This bill proposes the introduction of electronic drivers' licenses in Minnesota, establishing a framework for their development, issuance, and management under a new section in Minnesota Statutes, chapter 171. The Department of Public Safety's Driver and Vehicle Services Division (DVS) is authorized to contract with entities to create an electronic credential system that complies with the American Association of Motor Vehicle Administrators (AAMVA) standards. The bill outlines definitions for key terms, the process for issuing electronic credentials, and the fees associated with them. It also mandates that data elements for electronic credentials must match those in the holder's current DVS record and sets expiration guidelines in line with existing laws.

Additionally, the bill emphasizes the importance of privacy and security in the use of electronic credentials. It requires that relying parties authenticate these credentials using secure methods and only retain necessary data with the consent of the credential holder. The legislation stipulates that while operating a vehicle, a credential holder must possess a physical credential and provides specific guidelines regarding interactions with law enforcement. The effective date for the implementation of this section is set for July 1, 2026, with certain provisions taking effect immediately following final enactment.