BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1075 (Committee on Rules) - Uniform Electronic Legal Material 
          Act.
          
          Amended: As Introduced          Policy Vote: Judiciary 5-0, 
          Rules 5-0
          Urgency: No                     Mandate: No
          Hearing Date: May 7, 2012       Consultant: Jolie Onodera
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: SB 1075 would enact the Uniform Electronic Legal 
          Material Act, which would provide for the authentication, 
          preservation, and security of electronic legal material, defined 
          as the California Constitution, California Codes and statutes, 
          by an official publisher. The bill would designate the 
          Legislative Counsel Bureau (LCB) as the official publisher for 
          purposes of the act and specifies the act would become operative 
          on July 1, 2015.

          Fiscal Impact: 
              One-time costs of $135,000 to $165,000 (General Fund) for 
              set up, authentication, archiving, and onsite storage.
              Annual ongoing costs in the range of $40,000 to $70,000 
              (General Fund) for dark storage, licensing renewals, and 
              auditing/sampling.
              Unknown, future cost pressure for updating processes and 
              hardware/software to adapt to future revisions in electronic 
              data authentication and preservation standards.

          Background: The LCB is required to provide public access to the 
          California Constitution, California Codes and statutes in 
          electronic form. Although this information is available at the 
          LCB-maintained website, currently there is no "official" online 
          version of the statutes or codes and no single state entity 
          serves as the digital clearinghouse for electronic records. The 
          Secretary of State is the custodian of all enacted Legislative 
          acts and resolutions, but does not maintain an official 
          electronic version of California's laws. 


          In 2011, the Uniform Law Commission drafted and approved the 








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          Uniform Electronic Legal Material Act (UELMA), and the National 
          Conference of Commissioners on Uniform State Laws recommended 
          that states adopt it. The UELMA addresses many of the concerns 
          posed by the publication of state primary legal material online. 
          The UELMA does not require specific technologies, leaving the 
          choice of technology for authentication and preservation up to 
          the states. The UELMA provides a technology-neutral, 
          outcomes-based approach to ensuring that online state legal 
          material deemed official will be preserved and will be 
          permanently available to the public in unaltered form. Colorado 
          became the first state to enact the UELMA on April 26, 2012. 
          Legislation to enact the UELMA has also been introduced this 
          year in Connecticut, Minnesota, Rhode Island, and Tennessee.

          Proposed Law: This bill would enact the UELMA, which would 
          designate the LCB as the official publisher responsible for the 
          authentication, preservation, and security of specified legal 
          materials in electronic records that are designated as official. 
          Legal materials would be defined as the California Constitution, 
          California Codes and statutes, whether or not in effect. 

          Under the UELMA, the LCB serving as the official publisher of 
          these records would be required to do the following for 
          designated official electronic records:

                 Authenticate the record - provide a method for a user to 
               determine that the record received by the user from the LCB 
               is unaltered from the official record published by LCB.
                 Provide for the preservation and security of the record 
               - if legal material is preserved in an electronic record, 
               the LCB must ensure the integrity of the record, provide 
               for backup/disaster recovery of the record, and ensure the 
               continuing usability of the material. The preservation and 
               security of the record could also be in a form that is not 
               electronic.
                 Provide for ongoing public access - for legal material 
               in electronic records that must be preserved, the LCB must 
               ensure the material is reasonably available for use by the 
               public on a permanent basis.

          In implementing the UELMA, the LCB would be required to consider 
          the standards and practices of other jurisdictions, the most 
          recent standards regarding authentication, preservation, 
          security, and public access to electronic records, as well as 








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          the needs of users and the views of governmental officials and 
          other interested persons. Finally, to the extent practicable, 
          the bill provides that LCB consider the use of methods and 
          technologies which are compatible with the methods used by other 
          official publishers in this state and in other states that have 
          adopted the UELMA.

          The bill specifies the act shall become operative on July 1, 
          2015.

          Staff Comments: In response to the passage of the UELMA, the 
          Office of Legislative Counsel (OLC) issued a white paper in 
          December 2011 providing a brief study and review of the relative 
          costs of authenticating primary legal materials in electronic 
          format. The paper reviewed five methods of electronic 
          authentication based on trustworthiness, file types, effort to 
          implement, and volume of documents to be authenticated. Various 
          solutions were described and relative costs compared.

          Based on the identification of UELMA's legal requirements and 
          review of industry best practices for records retention, access, 
          and use, the LCB estimates costs will be incurred for both 
          set-up and ongoing maintenance. One-time start-up costs are 
          estimated at $135,000 (General Fund) for authentication, 
          archiving, auditing, storage, and staffing costs. Costs for 
          authentication and security would include the purchase of an 
          Entrust Certified Document Services (CDS) certificate, hardware 
          security modules, and custom software. Storage costs would 
          include $15,000 annually for offsite dark storage at one 
          location and $4,000 for onsite storage in order to provide 
          access to the documents. Tripling offsite dark storage to 
          multiple locations would increase first-year costs to $165,000 
          (General Fund).
          Ongoing annual costs of $40,000 (General Fund) would include 
          offsite dark storage at one location, licensing renewal, and 
          auditing/sampling. Increased offsite dark storage would increase 
          ongoing costs to $70,000 per year.

          Aside from $50,000 in staffing costs estimated for the 
          authentication and preservation process, LCB estimates the 
          workload associated with ongoing staff time to manage and 
          maintain the system will be absorbed into current processes.

          With respect to adaptability, UELMA's approach allows states to 








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          remain flexible when opting for solutions to new technological 
          problems. As outcomes-based approaches anticipate that 
          publication technologies will change over time, future changes 
          may be required in the methods and technologies used to 
          authenticate, preserve, and secure electronic data. Any such 
          changes could result in unknown, future cost pressure associated 
          with updating processes and hardware/software to adapt to future 
          revisions in electronic data authentication and preservation 
          standards.