Bill Text: CA AB1792 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public benefits: reports on employers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-30 - Chaptered by Secretary of State - Chapter 889, Statutes of 2014. [AB1792 Detail]

Download: California-2013-AB1792-Introduced.html

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BILL NUMBER: AB 1792	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gomez

                        FEBRUARY 18, 2014

   An act to amend Section 1088.5 of the Unemployment Insurance Code,
relating to unemployment insurance, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1792, as introduced, Gomez. Unemployment contributions:
reports.
   Existing law requires each employer to file with the Employment
Development Department specified information on new employees.
Existing law authorizes the department to assess a penalty of $24 for
a failure to report the hiring of an employee, or $490 if the
failure to report is the result of conspiracy between the employer
and the employee not to supply the required report or to supply a
false or incomplete report.
   This bill would change these penalty amounts to $23 and $499,
respectively. This bill would increase the amount of that penalty and
thus, the moneys deposited into the Employment Development
Department Contingent Fund, a continuously appropriated fund, thereby
making an appropriation.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1088.5 of the Unemployment Insurance Code is
amended to read:
   1088.5.  (a) In addition to information reported in accordance
with Section 1088, effective July 1, 1998, each employer shall file,
with the department, the information provided for in subdivision (b)
on new employees.
   (b) Each employer shall report the hiring of any employee who
works in this state and to whom the employer anticipates paying
wages, and also shall report the hiring of any employee who
previously worked for the employer but had been separated from that
prior employment for at least 60 consecutive days.
   (c) (1) This section shall not apply to any department, agency, or
instrumentality of the United States.
   (2) State agency employers shall not be required to report
employees performing intelligence or counterintelligence functions,
if the head of the agency has determined that reporting pursuant to
this section would endanger the safety of the employee or compromise
an ongoing investigation or intelligence mission.
   (d) (1) Employers shall submit a report as described in paragraph
(4) within 20 days of hiring any employee whom the employer is
required to report pursuant to this section.
   (2) Notwithstanding subdivision (a), employers transmitting
reports magnetically or electronically shall submit the report by two
monthly transmissions not less than 12 days and not more than 16
days apart.
   (3) For purposes of this section, an employer that has employees
in two or more states and that transmits reports magnetically or
electronically may designate one state in which the employer has
employees to which the employer will transmit the report described in
paragraph (4). Any employer that transmits reports pursuant to this
paragraph shall notify the Secretary of Health and Human Services in
writing as to which state the employer designates for the purpose of
sending reports.
   (4) The report shall contain the following:
   (A) The name, address, and social security number of the
employees.
   (B) The employer's name, address, state employer identification
number (if one has been issued), and identifying number assigned to
the employer under Section 6109 of the Internal Revenue Code of 1986.

   (C) The first date the employee worked.
   (5) Employers may report pursuant to this section by submitting a
copy of the employee's W-4 form, a form provided by the department,
or any other hiring document transmitted by first-class mail,
magnetically, or electronically.
   (e) For each failure to report the hiring of an employee, as
required and within the time required by this section, unless the
failure is due to good cause, the department may assess a penalty of
 twenty-four dollars ($24)   twenty-three
dollars ($23)  , or  four hundred ninety dollars ($490)
  four hundred ninety-nine dollars ($499)  if the
failure is the result of conspiracy between the employer and employee
not to supply the required report or to supply a false or incomplete
report.
   (f) (1) On and after January 1, 2013, and before January 1, 2019,
information collected pursuant to this section may be used for the
following purposes:
   (A) Administration of this code, including, but not limited to,
providing employer or employee information to participating members
of the Joint Enforcement Strike Force on the Underground Economy
pursuant to Section 329 for the purposes of auditing, investigating,
and prosecuting violations of tax and cash-pay reporting laws.
   (B) Locating individuals for purposes of establishing paternity
and establishing, modifying, and enforcing child support obligations.

   (C) Administration of employment security and workers'
compensation programs.
   (D) Providing employer or employee information to the Franchise
Tax Board and the State Board of Equalization for the purpose of tax
or fee enforcement.
   (E) Verification of eligibility of applicants for, or recipients
of, the public assistance programs listed in Section 1320b-7(b) of
Title 42 of the United States Code.
   (F) Providing employer or employee information to the Contractors'
State License Board and the State Compensation Insurance Fund for
the purpose of workers' compensation payroll reporting.
   (G) Providing employer or employee information to the State
Department of Health Care Services, the California Health Benefit
Exchange, the Managed Risk Medical Insurance Board, and county
departments and agencies for the purpose of:
   (i) 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, the Healthy Families Program, provided pursuant to
Part 6.2 (commencing with Section 12693) of Division 2 of the
Insurance Code, and the Access for Infants and Mothers Program,
provided pursuant to Part 6.3 (commencing with Section 12695) of
Division 2 of the Insurance Code, where the verification or
determination is directly connected with, and limited to, the
administration of the state health subsidy programs referenced in
this clause.
   (ii) 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), where the verification or determination is
directly connected with, and limited to, the administration of the
California Health Benefit Exchange.
   (iii) 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, where the verification or determination is directly
connected with, and limited to, the administration of the Small
Business Health Options Program.
   (2) On and after January 1, 2019, information collected pursuant
to this section may be used for the following purposes:
   (A) Administration of this code.
   (B) Locating individuals for purposes of establishing paternity
and establishing, modifying, and enforcing child support obligations.

   (C) Administration of employment security and workers'
compensation programs.
   (D) Providing employer or employee information to the Franchise
Tax Board and to the State Board of Equalization for the purposes of
tax or fee enforcement.
   (E) Verification of eligibility of applicants for, or recipients
of, the public assistance programs listed in Section 1320b-7(b) of
Title 42 of the United States Code.
   (F) Providing employer or employee information to the State
Department of Health Care Services, the California Health Benefit
Exchange, the Managed Risk Medical Insurance Board, and county
departments and agencies for the purpose of:
   (i) 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, the Healthy Families Program, provided pursuant to
Part 6.2 (commencing with Section 12693) of Division 2 of the
Insurance Code, and the Access for Infants and Mothers Program,
provided pursuant to Part 6.3 (commencing with Section 12695) of
Division 2 of the Insurance Code, where the verification or
determination is directly connected with, and limited to, the
administration of the state health subsidy programs referenced in
this clause.
   (ii) 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), where the verification or determination is
directly connected with, and limited to, the administration of the
California Health Benefit Exchange.
   (iii) 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, where the verification or determination is directly
connected with, and limited to, the administration of the Small
Business Health Options Program.
   (g) For purposes of this section, "employer" includes a labor
union hiring hall.
   (h) This section shall become operative on July 1, 1998.