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