BILL NUMBER: SB 869 CHAPTERED
BILL TEXT
CHAPTER 662
FILED WITH SECRETARY OF STATE OCTOBER 13, 2007
APPROVED BY GOVERNOR OCTOBER 13, 2007
PASSED THE SENATE SEPTEMBER 5, 2007
PASSED THE ASSEMBLY SEPTEMBER 4, 2007
AMENDED IN ASSEMBLY AUGUST 20, 2007
AMENDED IN ASSEMBLY JULY 19, 2007
AMENDED IN ASSEMBLY JULY 2, 2007
AMENDED IN ASSEMBLY JUNE 20, 2007
AMENDED IN SENATE MAY 9, 2007
AMENDED IN SENATE APRIL 26, 2007
AMENDED IN SENATE APRIL 23, 2007
AMENDED IN SENATE APRIL 9, 2007
INTRODUCED BY Senator Ridley-Thomas
FEBRUARY 23, 2007
An act to amend Sections 62.5 and 90.3 of the Labor Code, and to
amend Section 1095 of the Unemployment Insurance Code, relating to
workers' compensation.
LEGISLATIVE COUNSEL'S DIGEST
SB 869, Ridley-Thomas. Workers' compensation insurance: coverage
program.
(1) Existing law requires the Labor Commissioner to establish and
maintain a workers' compensation insurance coverage program for
targeting employers in industries with the highest incidence of
unlawfully uninsured employers and annually report to the Legislature
concerning the effectiveness of the program. The report is required
to include specified information.
This bill would revise these provisions to require the program to
systematically identify unlawfully uninsured employers and would
authorize the Labor Commissioner to prioritize targets for the
program in consideration of available resources. The bill would
revise the reporting requirements to, among other things, require the
report to be posted on the Labor Commissioner's Web site.
(2) Existing law establishes the Workers' Compensation
Administration Revolving Fund in the State Treasury. Money in the
fund may be expended by the Department of Industrial Relations, upon
appropriation by the Legislature, for the administration of the
workers' compensation program, except as provided, and for the
Return-to-Work Program.
This bill would also authorize these funds to be used for the
enforcement of the insurance coverage program maintained by the Labor
Commissioner.
(3) Existing law requires the Director of Employment Development
to permit the use of any information in his or her possession to the
extent necessary for specified purposes.
This bill would additionally require the director to permit the
use of any information in his or her possession to the extent
necessary to enable the Labor Commissioner of the Division of Labor
Standards Enforcement in the Department of Industrial Relations to
identify unlawfully uninsured employers.
(4) (A) This bill would incorporate additional changes to Section
1095 of the Unemployment Insurance Code, proposed by AB 798, to be
operative only if AB 798 and this bill are both enacted, each bill
amends that section, AB 8 is not enacted, or if enacted, does not
amend Section 1095 of the Unemployment Insurance Code, and this bill
is enacted after AB 798.
(B) This bill would incorporate additional changes to Section 1095
of the Unemployment Insurance Code, proposed by AB 8, to be
operative only if AB 8 and this bill are both enacted, each bill
amends that section, AB 798 is not enacted, or if enacted, does not
amend Section 1095 of the Unemployment Insurance Code, and this bill
is enacted after AB 8.
(C) This bill would incorporate additional changes to Section 1095
of the Unemployment Insurance Code, proposed by AB 798 and AB 8, to
be operative only if AB 798, AB 8, and this bill are all enacted, all
3 bills amend that section, and this bill is enacted after AB 798
and AB 8.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 62.5 of the Labor Code is amended to read:
62.5. (a) The Workers' Compensation Administration Revolving Fund
is hereby created as a special account in the State Treasury. Money
in the fund may be expended by the department, upon appropriation by
the Legislature, for all of the following purposes, and may not be
used or borrowed for any other purpose:
(1) For the administration of the workers' compensation program
set forth in this division and Division 4 (commencing with Section
3200), other than the activities financed pursuant to Section 3702.5.
(2) For the Return-to-Work Program set forth in Section 139.48.
(3) For the enforcement of the insurance coverage program
established and maintained by the Labor Commissioner pursuant to
Section 90.3.
(b) The fund shall consist of surcharges made pursuant to
subdivision (e).
(c) (1) The Uninsured Employers Benefits Trust Fund is hereby
created as a special trust fund account in the State Treasury, of
which the director is trustee, and its sources of funds are as
provided in subdivision (e). Notwithstanding Section 13340 of the
Government Code, the fund is continuously appropriated for the
payment of nonadministrative expenses of the workers' compensation
program for workers injured while employed by uninsured employers in
accordance with Article 2 (commencing with Section 3710) of Chapter 4
of Part 1 of Division 4, and shall not be used for any other
purpose. All moneys collected shall be retained in the trust fund
until paid as benefits to workers injured while employed by uninsured
employers. Nonadministrative expenses include audits and reports of
services prepared pursuant to subdivision (b) of Section 3716.1. The
surcharge amount for this fund shall be stated separately.
(2) Notwithstanding any other provision of law, all references to
the Uninsured Employers Fund shall mean the Uninsured Employers
Benefits Trust Fund.
(3) Notwithstanding paragraph (1), in the event that budgetary
restrictions or impasse prevent the timely payment of administrative
expenses from the Workers' Compensation Administration Revolving
Fund, those expenses shall be advanced from the Uninsured Employers
Benefits Trust Fund. Expense advances made pursuant to this paragraph
shall be reimbursed in full to the Uninsured Employers Benefits
Trust Fund upon enactment of the annual Budget Act.
(4) Any moneys from penalties collected pursuant to Section 3722
as a result of the insurance coverage program established under
Section 90.3 shall be deposited in the State Treasury to the credit
of the Workers' Compensation Administration Revolving Fund created
under Section 62.5, to cover expenses incurred by the director under
the insurance coverage program. The amount of any penalties in excess
of payment of administrative expenses incurred by the director for
the insurance coverage program established under Section 90.3 shall
be deposited in the State Treasury to the credit of the Uninsured
Employers Benefits Trust Fund for nonadministrative expenses, as
prescribed in paragraph (1), and notwithstanding paragraph (1), shall
only be available upon appropriation by the Legislature.
