BILL NUMBER: AB 1168 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 10, 2007
PASSED THE ASSEMBLY SEPTEMBER 12, 2007
AMENDED IN SENATE SEPTEMBER 5, 2007
AMENDED IN SENATE AUGUST 31, 2007
AMENDED IN SENATE AUGUST 1, 2007
AMENDED IN SENATE JULY 17, 2007
AMENDED IN SENATE JULY 2, 2007
AMENDED IN ASSEMBLY JUNE 1, 2007
AMENDED IN ASSEMBLY APRIL 16, 2007
AMENDED IN ASSEMBLY MARCH 29, 2007
INTRODUCED BY Assembly Member Jones
(Coauthors: Assembly Members DeVore, Huffman, Karnette,
Portantino, and Salas)
(Coauthor: Senator Romero)
FEBRUARY 23, 2007
An act to add Sections 1798.88 and 1798.89 to the Civil Code, to
add Section 9526.5 to the Commercial Code, to add Section 66018.55 to
the Education Code, and to amend Section 27361 of, to add Sections
6254.27, 6254.28, 6254.29, and 15705 to, and to add Article 3.5
(commencing with Section 27300) to Chapter 6 of Part 3 of Division 2
of Title 3 of, the Government Code, relating to social security
numbers.
LEGISLATIVE COUNSEL'S DIGEST
AB 1168, Jones. Social security numbers.
(1) Existing law establishes the University of California, under
the administration of the Regents of the University of California,
the California State University, under the administration of the
Trustees of the California State University, and the California
Community Colleges, under the administration of the Board of
Governors of the California Community Colleges, and private,
independent institutions of higher education as the 4 segments of
postsecondary education in this state.
This bill would require the Office of Privacy Protection in the
Department of Consumer Affairs to establish a task force, with
specified members, to conduct a review of the use by all public and
private colleges and universities in this state of social security
numbers in order to recommend practices to minimize the collection,
use, storage, and retention of social security numbers. It would
require the task force to commence meetings no later than May 1,
2008, and, on or before July 1, 2010, to submit a report of its
findings and recommendations to the Office of Privacy Protection and
to the Assembly Committee on Judiciary and the Senate Committee on
Judiciary.
(2) Existing law prohibits any person or entity from publicly
posting or displaying in any manner an individual's social security
number, printing an individual's social security number on any card
required to access products or services, requiring an individual to
transmit his or her social security number over the Internet,
requiring an individual to use his or her social security number to
access an Internet Web site, or printing an individual's social
security number on any materials that are mailed to the individual,
with specified exceptions. Existing law provides that these
prohibitions do not apply to documents that are recorded or required
to be open to the public pursuant to the California Public Records
Act.
The California Public Records Act requires state and local
agencies to make their records available for public inspection unless
a record is exempt from disclosure. The act exempts from disclosure,
among others, any record that is a personnel, medical, or similar
file the disclosure of which would constitute an unwarranted invasion
of personal privacy.
This bill would declare the intent of the Legislature that, in
order to protect against the risk of identity theft, local agencies
shall redact social security numbers from records before disclosing
them to the public pursuant to this chapter. This bill also would
provide that, unless required to do so by state or federal law, no
person, entity, or government agency shall present for recording or
filing with a county recorder if it displays more than the last 4
digits of a social security number, as specified.
(3) Existing law establishes in state government the Franchise Tax
Board to, among other duties, administer the Personal Income Tax Law
and the Corporation Tax Law.
This bill would provide that, notwithstanding any other provision
of law, unless prohibited by federal law, the board shall truncate
social security numbers on lien abstracts and any other records
created by the board that are disclosable under the California Public
Records Act before disclosing the record to the public.
(4) Existing law specifies requirements for the filing of various
documents with the Secretary of State and other filing offices.
