This bill establishes a new chapter in the law, Chapter 263-A, which mandates the Division of Motor Vehicles (DMV) to create mobile drivers' licenses (MDL) and non-driver identification cards (MID), along with an electronic management system to oversee their use. The bill defines key terms such as "credential," "credential holder," and "electronic credential," and outlines the process for issuing electronic credentials to individuals eligible for physical credentials. It also allows the DMV to contract with entities to develop the electronic credential system, which must comply with state and federal standards. The bill stipulates that electronic credentials must be authenticated by relying parties and that data security and privacy protections must be in place.

Additionally, the bill includes provisions regarding the acceptance and verification of electronic credentials, emphasizing that physical credentials must be carried while operating a vehicle and that law enforcement can request physical credentials upon demand. It also mandates that relying parties can only retain electronic credential data with the holder's consent and must inform them about the use and retention period of their data. The bill requires the commissioner of the Department of Safety to adopt necessary administrative rules for the management of the electronic credential system. The act is set to take effect on January 1, 2026, and does not provide funding, with estimated expenditures of $2,080,000 in FY 2026 and ongoing costs in subsequent years.