BILL NUMBER: AB 604 CHAPTERED
BILL TEXT
CHAPTER 766
FILED WITH SECRETARY OF STATE SEPTEMBER 23, 1998
APPROVED BY GOVERNOR SEPTEMBER 22, 1998
PASSED THE ASSEMBLY AUGUST 27, 1998
PASSED THE SENATE AUGUST 26, 1998
AMENDED IN SENATE AUGUST 20, 1998
AMENDED IN SENATE JULY 14, 1998
AMENDED IN SENATE JUNE 30, 1998
AMENDED IN SENATE JULY 21, 1997
AMENDED IN ASSEMBLY MAY 12, 1997
AMENDED IN ASSEMBLY APRIL 28, 1997
AMENDED IN ASSEMBLY APRIL 16, 1997
INTRODUCED BY Assembly Members Kuykendall and Floyd
FEBRUARY 25, 1997
An act to amend Section 1094 of, and to add and repeal Section
1095.2 of, the Unemployment Insurance Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 604, Kuykendall. Employment Development Department.
Existing law provides that information obtained by the department
in the administration of the Unemployment Insurance Code is for the
exclusive use of the director in the discharge of his or her duties,
and is not open to the public except as may be specifically provided.
This bill would provide that an employee or his or her
representative may receive his or her wage information upon request.
The bill would, until July 1, 2002, authorize the disclosure of
wage information to private entities for the purpose of verifying
information provided by an individual in connection with a specific
credit transaction if certain conditions are met. It would provide
for civil penalties and civil actions for violations.
This bill would incorporate additional amendments to Section 1094
of the Unemployment Insurance Code proposed by AB 2017, if both bills
are enacted and this bill is enacted after AB 2017.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1094 of the Unemployment Insurance Code is
amended to read:
1094. (a) Except as otherwise specifically provided in this code,
the information obtained in the administration of this code shall be
for the exclusive use and information of the director in discharge
of his or her duties and shall not be open to the public, nor
admissible in evidence in any action or special proceeding, other
than one arising out of the provisions of this code, one arising out
of the provisions of Division 9 (commencing with Section 10000) of
the Welfare and Institutions Code to determine entitlement to, and
directly connected with and limited to the administration of, public
social services, or a proceeding to determine entitlement to, and
directly connected with and limited to the administration of, locally
provided general relief or assistance benefits or medical assistance
services. This information may be tabulated and published in
statistical form for the use and information of state departments and
the public, except that the name of the employing unit or of any
worker shall never be divulged in the course of the tabulation or
publication.
(b) Any employee or his or her representative may receive his or
her wage information upon written request by the employee. The
information shall be provided without charge.
SEC. 2. Section 1094 of the Unemployment Insurance Code is amended
to read:
1094. (a) Except as otherwise specifically provided in this code,
the information obtained in the administration of this code is
confidential, not open to the public, and shall be for the exclusive
use and information of the director in discharge of his or her
duties.
(b) The information released to authorized entities pursuant to
other provisions of the code shall not be admissible in evidence in
any action or special proceeding, other than one arising out of the
provisions of this code or one described in Section 1095.
(c) The information may be tabulated and published in statistical
form for use by federal, state, and local governmental departments
and agencies, and the public, except that the name of the employing
unit or of any worker shall never be divulged in the course of the
tabulation or publication.
(d) Wages as defined by Section 13009 and amounts required to be
deducted and withheld under Section 13020 shall not be disclosed
except as provided in Article 2 (commencing with Section 19542) of
Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation
Code.
(e) Any employee or his or her representative may receive his or
her wage information upon written request by the employee. The
information shall be provided without charge.
(f) Any person who knowingly accesses, uses, or discloses any
confidential information without authorization is in violation of
this section and is guilty of a misdemeanor.
SEC. 3. Section 1095.2 is added to the Unemployment Insurance
Code, to read:
1095.2. (a) Prior to implementing subdivisions (b) to (g),
inclusive, the department shall evaluate the best practices and
system weaknesses of similar programs in other states. This
evaluation shall be completed no later than July 1, 1999.
