SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Driver's License Modernization Act 
of 2002''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The terrorist attacks of September 11, 2001, 
        illuminated many flaws in the Nation's domestic security, 
        especially in its identification system.
            (2) Drivers' licenses and identification cards issued by 
        States have become the favored form of identity verification in 
        the United States and are used by government agencies and 
        private entities alike.
            (3) Inconsistent requirements between the States for 
        initial identity verification and insufficient verification of 
        identity documents have made the identification systems of 
        States a prime target for fraud and identity theft.
            (4) Different designs on drivers' licenses and 
        identification cards issued by States have created a market, 
        including sales on the Internet, for fake cards that look real 
        to those who are unfamiliar with the official designs.
            (5) Improving the security of State identification systems 
        will require taking advantage of new technology.
            (6) Identification card technologies that can accommodate 
        other government and private applications will provide the best 
        return on the investment in the new cards.
            (7) It is necessary to improve the security of drivers' 
        licenses and identification cards issued by States so that 
        multiple licensing of individuals will be eliminated, the 
        purchase of alcohol and tobacco products by underage 
        individuals will be reduced, and identity theft will be 
        severely reduced.

SEC. 3. STATE DRIVER'S LICENSE AND IDENTIFICATION CARD PROGRAMS.

    (a) In General.--Subchapter I of chapter I of title 23, United 
States Code, is amended by adding at the end the following:
``Sec. 165. State driver's license and identification card programs
    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Driver's license.--The term `driver's license' means 
        a license issued by the motor vehicle agency of a State to an 
        individual that authorizes the individual to operate a motor 
        vehicle on highways.
            ``(2) Identification card.--The term `identification card' 
        means an identification card issued by the motor vehicle agency 
        of a State to an individual.
    ``(b) State Driver's License and Identification Card Programs.--Not 
later than 5 years after the date of enactment of this section, each 
State shall have in effect a driver's license and identification card 
program under which the State meets the following requirements:
            ``(1) Computer chips in drivers' licenses and id cards.--
                    ``(A) In general.--A State shall embed a computer 
                chip in each new or renewed driver's license or 
                identification card issued by the State.
                    ``(B) Requirements for computer chips.--A computer 
                chip embedded in a driver's license or identification 
                card under this paragraph shall--
                            ``(i) contain, in electronic form, all text 
                        data written on the license or card;
                            ``(ii) contain encoded biometric data 
                        matching the holder of the license or card;
                            ``(iii) contain encryption and security 
                        software or hardware (or both) that prevents 
                        access to data stored on the chip without the 
                        express consent of the individual to whom the 
                        data applies, other than access by a Federal, 
                        State, or local agency (including a court or 
                        law enforcement agency) in carrying out its 
                        functions, or by a private entity acting on 
                        behalf of a Federal, State, or local agency in 
                        carrying out its functions;
                            ``(iv) accept data or software written to 
                        the license or card by non-governmental devices 
                        if the data transfer is authorized by the 
                        holder of the license or card; and
                            ``(v) conform to any other standards issued 
                        by Secretary.
            ``(2) Biometric data.--
                    ``(A) In general.--A State shall obtain biometric 
                data for the identification of each individual to whom 
                the State issues a new or renewed driver's license or 
                identification card and shall maintain such data.
                    ``(B) Requirement for biometric data.--Biometric 
                data obtained by a State under this paragraph shall be 
                of a type that can be matched to the license or card 
                holder only with the express cooperation of the license 
                or card holder.
            ``(3) Participation in linking of databases.--
                    ``(A) In general.--A State shall participate in a 
                program to link State motor vehicle databases in order 
                to provide electronic access by a State to information 
                contained in the motor vehicle databases of all other 
                States.
                    ``(B) Requirements for information.--A State motor 
                vehicle database shall contain, at a minimum, the 
                following information:
                            ``(i) All data fields printed on drivers' 
                        licenses and identification cards issued by the 
                        State, other than the encoded biometric data 
                        stored on such licenses and cards under 
                        paragraph (1).
                            ``(ii) Biometric data obtained under 
                        paragraph (2) from each individual to whom the 
                        State issues a new or renewed driver's license 
                        or identification card.
                            ``(iii) Motor vehicle drivers' histories, 
                        including motor vehicle violations, 
                        suspensions, and points on licenses.
            ``(4) Tamper-resistant security features.--A State shall 
        include on each new or renewed driver's license or 
        identification card issued by the State, multiple tamper-
        resistant security features or optical image layers, such as 
        biometric scans, barcodes, 3D, flip, or motion imaging, to 
        assist in visual verification that the license or card is 
        valid.
            ``(5) Documentation.--A State shall adopt and implement 
        procedures for accurately documenting the identity and 
        residence of an individual before issuing a driver's license or 
        identification card to the individual.
    ``(c) Guidelines.--
            ``(1) In general.--Not later than 6 months after the date 
        of enactment of this section, the Secretary shall issue 
        guidelines to assist States in complying with the requirements 
        of subsection (b).
