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[House Report 115-945]
[From the U.S. Government Publishing Office]

115th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      115-945

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

 
       REAL ID ACT MODIFICATION FOR FREELY ASSOCIATED STATES ACT

                                _______
                                

 September 12, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

   Mr. Gowdy, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3398]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (H.R. 3398) to amend the Real ID Act of 
2005 to permit Freely Associated States to meet identification 
requirements under such Act, and for other purposes, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Summary and Purpose of Legislation...............................     2
Background and Need for Legislation..............................     2
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     2
Statement of General Performance Goals and Objectives............     3
Legislative History..............................................     3
Committee Consideration..........................................     3
Roll Call Votes..................................................     3
Explanation of Amendments........................................     3
Application of Law to the Legislative Branch.....................     3
Duplication of Federal Programs..................................     4
Disclosure of Directed Rule Makings..............................     4
Federal Advisory Committee Act...................................     4
Unfunded Mandates Statement......................................     4
Earmark Identification...........................................     4
Committee Estimate...............................................     4
New Budget Authority and Congressional Budget Office Cost 
  Estimate.......................................................     4
Section-by-Section Analysis......................................     5
Changes in Existing Law Made by the Bill, as Reported............     6

                   Summary and Purpose of Legislation

    H.R. 3398, the REAL ID Act Modification for Freely 
Associated States Act, amends the REAL ID Act of 2005 to permit 
Freely Associated States to meet identification eligibility 
requirements.

                  Background and Need for Legislation

    The Compact of Free Association permit citizens of the 
Freely Associated States (FAS) to work and reside indefinitely 
in the United States as legal non-immigrants without the need 
for a visa.\1\ However, the REAL ID Act of 2005 did not cover 
FAS citizens.\2\ Instead, under the definition of ``State,'' 
the law refers to ``the Trust Territory of the Pacific 
Islands''--an outdated and defunct term describing the former 
Trusteeship that predated the Compact of Free Association 
between the United States and FAS nations.\3\
---------------------------------------------------------------------------
    \1\Pub. L. No. 108-188 (2003); Pub. L. No. 101-219 (1989). The 
Freely Associated States are the Republic of the Marshall Islands, the 
Federated States of Micronesia, and the Republic of Palau.
    \2\Pub. L. No. 109-13 (2005).
    \3\E.g., U.S. Citizenship & Immigr. Servs., Fact Sheet: Status of 
Citizens of the Republic of Palau (Nov. 3, 2015), available at https://
www.uscis.gov/sites/default/files/USCIS/Verification/I-9%20Central/
FactSheets/FactSheet-Status_of_Citizens_of _Palau.pdf.
---------------------------------------------------------------------------
    Because the Compact of Free Association does not establish 
a specific time period for admission and duration of stay in 
the United States, FAS citizens are often subject to temporary 
driver's licenses under the REAL ID Act.\4\ Temporary licenses 
under the law expire after one year, while permanent licenses 
are authorized for a period of eight years.\5\ As a legal non-
immigrant, a FAS citizen would otherwise be eligible for a 
permanent, state-issued driver's license compliant with the 
REAL ID Act.\6\
---------------------------------------------------------------------------
    \4\Briefing by Gerald Zackios, Ambassador, Embassy of the Republic 
of the Marshall Islands, to Comm. Staff, H. Comm. on Oversight & Gov't 
Reform (Oct. 25, 2017).
    \5\Pub. L. No. 109-13 (2005).
    \6\Hearing to Conduct Oversight on Issues Facing U.S.-Affiliated 
Islands and to Consider Two Measures Related to U.S.-Affiliated 
Islands: Hearings before the S. Comm. on Energy & Natural Resources, 
114th Cong. (Apr. 5, 2016) (statement of Esther P. Kia'aina, Ass't 
Sec'y for Insular Areas, Dep't of the Interior).
---------------------------------------------------------------------------
    As a result, some employers are reluctant to hire or retain 
FAS citizens.\7\ FAS citizens with temporary licenses are also 
often denied access to housing, transportation, schools, and 
other opportunities, even though they are lawfully residing in 
the United States.\8\ H.R. 3398 updates the law to ensure a FAS 
citizen admitted as a non-immigrant to the United States 
pursuant to a Compact of Free Association can obtain a REAL ID-
compliant driver's license on the same basis as any other long-
term migrant in the United States.
---------------------------------------------------------------------------
    \7\Id.
    \8\Id.
---------------------------------------------------------------------------

