Legislative Measure Pings Radar of Agents & Brokers

SACRAMENTO, CA, July 6, 2017 -  While a legislative proposal does not specifically relate to insurance as a subject matter, SB 244 (Senator Ricardo Lara, D-Bell Gardens) will impact the business of insurance, and indirectly, independent insurance agents and brokers. 

Appearing late at this stage of the legislative session, SB 244 is not helpful to the insurance industry, as it effectively prohibits the looking up of agents and brokers to check the status of their license to operate. 

The intent of SB 244 is to keep federal immigration officials from finding undocumented individuals via searches of public, online records. 

Specifically, the bill proposes to make certain classes of records exempt from disclosure pursuant to the California Public Records Act, making them confidential except in limited circumstances, in order to protect the privacy and safety of persons, including those who may lack documentation of their lawful presence in the country, and who could be identified by the disclosure of those records. 

The author and sponsors of the bill – including co-sponsors American Civil Liberties Union of Northern California and the California Immigrant Policy Center –argue that this significant change in the law is necessary in order to protect the personal information of millions of Californians, including California’s immigrant communities. 

The bill is in response to the January 25 Presidential executive order that makes sweeping changes to immigration enforcement in the interior of the U.S., significantly broadening the categories of unauthorized immigrants who are priorities for removal, reviving the controversial Secure Communities program, and reinvigorating a federal-local partnership which allows state and local law enforcement agencies to sign agreements and enforce aspects of federal immigration law. 

Whereas prior administrations had authorized immigration authorities to focus on priority groups (such as those with serious criminal histories), the present federal administration has directed federal authorities to employ “all lawful means” to enforce immigration laws against “all removable aliens.” 

The bill is opposed by the California Newspaper Publishers Association and California State Sheriffs Association, the latter of which carries some weight in the Legislature. 

The ACLU is the sponsor and the support list includes 66 other organizations.  Supporters have varying degrees of power, namely healthcare entities (ie. California Nurses Association) that seek to keep medical information private, consumer groups (Consumer Federation of California), and labor unions (United Farmworkers). 

SB 244 was approved by the full Senate 25-12 (No Votes: all Republican) and passed the Assembly Privacy Committee 8-2 on July 3. 

The bill is expected to be referred to the Assembly Judiciary Committee shortly. 

According to IIABCal Lobbyist John Norwood, the author has proposed amendments that would respond to concerns of insurance agents and broker, the Chamber of Commerce and contractor groups, but they do not address administrative enforcement actions.  Given the bill’s advancement, the lobbying effort against its passage will be scaled up.