BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 442
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          Date of Hearing:   March 31, 2009

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                   AB 442 (Arambula) - As Amended:  March 25, 2009
           
          SUBJECT  :   NOTARIES PUBLIC: MATRICULA CONSULAR

           KEY ISSUE  :  SHOULD A NOTARY PUBLIC BE AUTHORIZED TO REASONABLY  
          RELY ON PRESENTATION OF A MATRICULA CONSULAR, AN IDENTIFICATION  
          CARD ISSUED BY THE MEXICAN GOVERNMENT, TO ESTABLISH THE IDENTITY  
          OF THE PERSON DESCRIBED IN AND EXECUTING A WRITTEN INSTRUMENT?

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

          This bill seeks to authorize notaries public to reasonably rely  
          on presentation of a Matricula Consular, an identification card  
          issued by the Mexican government, to establish the identity of a  
          person attempting to have a document notarized.  As amended by  
          the author, the notary public may only accept the Matricula  
          Consular if it is current or has been issued within the past  
          five years.  Supporters contend that many individuals cannot get  
          documents notarized because they lack acceptable identification  
          under current notary law, and thus this bill is needed to help  
          people access vital services that require notarization on  
          documents.

          In opposition, the National Notary Association argues that the  
          Matricula Consular is not a secure or reliable form of  
          identification and that this bill would compromise the safety  
          and security of California consumers and undermine the  
          credibility of the state's Notaries Public.  They cite U.S.  
          government research from 2003 that identifies several concerns  
          with consulate procedures in issuing the Matricula Consular and  
          of the security features of the card itself.  However,  
          supporters report significant steps taken by the Mexican  
          government since 2002 to improve the card and its consular  
          database procedures, which they contend now makes the Matricula  
          Consular as secure and reliable as other forms of identification  
          that current law allows to be used to establish one's identity  
          for notarization purposes.
          








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           SUMMARY  :  Adds the Matricula Consular, an identification card  
          issued by the Mexican government, to the list of documents that  
          notaries public may accept as proof of a person's identity for  
          the purpose of acknowledging a written instrument.   
          Specifically,  this bill  :  
           
          1)Authorizes a notary public to take acknowledgment of a written  
            instrument in reasonable reliance upon the presentation of a  
            Matricula Consular by the person making the acknowledgment, as  
            satisfactory evidence that person is the same individual  
            described in and executing the instrument.

          2)Requires that the notary public may only reasonably rely upon  
            presentation of a Matricula Consular if it is current or has  
            been issued within the past five years.



           EXISTING LAW  :   

          1)Requires a notary, when executing a jurat, to administer an  
            oath or affirmation to the affiant and to determine, from  
            satisfactory evidence as described in Section 1185 of the  
            Civil Code, that the affiant is the person executing the  
            document.  In addition, the affiant must sign the document in  
            the presence of the notary.  (Government Code Section 8202.)

          2)Authorizes the proof or acknowledgment of a written instrument  
            regarding the transfer of title to property before specified  
            officers of the state, including notaries public.  (Civil Code  
            Sections 1181 to 1183.)

          3)Provides that acknowledgment of a written instrument shall not  
            be taken unless the officer taking it has satisfactory  
            evidence that the person making the acknowledgment is the  
            individual who is described in and who executed the  
            instrument.  (Civil Code Section 1185(a).)

          4)Defines "satisfactory evidence" to mean the absence of any  
            information, evidence, or other circumstances that would lead  
            a reasonable person to believe that the person making the  
            acknowledgement is not the individual he or she claims to be,  
             and  reasonable reliance on presentation to the notary public  
            of one of several specified documents.  (Civil Code Section  
            1185(b).)








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          5)Specifies the documents that, if current or issued within five  
            years, may be reasonably relied upon by a notary public when  
            presented as proof of identity for notarization purposes,  
            namely: 

             a)   A driver's license or identification card issued by the  
               California Department of Motor Vehicles
             b)   A United States issued passport
             c)   A foreign passport
             d)   A driver's license issued by another state, Mexico, or  
               Canada
             e)   An identification card issued by a state other than  
               California
             f)   An identification card issued by any branch of the U.S.  
               military
             g)   An identification card issued on or after January 1,  
               1988, by the Department of Corrections and Rehabilitation,  
               if the inmate is in custody
             h)   An employee identification card issued by a city, county  
               or state agency in California.

