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AB-499 Personal information: social security numbers: state agencies.(2019-2020)

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Date Published: 04/11/2019 09:00 PM
AB499:v98#DOCUMENT

Amended  IN  Assembly  April 11, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 499


Introduced by Assembly Member Mayes

February 13, 2019


An act to amend Section 11753.1 of the Insurance Code, and to amend Section 5814.1 of the Labor Code, relating to workers’ compensation. 11019.7 of the Government Code, relating to state government.


LEGISLATIVE COUNSEL'S DIGEST


AB 499, as amended, Mayes. Workers’ compensation. Personal information: social security numbers: state agencies.
Existing law prohibits a state agency from sending any outgoing United States mail to an individual that contains personal information about that individual, including, but not limited to, the individual’s social security number, telephone number, driver’s license number, or credit card account number, unless that personal information is contained within sealed correspondence and cannot be viewed from the outside of that sealed correspondence.
This bill would prohibit a state agency from sending any outgoing mail that contains an individual’s full social security number unless, under the particular circumstances, federal law requires inclusion of the full social security number. The bill would require each state agency, on or before September 1, 2020, to report to the Legislature when and why it mails documents that contain individuals’ full social security numbers. The bill would require a state agency that, in its own estimation, is unable to comply with the prohibition to submit an annual corrective action plan to the Legislature until it is in compliance. The bill would require a state agency that is not in compliance with the prohibition to offer to provide appropriate identity theft prevention and mitigation services to any individual, at no cost to the individual, to whom it sent outgoing United States mail that contained the individual’s full social security number, as specified.

Existing law regulates workers’ compensation insurance rates and, among other things, requires rates to be adequate to cover an insurer’s losses and expenses. Existing law provides that a person aggrieved by a decision, action, or omission of a rating organization may request reconsideration, and if the request for reconsideration is rejected or is not acted upon within 30 days, the person may file an appeal with the Insurance Commissioner, as specified.

This bill would extend the timeline for reconsideration to 45 days, after which a person may then appeal the decision, action, or omission of the rating organization with the commissioner.

Existing law establishes the Workers’ Compensation Appeals Board to exercise all judicial powers vested in it, as specified, including workers’ compensation proceedings for the recovery of compensation. Existing law authorizes the Director of the Department of Industrial Relations to provide compensation at the director’s discretion from the Uninsured Employers Fund in specified workers’ compensation cases if compensation is not being provided to the applicant. Existing law provides that if payment of compensation has been unreasonably delayed or refused before the issuance of an award, and the director has paid that discretionary compensation, the Workers’ Compensation Appeals Board is required to award the director 10% of the compensation paid by the director, to be paid by the employer in addition to other specified penalties.

This bill would instead require the Workers’ Compensation Appeal Board to award the director an amount not to exceed 10% of the compensation paid to an applicant by the director.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 11019.7 of the Government Code is amended to read:

11019.7.
 (a) No state agency shall send any outgoing United States mail to an individual that contains personal information about that individual, including, but not limited to, the individual’s social security number, telephone number, driver’s license number, or credit card account number, unless that personal information is contained within sealed correspondence and cannot be viewed from the outside of that sealed correspondence.
(b) (1) Notwithstanding subdivision (a) or any other law, commencing on or before January 1, 2023, a state agency shall not send any outgoing United States mail to an individual that contains the individual’s full social security number unless, under the particular circumstances, federal law requires inclusion of the full social security number.
(2) (A) On or before September 1, 2020, each state agency shall report to the Legislature when and why it mails documents that contain individuals’ full social security numbers.
(B) A state agency that, in its own estimation, is unable to comply with the requirement of paragraph (1) of this subdivision shall submit an annual corrective action plan to the Legislature until it is in compliance with that paragraph.
(3) A state agency that is not in compliance with paragraph (1) shall offer to provide appropriate identity theft prevention and mitigation services for not less than 12 months to any individual, at no cost to the individual, to whom it sent outgoing United States mail that contained the individual’s full social security number, along with all information necessary to take advantage of the offer.
(4) (A) The requirement for submitting a report imposed under subparagraph (A) of paragraph (2) is inoperative on January 1, 2024, pursuant to Section 10231.5 of the Government Code.
(B) A report to be submitted pursuant to subparagraph (A) or (B) of paragraph (2) shall be submitted in compliance with Section 9795 of the Government Code.

(b)

(c) “Outgoing United States mail” for the purposes of this section includes correspondence sent via a common carrier, including, but not limited to, a package express service and a courier service.

(c)

(d) Notwithstanding subdivision (a) of Section 11000, “state agency” includes the California State University.

SECTION 1.Section 11753.1 of the Insurance Code is amended to read:
11753.1.

(a)A person aggrieved by a decision, action, or omission to act of a rating organization may request that the rating organization reconsider the decision, action, or omission. If the request for reconsideration is rejected or is not acted upon within 45 days by the rating organization, the person requesting reconsideration may, within a reasonable time, appeal from the decision, action, or omission of the rating organization. The appeal shall be made to the commissioner by filing a written complaint and request for a hearing specifying the grounds relied upon. If the commissioner has information on the subject appealed from and believes that probable cause for the appeal does not exist or that the appeal is not made in good faith, the commissioner may deny the appeal without a hearing. The commissioner shall otherwise hold a hearing to consider and determine the matter presented by the appeal.

(b)An insurer adopting a change in the classification assignment of an employer that results in an increased premium shall notify the employer in writing, or if the insurance was transacted through an insurance agent or broker, the insurer shall notify the agent or broker who shall notify the employer in writing of the change and the reasons for the change. An employer receiving this notice shall have the right to request reconsideration and appeal the reclassification pursuant to this section. The notice required by this section shall inform the employer of the employer’s rights pursuant to this section. A notification shall not be required if the change is a result of a regulation adopted by the Department of Insurance or other action by or under the authority of the commissioner.

An insurer shall provide written notification of the revised classification assignment to an employer within 30 days after adoption.

SEC. 2.Section 5814.1 of the Labor Code is amended to read:
5814.1.

If the payment of compensation has been unreasonably delayed or refused before the issuance of an award, and the director has provided discretionary compensation pursuant to Section 4903.3, the appeals board shall award to the director a penalty to be paid by the employer in an amount not to exceed 10 percent of the compensation provided by the director, that penalty to be in addition to the penalty imposed by Section 5814. The question of delay and the reasonableness of the cause therefor shall be determined by the appeals board in accordance with the facts.