BILL ANALYSIS                                                                                                                                                                                                    






                           SENATE JUDICIARY COMMITTEE
                        Senator Ellen M. Corbett, Chair
                           2009-2010 Regular Session


          SB 40                                                  S
          Senator Correa                                         B
          As Amended March 9, 2009
          Hearing Date: March 24, 2009                           4
          Civil Code; Family Code; Health & Safety Code          0
          KB                                                     
                                                                 

                                     SUBJECT
                                         
                 Personal information:  social security numbers

                                   DESCRIPTION
           
          This bill would impose a number of restrictions on the use  
          of social security numbers in public records.   
          Specifically, this bill would:

                 provide that a document containing more than the  
               last 4 digits of social security number is not  
               entitled for recording;
                 provide also that a recorder shall be deemed to be  
               in compliance if he or she uses due diligence to  
               locate social security numbers in documents presented  
               for recording;
                 require an abstract of judgment to contain only the  
               last 4 digits of the social security number of the  
               party who is ordered to pay spousal, child, or family  
               support;
                 require that only the last 4 digits of a person's  
               social security number be displayed on birth and death  
               records.

                                    BACKGROUND  

          A social security number (SSN) is a 9-digit number issued  
          to citizens, permanent residents, and temporary (working)  
          residents under section 205(c)(2) of the Social Security  
          Act, codified as 42 U.S.C.  405(c)(2).  The number is  
          issued to an individual by the Social Security  
                                                                 
          (more)



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          Administration (SSA), an agency of the federal government.   
          Although the primary purpose of the SSN is to track  
          individuals for taxation and distribution of retirement  
          benefits, in recent years the SSN has effectively gained  
          use as a national identification number.  The overall  
          growth in the use of SSNs is important to individual SSN  
          holders because this number is one of the personal  
          identifiers most sought after by identity thieves.  

          Social security numbers are often used to verify identity,  
          and, in the wrong hands, can be used by an identity thief  
          to fraudulently open credit card or utility accounts,  
          access financial accounts, or obtain loans, among other  
          things.  In addition to a name and date of birth, a social  
          security number is one of the three pieces of information  
          most sought by identity thieves, making its easy  
          availability, particularly in public records, of special  
          concern.  

          In response to the growing threat of identity theft the  
          Legislature has enacted several measures which impose  
          restrictions on the use of social security numbers in  
          public records.  (  See  AB 1168 (Jones) Chapter 627, Statutes  
          of 2007); SB 644 (Correa) Chapter 189, Statutes of 2007.)   
          This bill further seeks to reduce the use of social  
          security numbers in public records.

                             CHANGES TO EXISTING LAW
           
          1.  Existing law  requires 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."  The "public record" is an exact copy  
            of the "official record" except that any social security  
            number contained in the "official record" is truncated by  
            redacting the first 5 digits of that number.  (Government  
            Code Section 27300 et seq.)
           
            Existing law  requires 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.  The  
            "official record" may only be disclosed in response to a  
            subpoena or court order.  (Government Code Section  
                                                                       




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            27303.)
             
            Existing law  requires any person, entity, or government  
            agency that is presenting a document for recording or  
            filing with a county recorder to only list the last 4  
            digits of a social security number.  (Civil Code Section  
            1798.89.)   

             This bill  would instead require the county recorder to  
            reject any document that contains more than the last 4  
            digits of a social security number.

          2.  Existing federal law  requires that the social security  
            number of any individual who is subject to a divorce  
            decree, support order, or paternity determination or  
            acknowledgement be placed in the records relating to the  
            matter.  (42 U.S.C Section 666(a)(13)(B).)
           
            Existing law  requires an abstract of judgment ordering a  
            party to pay spousal, child, or family support to contain  
            the social security number of the party who is ordered to  
            pay.  (Family Code Section 4506.)

             This bill  would instead require an abstract of judgment  
            to contain only the last 4 digits of the social security  
            number of the party who is ordered to pay.  

           3.Existing law  requires the State Registrar of Vital  
            Statistics to administer the registration of births and  
            deaths.  (Health & Safety Code Section 102200.)

             Existing law  requires the State Registrar to arrange and  
            permanently preserve the certificates in a systematic  
            manner and to prepare and maintain a comprehensive and  
            continuous index of all certificates registered.  (Health  
            & Safety Code Section 102230.)
             
            Existing law  requires the comprehensive birth and death  
            record indices prepared and maintained by the State  
            Registrar and by local registrars and county recorders to  
            be kept confidential.  (Health & Safety Code Section  
            102230.)
             
            Existing law  requires that certain birth and death  
            records include specified information, including certain  
                                                                       




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            social security numbers.  (Health & Safety Code Sections  
            102230, 102360, 102425.)  