            (Civil Code Section 1185(b), subparagraphs (3) and (4).)

          6)Requires that, except for (a) and (b) above, the specified  
            document shall contain a photograph and description of the  
            person named on it, shall be signed by the person, shall bear  
            a serial or other identifying number, and if the document is a  
            foreign passport, shall have been stamped by the United States  
            Immigration and Nationalization Service.  (Civil Code Section  
            1185(b)(4).)

           COMMENTS  :  This bill seeks to authorize notaries public to  
          reasonably rely on presentation of a Matricula Consular, an  
          identification card issued by the Mexican government, to  
          establish the identity of a person attempting to have a document  
          notarized.  As amended by the author, the bill permits the  
          notary public to accept the Matricula Consular only if it is  
          current or has been issued within the past five years.   
          According to the author:

               Lack of identification prevents individuals from  
               accessing many services, including having their  
               documents notarized.  Powers of Attorney, general or  
               living wills, grant deeds, and all documents to be  








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               recorded require notarization.  It is critical that  
               people can identify themselves for notarization  
               purposes. Documents that are notarized add  
               verification and authenticity that the people who  
               signed a document are who they say they are.   
               Additionally, notarized documents protect families  
               from litigation and fraud, and help families  
               preserve what is lawfully theirs.

          Supporters emphasize that this bill will help solve the problem  
          faced by certain individuals who cannot get documents notarized  
          because of the lack of acceptable identification under current  
          law governing notaries public.  For example, Gilbert Zavalas, a  
          notary public in Fresno, writes that, on an almost daily basis,  
          he has to turn away people from having their documents notarized  
          because their only available form of identification is the  
          Matricula Consular.  

          The California Catholic Conference also writes that allowing  
          notaries to accept the Matricula Consular as a form of  
          identification will help facilitate oaths, documents, and sworn  
          statements of citizens of Mexican nationality.  The Central  
          Valley Partnership for Citizenship (CVP) concurs, stating that  
          it is critical to permit the Matricula Consular to be accepted  
          for notarization because it would help people access vital  
          services that require notarization on documents.  

          The American Federation of State, County and Municipal Employees  
          (AFSCME) writes in support of the bill because it would help  
          ease the current housing market crisis, stating:

               When selling or buying properties or real estate, it  
               is important to know who you are selling to or  
               buying from.  What is not necessary is blocking  
               someone with a government issued identification card  
               from the ability to buy real estate in California.   
               This bill would free up the real estate market in a  
               time when home sales are exceptionally low.

           Background on the Matricula Consular:   The Matricula Consular de  
          Alta Seguridad (MCAS, or "Matricula Consular" for short) means  
          "High Security Consular Registration Document" in English.  The  
          Matricula Consular is a personal identification card issued by  
          the Mexican government through its consulate offices that serves  
          as the official record for its citizens living outside of  








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          Mexico.  The registration of nationals through the consulate  
          offices is a practice recognized by the Vienna Convention on  
          Consular Relations, and Mexican Consulates have legally issued  
          these documents since 1871.  According to materials published by  
          the Consulate of Mexico, the purpose of consular registration is  
          to enable consular officers to provide protection and access to  
          consular services, as well as to help relatives and Mexican  
          authorities to locate their nationals abroad.

           Procedures Used by Consulates Issuing a Matricula Consular  :   
          According to materials published by the Consulate of Mexico, an  
          applicant seeking a Matricula Consular at the consulate offices  
          undergoes an initial interview where he or she personally  
          submits certain documents for verification: (a) Mexican birth  
          certificate; (b) Official government-issued photo identification  
          card; (c) other documents that prove Mexican nationality; (d)  
          proof of address (utility bills, etc.).

          A consular staff member reviews the application, calls the  
          applicant for a second interview, and verifies the application  
          again.  Upon satisfaction of the staff member, a modest fee is  
          collected (around $27 U.S.) and the staff member enters the  
          applicant's information into the computerized Matricula system.   
          To check for duplicity in the system, the computer will display  
          the previously captured photograph if it determines that a  
          Matricula Consular has already been issued to that person.