(d) (1) The Subsequent Injuries Benefits Trust Fund is hereby
created as a special trust fund account in the State Treasury, of
which the director is trustee, and its sources of funds are as
provided in subdivision (e). Notwithstanding Section 13340 of the
Government Code, the fund is continuously appropriated for the
nonadministrative expenses of the workers' compensation program for
workers who have suffered serious injury and who are suffering from
previous and serious permanent disabilities or physical impairments,
in accordance with Article 5 (commencing with Section 4751) of
Chapter 2 of Part 2 of Division 4, and Section 4 of Article XIV of
the California Constitution, and shall not be used for any other
purpose. All moneys collected shall be retained in the trust fund
until paid as benefits to workers who have suffered serious injury
and who are suffering from previous and serious permanent
disabilities or physical impairments. Nonadministrative expenses
include audits and reports of services pursuant to subdivision (c) of
Section 4755. The surcharge amount for this fund shall be stated
separately.
(2) Notwithstanding any other provision of law, all references to
the Subsequent Injuries Fund shall mean the Subsequent Injuries
Benefits Trust Fund.
(3) Notwithstanding paragraph (1), in the event that budgetary
restrictions or impasse prevent the timely payment of administrative
expenses from the Workers' Compensation Administration Revolving
Fund, those expenses shall be advanced from the Subsequent Injuries
Benefits Trust Fund. Expense advances made pursuant to this paragraph
shall be reimbursed in full to the Subsequent Injuries Benefits
Trust Fund upon enactment of the annual Budget Act.
(e) (1) Separate surcharges shall be levied by the director upon
all employers, as defined in Section 3300, for purposes of deposit in
the Workers' Compensation Administration Revolving Fund, the
Uninsured Employers Benefits Trust Fund, and the Subsequent Injuries
Benefits Trust Fund. The total amount of the surcharges shall be
allocated between self-insured employers and insured employers in
proportion to payroll respectively paid in the most recent year for
which payroll information is available. The director shall adopt
reasonable regulations governing the manner of collection of the
surcharges. The regulations shall require the surcharges to be paid
by self-insurers to be expressed as a percentage of indemnity paid
during the most recent year for which information is available, and
the surcharges to be paid by insured employers to be expressed as a
percentage of premium. In no event shall the surcharges paid by
insured employers be considered a premium for computation of a gross
premium tax or agents' commission. In no event shall the total amount
of the surcharges paid by insured and self-insured employers exceed
the amounts reasonably necessary to carry out the purposes of this
section.
(2) The regulations adopted pursuant to paragraph (1) shall be
exempt from the rulemaking provisions of the Administrative Procedure
Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code).
SEC. 2. Section 90.3 of the Labor Code is amended to read:
90.3. (a) It is the policy of this state to vigorously enforce
the laws requiring employers to secure the payment of compensation as
required by Section 3700 and to protect employers who comply with
the law from those who attempt to gain a competitive advantage at the
expense of their workers by failing to secure the payment of
compensation.
(b) In order to ensure that the laws requiring employers to secure
the payment of compensation are adequately enforced, the Labor
Commissioner shall establish and maintain a program that
systematically identifies unlawfully uninsured employers. The Labor
Commissioner, in consultation with the Administrative Director of the
Division of Workers' Compensation and the director, may prioritize
targets for the program in consideration of available resources. The
employers shall be identified from data from the Uninsured Employers'
Fund, the Employment Development Department, the rating
organizations licensed by the Insurance Commissioner pursuant to
Article 3 (commencing with Section 11750) of Chapter 3 of Part 3 of
Division 2 of the Insurance Code, and any other sources deemed likely
to lead to the identification of unlawfully uninsured employers. All
state departments and agencies and any rating organization licensed
by the Insurance Commissioner pursuant to Article 3 (commencing with
Section 11750) of Chapter 3 of Part 3 of Division 2 of the Insurance
Code shall cooperate with the Labor Commissioner and on reasonable
request provide information and data in their possession reasonably
necessary to carry out the program.
(c) As part of the program, the Labor Commissioner shall establish
procedures for ensuring that employers with payroll but with no
record of workers' compensation coverage are contacted and, if no
valid reason for the lack of record of coverage is shown, inspected
on a priority basis.
(d) The Labor Commissioner shall annually, not later than March 1,
prepare a report concerning the effectiveness of the program,
publish it on the Labor Commissioner's Web site, as well as notify
the Legislature, the Governor, the Insurance Commissioner, and the
Administrative Director of the Division of Workers' Compensation of
the report's availability. The report shall include, but not be
limited to, all of the following:
(1) The number of employers identified from records of the
Employment Development Department who were screened for matching
records of insurance coverage or self-insurance.
(2) The number of employers identified from records of the
Employment Development Department that were matched to records of
insurance coverage or self-insurance.
(3) The number of employers identified from records of the
Employment Development Department that were notified that there was
no record of their insurance coverage.
(4) The number of employers responding to the notices, and the
nature of the responses, including the number of employers who failed
to provide satisfactory proof of workers' compensation coverage and
including information about the reasons that employers who provided
satisfactory proof of coverage were not appropriately recognized in
the comparison performed under subdivision (b). The report may
include recommendations to improve the accuracy and efficiency of the
program in screening for unlawfully uninsured employers.
(5) The number of employers identified as unlawfully uninsured
from records of the Uninsured Employers' Benefits Trust Fund or from
records of the Division of Workers' Compensation, and the number of
those employers that are also identifiable from the records of the
Employment Development Department. These statistics shall be reported
in a manner to permit analysis and estimation of the percentage of
unlawfully uninsured employers that do not report wages to the
Employment Development Department.
(6) The number of employers inspected.
(7) The number and amount of penalties assessed pursuant to
Section 3722 as a result of the program.
(8) The number and amount of penalties collected pursuant to
Section 3722 as a result of the program.
(e) The allocation of funds from the Workers' Compensation
Administration Revolving Fund pursuant to subdivision (a) of Section
62.5 shall not increase the total amount of surcharges pursuant to
subdivision (e) of Section 62.5. Startup costs for this program shall
be allocated from the fiscal year 2007-08 surcharges collected. The
total amount allocated for this program under subdivision (a) of
Section 62.5 in subsequent years shall not exceed the amount of
penalties collected pursuant to Section 3722 as a result of the
program.
