Unemployment insurance: use of employer reports: reporting and payroll: enforcement.

(1) Existing law provides for the payment of unemployment compensation benefits to eligible unemployed individuals, and requires the Employment Development Department to implement and administer the unemployment insurance system in the state. Existing law requires each employer to file with the department a report of wages paid to his or her workers and to furnish to each employee a written statement showing, among other things, the total amount of wages, and total wages subject to personal income tax, as provided. Existing law also requires each employer to file with the department specified information on new employees, and authorizes the use of that information for specified purposes including, among other things, administration of the law regarding unemployment compensation benefits. Existing law provides that a person who knowingly accesses, uses, or discloses confidential information without authorization is guilty of a misdemeanor. This bill would, until January 1, 2019, also authorize the Employment Development Department to provide the specified new employee information to the Joint Enforcement Strike Force on the Underground Economy, the Contractors' State License Board, and the State Compensation Insurance Fund, as provided. By expanding the crime of knowingly and wrongfully accessing, using, or disclosing specified information, this bill would 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. (2) Existing law imposes specified regulatory and enforcement responsibilities relating to employers on the Employment Development Department, the Contractors' State License Board, and the State Compensation Insurance Fund. This bill would require the Employment Development Department, the Contractors' State License Board, and the State Compensation Insurance Fund to execute, on or before July 1, 2013, a memorandum of understanding regarding the administration and enforcement of reporting and payroll duties relating to contractors. (3) This bill would incorporate additional changes in Section 1088.5 of the Unemployment Insurance Code, proposed by AB 174 and AB 1845 that would become operative only if this bill and either or both of those bills are chaptered and become effective January 1, 2013, and this bill is chaptered last.