Amended in Senate August 19, 2016

Amended in Senate June 15, 2016

Amended in Assembly April 14, 2016

Amended in Assembly March 15, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1996

Introduced by Assembly Member Gordon

February 16, 2016

An act to begin delete amend Section 94874 end delete begin insert add and repeal Section 94874.4 end insert of the Education Code, and to amend Section 1095 of, and to add Section 14018 to, the Unemployment Insurance Code, relating to private postsecondary education.

LEGISLATIVE COUNSEL’S DIGEST

AB 1996, as amended, Gordon. Private postsecondary education: exemptions.

Existing law, the California Private Postsecondary Education Act of 2009, provides, among other things, for student protections and regulatory oversight of private postsecondary institutions in the state. The act is enforced by the Bureau for Private Postsecondary Education within the Department of Consumer Affairs. The act exempts an institution from its provisions if any of a list of specific criteria are met.

This bill would begin delete exempt JobTrain, Inc. end delete begin insert exempt, until January 1, 2022, an institution end insert from the act if it maintains its status as a nonprofit institution that is accredited by the Accrediting Commission for Schools, Western Association of Schools and Colleges, begin insert has operated continuously in California for at least 50 years as a nonprofit entity, as specified, end insert does not award degrees or diplomas, begin delete and end delete is paid from state or federal student financial aid programs for fewer than 20% of its students who receive vocational begin delete training. The bill would also make nonsubstantive changes in the provision that relates to exemptions from the act. end delete begin insert training, and previously had an exemption from the bureau and did not utilize a specified pathway under the act. end insert

Existing law requires the Employment Development Department within the Labor and Workforce Development Agency to administer various programs, including the state unemployment and disability compensation programs, and perform duties relating to income tax withholding, which require the furnishment of social security numbers of employees or other individuals. Existing law also deems the California Workforce Development Board responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce.

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.

This bill would require the Employment Development Department, in conjunction with the California Workforce Development Board, to annually collect specified information from begin delete JobTrain, Inc., end delete begin insert an institution meeting specified requirements, end insert and provide a report to the Bureau for Private Postsecondary Education. The bill would also require the Employment Development Department to make the report available on the searchable CalJOBS Web site, through the training and education providers link on the Internet Web site, for begin delete JobTrain, Inc. end delete begin insert the institution about which the report was made. end insert This bill would require the Director of Employment Development to permit the use of information collected, as specified.

begin delete

This bill would make legislative findings and declarations as to the necessity of a special statute for JobTrain, Inc.

end delete

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

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 94874.4 is added to the end insert begin insert Education Code end insert begin insert ,
to read: end insert

begin insert

begin insert 94874.4. end insert   

(a) (1) Except as provided in Sections 94874.2 and
94874.7, an institution that meets all of the requirements of
paragraph (2) is exempt from this chapter.

(2) It maintains its status as a nonprofit institution that is
accredited by the Accrediting Commission for Schools, Western
Association of Schools and Colleges; as of January 1, 2016, it has
operated continuously in California for at least 50 years as a
nonprofit entity in accordance with Section 501(c)(3) of the federal
Internal Revenue Code and not as a private foundation as defined
in Section 509(a) of the federal Internal Revenue Code; it does
not award degrees or diplomas; it is paid from state or federal
student financial aid programs for fewer than 20 percent of its
students who receive vocational training; and it previously had
an exemption from the bureau and did not utilize the pathway
provided in Section 94874.8.

(b) This section shall remain in effect only until January 1, 2022,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2022, deletes or extends that date.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1095 of the end insert begin insert Unemployment Insurance Code end insert begin insert ,
as amended by Section 277 of Chapter 31 of the Statutes of 2016,
is amended to read: end insert

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 governmental 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
Subchapter IV of the federal Social Security Act (42 U.S.C. Sec.
601 et seq.), when 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, when 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 Part D of 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 Consumer Affairs, 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 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.

(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, 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, when 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), when
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, when 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.

