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SB-39 Fraudulent claims: inmates.(2021-2022)

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Date Published: 06/21/2021 09:00 PM
SB39:v95#DOCUMENT

Amended  IN  Assembly  June 21, 2021
Amended  IN  Senate  April 15, 2021
Amended  IN  Senate  March 23, 2021
Amended  IN  Senate  March 04, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 39

Introduced by Senator Grove
(Coauthors: Senators Bates, Hurtado, Jones, Melendez, and Ochoa Bogh Nielsen, Ochoa Bogh, and Wilk)
(Coauthors: Assembly Members Chen, Choi, Megan Dahle, Cristina Garcia, Kiley, Lackey, Mathis, Nguyen, Patterson, and Seyarto)

December 07, 2020

An act to amend Section 11105.9 of the Penal Code, and to add Sections 321.5 and 321.6 to the Unemployment Insurance Code, relating to unemployment insurance, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


SB 39, as amended, Grove. Fraudulent claims: inmates.
Existing law provides for the payment of unemployment compensation benefits to eligible persons who are unemployed through no fault of their own through a federal-state unemployment insurance program administered by the Employment Development Department, subject to oversight by the Director of Employment Development. Under existing law, the expenses of administering the unemployment insurance program are paid from the Unemployment Administration Fund, a continuously appropriated fund.
Existing law requires the Department of Justice to maintain state summary criminal history information, including the identification and criminal history of a person, including name, date of birth, social security number, physical description, fingerprints, photographs, dates of arrests, arresting agencies and booking numbers, charges, dispositions, sentencing information, and similar data about the person. Existing law requires the Attorney General to furnish this information to specified persons, agencies, or organizations, including the Department of Corrections and Rehabilitation, if needed in the course of their duties. Existing law makes it a crime for any person authorized by law to receive state summary criminal history information to knowingly furnish the information to a person who is not authorized by law to receive it.
This bill would require the Department of Corrections and Rehabilitation to provide the names and social security numbers of current inmates to the Employment Development Department for the purposes of preventing payments on fraudulent claims for unemployment compensation benefits. The bill would require the Department of Corrections and Rehabilitation to provide the information to the Employment Development Department at least every 90 calendar days and upon that department’s request. Because this bill would expand the group of persons who can be convicted for knowingly furnishing state summary criminal history information to unauthorized persons, it would impose a state-mandated local program.
This bill would require, for the purpose of preventing payments on fraudulent claims for unemployment compensation benefits, for any unemployment compensation benefits paid on and after July 1, 2021, the Director of Employment Development to verify with the information provided by the Department of Corrections and Rehabilitation before making any payment of unemployment compensation benefits that the claimant is not an inmate currently incarcerated in the state prisons. The bill would also prohibit the department from using the information provided by the Department of Corrections and Rehabilitation unless the information of current inmates is equal to or less than 90 calendar days old.
This bill would require, if the department determines a claimant is an inmate currently incarcerated in the state prisons, the department to notify the Department of Corrections and Rehabilitation and the Department of Justice of the attempt to make a fraudulent claim for unemployment compensation benefits. The bill would authorize the Employment Development Department to disseminate names and social security numbers to the Department of Corrections and Rehabilitation and the Department of Justice for this purpose. By expanding the purposes of a continuously appropriated fund, the bill would make an appropriation.
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.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 11105.9 of the Penal Code is amended to read:

11105.9.
 (a) (1) Notwithstanding subdivision (g) of Section 11105 and subdivision (a) of Section 13305, the Department of Corrections and Rehabilitation may provide the social security numbers of current or former inmates to the Employment Development Department, the California Workforce Development Board, or the California Workforce Development Board’s designee for the purposes set forth in subdivision (i) of Section 14013 of the Unemployment Insurance Code. The Employment Development Department, the California Workforce Development Board, and any board designee shall keep the social security numbers confidential and use them only to track the labor market and other employment outcomes of program participants, as described in subdivision (i) of Section 14013 of the Unemployment Insurance Code.
(2) Notwithstanding any law, the Department of Corrections and Rehabilitation shall provide the names and social security numbers, consistent with federal law, of current inmates to the Employment Development Department for the purpose set forth in Section 321.5 of the Unemployment Insurance Code. The Department of Corrections and Rehabilitation shall provide the information to the Employment Development Department pursuant to this paragraph at least every 90 calendar days and upon request by the Employment Development Department.
(b) (1) Except as provided in paragraph (2), the Employment Development Department, the California Workforce Development Board, and any board designee shall not disseminate social security numbers obtained pursuant to this section to an individual or public entity not identified in this section.
(2) Notwithstanding any law, including paragraph (1), the Employment Development Department is authorized to disseminate names and social security numbers to the Department of Corrections and Rehabilitation and the Department of Justice pursuant to Section 321.6 of the Unemployment Insurance Code.

SEC. 2.

 Section 321.5 is added to the Unemployment Insurance Code, to read:

321.5.
 For the purpose of preventing payments on fraudulent claims for unemployment compensation benefits under this part, for any unemployment compensation benefits paid on and after July 1, 2021, the Director of Employment Development shall verify with the information provided by the Department of Corrections and Rehabilitation pursuant to Section 11105.9 of the Penal Code before making any payment of unemployment compensation benefits pursuant to this part that the claimant is not an inmate currently incarcerated in the state prisons. The department shall only use the information provided by the Department of Corrections and Rehabilitation if the information of current inmates is equal to or less than 90 calendar days old.

SEC. 3.

 Section 321.6 is added to the Unemployment Insurance Code, to read:

321.6.
 If the department determines a claimant is an inmate currently incarcerated in the state prisons, the department shall notify the Department of Corrections and Rehabilitation and the Department of Justice of the attempt to make a fraudulent claim for unemployment compensation benefits under this 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.

SEC. 5.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to stop the payment of unemployment compensation benefits on fraudulent claims by inmates, thereby preserving benefits for claimants in need as soon as possible, it is necessary that this act take effect immediately.