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NJ Assembly Bill 3518

Legislation

State: New Jersey
Signed: July 23, 2025

Effective: July 23, 2025
Chapter: 115

Summary

New Jersey becomes the latest state to enact provisions authorizing the use of digital driver’s licenses.

Affects

Adds as yet uncodified sections to the New Jersey Statutes Annotated.

Changes
  1. Defines terms.
  2. Authorizes the Motor Vehicle Commission (MVC) to issue digital driver’s licenses and ID cards to eligible individuals upon request, in addition to printed versions.
  3. Permits the MVC to charge and retain a reasonable fee for digital licenses and cards.
  4. Requires digital licenses and ID cards to include features that protect personal information and ensure device control remains with the holder.
  5. Mandates that remote access to digital ID information must be limited, consensual, and equivalent to what’s on a printed license.
  6. Prohibits digital applications from collecting unnecessary data, including location information.
  7. Ensures encryption and high security standards for all data transmissions and mobile apps involved with digital driver’s licenses and IDs
  8. Prohibits contracts from allowing any third-party access, retention, or sale of personal data beyond what is necessary for service delivery and requires deletion of data within 30 days after contract termination.
  9. Requires the MVC to establish processes to prevent fraud, duplication, and tampering with digital credentials.
  10. Limits the MVC’s ability to revoke access to a digital license or ID to specific situations such as fraud, user request, or security compromise.
  11. Applies existing laws governing printed licenses and records to digital licenses and associated records.
  12. Deems application for a digital license or ID as informed consent for data sharing solely for issuance purposes.
  13. Allows users to update their official motor vehicle record, including address and organ donor status, via the digital system.
  14. Ensures accessibility of digital licenses and IDs for individuals with disabilities.
  15. Directs the MVC, in consultation with the Attorney General, to educate the public on the availability and use of digital credentials.
  16. Specifies that digital wallets must authenticate verifiers, allow selective disclosure, and show the user what data is being requested and by whom.
  17. Requires digital wallets to log all data requests and disclosures, with logs accessible only to the holder, who may delete them.
  18. Allows holders to use any secure digital wallet meeting broadly accepted standards.
  19. Prohibits verifiers and wallet providers from retaining or misusing data beyond what is strictly necessary or allowed by law.
  20. Prohibits anyone — including law enforcement — from taking physical possession of a user’s electronic device to verify identity.
  21. Clarifies that voluntary surrender of a device does not imply consent to search beyond what’s shown on the digital license or ID.
  22. Restricts remote access to digital credentials to only what the user consents to and what is visible on a printed card.
  23. Prohibits requiring a digital credential in lieu of a printed one and guarantees holders the right to use either format.
  24. Bans differential treatment or discrimination against those who choose not to use digital credentials, except where required for online services.
  25. Requires minimal data disclosure for verifying transactions (e.g., yes/no answers for age verification).
  26. Applies existing consumer data protections to digital license presentations.
  27. Prohibits government agencies from requiring digital credentials or offering different service levels based on ID format.
  28. Requires the MVC to post information on cybersecurity risks and incident reporting procedures for digital IDs.
  29. Mandates that all verifiers and wallet providers report cybersecurity incidents to the MVC and state homeland security office.
  30. Requires the MVC to issue a report within 2 years detailing adoption rates, privacy impacts, incident counts, and equity considerations, along with policy recommendations.
  31. Authorizes civil penalties against verifiers that violate key privacy and anti-discrimination protections, enforced by the Attorney General.
  32. Permits the Attorney General to issue guidance and regulations to implement and enforce the law.
  33. Amends R.S.39:3-29 to recognize digital licenses as valid forms of identification and clarifies that displaying one does not constitute consent for search or data access.
Analysis

New Jersey becomes the latest state to enact an authorization for the public to obtain digital (mobile) driver's licenses and state IDs. It is a robust new law with many protections for consumers. New Jersey’s new law authorizes the MVC to issue digital driver’s licenses and ID cards alongside printed versions. It requires strong privacy and security protections, including encryption, selective data sharing, and a ban on collecting unnecessary information. Users retain control of their devices and are never required to surrender them for ID verification. The law ensures digital IDs are accessible, optional, and may not be used to discriminate against those who prefer printed IDs.

Digital wallets must meet security standards, allow users to control what data is shared and with whom, and log all access attempts. The law restricts data use by verifiers and wallet providers, mandates cybersecurity incident reporting, and imposes penalties for violations. The MVC must educate the public and report on adoption, privacy impacts, and equity within two years.

The new law takes effect 44 months after enactment, but the Chief Administrator of the Commission and Attorney General may take any administrative action in advance of the date as necessary for timely implementation of the act.

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