H.R. 1457 would require states to permit consumers to open Internet-based bank accounts with a scanned photograph of their driver’s license or other personal identification. Under current law, fewer than 10 states prohibit such actions. Because the bill would exclusively affect state laws, CBO estimates that it would have no effect on the federal budget.
Enacting H.R. 1457 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 1457 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.
H.R. 1457 would preempt state laws that conflict with the bill’s provisions; those provisions would allow financial institutions to record information from a driver's license or personal identification card and store the information when verifying the authenticity of the documents, verifying a person’s identity, or complying with legal requirements.
Although that preemption would limit the application of state laws and regulations, CBO estimates that H.R. 1457 would impose no duty on state, local, or tribal governments that would result in additional spending or a loss of revenues. Consequently, the cost of the mandate would not exceed the threshold established in the Unfunded Mandates Reform Act (UMRA) for intergovernmental mandates ($78 million in 2017, adjusted annually for inflation).
The bill contains no private-sector mandates as defined in UMRA.