BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    AB 1546             
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          |AUTHOR:        |Olsen                                          |
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          |VERSION:       |April 14, 2016                                 |
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          |HEARING DATE:  |June 15, 2016  |               |               |
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          |CONSULTANT:    |Melanie Moreno                                 |
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           SUBJECT  :  Vital records

         SUMMARY  :1)  Permits local registrars to release vital record indices to  
          the county recorder within its jurisdiction for purposes of the  
          preparation or maintenance of the indices of the county  
          recorder.  Permits the Department of Public Health (DPH) to  
          suspend the use of any security feature required under existing  
          law if necessary to supply an applicant with a certified copy of  
          a birth, death, or marriage record. Requires DPH, in  
          consultation with the County Recorders' Association of  
          California and other stakeholders, to study all security  
          features for paper used to print vital records, and to submit a  
          report to the Legislature.
          
          Existing law:
          1)Requires the Director of the DPH, acting as the State  
            Registrar, to administer the registration of births, deaths,  
            fetal deaths, and marriages. 

          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  
            birth, death, fetal death, marriage and dissolution  
            certificates registered for vital events which occur in  
            California.

          3)Requires that specified birth, death, and marriage record  
            indices prepared or maintained by local registrars and county  
            recorders be kept confidential.  Permits the State Registrar,  
            at his or her discretion, to release vital record indices to a  
            government agency. Requires, notwithstanding this requirement,  
            local registrars and county recorders to release, when  
            requested, vital record indices to the State Registrar.







          AB 1546 (Olsen)                                    Page 2 of ?
          
          

          4)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: intaglio print; latent image; fluorescent,  
            consecutive numbering with matching barcode; microprint line;  
            prismatic printing; watermark; void pantograph, fluorescent  
            security threads; fluorescent fibers; and, any other security  
            features deemed necessary by the State Registrar.
          
          This bill:
          1)Permits local registrars to release their comprehensive birth  
            and death record indices to the county recorder within its  
            jurisdiction for purposes of the preparation or maintenance of  
            the indices of the county recorder.  

          2)Permits DPH to suspend the use of any security feature  
            described in 4) of existing law above if necessary to enable  
            the department, a local registrar, county recorder, or county  
            clerk to supply an applicant with a certified copy of a birth,  
            death, or marriage record.

          3)Requires DPH, in consultation with the County Recorders'  
            Association of California and other stakeholders, to study all  
            security features for paper used to print vital records, or  
            alternative security features that are equal to or better than  
            those that are currently mandated. Requires DPH, on or before  
            January 1, 2018, to submit to the Legislature a report that  
            contains the findings of the study and legislative  
            recommendations pertaining to those findings, as specified.

          4)Contains an urgency clause that will make this bill effective  
            upon enactment.

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

           PRIOR  
          VOTES  :  
          
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          |Assembly Floor:                     |79 - 0                      |
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          |Assembly Appropriations Committee:  |17 - 0                      |







          AB 1546 (Olsen)                                    Page 3 of ?
          
          
          |------------------------------------+----------------------------|
          |Assembly Health Committee:          |19 - 0                      |
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          COMMENTS  :
          1)Author's statement.  According to the author, vital records  
            are required to be used in a myriad of important tasks, such  
            as proving identity and managing estates, so it is essential  
            that Californians have access to copies of their documents.  
            However, the fact that our state's security paper relies  
            solely on one company is an enormous risk. AB 1546 will call  
            upon the State Registrar to study the feasibility of our  
            state's vital record security measures. To ensure that county  
            offices can continue to provide citizens with vital records,  
            this bill will authorize the State Registrar to suspend  
            security features in an emergency. AB 1546 also allows a local  
            health registrar to share vital records data with its local  
            recorder for the purposes of creating and maintaining an index  
            of issued certificates, and delivering these important  
            documents quickly and securely to the public. AB 1546 will  
            bring California's vital records into the 21st century and  
            ensure that our constituents can receive their most precious  
            documents.

          2)Background. The Office of Vital Records within DPH is charged  
            with maintaining a uniform system for registration and a  
            permanent central registry with a comprehensive and continuous  
            index for all birth, death, fetal death, marriage, and  
            dissolution certificates registered for vital events which  
            occur in California, which are over one million events each  
            year. Certified copies of vital records are available from  
            DPH, 58 county recorders, and 61 local health jurisdictions.  
            According to DPH, it maintains, and can provide, birth and  
            death records from 1905 to the present.  For marriage records,  
            DPH maintains and can provide those from 1946 to the present,  
            with some years excluded.  At the local level, birth and death  
            records for current-year events and one year prior are  
            available from the county health department; records for all  
            years are maintained by the county recorder. Public marriage  
            records may be obtained from the county recorder; confidential  
            marriage records are available only through the county clerk  
            of the county where the license was issued. 
            
          3)Printing of vital records.   California statute requires vital  
            records to be printed on chemically sensitized security paper  







          AB 1546 (Olsen)                                    Page 4 of ?
          
          
            containing nine specific security features [as specified in 4)  
            of "Existing law" above].  In early 2015, DPH and local  
            jurisdictions were aware of only one company (Sekuworks) in  
            the U.S. that manufactured paper which 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 June 2015 Sekuworks unexpectedly  
            shut down operations.  Local jurisdictions and DPH were unable  
            to immediately find another company within the U.S. capable of  
            printing suitably secure paper.  However, paper with  
            appropriate security features was purchased for these purposes  
            from a Canadian company, Canadian Bank Note.  However, later  
            that month, VeriTrack, Inc. announced it had purchased the  
            security label and vital documents production equipment,  
            including intaglio printing, formerly owned by Sekuworks, and  
            was able to begin producing custom intaglio printed documents  
            and labels, anti-counterfeit & tamper-indicating labels, tapes  
            & seals in October 2015. According to DPH, all jurisdictions  
            either out or in short supply received supplies of banknote  
            security paper in October and November 2015 from either  
            Canadian Bank Note or VeriTrack.  While the shortage of  
            banknote security has been mitigated, it has raised concerns  
            among the sponsors of this bill, the California State  
            Association of Counties and the County Recorders Association  
            of California, that reliance on a very small number of  
            companies for the state's security paper could pose a serious  
            future risk.  

