BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 811|
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                                 THIRD READING


          Bill No:  AB 811
          Author:   John A. Perez (D)
          Amended:  7/23/09 in Senate
          Vote:     21

           
           SENATE PUBLIC SAFETY COMMITTEE  :  6-0, 7/14/09
          AYES:  Leno, Benoit, Hancock, Huff, Steinberg, Wright
          NO VOTE RECORDED:  Cedillo
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  79-0, 5/26/09 - See last page for vote


           SUBJECT  :    Check cashing business: identification cards  
          and related 
                      documents

          SOURCE  :     Author


           DIGEST  :    This bill (1) prohibits a check casher from  
          requiring a customer to use an identification card issued  
          by the check casher, (2) prohibits a check casher from  
          selling any form of identification other than a card for  
          use only at that business, and (3) provides that the  
          penalties for making a false Department of Motor  
          Vehicle-style identification card, may include a jail term  
          of up to one year. 

           ANALYSIS  :    Existing law defines a "check casher" as a  
          person or entity that for compensation engages, in whole or  
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          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.  (Section 1789.31 of the  
          Civil Code)

          Existing law requires check cashers to obtain a permit from  
          the Department of Justice (DOJ).  (Section 1789.37 of the  
          Civil Code)

          Existing law 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.  (Section 1789.35(b) of the  
          Civil Code)

          This bill prohibits a check casher from requiring a  
          customer to purchase a check cashing identification card to  
          access services.

          This bill prohibits check cashers from selling any other  
          form of identification other than what is permitted to  
          access check cashing services.  

          Existing law provides that any person who falsely  
          personates another person in his or her private or official  
          capacity is guilty of an alternate felony-misdemeanor.   
          False personation generally involves subjecting the person  
          whose identity was assumed to prosecution, suit or to pay a  
          debt.  (Section 529 of the Penal Code)

          Existing law provides that it is an alternative  
          felony-misdemeanor for a person to willfully obtain the  
          personal identifying information of another person and to  
          use such information to obtain, or attempt to obtain,  
          credit, goods, or services in the name of the other person  
          without consent.  (Section 530.5(a) of the Penal Code)

          Existing law defines "personal identifying information" to  
          mean name, address, mother's maiden name, place of  
          employment, date of birth, unique biometric data including  
          fingerprint, facial scan identifiers, voiceprint, retina or  

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          iris image, or other unique physical representation, unique  
          electronic data including information identification number  
          assigned to the person, address or routing code,  
          telecommunication identifying information or access device,  
          information contained in a birth or death certificate,  
          following identifying numbers:  telephone, health  
          insurance, credit card, taxpayer identification, school  
          identification, state or federal driver's license, state or  
          federal identification number, social security, employee  
          identification number, professional or occupational, demand  
          deposit account, savings account, checking account, PIN or  
          password, alien registration, government passport, or any  
          form of identification that is equivalent to those listed  
          above.  (Section 530.55 of the Penal Code)

          Existing law provides that every person who, with the  
          intent to defraud, acquires or retains possession of the  
          personal identifying information of another person, and who  
          has previously been convicted of a violation of provisions  
          proscribing identity theft, or who, with the intent to  
          defraud, acquires or retains possession of the personal  
          identifying information of 10 or more other persons, shall  
          be punished by a fine, by imprisonment in a county jail not  
          to exceed one year, or by both a fine and imprisonment, or  
          by imprisonment in the state prison.  (Section 530.5(b)(3)  
          of the Penal Code)

          Existing law provides that any person who, with intent to  
          defraud, sells, transfers, or conveys the personal  
          identifying information of another person shall be punished  
          by a fine, by imprisonment in a county jail not to exceed  
          one year, or by both a fine and imprisonment, or by  
          imprisonment in the state prison.  Further, any person who,  
          with actual knowledge that the personal identifying  
          information of a specific person will be used in violation  
          of identity theft provisions who sells, transfers, or  
          conveys that personal identifying information shall be  
          punished by a fine or by both a fine and imprisonment, or  
          by imprisonment in the state prison.  (Section 530.5(d) of  
          the Penal Code)

          Existing law prohibits any person from manufacturing or  
          selling an identification document of a size and form  
          substantially similar to the identification cards or  

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          driver's licenses issued by the Department of Motor  
          Vehicles (DMV).  A violation of these provisions is a  
          misdemeanor, punishable by a fine of $1,000, "no part of  
          which shall be suspended."  The convicted person "shall  
          [also] be required to perform not less than 24 hours of  
          community service during hours when the person is not  
          employed and is not attending school."  (Sections 13004.1  
          and 14610.1 of the Vehicle Code)

          This bill provides that a violation of these provision  
          changes the punishment for that crime to a fine between  
          $250 and $1,000, 24 hours of community service, and, in the  
          court's discretion, imprisonment in a county jail for not  
          more than one year.  This bill also provides that the court  
          may place the defendant on probation, with conditions that  
          include, but are not limited to, a fine and community  
          service.  This bill provides that no part of the fine or  
          community service shall be suspended or waived.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/18/09)

          California Immigrant Policy Center
          Consumer Federation of California


           ARGUMENTS IN SUPPORT  :    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  

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          identification card intended to access service."


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Jones, Knight, Krekorian, Lieu,  
            Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning,  
            Nava, Nestande, Niello, Nielsen, John A. Perez, V. Manuel  
            Perez, Portantino, Price, Ruskin, Salas, Saldana, Silva,  
            Skinner, Smyth, Solorio, Audra Strickland, Swanson,  
            Torlakson, Torres, Torrico, Tran, Villines, Yamada, Bass
          NO VOTE RECORDED:  DeVore


          RJG:mw  8/19/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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