The bill also requires a photograph of the license holder 
on the face of the card. The Committee intends for this 
photograph to be a clear view of the entire face. The Committee 
recommends that DHS use the State Department passport 
photograph regulations as guidance. The State Department 
regulations are designed to conform to International Civil 
Aviation Organization (ICAO) photo standards and allow for 
certain religious exemptions. For example, religious headgear 
is acceptable as long as the face is not obscured.

Machine-readable zone of the card

    The REAL ID Act requires that driver's licenses and 
identification cards include a common, machine-readable 
component. The final implementing regulations for REAL ID 
specify that compliant licenses should contain a two-
dimensional barcode standard, which is read with the use of an 
optical scanner. There are currently no statutory prohibitions 
on who may access the data and information contained within 
machine-readable zones of driver's license and identification 
cards, or how that information may be used. This creates a 
vulnerability through which third-parties could scan and 
utilize personal information without the consent of the card 
holder, creating privacy and identity theft concerns.
    PASS ID adds new protections to mitigate privacy and 
identity theft risks associated with the inclusion of machine-
readable zones on driver's licenses and identification cards. 
The PASS ID Act would prohibit the inclusion of a social 
security number on the machine readable zone of a license. In 
addition, the bill would restrict the use of machine-readable 
information on a driver's license or identification card by 
third-parties. To clarify the scope of this prohibition, the 
substitute amendment adopted by the Committee clarifies that 
scanning is permitted when an individual has given his or her 
express consent,\29\ for law enforcement purposes, for consumer 
fraud prevention, and for certain financial transactions, such 
as credit checks. The amendment directs the Federal Trade 
Commission to issue rules for implementing these restrictions, 
which would apply to all driver's licenses and identification 
cards.
---------------------------------------------------------------------------
    \29\``Express consent'' is defined in 18 U.S.C. 2725 to mean 
``consent in writing, including consent conveyed electronically that 
bears an electronic signature as defined in section 106(5) of Public 
Law 106-229.'' The Committee notes that that definition would apply to 
this provision of law as well.
---------------------------------------------------------------------------
    The Committee recognizes that there are a number of 
legitimate purposes for which the information contained in the 
machine readable component of a driver's license or 
identification card may be scanned and utilized. Such purposes 
may include, but are not limited to, scanning and providing 
information to banks for credit checks and credit card issuance 
purposes; scanning and using information for law enforcement 
purposes; scanning and using information to prevent consumer 
fraud and identity theft; and scanning and sharing the 
information among federal, State, or local agencies. The 
Committee does not intend to prohibit any such legitimate uses, 
and the Chairman stated his intent at the July 29 business 
meeting to continue to work on this language and amend it on 
the floor to be more permissive.
    PASS ID also strengthens privacy protections more generally 
by requiring procedures to prevent the unauthorized access to, 
or sharing of, information; requiring public notice of privacy 
policies; and establishing a redress process for individuals to 
correct their records. New regulations would require procedures 
to protect the constitutional rights and civil liberties of 
those who apply for licenses or IDs, and provide individuals 
with the ability to challenge and correct errors in databases 
and data records.

Electronic data transmission

    The REAL ID Act calls for DMVs to communicate with several 
Federal databases, all other State databases, and would most 
likely result in States consulting the EVVE database that the 
National Association of Public Health Statistics and 
Information Systems maintains. However, the REAL ID Act does 
not require protection of the electronic communication among 
these systems and networks, which could leave personally 
identifiable information open to theft or fraud.
    These required databases reside at different agencies, non-
governmental entities, and State and local governments. These 
systems may already provide some protection for transmitting 
data, but in cases where data were not previously shared, there 
may be no protection or encryption.
    The PASS ID Act would require that future regulations 
include procedures to protect any personally identifiable 
information electronically transmitted in support of complying 
with the PASS ID Act. While groups such as the ACLU\30\ and the 
Center for Democracy and Technology\31\ have specifically 
called for encryption as the solution, the PASS ID Act stays 
technology-neutral in its statutory language. This will allow 
an open rulemaking process to produce the best processes to 
ensure the protection of personally identifiable information.
---------------------------------------------------------------------------
    \30\Senate Homeland Security and Governmental Affairs Subcommittee 
on Oversight of Government Management, the Federal Workforce, and the 
District of Columbia Hearing on Understanding the Realities of REAL ID: 
A Review of Efforts to Secure Drivers' Licenses and Identification 
Cards (S. Hrg. 110-291), p. 84, March 26, 2007.
    \31\Schwartz Testimony, p. 4.
---------------------------------------------------------------------------

Access to air travel and other official purposes

    To date, fifteen States have enacted laws prohibiting 
compliance with REAL ID, and several others have anti-REAL ID 
legislation pending. Unless these States repeal their laws, 
their residents will face restrictions on their movements and 
actions because they won't have the necessary identification to 
present when seeking, for example, to board a plane or enter a 
federal building. These restrictions will be exacerbated by the 
fact that many businesses share facilities with federal 
agencies; and according to testimony from the Chamber of 
Commerce at the 2008 hearing, the guidance for identification 
at such facilities was complicated and confusing.\32\
---------------------------------------------------------------------------
    \32\Senate Homeland Security and Governmental Affairs Subcommittee 
on Oversight of Government Management, the Federal Workforce, and the 
District of Columbia Hearing on The Impact of Implementation: A Review 
of the REAL ID Act and the Western Hemisphere Travel Initiative (S. 
Hrg. 110-555), p. 53, April 29, 2008.
---------------------------------------------------------------------------
    To address concerns with the breadth of REAL ID's official 
purpose section, while meeting the homeland security 
objectives, PASS ID would require compliant identification for 
air travel, access to nuclear facilities, and Federal 
facilities that contain mission functions critical to homeland 
security, national security, or defense, such as the Pentagon, 
fusion centers, or classified laboratories.
    In addition, the PASS ID Act includes language to clarify 
the Secretary of Homeland Security's unreviewable discretion to 
determine who may or may not board a commercial aircraft. This 
does not change the Secretary's current authorities under the 
REAL ID Act, but rather was included to allay concerns 
expressed that the REAL ID Act was unclear on this point. Since 
its inception, the Transportation Security Administration 
(TSA), an agency under the Secretary's purview, has always had 
the statutory authority to set screening procedures for cargo 
and people boarding commercial aircraft. While the REAL ID Act 
set standards for what type of State issued identification 
documents TSA can rely upon in its screening process, it did 
not rescind TSA's authority to rely on other types of 
identification documents or use other methods to ascertain 
identity. During the July 15, 2009, hearing on the PASS ID Act, 
Secretary Napolitano testified that inclusion of language 
clarifying TSA's authority in this regard would not change 
TSA's current operating procedure.\33\
---------------------------------------------------------------------------
    \33\Senate Homeland Security and Governmental Affairs Committee 
Hearing on Identification Security: Reevaluating the REAL ID Act, July 
15, 2009.
---------------------------------------------------------------------------
    PASS ID, as introduced, provided that ``no person shall be 
denied boarding a commercial aircraft solely on the basis of 
failure to present a driver's license or identification card 
issued pursuant to this subtitle.'' At the July 2009 hearing, 
former DHS Assistant Secretary Stewart Baker testified that the 
wording of this provision may lead to litigation by those 
denied boarding an aircraft because they did not have a 
compliant license, since the language was ambiguous on what is 
meant by ``solely.''\34\ To address this concern, Senator 
Voinovich offered an amendment clarifying the intent to codify 
the TSA's existing authority. That amendment, adopted by the 
Committee, provides: ``Any person not presenting a driver's 
license or identification card issued pursuant to this subtitle 
may be permitted to board a commercial aircraft or denied 
permission to board such aircraft at the unreviewable 
discretion of the Secretary or his or her designated security 
official.''
---------------------------------------------------------------------------
    \34\Baker Testimony, p. 5-6.
---------------------------------------------------------------------------