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the previous section.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goal or objective of this bill is to amend the Real ID Act of 
2005 to permit Freely Associated States to meet identification 
requirements under such Act, and for other purposes.

                          Legislative History

    On July 25, 2017, Representative Don Young (R-AK) 
introduced H.R. 3398, the REAL ID Act Modification for Freely 
Associated States Act. H.R. 3398 was referred to the Committee 
on Oversight and Government Reform. The Committee considered 
H.R. 3398 at a business meeting on February 6, 2018, and 
ordered the bill favorably reported by voice vote.
    In the 114th Congress, Senator Lisa Murkowski (R-AK) 
introduced S. 2360, the Omnibus Territories Act of 2015, which 
included a provision substantially similar to H.R. 3398. On 
July 13, 2016, the Senate Committee on Energy and Natural 
Resources considered and ordered favorably reported S. 2360, as 
amended, and on September 29, 2016, the Senate passed the bill 
by unanimous consent.
    In the 113th Congress, Senator Ron Wyden (D-OR) introduced 
S. 1237, the Omnibus Territories Act of 2013, an identical bill 
to S. 2360. On December 19, 2013, the Senate Committee on 
Energy and Natural Resources considered and ordered favorably 
reported S. 1237, as amended, and on June 18, 2014, the Senate 
passed the bill by unanimous consent.

                        Committee Consideration

    On February 6, 2018, the Committee met in open session and, 
with a quorum being present, ordered the bill favorably 
reported by voice vote.

                            Roll Call Votes

    There were no roll call votes requested or conducted during 
Committee consideration of H.R. 3398.

                       Explanation of Amendments

    There were no amendments to H.R. 3398 offered or adopted 
during Committee consideration of the bill.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill amends the Real ID Act of 2005 to permit Freely 
Associated States to meet identification requirements under 
such Act. As such, this bill does not relate to employment or 
access to public services and accommodations.

                    Duplication of Federal Programs

    In accordance with clause 2(c)(5) of rule XIII no provision 
of this bill establishes or reauthorizes a program of the 
Federal Government known to be duplicative of another Federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                  Disclosure of Directed Rule Makings

    This bill does not direct the completion of any specific 
rule makings within the meaning of section 551 of title 5, 
United States Code.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of Section 5(b) of the appendix to title 5, 
United States Code.

                      Unfunded Mandates Statement

    Pursuant to section 423 of the Congressional Budget Act of 
1974 the Committee has included a letter received from the 
Congressional Budget Office below.

                         Earmark Identification

    This bill does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the House of Representatives.

                           Committee Estimate

    Pursuant to clause 3(d)(2)(B) of rule XIII of the Rules of 
the House of Representatives, the Committee includes below a 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.

   New Budget Authority and Congressional Budget Office Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the House of 
Representatives, the cost estimate prepared by the 
Congressional Budget Office and submitted pursuant to section 
402 of the Congressional Budget Act of 1974 is as follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 14, 2018.
Hon. Trey Gowdy,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3398, the REAL ID 
Act Modification for Freely Associated States Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is David 
Rafferty.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 3398--REAL ID Act Modification for Freely Associated States Act

