BILL ANALYSIS
AB 811
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Date of Hearing: April 13, 2009
ASSEMBLY COMMITTEE ON BANKING AND FINANCE
Pedro Nava, Chair
AB 811 (John A. Perez) - As Introduced: February 26, 2009
SUBJECT : Identification documents.
SUMMARY : Makes clarifying changes to the checking cashing law
related to identification documents. Specifically, this bill :
1)Prohibits a check casher from requiring a customer to purchase
a check cashing identification card to access services.
2)Prohibits check cashers from selling any other from of
identification other than what is permitted to access check
cashing services.
3)Enhances penalties for making false identification cards to
$1,000 or imprisonment in the county jail for not more than
one year, or both fine and imprisonment.
EXISTING LAW :
1)Defines a "check casher" as a person or entity that for
compensation engages, in whole or in part, in the business of
cashing checks, warrants, drafts, money orders, or other
commercial paper serving the same purpose. "Check casher"
does not include a state or federally chartered bank, savings
association, credit union, or industrial loan company. [Civil
Code Section 1789.31]
2)Requires check cashers to obtain a permit from the Department
of Justice (DOJ). [Civil Code, Section 1789.37]
3)Allows a check casher to charge a fee of no more than $10 to
set up an initial account and issue an optional identification
card for providing check cashing services. A replacement
identification card may be issued at a cost not to exceed $5.
[Civil Code, Section 1789.35(b)]
4)Prohibits any person from manufacturing or selling an
identification document of a size and form substantially
similar to the identification cards or drivers licenses issued
by the Department of Motor Vehicles. Provides that a
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violation of these provisions is a misdemeanor punishable by a
fine of $1,000, which shall not be suspended, and the person
is required to perform not less than 24 hours of community
service during hours when the person is not employed and is
not attending school. [Vehicle Code Sections 13004.1 and
14610.1]
FISCAL EFFECT : Unknown.
COMMENTS :
California established the Check Casher Permit Program in 1995,
regulated by the DOJ. Every owner of a check cashing business
is required by law to obtain a permit from the DOJ. While not
assuring that a company is reputable, a valid permit signals
that the check casher business has at least followed the law to
be licensed. Check cashing businesses in the state are required
to post for clear public viewing a complete, detailed and
unambiguous schedule of all fees for cashing checks, drafts,
money orders or other commercial paper and for the initial
issuance of any identification card. Consumers also must be able
to clearly view a posted list of valid identification that is
acceptable in lieu of identification issued by the check casher.
A check casher basically engages in the business of cashing
checks, warrants, money orders or similar commercial paper for a
fee. The check casher law does not apply to state and federally
chartered banks, savings associations, credit unions and
industrial loan companies. Also excluded are retail stores that
may incidentally charge a fee not exceeding $2 to cash checks or
money orders as a service to customers.
Currently, check cashers are allowed to distribute
identification cards for customers to access checking cashing
services. These cards are suppose to be used in case a customer
does not have any other form of identification. Since, a lot of
customers are those without bank accounts and drivers's license,
check cashers consider another from of identifiaction necessary.
The identification has a picture, name, address, sex, hair,
eyes, height, weight, date of birth, social security number
(optional), date issued, signature and right thumbprint. Photo
identification is used as primarily secondary forms of
Identification or for a person to be identified in the case of
an emergency.
NEED FOR BILL:
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According to the author's office, "check cashers regularly sell
identification cards so that customers may be able to access
services. This practice is necessary if a customer has no other
form of identification, but some check cashing facilities do
coerce or compel people into purchasing identification cards.
These check cashing facilities target non-English proficient
people and advertise the sale of identification cards to this
vulnerable population. There are even cases where they
advertise the sale of identification that they claim is a valid
California Identification Card or California Drivers License.
Since these facilities target non-English proficient people, the
consumers are misled into purchasing fraudulent identification.
This bill removes any ambiguity in law by not permitting check
cashers to sell anything other than an optional identification
card intended to access service."
PREVIOUS LEGISLATION:
AB 1658 (Runner, Chapter 743, Statutes of 2007) increased the
fine for manufacturing false identification and licenses from
$500 to $1000 and added 24 hours of community service to be
performed while the violator was not attending school or
employed at a school.
SUGGESTIONS:
The author may want to add more substance to the measure, for
example:
Under existing law, check cashing businesses are required to
post for clear public viewing a complete, detailed and
unambiguous schedule of all fees for cashing checks, drafts,
money orders or other commercial paper and for the initial
issuance of any identification card. The author may want
require check cashing businesses to post these fees on their
websites as well.
In addition, the author may want to require the DOJ to post a
list on the DOJ website of all check cashing businesses who have
a permit.
Should this bill be substantially amended in the future the
committee may wish to exercise it's right to call it back at a
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later date.
REGISTERED SUPPORT / OPPOSITION :
Support
California Immigrant Policy Center (CIPC)
Opposition
None on file.
Analysis Prepared by : Kathleen O'Malley / B. & F. / (916)
319-3081