                        III. Legislative History

    On June 15, 2009, S. 1261 was introduced by Senator Akaka 
and was referred to the Committee on Homeland Security and 
Governmental Affairs. Senators Alexander, Baucus, Burris, 
Carper, Leahy, Lieberman, Voinovich, and Tester are cosponsors 
of the legislation.
    On July 15, 2009, the Committee held a hearing on S. 1261. 
Witnesses included: Janet Napolitano, Secretary of Homeland 
Security; Jim Douglas, Governor of Vermont; Stewart A. Baker, 
former Assistant Secretary for Policy, DHS; Leroy D. Baca, 
Sheriff, Los Angeles County; David Quam, Director of Federal 
Relations, NGA; and Ari Schwartz, Vice President and Chief 
Operating Officer, Center for Democracy and Technology.
    On July 29, 2009, the Committee ordered S. 1261, as amended 
by the Lieberman-Collins-Voinovich substitute amendment, the 
Tester amendment, and the Voinovich amendment, reported 
favorably by voice vote. Present for the vote were Chairman 
Lieberman; Senators Akaka, Carper, Pryor, McCaskill, Tester, 
and Burris; Ranking Minority Member Collins; Senator Voinovich.
    The Lieberman-Collins-Voinovich substitute amendment makes 
a number of policy changes as well as technical changes to the 
bill as introduced.
    First, the amendment requires that birth records be 
verified with the issuing agency no later than 6 years after 
the issuance of final regulations, provided that the Secretary 
of Homeland Security has certified that an electronic system 
enabling such verification is functioning and has access to all 
States' electronic birth records. It also establishes a grant 
program to help States digitize birth and death records and 
authorizes $150 million for the grants.
    Second, it struck section 242(a)(1)(B), which stated that 
an individual may not be denied the right to board an airplane 
solely on the basis of not presenting a PASS ID compliant 
license.
    Third, the amendment modifies Section 4 of S. 1261 to 
direct the Federal Trade Commission to issue rules for the 
exceptions to the prohibition on certain uses of the data on 
the machine-readable component of a driver's license or 
identification card.
    Fourth, the amendment authorizes DHS to issue an interim 
final rule implementing PASS ID, instead of repeating the 
Notice of Proposed Rulemaking (NPRM) process that was already 
executed for the REAL ID Act.
    As discussed in the previous section, the Voinovich 
amendment clarifies the Secretary's unreviewable discretion to 
deny or grant an individual boarding on a commercial aircraft.
    The Tester amendment adds a provision requiring reporting 
on the privacy impacts of the PASS ID Act.

                    IV. Section-by-Section Analysis

Section 1. Short title

    This section establishes the title of the act as the 
``Providing for Additional Security in States' Identification 
Act of 2009'' or the ``PASS ID Act.''

Section 2. Repeal

    This section repeals Title II of the REAL ID Act of 2005 
(Division B of Public Law 109-13).

