BILL ANALYSIS
AB 811
Page 1
ASSEMBLY THIRD READING
AB 811 (John A. Perez)
As Amended May 5, 2009
Majority vote
BANKING & FINANCE 11-0 APPROPRIATIONS 16-0
-----------------------------------------------------------------
|Ayes:|Nava, Gaines, Anderson, |Ayes:|De Leon, Nielsen, |
| |Evans, Fong, Fuentes, | |Ammiano, |
| |Mendoza, Ruskin, Swanson, | |Charles Calderon, Davis, |
| |Torres, Tran | |Duvall, Krekorian, Hall, |
| | | |Harkey, Miller, |
| | | |John A. Perez, Price, |
| | | |Skinner, Solorio, Audra |
| | | |Strickland, Torlakson, |
|-----+--------------------------+-----+--------------------------|
| | | | |
-----------------------------------------------------------------
SUMMARY : Makes clarifying changes to the checking cashing law
related to identification documents. Specifically, this bill :
1)Prohibits a check casher from requiring a customer to purchase a
check cashing identification card to access services or
misrepresent the use of their identification card.
2)Prohibits a check casher from requiring additional fees for
issuing an optional identification card.
3)Prohibits a check casher from selling any other form of
identification other than what is permitted to access check
cashing services.
4)Enhances penalties for making false identification cards to
$1,000, 24 hours of community service, and, in the court's
discretion, imprisonment in the county jail for not more than
one year.
5)Specifies that no part of the fine or community service shall be
suspended or waived.
EXISTING LAW :
1)Defines a "check casher" as a person or entity that for
compensation engages, in whole or in part, in the business of
AB 811
Page 2
cashing checks, warrants, drafts, money orders, or other
commercial paper serving the same purpose. "Check casher" does
not include a state or federally chartered bank, savings
association, credit union, or industrial loan company. [Civil
Code Section 1789.31]
2)Requires check cashers to obtain a permit from the Department of
Justice (DOJ). [Civil Code, Section 1789.37]
3)Allows a check casher to charge a fee of no more than $10 to set
up an initial account and issue an optional identification card
for providing check cashing services. A replacement
identification card may be issued at a cost not to exceed $5.
[Civil Code, Section 1789.35(b)]
4)Prohibits any person from manufacturing or selling an
identification document of a size and form substantially similar
to the identification cards or drivers licenses issued by the
Department of Motor Vehicles. Provides that a violation of
these provisions is a misdemeanor punishable by a fine of
$1,000, which shall not be suspended, and the person is required
to perform not less than 24 hours of community service during
hours when the person is not employed and is not attending
school. [Vehicle Code Sections 13004.1 and 14610.1]
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor and absorbable enforcement costs to the
Department of Corporations (DOC). Local costs, if any, are not
reimbursable.
COMMENTS : California established the Check Casher Permit Program
in 1995, regulated by the DOJ. Every owner of a check cashing
business is required by law to obtain a permit from the DOJ.
While not assuring that a company is reputable, a valid permit
signals that the check casher business has at least followed the
law to be licensed. Check cashing businesses in the state are
required to post for clear public viewing a complete, detailed and
unambiguous schedule of all fees for cashing checks, drafts, money
orders or other commercial paper and for the initial issuance of
any identification card. Consumers also must be able to clearly
view a posted list of valid identification that is acceptable in
lieu of identification issued by the check casher. A check casher
basically engages in the business of cashing checks, warrants,
money orders or similar commercial paper for a fee. The check
casher law does not apply to state and federally chartered banks,
AB 811
Page 3
savings associations, credit unions and industrial loan companies.
Also excluded are retail stores that may incidentally charge a
fee not exceeding $2 to cash checks or money orders as a service
to customers.
Currently, check cashers are allowed to distribute identification
cards for customers to access checking cashing services. These
cards are suppose to be used in case a customer does not have any
other form of identification. Since, a lot of customers are those
without bank accounts and drivers's license, check cashers
consider another from of identifiaction necessary. The
identification has a picture, name, address, sex, hair, eyes,
height, weight, date of birth, social security number (optional),
date issued, signature and right thumbprint. Photo identification
is used as primarily secondary forms of Identification or for a
person to be identified in the case of an emergency.
Need for bill : According to the author's office, "Check cashers
regularly sell identification cards so that customers may be able
to access services. This practice is necessary if a customer has
no other form of identification, but some check cashing facilities
do coerce or compel people into purchasing identification cards.
These check cashing facilities target non-English proficient
people and advertise the sale of identification cards to this
vulnerable population. There are even cases where they advertise
the sale of identification that they claim is a valid California
Identification Card or California Drivers License. Since these
facilities target non-English proficient people, the consumers are
misled into purchasing fraudulent identification.
This bill removes any ambiguity in law by not permitting check
cashers to sell anything other than an optional identification
card intended to access service."
Previous legislation : AB 1658 (Runner) Chapter 743, Statutes of
2007, increased the fine for manufacturing false identification
and licenses from $500 to $1000 and added 24 hours of community
service to be performed while the violator was not attending
school or employed at a school.
Analysis Prepared by : Kathleen O'Malley / B. & F. / (916)
319-3081
AB 811
Page 4
FN: 0000692