BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOU.S.ING COMMITTEE     BILL NO: ab 852
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  DICKINSON
                                                         VERSION: 6/15/14
          Analysis by:  Erin Riches                      FISCAL:  YES
          Hearing date:  June 24, 2014



          SUBJECT:

          Driver's license applications:  financial compensation

          DESCRIPTION:

          This bill prohibits an individual from receiving financial  
          compensation for filling out a driver's license application for  
          another individual.  

          ANALYSIS:

          Existing law generally requires all drivers to hold a California  
          driver's license in order to drive in this state, with limited  
          exceptions such as operation of farm machinery and off-road  
          highway vehicles. 

          Existing law authorizes the state Department of Motor Vehicles  
          (DMV) to issue driver's licenses and identification cards.  In  
          order to obtain a driver's license or identification card, an  
          individual must provide, among other things, a social security  
          number, verification of birthdate and legal presence in the  
          U.S., and a thumb print.  

          Existing law requires DMV, beginning January 2015 or upon  
          approval by the U.S. Department of Homeland Security, to issue a  
          driver's license to an individual who is ineligible for a social  
          security number if the individual can provide additional  
          documentation, as specified.  These licenses are commonly  
          referred to as "driving privilege only" (DP) licenses, because  
          they cannot be used for identification purposes.

           This bill  prohibits any individual from receiving financial  
          compensation for the sole purpose of filling out an original  
          driver's license application for another individual, subject to  
          a civil penalty of $2,500 maximum for each offense.  

          COMMENTS:




          AB 852 (DICKINSON)                                     Page 2

                                                                       



           1.Purpose  .  The author states that DMV, as well as some  
            community groups, have seen an alarming trend in agents who  
            claim that additional fees must be paid to the agent to fill  
            out an individual's application or to obtain materials that  
            are in reality readily available through the DMV.  In  
            response, DMV has included on their informational flyers a  
            statement that one does not need to pay an agent for  
            information services.  The author notes that one case of such  
            fraud has already been documented in the San Jose area, and  
            the San Jose Police Department has issued a bulletin warning  
            the community of unscrupulous operators posing as lawyers or  
            DMV staff.  The author states that immigrants who are not  
            familiar with government services are vulnerable to paying for  
            unnecessary consultations or assistance for a new government  
            services, e.g., DP licenses.  Just as the Legislature has  
            previously restricted attorneys and immigrant consultants from  
            charging for reform act services prior to the passage of  
            comprehensive immigration reform, or regulating advertising of  
            insurance brokers, this bill seeks to minimize predatory  
            behavior aimed at a vulnerable population.  

           2.Background:  AB 60  .  AB 60 (Alejo), Chapter 524, Statutes of  
            2013, requires DMV to issue a driver's license to an  
            individual who is ineligible for a social security number if  
            the individual can provide additional documentation, as  
            specified.  Pursuant to the federal REAL ID Act, the DP  
            license cannot be used for identification purposes, and DMV  
            must obtain approval on the license design from the U.S.  
            Department of Homeland Security before it may begin issuing  
            the DP license.  DMV is in the process of implementing this  
            law and expects to begin issuing DP licenses in January 2015.

            AB 60 includes a provision allowing an applicant who is unable  
            to provide satisfactory proof of legal presence in the U.S. to  
            sign an affidavit attesting that he or she is ineligible for a  
            social security number and unable to provide proof of legal  
            presence.  AB 60 requires DMV to accept this affidavit in lieu  
            of a social security number and specifies that the affidavit  
            is not public record.  In response to concerns raised by  
            immigrants' rights groups, the author amended AB 60 to strike  
            the specific penalty for anyone perjuring on an affidavit and  
            to further protect those applying for DP licenses.  

            SB 853 (Committee on Budget and Fiscal Review), the  
            transportation trailer bill currently awaiting the Governor's  




          AB 852 (DICKINSON)                                     Page 3

                                                                       


            signature, allows an applicant to use the DMV driver's license  
            application to declare that he or she has never been issued a  
            social security number or is not presently eligible for one.   
            SB 853 thus protects DP applicants by not requiring them to  
            sign an affidavit that would potentially cause an applicant to  
            perjure himself or herself.  Similarly, this bill would  
            provide protections to those applying for DP licenses by  
            ensuring they are not charged for assistance with filling out  
            the application.

           3.What if an applicant wants help with the application  ?  This  
            bill prohibits an individual from charging a fee for the sole  
            purpose of completing a driver's license application.  The  
            author notes that this bill does not prohibit assistance to  
            complete an application in the context of other benefits; for  
            example, a driving school may provide training and test  
            preparation for a driver's license and, as part of the class,  
            guide pupils through filling out an application.


           4.Bill history  .  This bill originally pertained to the State Bar  
            of California, but the author amended it on June 15, 2014, to  
            relate to driver's licenses.  Because of these amendments, the  
            Senate Rules Committee referred this bill from the Senate  
            Judiciary Committee to this committee.

          RELATED LEGISLATION:
          
          Last year, the Legislature passed and Governor Brown signed two  
          bills aimed at curbing predatory practices against immigrants:

          AB 35 (Hernandez), Chapter 571, Statutes of 2013, among other  
          provisions, provides that only immigration consultants,  
          attorneys, notaries public, and organizations accredited by the  
          U.S. Board of Immigration Appeals (U.S. BIA) shall be authorized  
          to charge clients or prospective clients fees for providing  
          consultations, legal advice, or notary public services  
          associated with filing an application for the federal Deferred  
          Action for Childhood Arrivals Program (DACA).  It also prohibits  
          U.S. BIA-accredited entities from participating in price gouging  
          practices when a client or prospective client solicits services  
          associated with filing a DACA application.

          AB 1159 (Gomez), Chapter 574, Statutes of 2013, among other  
          provisions, prohibits immigration services providers from  
          demanding or accepting advance payment from an individual for  




          AB 852 (DICKINSON)                                     Page 4

                                                                       


          immigration reform act services, before the enactment of any  
          immigration reform act.

          Assembly Votes not relevant
               
          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             June 18,  
          2014.)

               SUPPORT:  California Immigrant Policy Center

               OPPOSED:  None received.