Section 3. Identification security

    This section amends Title II of the Homeland Security Act 
of 2002 (6 U.S.C. 121 et seq.) by adding a new subtitle E, 
which improves security for driver's licenses and personal 
identification cards.
    Section 241 of the new subtitle E would define the terms 
``driver's license,'' ``identification card,'' ``materially 
compliant,'' ``official purpose,'' ``Secretary,'' and 
``State.''
    Subsection 242(a) of the new subtitle E sets the minimum 
standards for an identification document that is to be used for 
certain official purposes, including boarding commercial 
aircraft and entering certain secure federal facilities. 
Beginning one year after the interim final rule is issued, a 
federal agency could not accept, as a means of identification 
for an official purpose, any driver's license or State-issued 
identification card unless the State is materially compliant by 
certifying to the Secretary that the State has commenced 
issuing driver's licenses and identification cards that comply 
with the requirements of the PASS ID Act. Beginning six years 
after enactment, a federal agency could not accept, as a means 
of identification for an official purpose, any driver's license 
or State-issued identification card that is not compliant. 
Additionally, this section provides that the Secretary of 
Homeland Security shall prescribe a process to certify whether 
States are meeting the standards for identification security. 
This section would clarify that any identification document 
meeting the requirements of subtitle E could be certified as 
compliant with the subtitle.
    Subsection 242(b) of the new subtitle E sets the minimum 
requirements for the contents of a compliant driver's license 
or identification card, including: (1) the person's legal name; 
(2) the person's date of birth; (3) the person's gender; (4) a 
driver's license or identification card number; (5) a digital 
photograph of the person; (6) a person's address, except as 
excepted by the Violence Against Women Act or for those whom a 
State determines should be excepted for safety reasons; (7) the 
person's signature; (8) security features to protect the 
physical integrity of the document; (9) a common machine-
readable technology; and (10) a unique symbol designating that 
the document is compliant with the requirements of this 
subtitle.
    Subsection 242(c) of the new subtitle E sets the minimum 
standards for a State to issue a compliant driver's license or 
identification card. In order to obtain a compliant document, 
an individual must present a photo identity document, except 
that a non-photo document is acceptable if it includes both the 
person's full name and date of birth; proof of date of birth; 
proof of the person's social security number; documentation 
showing a person's address of principle residence; and evidence 
that a person is a citizen of, or has lawful status in, the 
United States. This section requires that licenses may only be 
issued temporarily to individuals who are not citizens, lawful 
permanent residents, or certain asylees or refugees. Temporary 
driver's licenses and identification documents would be 
required to clearly show an expiration date and would be valid 
only for an individual's authorized period of admission to the 
United States or for one year, if no such date exists. States 
would be required to use the automated system known as 
Systematic Alien Verification for Entitlements to verify the 
lawful presence of any person other than a United States 
citizen or national applying for compliant identification.
    Subsection 242(d) of the new subtitle E requires States to 
adopt several practices in issuing licenses, including: (1) 
physical or electronic retention of source documents; (2) a 
facial image capture to create a digital photograph; (3) an 
effective procedure to confirm or verify renewal information; 
(4) confirmation of social security account numbers; (5) 
electronic verification of birth records after certification 
that such electronic systems exist after six years; (6) 
confirmation that an applicant does not possess or has 
surrendered any other identification compliant with this 
subtitle; (7) physical security of document manufacturing; (8) 
protecting the personally identifiable information of driver's 
license and identification card holders and access to amend 
State information as determined appropriate by the State; (9) 
appropriate background checks of individuals involved in 
issuance of driver's licenses and State-issued identification 
cards; (10) fraudulent document recognition training for 
issuing staff; and (11) limiting the validity of any compliant 
driver's license or identification card to eight years.
    Subsection 242(e) of the new subtitle E requires that the 
Secretary assess, at least annually, whether an electronic 
system to allow reliable real-time verification of birth 
records exists, is adequately deployed, and includes necessary 
security and privacy measures.
    Subsection 242(f) of the new subtitle E requires that 
States adopt an exceptions process for documentation presented 
pursuant to section (c) that applicants may not have due to 
reasons beyond their control, including loss through natural 
disasters. Alternative documents may not be used to demonstrate 
lawful presence unless such documents establish that the 
applicant is a citizen or national of the United States.
    Subsection 242(g) of the new subtitle E provides that 
States may not be required to pay fees for the use of a federal 
system or database in connection with fulfilling the 
requirements to issue a compliant driver's license or 
identification card.
    Subsection 242(h) of the new subtitle E clarifies that 
States are not prohibited from issuing driver's licenses, 
identification cards, or other documents that are not in 
compliance with the requirements of this subtitle, although 
federal agencies may not accept non-compliant documents for an 
official purpose.
    Section 243 of the new subtitle E requires that the 
Secretary of Homeland Security keep a record in the appropriate 
aviation security screening database of any individual 
convicted of using a false driver's license or State-issued 
identification card at an airport.
    Subsection 244(a) of the new subtitle E establishes a grant 
program to assist States in conforming to the minimum standards 
of this subtitle. At least two-thirds of yearly grants made 
available through appropriated funds would be distributed 
proportionally to the States based on the number of driver's 
licenses or identification cards issued in the prior year. The 
remaining third would be allocated by the Secretary of Homeland 
Security at his or her discretion. Each State would be 
guaranteed at least 0.35 percent of the total allocation, 
except certain U.S. territories would be guaranteed at least 
0.08 percent of the total allocation.
    Subsection 244(b) of the new subtitle E establishes a grant 
program to assist States in digitizing birth records, linking 
birth records with death records, and electronically verifying 
birth records. Such grants would be distributed through the 
Federal Emergency Management Agency in coordination with the 
Secretary of Health and Human Services.
    Section 245 of the new subtitle E codifies a demonstration 
project, which is currently underway with the support of the 
Department of Homeland Security, to evaluate the feasibility of 
a State or States establishing a system to assist in 
determining whether an applicant already possesses a driver's 
license or identification card issued pursuant to the 
requirements of subsection 242(d). This section requires that 
the demonstration project include: a review of the costs of 
such a system; the security and privacy measures necessary to 
protect the integrity and physical security of licenses; and a 
governance structure for managing such a system, which would 
also protect the security and confidentiality of personally 
identifiable information contained in the system. This section 
does not authorize the creation by the federal government of a 
national database of driver's license information or require 
States to provide all other States with direct access to their 
motor vehicle databases.
    Section 246 of the new subtitle E gives the Secretary of 
Homeland Security, in consultation with the Secretary of 
Transportation and the States, the authority to issue 
regulations, set standards, and issue grants under this 
subtitle. This section also permits the Secretary of Homeland 
Security to grant a State an extension of time to comply with 
the requirements if the State provides adequate justification.
    Section 247 of the new subtitle E would clarify that 
nothing in this subtitle be construed to affect the authority 
of States or the Secretary of Transportation under chapter 303 
of title 49, United States Code. That chapter directs the 
Secretary of Transportation to establish a National Drivers' 
Registry to track individuals ineligible for a driver's 
license. In addition, this section would make clear that no 
State laws that are both consistent with this subtitle or rules 
issued to implement this subtitle and more protective of 
personal privacy than required by this subtitle or by 
regulations issued to implement this subtitle, would be 
preempted by this subtitle.

Section 4. Identification security

    This section amends Chapter 123 of title 18, United States 
Code by adding subsection 2272(c), which includes new 
prohibitions on the use of machine readable information stored 
on driver's licenses or State-issued identification cards.
    The new subsection 2272(c) would allow the scanning or 
reading of information contained in the machine-readable zone 
of a driver's license or State-issued identification card. Such 
information would be prohibited from being resold, shared, or 
traded with third parties, used to track the use of a driver's 
license or identification card, or stored by creating a record. 
Within two years, the Federal Trade Commission must issue 
regulations to define exceptions to those prohibitions through 
a collection of acceptable uses. At a minimum, such exceptions 
would include using the information for credit checks, for law 
enforcement purposes, for prevention of consumer fraud, in 
support of privacy laws, or for a use for which the driver's 
license or identification card holder has given their express 
written consent.

Section 5. Rulemaking

    This section requires DHS to promulgate interim final rules 
to implement the PASS ID Act within nine months of the law's 
enactment.
    The interim final regulations, as well as the final 
regulations, must include procedures and requirements to 
protect the privacy rights, constitutional rights, and civil 
liberties of individuals who apply for and hold compliant 
driver's licenses or identification cards. The regulations 
would also require procedures to protect any electronically 
transmitted personally identifiable information, both inside 
the federal government and among the States. In addition, a 
process must be established to allow individuals to access, 
amend, and correct their own personally identifiable 
information contained in federal databases used to comply with 
this Act. Some federal systems already have such procedures in 
place in accordance with the Privacy Act and will not be 
required to create new procedures. The regulations may not 
require that States use a common numbering or design standard 
for driver's licenses and identification cards. The regulations 
will apply only to driver's licenses and identification cards 
that are issued in compliance with the PASS ID Act and not to 
non-compliant documents or other identification documents 
issued by States.

Section 6. Savings provision

    This section includes a savings of certain administrative 
actions, such as personnel actions, agreements, grants, and 
contracts, carried out under the REAL ID Act. It also clarifies 
that laws that were amended or repealed by title II of the REAL 
ID Act of 2005 would be left unchanged by S. 1261.

Section 7. Annual privacy report

    This section requires the DHS Chief Privacy Officer and the 
Civil Rights and Civil Liberties Officer to issue an annual 
report analyzing privacy implications of implementation of this 
Act to the Senate Homeland Security and Governmental Affairs 
Committee and the House Homeland Security Committee.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirement of paragraph 11(b)(1) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill.