SEC. 3. Section 1095 of the Unemployment Insurance Code is amended
to read:
1095. The director shall permit the use of any information in his
or her possession to the extent necessary for any of the following
purposes and may require reimbursement for all direct costs incurred
in providing any and all information specified in this section,
except information specified in subdivisions (a) to (e), inclusive:
(a) To enable the director or his or her representative to carry
out his or her responsibilities under this code.
(b) To properly present a claim for benefits.
(c) To acquaint a worker or his or her authorized agent with his
or her existing or prospective right to benefits.
(d) To furnish an employer or his or her authorized agent with
information to enable him or her to fully discharge his or her
obligations or safeguard his or her rights under this division or
Division 3 (commencing with Section 9000).
(e) To enable an employer to receive a reduction in contribution
rate.
(f) To enable federal, state, or local government departments or
agencies, subject to federal law, to verify or determine the
eligibility or entitlement of an applicant for, or a recipient of,
public social services provided pursuant to Division 9 (commencing
with Section 10000) of the Welfare and Institutions Code, or Part A
of Title IV of the Social Security Act, where the verification or
determination is directly connected with, and limited to, the
administration of public social services.
(g) To enable county administrators of general relief or
assistance, or their representatives, to determine entitlement to
locally provided general relief or assistance, where the
determination is directly connected with, and limited to, the
administration of general relief or assistance.
(h) To enable state or local governmental departments or agencies
to seek criminal, civil, or administrative remedies in connection
with the unlawful application for, or receipt of, relief provided
under Division 9 (commencing with Section 10000) of the Welfare and
Institutions Code or to enable the collection of expenditures for
medical assistance services pursuant to Part 5 (commencing with
Section 17000) of Division 9 of the Welfare and Institutions Code.
(i) To provide any law enforcement agency with the name, address,
telephone number, birth date, social security number, physical
description, and names and addresses of present and past employers,
of any victim, suspect, missing person, potential witness, or person
for whom a felony arrest warrant has been issued, when a request for
this information is made by any investigator or peace officer as
defined by Sections 830.1 and 830.2 of the Penal Code, or by any
federal law enforcement officer to whom the Attorney General has
delegated authority to enforce federal search warrants, as defined
under Sections 60.2 and 60.3 of Title 28 of the Code of Federal
Regulations, as amended, and when the requesting officer has been
designated by the head of the law enforcement agency and requests
this information in the course of and as a part of an investigation
into the commission of a crime when there is a reasonable suspicion
that the crime is a felony and that the information would lead to
relevant evidence. The information provided pursuant to this
subdivision shall be provided to the extent permitted by federal law
and regulations, and to the extent the information is available and
accessible within the constraints and configurations of existing
department records. Any person who receives any information under
this subdivision shall make a written report of the information to
the law enforcement agency that employs him or her, for filing under
the normal procedures of that agency.
(1) This subdivision shall not be construed to authorize the
release to any law enforcement agency of a general list identifying
individuals applying for or receiving benefits.
(2) The department shall maintain records pursuant to this
subdivision only for periods required under regulations or statutes
enacted for the administration of its programs.
(3) This subdivision shall not be construed as limiting the
information provided to law enforcement agencies to that pertaining
only to applicants for, or recipients of, benefits.
(4) The department shall notify all applicants for benefits that
release of confidential information from their records will not be
protected should there be a felony arrest warrant issued against the
applicant or in the event of an investigation by a law enforcement
agency into the commission of a felony.
(j) To provide public employee retirement systems in California
with information relating to the earnings of any person who has
applied for or is receiving a disability income, disability
allowance, or disability retirement allowance, from a public employee
retirement system. The earnings information shall be released only
upon written request from the governing board specifying that the
person has applied for or is receiving a disability allowance or
disability retirement allowance from its retirement system. The
request may be made by the chief executive officer of the system or
by an employee of the system so authorized and identified by name and
title by the chief executive officer in writing.
(k) To enable the Division of Labor Standards Enforcement in the
Department of Industrial Relations to seek criminal, civil, or
administrative remedies in connection with the failure to pay, or the
unlawful payment of, wages pursuant to Chapter 1 (commencing with
Section 200) of Part 1 of Division 2 of, and Chapter 1 (commencing
with Section 1720) of Part 7 of Division 2 of, the Labor Code.
(l) To enable federal, state, or local governmental departments or
agencies to administer child support enforcement programs under
Title IV of the Social Security Act (42 U.S.C. Sec. 651 et seq.).
(m) To provide federal, state, or local governmental departments
or agencies with wage and claim information in its possession that
will assist those departments and agencies in the administration of
the Victims of Crime Program or in the location of victims of crime
who, by state mandate or court order, are entitled to restitution
that has been or can be recovered.
(n) To provide federal, state, or local governmental departments
or agencies with information concerning any individuals who are or
have been:
(1) Directed by state mandate or court order to pay restitution,
fines, penalties, assessments, or fees as a result of a violation of
law.
(2) Delinquent or in default on guaranteed student loans or who
owe repayment of funds received through other financial assistance
programs administered by those agencies. The information released by
the director for the purposes of this paragraph shall not include
unemployment insurance benefit information.
(o) To provide an authorized governmental agency with any or all
relevant information that relates to any specific workers'
compensation insurance fraud investigation. The information shall be
provided to the extent permitted by federal law and regulations. For
the purposes of this subdivision, "authorized governmental agency"
means the district attorney of any county, the office of the Attorney
General, the Department of Industrial Relations, and the Department
of Insurance. An authorized governmental agency may disclose this
information to the State Bar, the Medical Board of California, or any
other licensing board or department whose licensee is the subject of
a workers' compensation insurance fraud investigation. This
subdivision shall not prevent any authorized governmental agency from
reporting to any board or department the suspected misconduct of any
licensee of that body.
(p) To enable the Director of the Bureau for Private Postsecondary
and Vocational Education, or his or her representatives, to access
unemployment insurance quarterly wage data on a case-by-case basis to
verify information on school administrators, school staff, and
students provided by those schools who are being investigated for
possible violations of Chapter 7 (commencing with Section 94700) of
Part 59 of the Education Code.
(q) To provide employment tax information to the tax officials of
Mexico, if a reciprocal agreement exists. For purposes of this
subdivision, "reciprocal agreement" means a formal agreement to
exchange information between national taxing officials of Mexico and
taxing authorities of the State Board of Equalization, the Franchise
Tax Board, and the Employment Development Department. Furthermore,
the reciprocal agreement shall be limited to the exchange of
information that is essential for tax administration purposes only.