             Existing law  requires the local registrar of births and  
            deaths to furnish to the registrar of voters or county  
            clerk a notification of all deceased persons 18 years of  
            age and over whose deaths were registered during the  
            preceding month.  The notification is required to include  
            the decedent's full social security number.  (Health &  
            Safety Code Section 102360.)

             This bill  would instead require only the last 4 digits of  
            a person's social security number to be displayed on  
            birth and death certificates and records.  
          
                                     COMMENT
           
              1.   Stated need for the bill
           
          The sponsor of the bill, the Orange County Board of  
          Supervisors, states:

          This bill supports the state's ongoing efforts to combat  
          identity theft and provides a cost-savings to counties.  As  
          of January 1, 2009, California counties are required to  
          create "public copies" of any document that contains an  
          SSN.  The "public copy" must redact the first five digits  
          of the SSN, and only that copy can be provided for public  
          viewing or copying.  This bill will reduce the number of  
          "public copies" needed in the future and reduce costs to  
          the County.



           2.This bill would clarify that documents presented for  
            recording may not contain full social security numbers  
            unless otherwise required by law

           Under current law, no person, entity, or government agency  
          may present for recording or filing with a county recorder  
          a document that is required by any provision of the law to  
          be open to the public if that record displays more than the  
          last four digits of a social security number.  (Civil Code  
          Section 1798.89.)  Concerns have been expressed that the  
          current statute is unclear as to whether county recorders  
                                                                       




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          have the authority to reject documents which contain a full  
          social security number.  As a result, some county recorders  
          have been accepting documents with full SSNs per the advice  
          of their county counsels.  This bill seeks to clarify that  
          documents which contain a full social security number are  
          not entitled to recording, unless it is authorized by state  
          or federal law.  A recorder would be required to use due  
          diligence in locating social security numbers in the  
          documents presented for recording and have the authority to  
          reject them if they do not comport with the standards for  
          recording.  The due diligence requirement is consistent  
          with that imposed on county recorders in other provisions  
          of the Social Security Number Truncation Program.  (See  
          Government Code Section 27302.)
           
          3.Implications for compliance with federal child support  
            laws  

          Under current law, when individuals involved in family law  
          actions have judgments entered against them, the abstracts  
          of judgments issued by the court clerks contain the  
          individual's full social security number.  The abstracts of  
          judgments are subsequently filed with the county recorders,  
          where they become part of the public record.  This bill  
          woud remove the requirement that abstracts of judgments  
          ordering a party to pay spousal, child, or family support  
          contain the social security number of the party ordered to  
          pay support, and instead require only the last four digits  
          of that person's social security number.  

          In 2007, SB 644 (Correa, Chapter 189, Statutes of 2007)  
          deleted the requirement that abstracts of judgment  
          requiring the payment of money must contain the judgment  
          debtor's full social security number, and instead required  
          that only the last four digits of the debtor's social be  
          placed in the abstract.  As introduced, SB 644 would have  
          also revised the requirements for abstracts of judgments of  
          support orders in family law actions.  Those provisions of  
          the bill were removed after concerns were expressed that  
          they may have put the state out of compliance with federal  
          law, which mandates that the social security number of any  
          individual who is subject to a support order be placed in  
          the records relating to the matter.  (42 U.S.C.  
          666(a)(13)(B).)   

                                                                       




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          The Department of Child Support Services (DCSS) has since  
          obtained clarification from the Office of Child Support  
          Enforcement (OCSE), Department of Health and Human Services  
          as to whether an obligor's full social security number must  
          be displayed on a publicly recorded abstract of judgment.   
          According to the OCSE, there is no violation of federal law  
          if the full nine digit SSN is redacted so that only the  
          last four digits appear on any child support related  
          documents that could be accessed by the general public.    
          However, the full nine-digit SSN must remain in the records  
          relating to the matter that are not accessible by the  
          public.  Thus, although the abstract itself need not  
          contain the full nine-digit SSN of an obligor, the entire  
          SSN must remain part of the internal child support record.

          California's automated child support system is programmed  
          to recognize and utilize the abstract of support judgment  
          (FL-480) as it is currently written.  This bill would  
          revise the abstract of support judgment issued by courts in  
          family law actions.  According to DCSS, it is possible to  
          retain the obligor's full social security number in a  
          separate internal electronic record, and have the redacted  
          SSN on the abstracts of support judgment that are stored  
          within the automated system.  In this manner, DCSS can  
          comply with both federal law governing child support  
          enforcement, and the requirements of this bill. 
           