             VI. Congressional Budget Office Cost Estimate

                                                  October 15, 2009.
Hon. Joseph I. Lieberman,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1261, the Providing 
for Additional Security in States' Identification Act of 2009.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 1261--Providing for Additional Security in States' Identification 
        Act of 2009

    Summary: S. 1261 would repeal title II of the REAL ID Act 
of 2005 (Division B of Public Law 109-13) and place new 
requirements on states to improve the security of driver's 
licenses and identification cards. The legislation would 
authorize the appropriation of whatever sums are necessary for 
fiscal years 2010 through 2015 for the Department of Homeland 
Security (DHS) to make grants to states to help them comply 
with the bill's requirements. The bill also would authorize the 
appropriation of $150 million over the 2011-2013 period for DHS 
to make grants to states to ensure the accuracy of birth 
records. In addition, S. 1261 would direct DHS to establish a 
demonstration project relating to the security and integrity of 
driver's licenses.
    S. 1261 also would waive the fees that states currently pay 
to access certain DHS and Social Security Administration (SSA) 
databases to check the eligibility of applicants for driver's 
licenses and identification cards. The bill would establish new 
federal crimes relating to the misuse of data on driver's 
licenses and identification cards.
    CBO estimates that implementing S. 1261 would increase 
discretionary costs by $123 million over the 2010-2014 period, 
assuming appropriation of the necessary amounts. We estimate 
that enacting the bill would increase direct spending by $4 
million over both the 2010-2014 and 2010-2019 periods. Enacting 
S. 1261 would have no significant effect on revenues.
    S. 1261 contains intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA) because it would 
require states to have security and privacy policies for 
personally identifiable information that they collect. Many 
states currently have similar policies. CBO estimates that the 
cost of creating or updating such policies to comply with the 
new requirements would be small and well below the threshold 
established in UMRA for intergovernmental mandates ($69 million 
in 2009, adjusted annually for inflation).
    S. 1261 would impose a private-sector mandate as defined in 
UMRA by prohibiting persons from scanning and storing certain 
information contained on a driver's license or identification 
card. CBO estimates that the cost of complying with the mandate 
would fall below the annual threshold for private-sector 
mandates ($139 million in 2009, adjusted annually for 
inflation).
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of S. 1261 is shown in the following table. 
The costs of this legislation fall within budget function 750 
(administration of justice).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year in millions of dollars--
                                                         -------------------------------------------------------
                                                            2010     2011     2012     2013     2014   2010-2014
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

DHS Grants to States for Birth Records
    Authorization Level.................................        0      150        0        0        0       150
    Estimated Outlays...................................        0        6       23       39       30        98
DHS Demonstration Project
    Estimated Authorization Level.......................       25        0        0        0        0        25
    Estimated Outlays...................................       15        5        5        0        0        25
    Total Changes
        Estimated Authorization Level...................       25      150        0        0        0       175
        Estimated Outlays...............................       15       11       28       39       30       123

                                           CHANGES IN DIRECT SPENDING

Waiver of DHS Fees:
    Estimated Authorization Level.......................        2        2        0        0        0         4
    Estimated Outlays...................................        2        2        0        0        0        4
----------------------------------------------------------------------------------------------------------------
Note: DHS = Department of Homeland Security.

    Basis of Estimate: For this estimate, CBO assumes that S. 
1261 will be enacted near the beginning of fiscal year 2010. We 
estimate that implementing the bill would increase 
discretionary spending by $123 million over the 2010-2014 
period, assuming appropriation of the necessary amounts. We 
estimate that enacting the bill would increase direct spending 
by $4 million over both the 2010-2014 and 2010-2019 periods. 
Enacting S. 1261 would have no significant effect on revenues.

Spending subject to appropriation

    DHS Grants for Birth Records. S. 1261 would authorize the 
appropriation of $150 million over the 2011-2013 period for DHS 
to make grants to states to ensure the accuracy of birth 
records. CBO assumes that $150 million will be appropriated by 
the beginning of fiscal year 2011 and that outlays will follow 
the historical spending patterns for similar activities.
    DHS Demonstration Project. The bill would authorize the 
appropriation of whatever sums are necessary for fiscal years 
2010 through 2012 for a demonstration project to evaluate an 
electronic system for verifying that applicants for driver's 
licenses or identification cards do not already possess such 
documents. The Congress appropriated $50 million in fiscal year 
2009 for DHS to begin this project. Based on information from 
DHS, CBO estimates that the department would need $25 million 
in 2010 to complete the demonstration project and that these 
funds would be spent by the end of fiscal year 2012.
    Grants to Assist States in Complying with Bill's 
Requirements. Title II of the Real ID Act of 2005 (Division B 
of Public Law 109-13, the Emergency Supplemental Appropriations 
Act for Defense, the Global War on Terror, and Tsunami Relief, 
2005) placed requirements on states to improve the security of 
driver's licenses and identification cards by May of 2008. 
Since enactment, nearly half the states have passed laws or 
resolutions opposing the act, and DHS has delayed the deadline. 
(Currently, states must achieve partial compliance with the 
provisions of the REAL ID Act by December 31, 2009, and full 
compliance by May of 2011.) CBO has no basis for estimating the 
number of states that will comply with the REAL ID Act, so we 
cannot compare the compliance costs of S. 1261 with those under 
current law.
    The REAL ID Act authorized the appropriation of whatever 
sums are necessary for fiscal years 2005 through 2009 for DHS 
to make grants to states to assist them in complying with the 
act's provisions. Over the 2006-2009 period, the Congress 
appropriated about $140 million for this purpose. However, the 
Administration's estimate of the total costs to states to 
comply with the act exceeded $1 billion. As noted above, it is 
possible that many states will not comply with the act's 
provisions, so federal costs to help states implement the REAL 
ID Act are uncertain.
    S. 1261 would authorize the appropriation of whatever sums 
are necessary over the 2010-2015 period for DHS to make grants 
to states to help them comply with the bill's provisions. The 
legislation would repeal title II of the REAL ID Act of 2005, 
but the bill contains new provisions that would require states 
to improve the security of driver's licenses and identification 
cards. Compared to current law, S. 1261 would provide more 
flexibility to states in adopting methods to verify 
identification documents provided by driver's license 
applicants.
    If all states choose to comply with the provisions of the 
REAL ID Act, CBO expects that the compliance costs of S. 1261 
would be less expensive than those under current law because of 
the greater flexibility provided by the bill. Because we do not 
know how many states will eventually comply with the REAL ID 
Act, however, we have no basis for estimating the costs or 
savings of S. 1261 relative to current law.
    SSA. Under current law, states reimburse the Social 
Security Administration (SSA) for state motor-vehicle agencies' 
use of the Social Security Online Verification (SSOLV) system. 
In recent years, states have conducted roughly 20 million SSOLV 
queries annually. At an average cost of around 1 cent per 
transaction, states have paid SSA approximately $200,000 to 
$250,000 per year. S. 1261 would waive those fees, and CBO 
estimates that SSA's fee collections would decrease, thus 
increasing net spending subject to appropriation by less than 
$500,000 annually over the 2010-2014 period.