          4)Related legislation. AB 1238 (Linder), permits, if a request  
            for a certified copy of a birth, death, or marriage record is  
            made electronically, an official to accept an electronic  
            acknowledgment verifying the identity of the requestor using a  
            remote identity proofing process to ensure the requester is an  
            authorized person.  AB 1238 was held on the Assembly  
            Appropriations Committee suspense file.

          5)Support.  The California Association of Clerks and Election  
            Officials writes 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. The  
            California State Association of Counties writes that  
            California is only one of two states which require intaglio  
            printing, and when Sekuworks closed, the counties were left  
            with declining amounts of secure paper and limited options for  







          AB 1546 (Olsen)                                    Page 5 of ?
          
          
            purchasing more. The County Recorders' Association of  
            California state that the sudden closure of the only business  
            in the U.S. to produce Intaglio print paper left California's  
            local governments scrambling to produce vital records paper  
            that meets the state's mandated security standards, and the  
            delay in identifying a vendor to provide the certificate paper  
            resulted in some counties having to limit the number of  
            certificates that customers could purchase. The Rural County  
            Representatives of California writes that while counties have  
            been able to secure temporary resolution, this bill would help  
            to provide a permanent solution to this problem. The Health  
            Officers Association of California writes that though the  
            shortage has been resolved, this disruption of services  
            exposed a vulnerability in California's vital records system,  
            and relying on one company to produce these security papers is  
            a tremendous risk.
          
          6)Oppose unless amended.  DPH writes that this bill includes an  
            urgency clause to ensure individuals have access to their  
            vital records in an emergency banknotes shortage; however, the  
            original basis for the declaration or urgency statute has been  
            alleviated, and the jurisdictions in California that were  
            impacted by the banknote paper shortage have since received  
            supplies of banknote.  DPH requests two amendments, described  
            below, to permit them to act quickly in unforeseen banknote  
            shortage circumstances and to remove conflicts with privacy  
            protections around vital records in existing law.
          
          7)Policy comment.  It is unclear whether DPH would use the  
            authority to suspend one or more of the vital records that are  
            issued.  If DPH did allow for the suspension of a security  
            feature, the lack of a uniform document format during that  
            time could result in a person's vital record being deemed  
            unacceptable to agencies that require them for services.  The  
            author may consider, if California is one of only a few states  
            to still require intaglio print, and there is only one U.S.  
            manufacturer that makes paper with it, just deleting that  
            requirement from the law.
          
          8)Amendments. The author has requested that the Committee  
            approve the following amendments to address concerns raised by  
            DPH:
          
               a)     This bill permits local registrars to release  
                 comprehensive birth and death record indices directly to  
                 county recorders, however currently law permits DPH to  







          AB 1546 (Olsen)                                    Page 6 of ?
          
          
                 release these indices to government agencies for official  
                 government business, and provides privacy protections.  
                 According to DPH, this provision of this bill conflicts  
                 with privacy protections found in existing law, which  
                 restrict access to the confidential portion of the birth  
                 certificate and confidential electronic birth parent  
                 linkage data contained in the comprehensive birth index  
                 data file.  On page 3 beginning on line 15, insert:
                 
                 The comprehensive birth indices released to the county  
                 recorder shall be subject to the same restrictions as the  
                 confidential portion of a birth certificate in Section  
                 102430.

               b)     This bill provides DPH the authority to suspend the  
                 use of any security feature to ensure that they, local  
                 registrars, county recorders and county clerks are able  
                 to provide uninterrupted supply of certified copies to  
                 individuals in case of a shortage. DPH is neutral on the  
                 intent of this provision, but points out that as  
                 currently drafted, DPH would be required to seek  
                 emergency regulations to exercise the proposed authority,  
                 which could take up to two years to enact, making it  
                 uncertain if the provision would ever be utilized. DPH  
                 suggests an amendment to permit implementation this  
                 provision administratively, by means of All County Letter  
                 . On page 7, line 23, insert:
                 
                 (d) Notwithstanding the rulemaking provisions of the  
                 Administrative Procedure Act (Chapter 3.5 (commencing  
                 with Section 11340) of Part 1 of Division 3 of Title 2 of  
                 the Government Code), the department may implement and  
                 administer this section through an all-county letter or  
                 similar instructions from the Director or State Registrar  
                 without taking regulatory action.

           SUPPORT AND OPPOSITION  :
          Support:  California State Association of Counties (cosponsor)
          County Recorders Association of California (cosponsor)
          California Association of Clerks and Election Officials
                    County Health Executives Association of California
                    County Recorders' Association of California
                    Health Officers Association of California
                    Orange County Board of Supervisors
                    Rural County Representatives of California








          AB 1546 (Olsen)                                    Page 7 of ?
          
          
          Oppose:   California Department of Public Health (unless  
                    amended)
          
          
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