Compare Versions

PDF |Add To My Favorites |Track Bill | print page

AB-1296 Tax Recovery in the Underground Economy Criminal Enforcement Program.(2019-2020)



Current Version: 06/21/19 - Amended Senate         Compare Versions information image


AB1296:v97#DOCUMENT

Amended  IN  Senate  June 21, 2019
Amended  IN  Assembly  April 24, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1296


Introduced by Assembly Member Gonzalez

February 22, 2019


An act to add Part 12.3 (commencing with Section 15925) to Division 3 of Title 2 of, and to repeal Section 15929 of, the Government Code, and to amend Section 1095 of the Unemployment Insurance Code, relating to the underground economy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1296, as amended, Gonzalez. Tax Recovery in the Underground Economy Criminal Enforcement Program.
Existing law, until January 1, 2019, established the Revenue Recovery and Collaborative Enforcement Team as a pilot program consisting of a team of agencies charged with specified duties that included developing a plan to document, review, and evaluate data and complaints, evaluating the benefits of a processing center to receive and analyze data, share complaints, and research leads, and providing agencies with investigative leads to combat criminal tax evasion associated with the underground economy.
This bill would establish the Tax Recovery in the Underground Economy Criminal Enforcement Program in the Department of Justice to combat underground economic activities through a multiagency collaboration to, among other things, pool resources, collaborate and share data, prosecute violations, and recover state revenue lost to the underground economy, as specified. The bill would require Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams to be located in Sacramento, Los Angeles, San Diego, the San Francisco Bay area, and Fresno. The bill would establish a Tax Recovery in the Underground Economy Criminal Enforcement Program executive board and Tax Recovery in the Underground Economy Criminal Enforcement Program committees to ensure multiagency collaboration. collaboration and to oversee the investigative teams, as provided. The bill would authorize, and in certain circumstances require, the exchange of confidential information, as provided. The bill would require that information exchanged pursuant to these provisions retain its confidential status, as specified. The
The bill would require the Department of Justice, in consultation with the executive board of the program, to submit to the Legislature a report on or before July 1, 2021, and annually thereafter, that includes specific information relating to the program. The bill would require the Legislative Analyst’s Office to, on or before July 1, 2022, 2026, submit a report to the Legislature that includes an analysis of the effectiveness of the program, as specified, along with recommendations to improve the program. The bill would repeal these reporting requirements on January 1, 2027.
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 their duties and is confidential. However, existing law permits the use of the information for specified purposes. Existing law makes it a crime for any person to knowingly access, use, or disclose this confidential information without authorization.
This bill would permit the use of the information to enable the Tax Recovery in the Underground Economy Criminal Enforcement Program to carry out its duties. Because the bill would expand the group of persons who can be convicted for knowingly accessing, using, or disclosing this information without authorization, it would expand the scope of an existing crime and therefore impose a state-mandated local program.
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: YES   Local Program: NOYES  

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


SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) The underground economy has significant negative effects on Californians. Many workers go without basic rights and protections, law-abiding businesses are put at a competitive disadvantage, consumer protections are threatened, and tax revenues are lost that could otherwise fund programs in education, law enforcement, infrastructure, or fund tax reductions for the majority of Californians who play by the rules.
(2) According to a 2013 report by the University of California, Los Angeles (UCLA) Labor Center prepared for the State Board of Equalization (now the California Department of Tax and Fee Administration), the underground economy has more than doubled between 1970 and 2000. The state’s underground economy is estimated at $60 to $140 billion annually. An estimated $8.5 billion in corporate, personal, and sales and use taxes go uncollected each year.
(3) It is the intent of the Legislature in enacting this act to support the goals of the Tax Recovery in the Underground Economy Criminal Enforcement Program, which include all of the following:
(A) To protect workers, law-abiding businesses, and consumers by bringing justice to unscrupulous businesses operating in the state’s underground economy.
(B) To recover significant lost revenues to the state by prosecuting egregious, felony-level tax and fee evasion crimes in the state’s underground economy.
(C) To facilitate information sharing among participating agencies to assess leads, conduct investigations, and prosecute felony-level tax and fee evasion crimes in the underground economy.
(D) To support multiagency investigative teams in every region of the state.

SEC. 2.