Taxing authorities of the State of California shall be granted tax
information only on California residents. Taxing authorities of
Mexico shall be granted tax information only on Mexican nationals.
(r) To enable city and county planning agencies to develop
economic forecasts for planning purposes. The information shall be
limited to businesses within the jurisdiction of the city or county
whose planning agency is requesting the information, and shall not
include information regarding individual employees.
(s) To provide the State Department of Developmental Services with
wage and employer information that will assist in the collection of
moneys owed by the recipient, parent, or any other legally liable
individual for services and supports provided pursuant to Chapter 9
(commencing with Section 4775) of Division 4.5 of, and Chapter 2
(commencing with Section 7200) and Chapter 3 (commencing with Section
7500) of Division 7 of, the Welfare and Institutions Code.
(t) Nothing in this section shall be construed to authorize or
permit the use of information obtained in the administration of this
code by any private collection agency.
(u) The disclosure of the name and address of an individual or
business entity that was issued an assessment that included penalties
under Section 1128 or 1128.1 shall not be in violation of Section
1094 if the assessment is final. The disclosure may also include any
of the following:
(1) The total amount of the assessment.
(2) The amount of the penalty imposed under Section 1128 or 1128.1
that is included in the assessment.
(3) The facts that resulted in the charging of the penalty under
Section 1128 or 1128.1.
(v) To enable the Contractors' State License Board to verify the
employment history of an individual applying for licensure pursuant
to Section 7068 of the Business and Professions Code.
(w) To provide any peace officer with the Division of
Investigation in the Department of Consumer Affairs information
pursuant to subdivision (i) when the requesting peace officer has
been designated by the Chief of the Division of Investigations and
requests this information in the course of and in part of an
investigation into the commission of a crime or other unlawful act
when there is reasonable suspicion to believe that the crime or act
may be connected to the information requested and would lead to
relevant information regarding the crime or unlawful act.
(x) To enable the Labor Commissioner of the Division of Labor
Standards Enforcement in the Department of Industrial Relations to
identify, pursuant to Section 90.3 of the Labor Code, unlawfully
uninsured employers. The information shall be provided to the extent
permitted by federal law and regulations.
SEC. 3.5. Section 1095 of the Unemployment Insurance Code is
amended to read:
1095. The director shall permit the use of any information in his
or her possession to the extent necessary for any of the following
purposes and may require reimbursement for all direct costs incurred
in providing any and all information specified in this section,
except information specified in subdivisions (a) to (e), inclusive:
(a) To enable the director or his or her representative to carry
out his or her responsibilities under this code.
(b) To properly present a claim for benefits.
(c) To acquaint a worker or his or her authorized agent with his
or her existing or prospective right to benefits.
(d) To furnish an employer or his or her authorized agent with
information to enable him or her to fully discharge his or her
obligations or safeguard his or her rights under this division or
Division 3 (commencing with Section 9000).
(e) To enable an employer to receive a reduction in contribution
rate.
(f) To enable federal, state, or local government departments or
agencies, subject to federal law, to verify or determine the
eligibility or entitlement of an applicant for, or a recipient of,
public social services provided pursuant to Division 9 (commencing
with Section 10000) of the Welfare and Institutions Code, or Part A
of Title IV of the Social Security Act, where the verification or
determination is directly connected with, and limited to, the
administration of public social services.
(g) To enable county administrators of general relief or
assistance, or their representatives, to determine entitlement to
locally provided general relief or assistance, where the
determination is directly connected with, and limited to, the
administration of general relief or assistance.
(h) To enable state or local governmental departments or agencies
to seek criminal, civil, or administrative remedies in connection
with the unlawful application for, or receipt of, relief provided
under Division 9 (commencing with Section 10000) of the Welfare and
Institutions Code or to enable the collection of expenditures for
medical assistance services pursuant to Part 5 (commencing with
Section 17000) of Division 9 of the Welfare and Institutions Code.
(i) To provide any law enforcement agency with the name, address,
telephone number, birth date, social security number, physical
description, and names and addresses of present and past employers,
of any victim, suspect, missing person, potential witness, or person
for whom a felony arrest warrant has been issued, when a request for
this information is made by any investigator or peace officer as
defined by Sections 830.1 and 830.2 of the Penal Code, or by any
federal law enforcement officer to whom the Attorney General has
delegated authority to enforce federal search warrants, as defined
under Sections 60.2 and 60.3 of Title 28 of the Code of Federal
Regulations, as amended, and when the requesting officer has been
designated by the head of the law enforcement agency and requests
this information in the course of and as a part of an investigation
into the commission of a crime when there is a reasonable suspicion
that the crime is a felony and that the information would lead to
relevant evidence. The information provided pursuant to this
subdivision shall be provided to the extent permitted by federal law
and regulations, and to the extent the information is available and
accessible within the constraints and configurations of existing
department records. Any person who receives any information under
this subdivision shall make a written report of the information to
the law enforcement agency that employs him or her, for filing under
the normal procedures of that agency.
(1) This subdivision shall not be construed to authorize the
release to any law enforcement agency of a general list identifying
individuals applying for or receiving benefits.
(2) The department shall maintain records pursuant to this
subdivision only for periods required under regulations or statutes
enacted for the administration of its programs.
(3) This subdivision shall not be construed as limiting the
information provided to law enforcement agencies to that pertaining
only to applicants for,
or recipients of, benefits.
(4) The department shall notify all applicants for benefits that
release of confidential information from their records will not be
protected should there be a felony arrest warrant issued against the
applicant or in the event of an investigation by a law enforcement
agency into the commission of a felony.
(j) To provide public employee retirement systems in California
with information relating to the earnings of any person who has
applied for or is receiving a disability income, disability
allowance, or disability retirement allowance, from a public employee
retirement system. The earnings information shall be released only
upon written request from the governing board specifying that the
person has applied for or is receiving a disability allowance or
disability retirement allowance from its retirement system. The
request may be made by the chief executive officer of the system or
by an employee of the system so authorized and identified by name and
title by the chief executive officer in writing.
(k) To enable the Division of Labor Standards Enforcement in the
Department of Industrial Relations to seek criminal, civil, or
administrative remedies in connection with the failure to pay, or the
unlawful payment of, wages pursuant to Chapter 1 (commencing with
Section 200) of Part 1 of Division 2 of, and Chapter 1 (commencing
with Section 1720) of Part 7 of Division 2 of, the Labor Code.