           Common Uses of the Matricula Consular:   Although this bill  
          pertains only to use of the Matricula Consular to establish  
          one's identity for the purpose of having a document notarized,  
          supporters of the bill accurately point out that the Matricula  
          Consular is already recognized in California as valid  
          identification for some local governmental purposes.  For  
          example, in some jurisdictions the Matricula Consular can be  
          used to identify oneself to law enforcement agencies, to apply  
          for public utilities, and to identify oneself at schools and  
          public libraries as a parent or user.  In 2003, at least 12  
          counties, 25 cities, and dozens of police and sheriff's  
          departments in California were accepting the Matricula Consular  
          as a form of identification.  (Senate Floor Analysis of AB 25  
          (N??ez), of 2003-04, dated 8/27/2003.)

          Anecdotal evidence indicates increasing acceptance of the  
          Matricula Consular by U.S. banking institutions for the purpose  
          of opening new accounts.  For example, Wells Fargo estimates  








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          that it has used the Matricula Consular to open over 70,000 new  
          accounts since it began accepting the card in November 2001.   
          ("Consular ID Cards: Mexico and Beyond", Migration Policy  
          Institute, April 2003.)  According to figures provided by the  
          Mexican Consulate, as of July 2004, over 175 banks in the U.S.  
          accepted the Matricula Consular as a form of identification.

          The trend includes banks in California.  On March 24, 2009, the  
          City of Los Angeles announced a new program to help at least  
          10,000 low-income households open bank accounts every year.   
          Banks participating in the program, including Bank of America  
          and Citibank, will not require new applicants to produce a  
          Social Security number and will accept other forms of recognized  
          identification, including the Matricula Consular.  ("Program  
          Aims to Help Low-Income Angelenos Open Bank Accounts", Los  
          Angeles Times, March 24, 2009.)

           Opposition Based on Security Concerns:   The National Notary  
          Association, a non-profit professional association of notaries  
          public, is strongly opposed to this bill because of security  
          concerns, stating:

               There simply is no need for this legislation when  
               the Civil Code has already provided more secure  
               forms of identification documents-including Mexican  
               driver's licenses and passports-to identify Mexican  
               nationals.  The enactment of this legislation would  
               require Notaries to recognize a card of proven  
               unreliability, weakening the California notarial  
               system that protects the public? Allowing the  
               Matricula Consular to be added to list of acceptable  
               documents for establishing identification in  
               notarizations will compromise the safety and  
               security of California consumers and undermine the  
               credibility of the state's Notaries Public. 

          In response, supporter Gilbert Zavalas states that the bill is  
          still needed because not all Mexican citizens living in  
          California have a driver's license or even drive.  For example,  
          an elderly Mexican person who does not drive but who wishes to  
          have his will notarized may not be able to accomplish this if he  
          only has a Matricula Consular.  Zavalas also notes that under  
          Section 1185 of the Civil Code, a Mexican passport is not  
          sufficient for notarization purposes unless it has been stamped  
          by the United States Immigration and Nationalization Service.   








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          This stamp is important because it is evidence that the passport  
          holder was "inspected" by a U.S. government official upon entry  
          into the United States, meaning his or her identification had  
          presumably been established from some other American database.

          The National Notary Association also writes in  
          opposition:

               Notaries in this state must not be forced to accept  
               a card that the U.S. Department of Justice and the  
               FBI declare is not a trustworthy identifier.  (Those  
               two agencies) have conducted research on the  
               Matricula Consular and concluded it is "not a  
               reliable form of identification, due to the  
               non-existence of any means of verifying the true  
               identity of the card holder."

          The specific conclusions cited from this research appear to be  
          taken from the testimony of Steve McCraw, Assistant Director of  
          the Office of Intelligence, FBI, before a special U.S. House  
          Judiciary Subcommittee on June 26, 2003.  (See  
          http://www.fbi.gov/congress/congress03/ mccraw062603.htm)  Among  
          these conclusions are:

               1) The Mexican government has no centralized  
               database to coordinate the issuance of consular ID  
               cards.  This allows multiple cards to be issued  
               under the same name, the same address, or with the  
               same photograph.

               2) The Mexican government has no interconnected  
               databases to provide inter-consular communication to  
               be able to verify who has or has not applied for or  
               received a consular ID card.

               3) The Matricula Consular card is vulnerable to  
               forgery and 90 percent of the estimated 2 million in  
               circulation are simply laminated cards without  
               security features.

