This bill proposes the introduction of electronic driver's licenses in Minnesota, establishing a new section in the Minnesota Statutes, chapter 171. It defines key terms related to electronic credentials, such as "credential," "credential holder," and "relying party," and outlines the responsibilities of the Department of Public Safety's Driver and Vehicle Services Division (DVS) in developing and managing an electronic credential system. The bill allows DVS to issue electronic credentials to individuals eligible for physical credentials, mandates compliance with American Association of Motor Vehicle Administrators (AAMVA) standards, and permits DVS to charge fees for these electronic credentials.

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