5080-S2

AN ACT Relating to use of electronic security systems to prevent fraud involving driver's licenses and identicards; creating new sections; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that: (1) There is an unreasonably high level of fraudulent transactions involving the use of documents that misrepresent the identity of the person using them; (2) this fraud extends into the commercial and public assistance sectors and causes taxpayers, businesses, and government to experience financial losses which otherwise could and should be avoided; (3) losses to government assistance programs due to fraudulent transactions reduce the support available to the truly needy and such losses must be reduced in order to make a more efficient and humane assistance system available; (4) driver's licenses and identicards issued by the department of licensing have become the most widely accepted forms of personal identification in use by Washington citizens; and (5) there is a significant need to improve the verifiability of documents issued by the state of Washington that are commonly used for identification purposes.

NEW SECTION. Sec. 2. (1) The department of licensing is directed to undertake a study of the methods and technology currently available and under development that are designed to provide an electronic data-based system of government-issued documents that are used as drivers' licenses or state-issued identification cards and that provide extremely high assurances that: (a) The holder of the document is the person identified on the document; and (b) that each person is only able to obtain one license or identicard. The department of licensing shall have authority to hire a consultant to perform the study if necessary.

(2) The study shall include an examination of:

(a) The existing and developing technology for improving identity verification by the use of biometric identifiers;

(b) The experience in other jurisdictions that have implemented biometric identifier systems; and

(c) The identification needs of the various jurisdictions, organizations, and industries in the state, and how a biometric approach to enhancing the reliability of identification could affect the business practices of those entities.

(3) The study shall make a recommendation of a biometric approach to be incorporated into the department of licensing's procedures for issuance, renewal, and replacement of drivers' licenses and identicards. In regard to the recommendation, the study shall examine and report on:

(a) The impact on customers of the department of licensing implementing the recommended biometric approach, including analysis of whether licenses or identicards can continue to be issued instantly or should return to a central issuance procedure. The impact on customers shall include analysis of the amount of time to obtain issuance or renewal of a license or identicard and customer reaction to submitting to a finger scan;

(b) The impact, costs, and efficiencies of the recommended approach on the business practices of affected state agencies and the private sector;

(d) The likelihood of success of implementing a biometric approach to enhance verifiability of identification;

(e) The benefits, costs, and risks for affected parties associated with the proposed approach;

(f) The methods of funding for any changes in practices and addition of technology needed to achieve the goal of improved verifiability of identification, including the availability of federal or other grant money;

(g) The length of time necessary to implement the approach recommended by the study;

(h) The methods of mitigating adverse consequences that might result from changes;

(i) How to allow the department of social and health services to access and utilize the improvements in identification for purposes of verifying the identity of persons who apply for or receive public assistance;

(j) Whether the biometric approach will have the potential to assist the department of social and health services in implementation of an electronic benefit transfer program, including whether the biometric approach can assist in ensuring electronic benefit transfer card security;

(k) The coordination of programs and technology advances with other states;

(l) An evaluation of the use, application, costs, and efficiencies that law enforcement and courts can expect from the recommended biometric approach and if fingerprinting is the recommmended biometric approach, an evaluation of potential limitations that should be placed on law enforcement prior to accessing the fingerprint data base; and

(m) The potential impact of the biometric approach on the availability and use of fraudulent identification in retail and banking transactions, and estimates of the amount of fraud losses that the approach might prevent.

(4) The study shall be completed and the department shall report its conclusions and recommendations to the legislature by January 1, 1997.

(5) The department shall form a steering committee to monitor the progress of the study and assure its quality. The director of licensing shall chair the steering committee, and the committee shall include representatives from each of the following agencies: The office of financial management; the department of information services; the Washington state patrol; the department of social and health services; and the office of the administrator for the courts. The steering committee shall also include representatives from the Washington association of sheriffs and police chiefs, the retail and banking industries, and such other groups as the department of licensing finds necessary to provide review, advice, and guidance on the study.

NEW SECTION. Sec. 3. The sum of three hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1997, from the general fund to the department of licensing for the purposes of this act.