BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 908
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                AB 908 (Bonilla) - As Introduced:  February 22, 2013 

          Policy Committee:                              InsuranceVote:13  
          - 0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill permits the Employment Development Department (EDD) to  
          share information with the Department of Motor Vehicles (DMV).   
          Specifically, this bill:  

          1)Permits EDD to share information with peace officers employed  
            by the DMV Investigations Division.

          2)Requires that DMV only request information from EDD as part of  
            an investigation into identity theft, counterfeiting, document  
            fraud, or consumer fraud when there is a reasonable suspicion  
            the information requested is relevant to the investigation.

           FISCAL EFFECT  

          Costs associated with this legislation should be minor and  
          absorbable within existing resources.

           COMMENTS  

           1)Rationale  . The purpose of this legislation is to allow DMV  
            investigators access to EDD's Unemployment Insurance data in  
            the event that data is relevant to an investigation concerning  
            identity theft or a related crime. The author argues that  
            identity theft and criminal activity associated with it using  
            driver's licenses or identification cards has been a long-term  
            and growing problem facing the state and the public.  

            The author contends it is critical that the DMV utilize every  
            investigative tool available to investigate crimes associated  
            with identity theft, counterfeiting, and document or consumer  








                                                                  AB 908
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            fraud. 

           2)Background  . Under current law, EDD provides access to its  
            records to numerous state and local government agencies for  
            specific purposes.  This is accomplished through a  
            multifaceted system of specifically tailored agreements, which  
            set forth the guidelines and limits for access.  EDD uses a  
            number of security mechanisms to insure only authorized  
            individuals gain access to this information.

           3)Related Legislation  . Several similar bills have been enacted  
            in recent years.  For example:

             a)   AB 174 (Monning), Statutes of 2012, allowed the State  
               Department of Health Care Services, the California Health  
               Benefit Exchange, the Managed Risk Medical Insurance Board,  
               and county departments and agencies access to EDD records.   


             b)   SB 691 (Lieu), Statutes of 2012, allowed the  
               Contractors' State License Board and the Agricultural Labor  
               Relations Board access to EDD records.  


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081