BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Senator Ben Hueso, Chair
Date of Hearing: March 26, 2014 2013-2014 Regular
Session
Consultant: Alma Perez-Schwab Fiscal:Yes
Urgency: No
Bill No: SB 1141
Author: Hancock
As Introduced/Amended: February 20, 2014
SUBJECT
Unemployment insurance: use of information
KEY ISSUE
Should the Legislature give the Department of Corrections and
Rehabilitation access to quarterly wage data of former inmates
who have been incarcerated within the prison system in order to
assess the impact of rehabilitation services?
ANALYSIS
Existing law provides for the Unemployment Insurance (UI)
program, a federal-state program administered by the Employment
Development Department (EDD), which provides weekly unemployment
insurance payments for workers who lose their job through no
fault of their own.
Existing law requires every employer to keep and report to EDD
true and accurate work records of, among other things, all of
his/her workers and their status (i.e., employed, on layoff or
leave of absence), the wages paid to each worker, and other such
information that the director of EDD deems necessary for
administration of its programs. (Unemployment Insurance Code
�1085)
Under existing law , the EDD has the possession and control of,
among other things, all records and papers held in the
performance of the duties, powers, purposes, responsibilities,
and jurisdiction that are vested in EDD. (UI Code �301.6) A
person who knowingly accesses, uses, or discloses this
confidential information without authorization is guilty of a
misdemeanor.
However, the director of EDD can permit the use of any
information in his/her possession to the extent necessary for
specified purposes and may require reimbursement for all direct
costs incurred in providing any and all information specified,
with some exceptions.
Among others, existing law currently allows EDD to share
information for the following:
1. To provide any law enforcement agency with identifiable
information and work history of a victim, suspect, missing
person, potential witness, or persons with pending
warrants.
2. To provide public employee retirement systems in CA with
information relating to the earnings of any person who has
applied for or is receiving an income or allowance.
3. To enable the Division of Labor Standards Enforcement to
seek criminal, civil or administrative remedies in
connection with the failure to pay wages.
4. To enable federal, state or local governmental
departments or agencies to administer child support
enforcement programs.
5. To enable the State Department of Education, the
University of California, the CA State University, and the
Chancellor of the CA Community Colleges to obtain quarterly
wage data on students who have attended their respective
systems to assess the impact of education on the employment
and earnings of those students.
This Bill would require the director of EDD to additionally
permit 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
Hearing Date: March 26, 2014 SB 1141
Consultant: Alma Perez-Schwab Page 2
Senate Committee on Labor and Industrial Relations
impact of rehabilitation services [or the lack of] on the
employment and earnings of former inmates. Specifically, the
bill would require quarterly data for a former inmate's
employment status and wage history for a period of one year,
three years, and five years following release.
COMMENTS
1. Need for this bill?
Currently, all information obtained in the execution of
administering the Employment Development Department's programs
is not open to the public. However, existing law allows the
use of the information with authorization for specified
purposes. Some of the state agencies that are currently
allowed access to quarterly wage information from EDD are the
Division of Labor Standards Enforcement, Department of
Consumer Affairs, State Board of Equalization, Franchise Tax
Board, State Department of Developmental Services,
Contractor's State License Board, Public Employees' Retirement
System, among others.
This bill would additionally extend access to this information
to the California Department of Corrections and Rehabilitation
to assess the impact of rehabilitation services on the
employment and earnings of former inmates.
2. Proponent Arguments :
According to the author, this bill would require that EDD
allow access of quarterly wage data of former inmates to the
Department of Corrections and Rehabilitation to assess the
impact of rehabilitation services on the employment and
earnings of these former inmates. The goal of prison
rehabilitation programs is to not only decrease the overall
prison population, but also to release productive citizens out
into society. With access to wage and employment data of
former inmates, the author argues, CDCR will be able to assess
which rehabilitation programs are successful or unsuccessful
in training inmates for future employment. If the data shows a
Hearing Date: March 26, 2014 SB 1141
Consultant: Alma Perez-Schwab Page 3
Senate Committee on Labor and Industrial Relations
large number of former inmates work in a certain labor sector
after being released from prison, CDCR can increase job
training in order to provide inmates with useful training
specific to that area of employment.
Proponents also note that California is currently under
federal court order to reduce prison overcrowding to 137.5
percent of capacity by 2016. They argue that in order to meet
this population cap requires taking meaningful steps to reduce
recidivism and a good job is key. Therefore, they argue, it is
imperative that vocational and educational programs in prisons
are keeping with the times and are properly preparing
prisoners for jobs that will exist upon their release.
3. Opponent Arguments :
None received.
4. Prior Legislation :
SB 354 (Roth) of 2013: Pending in Assembly Veterans Affairs
Committee
SB 354 would require that EDD share specified information with
the Department of Veterans Affairs to develop outcome and
related indicators for veterans.
691 (Lieu) of 2011: Chaptered
SB 691 required the director of EDD to provide the
Agricultural Labor Relations Board with specified information
for use in their investigations or enforcement efforts.
AB 2433 (Ruskin) of 2010: Chaptered
AB 2433 gave the Board of Equalization access to Employment
Development Department payroll and employer information in
order to combat the underground economy.
AB 604 (Kuykendall) of 1998: Chaptered
AB 604 required that the information obtained in the
administration of the Unemployment Insurance program and the
Disability Insurance program be confidential and must be for
the exclusive use and information of the director of EDD in
the discharge of his or her duties.
Hearing Date: March 26, 2014 SB 1141
Consultant: Alma Perez-Schwab Page 4
Senate Committee on Labor and Industrial Relations
SUPPORT
Friends Committee on Legislation of California
OPPOSITION
None received
Hearing Date: March 26, 2014 SB 1141
Consultant: Alma Perez-Schwab Page 5
Senate Committee on Labor and Industrial Relations