This bill would apply requirements to redact social security
numbers on specified filings. It would require that for every filing
containing an untruncated social security number filed before August
1, 2007, or after that date if filed by means other than the filing
office's Web site, a filing office shall create a public filing,
defined to mean an exact copy of the official filing except that the
first 5 digits of any social security number are redacted. It would
require each filing office to post a notice on its Web site informing
filers not to include social security numbers in any portion of
their filings. It would require that, when a public filing version of
an official filing exists, and upon a request for inspection,
copying, or any other public disclosure of an official filing that is
not exempt from disclosure, a filing office shall make available
only the public filing version of that filing. It would specify that
these provisions shall not apply to a county recorder. It also would
require the Secretary of State to produce and make available
financing statements that do not provide a space for the disclosure
of a social security number of an individual.
(5) Existing law requires the recorder of each county, upon
payment of proper fees and taxes, to accept for recordation any
instrument, paper, or notice that is authorized or required by law to
be recorded, as specified, and specifies that these recorded
documents shall be called "official records."
This bill would require the recorder of each county to establish a
social security number truncation program in order to create a
"public record" version of each "official record" so that the "public
record" is in an electronic format and is an exact copy of the
"official record" except that any social security number contained in
the "official record" shall be truncated by redacting the first 5
digits of that number. These provisions would apply to any document
recorded since January 1, 1980, as specified. It would provide that
when a "public record" version of an "official record" exists, and
upon request of any person to inspect, for a copy of, or to otherwise
publicly disclose that record, the recorder shall make available
only the "public record" version of that record, and publicly
disclose the "official record" only in response to a subpoena or
court order. By creating new duties for county recorders, this bill
would impose a state-mandated local program.
Existing law establishes a fee for recording documents with the
county recorder at $4 for the first page and $3 for each additional
page and authorizes a county recorder to assess additional specified
fees.
This bill would authorize a county recorder, upon authorization of
the board of supervisors, to charge an additional fee of $1 for
recording the first page of each document, until December 31, 2017,
to be used only by the county recorder collecting the fee to
implement a social security number truncation program pursuant to
these provisions. It would provide that a board shall not authorize
this fee unless the board requires the county auditor to audit the
county's use of funds generated by this fee, as specified, and would
authorize the county recorder to request an extension of the
authorization to charge this fee beyond December 31, 2017. It would
require each county recorder, no later than June 1, 2008, to petition
the board of supervisors for the authority to levy the fee.
The bill also would provide that, notwithstanding these
provisions, a county recorder shall be required to create a public
record version of an official record only for that fraction of the
official records for which the fee is sufficient to create a public
record version.
The bill also would require that the County Recorders Association
of California, no later than January 1, 2009, and annually
thereafter, submit to the Assembly Committee on Judiciary, Senate
Committee on Judiciary, and the Office of Privacy Protection a report
on the progress each county recorder has made in complying with
these provisions. It would require the Office of Privacy Protection,
on or before January 1, 2018, to report to these committees on
whether counties need to continue to levy the fee authorized by these
provisions.
(6) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
(7) This bill would make legislative findings that any limitation
on the public's right of access to the writings of public officials
and agencies made by its provisions is necessary to protect against
the risk of identity theft.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1798.89 is added to the Civil Code, to read:
1798.89. Unless otherwise required to do so by state or federal
law, no person, entity, or government agency shall present for
recording or filing with a county recorder a document that is
required by any provision of law to be open to the public if that
record displays more than the last four digits of a social security
number.
SEC. 2. Section 9526.5 is added to the Commercial Code, to read:
9526.5. (a) For purposes of this section, the following terms
have the following meanings:
(1) "Official filing" means the permanent archival filing of all
instruments, papers, records, and attachments as accepted for filing
by a filing office.
(2) "Public filing" means a filing that is an exact copy of an
official filing except that any social security number contained in
the copied filing is truncated. The public filing shall have the same
legal force and effect as the official filing.
(3) "Truncate" means to redact at least the first five digits of a
social security number.