             4.   Implications for recordkeeping of vital statistics 
           
          In California, the Department of Public Health (CDPH),  
          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, marriage and  
          dissolution certificates registered for vital events which  
          occur in the state.  The State Registrar of Vital  
          Statistics is required by statute to provide full SSNs to  
          various governmental agencies including registrars of  
          voters, county clerks, county welfare departments, law  
          enforcement agencies, and the Social Security  
          Administration (SSA).  (Health & Safety Code Sections  
          102360, 102231, 102440.)  However, SSNs are currently not  
          contained in the public portion of birth certificates.   
          Social security numbers on certificates of live birth are  
          required to be kept confidential.  (Health and Safety Code  
                                                                       




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          Section 102425.)  The California Department of Public  
          Health's Vital Records Image Redaction and Statewide Access  
          system was specifically designed to redact the SSN from  
          birth and death records.  

          In addition to providing full SSNs to various state  
          governmental agencies, CDPH also transmits SSNs to the  
          Social Security Agency as part of both the birth and death  
          registration process.  Upon parental request, a newborn's  
          information (which includes parents' names and SSNs) is  
          transmitted to the SSA for issuance of an SSN to the  
          newborn.  According to CDPH, it receives approximately  
          $500,000 annually for providing this service.  Further,  
          decedents' SSNs are verified against the SSA database to  
          ensure that SSA is immediately notified of a person's  
          death, and that the SSN listed on the death certificate was  
          the correct one for the decedent.  According to CDPH, it  
          receives approximately $285,000 annually for providing  
          death vital records to SSA.  
          This bill would change current law to require that only the  
          last four digits of a person's social security number be  
          displayed on birth and death records.  As stated by the  
          author and sponsor, the goal is to reduce the amount of  
          information accessible by the public which may be used for  
          the purposes of identity theft.  However, the bill as it is  
          currently written may inadvertently create complications  
          for vital recordkeeping.  CDPH would have to modify the  
          state's vital record database and revise vital record  
          forms.  Further, CDPH would no longer be able to provide  
          services in the birth and death registration process with  
          SSA.  In considering proposals to reduce the collection of  
          SSNs in public records, it is important to balance the  
          legitimate need for data to confirm the identity of  
          individuals with the need for greater protection against  
          the growing threat of identity theft.  The potential  
          interference with vital recordkeeping seems to outweigh the  
          need for increased protection against identity theft in  
          this instance, especially considering that SSNs on birth  
          and death records currently do not appear on the  
          certificates available to the public.  Accordingly, this  
          committee may wish to consider whether provisions of this  
          bill requiring the truncation of SSNs on internal birth and  
          death records maintained by the CDPH should be removed.  

          The amendments would be as follows:
                                                                       




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          On page 3, strike lines 37-40 inclusive
          Strike pages 4-10

          5.   Concerns regarding recordation of older support  
          judgments  

          The Family Law Section of the State Bar (FLEXCOM) writes:


          "The proposed bill would make older judgments unrecordable  
          and provides no mechanism for obtaining a document that  
          would be recordable.



          Recordation of an abstract or entire judgment, unlike the  
          recording of a deed, is an enforcement tool, which would  
          likely be opposed by one of the original parties.  Both  
          parties have an interest in making sure that the  
          requirements for a deed are met, while one party would be  
          happy if an abstract were not ever recorded.  Older  
          documents are recordable only if they are certified copies  
          of the original.  There is no mechanism for correcting  
          these documents by deleting excess digits.  Correction and  
          reissuance are judicial, not ministerial acts, which would  
          require the delay and expense of a court hearing."



          FLEXCOM is proposing that the bill be amended to allow for  
          the redaction of extra digits by the Court Clerk when  
          supplying a certified copy, by the recorder when inspecting  
          any document presented for recording, or by the party  
          seeking recording upon certification that only excess  
          digits have been deleted.  Alternatively, FLEXCOM proposes  
          that the bill be amended to allow for the recording of  
          documents which predate the adoption of the bill.  
           
           6.   Technical amendments  

          The following are suggested technical amendments.

          On page 7, line 28, strike "state registrar of vital" and  
          insert "State Registrar of Vital"
                                                                       




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          On page 7, line 29, strike "statistics" and insert  
          "Statistics"

           Support  :  AFSCME, AFL-CIO; ACLU; Privacy Rights  
                    Clearinghouse; Family Law Section of the State  
                    Bar (if amended)

           Opposition  :None Known
                                     HISTORY
           
           Source  :Orange County Board of Supervisors

           Related Pending Legislation  :None Known

           
          Prior Legislation:  

          SB 644 (Correa, Chapter 189, Statutes of 2007) removed the  
          existing statutory requirements that abstracts of money  
          judgments and tax lien filings contain a full social  
          security number and instead required that only the last  
          four digits of the SSN be included in these documents. 

          AB 1168 (Jones, Chapter 627, Statutes of 2007) imposes a  
          number of restrictions on the use of Social Security  
          numbers in public records, requiring they be redacted or  
          truncated prior to filing or disclosure to the public by  
          specified dates. 

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