(af) Until January 1, 2020, to enable the Department of Finance
to prepare and submit the report required by Section 13084 of the
Government Code that identifies all employers in California that
employ 100 or more employees who receive benefits from the
Medi-Cal program (Chapter 7 (commencing with Section 14000)
of Part 3 of Division 9 of the Welfare and Institutions Code). The
information used for this purpose shall be limited to information
obtained pursuant to Section 11026.5 of the Welfare and
Institutions Code and from the administration of personal income
tax wage withholding pursuant to Division 6 (commencing with
Section 13000) and the disability insurance program and may be
disclosed to the Department of Finance only for the purpose of
preparing and submitting the report and only to the extent not
prohibited by federal law.

(ag) To provide, to the extent permitted by federal law and
regulations, the Student Aid Commission with wage information
in order to verify the employment status of an individual applying
for a Cal Grant C award pursuant to subdivision (c) of Section
69439 of the Education Code.

(ah) 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.

(ai) To enable federal, state, or local government departments
or agencies, or their contracted agencies, subject to federal law,
including the confidentiality, disclosure, and other requirements
set forth in Part 603 of Title 20 of the Code of Federal Regulations,
to evaluate, research, or forecast the effectiveness of public social
services programs administered pursuant to Division 9
(commencing with Section 10000) of the Welfare and Institutions
Code, or Part A of Subchapter IV of Chapter 7 of the federal Social
Security Act (42 U.S.C. Sec. 601 et seq.), when the evaluation,
research, or forecast is directly connected with, and limited to, the
administration of the public social services programs.

(aj) To enable the California Workforce Development Board,
the Chancellor of the California Community Colleges, the
Superintendent of Public Instruction, the Department of
Rehabilitation, the State Department of Social Services, the Bureau
for Private Postsecondary Education, the Department of Industrial
Relations, the Division of Apprenticeship Standards, and the
Employment Training Panel to access any relevant quarterly wage
data necessary for the evaluation and reporting of their respective
program performance outcomes as required and permitted by
various state and federal laws pertaining to performance
measurement and program evaluation under the federal Workforce
Innovation and Opportunity Act (Public Law 113-128); the
workforce performance metrics dashboard pursuant to paragraph
(1) of subdivision (i) of Section 14013; the Adult Education Block
Grant Program consortia performance metrics pursuant to Section
84920 of the Education Code; the economic and workforce
development program performance measures pursuant to Section
88650 of the Education Code; and the California Community
Colleges Economic and Workforce Development Program
performance measures established in Part 52.5 (commencing with
Section 88600) of Division 7 of Title 3 of the Education Code.

begin insert

(ak) To enable the California Workforce Development Board
to collect information from an institution that meets all of the
requirements of paragraph (2) of subdivision (a) of Section 94874.4
of the Education Code and provide a report to the Bureau for
Private Postsecondary Education on the information described in
Section 14018, and to make the report available on the searchable
CalJOBS Web site.

end insert

begin delete

SECTION 1.  

Section 94874 of the Education Code is amended
to read:

94874.  

Except as provided in Section 94874.2, all of the
following are exempt from this chapter:

(a) An institution that offers solely avocational or recreational
educational programs.

(b) (1) An institution offering educational programs sponsored
by a bona fide trade, business, professional, or fraternal
organization, solely for that organization’s membership.

(2) (A) Except as provided in subparagraph (B), a bona fide
organization, association, or council that offers preapprenticeship
training programs, on behalf of one or more Division of
Apprenticeship Standards-approved labor-management
apprenticeship programs that satisfies one of the following
conditions:

(i) It is not on the Eligible Training Provider List established
and maintained by the California Workforce Development Board,
but has met the requirements for placement on the list.

(ii) It is on the Eligible Training Provider List established and
maintained by the California Workforce Development Board, and
meets the requirements for continued listing.

(B) If an organization, association, or council has been removed
from the Eligible Training Provider List established and maintained
by the California Workforce Development Board for failure to
meet performance standards, it is not exempt until it meets all
applicable performance standards.

(c) A postsecondary educational institution established, operated,
and governed by the federal government or by this state or its
political subdivisions.

(d) An institution solely offering either of the following:

(1) Test preparation for examinations required for admission to
a postsecondary educational institution.

(2) Continuing education or license examination preparation,
if the institution or the program is approved, certified, or sponsored
by any of the following:

(A) A government agency, other than the bureau, that licenses
persons in a particular profession, occupation, trade, or career field.

