BILL ANALYSIS Ó AB 1546 Page 1 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 | | AB 1546 Page 2 | | | | | | | | | | ------------------------------------------------------------------ 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; AB 1546 Page 3 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 AB 1546 Page 4 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. AB 1546 Page 5 There is no known opposition to this bill. Analysis Prepared by: Dharia McGrew / HEALTH / (916) 319-2097 FN: 0002574