Direct spending and revenues

    S. 1261 would waive the fees that states currently pay to 
access certain DHS databases to check the eligibility of 
applicants for driver's licenses and identification cards. CBO 
estimates that this provision would decrease fee collections--
and thus increase direct spending--by about $2 million annually 
over the 2010-2011 period.
    DHS Fees. About half of the states use DHS's Systematic 
Alien Verification for Entitlements (SAVE) program for checking 
the immigration status of applicants for driver's licenses and 
identification cards. The department collected about $1 million 
in fees in 2009 from those states. In 2010 and subsequent 
years, however, we expect greater collections as more 
jurisdictions use the SAVE program. Based on information from 
the department, CBO estimates that enacting S. 1261 would 
decrease fee collections by roughly $2 million annually over 
the 2010-2011 period.
    DHS periodically reviews its fees for providing certain 
services and sets fees sufficient to ensure the recovery of the 
full costs of providing all such services, including the costs 
of services provided without charge to certain applicants. DHS 
is now completing a fee review; CBO assumes that this fee 
adjustment would be unaffected by S. 1261 and that DHS would 
raise fees as necessary sometime in 2011 to offset the 
additional costs resulting from enactment of S. 1261. In that 
case, the bill would have no significant net effect on DHS 
spending after fiscal year 2011.
    Other Provisions. In addition, S. 1261 could increase 
collections of criminal fines for violations of the bill's 
provisions relating to the misuse of data on driver's licenses 
and identification cards. Criminal fines are recorded as 
revenues, deposited in the Crime Victims Fund, and subsequently 
spent without further appropriation. CBO estimates that any 
increases in revenues and direct spending would not be 
significant in any year.
    Estimated impact on state, local, and tribal governments: 
S. 1261 contains intergovernmental mandates as defined in UMRA. 
The bill would require states to issue public notices about 
their security and privacy policies that include information 
about how personally identifiable information is used, stored, 
accessed, and shared. The bill also would require states to 
have a process that would allow individuals to access, amend, 
and correct their information. Information from groups 
representing state governments indicates that most states 
currently have such policies and procedures, though some may 
need to be revised. Therefore, CBO estimates that the cost to 
states of those requirements would be well below the threshold 
established in UMRA for intergovernmental mandates ($69 million 
in 2009, adjusted annually for inflation).
    Other provisions of the bill would benefit state, local, 
and tribal governments. The bill would repeal the requirements 
of the REAL ID Act and replace them with more flexible 
requirements for issuing compliant driver's licenses and 
identification cards. The bill also would authorize 
appropriations that could be used to pay for those 
requirements, and it would prohibit the federal government from 
charging fees to states to access the SAVE and SSOLV data 
systems.
    Estimated impact on the private sector: S. 1261 would 
impose a private-sector mandate as defined in UMRA by 
prohibiting persons from scanning the information contained in 
the machine-readable component of a driver's license or 
identification card and storing, reselling, sharing, or trading 
that information. The bill also would prohibit tracking the use 
of a driver's license or identification card. According to the 
FTC and industry sources, few private entities currently scan 
driver's licenses, and for those that do, the costs of changing 
that practice would be minimal. Therefore, CBO expects that the 
cost of complying with the mandate would fall below the annual 
threshold established in UMRA for private-sector mandates ($139 
million in 2009, adjusted annually for inflation).
    Estimate prepared by: Federal costs: Mark Grabowicz (DHS) 
and David Rafferty (SSA); Impact on State, local, and Tribal 
Governments: Melissa Merrell; Impact on the private sector: 
Marin Randall.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the following changes in existing 
law made by the bill, as reported, are shown as follows: 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

 EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR DEFENSE, THE GLOBAL WAR 
                  ON TERROR, AND TSUNAMI RELIEF, 2005

(Public Law 109-13) 

           *       *       *       *       *       *       *

DIVISION B--REAL ID ACT OF 2005 

           *       *       *       *       *       *       *

    [TITLE II--IMPROVED SECURITY FOR DRIVER'S LICENSES AND PERSONAL 
                          IDENTIFICATION CARDS

SEC. 201. DEFINITIONS.

    In this title, 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) Official purpose.--The term ``official purpose'' 
        includes but is not limited to accessing Federal 
        facilities, boarding federally regulated commercial 
        aircraft, entering nuclear power plants, and any other 
        purposes that the Secretary shall determine.
          (4) Secretary.--The term ``Secretary'' means the 
        Secretary of Homeland Security.
          (5) 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. 202. 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 division, 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's license or identification 
        card number.
          (5) A digital photograph of the person.
          (6) The person's address of principle 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 principle 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 lawful 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 or national 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 an approved application for 
                        asylum in the United States or has 
                        entered into the United States in 
                        refugee status;
                          (v) has a valid, unexpired 
                        nonimmigrant visa or nonimmigrant visa 
                        status for entry into the United 
                        States;
                          (vi) has a pending application for 
                        asylum in the United States;
                          (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 driver's licenses and 
                identification cards.--
                          (i) In general.--If a person presents 
                        evidence under any of clauses (v) 
                        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) 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 driver's 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 
        driver's licenses and identification cards are produced 
        and the security of document materials and papers from 
        which driver's licenses and identification cards are 
        produced.
          (8) Subject all persons authorized to manufacture or 
        produce driver's licenses and identification cards to 
        appropriate security clearance requirements.
          (9) Establish fraudulent document recognition 
        training programs for appropriate employees engaged in 
        the issuance of driver's licenses and identification 
        cards.
          (10) Limit the period of validity of all driver's 
        licenses and identification cards that are not 
        temporary to a period that does not exceed 8 years.
          (11) In any case in which the State issues a driver's 
        license or identification card that does not satisfy 
        the requirements of this section, ensure that such 
        license or identification card--
                  (A) clearly states on its face that it may 
                not be accepted by any Federal agency for 
                federal identification or any other official 
                purpose; and
                  (B) uses a unique design or color indicator 
                to alert Federal agency and other law 
                enforcement personnel that it may not be 
                accepted for any such purpose.
          (12) Provide electronic access to all other States to 
        information contained in the motor vehicle database of 
        the State.
          (13) Maintain a State motor vehicle database that 
        contains, at a minimum--
                  (A) all data fields printed on driver's 
                licenses and identification cards issued by the 
                State; and
                  (B) motor vehicle driver's histories, 
                including motor vehicle violations, 
                suspensions, and points on licenses.

SEC. 203. TRAFFICKING IN AUTHENTICATION FEATURES FOR USE IN FALSE 
                    IDENTIFICATION DOCUMENTS.

