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<b>Online Exclusive:</b> Around the States

By ALM Staff | Law Journal Newsletters |
August 15, 2006

California. The San Francisco Chronicle drew attention last week to a little-noticed new law in California, SB 569, which exempts the University of California and Cal-State alumni organizations from the state's strict requirements for getting individuals' permission to share their contact information with third parties, such as credit card issuers. Since 1977, California has required organizations to get an affirmative opt-in before sharing information; under SB 569, that has been turned into an opt-out provision. The alumni groups are required to send opt-out letters annually, and so far they report that about 2% of recipients have responded with a request to be removed from marketing lists.

Massachusetts. The Boston Globe reported that insurers and employers in the state have asked Gov. Mitt Romney (R) to reconsider a proposal by the state health department to require them to provide the Social Security number of each employee as part of the state's new, comprehensive health care program. The state is considering the requirement as a way to ensure that businesses comply with a law to support universal health insurance. Under the plan, any person who cannot pay for health insurance will receive it for free or at a discount through a state subsidy; the state, in turn, wants to track a person's income by getting information from employers, which would be easiest by using Social Security numbers. 'When you take a person's name, address, and Social Security number and put them all together, those are the key pieces that identity thieves are looking for,' noted a statement from the Massachusetts Association of Health Plans. 'Collecting them every month and having them sit in the database and go through multiple hands increases the risk.'

California. The San Francisco Chronicle drew attention last week to a little-noticed new law in California, SB 569, which exempts the University of California and Cal-State alumni organizations from the state's strict requirements for getting individuals' permission to share their contact information with third parties, such as credit card issuers. Since 1977, California has required organizations to get an affirmative opt-in before sharing information; under SB 569, that has been turned into an opt-out provision. The alumni groups are required to send opt-out letters annually, and so far they report that about 2% of recipients have responded with a request to be removed from marketing lists.

Massachusetts. The Boston Globe reported that insurers and employers in the state have asked Gov. Mitt Romney (R) to reconsider a proposal by the state health department to require them to provide the Social Security number of each employee as part of the state's new, comprehensive health care program. The state is considering the requirement as a way to ensure that businesses comply with a law to support universal health insurance. Under the plan, any person who cannot pay for health insurance will receive it for free or at a discount through a state subsidy; the state, in turn, wants to track a person's income by getting information from employers, which would be easiest by using Social Security numbers. 'When you take a person's name, address, and Social Security number and put them all together, those are the key pieces that identity thieves are looking for,' noted a statement from the Massachusetts Association of Health Plans. 'Collecting them every month and having them sit in the database and go through multiple hands increases the risk.'

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