(b) The director may disclose wage information to private entities
for the purpose of verifying information provided by an individual
in connection with a specific credit transaction. The manner and
format in which this information shall be provided shall be
designated by the director. To protect the integrity of the
department's wage information, the private entity shall not have
direct on-line access to any of the department's automated data
bases. The wage information may be electronically requested by, or
furnished to, the private entity. The wage information shall be
furnished only if all of the following conditions are met:
(1) The individual to whom the information pertains provides
written consent to the disclosure in accordance with the Information
Practices Act of 1977 (Chapter 1 (commencing with Section 1798), of
Title 1.8, of Part 4, of Division 3, of the Civil Code) before the
information is released to the private entity.
(2) At a minimum the consent contains language disclosing the
following information:
(A) The consent to disclose is voluntary and not required by law.
(B) Refusal to consent to disclosure of state wage information
shall not be the basis for the denial of credit.
(C) If consent is granted, the individual's wage information shall
be released.
(D) The release shall be only for the specific transaction
identified in the individual's consent.
(E) The number of days the consent shall be valid following the
execution of the consent by the individual.
(F) The wage information reported to the state by the individual's
employers will be accessed.
(G) A statement indicating all of the parties who may receive the
information released.
(3) The release of the information is for a purpose authorized by,
and occurs in a manner permitted by, the United States Department of
Labor.
(4) The release of information must occur within the period set
forth within the written consent. The director shall designate the
maximum number of days for which the written consent shall be valid
following the execution of the consent by the individual.
(c) The private entity shall comply with all applicable duties and
obligations of a credit reporting agency arising under state or
federal law.
(d) The director shall establish minimum audit standards, security
standards, technological requirements, and any other terms or
conditions deemed necessary in the discretion of the director to
safeguard the confidentiality of the information released pursuant to
this section and to otherwise serve the public interest.
(e) The private entity shall, prior to the provision of any wage
information, pay all development and other startup costs incurred by
the state in connection with implementing systems and procedures for
disclosure of the wage information.
The private entity shall also pay a transaction fee in an amount
established by the director for providing this wage information.
Proceeds from the transaction fee shall be used to offset
expenditures for ongoing support of the disclosure of wage
information to the private entity, and the remainder shall be
deposited into a separate account and shall only be used for the
proper and efficient administration of the unemployment compensation
program as allowed by the United States Department of Labor.
(f) The private entity shall post a bond in an amount specified by
the director to indemnify the state from any and all liability
arising from the illegal, unauthorized, or otherwise inappropriate
use of the wage information released pursuant to this section.
(g) For purposes of this section, "wage information" means the
amount of wages reported by employers as earned by the individual
during the base period as defined in Section 1275, or any additional
periods as agreed to by the director, and the name or names and
address or addresses of record of the employers who paid those wages.
(h) Information obtained from the department by a private entity
pursuant to this section shall be used only to (1) verify the
accuracy of wage information previously provided to the creditor by
an individual in connection with a specific credit transaction, (2)
meet the private entity's or creditor's obligation under applicable
fair credit laws, and (3) satisfy standard underwriting requirements
imposed by the creditor or secondary market entities relating to that
specific credit transaction. Any other use of wage information
shall constitute a violation of this section.
(i) The private entity shall furnish to the individual to whom the
wage information pertains (1) a copy of wage information that was
furnished to any other entity, (2) an identification of all other
entities to which the information was furnished, and (3) an
explanation of the purpose for which the information was furnished.
(j) Any person or entity who violates any provision of this
section shall be subject to a civil penalty of up to five thousand
dollars ($5,000). In addition, any person who is injured by a
violation of this section may bring a civil action to recover
damages, attorney fees, and costs of suit.
(k) This section shall remain in effect only until July 1, 2002,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2002, deletes or extends that date.
SEC. 4. Section 2 of this bill incorporates amendments to Section
1094 of the Unemployment Insurance Code proposed by both this bill
and AB 2017. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 1999, (2) each
bill amends Section 1094 of the Unemployment Insurance Code, and (3)
this bill is enacted after AB 2017, in which case Section 1 of this
bill shall not become operative.