BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2189
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          (  Without Reference to File  )

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2189 (Cedillo and Skinner)
          As Amended  August 24, 2012
          Majority vote
           
           
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          |ASSEMBLY:  |76-0 |(May 14, 2012)  |SENATE: |25-7 |(August 29, 2012)    |
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          |COMMITTEE VOTE:  |9-1  |(August 30, 2012)   |RECOMMENDATION: |concur    |
          |(TRANS.)         |     |                    |                |          |
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          Original Committee Reference:    TRANS  .

           SUMMARY  :  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; 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).  
           
           The Senate amendments  : 

          1)Clarify, under certain circumstances, that conventional vehicle 
            rental companies can rent cars similar to existing car sharing 
            companies.  

          2)Allow 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.  

          3)Provide 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.








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          4)Allow DMV to issue an original driver's license to a person 
            without an SSAN under the conditions described in 2) above.  

          5)Declare the intent of the Legislature that provisions 2), 3), and 
            4) 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.  
           
          EXISTING LAW  :

          1)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.  

          2)Requires applicants for driver's licenses and identification (ID) 
            cards to provide their Social Security SSANs and proof of their 
            legal presence to DMV.  

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

           AS PASSED BY THE ASSEMBLY  , this bill dealt only with the issue of 
          car rental agencies verifying driver's license information 
          electronically from remote locations via information kiosks.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  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 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 








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          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 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.  

          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 








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          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 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 SB 976, DMV authorized a variety of 
          birth verification and 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 and 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 aliens 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 








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          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.)  


          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.  


           
          Analysis Prepared by  :   Howard Posner / TRANS. / (916) 319-2093 FN: 
          0005850