BILL NUMBER: AB 2592 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 5, 2006
INTRODUCED BY Assembly Member Leno
FEBRUARY 24, 2006
An act to amend Sections 13995.20, 13995.40, 13995.49,
and 13995.54 13995.53, 13995.54, 13995.60, 13995.65,
and 13995.77 of the Government Code, to add Sections 7061
and 19559 to the Revenue and Taxation Code , and to amend
Section 1095 of the Unemployment Insurance Code, relating to
California tourism.
LEGISLATIVE COUNSEL'S DIGEST
AB 2592, as amended, Leno California Travel and Tourism
Commission.
Existing law, the California Tourism Marketing Act, provides for
the California Travel and Tourism Commission, a nonprofit mutual
benefit corporation, and provides for a 37-member board of the
commission, including 12 members appointed by the Governor and 24
elected members. The 12 appointed members are required to represent
the 12 officially designated tourism regions.
This bill would specify that each appointed member of the
commission shall represent only one of those designated tourism
regions. The bill would also specify that appointed members are not
limited to persons who are employed by or represent assessed
businesses. The bill would provide that elected commissioners shall
serve 4-year terms and that an appointed or elected commissioner
would cease to be a commissioner 90 days following the date on which
he or she ceases to meet the criteria for appointment or election as
a commissioner, except as specified.
Existing law authorizes the commission to accept voluntary
assessments from any person in a travel and tourism related business,
except persons whose primary business is gaming.
This bill would delete that exception.
Existing law authorizes the Secretary of Business,
Transportation and Housing to require assessed businesses, as
defined, to maintain specified books and records, to provide
requested information to the secretary, and to permit the secretary
to inspect those books and records.
This bill would authorize the secretary also to require
businesses that claim to be exempt from assessment to maintain
certain rec ords, to furnish information to the
secretary, and to permit the secretary to inspect those books and
records. The bill would also authorize the Board of Equalization, the
Franchise Tax Board, and the Employment Development Department to
permit the use of information by the secretary for the purpose of
identifying persons or businesses that may owe assessments. The bill
would make it a misdemeanor for persons associated with the Business,
Transportation and Housing Agency and the California Travel and
Tourism Commission to disclose or use the information, except as
provided. By creating a new crime and expanding an existing crime,
the bill would impose a state-mandated local program.
Existing law establishes procedures for imposing assessments
on businesses within various tourism industry categories or segments.
Existing law also exempts from assessment a small business,
defined as a business location with less than $1,000,000 in
California gross annual revenue.
This bill would also set forth specified methods by which a
business or person sharing common ownership, management, and control
of more than one assessed business may calculate the assessment. The
bill would also allow the exemption threshold amount to be lowered to
not less than $500,000 by referendum.
Existing law restricts the disclosure of information obtained
pursuant to the act by the Secretary of Business, Transportation and
Housing.
This bill would make that restriction applicable to the Business,
Transportation and Housing Agency.
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: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 13995.20 of the Government Code is amended to
read:
13995.20. Unless the context otherwise requires, the definitions
in this section govern the construction of this chapter.
(a) "Appointed commissioner" means a commissioner appointed by the
Governor pursuant to paragraph (2) of subdivision (b) of Section
13995.40.
(b) "Assessed business" means a person required to pay an
assessment pursuant to this chapter, and until the first assessment
is levied, any person authorized to vote for the initial referendum.
An assessed business shall not include a public entity or a
corporation when a majority of the corporation's board of directors
is appointed by a public official or public entity, or serves on the
corporation's board of directors by virtue of being elected to public
office, or both.
(c) "Commission" means the California Travel and Tourism
Commission.
(d) "Elected commissioner" means a commissioner elected pursuant
to subdivision (d) of Section 13995.40.
(e) "Industry category" means the following classifications within
the tourism industry:
(1) Accommodations.
(2) Restaurants and retail.
(3) Attractions and recreation.
(4) Transportation and travel services.