() To enable federal, state, or local governmental departments or
agencies to administer child support enforcement programs under Title
IV of the Social Security Act (42 U.S.C. Sec. 651 et seq.).
(m) To provide federal, state, or local governmental departments
or agencies with wage and claim information in its possession that
will assist those departments and agencies in the administration of
the Victims of Crime Program or in the location of victims of crime
who, by state mandate or court order, are entitled to restitution
that has been or can be recovered.
(n) To provide federal, state, or local governmental departments
or agencies with information concerning any individuals who are or
have been:
(1) Directed by state mandate or court order to pay restitution,
fines, penalties, assessments, or fees as a result of a violation of
law.
(2) Delinquent or in default on guaranteed student loans or who
owe repayment of funds received through other financial assistance
programs administered by those agencies. The information released by
the director for the purposes of this paragraph shall not include
unemployment insurance benefit information.
(o) To provide an authorized governmental agency with any or all
relevant information that relates to any specific workers'
compensation insurance fraud investigation. The information shall be
provided to the extent permitted by federal law and regulations. For
the purposes of this subdivision, "authorized governmental agency"
means the district attorney of any county, the office of the Attorney
General, the Department of Industrial Relations, and the Department
of Insurance. An authorized governmental agency may disclose this
information to the State Bar, the Medical Board of California, or any
other licensing board or department whose licensee is the subject of
a workers' compensation insurance fraud investigation. This
subdivision shall not prevent any authorized governmental agency from
reporting to any board or department the suspected misconduct of any
licensee of that body.
(p) To enable the Director of the Bureau for Private Postsecondary
and Vocational Education, or his or her representatives, to access
unemployment insurance quarterly wage data on a case-by-case basis to
verify information on school administrators, school staff, and
students provided by those schools who are being investigated for
possible violations of Chapter 7 (commencing with Section 94700) of
Part 59 of the Education Code.
(q) To provide employment tax information to the tax officials of
Mexico, if a reciprocal agreement exists. For purposes of this
subdivision, "reciprocal agreement" means a formal agreement to
exchange information between national taxing officials of Mexico and
taxing authorities of the State Board of Equalization, the Franchise
Tax Board, and the Employment Development Department. Furthermore,
the reciprocal agreement shall be limited to the exchange of
information that is essential for tax administration purposes only.
Taxing authorities of the State of California shall be granted tax
information only on California residents. Taxing authorities of
Mexico shall be granted tax information only on Mexican nationals.
(r) To enable city and county planning agencies to develop
economic forecasts for planning purposes. The information shall be
limited to businesses within the jurisdiction of the city or county
whose planning agency is requesting the information, and shall not
include information regarding individual employees.
(s) To provide the State Department of Developmental Services with
wage and employer information that will assist in the collection of
moneys owed by the recipient, parent, or any other legally liable
individual for services and supports provided pursuant to Chapter 9
(commencing with Section 4775) of Division 4.5 of, and Chapter 2
(commencing with Section 7200) and Chapter 3 (commencing with Section
7500) of Division 7 of, the Welfare and Institutions Code.
(t) Nothing in this section shall be construed to authorize or
permit the use of information obtained in the administration of this
code by any private collection agency.
(u) The disclosure of the name and address of an individual or
business entity that was issued an assessment that included penalties
under Section 1128 or 1128.1 shall not be in violation of Section
1094 if the assessment is final. The disclosure may also include any
of the following:
(1) The total amount of the assessment.
(2) The amount of the penalty imposed under Section 1128 or 1128.1
that is included in the assessment.
(3) The facts that resulted in the charging of the penalty under
Section 1128 or 1128.1.
(v) To enable the Contractors' State License Board to verify the
employment history of an individual applying for licensure pursuant
to Section 7068 of the Business and Professions Code.
(w) To provide any peace officer with the Division of
Investigation in the Department of Consumer Affairs information
pursuant to subdivision (i) when the requesting peace officer has
been designated by the Chief of the Division of Investigations and
requests this information in the course of and in part of an
investigation into the commission of a crime or other unlawful act
when there is reasonable suspicion to believe that the crime or act
may be connected to the information requested and would lead to
relevant information regarding the crime or unlawful act.
(x) To enable the Labor Commissioner of the Division of Labor
Standards Enforcement in the Department of Industrial Relations to
identify, pursuant to Section 90.3 of the Labor Code, unlawfully
uninsured employers. The information shall be provided to the extent
permitted by federal law and regulations.
(y) To enable the Chancellor of the California Community Colleges,
in accordance with the requirements of Section 84754.5 of the
Education Code, to obtain quarterly wage data, commencing January 1,
1993, on students who have attended one or more community colleges,
to assess the impact of education on the employment and earnings of
students, to conduct the annual evaluation of district-level and
individual college performance in achieving priority educational
outcomes, and to submit the required reports to the Legislature and
Governor. The information shall be provided to the extent permitted
by federal statutes and regulations.
SEC. 3.7. Section 1095 of the Unemployment Insurance Code is
amended to read:
1095. The director shall permit the use of any information in his
or her possession to the extent necessary for any of the following
purposes and may require reimbursement for all direct costs incurred
in providing any and all information specified in this section,
except information specified in subdivisions (a) to (e), inclusive:
(a) To enable the director or his or her representative to carry
out his or her responsibilities under this code.
(b) To properly present a claim for benefits.
(c) To acquaint a worker or his or her authorized agent with his
or her existing or prospective right to benefits.
(d) To furnish an employer or his or her authorized agent with
information to enable him or her to fully discharge his or her
obligations or safeguard his or her rights under this division or
Division 3 (commencing with Section 9000).
(e) To enable an employer to receive a reduction in contribution
rate.
(f) To enable federal, state, or local government departments or
agencies, subject to federal law, to verify or determine the
eligibility or entitlement of an applicant for, or a recipient of,
public social services provided pursuant to Division 9 (commencing
with Section 10000) of the Welfare and Institutions Code, or Part A
of Title IV of the Social Security Act, where the verification or
determination is directly connected with, and limited to, the
administration of public social services.
(g) To enable county administrators of general relief or
assistance, or their representatives, to determine entitlement to
locally provided general relief or assistance, where the
determination is directly connected with, and limited to, the
administration of general relief or assistance.
