BILL ANALYSIS                                                                                                                                                                                                    






                             SENATE JUDICIARY COMMITTEE
                           Senator Ellen M. Corbett, Chair
                              2009-2010 Regular Session


          AB 442                                                 
          Assemblymember Arambula                                
          As Amended April 1, 2009
          Hearing Date: June 9, 2009                             
          Civil Code                                             
          ADM                                                    


                                        SUBJECT
                                           
                                   Notaries Public

                                      DESCRIPTION  

          This bill would provide that a notary public may reasonably rely  
          on a Matricula consular issued by the government of the United  
          States of Mexico as proper identification (ID) to prove the  
          identity of an individual who executes a written instrument. 

                                      BACKGROUND  

          A notary public is a public officer appointed and commissioned  
          by the Secretary of State to serve the public in non-contentious  
          matters generally concerning estates, deeds, powers-of-attorney,  
          foreign and international business, and other written  
          instruments.    A notary's main functions are to take  
          acknowledgements of various written instruments, administer  
          oaths and affirmations, take depositions and affidavits, certify  
          copies of powers of attorney under the Probate Code, demand  
          acceptance and payment of foreign and inland bills of exchange  
          or promissory notes, and to protest nonpayment and nonacceptance  
          of bills and notes.  

          A certificate of acknowledgment is the form most frequently  
          completed by a notary public.  In the certificate of  
          acknowledgment, the notary public certifies: 1) that the signer  
          personally appeared before the notary public on the date  
          indicated in the county indicated; 2) the identity of the  
          signer; and 3) that the signer acknowledged executing the  
          document.

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          Under current law, the identity of the signer of an  
          acknowledgment may be established by the notary public's  
          reasonable reliance on any one of a number of documents,  
          including, among others, a California driver's license or ID  
          card, a U.S. or foreign passport, an employee ID card, and a  
          driver's license issued by a Mexican public agency authorized to  
          issue driver's licenses.  The identification document must be  
          current or have been issued within five years and must contain a  
          photograph, description of the person, signature of the person,  
          and an identifying number.  Current law does not allow a notary  
          public to rely on a Matricula consular, an ID card issued by the  
          Mexican Government through its consulates.  This bill would add  
          the Matricula consular to the list of valid identification  
          documents.

                                CHANGES TO EXISTING LAW
           
           Existing law  provides that the acknowledgment of an instrument  
          may not be taken unless the officer (notary public) taking it  
          has satisfactory evidence that the person making the  
          acknowledgment is the individual who is described in and who  
          executed the instrument.  (Civ. Code Sec. 1185(a).)

           Existing law  provides that "satisfactory evidence" means the  
          absence of any information, evidence, or other circumstances  
          that would lead a reasonable person to believe that the person  
          making the acknowledgment is not the individual he or she claims  
          to be plus the use of any one of various specified ways of  
          establishing the proper identity of the person making the  
          acknowledgment (such as the oath or affirmation of a credible  
          witness).  (Civ. Code Sec. 1185(b).)

           Existing law  provides that the officer may reasonably rely on  
          the presentation of any one of the following, provided that the  
          document is current or has been issued within five years and  
          contains a photograph and description of the person named on it,  
          is signed by the person, and bears a serial or other identifying  
          number:
           A passport issued by a foreign government.
           A driver's license issued by a state other than California or  
            by a Canadian or Mexican public agency authorized to issue  
            driver's licenses.
           An ID card issued by a state other than California.
           An ID card issued by any branch of the Armed Forces of the  
            U.S.
           An inmate ID card issued on or after January 1, 1988, by the  
                                                                      



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            Department of Corrections and Rehabilitation (DCR), if the  
            inmate is in custody.
           An employee ID card issued by an agency or office of the State  
            of California, or by an agency or office of a city, county, or  
            city and county in this state.
           An inmate ID card issued prior to January 1, 1988, issued by  
            the DCR, if the inmate is in custody.  (Civ. Code Sec.  
            1185(b)(4).)