 Part 12.3 (commencing with Section 15925) is added to Division 3 of Title 2 of the Government Code, to read:

PART 12.3. Tax Recovery in the Underground Economy Criminal Enforcement Act

15925.
 This part shall be known, and may be cited, as the Tax Recovery in the Underground Economy Criminal Enforcement Act.

15926.
 (a) The Tax Recovery in the Underground Economy Criminal Enforcement Program is hereby established in the Department of Justice to combat underground economic activities through a multiagency collaboration to do, to the extent practicable, the following:
(1) Pool resources and leverage enforcement efforts.
(2) Collaborate and share data with state and federal partners.
(3) Efficiently prosecute violations covering jurisdictions of multiple agencies to address the severity of the crimes and impose appropriate penalties on convicted violators.
(4) Recover state revenue lost to the underground economy.
(b) The Tax Recovery in the Underground Economy Criminal Enforcement Program shall include an executive board to ensure efficient and effective multiagency collaboration collaboration, and to oversee the investigative teams established pursuant to Section 15927, in furtherance of this act. The executive board shall consist of the following voting members:
(1) A representative from the Department of Justice who shall be designated by the Attorney General to facilitate and oversee the multiagency collaboration set forth in this act.

(1)

(2) A representative from the Division of Law Enforcement at the Department of Justice.

(2)

(3) A representative from the Criminal Law Division at the Department of Justice.

(3)

(4) A representative from the Investigations and Special Operations Bureau at the California Department of Tax and Fee Administration.

(4)

(5) A representative from the Criminal Investigation Bureau at the Franchise Tax Board.

(5)

(6) A representative from the Investigation Division at the Employment Development Department.
(c) The Tax Recovery in the Underground Economy Criminal Enforcement Program may, as the executive board deems appropriate, invite the following state agencies to join the executive board in an advisory capacity:
(1) The California Health and Human Services Agency.
(2) The Department of Consumer Affairs.
(3) The Department of Industrial Relations.
(4) The Department of Insurance.
(5) The Department of Motor Vehicles.
(6) The Department of the California Highway Patrol.
(7) The Department of Alcoholic Beverage Control.
(8) The Bureau of Cannabis Control.
(9) The Contractors’ State License Board.
(d) The Tax Recovery in the Underground Economy Criminal Enforcement Program may, as the executive board deems appropriate, invite other state and federal state, federal, and local agencies to join the executive board in an advisory capacity subject to paragraph (2) of subdivision (b) of Section 15928.
(e) The addition of an advisory agency to the Tax Recovery in the Underground Economy Criminal Enforcement Program executive board shall be by written agreement between the voting members of the executive board and the agency joining the executive board. The written agreement shall govern the participation of the agency joining the executive board. The written agreement shall include provisions ensuring that confidential information is shared only when necessary to assess leads, conduct an investigation, or prosecute a case.
(f) The executive board of the Tax Recovery in the Underground Economy Criminal Enforcement Program shall meet as needed, but shall meet at least quarterly, to conduct its business.

15927.
 (a)The Tax Recovery in the Underground Economy Criminal Enforcement Program shall include investigative teams located in Sacramento, Los Angeles, San Diego, the San Francisco Bay area, and Fresno under the direct oversight of the Department of Justice. Fresno. The investigative teams shall include, but are not limited to, duly authorized representatives of the agencies listed in subdivision (b) of Section 15926. The addition of an agency to an investigative team shall be by written agreement between the Tax Recovery in the Underground Economy Criminal Enforcement Program’s executive board and the agency joining the investigative team. The written agreement shall govern the participation of the agency joining the investigative team.

(b)Each investigative team shall have a committee established by the Tax Recovery in the Underground Economy Criminal Enforcement Program’s executive board to ensure efficient and effective multi agency collaboration in each region in furtherance of this act.

(c)The Tax Recovery in the Underground Economy Criminal Enforcement Program’s executive board and each investigative team’s committee shall meet as needed, but shall meet at least quarterly, to conduct its business.

