BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
William W. Monning, Chair
Date of Hearing: June 12, 2013 2013-2014 Regular
Session
Consultant: Gideon L. Baum Fiscal:Yes
Urgency: No
Bill No: AB 908
Author: Bonilla
As Introduced/Amended: February 22, 2013
SUBJECT
Unemployment insurance: use of information.
KEY ISSUE
Should the Legislature allow the Employment Development
Department (EDD) to share information, as specified, with the
Department of Motor Vehicles (DMV) in order to assist identity
theft investigations?
ANALYSIS
Existing law vests the Employment Development Department (EDD)
with the responsibility of ensuring employers remit appropriate
Unemployment Insurance (UI) contributions and to collect the
employee wage deductions to the Disability Fund. EDD uses these
funds to finance the Unemployment Insurance and Disability
Insurance (DI) Programs.
(Unemployment Insurance Code �� 301, 976, 984, 1025-1037,
1555-1562, & 3001-3015)
Existing law also authorizes EDD to collect personal income
taxes required to be withheld by employers. (Unemployment
Insurance Code �� 13000 &13020)
Existing law requires that EDD collects appropriate data in
order to carry out the responsibilities listed above. This
information includes the employer's name and address, the number
and contact information of employees employed by an employer,
the wages paid to those employees, and any independent
contractors that have performed services for an employer.
(Unemployment Insurance Code �� 1085-1093)
Existing law requires that, unless specifically provided, the
information obtained in the administration of the UI Program and
DI program are confidential and must be used for the exclusive
use and information of the director of Employment Development
Department (EDD) in discharge of his or her duties. Any person
violating the confidentiality of this information is guilty of a
misdemeanor. (Unemployment Insurance Code �1094)
Existing law specifically provides that EDD may share with any
law enforcement agency 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:
1) A request for this information is made by any
investigator or peace officer; and
2) The investigator or peace officer is investigating a
specific felonious crime.
Information cannot be shared if doing so would violate federal
law or regulations.
(Unemployment Insurance Code �1095(i))
This bill would allow the Employment Development Department to
share information with a designated peace officer employed by
the Department of Motor Vehicles Investigations Division if:
1) The request is in the course of, and as part of, an
investigation into identity theft, counterfeiting, document
fraud, or consumer fraud, and
2) There is reasonable suspicion that the information
requested is relevant to the investigation and may lead to
other information regarding the identity theft,
counterfeiting, document fraud, or consumer fraud.
COMMENTS
Hearing Date: June 16, 2013 AB 908
Consultant: Gideon L. Baum Page 2
Senate Committee on Labor and Industrial Relations
1. Need for this bill?
As noted above, access to Employment Development Department
(EDD) wage information is highly restricted. Roughly
speaking, entities that have access to EDD wage data fall into
three categories. The first category is governmental agencies
that have access to EDD wage data because EDD is the sole
repository of the relevant evidence in an investigation, such
as the Department of Industrial Relations looking at wage
violations. The second category is the enforcement of tax law
by state and federal agencies. The third and final category
is law enforcement entities investigating serious crimes.
AB 908 seeks to expand the third category by allowing
Department of Motor Vehicle investigators to access EDD data
for investigations involving identity theft and consumer
fraud.
As noted by the author's office, identity theft and criminal
activity associated with it using the California driver
license or identification card has been a long-term and
growing problem facing the state and the public. Identity
theft costs American businesses and consumers a reported $50
billion a year, causing untold difficulties for an estimated
10 million U.S. victims annually. The author believes that AB
908 would assist the Department of Motor Vehicles in their
investigations of identity theft and counterfeiting.
2. Possible Amendments :
As discussed above, AB 908 is closely related to Unemployment
Insurance Code Section 1095(i). However, while AB 908
cross-references this subdivision, it does not directly echo
it. While unlikely, this could lead to an interpretation
where AB 908 deviates from existing law where no deviation is
unnecessary or sought. Specifically, AB 908 should be
clarified to explicitly state that it only applies with felony
investigations, inquiries must be documented, and inquiries
cannot violate federal law.
Hearing Date: June 16, 2013 AB 908
Consultant: Gideon L. Baum Page 3
Senate Committee on Labor and Industrial Relations
Therefore, the Committee may wish to consider the following
amendments:
On page 9, line 18, insert "crime is a felony and that the
information would lead to relevant evidence";
On page 9, line 18 and 19, strike "information requested is
relevant to the investigation and may lead to other
information";
On page 9, at the end of line 20, insert the following: 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 Investigations Division of the
Department of Motor Vehicles, for filing under the normal
procedures of that division.
3. Proponent Arguments :
Proponents argue that identity theft and criminal activity
with the usage of California driver license or identification
card is a long-term and growing threat to the people of
California. Proponents believe that AB 908 is a critical tool
to assist the Department of Motor Vehicle's Investigations
Division to investigate crimes associated with identity theft,
counterfeiting, and document or consumer fraud. Proponents
also argue that the additional information will allow for more
thorough and efficient investigations.
4. Opponent Arguments :
None on file.
5. Prior Legislation :
SB 691 (Lieu), Statutes of 2012, Chapter 832, permits the
Employment Development Department to share employment data and
information with the Contractors' State License Board for the
Hearing Date: June 16, 2013 AB 908
Consultant: Gideon L. Baum Page 4
Senate Committee on Labor and Industrial Relations
purposes of aiding any specific workers' compensation fraud
investigation and the Agricultural Labor Relations Board for
the enforcement of the Agricultural Labor Relations Act.
SUPPORT
California Peace Officers association (Sponsor)
California Statewide Law Enforcement Association
OPPOSITION
None on file.
Hearing Date: June 16, 2013 AB 908
Consultant: Gideon L. Baum Page 5
Senate Committee on Labor and Industrial Relations