BILL ANALYSIS Ó AB 1546 Page 1 Date of Hearing: January 12, 2016 ASSEMBLY COMMITTEE ON HEALTH Rob Bonta, Chair AB 1546 (Olsen) - As Amended January 7, 2016 SUBJECT: Vital records. SUMMARY: Requires the State Registrar, in consultation with the County Recorders' Association of California and other stakeholders, to study the security features for paper used to print vital records, or alternative security features that are equal to or better than those currently mandated. Requires the State Registrar to report its findings and recommendations to the Legislature by January 1, 2018. Contains an urgency clause to ensure that the provisions of this bill go into immediate effect upon enactment. EXISTING LAW: 1)Requires the State Registrar (the Director of the Department of Public Health (DPH)), a local registrar, or a county recorder, upon payment of a required fee, to supply applicants a certified copy of birth, fetal death, death, marriage, or divorce records. 2)Establishes the Office of Vital Records within DPH to maintain a uniform system for registration and a permanent central registry with a comprehensive and continuous index for all AB 1546 Page 2 birth, death, fetal death, marriage and dissolution certificates registered for vital events which occur in California 3)Requires that each certified copy of a birth, death, or marriage record contain specified information and be printed on sensitized security paper with specified security features, including, a) Intaglio print; b) Latent image; c) Fluorescent, consecutive numbering with matching barcode; d) Microprint line; e) Prismatic printing; f) Watermark; g) Void pantograph, AB 1546 Page 3 h) Fluorescent security threads; i) Fluorescent fibers; and, j) Any other security features deemed necessary by the State Registrar. FISCAL EFFECT: This bill has not been analyzed by a fiscal committee. COMMENTS: 1)PURPOSE OF THIS BILL. Official copies of vital records are required for myriad of important tasks, such as proving identity and managing estates. According to the author, the recent shortage of secure paper for printing vital records caused some counties to set limits on how many documents one can receive, which is problematic for cases like estate matters that require multiple copies of the same document. The author asserts that this bill is needed for the state to study long-term alternatives to the current security requirements for vital records, in order to provide counties with a variety of options they can rely on well into the future. 2)BACKGROUND. California statute requires vital records to be printed on chemically sensitized security paper containing nine specific security features (as specified in 3a through i above under existing law). At the start of 2015, due to mergers and acquisitions of various bank note companies, only one company (Sekuworks) in the United States manufactured paper that met the security requirement for vital records, AB 1546 Page 4 specifically, intaglio printing. "Intaglio printing" is a security feature in which the image is incised into a surface, and the incised line or sunken area holds the ink. In September 2015 Sekuworks suddenly closed. Local governments and the State Registrar were unable to find another company within the U.S. capable of printing suitably secure paper, creating a potential shortage of very important documents. The paper with appropriate security features was instead purchased from a Canadian company, Canadian Bank Note. Ultimately, VeriTrack Inc. purchased Sekuworks and was able to continue printing operations. According to the State Registrar, all counties either previously out or in short supply have received recent supplies of appropriate paper from either Canadian Bank Note or VeriTrack. While the recent immediate shortage has been alleviated, it has raised concerns that reliance on a very small number of companies for the state's security paper could pose a serious future risk. Certified copies of vital records are required for numerous personal, financial, and business transactions. A shortage of paper could have serious ramifications on these activities. 3)SUPPORT. The California Association of Clerks and Election Officials writes in support that when the lone company capable of supplying paper with intaglio print closed its doors, California counties discovered the vulnerability that exists in attempting to comply with the current requirements. Supporters generally state that the security requirements in statute have not been reviewed recently and in light of technological changes the time for a review of the security measures has come. 4)RELATED LEGISLATION. AB 1238 (Linder) allows individuals to request certified copies of vital records through electronic submission. AB 1238 is set to be heard in this Committee on AB 1546 Page 5 January 12, 2016. 5)POLICY COMMENT. While the urgent situation that caused the introduction of this bill has been resolved, there is potential that a shortage or other problem may occur in the future. Jurisdictions within the state may find themselves in a dire shortage of appropriately secure paper before the State Registrar completes the report required in this bill. The author may wish to consider amendments that give the Registrar authority to suspend one or more security features, such as intaglio print, in the event of extreme paper shortage until such time that suitable alternative security measures can be identified by the study done pursuant to this bill. REGISTERED SUPPORT / OPPOSITION: Support California State Association of Counties (cosponsor) County Recorders Association of California (cosponsor) California Association of Clerks and Election Officials. Rural County Representatives of California Opposition None on file. AB 1546 Page 6 Analysis Prepared by:Dharia McGrew / HEALTH / (916) 319-2097