California Senate Bill SB58

California 2021-2022 Regular Session

• Introduced: 12/7/20
• Refer: 1/28/21
• Report Pass: 3/9/21
• Refer: 3/9/21
• Refer: 3/15/21
• Report Pass: 3/24/21
• Refer: 3/24/21
• Refer: 4/27/21
• Engrossed: 5/10/21
• Refer: 5/20/21
• Report Pass: 6/17/21
• Refer: 6/21/21
• Report Pass: 6/24/21
• Refer: 6/24/21

Caption

Personal information: social security numbers: state agencies: Employment Development Department: fraud prevention.

Impact

The legislation modifies existing laws concerning privacy and fraud prevention in state agencies. By requiring EDD to reevaluate its mail practices, including ceasing the use of full social security numbers in correspondence, the bill directly influences the agency's operations related to fraud identification and unemployment insurance claim processes. Furthermore, it addresses a critical need identified during periods of heightened vulnerability to fraud, particularly following the increase in unemployment claims during crises such as the COVID-19 pandemic.

Summary

Senate Bill 58 aims to strengthen the protection of personal information by regulating how state agencies, particularly the Employment Development Department (EDD), handle outgoing mail that contains sensitive data such as social security numbers. Effective from October 1, 2021, the bill mandates that most correspondence sent to individuals must not display full social security numbers unless necessary and under specific exceptions. Instead, these numbers must be truncated to their last four digits or replaced with a unique identifier. This change intends to enhance privacy and reduce the risk of identity theft among California residents.

Sentiment

The reception of SB 58 appears largely supportive, especially among legislators and constituents who prioritize privacy and identity protection. However, concerns have been voiced by some stakeholders regarding the potential operational burden on the EDD, which must adapt swiftly to implement these changes. The urgency declared for the bill's immediate effect reflects the recognized importance of safeguarding vulnerable claimants’ information prompted by prior instances of fraud.

Contention

While the bill primarily aims to protect individuals, discussions have surfaced regarding the balance between privacy and operational efficiency. Some critics have argued that, while limiting the exposure of personal information is essential, the additional administrative responsibilities may postpone necessary services to constituents. As a resolution to this contention, the bill also requires the EDD to establish a designated unit to coordinate fraud prevention efforts effectively.