This bill proposes an amendment to Minnesota's transportation laws that would authorize the issuance of electronic driver's licenses and identification cards. Key provisions of the bill include:

1. Definitions:

   • Establishes definitions for terms such as "electronic credential," "physical credential," "relying party," and "provision."
   • An electronic credential is defined as a digital version of a driver's license or identification card that complies with industry standards set by the American Association of Motor Vehicle Administrators (AAMVA) and ISO/IEC standards.

2. Development and Rulemaking:

   • The Department of Public Safety's Driver and Vehicle Services Division (DVS) is authorized to contract with third parties to develop an electronic credential system.
   • The system must comply with current AAMVA standards.
   • DVS must adopt rules for managing and operating the system, as well as issuing electronic credentials.

3. Issuance and Expiration:

   • Electronic credentials can only be issued to individuals eligible for a physical credential.
   • The data in an electronic credential must match the individual's record with DVS.
   • Electronic credentials will expire according to the existing expiration rules for physical credentials.

4. Fees:

   • DVS may charge an additional fee for electronic credentials, on top of standard licensing fees.

5. Verification:

   • Entities using electronic credentials (relying parties) must authenticate them using secure encrypted communication.
   • They can only request the specific data elements necessary for a transaction.
   • Electronic credential data is subject to state data privacy laws.

6. Privacy and Tracking:

   • Relying parties must obtain consent from credential holders before retaining any electronic credential data.
   • The electronic credential system must prioritize user privacy and prevent tracking or data compilation without consent.
   • DVS can only disclose credential use information as required by law.

7. Acceptance of Electronic Credentials:

   • Drivers must still carry a physical credential when operating a motor vehicle.
   • The system must allow verification without requiring users to hand over their device.
   • Law enforcement may request to see a physical credential.
   • Laws requiring the surrender of a physical license to law enforcement do not apply to digital credentials stored on a personal device.

Overall, this bill establishes the legal framework for Minnesota to issue and regulate digital driver's licenses while ensuring privacy protections, security measures, and continued reliance on physical credentials for law enforcement and legal purposes.