The bill, written by California State Senator Joe Simitian (D), would have been the first to address radio frequency identification technology (RFID) use in identification documents issued by state and local governments and agencies by embedding the chip.
The governor called the bill premature, in a statement, asserting "the federal government, under the REAL ID Act, has not yet released new technology standards to improve the security of government ID cards."
Rejecting the bill, Schwarzenegger wrote in a letter to Members of the California State Senate, that "SB 768 may impose requirements in California that would contradict the federal mandates soon to be issued."
Schwarzenegger said, the bill may inhibit various state agencies from procuring technology that could enhance and streamline operations, reduce expenses and improve customer service to the public and may unnecessarily restrict state agencies.
"In addition, I am concerned the bill's provisions are overbroad and may unduly burden the numerous beneficial new applications of contactless technology," he said.