15928.
 (a) For cases that involve tax or fee administration associated with underground economic activities, notwithstanding the confidentiality provisions specified in subdivision (d), duly authorized members of the Tax Recovery in the Underground Economy Criminal Enforcement Program employed by an agency listed in subdivision (b) of Section 15926 or employed by an agency that joined the Tax Recovery in the Underground Economy Criminal Enforcement Program pursuant to subdivision (c) of Section 15926 shall exchange intelligence, data, including confidential tax and fee information, documents, information, complaints, or lead referrals for the purposes listed in subdivision (c).
(b) (1) Notwithstanding subdivision (a), no person employed by an agency listed in subdivision (b) or (c) of Section 15926 shall disclose confidential tax or fee information to a person employed by an agency invited to join the executive board pursuant to subdivision (d) of Section 15926, except as set forth in paragraph (2).
(2) For cases that involve a known or suspected felony level tax or fee evasion crime, voting members and advisory members violation involving tax- or fee-related crimes, including, but not limited to, tax evasion or tax fraud, a person employed by an agency listed in subdivision (b) or (c) of Section 15926 may share confidential tax or fee information with other members of an investigatory team of the Tax Recovery in the Underground Economy Criminal Enforcement Program if all of the following criteria are met:
(A) The confidential tax or fee information is obtained by a voting member or advisory member of the Tax Recovery in the Underground Economy Criminal Enforcement Program person employed by an agency listed in subdivision (b) or (c) of Section 15926 pursuant to existing law, agreements authorized by existing law, or order by the Governor.
(B) The person who receives the confidential tax or fee information is a peace officer.
(C) The confidential tax or fee information is for one of the purposes listed in subdivision (c) related to a felony level tax or fee evasion crime.
(D) The person receiving the confidential tax or fee information has a legitimate need to know to assess leads, conduct an investigation, or prosecute a case.
(E) There is a nondisclosure agreement that prohibits the person receiving the confidential tax or fee information from disclosing doing any of the following:
(i) Disclosing the information to any person that is not part of the Tax Recovery in the Underground Economy Criminal Enforcement Program or disclosing Program.
(ii) Disclosing the information to any other unauthorized person.
(iii) Using the information for purposes not related to the Tax Recovery in the Underground Economy Criminal Enforcement Program.
Consistent with subparagraph (E), the executive board shall develop and adopt a standard nondisclosure agreement for purposes of subparagraph (E). The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1) shall not apply to the standard nondisclosure agreement adopted pursuant to subparagraph (E).
(c) The intelligence, data, including confidential tax or fee information, documents, information, complaints, and lead referrals exchanged pursuant to this section shall be used for the following purposes:
(1) To assess leads or referrals in order to determine if an investigation is warranted.
(2) To conduct investigations.
(3) To prosecute violations.
(4) To conduct data analytics.

(5)To enforce judgments.

(d) Any person who was or has been involved in the Tax Recovery in the Underground Economy Criminal Enforcement Program pursuant to Section 15926 or 15927 or any person who has at any time obtained that knowledge from any of the foregoing persons shall not divulge, or make known in any manner not provided by law, any of the confidential information received by or reported to the Tax Recovery in the Underground Economy Criminal Enforcement Program. Confidential information authorized to be exchanged pursuant to this section shall retain its confidential status and shall otherwise remain subject to the confidentiality provisions contained in, but not limited to, all of the following provisions:
(1) Section 11183 as that section pertains to the Department of Justice.
(2) Sections 1094 and 1095 1094, 1095, and 2111 of the Unemployment Insurance Code as those sections pertain to the Employment Development Department.
(3) Sections 19542, 19542.1, and 19542.3 of the Revenue and Taxation Code as those Sections pertain to the Franchise Tax Board.
(4) Section 15619 of this code, Section 42464.8 of the Public Resources Code, and Sections 7056, 7056.5, 8255, 9255, 9255.1, 30455, 32455, 32457, 38705, 38706, 43651, 45981, 45982, 45983, 45984, 46751, 50159, 50160, 50161, 55381, 60608, and 60609 of the Revenue and Taxation Code, as those sections pertain to the California Department of Tax and Fee Administration.
(5) Any other information confidentiality provisions in federal and state law.
(6) Any information confidentiality provisions that are applicable to any agency that is added to the Tax Recovery in the Underground Economy Criminal Enforcement Program pursuant to subdivision (c) or (d) of Section 15926.
(e) A member of the Tax Recovery in the Underground Economy Criminal Enforcement Program shall not exchange federal tax data without authorization from the Internal Revenue Service.
(f) The Tax Recovery in the Underground Economy Criminal Enforcement Program’s executive board shall oversee the Tax Recovery in the Underground Economy Criminal Enforcement Program to ensure the protection of that appropriate policies, procedures, and training are in place to protect confidential tax and fee information pursuant to this part.
(g) The Tax Recovery in the Underground Economy Criminal Enforcement Program shall, to the extent the Legislature appropriates funds for purposes of this section, develop a data analytics system that enhances the efficiency and effectiveness of the multi agency multiagency collaboration set forth by this act.

