MN SF166

Commissioner of Public Safety must begin issuing REAL ID Act-compliant driver's licenses and Minnesota identification cards by October 1, 2018, with optional early reissuance at no fee for eligible holders through October 31, 2020.

Creates tiered identification system with three options: REAL ID-compliant licenses/cards, noncompliant licenses/cards (marked "not for federal identification"), and enhanced licenses/cards for citizens, with different fees and documentation requirements for each.

Establishes limits on federal data sharing for noncompliant licenses by prohibiting new electronic dissemination of data outside Minnesota and new external validation systems, while maintaining compliance with driver's license compact and federal commercial driver's license requirements.

Requires criminal background checks for driver's license agents and relevant employees, independent biennial audits of driver and vehicle services data systems, and notification to legislative committees of any federal REAL ID Act requirement changes.

Appropriates $30,000 annually for fiscal years 2018-2019 from general fund and $12,000,000 from driver services operating account in fiscal year 2019 for REAL ID implementation, including $3,000,000 to reimburse driver's license agents for lost fee revenue.