(f) "Industry segment" means a portion of an industry category.
For example, rental cars are an industry segment of the
transportation and travel services industry category.
(g) "Office" means the Office of Tourism, also popularly referred
to as the Division of Tourism, within the Business, Transportation
and Housing Agency.
(h) "Person" means an individual, public entity, firm,
corporation, association, or any other business unit, whether
operating on a for-profit or nonprofit basis.
(i) "Referendum" means any vote by mailed ballot of measures
recommended by the commission and approved by the secretary pursuant
to Section 13995.60, except for the initial referendum, which shall
consist of measures contained in the selection committee report,
discussed in Section 13995.30.
(j) "Secretary" means the Secretary of Business, Transportation
and Housing.
(k) "Selection Committee" means the Tourism Selection Committee
described in Article 3 (commencing with Section 13995.30).
SEC. 2. Section 13995.40 of the Government Code is amended to
read:
13995.40. (a) Upon approval of the initial referendum, the office
shall establish a nonprofit mutual benefit corporation named the
California Travel and Tourism Commission. The commission shall be
under the direction of a board of commissioners, which shall function
as the board of directors for purposes of the Nonprofit Corporation
Law.
(b) The board of commissioners shall consist of 37 commissioners
comprising the following:
(1) The secretary, who shall serve as chairperson.
(2) (A) Twelve members, who are professionally active in the
tourism industry, and whose primary business, trade, or profession is
directly related to the tourism industry, shall be appointed by the
Governor. Each appointed commissioner shall represent only one of the
12 tourism regions designated by the office, and the appointed
commissioners shall be selected so as to represent, to the greatest
extent possible, the diverse elements of the tourism industry.
Appointed commissioners are not limited to individuals who are
employed by or represent assessed businesses.
(B) If an appointed commissioner ceases to be professionally
active in the tourism industry or his or her primary business, trade,
or profession ceases to be directly related to the tourism industry,
he or she shall automatically cease to be an appointed commissioner
90 days following the date on which he or she ceases to meet both of
the eligibility criteria specified in subparagraph (A), unless the
commissioner becomes eligible again within that 90-day period.
(3) Twenty-four elected commissioners, including at least one
representative of a travel agency or tour operator that is an
assessed business.
(c) The commission established pursuant to Section 15364.52 shall
be inoperative so long as the commission established pursuant to this
section is in existence.
(d) Elected commissioners shall be elected by industry category in
a referendum. Regardless of the number of ballots received for a
referendum, the nominee for each commissioner slot with the most
weighted votes from assessed businesses within that industry category
shall be elected commissioner. In the event that an elected
commissioner resigns, dies, or is removed from office during his or
her term, the commission shall appoint a replacement from the same
industry category that the commissioner in question represented, and
that commissioner shall fill the remaining term of the commissioner
in question. The number of commissioners elected from each industry
category shall be determined by the weighted percentage of
assessments from that category.
(e) The secretary may remove any elected commissioner following a
hearing at which the commissioner is found guilty of abuse of office
or moral turpitude.
(f) (1) The term of each elected
commissioner shall commence January July
1 of the year next following his or her election, and shall
expire on December 31 June 30 of the
fourth year following his or her election. If an elected commissioner
ceases to be employed by or with an assessed business in the
category and segment which he or she was representing, his or her
term as an elected commissioner shall automatically terminate 90 days
following the date on which he or she ceases to be so employed,
unless, within that 90-day period, the commissioner again is employed
by or with an assessed business in the same category and segment.
(2) Terms of elected commissioners that would otherwise expire
effective December 31 of the year during which legislation adding
this subdivision is enacted shall automatically be extended until
June 30 of the following year.
(g) With the exception of the secretary, no commissioner shall
serve for more than two consecutive terms. For purposes of this
subdivision, the phrase "two consecutive terms" shall not include
partial terms.