15929.
 (a) On or before July 1, 2021, and annually thereafter, the Department of Justice, in consultation with the executive board of the Tax Recovery in the Underground Economy Criminal Enforcement Program, shall submit a report to the Legislature that includes, but is not limited to, the following information:
(1) The number of leads or complaints received by the Tax Recovery in the Underground Economy Criminal Enforcement Program during the reporting period.
(2) The number of cases investigated or prosecuted through civil action or criminal prosecution as a result of the work of the Tax Recovery in the Underground Economy Criminal Enforcement Program.
(3) The amount and final disposition of moneys collected from criminal prosecutions through the Tax Recovery in the Underground Economy Criminal Enforcement Program’s enforcement efforts.
(4) The status of the multiagency collaboration required by this act.
(5) A list of the agencies that received confidential tax or fee information pursuant to subdivision (b) of Section 15928.
(6) The number of instances, if any, of unauthorized or suspected unauthorized access, use, or disclosure of confidential tax or fee information. The report shall include the number of instances, if any, of unauthorized or suspected unauthorized access, use, or disclosure of confidential tax or fee information dating back to the inception of the Tax Recovery in the Underground Economy Criminal Enforcement Program and its predecessor programs.
(7) The status of any efforts to plan for, develop, and implement a data analytics system that enhances the efficiency and effectiveness of the multiagency collaboration set forth in this act.
(b) The Legislative Analyst’s Office, on or before July 1, 2022, 2026, shall submit a report to the Legislature that includes an analysis of the effectiveness of the Tax Recovery in the Underground Economy Criminal Enforcement Program in accomplishing the purposes specified in subdivision (a) of Section 15926 along with recommendations to improve the program.
(c) (1) A report required to be submitted pursuant to subdivisions (a) and (b) shall be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Notwithstanding Section 10231.5, this section is repealed on January 1, 2024. 2027.

SEC. 3.

 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 their 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 their representative to carry out his or her their responsibilities under this code.
(b) To properly present a claim for benefits.
(c) To acquaint a worker or his or her their authorized agent with his or her their existing or prospective right to benefits.
(d) To furnish an employer or his or her their authorized agent with information to enable him or her them to fully discharge his or her their obligations or safeguard his or her their 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, them, 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 and 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 of California, 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 their 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) This section shall not 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 former 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.
(ak) (1) To provide any peace officer with the Enforcement Branch of the Department of Insurance with both of the following:
(A) Information provided pursuant to subdivision (i) that relates to a specific insurance fraud investigation involving automobile insurance fraud, life insurance and annuity fraud, property and casualty insurance fraud, and organized automobile insurance fraud. That information shall be provided when the requesting peace officer has been designated by the Chief of the Fraud Division of the Department of Insurance and requests the 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.
(B) Employee, wage, employer, and state disability insurance claim information that relates to a specific insurance fraud investigation involving health or disability insurance fraud when the requesting peace officer has been designated by the Chief of the Fraud Division of the Department of Insurance and requests the 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.
(2) To enable the State Department of Developmental Services to obtain quarterly wage data of consumers served by that department for the purposes of monitoring and evaluating employment outcomes to determine the effectiveness of the Employment First Policy, established pursuant to Section 4869 of the Welfare and Institutions Code.
(3) The information provided pursuant to this subdivision shall be provided to the extent permitted by federal statutes and regulations.
(al) To enable the Tax Recovery in the Underground Economy Criminal Enforcement Program, as established by Part 12.3 (commencing with Section 15925) of Division 3 of Title 2 of the Government Code, to carry out its duties pursuant to that part.

SEC. 4.

 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.