BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 35
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          Date of Hearing:  April 9, 2013

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                    AB 35 (Hernández) - As Amended: April 4, 2013

                              As Proposed to be Amended  

          SUBJECT  :  IMMIGRANTS AND IMMIGRATION CONSULTANTS

           KEY ISSUES  : 

          1)SHOULD A NEW CLASS OF IMMIGRANTS BE SPECIFICALLY PROTECTED  
            AGAINST FRAUD AND ABUSE BY UNQUALIFIED PERSONS REGARDING  
            SPECIFIED IMMIGRATION FILINGS?

          2)SHOULD PERSONS WHO HAVE RECEIVED A NOTICE OF DECISION FROM THE  
            FEDERAL GOVERNMENT GRANTING DEFERRED ACTION UNDER THE DEFERRED  
            ACTION FOR CHILDHOOD ARRIVALS PROGRAM BE ELIGIBLE FOR  
            UNEMPLOYMENT COMPENSATION BENEFITS?

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

                                      SYNOPSIS
          
          By this measure the author seeks to improve the treatment of  
          immigrants who are approved by the federal government for  
          deferred action under the recently-announced deferred action for  
          childhood arrivals program.  The bill has two provisions of  
          interest to this Committee:  First, it would ensure that  
          immigration consultants and others do not prey upon applicants  
          under this program by specifying that only authorized persons  
          may provide specified services, and prohibits price-gouging for  
          covered services.  Second, the bill would clarify that, as many  
          believe is already the law, persons who are approved for  
          deferred action and who receive federal work authorization are  
          eligible for unemployment compensation if they otherwise satisfy  
          the criteria for benefits.  The bill has a third provision  
          authorizing the issuance of State Identification cards to those  
          who are granted deferred action; this provision will be  
          considered by the Transportation Committee.  The bill has no  
          opposition.

           SUMMARY  :  Seeks to improve the treatment of immigrants,  
          particularly those who have received a notice of decision from  








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          the federal government granting deferred action under the  
          deferred action for childhood arrivals program.  Specifically,  
           this bill  :  

          1)Clarifies that immigration consultants, attorneys, and  
            notaries public shall be the only individuals authorized to  
            charge clients or prospective clients fees for providing  
            consultations, legal advice, or notary public services,  
            respectively, associated with filing an application under the  
            deferred action for childhood arrivals program announced by  
            the United States Secretary of the Department of Homeland  
            Security on June 15, 2012.

          2)Specifies that immigration consultants, attorneys, and  
            notaries public shall be prohibited from participating in  
            practices that amount to price gouging when a client or  
            prospective client solicits services associated with filing an  
            application for deferred action for childhood arrivals, and  
            defines "price gouging" as any practice that has the effect of  
            pressuring the client or prospective client to purchase  
            services immediately because purchasing them at a later time  
            will result in the client or prospective client paying a  
            higher price for the same services.

          3)Provides that in addition to existing civil and criminal  
            penalties, a violation of this section by an attorney shall be  
            cause for discipline by the State Bar, and that a violation of  
            this section by a notary public shall be cause for the  
            revocation or suspension of his or her commission as a notary  
            public by the Secretary of State and the application of any  
            other applicable penalties.

          4)Clarifies that a person who has received a notice of decision  
            from the federal government granting deferred action under the  
            deferred action for childhood arrivals program announced by  
            the United States Secretary of the Department of Homeland  
            Security on June 15, 2012, shall be eligible for unemployment  
            compensation contingent on receipt of employment authorization  
            from the federal government.

          5)Clarifies that persons who demonstrate favorable action by the  
            federal government for acceptance of a person into the  
            deferred action for childhood arrivals program may be issued  
            an original California identification card.









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           EXISTING LAW  :

          1)Under existing federal law, the Secretary of the Department of  
            Homeland Security has issued a directive allowing certain  
            undocumented individuals who meet several key criteria for  
            relief from removal from the United States or from entering  
            into removal proceedings to be eligible to receive deferred  
            action for a period of 2 years, subject to renewal, and who  
            will be eligible to apply for work authorization.  (See  
            information at  
            http://www.dhs.gov/deferred-action-childhood-arrivals.)

