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F I S C A L I M P A C T R E P O R T

SPONSOR Foley

ORIGINAL DATE

LAST UPDATED

2-7-2006

HB 852

SHORT TITLE Driver’s License Requirements

SB

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$10,000.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

No Responses Received as of 2-7-2006

SUMMARY

Synopsis of Bill

House Bill 852 appropriates $10,000,000 from the general fund to Taxation and Revenue De-

partment for the purpose of implementing certain changes and new requirements in the issuance

of temporary licenses, provisional licenses, driver’s licenses, instructional permits, and identifi-

cation cards in order to bring these functions of documentation, identification and licensing into

compliance with the federal REAL ID Act of 2005.

FISCAL IMPLICATIONS

The appropriation of $10,000,000 contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall

revert to the general fund.

SIGNIFICANT ISSUES

Citing increased threats from terrorism originating outside of the nation’s borders, the federal

Congress passed, with the executive’s signature, the REAL ID Act of 2005 which initiates sub-

stantial changes in states’ requirements regarding issuance of several forms of identification &

House Bill 852 – Page

2

driver’s licenses in order to combat fraudulent procurement as well as counterfeit production of

these documents by individuals utilizing them to conceal their identities, possibly concurrent to

terrorist activities.

Consequences of noncompliance with this act would initially occur on May 11, 2008, and in-

clude the inability of New Mexico residents to use New Mexico issued documents for accessing

federal facilities, commercial aircraft and departure gates and areas within airports, power plants

and other, unstated restrictions.

Accordingly, a new Section of Chapter 66, Article 5, NMSA 1978 is enacted to read;

Legislative Findings.—The legislature finds that:

A. the number of persons who enter the United States illegally has risen dramatically in

recent years and poses a serious security threat to the United States and New Mexico;

B. to combat the threat of those who are in the United States illegally and seek to terrorize

the American people and destroy its democracy, in 2005 congress passed and President George

W. Bush signed the REAL ID Act of 2005 that improves security for driver's licenses and per-

sonal identification cards;

C. the REAL ID Act of 2005 mandates that New Mexico require and verify valid documen-

tary evidence that a person applying for a driver's license or personal identification card

is a United States citizen or meets one of eight categories of lawful immigrant status;

D. New Mexico's compliance with the REAL ID Act of 2005 is vital to protecting New

Mexico from those who fraudulently obtain driver's licenses and personal identification cards

with the intention of carrying out terrorist attacks on the United States; and

E. if New Mexico does not comply with the REAL ID Act of 2005 by May 11, 2008, its

residents cannot use New Mexico driver's licenses or personal identification cards for accessing

federal facilities, boarding commercial aircraft, entering power plants or any other purpose as

determined by the secretary of homeland security."

As enacted, Section 66-5-9 a.) NMSA 1978 is amended such that applications for driving docu-

ments are now required to be accompanied by the requisite documentation, in addition to the

previously required fee.

As enacted, Section 66-5-9 b.) NMSA 1978 is amended such that new applications must contain

the applicants’ United States Citizenship, or lawful status, in addition to previously required full

name, and SSN or tax ID number. Similarly, a clause is stricken from the statutes that allowed

for foreign nationals’ applications to allow a tax ID number to substitute the SSN, regardless of

immigration status; as well as rescinding the authority of the secretary to establish alternate

documentation as a substitute for SSN or tax ID number.

As enacted, Section 66-5-9 c.) NMSA 1978 is created to read, such that applicants must submit,

in addition to the actual application, 1) a photo ID or, if non-photo, an ID with full name and

D.O.B., 2) a document which establishes the applicant’s age such a birth certificate, cert. copy of

birth certificate, a church or parish record stipulating the date of birth, or a verifiable copy of

church or parish document, or valid passport, 3) a document establishing proof of the applicants’

SSN, or document that shows applicant is not available, 4) a document with applicants name and

New Mexico residence, 5) a document that establishes the applicant is: a) lawful U.S. citizen, b)

House Bill 852 – Page

3

lawfully admitted alien with permanent or temporary status, c) conditional permanent residency,

d) an established and approved asylum granted, or refugee status, e) valid nonimmigrant visa, or

similar nonimmigrant visa status, f) application pending for asylum, g) approved deferred action

status, h) pending application for adjustment status to that of lawfully admitted alien, for perma-

nent residence or conditional permanent resident status.