(4) "Truncated social security number" means a social security
number that displays no more than the last four digits of the number.
(b) For every filing containing an untruncated social security
number filed before August 1, 2007, a filing office shall create a
public filing.
(c) A filing office shall post a notice on its Web site informing
filers not to include social security numbers in any portion of their
filings. A filing office's online filing system shall not contain a
field requesting a social security number.
(d) Beginning August 1, 2007, for every filing containing an
untruncated social security number filed by means other than the
filing office's Web site, a filing office shall create a public
filing.
(e) When a public filing version of an official filing exists,
both of the following shall apply:
(1) Upon a request for inspection, copying, or any other public
disclosure of an official filing that is not exempt from disclosure,
a filing office shall make available only the public filing version
of that filing.
(2) A filing office shall publicly disclose an official filing
only in response to a subpoena or order of a court of competent
jurisdiction.
(3) Nothing in this article shall be construed to restrict, delay,
or modify access to any official filing, or modify any existing
agreements regarding access to any official filing, prior to the
creation and availability of a public filing version of that official
filing.
(f) A filing office shall be deemed to be in compliance with the
requirements of this section and shall not be liable for failure to
truncate a social security number if he or she uses due diligence to
locate social security numbers in official records and truncate the
social security numbers in the public filing version of those
official filings. The use of an automated program with a high rate of
accuracy shall be deemed to be due diligence.
(g) In the event that a filing office fails to truncate a social
security number contained in a record pursuant to subdivision (b) or
(d), any person may request that the filing office truncate the
social security number contained in that record. Notwithstanding that
a filing office may be deemed to be in compliance with this section
pursuant to subdivision (f), a filing office that receives a request
that identifies the exact location of an untruncated social security
number that is required to be truncated pursuant to subdivision (b)
or (d) within a specifically identified record, shall truncate that
number within 10 business days of receiving the request. The public
filing with the truncated social security number shall replace the
record with the untruncated number.
(h) The Secretary of State shall not produce or make available
financing statements in the form and format described in Section 9521
that provide a space identified for the disclosure of the social
security number of an individual.
(i) The Secretary of State shall produce and make available
financing statements in the form and format described in Section
9521, except that the financing statements shall not provide a space
identified for the disclosure of the social security number of an
individual.
(j) The provisions of this section shall not apply to a county
recorder.
SEC. 3. Section 66018.55 is added to the Education Code, to read:
66018.55. (a) As used in this section "college and university"
shall include all institutions of public higher education and all
independent institutions of higher education.
(b) The Office of Privacy Protection in the Department of Consumer
Affairs shall establish a task force to conduct a review of the use
by all colleges and universities of social security numbers in order
to recommend practices to minimize the collection, use, storage, and
retention of social security numbers in relation to academic and
operational needs and applicable legal requirements.
(c) The task force shall be known as the "College and University
Social Security Number Task Force." The Office of Privacy Protection
shall determine the composition of the task force, which shall
include, but not be limited to, all of the following:
(1) Two representatives from each of the three institutions of
public higher education.
(2) Two representatives of the California Association of
Independent Colleges and Universities.
(3) Two representatives each from two organizations devoted to the
protection of personal privacy.
(4) One representative from a national organization devoted to the
management of informational technology in higher education.
(5) One representative from the business community with expertise
in technological solutions to privacy concerns.
(6) One representative each from the Assembly Committee on
Judiciary and the Senate Committee on Judiciary.
(d) The task force shall seek input, as deemed necessary and
appropriate, from all of the following:
(1) Representatives of organizations with expertise in technical
policy and practices of Internet disclosure, private policy relevant
to Internet disclosure, and fostering public integrity and
accountability.
(2) The constituencies of the college and university communities,
including students, staff, and faculty.
(e) The task force shall review and make recommendations to
minimize the collection, use, storage, and retention of social
security numbers by California colleges and universities and shall
include, but not be limited to, all of the following:
(1) A survey of best practices at colleges and universities and
the costs of implementing those best practices.