(h) Except for the original commissioners, all commissioners shall
serve four-year terms. One-half of the commissioners originally
appointed or elected shall serve a two-year term, while the remainder
shall serve a four-year term. Every two years thereafter, one-half
of the commissioners shall be appointed or elected by referendum.
(i) The selection committee shall determine the initial slate of
candidates for elected commissioners. Thereafter the commissioners,
by adopted resolution, shall nominate a slate of candidates, and
shall include any additional candidates complying with the procedure
described in Section 13995.62.
(j) The commissioners shall elect a vice chairperson from the
elected commissioners.
(k) The commission may lease space from the office.
(l) The commission and the office shall be the official state
representatives of California tourism.
(m) All commission meetings shall be held in California.
(n) No person shall receive compensation for serving as a
commissioner, but each commissioner shall receive reimbursement for
reasonable expenses incurred while on authorized commission business.
(o) Assessed businesses shall vote only for commissioners
representing their industry category.
(p) Commissioners shall comply with the requirements of the
Political Reform Act of 1974 (Title 9 (commencing with Section
81000)). The Legislature finds and declares that commissioners
appointed or elected on the basis of membership in a particular
tourism segment are appointed or elected to represent and serve the
economic interests of those tourism segments and that the economic
interests of these members are the same as those of the public
generally.
(q) Commission meetings shall be subject to the requirements of
the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section
11120) of Chapter 1 of Part 1).
(r) The executive director of the commission shall serve as
secretary to the commission, a nonvoting position, and shall keep the
minutes and records of all commission meetings.
SEC. 3. Section 13995.49 of the Government Code is amended to
read:
13995.49. The commission may by written contract accept a
voluntary assessment from any person in a travel and tourism related
business who is not an assessed business. The contract shall apply
solely to the person in question and not to any other person in a
travel and tourism related business who that
is not an assessed business. The contract shall provide that
the voluntary assessment be proportionately equivalent to
the assessment that would be levied if the person were an assessed
business under this chapter, shall permit that business to vote on
any referendum conducted under this chapter as if that person were an
assessed business, and shall have a term concurrent with the
effective period of any referendum on which the person votes.
Individual voluntary assessments under this section shall be
enforceable only under the terms of the respective contracts to which
they pertain. This section shall not be construed to preclude
donations to, or cooperative marketing activities of any kind with,
the commission on the part of any person.
SEC. 4. Section 13995.53 of the
Government Code is amended to read:
13995.53. (a) The secretary may require
any and all assessed businesses to maintain books
and records that reflect their income or sales as reflected in the
assessment, and to furnish the secretary with any information that
may, from time-to-time, be requested by the secretary, and to permit
the inspection by the secretary of portions of books and records that
relate to the amount of assessment.
(b) The secretary may also require any business that claims to be
exempt from assessment pursuant to this chapter to maintain books and
records that reflect its income and sales, as well as its percentage
of income and sales that are tourism related, and to furnish the
secretary with any information that may, from time to time, be
requested by the secretary, and to permit the inspection by the
secretary of portions of its books and records that pertain to
whether the business is subject to assessment pursuant to this
chapter and, if so, the amount of any assessments owing.
SEC. 4. SEC. 5. Section 13995.54 of
the Government Code is amended to read:
13995.54. Information All information
pertaining to assessed businesses obtained by the secretary or
the Business, Transportation, and Housing Agency pursuant to this
chapter is confidential and shall not be subject to discovery,
is exempt from the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1), and shall
not be disclosed except to a person with the right to
obtain the information, any attorney hired by the secretary
who is employed to give legal advice upon it , or
by court order. Information obtained by the secretary in
order to determine the assessment level for an assessed business is
exempt from the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1).
SEC. 6. Section 13995.60 of the
Government Code is amended to read:
13995.60. (a) As used in this article and Article 7 (commencing
with Section 13995.65) , "assessment level" means the
estimated gross dollar amount received by assessment from all
assessed businesses on an annual basis, and "assessment formula"
means the allocation method used within each industry segment (for
example, percentage of gross revenue).
