BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2189
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          Date of Hearing:   August 30, 2012

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
             AB 2189 (Cedillo and Skinner) - As Amended:  August 24, 2012
           
          SUBJECT  :  Driver's licenses

           SUMMARY  :  Allows certain applicants to qualify for a driver's 
          license without having to provide a valid social security 
          account number (SSAN) to the Department of Motor Vehicles (DMV); 
          authorizes an alternative procedure for renting vehicles that 
          allows vehicle rental agencies to verify driver's license 
          information electronically from remote locations via information 
          kiosks.  Specifically,  this bill  :  

          1)Allows a driver's license applicant who is not eligible for an 
            SSAN, but provides satisfactory proof of legal presence in the 
            United States, to be eligible to receive an original driver's 
            license if he or she meets all the other qualifications for 
            licensure.  

          2)Provides that any federal document demonstrating favorable 
            action by the federal government for acceptance of a person 
            into the deferred action for childhood arrivals program 
            satisfies the requirement that a driver's license applicant 
            submit satisfactory proof that his or her presence in the 
            United States is authorized under federal law.  

          3)Allows DMV to issue an original driver's license to a person 
            without an SSAN under the conditions described in #1 above.  

          4)Declares the intent of the Legislature that provisions #1, 2, 
            and 3 above are meant to codify the holding in Lauderbach v. 
            Zolin (1995) 35 Cal.App.4th 578, that persons whose presence 
            in the United States is authorized by federal law, but who are 
            ineligible for SSANs, are entitled to an original driver's 
            license if they are otherwise qualified for the license.  

          5)Allows a person renting a motor vehicle to another person, in 
            inspecting the driver's license of the person to whom the 
            vehicle is to be rented, to compare the photograph on the 
            license with the person to whom the vehicle is to be rented.  

          6)Provides that a rental company is not required to inspect a 








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            renters driver's license when entering into a rental 
            transaction for a vehicle that is located remotely, is part of 
            a regional fleet, and is available to be rented electronically 
            through a membership agreement on either an hourly or daily 
            basis.  

           EXISTING LAW  :

          1)Requires applicants for driver's licenses to provide their 
            Social Security SSANs and proof of their legal presence to 
            DMV.  

          2)Requires DMV to verify the legal presence of driver's license 
            applicants.  Pending that verification, DMV may issue a 
            temporary license.  

          3)Prohibits a person from renting a motor vehicle to another 
            unless the person to whom the vehicle is rented is a validly 
            licensed driver, as specified, and the person renting to that 
            driver has inspected the person's driver's license and 
            compared the signature on the license with the signature of 
            the driver written in his or her presence.  

           FISCAL EFFECT  :  Unknown.  This bill has not been reviewed by the 
          fiscal committee of either house.  Nevertheless, if, as the 
          author suggests, there are as many as 450,000 individuals who 
          will qualify for the federal deferred action program, there will 
          certainly be a significant workload impact on DMV.  

           COMMENTS  :  

          1) Current law provides that DMV must "require every applicant 
          for an original driver's license or identification card to 
          submit satisfactory proof that the applicant's presence in the 
          United States is authorized under federal law."  DMV may not 
          issue an original driver's license to persons who cannot submit 
          satisfactory proof of legal presence.  In addition, existing law 
          provides that "the department shall require every application 
          for a driver's license to contain the applicant's social 
          security number and any other number or identifier determined to 
          be appropriate by DMV."  The California Code of Regulations 
          specifies approximately 27 documents that may be submitted as 
          satisfactory proof of legal presence status.  It a misdemeanor 
          for any person to assist knowingly in obtaining a driver's 
          license or identification card for any person whose presence in 








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          the United States is not authorized under federal law.  

          The legal presence provision was enacted by the Legislature (SB 
          976 (Alquist), Chapter 820, Statutes of 1993) in order to make 
          the driver's license a more secure form of identification with 
          the intent of preventing undocumented persons from being 
          licensed or obtaining DMV identification cards.  The supporters 
          of SB 976 asserted that the driver's license was a "breeder 
          document" that was used to acquire other documentation and 
          served as the most widely accepted form of personal 
          identification used to qualify for both private and public 
          sector services and programs.  

          In response to the enactment of Senate Bill 976, DMV authorized 
          a variety of birth verification/immigration status documents 
          that applicants for an original driver's license or 
          identification card can submit for the purpose of documenting 
          legal presence.  When an applicant submits a specified document, 
          such as a birth certificate, it is reviewed for acceptability 
          and authenticity by a DMV field office employee.  For 
          verification of Bureau of Citizenship & Immigration Services 
          (formerly the "Immigration and Naturalization Service") 
          documents submitted by applicants, DMV has direct computer 
          access to the Systematic Alien Verification for Entitlements 
          (SAVE), an electronic intergovernmental-sharing system 
          maintained by the U.S. Department of Homeland Security (DHS) to 
          ensure that only legally entitled immigrants receive government 
          benefits and services.  