As enacted, Section 66-5-9 d.) NMSA 1978 (currently c.) is amended to add to gender neutral

language.

As enacted, Section 66-5-9 e.) NMSA 1978 (currently d.) is amended to add to gender neutral

language, and clarity.

As enacted, Section 66-5-15 NMSA 1978 is amended and enhanced such that photographs must

be digital and contain a driver’s license number. Dates on issued licenses and dates on support-

ing documentation must have congruent ages specified. Licenses issued should carry features

and technology to comply with federal requirements, to include, physical security devices to pre-

vent fraudulent tampering, and counterfeiting, and machine readable technology with defined

minimum data elements (data stripes, etc.).

As enacted, Section 66-5-20 NMSA 1978 is amended and enhanced such that minor linguistic

and clarity issues are resolved, and the Department of Motor Vehicles is required to obtain and

secure paper copies of applications and requisite supporting documentation, described in Section

66-5-9 NMSA 1978, for a minimum of 7 years.

As enacted, Section 66-5-47 NMSA 1978 is amended and enhanced such that digital likenesses

of applicants are reproduced, and Section 66-5-47 b.) NMSA 1978 is removed from the statutes.

As enacted, Section 66-5-401 NMSA 1978 is amended and enhanced such that identification

document applications are now required to be accompanied by the requisite documentation, in

addition to the previously required fee.

As enacted, Section 66-5-402 NMSA 1978 is amended and enhanced such that eligibility for

identification cards are available to persons such that applicants must submit, in addition to the

actual application, 1) a photo ID or, if non-photo, an ID with full name and D.O.B., 2) a docu-

ment which establishes the applicant’s age such a birth certificate, cert. copy of birth certificate,

a church or parish record stipulating the date of birth, or a verifiable copy of church or parish

document, or valid passport, 3) a document establishing proof of the applicants’ SSN, or docu-

ment that shows applicant is not available, 4) a document with applicants name and New Mexico

residence, 5) a document that establishes the applicant is: a) lawful U.S. citizen, b) lawfully ad-

mitted alien with permanent or temporary status, c) conditional permanent residency, d) an estab-

lished and approved asylum granted, or refugee status, e) valid nonimmigrant visa, or similar

nonimmigrant visa status, f) application pending for asylum, g) approved deferred action status,

h) pending application for adjustment status to that of lawfully admitted alien, for permanent

residence or conditional permanent resident status.

As enacted, Section 66-5-404 NMSA 1978 is amended and enhanced such that upon loss, theft

or destruction of ID card, a new card is issued only after the fee and requisite documentation

previously listed in Section 66-5-402 NMSA 1978 is provided.

As enacted, Section 66-5-405 NMSA 1978 is amended and enhanced such that ID cards must

House Bill 852 – Page

4

include; the registrant’s full name, date of birth, physical New Mexico address, full face or front

view digital photo, a description of the registrant, signature, and ID card number. ID cards is-

sued should carry features and technology to comply with federal requirements, to include,

physical security devices to prevent fraudulent tampering, and counterfeiting, and machine read-

able technology with defined minimum data elements (data stripes, etc.).

New Sections of Chapter 66 are enacted, such that, prior to application of license or ID card,

SSN numbers are verified with the federal Social Security Administration. Additionally, de-

partment of motor vehicles is required to establish a fraudulent document recognition training

program and conduct security clearance requirements, and that training programs and security

clearance methods must be in accordance with federal requirements. Temporary and provisional

licenses, instructional permits, and ID cards issued prior to January 1, 2007 will be extended to

March 11, 2008, provided these were to expire after March 11, 2008. Holders of these docu-

ments may apply for new documents after January 1, 2007. The Taxation and Revenue Depart-

ment will waive application and documentation fees for these holders, as long as the expiration

dates remain the same as previously held cards. The Taxation and Revenue Department must

notify these holder between July 1, 2006 and December 31, 2006 of these provisions.

Ten Million dollars is appropriated in order to carry out the provisions of this act, in order to

bring New Mexico’s license and identification issuance program into compliance with security,

fraud prevention, data retention, data storage, and database linking requirements of the federal

REAL ID Act of 2005.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

No appropriation, nor amendments and enhancements will be made to ensure compliance with

the federal REAL ID Act of 2005.

PD/mt