(b) Commencing on January 1, 2003, a referendum shall be called
every two years, and the commission, by adopted resolution, shall
determine the slate of individuals who will run for commissioner. The
resolution shall also cover, but not be limited to, the proposed
assessment level, based upon specified assessment formulae, together
with necessary information to enable each assessed business to
determine what its individual assessment would be. Commencing with
the referendum held in 2007 and every six years thereafter, the
resolution shall also cover the termination or continuation of the
commission. The resolution may also include an amended industry
segment allocation formula and the percentage allocation of
assessments between industry categories and segments. The commission
may specify in the resolution that a special, lower assessment rate
that was set pursuant to subdivision (c) of Section 13995.30 for a
particular business will no longer apply due to changes in the unique
circumstance that originally justified the lower rate. The
resolution may include up to three possible assessment levels, from
which the assessed businesses will select one assessment level by
plurality weighted vote.
(c) The commission shall deliver to the secretary the resolution
described in subdivision (b). The secretary shall call a referendum
containing the information required by subdivision (b) plus any
additional matters complying with the procedures of subdivision (b)
of Section 13995.62.
(d) When the secretary calls a referendum, all assessed businesses
shall be sent a ballot for the referendum. Every ballot that the
secretary receives by the ballot deadline shall be counted, utilizing
the weighted formula adopted initially by the selection committee,
and subsequently amended by referendum.
(e) If the referendum includes more than one possible assessment
rate, the rate with the plurality of weighted votes shall be adopted.
(f) Notwithstanding any other provision of this section, if the
commission delivers to the secretary a resolution pertaining to any
matter described in subdivision (b), the secretary shall call a
referendum at a time or times other than as specified in this
section. Each referendum shall contain only those matters contained
in the resolution.
(g) Notwithstanding any other provision of this section, the
secretary shall identify, to the extent reasonably feasible, those
businesses that would become newly assessed due to a change in
category, segment, threshold, or exemption status sought via
referendum, and provide those businesses the opportunity to vote in
that referendum.
SEC. 7. Section 13995.65 of the
Government Code is amended to read:
13995.65. (a) Each industry category shall establish a committee
to determine the following within its industry category: industry
segments, assessment formula for each industry segment, and any types
of business exempt from assessment. The initial segment committees
shall consist of the subcommittee for that category as described in
subdivision (d) of Section 13995.30. Following approval of the
assessment by referendum, the committees shall be selected by the
commission, based upon recommendations from the tourism industry.
Committee members need not be commission members.
(b) The committee recommendations shall be presented to the
commission or selection committee, as applicable. The selection
committee may adopt a resolution specifying some or all of the items
listed in subdivision (a), plus an allocation of the overall
assessment among industry categories. The commission may adopt a
resolution specifying one or more of the items listed in subdivision
(a), plus an allocation of the proposed assessment. The selection
committee and commission are not required to adopt the findings of
any committee.
(c) The initial industry category and industry segment allocations
shall be included in the selection committee report required by
subdivision (b) of Section 13995.30. Changes to the industry segment
allocation formula may be recommended to the commission by a segment
committee at the biennial commission meeting scheduled to approve the
referendum resolution pursuant to Section 13995.60. At the same
meeting, the commission may amend the percentage allocations among
industry categories. Any item discussed in this section that is
approved by resolution of the commission, except amendments to the
percentage allocations among industry categories, shall be placed on
the next referendum, and adopted if approved by the majority of
weighted votes cast.
(d) Upon approval by referendum, the office shall mail an
assessment bill to each assessed business. The secretary shall
determine how often assessments are collected, based upon available
staffing resources. The secretary may stagger the assessment
collection throughout the year, and charge businesses a prorated
amount of assessment because of the staggered assessment period. The
secretary and office shall not divulge the amount of assessment or
weighted votes of any assessed businesses, except as part of an
assessment action.
