BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1546


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          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  








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            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,











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             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,  








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            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  








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            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.











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          Analysis Prepared by:Dharia McGrew / HEALTH / (916) 319-2097