          The author and supporters of the bill acknowledge that security  
          concerns related to the features of the identification card  
          itself and the procedures by which it can be obtained are indeed  
          important.  To address some of the specific concerns raised by  
          FBI representative McCraw's 2003 testimony, the author has  








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          provided materials published by the Consulate of Mexico in July  
          2007 that reflect recent procedural safeguards and improved  
          security features of the Matricula Consular card itself.  These  
          materials state:

             1)   The Mexican government has developed a national  
               database in which consulates can verify if there are  
               homonyms and if the applicant has previously  
               received a Matricula Consular.

             2)   The consulates also check the applicant's  
               identity against a Mexican government "stop list"  
               containing approximately 13,000 records of persons  
               who are not allowed to obtain documents issued by  
               the Mexican government.

             3)   All Matricula Consulares are issued for a period  
               of 5 years.  As of March 2002, the MCAS incorporates  
               cutting-edge technology, holograms, and other  
               embedded designs to prevent its forgery.  (Thus) by  
               2007 all the old matriculas will have been replaced  
               by the MCAS.

          The materials describe, in some detail, thirteen security  
          features built into the Matricula Consular since 2002, including  
          technology used by the U.S. government in its own high security  
          documents like Visas and FBI badges.
           
           In short, it appears that the Mexican government has taken  
          substantial steps since 2002 to improve the security features of  
          the Matricula Consular to prevent forgery, and to implement  
          database procedures that safeguard against issuance of duplicate  
          cards.  However, there remain valid concerns about the  
          procedures followed by Mexican consulates, particularly with  
          respect to the documents that applicants may submit to verify  
          their identification when applying for a Matricula Consular.   
          These supporting documents may themselves be easily forged and  
          it may be difficult to independently verify the identification  
          of the person named upon them.

           Notary Training:   According to the author, AB 442 will result in  
          more business to notaries.  Notaries public will be trained to  
          properly accept the Matricula Consular via the mandatory course  
          required under current law (Government Code Section 8201).  The  
          examination will certify that notaries public are aware of all  








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          laws and regulations affecting their practice, including  
          regulations on the Matricula Consular.
           
          Similar Pending Legislation:   SB 461 (Correa) also adds the  
          Matricula Consular to the list of documents that notaries public  
          may accept as proof of a person's identity for the purpose of  
          acknowledging a written instrument.  SB 416 proposes an  
          identical change to current law as the amended version of this  
          bill.

           Previous Legislation on the Matricula Consular:   ACR 229 (Diaz),  
          Res. Chapter 187, Stats. 2002, urged city, county, and state  
          agencies to accept the Matricula Consular as an official form of  
          identification.

          SB 804 (Polanco), of 2001-02, sought to allow a person applying  
          for a California Driver's License to present a Matricula  
          Consular for the purpose of establishing his or her  
          identification. SB 804 was vetoed.  AB 25 (N??ez), of 2003-04,  
          sought to require state agencies to accept identification cards  
          issued by foreign countries, including the Matricula Consular,  
          if the card met specified requirements.  AB 25 died in  
          committee.  Similarly AB 522 (Diaz), of 2003-04, sought to  
          require local officers and employees to accept the Matricula  
          Consular for identification purposes.  AB 522 was also vetoed.

          SB 60 (Cedillo), Chapter 326, Stats. 2003, authorized the  
          Department of Motor Vehicles to accept a birth certificate  
          presented together with a Matricula Consular to establish proof  
          of identity for a driver's license application.  However, this  
          provision was later repealed by 2003-2004 SB 1, 3rd  
          Extraordinary Session.  SB 1162 (Cedillo), of 2005-06, attempted  
          to reenact provisions similar to those that were repealed in SB  
          60, but was vetoed.

          Finally, AB 1870 (De Le?n), of 2007-08, sought to permit  
          secondhand coin dealers to rely on presentation of the Matricula  
          Consular by coin sellers as proof of identity.  AB 1870 was  
          vetoed.
           


          REGISTERED SUPPORT / OPPOSITION  :   

           Support 








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          Law Offices of Gilbert Zavala
          American Federation of State, County and Municipal Employees  
          (AFSCME)
          Alianza Latinoamericana por los Derechos de los Inmigrantes  
          (ALDI)
          California Rural Legal Assistance (CRLA) Foundation
          California Catholic Conference
          Central Valley Partnership for Citizenship
          Immigrant Legal Resource Center
          PICO California

           Opposition 
           
          National Notary Association
           
          Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334