SACRAMENTO, CA, Aug. 31, 2017 -- IIABCal-supported SB 788 (Ricardo Lara, Dem-Bell Gardens) this week was approved by the Assembly Appropriations Committee unanimously. 

The bill mandates the Insurance Commissioner require either a social security number or an individual taxpayer identification number (ITIN) if an insurance agent applicant or licensee is an individual applying for or renewing a production agency license. 

Under current law the Department of Insurance (CDI) does not accept an individual taxpayer identification number, which can be used by those persons not eligible to obtain an SSN to pay taxes. A Little Hoover Commission report indicated this practice amounted to a barrier for entrance in the agency business by some individuals. This bill has received no opposition votes or stakeholder opposition.

State laws governing professional licenses have historically required the applicant to provide an SSN to verify an applicant's or licensee’s tax and / or child support compliance. A license will not be issued to an otherwise eligible applicant if unpaid taxes and / or child support are found. Unfortunately, requiring applicants to provide an SSN excludes some individuals who would otherwise be eligible to become an insurance agent or broker. Allowing CDI to accept an ITIN will remove barriers to access for insurance agent / broker licenses in California

An ITIN is a tax processing identification number issued by the Internal Revenue Service that is only available for taxpayers who are ineligible to receive an SSN. ITINs are used by undocumented immigrants, as well as people who are lawfully present in the United States, but do not qualify for an SSN. ITINs do not provide federal work authorization but facilitate compliance with tax laws.

Other supporters of the measure include CDI, Association of California Insurance Companies, Association of California Life & Health Insurance Companies, American Insurance Association, California Association of Health Underwriters, National Association of Insurance & Financial Advisors, National Association of Mutual Insurance Companies, Pacific Association of Domestic Insurance Companies, and Personal Insurance Federation of California.