BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 447|
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UNFINISHED BUSINESS
Bill No: SB 447
Author: DeSaulnier (D)
Amended: 8/24/12
Vote: 21
ALL PRIOR VOTES NOT RELEVANT
ASSEMBLY FLOOR : Not available
SUBJECT : State agencies: social security numbers
SOURCE : Author
DIGEST : This bill 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.
Assembly Amendments delete the Senate version of the bill
relating to housing and replaces it with the above
language.
ANALYSIS : 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
CONTINUED
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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.
Comments
In September 2005, the United States 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 one 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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
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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 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.
DLW:n 8/28/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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