(e) An assessed business may appeal an assessment to the secretary
based upon the fact that the business does not meet the definition
established for an assessed business within its industry segment or
that the level of assessment is incorrect. An appeal brought under
this subdivision shall be supported by substantial evidence submitted
under penalty of perjury by affidavit or declaration as provided in
Section 2015.5 of the Code of Civil Procedure. If the error is based
upon failure of the business to provide the required information in a
timely manner, the secretary may impose a fee for reasonable costs
incurred by the secretary in correcting the assessment against the
business as a condition of correcting the assessment.
(f) Notwithstanding any other provision of law, an assessed
business may pass on some or all of the assessment to customers. An
assessed business that is passing on the assessment may, but shall
not be required to, separately identify or itemize the assessment on
any document provided to a customer. Assessments levied pursuant to
this chapter and passed on to customers are not part of gross
receipts or gross revenue for any purpose, including the calculation
of sales or use tax and income pursuant to any lease. However,
assessments that are passed on to customers shall be included in
gross receipts for purposes of income and franchise taxes.
(g) For purposes of calculating the assessment for a business with
revenue in more than one industry category or industry segment, that
business may elect to be assessed based on either of the following:
(1) The assessment methodology and rate of assessment applicable
to each category or segment, respectively, as it relates to the
revenue that it derives from that category or segment.
(2) With respect to its total revenue from all industry categories
or segments, the assessment methodology and rate of assessment
applicable to the revenue in the category and segment in which it
earns the most gross revenue.
(h) (1) A person sharing common ownership, management, or control
of more than one assessed business may elect to calculate,
administer, and pay the assessment owed by each business by any of
the following methods:
(A) Calculated on the basis of each individual business location.
(B) Calculated on the basis of each business, or each group of
businesses, possessing a single federal employer identification
number, regardless of the number of locations involved.
(C) Calculated on the basis of the average aggregate percentage of
tourism-related gross revenue received by all of the person's
businesses in a particular industry segment or industry category
during the period in question, multiplied by the total aggregate
tourism-related gross revenue received by all of the businesses, and
then multiplied by the appropriate assessment formula. For example,
if a person sharing common ownership, management, or control of more
than one assessed business in the retail industry segment calculates
that the average percentage of tourism-related gross revenue received
by all of its locations equals 6 percent during the period in
question, that person may multiply all of the gross revenue received
from all of those locations by 6 percent, and then multiply that
product by the applicable assessment formula.
(D) Calculated on any other basis authorized by the secretary.
(2) Except as the secretary may otherwise authorize, the methods
in subparagraphs (B), (C), or (D) shall not be used if the aggregate
assessments paid would be less than the total assessment revenues
that would be paid if the method in subparagraph (A) were used.
SEC. 8. Section 13995.77 of the
Government Code is amended to read:
13995.77. A business is exempt from the assessments provided for
in this chapter if any of the following apply:
(a) The business is a travel agency or tour operator that derives
less than 20 percent of its gross revenue annually from travel and
tourism occurring within the state. A travel agency or tour operator
that qualifies for this exemption may participate as an assessed
business by paying an assessment calculated on the same basis
applicable to other travel agencies or tour operators, respectively,
and by filing a written request with the secretary indicating its
desire to be categorized as an assessed business.
(b) The business is a small business. For purposes of this
section, "small business" means a business location with less than
$1,000,000 one million dollars ($1,000,000)
in total California gross annual revenue from all sources.
A business exempted pursuant to this subdivision may enter
into a contract for voluntary assessments pursuant to Section
13995.49 This threshold amount may be lowered
, but never to less than five hundred thousand dollars
($500,000), by means of a referendum conducted pursuant to Section
13995.60; however, the secretary may elect to forgo assessing a
business for which the expense incurred in collecting the assessment
is not commensurate with the assessment that would be collected
.