    Under the REAL ID Act, states may only issue a temporary 
driver's license or personal identification card, valid for one 
year, to noncitizens whose period of authorized stay is 
indefinite. H.R. 3398 would amend the REAL ID Act of 2005 to 
allow citizens of the Republic of the Marshall Islands, the 
Federated States of Micronesia, and the Republic of Palau to be 
issued regular driver's licenses or personal identification 
cards that are valid for the maximum period of validity, which 
is up to eight years. Citizens of those countries can travel to 
the United States without a visa, and live and work in the U.S. 
indefinitely.
    Based on information from the Department of Homeland 
Security and the Department of the Interior, CBO estimates that 
enacting H.R. 3398 would have no significant effect on the 
federal budget because it would not materially affect the 
duties or responsibilities of executive branch agencies.
    Enacting the bill would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply. CBO 
estimates that enacting H.R. 3398 would not increase direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2028.
    H.R. 3398 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is David Rafferty. 
The estimate was approved by Leo Lex, Deputy Assistant Director 
for Budget Analysis.

                      Section-by-Section Analysis

Section 1. Short title

    Section 1 establishes the short title of the bill.

Sec. 2. Amendment

    Subsection (a) of section 2 amends section 201(5) of the 
REAL ID Act of 2005 (49 U.S.C. 30301 note; Pub. L. 109-13), to 
omit references to ``the Trust Territory of the Pacific 
Islands'' from the definition of ``State.''
    Subsection (b) of section 2 amends section 202(c)(2)(B) of 
the REAL ID Act of 2005, by adding a new classification under 
Evidence of Lawful Status. Citizens from: (1) the Republic of 
the Marshall Islands; (2) the Federated States of Micronesia; 
and (3) the Republic of Palau, who have been accepted into the 
United States as non-immigrants pursuant to a Compact of Free 
Association, are eligible for state-issued driver's licenses or 
other identification documentation.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, 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, and existing law in which no 
change is proposed is shown in roman):

                          REAL ID ACT OF 2005

           *       *       *       *       *       *       *
DIVISION B--REAL ID ACT OF 2005

           *       *       *       *       *       *       *

    TITLE II--IMPROVED SECURITY FOR DRIVERS' 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 principal residence.
          (2) Special requirements.--
                  (A) In general.--To meet the requirements of 
                this section, a State shall comply with the 
                minimum standards of this paragraph.
                  (B) Evidence of 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[.]; or
                          (x) is a citizen of the Republic of 
                        the Marshall Islands, the Federated 
                        States of Micronesia, or the Republic 
                        of Palau who has been admitted to the 
                        United States as a nonimmigrant 
                        pursuant to a Compact of Free 
                        Association between the United States 
                        and the Republic or Federated States.
                  (C) Temporary drivers' 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 drivers' licenses and identification cards:
          (1) Employ technology to capture digital images of 
        identity source documents so that the images can be 
        retained in electronic storage in a transferable 
        format.
          (2) Retain paper copies of source documents for a 
        minimum of 7 years or images of source documents 
        presented for a minimum of 10 years.
          (3) Subject each person applying for a driver's 
        license or identification card to mandatory facial 
        image capture.
          (4) Establish an effective procedure to confirm or 
        verify a renewing applicant's information.
          (5) Confirm with the Social Security Administration a 
        social security account number presented by a person 
        using the full social security account number. In the 
        event that a social security account number is already 
        registered to or associated with another person to 
        which any State has issued a driver's license or 
        identification card, the State shall resolve the 
        discrepancy and take appropriate action.
          (6) Refuse to issue a driver's license or 
        identification card to a person holding a driver's 
        license issued by another State without confirmation 
        that the person is terminating or has terminated the 
        driver's license.
          (7) Ensure the physical security of locations where 
        drivers' licenses and identification cards are produced 
        and the security of document materials and papers from 
        which drivers' licenses and identification cards are 
        produced.
          (8) Subject all persons authorized to manufacture or 
        produce drivers' licenses and identification cards to 
        appropriate security clearance requirements.
          (9) Establish fraudulent document recognition 
        training programs for appropriate employees engaged in 
        the issuance of drivers' licenses and identification 
        cards.
          (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 drivers' 
                licenses and identification cards issued by the 
                State; and
                  (B) motor vehicle drivers' histories, 
                including motor vehicle violations, 
                suspensions, and points on licenses.

           *       *       *       *       *       *       *

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