    (a) Criminal Penalty.--Section 1028(a)(8) of title 18, 
United States Code, is amended by striking ``false 
authentication features'' and inserting ``false or actual 
authentication features''.
    (b) Use of False Driver's License at Airports.--
          (1) In general.--The Secretary shall enter, into the 
        appropriate aviation security screening database, 
        appropriate information regarding any person convicted 
        of using a false driver's license at an airport (as 
        such term is defined in section 40102 of title 49, 
        United States Code).
          (2) False Defined.--In this subsection, the term 
        ``false'' has the same meaning such term has under 
        section 1028(d) of title 18, United States Code.

SEC. 204. 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 title.
    (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 title.

SEC. 205. AUTHORITY.

    (a) Participation of Secretary of Transportation and 
States.--All authority to issue regulations, set standards, and 
issue grants under this title 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 
202(a)(1) if the State provides adequate justification for 
noncompliance.

SEC. 206. REPEAL.

    Section 7212 of the Intelligence Reform and Terrorism 
Prevention Act of 2004 (Public Law 108-458) is repealed.

SEC. 207. LIMITATION ON STATUTORY CONSTRUCTION.

    Nothing in this title shall be construed to affect the 
authorities or responsibilities of the Secretary of 
Transportation or the States under chapter 303 of title 49, 
United States Code.]

           *       *       *       *       *       *       *

                           UNITED STATES CODE

TITLE 6. DOMESTIC SECURITY

           *       *       *       *       *       *       *

                            TABLE OF CONTENTS

     * * * * * * *

    Subtitle E--Improved Security for Driver's Licenses and Personal 
                          Identification Cards

    SEC. 241. DEFINITIONS.
    Sec. 242. Minimum document requirements and issuance standards for 
              Federal recognition.
    Sec. 243. Use of false driver's license at airports.
    Sec. 244. Grants to States.
    Sec. 245. State-to-State one driver, one license demonstration 
              project.
    Sec. 246. Authority.
    Sec. 247. Limitation on statutory construction.

           *       *       *       *       *       *       *

               CHAPTER 1. HOMELAND SECURITY ORGANIZATION

SUBCHAPTER IV. DIRECTORATE OF BORDER AND TRANSPORTATION SECURITY

           *       *       *       *       *       *       *

   Subtitle E--Improved Security for Driver's Licenses and Personal 
                          Identification Cards

SEC. 241. DEFINITIONS.

    In this subtitle:
          (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) Materially compliant.--A State is `materially 
        compliant' if the State has certified to the Secretary 
        that the State has commenced issuing driver's licenses 
        and identification cards that are compliant with the 
        requirements of this subtitle.
          (4) Official purpose.--The term `official purpose' 
        means--
                          (A) accessing Federal facilities that 
                        contain mission functions critical to 
                        homeland security, national security, 
                        or defense;
                          (B) accessing nuclear power plants; 
                        or
                          (C) boarding federally regulated 
                        commercial aircraft.
          (5) Secretary.--The term `Secretary' means the 
        Secretary of Homeland Security.
          (6) State.--The term `State' means a State of the 
        United States, the District of Columbia, Puerto Rico, 
        the Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.

SEC. 242. MINIMUM DOCUMENT REQUIREMENTS AND ISSUANCE STANDARDS FOR 
                    FEDERAL RECOGNITION.

