SENATE BUDGET AND APPROPRIATIONS COMMITTEE STATEMENT TO SENATE, No. 1297 with committee amendments STATE OF NEW JERSEY DATED: OCTOBER 7, 2024 The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 1297. As amended and reported, this bill requires the Chief Administrator of the New Jersey Motor Vehicle Commission (commission) to create and issue, in addition to the printed, hard- copy driver’s license or identification card issued by the commission, a mobile driver’s license or mobile identification card to an individual who voluntarily requests such electronic documentation. Under the bill, a mobile driver’s license includes an electronic basic driver’s license, electronic motorcycle license, and electronic probationary driver’s license that is accessible on a mobile electronic communication device and includes all information found on a printed, hard-copy basic driver’s license, motorcycle license, or probationary driver’s license. The commission may charge and collect a reasonable fee for the issuance of a mobile driver’s license or mobile identification card. When issuing a mobile driver’s license and mobile identification card, the commission is required to prevent and detect the alteration, duplication, counterfeiting, photographing, forging, or other modification of the mobile driver’s license and mobile identification card. The commission is also required to include features in the mobile driver’s license and mobile identification card to ensure the security and integrity of these documents. Under the bill, the commission is to allow a person with a mobile driver’s license or a mobile identification card, or a person applying for such documentation, to update the person’s motor vehicle record. The changes are to immediately become part of the person’s official motor vehicle record. The bill provides that a person may possess a mobile driver’s license when driving a motor vehicle in this State and may exhibit a mobile driver’s license when requested by a police officer or judge. However, the bill specifies that a digital copy, photograph, or image of a driver's license that is not issued by the commission as a mobile driver’s license and downloaded on a mobile electronic communication device, pursuant to the requirements of the commission, is not a valid electronic form of a driver’s license. 2 COMMITTEE AMENDMENTS : The committee amended the bill to: (1) provide that a driver’s license may be displayed or provided in either printed, hard-copy form or electronic form, rather than in either paper or electronic form, when requested by a police officer or judge; (2) provide that when a driver’s license is displayed in electronic form, the license is to be presented in such a manner that there is no requirement to display or relinquish possession of the person’s electronic device; (3) specify that the mobile driver’s license or mobile identification card created by the commission is in addition to the printed, hard-copy driver’s licenses and identification cards already issued by the commission; (4) remove a provision that provides that changes made to a person’s motor vehicle record takes precedence over information provided on a printed, hard-copy driver’s license and identification card; (5) specify that a digital copy, photograph, or image of a driver's license that is not issued by the commission as a mobile driver’s license and downloaded on a mobile electronic communication device pursuant to the requirements of the commission is not a valid electronic form of a driver’s license under the bill; and (6) provide that the bill takes effect 36 months, rather than 72 months, after enactment. FISCAL IMPACT: The Office of Legislative Services (OLS) finds that the State will incur indeterminate start-up costs to create and issue mobile driver’s licenses or identification cards, including the costs to design these electronic documents and other costs associated with information technology changes that such electronic documents will require. Because the OLS is unable to predict how the program will be implemented, does not have information about associated information technology hardware and software costs, and notes that the bill will not take effect until three years after enactment, the cost and revenue estimates for the bill, as well as their timing, are indeterminate. Beginning three years after the date of enactment, the bill would also result in indeterminate costs for the issuance of the mobile driver’s licenses or mobile identification cards as well as any continuing information technology costs associated with the maintenance of the mobile driver’s license or mobile identification card system. These costs will be offset to a certain degree by annual revenues collected by the Motor Vehicle Commission for the electronic documents. The OLS is unable to determine the likely amounts of these revenues because the bill gives the commission discretion in setting fees for the mobile driver’s licenses or mobile identification cards, so long as the fees are reasonable.