(h) To enable state or local governmental departments or agencies
to seek criminal, civil, or administrative remedies in connection
with the unlawful application for, or receipt of, relief provided
under Division 9 (commencing with Section 10000) of the Welfare and
Institutions Code or to enable the collection of expenditures for
medical assistance services pursuant to Part 5 (commencing with
Section 17000) of Division 9 of the Welfare and Institutions Code.
(i) To provide any law enforcement agency with the name, address,
telephone number, birth date, social security number, physical
description, and names and addresses of present and past employers,
of any victim, suspect, missing person, potential witness, or person
for whom a felony arrest warrant has been issued, when a request for
this information is made by any investigator or peace officer as
defined by Sections 830.1 and 830.2 of the Penal Code, or by any
federal law enforcement officer to whom the Attorney General has
delegated authority to enforce federal search warrants, as defined
under Sections 60.2 and 60.3 of Title 28 of the Code of Federal
Regulations, as amended, and when the requesting officer has been
designated by the head of the law enforcement agency and requests
this information in the course of and as a part of an investigation
into the commission of a crime when there is a reasonable suspicion
that the crime is a felony and that the information would lead to
relevant evidence. The information provided pursuant to this
subdivision shall be provided to the extent permitted by federal law
and regulations, and to the extent the information is available and
accessible within the constraints and configurations of existing
department records. Any person who receives any information under
this subdivision shall make a written report of the information to
the law enforcement agency that employs him or her, for filing under
the normal procedures of that agency.
(1) This subdivision shall not be construed to authorize the
release to any law enforcement agency of a general list identifying
individuals applying for or receiving benefits.
(2) The department shall maintain records pursuant to this
subdivision only for periods required under regulations or statutes
enacted for the administration of its programs.
(3) This subdivision shall not be construed as limiting the
information provided to law enforcement agencies to that pertaining
only to applicants for, or recipients of, benefits.
(4) The department shall notify all applicants for benefits that
release of confidential information from their records will not be
protected should there be a felony arrest warrant issued against the
applicant or in the event of an investigation by a law enforcement
agency into the commission of a felony.
(j) To provide public employee retirement systems in California
with information relating to the earnings of any person who has
applied for or is receiving a disability income, disability
allowance, or disability retirement allowance, from a public employee
retirement system. The earnings information shall be released only
upon written request from the governing board specifying that the
person has applied for or is receiving a disability allowance or
disability retirement allowance from its retirement system. The
request may be made by the chief executive officer of the system or
by an employee of the system so authorized and identified by name and
title by the chief executive officer in writing.
(k) To enable the Division of Labor Standards Enforcement in the
Department of Industrial Relations to seek criminal, civil, or
administrative remedies in connection with the failure to pay, or the
unlawful payment of, wages pursuant to Chapter 1 (commencing with
Section 200) of Part 1 of Division 2 of, and Chapter 1 (commencing
with Section 1720) of Part 7 of Division 2 of, the Labor Code.
() To enable federal, state, or local governmental departments or
agencies to administer child support enforcement programs under Title
IV of the Social Security Act (42 U.S.C. Sec. 651 et seq.).
(m) To provide federal, state, or local governmental departments
or agencies with wage and claim information in its possession that
will assist those departments and agencies in the administration of
the Victims of Crime Program or in the location of victims of crime
who, by state mandate or court order, are entitled to restitution
that has been or can be recovered.
(n) To provide federal, state, or local governmental departments
or agencies with information concerning any individuals who are or
have been:
(1) Directed by state mandate or court order to pay restitution,
fines, penalties, assessments, or fees as a result of a violation of
law.
(2) Delinquent or in default on guaranteed student loans or who
owe repayment of funds received through other financial assistance
programs administered by those agencies. The information released by
the director for the purposes of this paragraph shall not include
unemployment insurance benefit information.
(o) To provide an authorized governmental agency with any or all
relevant information that relates to any specific workers'
compensation insurance fraud investigation. The information shall be
provided to the extent permitted by federal law and regulations. For
the purposes of this subdivision, "authorized governmental agency"
means the district attorney of any county, the office of the Attorney
General, the Department of Industrial Relations, and the Department
of Insurance. An authorized governmental agency may disclose this
information to the State Bar, the Medical Board of California, or any
other licensing board or department whose licensee is the subject of
a workers' compensation insurance fraud investigation. This
subdivision shall not prevent any authorized governmental agency from
reporting to any board or department the suspected misconduct of any
licensee of that body.
(p) To enable the Director of the Bureau for Private Postsecondary
and Vocational Education, or his or her representatives, to access
unemployment insurance quarterly wage data on a case-by-case basis to
verify information on school administrators, school staff, and
students provided by those schools who are being investigated for
possible violations of Chapter 7 (commencing with Section 94700) of
Part 59 of the Education Code.
(q) To provide employment tax information to the tax officials of
Mexico, if a reciprocal agreement exists. For purposes of this
subdivision, "reciprocal agreement" means a formal agreement to
exchange information between national taxing officials of Mexico and
taxing authorities of the State Board of Equalization, the Franchise
Tax Board, and the Employment Development Department. Furthermore,
the reciprocal agreement shall be limited to the exchange of
information that is essential for tax administration purposes only.
Taxing authorities of the State of California shall be granted tax
information only on California residents. Taxing authorities of
Mexico shall be granted tax information only on Mexican nationals.
(r) To enable city and county planning agencies to develop
economic forecasts for planning purposes. The information shall be
limited to businesses within the jurisdiction of the city or county
whose planning agency is requesting the information, and shall not
include information regarding individual employees.
(s) To provide the State Department of Developmental Services with
wage and employer information that will assist in the collection of
moneys owed by the recipient, parent, or any other legally liable
individual for services and supports provided pursuant to Chapter 9
(commencing with Section 4775) of Division 4.5 of, and Chapter 2
(commencing with Section 7200) and Chapter 3 (commencing with Section
7500) of Division 7 of, the Welfare and Institutions Code.
(t) Nothing in this section shall be construed to authorize or
permit the use of information obtained in the administration of this
code by any private collection agency.
(u) The disclosure of the name and address of an individual or
business entity that was issued an assessment that included penalties
under Section 1128 or 1128.1 shall not be in violation of Section
1094 if the assessment is final. The disclosure may also include any
of the following:
(1) The total amount of the assessment.
