Colorado Legislative Council Staff

STATE and LOCAL

REVISED FISCAL NOTE

General Fund Expenditure Impact

(Replaces No Fiscal Impact dated January 12, 1998)

Drafting Number:

Prime Sponsor(s):

LLS 98-034

Rep. Arrington

Sen. Coffman

Date:

Bill Status:

Fiscal Analyst:

February 23, 1998

Senate SVMA

Steve Tammeus (866-2756)

 

TITLE:            CONCERNING LIMITATIONS ON THE USE OF SOCIAL SECURITY ACCOUNT NUMBERS.



Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Other Fund



 



 

State Expenditures

General Fund

Other Fund


$492,998


$421,618

FTE Position Change

16.6 FTE

16.6 FTE

Local Government ImpactRequires the local government custodian of a social security number to excise the number or render it illegible from a public record prior to allowing inspection of the record.


            This reengrossed bill prohibits anyone from buying, obtaining, selling, or exchanging an individual’s social security account number, or any derivative, for the purpose of committing fraud or fraudulently using an individuals’ entity. The bill allows an aggrieved individual to bring civil action to recover relief as the court determines appropriate, and the greater of actual damages or liquidated damages up to $10,000. If the aggrieved person prevails, the bill also allows the court to assess reasonable attorney fees and other litigation costs against the defendant. The bill specifies that any action brought pursuant to the provisions of the bill shall be in addition to, and not in lieu of, any criminal prosecution under state or federal law.


            The reengrossed bill requires the custodian of a social security number to excise the number or render it illegible from a public record prior to allowing inspection of the record.


            The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.


            This reengrossed bill will affect state expenditures. Therefore, it is assessed as having a state fiscal impact.

State Expenditures


            The reengrossed bill requires the custodian of a social security number to excise the number or render it illegible from a public record prior to allowing inspection of the record. The Judicial Branch believes that every case filed in the state court system may include social security numbers. Court records include social security numbers as part of criminal history records, financial affidavits, wage assignment documents, garnishment documents, copies of drivers’ licenses, and some interrogatories. These types of documents are found in virtually any of the 13 case types handled by the state courts.


            During FY 1996-97, 626,758 cases were filed in the state courts: 151,932 district; 472,451 county; and 2,375 water. This provision of the bill will require court clerks to inspect every record prior to its release for public information. The Judicial Branch will incur additional administrative expenses based upon the following assumptions:

               that these cases will be inspected only upon request;

               that, on average, 25 percent of all cases will be requested for public access;

               that each record will require an average of 10 minutes for social security number inspection; and

               that these estimates apply only to new cases and do not include costs for inspection of existing court cases.


            As a result, the Judicial Branch estimates that an average of 26,115 hours (626, 758 x 25% X 10 minutes/60 minutes) will be expended during FY 1998-99 and FY 1999-2000 to inspect court case records for social security numbers. This number of hours is equivalent to 16.6 FTE Court Clerk II (26,115 hours/1,572). Table 1 provides a summary of the Judicial Branch’s annual expenditures to implement the provisions of this reengrossed bill.


Judicial Branch

Social Security Number Administration

 

FY 1998-99

FY 1999-2000

Personal Services

Court Clerk II

PERA/Medicare

Total


16.6 FTE - $365,930

47,388

$413,318


16.6 FTE - $365,930

47,388

$413,318

Operating Expenses

8,300

8,300

Legal Expenses

0

0

Non-recurring Expenses

71,380

0

Total Expenses

$492,998

$421,618




Expenditures Not Included


            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:

 

               health and life insurance costs of $36,719;

               short-term disability costs of $768;

               inflationary cost factors;

               leased space; and

               indirect costs.



Local Government


            This reengrossed bill requires the local government custodian of a social security number to excise the number or render it illegible from a public record prior to allowing inspection of the record.



Spending Authority


            This fiscal note would imply that the Judicial Branch would require a General Fund appropriation of 16.6 FTE and $492,998 for FY 1998-99.



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