          2)Provides for the regulation of immigration consultants by the  
            Department of Consumer Affairs, the licensure and regulation  
            of attorneys by the State Bar of California, and the  
            commission of notaries public by the Secretary of State. A  
            violation of certain of these provisions is a crime.   
            (Business and Professions Code section 2240 et seq.)   
            Specifically, provides that it is unlawful for any person, for  
            compensation, other than persons authorized to practice law or  
            authorized by federal law to represent persons before the  
            Board of Immigration Appeals or the United States Citizenship  
            and Immigration Services, to engage in the business or act in  
            the capacity of an immigration consultant (section 22440).   
            Specifies that a person engages in the business or acts in the  
            capacity of an immigration consultant when that person gives  
            non-legal assistance or advice on an immigration matter  
            including but is not limited to: completing a form provided by  
            a federal or state agency but not advising a person as to  
            their answers on those forms; translating a person's answers  
            to questions posed in those forms; securing for a person  
            supporting documents, such as birth certificates, which may be  
            necessary to complete those forms; submitting completed forms  
            on a person's behalf and at their request to the United States  
            Citizenship and Immigration Services; making referrals to  
            persons who could undertake legal representation activities  
            for a person in an immigration matter.  (Section 22441.)

          3)Provides that immigrants who are authorized to work are  
            entitled to unemployment compensation if they otherwise  
            satisfy the eligibility requirements.  (Unemployment Insurance  
            Code section 1264; 26 USC section 3304(a)(14)(A).)

          4)Provides that any federal document demonstrating favorable  
            action by the federal government for acceptance of a person  








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            into this deferred action program shall satisfy specified  
            requirements for the purposes of being authorized to receive  
            an original driver's license from the Department of Motor  
            Vehicles, as described.  (Vehicle Code section 12801.6.) 

           COMMENTS  :  The author explains the reason for the bill as  
          follows:

               On July 15, 2012, the U.S. Department of Homeland Security  
               issued a directive calling for prosecutorial discretion in  
               the enforcement of the country's immigration laws toward  
               immigrants meeting several criteria.  That criteria was set  
               to largely coincide with the nation's DREAMer population -  
               that is young undocumented immigrants who have been in the  
               country for several years, have graduated from a U.S. high  
               school, have served at least two years in college or the  
               military and have no felonies or serious criminal offenses.  
                The program was called the Deferred Action for Childhood  
               Arrivals and became more commonly known as "Deferred  
               Action" or DACA.  The program was officially implemented on  
               August 15, 2012.  According to USCIS statistics as issued  
               in the February 21, 2013 White House Immigration Action  
               Newsletter, 438,372 applications had been received through  
               February14, 2013, and 119,466 of those had come from  
               California.  This means that 27.3% of the applications  
               submitted came from young immigrants currently residing in  
               California. 

               In the first several months of the program, our office  
               heard anecdotally CRLAF and the Mexican Consulate that many  
               young immigrants wishing to apply were scared of filling  
               out their own paperwork, for fear of filling something out  
               incorrectly and possibly facing deportation as a  
               consequence.  While these two organizations were providing  
               assistance for free, many prospective applicants felt more  
               secure contracting professionals for pay, such as private  
               attorneys and notary publics.  Accordingly, professionals  
               were providing services that were not within their scope of  
               practice and even worse, others without any license,  
               certification, or waiver were providing legal services for  
               pay upward of $1,000. 

               In a workshop I attended at the Mexican Consulate Office in  
               Sacramento, I heard presenters talk about the importance of  
               applying to the DACA program only after they are certain  








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               they meet the criteria.  Otherwise, applicants could  
               potentially face deportation. 

               Since August 15, 2012, of the 438,372 applications  
               received, a total of 14,738 of applications have been  
               rejected. If 27.3% of these rejected applications came from  
               California, an estimated 4,023 applications were rejected  
               from our state in a matter of 6 months.  That is an  
               estimated 670 CA applications rejected per month. 

               If any of these rejected applications were filled out with  
               the paid assistance of an individual without a license or  
               performing work outside of their scope of practice, this  
               should be considered consumer fraud.

               Thus, the bill creates consumer protections by ensuring  
               that professional assistance acquired for purposes of  
               filling out a DACA application should be consistent with  
               scope of practice laws so that the consumer is protected  
               and has recourse to pursue action from the regulatory body  
               of the licensed or certified individual if any wrong doing  
               was committed by the professional. 

               The bill also clarifies that people becoming eligible for  
               the DACA program be eligible for a California  
               identification card and unemployment insurance benefits  
               consistent with the law.  In addition, the bill calls for  
               people who have been approved to the DACA program be  
               eligible for state administered health care programs. 