(B) A state-recognized professional licensing body, such as the
State Bar of California, that licenses persons in a particular
profession, occupation, trade, or career field.

(C) A bona fide trade, business, or professional organization.

(e) (1) An institution owned, controlled, and operated and
maintained by a religious organization lawfully operating as a
nonprofit religious corporation pursuant to Part 4 (commencing
with Section 9110) of Division 2 of Title 1 of the Corporations
Code, that meets all of the following requirements:

(A) The instruction is limited to the principles of that religious
organization, or to courses offered pursuant to Section 2789 of the
Business and Professions Code.

(B) The diploma or degree is limited to evidence of completion
of that education.

(2) An institution operating under this subdivision shall offer
degrees and diplomas only in the beliefs and practices of the
church, religious denomination, or religious organization.

(3) An institution operating under this subdivision shall not
award degrees in any area of physical science.

(4) Any degree or diploma granted under this subdivision shall
contain on its face, in the written description of the title of the
degree being conferred, a reference to the theological or religious
aspect of the degree’s subject area.

(5) A degree awarded under this subdivision shall reflect the
nature of the degree title, such as “associate of religious studies,”
“bachelor of religious studies,” “master of divinity,” or “doctor of
divinity.”

(f) An institution that does not award degrees and that solely
provides educational programs for total charges of two thousand
five hundred dollars ($2,500) or less when no part of the total
charges is paid from state or federal student financial aid programs.
The bureau may adjust this cost threshold based upon the California
Consumer Price Index, and post notification of the adjusted cost
threshold on its Internet Web site, as the bureau determines,
through the promulgation of regulations, that the adjustment is
consistent with the intent of this chapter.

(g) A law school that is accredited by the Council of the Section
of Legal Education and Admissions to the Bar of the American
Bar Association or a law school or law study program that is
subject to the approval, regulation, and oversight of the Committee
of Bar Examiners, pursuant to Sections 6046.7 and 6060.7 of the
Business and Professions Code.

(h) A nonprofit public benefit corporation that satisfies all of
the following criteria:

(1) Is qualified under Section 501(c)(3) of the United States
Internal Revenue Code.

(2) Is organized specifically to provide workforce development
or rehabilitation services.

(3) Is accredited by an accrediting organization for workforce
development or rehabilitation services recognized by the
Department of Rehabilitation.

(i) An institution that is accredited by the Accrediting
Commission for Senior Colleges and Universities, Western
Association of Schools and Colleges, or the Accrediting
Commission for Community and Junior Colleges, Western
Association of Schools and Colleges.

(j) JobTrain, Inc., if it maintains its status as a nonprofit
institution that is accredited by the Accrediting Commission for
Schools, Western Association of Schools and Colleges, and does
not award degrees or diplomas, and is paid from state or federal
student financial aid programs for fewer than 20 percent of its
students who receive vocational training.

(k) An institution that satisfies all of the following criteria:

(1) The institution has been accredited, for at least 10 years, by
an accrediting agency that is recognized by the United States
Department of Education.

(2) The institution has operated continuously in this state for at
least 25 years.

(3) During its existence, the institution has not filed for
bankruptcy protection pursuant to Title 11 of the United States
Code.

(4) The institution’s cohort default rate on guaranteed student
loans does not exceed 10 percent for the most recent three years,
as published by the United States Department of Education.

(5) The institution maintains a composite score of 1.5 or greater
on its equity, primary reserve, and net income ratios, as provided
under Section 668.172 of Title 34 of the Code of Federal
Regulations.

(6) The institution provides a pro rata refund of unearned
institutional charges to students who complete 75 percent or less
of the period of attendance.

(7) The institution provides to all students the right to cancel
the enrollment agreement and obtain a refund of charges paid
through attendance at the second class session, or the 14th day
after enrollment, whichever is later.

(8) The institution submits to the bureau copies of its most recent
IRS Form 990, the institution’s Integrated Postsecondary Education
Data System Report of the United States Department of Education,
and its accumulated default rate.

(9) The institution is incorporated and lawfully operates as a
nonprofit public benefit corporation pursuant to Part 2
(commencing with Section 5110) of Division 2 of Title 1 of the
Corporations Code, and is not managed or administered by an
entity for profit.

