BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1546


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          ASSEMBLY THIRD READING


          AB  
          1546 (Olsen)


          As Amended  January 7, 2016


          2/3 vote. Urgency


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Health          |19-0 |Bonta, Maienschein,   |                    |
          |                |     |Bonilla, Burke,       |                    |
          |                |     |Chávez, Chiu, Gomez,  |                    |
          |                |     |Gonzalez, Roger       |                    |
          |                |     |Hernández, Lackey,    |                    |
          |                |     |Nazarian, Patterson,  |                    |
          |                |     |Ridley-Thomas,        |                    |
          |                |     |Rodriguez, Santiago,  |                    |
          |                |     |Steinorth, Thurmond,  |                    |
          |                |     |Waldron, Wood         |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |17-0 |Gomez, Bigelow,       |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Quirk, Wagner, |                    |
          |                |     |Weber, Wood           |                    |








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          |                |     |                      |                    |
          |                |     |                      |                    |
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          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 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;








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             f)   Watermark;


             g)   Void pantograph,


             h)   Fluorescent security threads;


             i)   Fluorescent fibers; and,


             j)   Any other security features deemed necessary by the  
               State Registrar.


          FISCAL EFFECT:   According to the Assembly Appropriations  
          Committee, minor and absorbable costs to the California  
          Department of Public Health to complete the report (Health  
          Statistics fund).


          COMMENTS:  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. 


          California statute requires vital records to be printed on  
          chemically sensitized security paper containing nine specific  








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          security features (as specified in 3 a) 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, 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 United States 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. 


          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.  










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          There is no known opposition to this bill. 


          Analysis Prepared by:                     Dharia McGrew / HEALTH  
          / (916) 319-2097                                 FN: 0002574