(2) The amount of the penalty imposed under Section 1128 or 1128.1
that is included in the assessment.
(3) The facts that resulted in the charging of the penalty under
Section 1128 or 1128.1.
(v) To enable the Contractors' State License Board to verify the
employment history of an individual applying for licensure pursuant
to Section 7068 of the Business and Professions Code.
(w) To provide any peace officer with the Division of
Investigation in the Department of Consumer Affairs information
pursuant to subdivision (i) when the requesting peace officer has
been designated by the Chief of the Division of Investigations and
requests this information in the course of and in part of an
investigation into the commission of a crime or other unlawful act
when there is reasonable suspicion to believe that the crime or act
may be connected to the information requested and would lead to
relevant information regarding the crime or unlawful act.
(x) To enable the Labor Commissioner of the Division of Labor
Standards Enforcement in the Department of Industrial Relations to
identify, pursuant to Section 90.3 of the Labor Code, unlawfully
uninsured employers. The information shall be provided to the extent
permitted by federal law and regulations.
(y) To provide information obtained in the administration and
enforcement of the California Health Insurance Purchasing Pool
Program (Division 1.2 (commencing with Section 4800)) to the Managed
Risk Medical Insurance Board for the purpose of administering the
California Health Care Reform and Cost Control Act.
SEC. 3.9. Section 1095 of the Unemployment Insurance Code is
amended to read:
1095. The director shall permit the use of any information in his
or her possession to the extent necessary for any of the following
purposes and may require reimbursement for all direct costs incurred
in providing any and all information specified in this section,
except information specified in subdivisions (a) to (e), inclusive:
(a) To enable the director or his or her representative to carry
out his or her responsibilities under this code.
(b) To properly present a claim for benefits.
(c) To acquaint a worker or his or her authorized agent with his
or her existing or prospective right to benefits.
(d) To furnish an employer or his or her authorized agent with
information to enable him or her to fully discharge his or her
obligations or safeguard his or her rights under this division or
Division 3 (commencing with Section 9000).
(e) To enable an employer to receive a reduction in contribution
rate.
(f) To enable federal, state, or local government departments or
agencies, subject to federal law, to verify or determine the
eligibility or entitlement of an applicant for, or a recipient of,
public social services provided pursuant to Division 9 (commencing
with Section 10000) of the Welfare and Institutions Code, or Part A
of Title IV of the Social Security Act, where the verification or
determination is directly connected with, and limited to, the
administration of public social services.
(g) To enable county administrators of general relief or
assistance, or their representatives, to determine entitlement to
locally provided general relief or assistance, where the
determination is directly connected with, and limited to, the
administration of general relief or assistance.
(h) To enable state or local governmental departments or agencies
to seek criminal, civil, or administrative remedies in connection
with the unlawful application for, or receipt of, relief provided
under Division 9 (commencing with Section 10000) of the Welfare and
Institutions Code or to enable the collection of expenditures for
medical assistance services pursuant to Part 5 (commencing with
Section 17000) of Division 9 of the Welfare and Institutions Code.
(i) To provide any law enforcement agency with the name, address,
telephone number, birth date, social security number, physical
description, and names and addresses of present and past employers,
of any victim, suspect, missing person, potential witness, or person
for whom a felony arrest warrant has been issued, when a request for
this information is made by any investigator or peace officer as
defined by Sections 830.1 and 830.2 of the Penal Code, or by any
federal law enforcement officer to whom the Attorney General has
delegated authority to enforce federal search warrants, as defined
under Sections 60.2 and 60.3 of Title 28 of the Code of Federal
Regulations, as amended, and when the requesting officer has been
designated by the head of the law enforcement agency and requests
this information in the course of and as a part of an investigation
into the commission of a crime when there is a reasonable suspicion
that the crime is a felony and that the information would lead to
relevant evidence. The information provided pursuant to this
subdivision shall be provided to the extent permitted by federal law
and regulations, and to the extent the information is available and
accessible within the constraints and configurations of existing
department records. Any person who receives any information under
this subdivision shall make a written report of the information to
the law enforcement agency that employs him or her, for filing under
the normal procedures of that agency.
(1) This subdivision shall not be construed to authorize the
release to any law enforcement agency of a general list identifying
individuals applying for or receiving benefits.
(2) The department shall maintain records pursuant to this
subdivision only for periods required under regulations or statutes
enacted for the administration of its programs.
(3) This subdivision shall not be construed as limiting the
information provided to law enforcement agencies to that pertaining
only to applicants for, or recipients of, benefits.
(4) The department shall notify all applicants for benefits that
release of confidential information from their records will not be
protected should there be a felony arrest warrant issued against the
applicant or in the event of an investigation by a law enforcement
agency into the commission of a felony.
(j) To provide public employee retirement systems in California
with information relating to the earnings of any person who has
applied for or is receiving a disability income, disability
allowance, or disability retirement allowance, from a public employee
retirement system. The earnings information shall be released only
upon written request from the governing board specifying that the
person has applied for or is receiving a disability allowance or
disability retirement allowance from its retirement system. The
request may be made by the chief executive officer of the system or
by an employee of the system so authorized and identified by name and
title by the chief executive officer in writing.
(k) To enable the Division of Labor Standards Enforcement in the
Department of Industrial Relations to seek criminal, civil, or
administrative remedies in connection with the failure to pay, or the
unlawful payment of, wages pursuant to Chapter 1 (commencing with
Section 200) of Part 1 of Division 2 of, and Chapter 1 (commencing
with Section 1720) of Part 7 of Division 2 of, the Labor Code.
() To enable federal, state, or local governmental departments or
agencies to administer child support enforcement programs under Title
IV of the Social Security Act (42 U.S.C. Sec. 651 et seq.).
(m) To provide federal, state, or local governmental departments
or agencies with wage and claim information in its possession that
will assist those departments and agencies in the administration of
the Victims of Crime Program or in the location of victims of crime
who, by state mandate or court order, are entitled to restitution
that has been or can be recovered.
(n) To provide federal, state, or local governmental departments
or agencies with information concerning any individuals who are or
have been:
(1) Directed by state mandate or court order to pay restitution,
fines, penalties, assessments, or fees as a result of a violation of
law.