          The author of this bill has repeatedly tried, for over a decade, 
          to authorize immigrants without proof of legal residence to 
          obtain driver's licenses.  Only one of his previous bills 
          survived the legislative process, but even that one was repealed 
          before being implemented.  This bill seeks to allow 
          beneficiaries of the recently-established federal "Deferred 
          Action for Childhood Arrivals" program to qualify for driver's 
          licenses in the absence of an SSAN, which is otherwise required 
          of license applicants.  It builds on existing law which already 
          allows noncitizens to obtain California driver's licenses if 
          they can provide DMV with proof of their legal presence in the 
          U.S.  (It should be noted here that the documentation likely to 
          be provided to beneficiaries of this program - an employment 
          authorization card - would allow the recipient to obtain an 
          SSAN.)  









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          According to DHS, under the Deferred Action program, the U.S. 
          Citizenship and Immigration Services (USCIS) is accepting 
          requests for consideration of deferred immigration enforcement 
          action for childhood arrivals.  Deferred action is a 
          discretionary determination to defer removal action of an 
          individual as an act of prosecutorial discretion.  Under this 
          process, USCIS will consider requests on a case-by-case basis.  
          While this process does not provide lawful status or a pathway 
          to permanent residence or citizenship, individuals whose cases 
          are deferred will not be removed from the United States for a 
          two-year period, subject to renewal, and may also receive 
          employment authorization.  To be considered for this process, 
          applicants must show that they meet certain conditions such as 
          having come to the United States before reaching their 16th 
          birthday, having continuously resided in the United States since 
          June 15, 2007, being currently in school or having completed 
          high school, or being an honorably discharged veteran, and not 
          having been convicted of a felony, significant misdemeanor, or 
          three or more misdemeanors.  


          According to the author, there are approximately 450,000 
          undocumented immigrants who might meet the requirements of the 
          federal deferred action directive either now or in the near 
          future.  The author notes that, now that the federal government 
          has authorized the presence of these individuals in this 
          country, qualifying immigrants should be eligible to receive a 
          driver's license.  This bill ensures that those individuals who 
          qualify for the deferred action can obtain driver's licenses.

          Existing law enables DMV to adopt regulations and procedures for 
          verifying that a driver's license applicant's presence in the U. 
          S. is authorized under federal law.  According to the DMV, it 
          accepts a number of federal documents to verify an applicant's 
          legal presence in the country, and DMV does not indicate that 
          the new deferred action for childhood arrivals program should 
          pose any additional challenges to the verification process.  In 
          light of this, it is unclear that the eligibility provisions of 
          this bill are necessary to implement the new federal changes.

          2) Currently, a vehicle rental agency must follow security 
          procedures that help ensure that the vehicle renter is a valid, 
          licensed driver.  Further, as an added check, the rental agency 
          is required to compare the person's driver's license signature 








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          with that of the person renting the vehicle.  This bill would 
          allow a rental agency to approve a vehicle under the current 
          terms but also provide for an alternative procedure for renting 
          vehicles by allowing driver information to be verified 
          electronically.  

          The Hertz Corporation (Hertz), writing in support of this bill, 
          contends that current law requiring  a valid identification card 
          to be presented at the time of the transaction and verified via 
          visual comparison of signatures is outdated and was implemented 
          in 1994, before photographs became standard on driver's 
          licenses.  That law requires that the rental agent be physically 
          in the presence of the customer and visually compare the 
          signature on the license with that of the signature on the 
          contract.  Hertz further indicates that "electronic innovations 
          such as kiosks where rental car transactions can occur while 
          retaining protections in existing law provide a face-to-face 
          interaction between rental agent and customer while not 
          requiring the physical presence of a rental agent.  These new 
          kiosks will scan an ID, charge a credit card, provide 
          face-to-face assistance from a live operator, and are equipped 
          to check a driver's license.  In addition, we currently request 
          that a customer hold up the driver's license to the camera to 
          compare the photo with the customer."  

          According to the author, this bill addresses transactions that 
          are completed through a kiosk by allowing an inspection of a 
          driver's license through electronic means.  "This simple and 
          unobtrusive amendment will keep California current with advances 
          in technology and will allow Hertz to bring the benefits of its 
          innovation to the people of California."  

          Maintaining security - customer convenience:  By allowing a 
          person to rent a vehicle via electronic means has comparisons 
          with interacting with an agent in person.  The advantage that 
          this bill seeks to provide is speed and convenience of the 
          customer in the ability to process a car rental agreement 
          without waiting in line at the car rental delivery location.  
          Hertz contends that security protections from renters using 
          false identification to rent vehicles is basically the same 
          whether or not the renter is standing face-to-face either in 
          front of the rental agent or in front of the kiosk camera.  A 
          car renter can easily provide a signature before a rental agent, 
          as required under current law that resembles the signature that 
          is signed on the false driver's license.  This bill will have no 








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          effect on that type of illegal activity.  According to Hertz, 
          the kiosk cameras and electronic conveyance of driver's license 
          information provides similar protections as if the renter were 
          processing the rental agreement in person, it just makes renting 
          more convenient.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           

          Analysis Prepared by  :   Howard Posner / TRANS. / (916) 319-2093