(c) The assessments provided for in this chapter shall not apply
to the revenue of regular route intrastate and interstate bus
service: provided, however, that this subdivision shall not be deemed
to exclude any revenue derived from bus service that is of a type
that requires authority, whether in the form of a certificate of
public convenience and necessity, or a permit, to operate as a
charter-party carrier of passengers pursuant to Chapter 8 (commencing
with Section 5351) of Division 2 of the Public Utilities Code.
(d) Any business exempted pursuant to this section may enter into
a contract for voluntary assessments pursuant to Section 13995.49.
SEC. 9. Section 7061 is added to the
Revenue and Taxation Code , to read:
7061. (a) Subject to the limitations of this section, the board
shall permit the use of information in its possession by the
Secretary of Business, Transportation and Housing for the purpose of
identifying persons or businesses that may owe assessments pursuant
to Chapter 1 (commencing with Section 13995) of Part 4.7 of Division
3 of Title 2 of the Government Code, and for the purpose of
collecting those assessments. The board shall take reasonable steps
to identify, collect, and present the information in a format usable
by the Secretary of Business, Transportation and Housing, and it may
require reimbursement for direct costs incurred in providing the
information. That information shall include, but not be limited to,
all of the following:
(1) The names and addresses or other identification or location
information from sales and use tax returns or other records required
under Part 1 (commencing with Section 6051) of Division 2, for the
purposes of establishing and maintaining an accurate list of
businesses to be assessed pursuant to Chapter 1 (commencing with
Section 13995) of Part 4.7 of Division 3 of Title 2 of the Government
Code.
(2) Financial data from sales and use tax returns for purposes of
verifying the basis upon which the assessment is determined.
(b) Neither the Business, Transportation and Housing Agency, nor
its agents, nor any of its current or former officers or employees,
nor any current or former members, employees, or agents of the
California Travel and Tourism Commission shall disclose or use the
information, except as provided in this section. A violation of this
subdivision is a misdemeanor.
SEC. 10. Section 19559 is added to the
Revenue and Taxation Code , to read:
19559. (a) Subject to the limitations of this section and federal
law, the Franchise Tax Board shall permit the use of information in
its possession by the Secretary of Business, Transportation and
Housing for the purpose of identifying persons or businesses that may
owe assessments pursuant to Chapter 1 (commencing with Section
13995) of Part 4.7 of Division 3 of Title 2 of the Government Code,
and for the purpose of collecting those assessments. The board shall
take reasonable steps to identify, collect, and present the
information in a format usable by the Secretary of Business,
Transportation and Housing, and it may require reimbursement for
direct costs incurred in providing the information. That information
shall include, but not be limited to, all of the following:
(1) The names and addresses or other identification or location
information from income and franchise tax returns or other records
required under Part 1 (commencing with Section 6051) of Division 2,
for the purposes of establishing and maintaining an accurate list of
businesses to be assessed pursuant to Chapter 1 (commencing with
Section 13995) of Part 4.7
of Division 3 of Title 2 of the Government Code.
(2) Financial data from income and franchise tax returns for
purposes of verifying the basis upon which the assessment is
determined.
(b) Neither the Business, Transportation and Housing Agency, nor
its agents, nor any of its current or former officers or employees,
nor any current or former members, employees, or agents of the
California Travel and Tourism Commission shall disclose or use the
information, except as provided in this section. A violation of this
subdivision is a misdemeanor.
SEC. 11. 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 Social Security Act, 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
Title IV of the 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 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 the Bureau for Private Postsecondary
and Vocational Education, 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 7 (commencing with Section 94700) of
Part 59 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) 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.
(u) 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.
(v) 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.
(w) 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 Investigations and
requests this information in the course of and in 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.
(x) To enable the Secretary of Business, Transportation and
Housing to identify persons or businesses that may owe assessments
pursuant to Chapter 1 (commencing with Section 13995) of Part 4.7 of
Division 3 of Title 2 of the Government Code, and to collect those
assessments.
SEC. 12. 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.