(2) The necessary use and protection of social security numbers
for all of the following:
(A) Research purposes.
(B) Academic purposes, including, but not limited to, academic
research, admission, financial aid, and other related operational
uses.
(C) Operational uses by academic medical centers, including, but
not limited to, patient identification, tracking, and care.
(D) Business purposes, including, but not limited to, the
provision of employee benefits, tax purposes, loan programs, and
other requirements imposed by current state and federal statutes and
regulations.
(E) Any other operational need of the college or university.
(3) Current personal privacy protections provided to students,
applicants, staff, and faculty of colleges and universities.
(4) Existing state and federal legal requirements, including
regulatory requirements, mandating the use of social security numbers
at colleges and universities.
(5) The possible use of personal identifiers or other substitutes
for social security numbers that protect personal information and
meet the operational needs of colleges and universities.
(6) The cost of funding any recommendations presented by the task
force, including those that are of minimal cost and can be
implemented immediately and those that require additional funding or
time to implement.
(f) The task force shall commence meetings no later than May 1,
2008.
(g) (1) On or before July 1, 2010, the task force shall submit a
final report of its findings and recommendations to the Office of
Privacy Protection, and to the Assembly Committee on Judiciary and
the Senate Committee on Judiciary.
(2) The final report shall also include a list of the existing
uses of social security numbers common among colleges and
universities for routine operations and compliance with state and
federal laws.
(3) The findings and recommendations of the task force shall be
informational only and shall not be binding on any college or
university.
SEC. 4. Section 6254.27 is added to the Government Code, to read:
6254.27. Nothing in this chapter shall be construed to require
the disclosure by a county recorder of any "official record" if a
"public record" version of that record is available pursuant to
Article 3.5 (commencing with Section 27300) of Chapter 6 of Part 3 of
Division 2 of Title 3.
SEC. 5. Section 6254.28 is added to the Government Code, to read:
6254.28. Nothing in this chapter shall be construed to require
the disclosure by a filing office of any "official record" if a
"public record" version of that record is available pursuant to
Section 9526.5 of the Commercial Code.
SEC. 6. Section 6254.29 is added to the Government Code, to read:
6254.29. (a) It is the intent of the Legislature that, in order
to protect against the risk of identity theft, local agencies shall
redact social security numbers from records before disclosing them to
the public pursuant to this chapter.
(b) Nothing in this chapter shall be construed to require a local
agency to disclose a social security number.
(c) This section shall not apply to records maintained by a county
recorder.
SEC. 7. Section 15705 is added to the Government Code, to read:
15705. Notwithstanding any other provision of law, unless
prohibited by federal law, the Franchise Tax Board shall truncate
social security numbers on lien abstracts and any other records
created by the board that are disclosable under Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 before
disclosing the record to the public. For purposes of this section,
"truncate" means to redact the first five digits of a social security
number.
SEC. 8. Article 3.5 (commencing with Section 27300) is added to
Chapter 6 of Part 3 of Division 2 of Title 3 of the Government Code,
to read:
Article 3.5. Social Security Number Truncation Program
27300. As used in this article, the following terms have the
following meanings:
(a) "Official record" means the permanent archival record of all
instruments, papers, and notices as accepted for recording by a
county recorder.
(b) "Public record" means a record that is in an electronic format
and is an exact copy of an official record except that any social
security number contained in the copied record is truncated. The
public record shall have the same legal force and effect as the
official record.
(c) "Truncate" means to redact the first five digits of a social
security number.
(d) "Truncated social security number" means a social security
number that displays only the last four digits of the number.
