BILL ANALYSIS �
SB 447
Page 1
SENATE THIRD READING
SB 447 (DeSaulnier)
As Amended August 24, 2012
Majority vote
SENATE VOTE :35-0
BUSINESS & PROFESSIONS 9-0 APPROPRIATIONS 17-0
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|Ayes:|Hayashi, Bill Berryhill, |Ayes:|Gatto, Harkey, |
| |Allen, Butler, | |Blumenfield, Bradford, |
| |Eng, Hagman, Hill, Ma, | |Charles Calderon, Campos, |
| |Smyth | |Davis, Donnelly, Fuentes, |
| | | |Hall, Hill, Cedillo, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
| | | | |
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SUMMARY : Prohibits a state agency from sending any
communication to any individual that contains more than the last
four digits of the social security number (SSN) of that
individual, unless required by federal law, beginning January 1,
2015.
EXISTING LAW prohibits a person or entity from printing an
individual's SSN on any material mailed to individuals, unless
required by state or federal law. SSNs may be included in
applications and forms sent by mail, including documents sent as
part of an application or enrollment process, to establish,
amend, or terminate an account, contract, or policy, or to
confirm the accuracy of a SSN. A SSN that is permitted to be
mailed may not be printed, in whole or in part, on a postcard or
other mailer not requiring an envelope, or visible either on the
envelope or without opening the envelope. (Civil Code Section
1798.85)
FISCAL EFFECT : According to the Assembly Appropriations
Committee, the Employment Development Department is one of the
few major agencies that still use SSNs on its correspondence.
Costs associated with revising forms and reprogramming for the
Unemployment Insurance (UI) and Disability Insurance programs
alone would be in the range of $5 million �federal UI
Administrative Grant and General Fund (GF)]. It is unlikely
SB 447
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that the California's Federal UI Administrative Grant will be
able to cover the costs of the automation changes.
On-time costs for California State Universities of approximately
$3 million GF for the automation changes required by this
legislation.
COMMENTS : In September 2005, the United States (U.S.)
Government Accountability Office issued a report, Social
Security Numbers: Federal and State Laws Restrict Use of SSNs,
yet Gaps Remain, which found that "SSN use is widespread.
Agencies at all levels of government frequently collect and use
SSNs to administer their programs, verify applicants'
eligibility for services and benefits, and perform research and
evaluations of their programs. Although some government
agencies are taking steps to limit the use and display of SSNs,
these numbers are still available in a variety of public records
held by states, local jurisdictions, and courts?
"In 2001, California enacted a law to restrict the use and
display of SSNs. The law generally prohibits companies and
persons from engaging in certain activities? including printing
SSNs on anything mailed to a customer unless required by law or
(if) the document is a form or application."
According to California's Office of Privacy Protection, there
were more than 8.1 million identity theft victims in the U.S. in
2010, and more than 1 million of those victims were
Californians. According to the U.S. Federal Trade Commission,
in 2010, there were 38,148 identity theft complaints from
California victims. Of those victims, 6,142 reported that their
identity theft was related to government documents or benefits
fraud, ranking as the second-leading type of identity theft
behind credit card fraud.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301
FN: 0005518
SB 447
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