BILL NUMBER: SB 912 AMENDED
BILL TEXT
AMENDED IN SENATE JANUARY 4, 2012
AMENDED IN SENATE APRIL 28, 2011
INTRODUCED BY Senator Lieu
FEBRUARY 18, 2011
An act to add Section 1099 to the Unemployment Insurance
Code, relating to employment. An act to repeal and add
Section 9600.5 of the Unemployment Insurance Code, relating to
employment.
LEGISLATIVE COUNSEL'S DIGEST
SB 912, as amended, Lieu. Employment Development
Department: wage reports: electronic access.
Employment Development Department: training expenditure reports.
Existing law requires the director of the Employment Development
Department to provide an annual report, no later than November 30, to
the Governor, the Legislature, and the California Workforce
Investment Board, regarding the training expenditures made by local
workforce investment boards in the prior fiscal year. Existing law
also requires that the department identify what expenditures qualify
as training expenditures, as specified.
This bill would remove this reporting requirement and instead
require the Employment Development Department to provide a report,
within 6 months after the end of the 2nd program year of the 2-year
period of availability for expenditure of federal Workforce
Investment Act of 1998 funds, to the Governor, the Legislature, and
the California Workforce Investment Board, regarding the training
expenditures made by local workforce investment boards in the prior 2
program years. This bill would also require the report to identify
the amount of any leveraged funds expended by the local workforce
investment boards for training services.
Existing law requires that information obtained by the Employment
Development Department in the administration of unemployment
insurance laws be kept confidential and for the exclusive use of the
director in the discharge of his or her duties, and this information
is not open to the public, except as specifically provided.
This bill would authorize the department to contract with a credit
reporting agency to provide a creditor, employer, or permissible
purpose entity, as defined, with secured electronic access to
employer-provided quarterly wage reports if certain requirements are
met. This bill would require that the department and any credit
reporting agency, creditor, employer, or permissible purpose entity
use this information only for specified purposes, and would require
the safeguarding of any information received. This bill would also
require termination of the contract, as provided, for any violation
of these requirements, and would authorize the contract to provide
for reimbursement to the department for any reasonable administrative
costs incurred.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 9600.5 of the
Unemployment Insurance Code is repealed.
9600.5. The director of the Employment Development Department
shall report annually to the Governor, the Legislature, and the
California Workforce Investment Board, no later than November 30,
regarding the training expenditures made by local workforce
investment boards in the prior fiscal year. The department shall
specify what expenditures qualify as training expenditures,
including, but not limited to, the price paid for classroom
instruction or other training opportunities, contracted services for
customized training and on-the-job training, development of training
materials, and supportive services, including case management, that
enable a participant to attend and complete training. The annual
report shall specify the total amount of federal funding provided to
the state and to each of the local workforce investment areas for the
adult and dislocated persons programs and the amount within each
program expended for training services.
SEC. 2. Section 9600.5 is added to the
Unemployment Insurance Code , to read:
9600.5. Beginning with the 2012 program year, the Employment
Development Department shall report to the Governor, the Legislature,
and the California Workforce Investment Board, within six months
after the end of the second program year of the two-year period of
availability for expenditure of federal Workforce Investment Act of
1998 funds, the training expenditures made by local workforce
investment boards in the prior two program years. The report shall
specify the total amount of federal funding provided to the state and
to each of the local workforce investment areas for the adult and
dislocated persons programs and the amount within each program
expended for training services, as defined in Section 14211. The
report shall also specify the amount of any leveraged funds, as
defined in Section 14211, expended by the local workforce investment
boards for training services.
SECTION 1. Section 1099 is added to the
Unemployment Insurance Code, to read:
1099. (a) Notwithstanding any other law, the department may
contract with one or more consumer reporting agencies to provide a
creditor, employer, or permissible purpose entity with secured
electronic access to employer-provided information relating to the
quarterly wages report submitted in accordance with this part. This
access shall be limited to wage reports and shall include at least
the preceding 16 calendar quarters, or more if available.
(b) For purposes of this section, the following definitions apply:
(1) "Consumer reporting agency" has the same meaning as that set
forth in the federal Fair Credit Reporting Act (15 U.S.C. 1681a(f)).
(2) "Creditor" has the same meaning as that set forth in the
federal Fair Debt Collection Practices Act (15 U.S.C. 1691a(e)).
(3) "Permissible purpose entity" means an entity with specified
purposes as authorized by the department.
(4) "Wage reports" 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.
(c) A creditor, employer, or permissible purpose entity shall
obtain written consent or an electronic signature equivalent from the
credit, employment, or other permitted purposes applicant prior to
electronically accessing any quarterly wage report of the applicant.
Any written or electronic signature equivalent consent from the
credit, employment, or other permitted purpose applicant shall be
signed and shall include each of the following:
(1) Specific notice that information concerning the individual's
wage and employment history shall be released to a consumer reporting
agency.
(2) Notice that the release is made for the sole purpose of
reviewing a specific application for credit, employment, or other
permitted purpose made by the individual.
(3) Notice that the files of the department containing information
concerning wage and employment history that is submitted by the
individual or his or her employers may be accessed.
(4) A listing of the parties authorized to receive the released
information.
(d) A consumer reporting agency, creditor, employer, or other
permissible purpose entity accessing information under this section
shall safeguard the confidentiality of any information received. A
consumer reporting agency, creditor, employer, or permitted purpose
entity shall use the information only to support a single transaction
for the user to satisfy its standard underwriting or eligibility
requirements or for those requirements imposed upon the user, and to
satisfy the user's obligations under applicable state or federal
laws, rules, or regulations.
(e) If a consumer reporting agency, creditor, employer, or
permitted purpose entity violates this section, the department shall,
upon 30 days written notice to the consumer reporting agency,
creditor, employer, or permitted purpose entity terminate the
contract established between the department and the consumer
reporting agency, or require the consumer reporting agency to
terminate the contract established between the consumer reporting
agency and the creditor, employer, or permitted purpose entity.
(f) The department shall establish minimum audit, security,
net-worth, and liability insurance standards, technical requirements,
and any other terms and conditions considered necessary in the
department's discretion to safeguard the confidentiality of the
information released and to otherwise serve the public interest. The
department shall also include, in coordination with any necessary
state agencies, necessary audit procedures to ensure that these rules
are followed.
(g) A contract with one or more consumer reporting agencies under
this section may provide for reimbursement to the department for any
reasonable administrative costs incurred.
(h) The department shall not provide wage and employment history
information to any consumer reporting agency until after the consumer
reporting agency or agencies under contract with the department pay
all development and other startup costs incurred by the state in
connection with the design, installation, and administration of
technological systems and procedures for the electronic-access
program.
(i) The release of any information under this section shall be for
a purpose authorized, and in the manner permitted, by the United
States Department of Labor and any subsequent rules or regulations
adopted by that department.