(2) Delinquent or in default on guaranteed student loans or who
owe repayment of funds received through other financial assistance
programs administered by those agencies. The information released by
the director for the purposes of this paragraph shall not include
unemployment insurance benefit information.
(o) To provide an authorized governmental agency with any or all
relevant information that relates to any specific workers'
compensation insurance fraud investigation. The information shall be
provided to the extent permitted by federal law and regulations. For
the purposes of
this subdivision, "authorized governmental agency" means the
district attorney of any county, the office of the Attorney General,
the Department of Industrial Relations, and the Department of
Insurance. An authorized governmental agency may disclose this
information to the State Bar, the Medical Board of California, or any
other licensing board or department whose licensee is the subject of
a workers' compensation insurance fraud investigation. This
subdivision shall not prevent any authorized governmental agency from
reporting to any board or department the suspected misconduct of any
licensee of that body.
(p) To enable the Director of the Bureau for Private Postsecondary
and Vocational Education, or his or her representatives, to access
unemployment insurance quarterly wage data on a case-by-case basis to
verify information on school administrators, school staff, and
students provided by those schools who are being investigated for
possible violations of Chapter 7 (commencing with Section 94700) of
Part 59 of the Education Code.
(q) To provide employment tax information to the tax officials of
Mexico, if a reciprocal agreement exists. For purposes of this
subdivision, "reciprocal agreement" means a formal agreement to
exchange information between national taxing officials of Mexico and
taxing authorities of the State Board of Equalization, the Franchise
Tax Board, and the Employment Development Department. Furthermore,
the reciprocal agreement shall be limited to the exchange of
information that is essential for tax administration purposes only.
Taxing authorities of the State of California shall be granted tax
information only on California residents. Taxing authorities of
Mexico shall be granted tax information only on Mexican nationals.
(r) To enable city and county planning agencies to develop
economic forecasts for planning purposes. The information shall be
limited to businesses within the jurisdiction of the city or county
whose planning agency is requesting the information, and shall not
include information regarding individual employees.
(s) To provide the State Department of Developmental Services with
wage and employer information that will assist in the collection of
moneys owed by the recipient, parent, or any other legally liable
individual for services and supports provided pursuant to Chapter 9
(commencing with Section 4775) of Division 4.5 of, and Chapter 2
(commencing with Section 7200) and Chapter 3 (commencing with Section
7500) of Division 7 of, the Welfare and Institutions Code.
(t) Nothing in this section shall be construed to authorize or
permit the use of information obtained in the administration of this
code by any private collection agency.
(u) The disclosure of the name and address of an individual or
business entity that was issued an assessment that included penalties
under Section 1128 or 1128.1 shall not be in violation of Section
1094 if the assessment is final. The disclosure may also include any
of the following:
(1) The total amount of the assessment.
(2) The amount of the penalty imposed under Section 1128 or 1128.1
that is included in the assessment.
(3) The facts that resulted in the charging of the penalty under
Section 1128 or 1128.1.
(v) To enable the Contractors' State License Board to verify the
employment history of an individual applying for licensure pursuant
to Section 7068 of the Business and Professions Code.
(w) To provide any peace officer with the Division of
Investigation in the Department of Consumer Affairs information
pursuant to subdivision (i) when the requesting peace officer has
been designated by the Chief of the Division of Investigations and
requests this information in the course of and in part of an
investigation into the commission of a crime or other unlawful act
when there is reasonable suspicion to believe that the crime or act
may be connected to the information requested and would lead to
relevant information regarding the crime or unlawful act.
(x) To enable the Labor Commissioner of the Division of Labor
Standards Enforcement in the Department of Industrial Relations to
identify, pursuant to Section 90.3 of the Labor Code, unlawfully
uninsured employers. The information shall be provided to the extent
permitted by federal law and regulations.
(y) To enable the Chancellor of the California Community Colleges,
in accordance with the requirements of Section 84754.5 of the
Education Code, to obtain quarterly wage data, commencing January 1,
1993, on students who have attended one or more community colleges,
to assess the impact of education on the employment and earnings of
students, to conduct the annual evaluation of district-level and
individual college performance in achieving priority educational
outcomes, and to submit the required reports to the Legislature and
Governor. The information shall be provided to the extent permitted
by federal statutes and regulations.
(z) To provide information obtained in the administration and
enforcement of the California Health Insurance Purchasing Pool
Program (Division 1.2 (commencing with Section 4800)) to the Managed
Risk Medical Insurance Board for the purpose of administering the
California Health Care Reform and Cost Control Act.
SEC. 4. (a) Section 3.5 of this bill incorporates amendments to
Section 1095 of the Unemployment Insurance Code proposed by this bill
and AB 798. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2008, (2) each
bill amends Section 1095 of the Unemployment Insurance Code, (3) AB 8
is not enacted, or if enacted, does not amend Section 1095 of the
Unemployment Insurance Code, and (4) this bill is enacted after AB
798, in which case Section 1095 of the Unemployment Insurance Code,
as amended by AB 798, shall remain operative only until the operative
date of this bill, at which time Section 3.5 of this bill shall
become operative, and Section 3 of this bill shall not become
operative.
(b) Section 3.7 of this bill incorporates amendments to Section
1095 of the Unemployment Insurance Code proposed by this bill and AB
8. It shall only become operative if (1) both bills are enacted and
become effective on or before January 1, 2008, (2) each bill amends
Section 1095 of the Unemployment Insurance Code, (3) AB 789 is not
enacted, or if enacted, does not amend Section 1095 of the
Unemployment Insurance Code, and (4) this bill is enacted after AB 8,
in which case Section 1095 of the Unemployment Insurance Code, as
amended by AB 8, shall remain operative only until the operative date
of this bill, at which time Section 3.7 of this bill shall become
operative, and Section 3 of this bill shall not become operative.
(c) Section 3.9 of this bill incorporates amendments to Section
1095 of the Unemployment Insurance Code proposed by this bill, AB 8,
and AB 798. It shall only become operative if (1) all three bills are
enacted and become effective on or before January 1, 2008, (2) all
three bills amend Section 1095 of the Unemployment Insurance Code,
and (3) this bill is enacted after AB 8 and AB 798, in which case
Section 1095 of the Unemployment Insurance Code, as amended by AB 798
and AB 8, shall remain operative only until the operative date of
this bill, at which time Section 3.9 of this bill shall become
operative, and Section 3 of this bill shall not become operative.