June 11, 2008


Immigrants adjusting to license rules

Vehicle insurers, sellers experience business drop-off

By Thelma Guerrero-Huston
Statesman Journal

Until recently, ElĂ*as Garcia of Salem had been in a quandary — he couldn't decide whether to return his 2006 Chevy Tahoe to the dealership where he bought it or continue to drive the vehicle even after his driver's license expires late next month.

He chose the latter.

"It wasn't an easy decision," the Honduras native said in Spanish. "I have a family to feed and bills to pay, so I need a car so I can get to work."

On July 1, a new driver's license law will take effect in Oregon. The new rule was set in motion by Senate Bill 1080, which was approved by the state Assembly and signed into law by Gov. Ted Kulongoski during a supplemental legislative session in February.

Under the new law, illegal immigrants will not be eligible to obtain, renew or replace an Oregon driver's license.

Like Garcia, many plan to continue to drive without a license, said Abel Valladares, a community organizer with CAUSA, an immigrant-rights coalition in Woodburn.

"They aren't leaving the state like some people had hoped they would," Valladares said.

Some opponents of illegal immigration disagree, saying that as fewer unauthorized immigrants are allowed to drive, they'll leave Oregon or self-deport.

"People already are moving out of the state and the country because of the driver's license bill," said Jim Ludwick, the president of Oregonians for Immigration Reform, a McMinnville-based group that advocates against illegal immigration.

Ludwick cited an article published in March by an Oregon newspaper, which reported that some undocumented immigrants planned to relocate to Vancouver, Wash.

Washington does not require proof of residency to get a driver's license.

"Without a driver's license, it's much, much harder to remain in society," Ludwick said. "A license gives you proof of identity and the confidence to move around; otherwise, you run afoul of the law and have to be looking over your shoulder all the time. That can't be comfortable."

Beginning July 1, all Oregon drivers, including noncitizens, will have to show proof of U.S. citizenship and/or legal presence to get, renew or replace a driver's license.

The requirement is in addition to a separate rule that took effect Feb. 4. The rule was part of an executive order issued in November by Kulongoski.

Under that rule, people seeking to obtain, renew or replace an Oregon driver's license must submit proof of identity, Oregon residency and a verifiable Social Security number.

The changes aren't just having an impact on undocumented immigrants.

"Our sales have dropped by 50 percent," said Clara Lopez, who leads the financing department at Bob's Auto & Truck Sales in Woodburn, where Hispanics had accounted for 90 percent of the customer base.

"Many of them have returned their cars to us because their license has expired or will expire after the new law takes effect," Lopez said. "It's hurt our business so much that we've had to lay off workers, and next we're probably going to be cutting back on advertising."

Salem Nissan doesn't plan to cut back on its advertising, but management is concerned that the new law could take a bite out of business. Hispanics make up 35 percent of the dealer's customer base.

"Because they tend to have large families, we stock vehicles specifically for Latino (immigrant) families, like used SUVs," said Sean Alderman, the dealership's sales manager. "But if I can't get them financing because they don't have a driver's license, that's going to hurt us."

At Santana Insurance Agency in Keizer, a Farmers affiliate, insurance cancellations are on the rise. So are insurance rates.

"Because those driving without a driver's license can't get auto insurance, (licensed) drivers in the state will soon seen their insurance rates go up because of uninsured motorist coverage," said Beth Mora, a customer-service representative at the agency. "You can expect to see up to a 10 percent increase any time now."

Not all undocumented immigrants lack driver's licenses.

Months before Kulongoski's executive order took effect in February, crowds of noncitizen immigrants descended on the Mexican Consulate in Portland to get identification cards that allowed them to obtain an Oregon driver's license, which is valid for eight years.

The state's Driver and Motor Vehicle Services Division did not have data available Wednesday about the number of immigrants who sought licenses in advance of the February change.

"What we have seen is a 90 percent drop in the number of fraud alerts by people coming from other states to get an Oregon driver's license," DMV spokesman David House said. "That's what the governor's executive order and Senate Bill 1080 were designed to do — to take away that incentive."

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