BILL NUMBER: AB 2433	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Ruskin

                        FEBRUARY 19, 2010

   An act to amend Section 1095 of the Unemployment Insurance Code,
relating to unemployment insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2433, as introduced, Ruskin. Unemployment insurance: use of
information for tax purposes.
   Existing law provides for the payment of unemployment compensation
benefits to eligible unemployed individuals, and requires that the
Employment Development Department implement the unemployment
insurance system in the state. Existing law authorizes the Director
of Employment Development to permit the use of information in his or
her possession for specified purposes, including, among other things,
to enable various government agencies and local governments to
maintain information and collect moneys, fines, and fees owed by
applicants for, or recipients of, unemployment compensation benefits.

   This bill would additionally authorize the director to release
specified employment tax information, in his or her possession to the
State Board of Equalization, that will assist in the administration
of tax programs.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  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) To provide the State Board of Equalization with employment tax
information that will assist in the administration of tax programs.
The information shall be limited to the exchange of employment tax
information essential for tax administration purposes to the extent
permitted by federal law and regulations.  
   (t) 
    (u)  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) 
    (v)  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) 
    (w)  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) 
    (x)  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 Investigation and
requests this information in the course of and as 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)
    (y)  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) 
    (z)  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 the Governor. The information shall be provided
to the extent permitted by federal statutes and regulations. 

   (z) 
    (aa)  To enable the Public Employees' Retirement System
to seek criminal, civil, or administrative remedies in connection
with the unlawful application for, or receipt of, benefits provided
under Part 3 (commencing with Section 20000) of Division 5 of Title 2
of the Government Code. 
   (aa) 
    (ab)  To enable the State Department of Education, the
University of California, the California State University, and the
Chancellor of the California Community Colleges, pursuant to the
requirements prescribed by the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), to obtain quarterly wage
data, commencing July 1, 2010, on students who have attended their
respective systems to assess the impact of education on the
employment and earnings of those students, to conduct the annual
analysis of district-level and individual district or postsecondary
education system performance in achieving priority educational
outcomes, and to submit the required reports to the Legislature and
the Governor. The information shall be provided to the extent
permitted by federal statutes and regulations.