BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2636| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2636 Author: Linder (R) and Dababneh (D), et al. Amended: 8/16/16 in Senate Vote: 21 SENATE JUDICIARY COMMITTEE: 7-0, 6/28/16 AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning, Wieckowski SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16 AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen ASSEMBLY FLOOR: 80-0, 5/31/16 - See last page for vote SUBJECT: Certified copies of marriage, birth, and death certificates: electronic application SOURCE: California State Association of Counties Urban Counties of California DIGEST: This bill authorizes, until January 1, 2021, if a request for a certified copy of a birth, death, or marriage record is made electronically, a state or local official to accept electronic acknowledgement verifying the identity of the applicant using a multilayered remote identity proofing process, as specified. This bill requires state and local agencies fulfilling electronic requests for certified copies of records to report specified information to the Attorney General and the Legislature by January 1, 2019. ANALYSIS: AB 2636 Page 2 Existing law: 1)Allows the State Registrar, local registrar, or county recorder to furnish a certified copy of birth, death, or marriage to applicants upon request if: The request is written, faxed, or a digitized image and accompanied by a notarized statement that is written, faxed, or a digitized image, sworn under penalty of perjury, that the requester is an authorized person, as defined; or The request is made in person, and the official takes a statement, sworn under penalty of perjury, that the requester is signing his or her own legal name and is an "authorized person." (Health & Saf. Code Sec. 103526.) 1)Defines "authorized person," for purposes of obtaining certified copies of birth, death, or marriage records, as any of the following: The person who is the subject of the record or the parent or legal guardian of that person; A party who is entitled to receive the record as a result of a court order; Law enforcement or governmental agency personnel conducting official business; A child, grandchild, sibling, spouse, domestic partner, or grandparent of the person who is the subject of the record; An attorney or other person empowered to act on behalf of the person who is the subject of the record; or An agent or employee of a funeral establishment who orders death certificates when acting on behalf of specified individuals. (Health & Saf. Code Sec. 103526 (c).) 1)Provides that, in all other cases in which the requester does AB 2636 Page 3 not meet the requirements of an authorized person, a certified copy may be provided to the requester, but the document shall be an informational certified copy and shall be redacted to remove any signatures that appear on the document. Existing law requires the certified copy to contain the statement "INFORMATIONAL, NOT A VALID DOCUMENT TO ESTABLISH IDENTITY." (Health & Saf. Code Sec. 103526 (b).) This bill: 1)Authorizes, until 2021, the State Registrar, or a local registrar or county recorder to accept electronic acknowledgement, if the applicant's identity is verified using a multilayered remote identity proofing process that complies with the following requirements: Meets or exceeds the National Institute of Standards and Technology (NIST) electronic authentication guideline for multilayered remote identity proofing; Verifies a valid government-issued identification number, and a financial or utility account number; and Retains for each electronic verification, as required by the NIST electronic authentication guideline, a record of the applicant whose identity has been verified and the steps taken to verify the identity. 1)Requires that the verification must occur through record checks with the state or local agency or a credit reporting agency or similar database and shall confirm that the name, date of birth, address, or other personal information in the record checks are consistent with the information provided by the applicant. 2)Requires, on or before January 1, 2019, a city, county, or the Department of Public Health that fulfills electronic requests for certified copies of birth, death, or marriage records without being provided a notarized statement that the requester is an authorized person to report the following information to the Attorney General, the Assembly and Senate AB 2636 Page 4 Judiciary Committees, and the Assembly Committee on Privacy and Consumer Protection: The total number of written, electronic, faxed, or in-person requests that include a notarized statement that the requester is an authorized person. The total number of electronic requests utilizing the multilayered remote identity proofing process. The total number of electronic requests denied while using the multilayered remote identity proofing process due to insufficient information or failed authentication. The total number of repeat electronic requests using the multilayered remote identity proofing process for the same record and the same individual. A description of the mechanism and process, if any, by which consumers who have been victims of identity theft may temporarily limit electronic access to certified vital records, including all of the following: o The number of consumers who have utilized this mechanism and process. o The total number of electronic requests that utilize the multilayered remote identity proofing process, without a notarized statement, requesting records of consumers who have used the temporary limited access mechanism and process. o The total number of electronic requests for records of consumers who have utilized this temporary limited access mechanism and process that were denied while using the multilayered remote identity proofing process. A description of the mechanism and process by which a consumer may report identity theft resulting from an alleged fraudulent records request, as well as the number of consumers who have used this mechanism and process. Background The Office of Vital Records is charged with the responsibility of 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 AB 2636 Page 5 California. Certified copies of these records are available from the State Registrar, the 58 county recorders, and 61 local health jurisdictions. In November 2001, it was reported that the state had sold the birth records of more than 24 million Californians which were then posted on the Internet. The