           Specific Consumer Protections For DACA Applicants.   Existing law  
          establishes minimum consumer protections regarding who may  
          engage in the business of preparing and advising on immigration  
          applications and the like.  Supporters contend that these  
          protections would be strengthened by adding a provision that is  
          specific to DACA applicants particularly because the volume of  
          applicants under the DACA may lead to greater fraud and abuse in  
          a program that is not always well understood.  The author  
          states:

               With the creation of the DACA program, a new market was  
               created for professional immigration-related services.   
               This bill seeks to create consumer protections specifically  
               for people in the market for legal, consulting, and notary  
               services for the purpose of advice on the DACA program and  








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               assistance with applications. 

               Because the nation is expecting Comprehensive Immigration  
               Reform to become a reality in the near future, many  
               immigrants, beyond those eligible for the DACA program,  
               will be in the market for immigration services.  The plural  
               majority of those will likely reside in California and  
               solicit services in California.  Thus, there couldn't be a  
               better time for our state to crack down on fraudulent  
               activity targeting immigrants seeking to renew their  
               status. It is imperative that consumer protections be  
               strengthened given that a faulty solicitation will likely  
               end in deportation, causing the separation of families,  
               among other damage. 

           This Bill Clarifies That Persons Who Are Approved Under The  
          Deferred Action For Childhood Arrivals Program And Are  
          Authorized To Work Are Entitled To Unemployment Compensation If  
          They Are Otherwise Eligible  .  According to supporters,  
          applicants approved under the deferred action for childhood  
          arrivals program fall within the categories eligible for the  
          immigration classification known as PRUCOL (permanently residing  
          under color of law).  (See, e..g.,  
          http://ows.doleta.gov/dmstree/uipl/uipl86/uipl_0186c1.htm.)   
          Accordingly, they typically are eligible under various state and  
          federal programs, and generally receive work authorization. 

          As such, these persons are arguably entitled to unemployment  
          compensation under existing law.  (See Unemployment Insurance  
          Code section 1264.)  This bill would simply clarify that if an  
          applicant for deferred action is approved, and if that person  
          also receives authorization to work, he or she may receive  
          unemployment compensation if they are otherwise eligible.  While  
          it may be strictly speaking unnecessary and duplicative of  
          existing law, it would appear to be a sensible step to clarify  
          the matter so that there is no ambiguity.

          As the author explains: "A ? purpose of the bill is to codify  
          that a person who is accepted to the DACA program shall be  
          eligible for unemployment insurance (UI) benefits, subject to  
          the same eligibility standards as other workers.  Presently,  
          workers who wish to submit an UI claim must meet the following  
          eligibility requirements:  
              Have received enough wages during the base period to  
          establish a claim.








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              Be totally or partially unemployed.
              Be unemployed through no fault of his/her own.
              Be physically able to work.
              Be available for work which means to be ready and willing  
          to immediately accept work.
              Be actively looking for work.
              Meet eligibility requirements each week benefits are  
          claimed.
              Be approved for training before training benefits can be  
          paid.

          Upon acceptance to the DACA program, youth who are deemed to  
          have economic necessity, which virtually all people have, are  
          provided with a social security number for purposes of being  
          able to work to financially sustain themselves during the  
          two-year stay.  The bill would codify that people authorized to  
          work by the federal government using their own social security  
          number, and who indeed work using their social security number  
          during a base period, and become unemployed for no fault of  
          their own, are able to access this safety net afforded to the  
          state's authorized workforce. 

          Given a 2012 bill, chaptered into law, codified access to driver  
          licenses, the office acknowledged that not all youth who are  
          approved to the DACA program may be eligible for a driver  
          license due to age requirements, for example.  The bill thus has  
          the purpose of codifying eligibility to a state identification  
          card."

           ARGUMENTS IN SUPPORT  : In support of the bill, the California  
          Immigrant Policy Center (CIPC) states:

               On June 15, 2012, President Barack Obama announced that the  
               U.S. Department of Homeland Security (DHS) would not deport  
               certain DREAM Act-eligible undocumented youth. Under a  
               directive from the secretary of DHS, these youth will be  
               given a type of temporary permission to stay in the U.S.  
               called "deferred action." This particular program often is  
               referred to as Deferred Action for Childhood Arrivals, or  
               DACA. Deferred action is a type of administrative relief  
               from deportation that has been around for many years.  
               Through it, the DHS authorizes a non-U.S. citizen to  
               temporarily remain in the United States. 