           This bill  would add a Matricula consular issued by the  
          government of the United States of Mexico to the list of proper  
          identifications specified in Civil Code Section 1185(b)(4) that  
          an officer may reasonably rely on.






                                        COMMENT
           
           1.Stated need for the bill   

          The author writes:

            Lack of identification prevents individuals from accessing  
            many services, such as having their documents notarized.   
            Powers of Attorney or Carta Poder [power of attorney] going to  
            a foreign country, general or living will, grant deeds, and  
            all documents to be recorded require notarization.  It is  
            critical that people be able to identify themselves for  
            notarization purposes.  Documents that are notarized add  
            verification and authenticity, protect families from  
            litigation and fraud, and help families preserve what is  
            lawfully theirs.

           2.Description of the Matricula consular and process for  
            obtaining  

          The Matricula consular is an official ID card issued by the  
          Mexican Government through its consulate offices to Mexican  
          nationals residing outside of Mexico regardless of their  
          emigration status.  In 2002, Mexican consulates in the U.S.  
          began issuing a new High Security Consular ID called the  
          Matricula Consular de Alta Seguridad (MCAS) (Consular  
          Matriculation of High Security), also known as the Mexican CID  
                                                                      



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          card.  The card contains a photo, digitalized signature, and  
          individual number.  Fingerprints are taken and stored in the  
          matricula database as biometric information.  The Mexican  
          consular network in the U.S. (47 consulates) maintains a single  
          database.

          To obtain a Matricula consular an applicant must: 1) appear in  
          person; 2) present an original birth certificate to prove  
          Mexican nationality; 3) present an official government issued  
          photo ID to prove identity; and 4) present proof of address  
          (utility bill, lease, certified mail) under the same name (a  
          married woman may present proof of address under her husband's  
          name, as long as she presents her marriage certificate).  

          Secondary requirements include: 1) telephone number; 2) next of  
          kin information; 3) if a married woman wishes to use her married  
          name, she must present an original marriage certificate; and 4)  
          in case of a lost or stolen ID, the applicant must provide a  
          police report to obtain a new Matricula consular.

         3.Security features of the Matricula consular  

          The Mexican Ministry of Foreign Affairs (SRE) describes the  
          visible and hidden security features of the MCAS, the High  
          Security Matricula Consular:

           Visible security features
                           Green security paper, with the Official Mexican  
            Seal watermarked in a special security pattern.
                          Photograph cancelled with Advantage technology  
            seal which changes from green to brown.
                          Under fluorescent light, the letters "SRE"  
            appear all over the front.
                          The same special serial issue number on both  
            the front and back.
                          Infrared band on upper back, and, since 2005,  
            the new model has an over bi-dimensional ID bar code.

           Hidden security features; front side  

          The MCAS's hidden security features can only be seen with a  
          special decoder, provided by the Mexican consulates.

                          The word "Mexico" is printed on the left side,  
            next to the holder's picture and "Matricula Consular Consular  
            ID" at the bottom.
                                                                      



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                          "SRE" is printed three times on the right side.
                          "SRE" is also printed over the holder's picture  
            along with his or her name.
                          Turning the decoder 90 degrees on the lower  
            left corner of the picture, "SRE" and the holder's birth date  
            appear.

           Hidden security features; back side  
                          The MCAS issued since 2005, includes a  
            Bi-dimensional Bar Code and Optical Character Recognition.
                          On all previous MCAS, "Doc-u-Lock" codified  
            text appears on the green bar where the holder's name, date of  
            expiration, serial number and issuing office's name appear.
                          In both types of MCAS, rotating the decoder 90  
            degrees, "SRE" appears several times.
               