    (a) Minimum Standards for Federal Use.--
          (1) In general.--Beginning 1 year after the date on 
        which final regulations are issued to implement this 
        subtitle, pursuant to section 5 of the PASS ID Act--
                          (A) 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 materially compliant; and
                          (B) no person shall be denied 
                        boarding a commercial aircraft solely 
                        on the basis of failure to present a 
                        driver's license or identification card 
                        issued pursuant to this subtitle.
          (2) Agency acceptance.--Beginning 6 years after the 
        date on which final regulations are issued to implement 
        this subtitle, pursuant to section 5 of the PASS ID 
        Act, a Federal agency may not accept, for any official 
        purpose, a driver's license or identification card 
        unless the license or card complies with subsection 
        (b).
          (3) 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.
          (4) Certification of other identification 
        documents.--The Secretary may certify any driver's 
        license or identification card, including an Enhanced 
        Driver's License designated by the Secretary under 
        section 7209 of the 9/11 Commission Implementation Act 
        of 2004, as compliant with the requirements of this 
        subtitle if the Secretary, after review, determines 
        such license or card meets the requirements of this 
        subtitle.
    (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 legal name.
          (2) The person's date of birth.
          (3) The person's gender.
          (4) The person's driver's license or identification 
        card number.
          (5) A digital photograph of the person.
          (6) The person's address of principle residence, 
        except--
                  (A) as provided for under section 827 of the 
                Violence Against Women Act (Public Law 109-
                162); or
                  (B) for any individual who a State determines 
                should be exempted from the requirement under 
                this paragraph to protect the safety or 
                security of the applicant.
          (7) The person's signature.
          (8) A combination of security features designed to 
        protect the physical integrity of the document, 
        including the prevention of tampering, counterfeiting, 
        or duplication of the document for fraudulent purposes.
          (9) A common machine-readable technology, containing 
        the data elements available on the face of a driver's 
        license or identification card. A person's social 
        security number may not be included in these data 
        elements.
          (10) A unique symbol designated by the Secretary to 
        indicate compliance with the requirements under this 
        section.
    (c) Minimum Issuance Standards.--
          (1) In general.--To meet the requirements of this 
        section, for all driver's licenses and identification 
        cards issued under this subtitle at least 1 year after 
        the date on which final regulations are issued to 
        implement this subtitle, pursuant to section 5 of the 
        PASS ID Act, a State shall require, at a minimum, 
        presentation and validation 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 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 principle 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 lawful status.--Before 
                issuing a driver's license or identification 
                card to a person, a State shall verify that the 
                person--
                          (i) is a citizen or national of the 
                        United States;
                          (ii) has been granted lawful 
                        permanent residence in the United 
                        States;
                          (iii) has been granted asylum or 
                        withholding of removal, or has been 
                        admitted into the United States as a 
                        refugee;
                          (iv) has been granted temporary 
                        residence in the United States;
                          (v) has been paroled into the United 
                        States under section 212(d)(5) of the 
                        Immigration and Nationality Act (8 
                        U.S.C. 1182(d)(5)), subject to such 
                        exceptions as the Secretary, in the 
                        Secretary's unreviewable discretion, 
                        may prescribe for aliens paroled into 
                        the United States for prosecution or 
                        other categories of paroled aliens;
                          (vi) is a lawful nonimmigrant in the 
                        United States;
                          (vii) has a pending application for 
                        asylum or withholding of removal and 
                        has been granted employment 
                        authorization;
                          (viii) has been granted temporary 
                        protected status in the United States 
                        or has a pending application for 
                        temporary protective status and has 
                        been granted employment authorization;
                          (ix) has been granted deferred action 
                        status;
                          (x) 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;
                          (xi) has otherwise been granted 
                        employment autsent in the United 
                        States, as determined by the 
                        Secretaryhorization in the United 
                        States; or
                          (xii) is otherwise an alien lawfully 
                        pre in the Secretary's unreviewable 
                        discretion.
                  (C) Temporary driver's licenses and 
                identification cards.--
                          (i) In general.--If a person presents 
                        evidence under any of clauses (iv) 
                        through (xii) of subparagraph (B), the 
                        State may only issue a temporary 
                        driver's license or temporary 
                        identification card to the person that 
                        is valid for a time period ending not 
                        later than the expiration date of the 
                        applicant's authorized stay in the 
                        United States or, if there is no such 
                        expiration date, for a period not to 
                        exceed 1 year. The Secretary may, in 
                        the Secretary's unreviewable 
                        discretion, authorize the issuance of 
                        temporary driver's licenses or 
                        temporary identification cards, for 
                        periods longer than 1 year, to 
                        employees of international 
                        organizations and to other nonimmigrant 
                        aliens who are authorized to remain in 
                        the United States for an indefinite 
                        period.
                          (ii) Display of expiration date.--A 
                        temporary driver's license or temporary 
                        identification card issued pursuant to 
                        this subparagraph shall clearly state 
                        the date on which it expires.
                          (iii) Renewal.--A temporary driver's 
                        license or temporary identification 
                        card issued pursuant to this 
                        subparagraph may be renewed only upon 
                        verification of the applicant's current 
                        lawful status.
          (3) Validation of documents.--To meet the 
        requirements of this section, a State--
                  (A) shall not accept any foreign document, 
                other than an official passport, to satisfy a 
                requirement of paragraph (1) or (2); and
                  (B) not later than 1 year after the date on 
                which final regulations are issued to implement 
                this subtitle, pursuant to section 5 of the 
                PASS ID Act, shall enter into a memorandum of 
                understanding with the Secretary to routinely 
                utilize the automated system known as 
                Systematic Alien Verification for Entitlements 
                established under section 121 of the 
                Immigration Reform and Control Act of 1986 
                (Public Law 99-603), to verify the legal 
                presence status of a person, other than a 
                United States citizen or national, who is 
                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 driver's licenses and identification cards:
          (1)(A) Employ technology to capture digital images of 
        identity source documents so that the images can be 
        retained in electronic storage in a transferrable 
        format for at least as long as the applicable driver's 
        license or identification card is valid; or
          (B) retain paper copies of source documents for at 
        least as long as the applicable driver's license or 
        identification card is valid.
          (2) Subject each person who submits an application 
        for a driver's license or identification card to 
        mandatory facial image capture.
          (3) Establish an effective procedure to confirm or 
        verify a renewing applicant's information.
          (4) 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 may use any appropriate 
        procedures to resolve nonmatches.
          (5) Establish an effective procedure to confirm that 
        a person submitting an application for a driver's 
        license or identification card is terminating or has 
        terminated any driver's license or identification card 
        issued pursuant to this section to such person by a 
        State.
          (6) Provide for the physical security of locations 
        where driver's licenses and identification cards are 
        produced and the security of document materials and 
        papers from which driver's licenses and identification 
        cards are produced.
          (7) Establish appropriate administrative and physical 
        safeguards to protect the security, confidentiality, 
        and integrity of personally identifiable information 
        collected and maintained at locations at which driver's 
        licenses or identification documents are produced or 
        stored, including--
                  (A) procedures to prevent the unauthorized 
                access to, or use of, personally identifiable 
                information;
                  (B) public notice of security and privacy 
                policies, including the use, storage, access 
                to, and sharing of personally identifiable 
                information;
                  (C) the establishment of a process through 
                which individuals may access, amend, and 
                correct, as determined appropriate by the 
                State, their own personally identifiable 
                information.
          (8) Subject all persons authorized to manufacture or 
        produce driver's licenses and identification cards to 
        appropriate security clearance requirements.
          (9) Establish fraudulent document recognition and 
        document validation training programs for appropriate 
        employees engaged in the issuance of driver's licenses 
        and identification cards.
          (10) Limit the period of validity of all driver's 
        licenses and identification cards that are not 
        temporary to a period that does not exceed 8 years.
    (e) Exceptions Process.--
          (1) In general.--States shall establish an exceptions 
        process to reasonably accommodate persons who, for 
        extraordinary reasons beyond their control, are unable 
        to present the necessary documents listed in subsection 
        (c)(1).
          (2) Alternative documents.--Alternative documents 
        accepted under an exceptions process established 
        pursuant to paragraph (1) may not be used to 
        demonstrate lawful presence under subsection (c)(2) 
        unless such documents establish that the person is a 
        citizen or national of the United States.
          (3) Report.--States shall include a report on the use 
        of exceptions made under this subsection, which shall 
        not include any personally identifiable information, as 
        a component of the certification required under 
        subsection (a)(3).
    (f) Use of Federal Systems.--States shall not be required 
to pay fees or other costs associated with the use of the 
automated systems known as Systematic Alien Verification for 
Entitlements and Social Security On-Line Verification, or any 
other Federal electronic system, in connection with the 
issuance of driver's licenses or identification cards, in 
accordance with this subtitle.
    (g) Rule of Construction.--Nothing in this section shall be 
construed to prohibit a State from issuing driver's licenses 
and identification cards that do not comply with the 
requirements of this section.

SEC. 243. USE OF FALSE DRIVER'S LICENSE AT AIRPORTS.

    (a) In General.--The Secretary shall enter, into the 
appropriate aviation security screening database, appropriate 
information regarding any person convicted of using a false 
driver's license at an airport.
    (b) Definitions.--In this section:
          (1) Airport.--The term `airport' has the meaning 
        given such term under section 40102 of title 49, United 
        States Code.
          (2) False.--The term `false' has the meaning given 
        such term under section 1028(d) of title 18, United 
        States Code.

SEC. 244. GRANTS TO STATES.

    (a) Establishment.--
          (1) In general.--There is established a State 
        Driver's License Enhancement Grant Program to award 
        grants to assist States in conforming to the minimum 
        standards set forth in this subtitle.
          (2) Distribution of grants.--The Secretary, through 
        the Administrator of the Federal Emergency Management 
        Agency, shall distribute grants awarded under this 
        section to States that submit an application as 
        follows:
                  (A) Proportional allocation.--Not less than 
                \2/3\ of the amounts appropriated for grants 
                under this section shall be allocated to each 
                State in the ratio that--
                          (i) the number of driver's licenses 
                        and identification cards issued by such 
                        State in the most recently ended 
                        calendar year; bears to
                          (ii) the number of driver's licenses 
                        and identifications cards issued by all 
                        States in the most recently ended 
                        calendar year.
                  (B) Remaining allocation.--The Secretary may 
                allocate to States any amounts appropriated for 
                grants under this section that are not 
                allocated under subparagraph (A) in such manner 
                as, in the Secretary's discretion, will most 
                effectively assist in achieving the goals of 
                this subtitle.
                  (C) Minimum allocation.--In allocating funds 
                under this section, the Secretary shall ensure 
                that for each fiscal year--
                          (i) except as provided under clause 
                        (ii), each State receives not less than 
                        an amount equal to 0.35 percent of the 
                        total funds appropriated for grants 
                        under this section for that fiscal 
                        year; and
                          (ii) American Samoa, the Commonwealth 
                        of the Northern Mariana Islands, Guam, 
                        and the Virgin Islands each receive not 
                        less than an amount equal to 0.08 
                        percent of the total funds appropriated 
                        for grants under this section for that 
                        fiscal year.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary, for each of the fiscal 
years 2010 through 2015, such sums as may be necessary to carry 
out this section.