27301. The county recorder of each county shall establish a
social security number truncation program in order to create a public
record version of each official record. The program shall include
both of the following components, which the recorder shall implement
concurrently:
(a) For each official record recorded between January 1, 1980, and
December 31, 2008, the recorder shall create in an electronic format
an exact copy of the record except that any social security number
contained in the copied record shall be truncated. In order to create
a public record copy, the recorder shall first truncate the social
security numbers in all records that already exist in an electronic
format and then create an electronic version of all other records and
truncate social security numbers contained in those records. Each
group of records shall be handled in descending chronological order.
(b) For each official record recorded on or after January 1, 2009,
the recorder shall create a copy of that record in an electronic
format and truncate any social security number contained in that
record.
(c) Nothing in this article shall be construed to restrict, delay,
or modify access to any official record, or modify any existing
agreements regarding access to any official record, prior to the
creation and availability of a public record version of that official
record. A county recorder shall not charge any new fee or increase
any existing fees in order to fund the social security number
truncation program pursuant to this article, except as provided in
subdivision (d) of Section 27361.
(d) Notwithstanding subdivisions (a) and (b), a county recorder
shall not be required to create a public record version of an
official record if the fee authorized in Section 27304 is determined
by the recorder to be insufficient to meet the cost of creating the
public record version. In that case, the county recorder shall
determine whether the fee is sufficient to meet the cost of creating
a public record version of only a fraction of the official records
described in subdivisions (a) and (b). If the fee is sufficient to
meet the cost of creating a public record version of a fraction of
the official records, the recorder shall be required to create a
public record version of that fraction only.
27302. (a) A county recorder shall be deemed to be in compliance
with the requirements of Section 27301 and shall not be liable for
failure to truncate a social security number if he or she uses due
diligence to locate social security numbers in official records and
truncate social security numbers in the public record version of
those official records. The use of an automated program with a high
rate of accuracy shall be deemed to be due diligence.
(b) In the event that a county recorder fails to truncate a social
security number contained in a public record, any person may request
that the county recorder truncate the social security number
contained in that record. Notwithstanding that a county recorder may
be deemed to be in compliance with Section 27301 pursuant to
subdivision (a), a county recorder that receives a request that
identifies the exact location of an untruncated social security
number within a specifically identified public record, shall truncate
that number within 10 business days of receiving the request. The
public record with the truncated social security number shall replace
the record with the untruncated number.
27303. When a public record version of an official record exists,
both of the following shall apply:
(a) Upon a request for inspection, copying, or any other public
disclosure of an official record that is not exempt from disclosure,
a county recorder shall make available only the public record version
of that record.
(b) A county recorder shall publicly disclose an official record
only in response to a subpoena or order of a court of competent
jurisdiction.
27304. (a) Each county may use funds generated by fees authorized
by subdivision (d) of Section 27361 to implement a social security
number truncation program required by this article.
(b) No later than June 1, 2008, the county recorder of each county
shall petition the board of supervisors in that county for the
authority to levy the fee authorized by subdivision (d) of Section
27361.
(c) It is the intent of the Legislature that in the interest of
enabling county recorders to act expeditiously to protect the privacy
of Californians, counties be permitted to seek revenue anticipation
loans or other outside funding sources for the implementation of a
social security number truncation program to be secured by the
anticipated revenue from the fee authorized by subdivision (d) of
Section 27361.
27305. (a) To assist the Legislature in monitoring the progress
of each county recorder's social security number truncation program,
the County Recorders Association of California, no later than January
1, 2009, and annually thereafter, shall submit to the chairpersons
of the Assembly Committee on Judiciary and of the Senate Committee on
Judiciary, and to the Office of Privacy Protection, or any successor
agency, a report on the progress each county recorder has made in
complying with this article.
(b) Upon the Office of Privacy Protection making a determination
that all counties have completed the component of the program
described in subdivision (a) of Section 27301, the report described
in subdivision (a) of this section shall no longer be required.
27307. A county recorder is authorized to take all actions
required by this article notwithstanding subdivision (d) of Section
27203 or any other provision of law.