               AB 35 seeks to provide greater consumer protections to  








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               California youth who apply for the DACA program.  
               Specifically, it seeks to specify that only immigration  
               consultants, attorneys, notaries, and other accredited  
               organizations shall be authorized to charge applicants for  
               these services. Additionally, it seeks to prohibit these  
               designees from price gouging. Over the years, we have found  
               that immigrant communities are often targeted by a variety  
               of bad actors that rely on the fact that community members  
               may be afraid to report crimes and act as witnesses due to  
               fear of detention or deportation under federal immigration  
               enforcement policies. Additionally, applying for deferred  
               action is quite a difficult, often confusing process, and  
               mistakes or errors could have severe consequences that  
               could lead to a denial or potentially a Notice to Appear  
               (NTA) in an administrative proceeding for immigration  
               enforcement purposes, if fraud is involved among the  
               parties completing the application. Given these challenges,  
               CIPC believes that specifying who may engage in this work  
               is important to ensure that assisters of applicants  
               maintain a certain level of care. We also believe it is  
               necessary to protect the applicants themselves from being  
               price gouged by being pressured to contract for services or  
               end up working with someone who may push forward a  
               fraudulent application to DHS. California has 460,000  
               potential DACA applicants, more than any other state in the  
               country, and we believe they should be protected.   
               Currently, only about one-third, or 128,412 have applied as  
               of March 2013.  

               Additionally, AB 35 also seeks to codify that DACA approved  
               youth are entitled to unemployment insurance benefits. DACA  
               applicants may also apply for an employment authorization  
               document, "a work permit", for the period during which he  
               or she has deferred action. With lawful presence and a work  
               permit, individuals will be working, continuing to pay  
               taxes, and be fully contributing to California's economy.  
               Thus, CIPC believes that these individuals should be  
               eligible for a wide range of public benefits and privileges  
               similar to U.S. citizens living in California. However,  
               under current law DACA youth are only eligible for a  
               patchwork of public benefits; most notably California's  
               state-funded full-scope Medi-Cal program available for  
               lawfully present immigrants who may be ineligible for  
               federal benefits. 









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               Unemployment is another benefit which DACA approved  
               individuals are eligible for under federal law. 

               First, there would be a "base period", as all unemployment  
               insurance benefits (UIB) applicants need to have had a  
               connection to the work force as lawfully present  
               individuals during the base period, which goes back about  
               15 months, and then ahead for a year. DACA recipients would  
               generally need to work for at least 12-15 months with that  
               status first, and no unemployment insurance benefits would  
               become available for a while. Then if they are terminated  
               without good cause, they will need to have a valid work  
               permit at that time.  Thus, under current law, some may  
               eventually become eligible for UIB in the future, if DACA  
               and their own work permits are still in place.  AB 35 seeks  
               to codify eligibility for this population in California  
               law. 

               AB 35 also seeks to further clarify California law to  
               ensure that DACA approved individuals are eligible for a  
               California ID. Currently, the DMV already accepts the  
               lawful presence documents DACAs receive to be eligible for  
               a California ID.  However, AB 35 (Hernandez) seeks to  
               clarify in California law that these individuals are  
               eligible for a license to ensure that there are not any  
               administrative issues moving forward which may cause a DACA  
               approved individual to be denied. Similarly, AB 2189  
               (Cedillo) of 2012 clarified existing law to ensure  
               eligibility for driver's licenses. CIPC believes that all  
               California residents should be eligible for a driver's  
               license and a California ID, but appreciates that AB 35  
               seeks to clarify the law as it relates to DACAs.

           Author's Technical Amendments.   In order to correct drafting  
          errors, the author appropriately proposes the following  
          clarifying amendments:

          SEC. 1


          22449. (a) Immigration consultants, attorneys,  and  notaries  
          public  and organizations accredited by the United States Board  
          of Immigration Appeals  shall be the only individuals authorized  
          to charge clients or prospective clients fees for providing  
          consultations, legal advice, or notary public services,  








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          respectively, associated with filing an application under the  
          deferred action for childhood arrivals program announced by the  
          United States Secretary of the Department of Homeland Security  
          on June 15, 2012.

          (b) (1) Immigration consultants, attorneys,  and  notaries public  
           and organizations accredited by the United States Board of  
          Immigration Appeals  shall be prohibited from participating in  
          practices that amount to price gouging when a client or  
          prospective client solicits services associated with filing an  
                                                                                         application for deferred action for childhood arrivals as  
          described in subdivision (a).

           SEC 4.  The provisions of this act are declarative of existing  
          law.
           
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          AFSCME
          California Immigrant Policy Center
          California Welfare Rights Organizations
          Coalition for Humane Immigrants Rights of Los Angeles

           Opposition 
           
          None on file
           
          Analysis Prepared by  :  Kevin G. Baker / JUD. / (916) 319-2334