BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 442
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        ASSEMBLY THIRD READING
        AB 442 (Arambula)
        As Amended April 1, 2009
        Majority vote 

         JUDICIARY           6-3                                         
         
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        |Ayes:|Feuer, Brownley, Evans,   |     |                          |
        |     |Jones, Lieu, Monning      |     |                          |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |Nays:|Tran, Knight, Nielsen     |     |                          |
        |     |                          |     |                          |
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         SUMMARY  :  Adds the Matricula Consular de Alta Seguridad (MCAS or  
        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.

         FISCAL EFFECT  :  None
         
        COMMENTS  :  This bill seeks to authorize notaries public to  
        reasonably rely on presentation of a Matricula Consular, a personal  
        identification card issued by the Mexican government through its  
        consulate offices, to establish the identity of a person attempting  
        to have a document notarized.  The Matricula Consular means "High  
        Security Consular Registration Document" in English and serves as  
        the official record for Mexican citizens living outside of Mexico.

        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:








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             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 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.

        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  








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        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 United States (U.S.) banking institutions for the  
        purpose of opening new accounts.  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.)

        The National Notary Association (NNA), a non-profit professional  
        association of notaries public, is strongly opposed to this bill  
        because of security concerns, stating:

             The enactment of this legislation would require Notaries  
             to recognize a card of proven unreliability, . . . will  
             compromise the safety and security of California  
             consumers, and undermine the credibility of the state's  
             Notaries Public.  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.  

        The NNA then cites government research that concluded the following:

        1)The Mexican government has no centralized database to coordinate  
          the issuance of consular ID cards to prevent multiple cards from  
          being issued with the same name, address, or photograph;









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        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% of  
          the estimated two million in circulation are simply laminated  
          cards without security features.  (Testimony of Steve McCraw,  
          Assistant Director of the Office of Intelligence, FBI, before U.S.  
          House Judiciary Subcommittee on June 26, 2003 (See  
          http://www.fbi.gov/congress/congress03/ mccraw062603.htm).)

        The author and supporters of the bill acknowledge that security  
        concerns surrounding the Matricula Consular are indeed important.   
        To address some of the specific concerns raised by FBI  
        representative McCraw's 2003 testimony, the author has 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.  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 five 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, 13 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 documents that  








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        applicants may submit to consulate offices to verify their  
        identification when applying for a Matricula Consular, particularly  
        if these supporting documents are easily forged or if the  
        identification of the person named upon them cannot be independently  
        and reliably verified.

        According to the author, the bill would result in more business to  
        notaries.  Notaries public would be trained to properly accept the  
        Matricula Consular via the mandatory course required under current  
        law (Government Code Section 8201).  The course examination would  
        certify that notaries public are aware of all new or modified laws  
        and regulations affecting their practice, including regulations on  
        the Matricula Consular.
         

        Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334 

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