This bill establishes a new chapter in the law, specifically Chapter 263-A, which focuses on the creation and management of mobile drivers' licenses (MDL) and non-driver identification cards (MID) by the Division of Motor Vehicles (DMV). The bill mandates the DMV to develop an electronic credential system that allows individuals to carry their driver’s licenses and identification credentials digitally on mobile devices. Key definitions are provided, including terms such as "credential," "credential holder," and "electronic credential," which clarify the scope and functionality of the new system. The bill also outlines the issuance and lifecycle management of electronic credentials, stipulating that they can only be issued to individuals eligible for a physical credential and that the data elements must match existing records.

Additionally, the bill includes provisions for the acceptance and verification of electronic credentials, emphasizing the importance of privacy and data security. Relying parties, such as law enforcement, must authenticate electronic credentials according to established standards and are restricted in their retention of data elements without explicit consent from the credential holder. The bill also allows the commissioner of the Department of Safety to adopt necessary administrative rules for the operation of the electronic credential system. The act is set to take effect on January 1, 2026, and while it does not provide funding, it outlines estimated expenditures for implementation and maintenance over the following years.