           1.Examples of entities that currently recognize the Matricula  
            consular as a valid form of ID  
           
           The Los Angeles Mexican Consulate (LAMC) reports that, as of  
          2005, 178 banks in the U.S. accept the Matricula consular as a  
          valid form of ID to open a bank account.  Several major banks,  
          including Bank of America, US Bank, and Wells Fargo are among  
          the banks accepting Matricula consular.  The LAMC also reports  
          that 377 cities, 163 counties, and 1,180 sheriffs' and police  
          departments nationwide recognize the Matricula consular as a  
          valid form of ID.  Also in 2005, the Los Angeles Board of  
          Supervisors approved an amendment to existing Board policy  
          regarding acceptance of Foreign Consulate Identification Cards  
          for identification purposes only.  In March 2009, the City of  
          Los Angeles announced a new program to help low-income  
          households open bank accounts.  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 of identification,  
          including the Matricula consular.

          According to various sources, the Federal Reserve has not  
          specifically stated that banks should allow the use of Matricula  
          Consular, but it does not object to their use as a form of  
          identification.  In a 2002 report to Congress, the U.S. Treasury  
          Department stated that "the regulations [governing a non-U.S.  
          person seeking to open an account] state that financial  
          institutions may accept one or more of the following: a U.S.  
          taxpayer identification number; a passport number and country of  
          issuance; an alien identification card number; or the number and  
                                                                      



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          country of issuance of any other government-issued document  
          evidencing nationality or residence and bearing a photograph or  
          similar safeguard."  (Emphasis added.)  "Thus, the proposed  
          regulations do not discourage bank acceptance of the 'matricula  
          consular' identity card that is being issued by the Mexican  
          government to immigrants."  

          Finally, Bank on America, Governor Schwarzeneggar's 2008  
          initiative to help Californians open bank accounts, encourages  
          financial institutions to relax identification requirements when  
          opening a bank account to include Mexican CID cards.
           
          2.Some have raised concerns about accepting the Matricula  
            consular  

          In 2003, in testimony before the House Judiciary Committee on  
          Immigration, Border Security, and Claims on Consular ID Cards,  
          the FBI stated:

            It is believed that consular ID cards are primarily being  
            utilized by illegal aliens in the United States. ?  The U.S.  
            Government has done an extensive amount of research on the  
            Matricula Consular to assess its viability as a reliable means  
            of identification.  The Department of Justice and the FBI have  
            concluded that the Matricula Consular 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 FBI testimony lists a number of problems that, in its view,  
          allows criminals to fraudulently obtain Matricula consular  
          cards.  These include lack of a centralized database, lack of a  
          network between consulates, ease with which birth certificates  
          can be forged, and ease with which an illegal alien can obtain a  
          Marticula consular.  The FBI believed, at least in 2003, that  
          the cards were vulnerable to both fraud and forgery, which could  
          lead to the threat of criminal activities, including money  
          laundering, check fraud, alien smuggling, identity theft, and  
          terrorist threats.

          In 2003, the Center for Immigration Studies (CIS), issued a  
          Backgrounder titled "IDs for Illegals - The 'Matricula Consular'  
          Advances Mexico's Immigration Agenda."  The CIS is an  
          independent, non-partisan, non-profit research organization  
          "animated by a pro-immigrant, low-immigration vision which seeks  
          fewer immigrants but a warmer welcome for those admitted."  The  
          CIS report argues that there are a number of concerns about the  
                                                                      



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          use of Matricula consular cards for identification purposes in  
          the U.S., such as: 1) the cards are used by illegal aliens to  
          circumvent U.S. immigration law; 2) the card is not a secure  
          identity document because it is often based upon false breeder  
          documents; 3) no safeguards are in place to prevent multiple  
          issuance of cards to the same individual; 4) the card reduces  
          the risk of arrest, jail, and deportation; and 5) the card may  
          become a shield to hide criminal activity.