(l) Flight instruction providers or programs that provide flight
instruction pursuant to Federal Aviation Administration regulations
and meet both of the following criteria:

(1) The flight instruction provider or program does not require
students to enter into written or oral contracts of indebtedness.

(2) The flight instruction provider or program does not require
or accept prepayment of instruction-related costs in excess of two
thousand five hundred dollars ($2,500).

SEC. 2.  

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 governmental 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 federal Social Security Act (42 U.S.C. Sec. 601 et
seq.), when 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, when 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 Part D of 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 Consumer Affairs, 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 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.

(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, 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, when 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), when
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, when 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.

(af) Until January 1, 2020, to enable the Department of Finance
to prepare and submit the report required by Section 13084 of the
Government Code that identifies all employers in California that
employ 100 or more employees who receive benefits from the
Medi-Cal program (Chapter 7 (commencing with Section 14000)
of Part 3 of Division 9 of the Welfare and Institutions Code). The
information used for this purpose shall be limited to information
obtained pursuant to Section 11026.5 of the Welfare and
Institutions Code and from the administration of personal income
tax wage withholding pursuant to Division 6 (commencing with
Section 13000) and the disability insurance program and may be
disclosed to the Department of Finance only for the purpose of
preparing and submitting the report and only to the extent not
prohibited by federal law.

(ag) To provide, to the extent permitted by federal law and
regulations, the Student Aid Commission with wage information
in order to verify the employment status of an individual applying
for a Cal Grant C award pursuant to subdivision (c) of Section
69439 of the Education Code.

(ah) 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.

(ai) To enable federal, state, or local government departments
or agencies, or their contracted agencies, subject to federal law,
including the confidentiality, disclosure, and other requirements
set forth in Part 603 of Title 20 of the Code of Federal Regulations,
to evaluate, research, or forecast the effectiveness of public social
services programs administered pursuant to Division 9
(commencing with Section 10000) of the Welfare and Institutions
Code, or Part A of Subchapter IV of Chapter 7 of the federal Social
Security Act (42 U.S.C. Sec. 601 et seq.), when the evaluation,
research, or forecast is directly connected with, and limited to, the
administration of the public social services programs.

(aj) To enable the California Workforce Development Board
to collect information from JobTrain, Inc., and provide a report to
the Bureau for Private Postsecondary Education on the information
described in Section 14018, and to make the report available on
the searchable CalJOBS Web site.

end delete

SEC. 3.  

Section 14018 is added to the Unemployment Insurance
Code, to read:

14018.  

(a) The Employment Development Department, in
conjunction with the California Workforce Development Board,
shall annually collect information from begin delete JobTrain, Inc., end delete begin insert an
institution that meets all of the requirements of paragraph (2) of
subdivision (a) of Section 94874.4 of the Education Code, end insert and
provide a report to the Bureau for Private Postsecondary Education
on the following:

(1) The number of students enrolled in begin delete JobTrain, Inc., end delete begin insert an
institution that meets all of the requirements of paragraph (2) of
subdivision (a) of Section 94874.4 of the Education Code, end insert and the
number that have completed their respective training begin delete program end delete
begin insert programs end insert offered by begin delete JobTrain, Inc. end delete begin insert that institution. end insert

(2) The number of students attaining training from begin delete JobTrain,
Inc., end delete begin insert an institution that meets all of the requirements of paragraph
(2) of subdivision (a) of Section 94874.4 of the Education Code, end insert
using funds made available pursuant to the federal Workforce
Innovation and Opportunity Act of 2014.

(3) The skills or competency attained through their respective
program offered by begin delete JobTrain, Inc., end delete begin insert an institution that meets all of
the requirements of paragraph (2) of subdivision (a) of Section
94874.4 of the Education Code, end insert and subsequent employment
placement and retention information, including income.

(b) To the extent permitted by federal law and to the extent that
individually identifiable information is not made available, the
Employment Development Department shall make the report
available on the searchable CalJOBS web site, through the training
and education providers link on the Internet Web site, for begin delete JobTrain,
Inc. end delete begin insert an institution that meets all of the requirements of paragraph
(2) of subdivision (a) of Section 94874.4 of the Education Code. end insert

begin delete

SEC. 4.  

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances surrounding
JobTrain, Inc.

end delete