Senate Bill No. 1141

Introduced by Senator Hancock

February 20, 2014

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

LEGISLATIVE COUNSEL’S DIGEST

SB 1141, as introduced, Hancock. Unemployment insurance: use of information.

Under existing law, the information obtained in the administration of the Unemployment Insurance Code is for the exclusive use and information of the Director of Employment Development in the discharge of his or her duties and is not open to the public. However, existing law permits the use of the information for specified purposes, and allows the director to require reimbursement for direct costs incurred. Existing law provides that a person who knowingly accesses, uses, or discloses this confidential information without authorization is guilty of a misdemeanor.

This bill would require the Director of Employment Development to permit the use of any information in his or her possession to enable the Department of Corrections and Rehabilitation to obtain quarterly wage data of former inmates who have been incarcerated within the prison system in order to assess the impact of rehabilitation services or the lack of these services on the employment and earnings of these former inmates. By requiring this information to be provided to the Department of Corrections and Rehabilitation for these purposes, this bill would expand the crime of unauthorized access, use, or disclosure of this information, and would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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 begin insert federal end insert Social Security Act begin insert (42 U.S.C. Sec. 601 et
seq.) end insert , 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 begin insert Part D of end insert Title IV of the federal 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 Contractors’ State License Board, 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 begin delete the Bureau for Private
Postsecondary Education, end delete begin insert Consumer Affairs, end insert 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 8
(commencing with Section 94800) of Part 59 of Division 10 of
Title 3 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.

(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.

(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.

(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.

(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 begin delete Chief end delete begin insert chief end insert 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.

(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.

(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.

(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.

(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.

(ac) To provide the Agricultural Labor Relations Board with
employee, wage, and employer information, for use in the
investigation or enforcement of the
Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations
Act of 1975 (Part 3.5 (commencing with Section 1140) of Division
2 of the Labor Code). The information shall be provided to the
extent permitted by federal statutes and regulations.

(ad) (1) To enable the State Department of Health Care
Services, the California Health Benefit Exchange, the Managed
Risk Medical Insurance Board, and county departments and
agencies to obtain information regarding employee wages,
California employer names and account numbers, employer reports
of wages and number of employees, and disability insurance and
unemployment insurance claim information, for the purpose of:

(A) Verifying or determining the eligibility of an applicant for,
or a recipient of, state health subsidy programs, limited to the
Medi-Cal Program, provided pursuant to Chapter 7 (commencing
with Section 14000) of Part 3 of Division 9 of the Welfare and
Institutions Code; the Healthy Families Program, provided pursuant
to Part 6.2 (commencing with Section 12693) of Division 2 of the
Insurance Code; and the Access for Infants and Mothers Program,
provided pursuant to Part 6.3 (commencing with Section 12695)
of Division 2 of the Insurance Code; where the verification or
determination is directly connected with, and limited to, the
administration of the state health subsidy programs referenced in
this subparagraph.

(B) Verifying or determining the eligibility of an applicant for,
or a recipient of, federal subsidies offered through the California
Health Benefit Exchange, provided pursuant to Title 22
(commencing with Section 100500) of the Government Code,
including federal tax credits and cost-sharing assistance pursuant
to the federal Patient Protection and Affordable Care Act (Public
Law 111-148), as amended by the federal Health Care and
Education Reconciliation Act of 2010 (Public Law 111-152), where
the verification or determination is directly connected with, and
limited to, the administration of the California Health Benefit
Exchange.

(C) Verifying or determining the eligibility of employees and
employers for health coverage through the Small Business Health
Options Program, provided pursuant to Section 100502 of the
Government Code, where the verification or determination is
directly connected with, and limited to, the administration of the
Small Business Health Options Program.

(2) The information provided under this subdivision shall be
subject to the requirements of, and provided to the extent permitted
by, federal law and regulations, including Part 603 of Title 20 of
the Code of Federal Regulations.

(ae) To provide any peace officer with the Investigations
Division of the Department of Motor Vehicles with information
pursuant to subdivision (i), when the requesting peace officer has
been designated by the Chief of the Investigations Division and
requests this information in the course of, and as part of, an
investigation into identity theft, counterfeiting, document fraud,
or consumer fraud, and there is reasonable suspicion that the crime
is a felony and that the information would lead to relevant evidence
regarding the identity theft, counterfeiting, document fraud, or
consumer fraud. 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.

begin insert

(af) To enable the Department of Corrections and Rehabilitation
to obtain quarterly wage data of former inmates who have been
incarcerated within the prison system in order to assess the impact
of rehabilitation services or the lack of these services on the
employment and earnings of these former inmates. Quarterly data
for a former inmate’s employment status and wage history shall
be provided for a period of one year, three years, and five years
following release. The data shall only be used for the purpose of
tracking outcomes for former inmates in order to assess the
effectiveness of rehabilitation strategies on the wages and
employment histories of those formerly incarcerated. The
information shall be provided to the department to the extent not
prohibited by federal law.

end insert

SEC. 2.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.