          In response to these concerns, the author makes the following  
          observations.  We have a new administration in the White House  
          and it is too soon to know what position the new President will  
          take with respect to the use of Matricula consular in the U.S.   
          In 2005, after the two reports discussed above were released,  
          the Mexican Government increased the security measures for the  
          cards.  (See Comment 3.)  The consulates now have a networked  
          database.  The dangers of identity theft, forgery,  
          counterfeiting, and other criminal activities are of as much  
          concern with respect to U.S. IDs as they are with Matricula  
          consular cards.  A recent AP article discussed a number of  
          instances in which government investigators were able to obtain  
          U.S. passports using phony documents.  Finally, employee IDs  
          issued by public entities are an allowed form of identification  
          for purposes of acknowledging executed documents.  It is highly  
          likely that Matricula consular cards are more secure than  
          employee ID cards, given the process through which an individual  
          obtains a Matricula consular card.

           3.Opposition  

          The National Notary Association (NNA) opposes AB 442 on the  
          grounds that it may not be a secure or reliable form of  
          identification.  The NNA writes:

            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 from forged real property deeds (and  
            other important documentary transactions) and prevents  
            identity crimes.  ?  Notaries in this state must not be forced  
            to accept a card that the U.S. Department of Justice and the  
            Federal Bureau of Investigation declare is not a trustworthy  
            identifier.
                                                                      



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          The author and supporters respond that since 2002 a number of  
          significant steps have been taken by the Mexican government to  
          improve the Matricula consular card and the consular database  
          security and reliability procedures.  The author and supporters  
          assert that these improved processes and procedures make the  
          Matricula consular ID card as secure and reliable as other forms  
          of identification used to establish the identity of persons for  
          notarization purposes.  


           




          Support  :  California Catholic Conference; La Raza Lawyers'  
          Association, Central Valley Chapter; California La Raza Lawyers  
          Association; California League of United Latin American  
          Citizens; Immigration Legal Resource Center; Chicano Federation  
          of San Diego, Inc.; PICO California; Central Valley Partnership  
          for Citizenship; Law Office of Gilbert Zavala; California Rural  
          Legal Assistance Foundation; Alianza Latinoamericana por los  
          Derechos de los Inmigrantes

           Opposition  :  National Notary Association

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation :  

          SB 461 (Correa, 2009) would provide that a Matricula consular be  
          added to the list of documents that provide satisfactory  
          evidence that the person making the acknowledgment is the  
          individual who is described in and who executed the instrument.   
          This bill is virtually identical to AB 442 and is in the Senate  
          Judiciary Committee.  SB 461 is a two-year bill.

          AB 99 (De Leon, 2009) would allow secondhand and coin dealers to  
          rely upon a Matricula consular as a form of identification in  
          addition to another item bearing an address.  This bill is in  
          the Senate Public Safety Committee.

           Prior Legislation  :
                                                                      



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          AB 1870 (De Leon, 2008) would have allowed secondhand and coin  
          dealers to rely upon a Matricula consular as a form of  
          identification in addition to another item bearing an address.   
          This bill was vetoed.

          AB 522 (Diaz, 2003), among other things, would have required  
          every city, county, and city and county officer or employee to  
          accept for purposes of personal identification an ID card issued  
          by the Mexican Consulate Office, the same as a driver's license  
          or ID card issued by the DMV, or Matricula Consular, except as  
          specified.  The bill would also have limited the use of a  
          Matricula Consular, or information collected from, or appearing  
          thereon.  This bill was vetoed.

          AB 25 (Nunez, 2002), among other things, would have required  
          state agencies to accept as valid identification of a person a  
          foreign ID card issued by another nation, as defined, to its  
          citizens or nationals, subject to specified exceptions, if  
          specified requirements are met.  The bill would have provided  
          that a foreign ID card would not by itself establish eligibility  
          for employment, voter registration, or public benefits.  This  
          bill died on the Senate Inactive File.

          ACR 229 (Diaz and Firebaugh, Resolution Chapter 187, 2002),  
          urged cities and counties throughout California, including their  
          respective agencies, to accept the Mexican Consular ID cards,  
          known as the "Matricula Consular," as an official form of  
          identification.

           Prior Vote  :

          Assembly Judiciary Committee (Ayes 6, Noes 3)
          Assembly Floor (Ayes 43, Noes 29)

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