Senate Insurance Committee held an informational hearing in response, "Personal Privacy at Risk," which demonstrated the ease with which identity thieves could obtain personal information about others. The informational hearing also revealed that the State Registrar routinely sold electronic compilations of public record information to anyone who could pay for the records with no restrictions on their use. The records sold covered births from 1905 to 1995, and included the county of birth, the person's full name, date of birth, and the person's mother's maiden name. A mother's maiden name and date of birth are common personal identifiers used by financial institutions to determine if a person may have access to an individual account. In order to prevent fraud and identity theft, the Legislature has since enacted a number of protective measures with regard to vital records, including AB 247 (Speier, Chapter 914, Statutes of 2002) and AB 1614 (Speier, Chapter 712, Statutes of 2002) which established controls for the release of, and access to, birth and death records. AB 130 (Jeffries, Chapter 412, Statutes of 2009) extended the existing limitations on release and access of birth and death records to marriage records in order to prevent the unauthorized use of personal information. Recently, AB 464 (Daly, Chapter 78, Statutes of 2013) updated the law regarding vital records to allow digitized images to be used, in addition to written or faxed documents, as part of a request for a certified copy of a vital record. Existing law requires that these requests be accompanied by a notarized statement, sworn under penalty of perjury, that the requester is an authorized person. Instead of requiring a notarized statement, which may also be scanned and mailed electronically, this bill, which is substantially similar to AB 2275 (Ridley-Thomas, 2014), allows a registrar or county recorder to accept electronic acknowledgment that the requester of a record is an authorized person. AB 2636 Page 6 FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes According to the Senate Appropriations Committee: Department of Public Health (DPH): Potential staffing costs of about $275,000 (General Fund or Special Fund*) through 2020 to support two positions should the DPH opt to establish a secure online verification process. The estimated costs would support two positions to manage a vendor contract for payment processing and reconciling, as well as modifications to the current customer request tracking system. The cost to contract with a private vendor to provide the electronic authentication system and the public interface for accepting electronic applications is undetermined at this time. County registrar/recorder: Potentially significant one-time and ongoing non-reimbursable local costs (Local Funds) for local agencies to establish and operate a secure online verification process. Vital records fee revenue: Potential shift of fee revenues collected by the state and local agencies should the DPH opt to establish an electronic verification system. Data through FY 2013-14 indicates that counties have historically processed more than 90 percent of certified copy requests for vital records each year. The adoption of an online verification system by the DPH could increase state fee revenues, and reduce the volume and demand for services in the counties, resulting in reduced local fee revenues and unknown impacts on local operations. AB 2636 Page 7 Attorney General: Potential minor one-time costs (General Fund) to accept the information reported by local agencies on the electronic verification process. *Health Statistics Special Fund SUPPORT: (Verified8/15/16) California State Association of Counties (co-source) Urban Counties of California (co-source) California Association of Clerks and Election Officials California Association of County Veteran Service Officers Computing Technology Industry Association County Health Executives Association of California Little Hoover Commission Los Angeles County Board of Supervisors Riverside County Board of Supervisors Rural County Representatives of California San Bernardino County Tarrant County Clerk's Office TechNet OPPOSITION: (Verified8/15/16) American Civil Liberties Union of California Privacy Rights Clearinghouse ARGUMENTS IN SUPPORT: The California State Association of Counties, sponsor, writes: AB 2636 Page 8 California and Minnesota are the only two states in the nation which currently require a notarized statement in conjunction with the online request. The option of being able to fully submit an electronic request will significantly reduce processing time for customers. This process will also reduce the overall cost for obtaining copies of vital records. For example, the current fee for a certified copy of a birth certificate in Los Angeles County ranges from $23 to $28. The average notary fee for an affidavit is as much as $20. The total fee for someone requesting this record under the current system of a partial online request could be as much as $50. Contra Costa County processed 5,628 electronic orders last year - the staff time involved in document matching would have saved the county 1,426 staff hours or approximately 35 weeks of work. ARGUMENTS IN OPPOSITION: In opposition to this bill, the Privacy Rights Clearinghouse (PRC) argues that notarized statements of identity were created as a security precaution to protect against fraud and identity theft and continue to be necessary. PRC writes: The substitution of an electronic acknowledgement for a notarized affidavit will facilitate the ability of identity thieves and other fraudsters to obtain vital records that can then be used to engage in criminal acts against Californians. Certified copies of birth certificates can be used to fraudulently obtain many other important documents such as passports, driver's licenses, and identification cards. Certified copies of death certificates can be used to fraudulently obtain decedents' death benefits, including life insurance proceeds and investment accounts. Vital records contain a wealth of personal information, which if inappropriately released to the wrong person can result in a significant violation of privacy. Privacy is protected by California's Constitution, and should not be set aside merely to facilitate the issuance of vital records. AB 2636 Page 9 ASSEMBLY FLOOR: 80-0, 5/31/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon Prepared by:Nichole Rapier / JUD. / (916) 651-4113 8/16/16 17:33:37 **** END ****