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). The Division of Motor Vehicles (DMV) is tasked with issuing electronic credentials to individuals eligible for physical credentials, ensuring that the data elements of these electronic credentials match existing records. The bill outlines the definitions of key terms, such as "credential," "credential holder," and "electronic credential system," and mandates that the DMV may contract with external entities to develop the necessary electronic credential system that complies with state and federal standards. Additionally, the bill stipulates that electronic credential holders must carry their physical credentials while operating a vehicle and provides guidelines for the verification process and data privacy.

The bill also emphasizes the importance of privacy and data security, requiring that relying parties only retain electronic credential data with the explicit consent of the credential holder. It mandates that the electronic credential system must comply with existing privacy laws and not track or compile information without consent. The commissioner of the Department of Safety is authorized to adopt administrative rules for the management 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, totaling approximately $2,080,000 in FY 2026 and ongoing costs in subsequent years.