BILL ANALYSIS
AB 811
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 811 (John A. Perez)
As Amended July 23, 2009
Majority vote
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|ASSEMBLY: |79-0 |(May 26, 2009) |SENATE: |32-4 |(August 31, |
| | | | | |2009) |
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Original Committee Reference: B. & F.
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 a check casher from selling any other form of
identification other than what is permitted to access check
cashing services.
3)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.
Provides that the court may place the defendant on probation,
with conditions that include, but are not limited to, a fine
and community service. Provides that no part of the fine or
community service shall be suspended or waived.
The senate amendments delete the penalties provision for making
false identification cards to $1,000, 24 hours of community
service, and, in the court's discretion, imprisonment in the
county jail for not more than one year and replaces this with
the provision discussed in 3) above.
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
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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
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]
AS PASSED BY THE ASSEMBLY , this bill required the penalties for
making false identification cards to be $1,000, 24 hours of
community service, and, in the court's discretion, imprisonment
in the county jail for not more than one year.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor and absorbable enforcement costs to the
Department of Corporations (DOC). Local costs, if any, are not
reimbursable.
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
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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 : 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 $1,000 and added 24 hours of community
service to be performed while the violator was not attending
school or employed at a school.
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Analysis Prepared by : Kathleen O'Malley / B. & F. / (916)
319-3081
FN: 0002487