SEC. 9. Section 27361 of the Government Code is amended to read:
27361. (a) The fee for recording and indexing every instrument,
paper, or notice required or permitted by law to be recorded is four
dollars ($4) for recording the first page and three dollars ($3) for
each additional page, except the recorder may charge additional fees
as follows:
(1) If the printing on printed forms is spaced more than nine
lines per vertical inch or more than 22 characters and spaces per
inch measured horizontally for not less than three inches in one
sentence, the recorder shall charge one dollar ($1) extra for each
page or sheet on which printing appears excepting, however, the extra
charge shall not apply to printed words which are directive or
explanatory in nature for completion of the form or on vital
statistics forms. Fees collected under this paragraph are not subject
to subdivision (b) or (c).
(2) If a page or sheet does not conform with the dimensions
described in subdivision (a) of Section 27361.5, the recorder shall
charge three dollars ($3) extra per page or sheet of the document.
The extra charge authorized under this paragraph shall be available
solely to support, maintain, improve, and provide for the full
operation for modernized creation, retention, and retrieval of
information in each county's system of recorded documents. Fees
collected under this paragraph are not subject to subdivision (b) or
(c).
(b) One dollar ($1) of each three dollar ($3) fee for each
additional page shall be deposited in the county general fund.
(c) Notwithstanding Section 68085, one dollar ($1) for recording
the first page and one dollar ($1) for each additional page shall be
available solely to support, maintain, improve, and provide for the
full operation for modernized creation, retention, and retrieval of
information in each county's system of recorded documents.
(d) (1) In addition to all other fees authorized by this section,
a county recorder may charge a fee of one dollar ($1) for recording
the first page of every instrument, paper, or notice required or
permitted by law to be recorded, as authorized by each county's board
of supervisors. The funds generated by this fee shall be used only
by the county recorder collecting the fee for the purpose of
implementing a social security number truncation program pursuant to
Article 3.5 (commencing with Section 27300).
(2) A county recorder shall not charge the fee described in
paragraph (1) after December 31, 2017, unless the county recorder has
received reauthorization by the county's board of supervisors. A
county recorder shall not seek reauthorization of the fee by the
board before June 1, 2017, or after December 31, 2017. In determining
the additional period of authorization, the board shall consider the
review described in paragraph (4) of this subdivision.
(3) Notwithstanding paragraph (2), a county recorder who, pursuant
to subdivision (c) of Section 27304, secures a revenue anticipation
loan, or other outside source of funding, for the implementation of a
social security truncation program, may be authorized to charge the
fee described in paragraph (1) for a period not to exceed the term of
repayment of the loan or other outside source of funding.
(4) A county board of supervisors that authorizes the fee
described in this subdivision shall require the county auditor to
conduct two reviews to verify that the funds generated by this fee
are used only for the purpose of the program, as described in Article
3.5 (commencing with Section 27300) and for conducting these
reviews. The reviews shall state the progress of the county recorder
in truncating recorded documents pursuant to subdivision (a) of
Section 27301, and shall estimate any ongoing costs to the county
recorder of complying with subdivisions (a) and (b) of Section 27301.
The board shall require that the first review be completed not
before June 1, 2012, or after December 31, 2013, and that the second
review be completed not before June 1, 2017, or after December 31,
2017. The reviews shall adhere to generally accepted accounting
standards, and the review results shall be made available to the
public.
SEC. 10. The Legislature finds and declares that Sections 2, 4, 5,
and 8 of this act impose a limitation on the public's right of
access to the meetings of public bodies or the writings of public
officials and agencies within the meaning of Section 3 of Article I
of the California Constitution. Pursuant to that constitutional
provision, the Legislature makes the following findings to
demonstrate the interest protected by this limitation and the need
for protecting that interest:
In order to protect against the risk of identity theft when
government documents maintained by county recorders contain social
security numbers, it is necessary to enact legislation that ensures
the confidentiality of social security numbers.
SEC. 11. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.