BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 442

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          GOVERNOR'S VETO
          AB 442 (Arambula)
          As Amended  April 1, 2009
          2/3 vote


           JUDICIARY           6-3                                         

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          |     |Feuer, Brownley, Evans,   |     |                          |
          |     |Jones, Lieu, Monning      |     |                          |
          |     |                          |     |                          |
          |     |                          |     |                          |
          |Ayes:|                          |     |                          |
          |     |                          |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Tran, Knight, Nielsen     |     |                          |
          |     |                          |     |                          |
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          |ASSEMBLY:  |43-29|(April 20,      |SENATE: |24-15|(August 24,    |
          |           |     |2009)           |        |     |2009)          |
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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.










                                                                  AB 442

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           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:

               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  










                                                                  AB 442

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          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 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  










                                                                  AB 442

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          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;

          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  










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          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 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  










                                                                  AB 442

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          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.
           
          GOVERNOR'S VETO MESSAGE  :

          "This bill provides that a notary public may reasonably rely on  
          a matricula consular issued by the government of the United  
          States of Mexico as proper identification to prove the identity  
          of an individual who executes a written instrument.  While it is  
          important that individuals be able to identify themselves for  
          notarization purposes, the Civil Code already provides for more  
          secure forms of identification than the matricula  
          consular-including Mexican driver's licenses and passports-to  
          identify Mexican nationals, a fact which obviates the need for  
          this legislation.  Additionally, California notaries should not  
          be required to accept a form of identification that the Federal  
          Bureau of Investigation and the U.S. Department of Justice  
          continue to consider untrustworthy."
           

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

                                                                FN: 0003287