(2) TIME
REQUIREMENT.—The process de-
scribed in paragraph (1) shall be conducted in a 
timely manner to ensure that— 
(A) any recommendation for a proposed 
rule or report— 
(i) is provided to the Secretary of 
Homeland Security not later than 9 
months after the date of enactment of this 
Act; and 
(ii) includes an assessment of the ben-
efits and costs of the recommendation; and 
(B) a final rule is promulgated not later 
than 12 months after the date of enactment of 
this Act. 
(3) REPRESENTATION ON NEGOTIATED RULE-
MAKING
COMMITTEE.—Any negotiated rulemaking 
committee established by the Secretary of Homeland 
Security pursuant to paragraph (1) shall include 
representation from— 
(A) the Department of Transportation; 
(B) among State elected officials; 
(C) among State offices that issue driver’s 
licenses or personal identification cards; and 
(D) among interested parties, including ex-
perts in privacy protection, experts in civil lib-
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erties and protection of constitutional rights, 
experts in immigration law, experts in fraud de-
tection, and experts in vital records manage-
ment. 
(4) CONTENT OF REGULATIONS.—The regula-
tions required by subsection (b)(2)— 
(A) shall facilitate communication between 
the chief driver licensing official of a State, an 
appropriate official of a Federal agency and 
other relevant officials, to verify the authen-
ticity of documents, as appropriate, issued by 
such Federal agency or entity and presented to 
prove the identity of an individual; 
(B) may not infringe on a State’s power to 
set criteria concerning what categories of indi-
viduals are eligible to obtain a driver’s license 
or personal identification card from that State; 
(C) may not require a State to comply with 
any such regulation that conflicts with or other-
wise interferes with the full enforcement of 
State criteria concerning the categories of indi-
viduals that are eligible to obtain a driver’s li-
cense or personal identification card from that 
State; 
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(D) may not require a single design to 
which driver’s licenses or personal identification 
cards issued by all States must conform; 
(E) shall include procedures and require-
ments to protect the privacy rights of individ-
uals who apply for and hold driver’s licenses 
and personal identification cards; 
(F) shall include procedures and require-
ments to protect the federal and state constitu-
tional rights and civil liberties of individuals 
who apply for and hold driver’s licenses and 
personal identification cards; 
(G) shall not permit the transmission of 
any personally identifiable information except 
for in encrypted format; 
(H) shall provide individuals with proce-
dural and substantive due process, including 
promulgating rules and rights of appeal, to 
challenge errors in data records contained with-
in the databases created to implement this Act; 
(I) shall not permit private entities to scan 
the information contained on the face of a li-
cense, or in the machine readable component of 
the license, and resell, share, or trade that in-
formation with any other third parties, nor 
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shall private entities be permitted to store the 
information collected for any other than fraud 
prevention purposes; 
(J) shall not preempt state privacy laws 
that are more protective of personal privacy 
than the standards, or regulations promulgated 
to implement this Act; 
(K) may provide for excluding from a driv-
er’s license or personal identification card the 
photograph or an address of principal residence 
in circumstances which justify such an exclu-
sion, such as because of religious belief or for 
reasons of personal security of domestic violence 
victims or judges or other law enforcement offi-
cials; and 
(L) shall not require verification of birth 
certificates until a nationwide system is de-
signed and implemented to facilitate such 
verification. 
(d) GRANTS TO STATES.— 
(1) ASSISTANCE IN MEETING FEDERAL STAND-
ARDS.—Beginning on the date a final regulation is 
promulgated under subsection (b)(2), the Secretary 
of Homeland Security shall award grants to States 
to assist them in conforming to the minimum stand-
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ards for driver’s licenses and personal identification 
cards set forth in the regulation. 
(2) ALLOCATION OF GRANTS.—The Secretary 
of Homeland Security shall award grants to States 
under this subsection based on the proportion that 
the estimated average annual number of driver’s li-
censes and personal identification cards issued by a 
State applying for a grant bears to the average an-
nual number of such documents issued by all States. 
(3) MINIMUM
ALLOCATION.—Notwithstanding 
paragraph (2), each State shall receive not less than 
0.5 percent of the grant funds made available under 
this subsection. 
(4) SEPARATE FUNDING.—Funds appropriated 
for grants under this section may not be commingled 
with other grant funds administered by the Depart-
ment of Homeland Security and may not be used for 
any purpose other than the purpose set forth in 
paragraph (1). 
(e) EXTENSION
OF EFFECTIVE DATE.—The Sec-
retary of Homeland Security may extend the date specified 
under subsection (b)(1)(A) for up to 2 years for driver’s 
licenses issued by a State if the Secretary determines that 
the State made reasonable efforts to comply with the date 
under such subsection but was unable to do so. 
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SEC. 4. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary of Homeland Security $300,000,000 for each of the 
fiscal years 2008 through 2015 to carry out this Act. 
Æ 
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