BILL ANALYSIS AB 811 Page 1 Date of Hearing: May 13, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 811 (John A. Perez) - As Amended: May 5, 2009 Policy Committee: Banking and Finance Vote: 11-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill increases penalties for manufacturing false identification cards and makes changes to existing law with respect to check cashers. Specifically, the bill: 1)Increases the punishment for manufacturing or selling an identification document substantially similar to the ID cards issued by the Department of Motor Vehicles. Existing law provides for a $1,000 fine, which cannot be waived, and 24 hours of community service. This bill provides for a $1,000 fine, 24 hours of community service, and, at the discretion of the court, up to one year in the county jail. No part of the fine or community service can be waived. 2)Prohibits a check casher from selling ID cards other than the optional check cashing authorized under existing law, from misrepresenting the use of the optional check cashing card, or from charging an additional fee (beyond the currently authorized $10 set up-fee) for the optional card. FISCAL EFFECT Minor and absorbable enforcement costs to the Department of Corporations. Local costs, if any, are not reimbursable. COMMENTS 1)Background . Current law defines a "check casher" as an entity that, for compensation, engages in the business of cashing checks, warrants, drafts, money orders, or other commercial paper. "Check casher" does not include a state or federally AB 811 Page 2 chartered bank, savings association, credit union, or industrial loan company. Existing law also regulates fees that may be charged by these entities for cashing checks to the greater of $3.00 or 3% of the amount of the check if ID is provided by the customer or 3.5% without ID. A check casher may charge a fee of up to $10 to set up an account and issue an optional identification card for the services. 2)Purpose . This bill is intended to place tighter restrictions on the sale and representation of check cashing cards, and increase penalties for illegal manufacturing of false identification. The author believes these changes are necessary in light of the marketing of false ID's by some individuals associated with the check cashing industry. Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081