SEC. 245. STATE-TO-STATE ONE DRIVER, ONE LICENSE DEMONSTRATION PROJECT.

    (a) Establishment.--The Secretary, in consultation with the 
Secretary of Transportation, shall establish a State-to-State 1 
driver, 1 license demonstration project.
    (b) Purpose.--The demonstration project established under 
this section shall include an evaluation of the feasibility of 
establishing an electronic system to verify that an applicant 
for a driver's license or identification card issued in 
accordance with this subtitle does not retain a driver's 
license or identification card issued in accordance with this 
subtitle by another State.
    (c) Requirements.--The demonstration project shall include 
a review of--
          (1) the costs affiliated with establishing and 
        maintaining an electronic records system;
          (2) the security and privacy measures necessary to 
        protect the integrity and physical security of driver's 
        licenses; and
          (3) the appropriate governance structure to ensure 
        effective management of the electronic records system, 
        including preventing the unauthorized use of 
        information in the system, and ensuring the security 
        and confidentiality of personally identifiable 
        information.
    (d) Savings Provision.--Nothing in this section may be 
construed to--
          (1) authorize the creation of a national database of 
        driver's license information; or
          (2) authorize States direct access to the motor 
        vehicle database of another State.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for each of the fiscal 
years 2010 through 2012 such sums as may be necessary to carry 
out this section.

SEC. 246. AUTHORITY.

    (a) Participation of Secretary of Transportation and 
States.--All authority to issue regulations, set standards, and 
issue grants under this subtitle 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 
242(a)(1) if the State provides adequate justification for 
noncompliance.

SEC. 247. LIMITATION ON STATUTORY CONSTRUCTION.

    ``Nothing in this subtitle may be construed to--
          (1) affect the authorities or responsibilities of the 
        Secretary of Transportation or the States under chapter 
        303 of title 49, United States Code; or
          (2) preempt State privacy laws that are more 
        protective of personal privacy than the requirements of 
        this subtitle or the standards or regulations 
        promulgated to implement this subtitle, provided that 
        such State laws are consistent with this subtitle and 
        the regulations prescribed pursuant to this subtitle.

           *       *       *       *       *       *       *

TITLE 18. DOMESTIC SECURITY

           *       *       *       *       *       *       *

    CHAPTER 123--PROHIBITION ON RELEASE AND USE OF CERTAIN PERSONAL 
INFORMATION FROM STATE MOTOR VEHICLE RECORDS

           *       *       *       *       *       *       *

SEC. 2722. ADDITIONAL UNLAWFUL ACTS.

    (c) Copying Information From Driver's Licenses or 
Identification Cards.--It shall be unlawful for any person, 
knowingly and without lawful authority--
          (1) In general.--Except as provided in paragraph (2), 
        and unless authorized by Federal, State, or local law, 
        beginning 6 months after the date on which final 
        regulations are issued under paragraph (2), it shall be 
        unlawful for any person, knowingly and without lawful 
        authority--
                  (A) to scan the information contained in the 
                machine readable component of a driver's 
                license or identification card; and
                  (B)(i) to resell, share or trade that 
                information with any other third parties;
                  (ii) track the use of a driver's license or 
                identification card; or
                  (iii) store the information collected.
          (2) Exceptions.--
                  (A) In general.--Not later than 2 years after 
                the date of the enactment of the PASS ID Act, 
                the Federal Trade Commission, after providing 
                notice and an opportunity for public comment, 
                shall issue final regulations that provide 
                exceptions to the prohibition under paragraph 
                (1) for acceptable uses of information derived 
                from the machine readable component of a 
                driver's license or identification card for 
                purposes including preventing fraud, abuse, or 
                criminal activity.
                  (B) Acceptable uses.--Acceptable uses under 
                subparagraph (A) shall protect the privacy and 
                security of the driver's license or 
                identification card holder and shall include--
                          (i) scanning and sharing personal 
                        information for credit checks;
                          (ii) scanning and sharing, tracking, 
                        or storing personal information for law 
                        enforcement purposes;
                          (iii) scanning and storing 
                        information to prevent consumer fraud;
                          (iv) scanning and sharing the 
                        information between Federal, State, and 
                        local agencies, in accordance with 
                        section 552a of title 5, United States 
                        Code, and other laws relevant to the 
                        protection of the privacy of the 
                        individual; and
                          (v) scanning and using the 
                        information for a purpose for which the 
                        driver's license or identification card 
                        holder has given express written 
                        consent.'';

           *       *       *       *       *       *       *

SEC. 2724. CIVIL ACTIONS.

    (a) Cause of Action.--A person who knowingly obtains, 
discloses or uses personal information, from a motor vehicle 
record, driver's license, or identification card for a purpose 
not permitted under this chapter shall be liable to the 
individual to whom the information pertains, who may bring a 
civil action in a United States district court.

           *       *       *       *       *       *       *

SEC. 2725. DEFINITIONS.

    In this chapter--
          [(1)] (5) ``motor vehicle record'' means any record 
        that pertains to a motor vehicle operator's permit, 
        motor vehicle title, motor vehicle registration, or 
        identification card issued by a department of motor 
        vehicles;
          [(2)] (6) ``person'' means an individual, 
        organization or entity, but does not include a State or 
        agency thereof; and
          [(3)] (7) ``personal information'' means information 
        that identifies an individual, including an 
        individual's photograph, social security number, driver 
        identification number, name, address (but not the 5-
        digit zip code), telephone number, and medical or 
        disability information, but does not include 
        information on vehicular accidents, driving violations, 
        and driver's status.
          [(4)] (3) ``highly restricted personal information'' 
        means an individual's photograph or image, social 
        security number, medical or disability information; 
        [and]
          (4) ``identification card'' means a personal 
        identification card, as defined in section 1028(d) of 
        title 18, United States Code, issued by a State.
          [(5)] (1) ``driver's license'' means a motor vehicle 
        operator's license, as defined in section 30301 of 
        title 49, United States Code;''
          (2) ``express consent'' means consent in writing, 
        including consent conveyed electronically that bears an 
        electronic signature as defined in section 106(5) of 
        Public Law 106-229.

                                  
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