            ``(2) Contents.--The guidelines issued under this 
        subsection shall contain, at a minimum, the following:
                    ``(A) Standards for the computer chip technology 
                required for compliance with subsection (b)(1), 
                including--
                            ``(i) standards to ensure interoperability 
                        and the ability to store multiple applications 
                        created by government agencies and private 
                        entities and transmitted to the license or card 
                        with the express consent of the license or card 
                        holder; and
                            ``(ii) standards for the encoded biometric 
                        data that must be contained on each computer 
                        chip and requirements to ensure that such 
                        biometric data will be used only for matching 
                        the license or card to the presenter and will 
                        not be stored in a central database.
                    ``(B) Standards for biometric data to be obtained 
                from applicants for new or renewed State drivers' 
                licenses and identification cards under subsection 
                (b)(2) and standards for maintaining such data.
                    ``(C) Standards for linking State motor vehicle 
                databases under subsection (b)(3) and standards for the 
                information to be contained in the databases.
                    ``(D) Standards for security features or optical 
                image layers to be placed on State drivers' licenses 
                and identification cards under subsection (b)(4).
                    ``(E) Standards for documentation of the identity 
                and residence of an individual under subsection (b)(5), 
                including a list of acceptable documents for 
                establishing the identity and residence of an 
                individual and procedures for verifying the 
                authenticity of the documents.
                    ``(F) Standards for a numbering system for State 
                drivers' licenses and identification cards that 
                prevents duplication between States and does not make 
                use of the license or card holder's Social Security 
                number.
            ``(3) Consultation.--Guidelines issued by the Secretary 
        under this subsection shall be developed in consultation with 
        the American Association of Motor Vehicle Administrators, the 
        General Services Administration, and the National Institute of 
        Standards and Technology.
            ``(4) Administrative procedures.--The Secretary may issue 
        guidelines under this subsection without regard to subchapter 
        II of chapter 5 of title 5.
    ``(d) Grants.--
            ``(1) In general.--The Secretary may make grants to each 
        State to assist the State in developing and implementing a 
        driver's license and identification card program that meet the 
        requirements of subsection (b).
            ``(2) Grants for linking of state motor vehicle 
        databases.--The Secretary may make separate grants under this 
        subsection to each State to assist the State in developing and 
        implementing computer technologies and databases required to 
        link State motor vehicle databases under subsection (b)(3).
            ``(3) Applications.--A State seeking a grant under this 
        subsection shall submit to the Secretary an application that is 
        in such form and contains such information as the Secretary may 
        require. The Secretary shall evaluate such applications in the 
        order received and award grants upon approval of an 
        application.
            ``(4) Federal share.--The Federal share of the cost of 
        activities funded using amounts from a grant received by a 
        State under this subsection shall be 100 percent or a lesser 
        percentage determined by the Secretary.
            ``(5) Technical assistance from gsa.--For purposes of 
        section 201(a) of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 481(a)), a State carrying out 
        activities using amounts from a grant under this section shall 
        be treated as an executive agency and part of the Department of 
        Transportation when carrying out such activities. For purposes 
        of carrying out such activities, the Secretary shall, at the 
        request of a State, enter into an agreement for the 
        acquisition, on behalf of the State, of any goods, services, or 
        supplies available to the Secretary from the General Services 
        Administration, including acquisitions from prime venders. All 
        such acquisitions shall be undertaken through the most 
        efficient and speedy means practicable, including through 
        electronic ordering arrangements.
            ``(6) Reports.--The Secretary shall require a State that 
        receives a grant under this subsection to submit to the 
        Secretary, not later than 1 year after the date of 
        implementation of the activities funded using the amounts of 
        the grant, a report on the results of the activities.
            ``(7) Repayment.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), if the Secretary determines that a 
                State receiving a grant under this subsection has not 
                met the requirements of subsection (b) on or before the 
                last day of the 5-year period beginning on the date of 
                enactment of this section, the Secretary may require 
                the State to repay, in whole or in part, the total 
                amount received by the State in grants under this 
                subsection.
                    ``(B) Grants for linking of state motor vehicle 
                databases.--In the case of a grant received under 
                paragraph (2), if the Secretary determines that a State 
                receiving the grant has not met the requirements of 
                subsection (b)(3) on or before the last day of the 5-
                year period beginning on the date of enactment of this 
                section, the Secretary may require the State to repay, 
                in whole or in part, the total amount received by the 
                State in grants under paragraph (2).
            ``(8) Authorization of appropriations.--There is authorized 
        to be appropriated--
                    ``(A) $100,000,000 for making grants under 
                paragraph (1); and
                    ``(B) $200,000,000 for making grants under 
                paragraph (2).
Such sums shall remain available until expended.
    ``(e) Transition From National Driver Register.--After the last day 
of the 5-year period beginning on the date of enactment of this 
section, no amounts may be appropriated to carry out chapter 303 of 
title 49. The Secretary shall provide for the orderly transition from 
the National Driver Register maintained under such chapter 303 to the 
program established under subsection (b)(3).''.
    (b) Conforming Amendment.--The analysis for such chapter is amended 
by adding at the end of the items relating to subchapter I the 
following:

``165. State driver's license and identification card programs.''.

SEC. 4. FORGERY OR FALSE USE OF DRIVER'S LICENSE OR IDENTIFICATION 
              CARD.

    (a) In General.--Title 18, United States Code, is amended by 
inserting after chapter 123 the following:

    ``CHAPTER 125--STATE DRIVERS' LICENSES AND IDENTIFICATION CARDS

``Sec.
``2731. Definitions.
``2732. Forgery, fraudulent acquisition, or false use of driver's 
                            license or identification card.
``Sec. 2731. Definitions
    ``In this chapter, the terms `driver's license' and `identification 
card' have the meanings given such terms in section 165 of title 23.
``Sec. 2732. Forgery, fraudulent acquisition, or false use of driver's 
              license or identification card
    ``Whoever--
            ``(1) falsely makes, forges, counterfeits, mutilates, or 
        alters any driver's license or identification card or 
        instrument purporting to be a driver's license or 
        identification card, with intent that the license or card may 
        be used,
            ``(2) except by lawful authority, makes a template or 
        similar device from which there may be printed a counterfeit 
        driver's license or identification card,
            ``(3) obtains or assists in obtaining a driver's license or 
        identification card through willful misrepresentation of 
        identity, presentation of falsified identity documents such as 
        birth certificates or passports, or other fraudulent 
        representation,
            ``(4) tampers with, alters, or destroys a computer chip 
        embedded in a driver's license or identification card or data 
        contained on the computer chip, or
            ``(5) except by lawful authority, accesses data contained 
        on a computer chip embedded in a driver's license or 
        identification card,
shall be fined under this title, imprisoned not more than 20 years, or 
both.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
part I of title 18, United States Code, is amended by adding at the end 
the following:


``127. State drivers' licenses and identification cards.....    2731''.

SEC. 5. INNOVATIVE USES PILOT PROGRAM.

    (a) In General.--The National Science Foundation may make grants to 
States for the implementation of programs that utilize computer chips 
embedded in drivers' licenses and identification cards (as such terms 
are defined in section 165 of title 23, United States Code) for 
innovative uses that enhance government services.
    (b) Innovative Uses.--The innovative uses referred to in subsection 
(a) may include the issuance of food stamps, voter registration, and 
other digital government applications that streamline and simplify 
State services to residents, including uses authorized under the 
Electronic Signatures in Global and National Commerce Act (15 U.S.C. 
7001 et seq.).
    (c) Federal Share.--The Federal share of the cost of activities 
funded using amounts from a grant received under this section shall not 
exceed 50 percent.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated for making grants under this section $15,000,000. Such 
sums shall remain available until expended.
Driver's License Modernization Act of 2002 - Amends Federal highway provisions to require each State, within five years, to have in effect a driver's license and identification card program under which a State shall: (1) include in each new or renewed license or card a computer chip containing card or license text data in electronic form, biometric data on the license or card holder, and security features or optical image layers to assist in visual verification that the license or card is valid; (2) obtain and maintain such biometric data; (3) participate in a program to link State motor vehicle databases electronically; and (4) implement procedures for accurately documenting the identity and residence of an individual before issuing a license or card.Authorizes grants to each State: (1) by the Secretary of Transportation to assist in developing and implementing such program and computer technologies and databases required to link State motor vehicle databases; and (2) the National Science Foundation for implementing programs that utilize such embedded computer chips for innovative uses that enhance government services.Sets forth requirements regarding transition from the National Driver Register.Prohibits forgery or false use of, tampering with, or unlawfully accessing data in a driver's license or identification card.
To amend title 23, United States Code, to establish standards for State programs for the issuance of drivers' licenses and identification cards, and for other purposes.