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S.B. 281

             1     

DEBT COLLECTION INFORMATION AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: Mike K. McKell

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Employment Security Act by amending provisions for the
             10      disclosure of employment information for debt collections.
             11      Highlighted Provisions:
             12          This bill:
             13          .    allows certain employment records to be disclosed by the Unemployment Insurance
             14      Division to a creditor under a court order to collect on a judgment;
             15          .    provides procedures for:
             16              .    a court to grant or deny an order requiring disclosure of the employment
             17      information; or
             18              .    the creditor to deliver the court order to the division, pay a fee, and receive the
             19      information from the division;
             20          .    provides restrictions on the use and disclosure of the employment information;
             21          .    provides for auditing for potential misuse of the information;
             22          .    provides certain penalties; and
             23          .    makes technical changes.
             24      Money Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          None


             28      Utah Code Sections Affected:
             29      AMENDS:
             30          35A-4-312, as last amended by Laws of Utah 2012, Chapter 369
             31      ENACTS:
             32          35A-4-314, Utah Code Annotated 1953
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 35A-4-312 is amended to read:
             36           35A-4-312. Records.
             37          (1) (a) An employing unit shall keep true and accurate work records containing [any]
             38      information the department may prescribe by rule.
             39          (b) A record shall be open to inspection and subject to being copied by the division or
             40      its authorized representatives at a reasonable time and as often as [may be] necessary.
             41          (c) An employing unit shall make a record available in the state for three years after the
             42      calendar year in which the services are rendered.
             43          (2) The division may require from an employing unit a sworn or unsworn report with
             44      respect to a person employed by the employing unit that the division considers necessary for
             45      the effective administration of this chapter.
             46          (3) Except as provided in this section or in Sections 35A-4-103 and 35A-4-106 ,
             47      information obtained under this chapter or obtained from an individual may not be published or
             48      open to public inspection in [any] a manner revealing the employing unit's or individual's
             49      identity.
             50          (4) (a) The information obtained by the division under this section may not be used in
             51      court or admitted into evidence in an action or proceeding, except:
             52          (i) in an action or proceeding arising out of this chapter;
             53          (ii) if the Labor Commission enters into a written agreement with the division under
             54      Subsection (6)(b), in an action or proceeding by the Labor Commission to enforce:
             55          (A) Title 34, Chapter 23, Employment of Minors;
             56          (B) Title 34, Chapter 28, Payment of Wages;
             57          (C) Title 34, Chapter 40, Utah Minimum Wage Act; or
             58          (D) Title 34A, Utah Labor Code;


             59          (iii) under the terms of a court order obtained under Subsection 63G-2-202 (7) and
             60      Section 63G-2-207 ; or
             61          (iv) under the terms of a written agreement between the Office of State Debt Collection
             62      and the division as provided in Subsection (5).
             63          (b) The information obtained by the division under this section shall be disclosed to:
             64          (i) a party to an unemployment insurance hearing before an administrative law judge of
             65      the department or a review by the Workforce Appeals Board to the extent necessary for the
             66      proper presentation of the party's case; or
             67          (ii) an employer, upon request in writing for [any] information concerning a claim for a
             68      benefit with respect to a former employee of the employer.
             69          (5) The information obtained by the division under this section may be disclosed to:
             70          (a) an employee of the department in the performance of the employee's duties in
             71      administering this chapter or other programs of the department;
             72          (b) an employee of the Labor Commission for the purpose of carrying out the programs
             73      administered by the Labor Commission;
             74          (c) an employee of the Department of Commerce for the purpose of carrying out the
             75      programs administered by the Department of Commerce;
             76          (d) an employee of the governor's office or another state governmental agency
             77      administratively responsible for statewide economic development, to the extent necessary for
             78      economic development policy analysis and formulation;
             79          (e) an employee of another governmental agency that is specifically identified and
             80      authorized by federal or state law to receive the information for the purposes stated in the law
             81      authorizing the employee of the agency to receive the information;
             82          (f) an employee of a governmental agency or workers' compensation insurer to the
             83      extent the information will aid in:
             84          (i) the detection or avoidance of duplicate, inconsistent, or fraudulent claims against:
             85          (A) a workers' compensation program; or
             86          (B) public assistance funds; or
             87          (ii) the recovery of overpayments of workers' compensation or public assistance funds;
             88          (g) an employee of a law enforcement agency to the extent the disclosure is necessary
             89      to avoid a significant risk to public safety or in aid of a felony criminal investigation;


             90          (h) an employee of the State Tax Commission or the Internal Revenue Service for the
             91      purposes of:
             92          (i) audit verification or simplification;
             93          (ii) state or federal tax compliance;
             94          (iii) verification of a code or classification of the:
             95          (A) 1987 Standard Industrial Classification Manual of the federal Executive Office of
             96      the President, Office of Management and Budget; or
             97          (B) 2002 North American Industry Classification System of the federal Executive
             98      Office of the President, Office of Management and Budget; and
             99          (iv) statistics;
             100          (i) an employee or contractor of the department or an educational institution, or other
             101      governmental entity engaged in workforce investment and development activities under the
             102      Workforce Investment Act of 1998 for the purpose of:
             103          (i) coordinating services with the department;
             104          (ii) evaluating the effectiveness of those activities; and
             105          (iii) measuring performance;
             106          (j) an employee of the Governor's Office of Economic Development, for the purpose of
             107      periodically publishing in the Directory of Business and Industry, the name, address, telephone
             108      number, number of employees by range, code or classification of an employer, and type of
             109      ownership of Utah employers;
             110          (k) the public for any purpose following a written waiver by all interested parties of
             111      their rights to nondisclosure;
             112          (l) an individual whose wage data is submitted to the department by an employer, [so
             113      long as] if no information other than the individual's wage data and the identity of the employer
             114      who submitted the information is provided to the individual;
             115          (m) an employee of the Insurance Department for the purpose of administering Title
             116      31A, Chapter 40, Professional Employer Organization Licensing Act; [or]
             117          (n) an employee of the Office of State Debt Collection for the purpose of collecting
             118      state accounts receivable as provided in Section 63A-3-502 [.]; or
             119          (o) a creditor, under a court order, to collect on a judgment as provided in Section
             120      35A-4-314 .


             121          (6) Disclosure of private information under Subsection (4)(a)(ii) or Subsection (5),
             122      with the exception of Subsections (5)(a) [and], (g), [shall] and (o) may be made [only] if:
             123          (a) the division determines that the disclosure will not have a negative effect on:
             124          (i) the willingness of employers to report wage and employment information; or
             125          (ii) the willingness of individuals to file claims for unemployment benefits; and
             126          (b) the agency enters into a written agreement with the division in accordance with
             127      rules made by the department.
             128          (7) (a) The employees of a division of the department other than the Workforce
             129      Development and Information Division and the Unemployment Insurance Division or an
             130      agency receiving private information from the division under this chapter are subject to the
             131      same requirements of privacy and confidentiality and to the same penalties for misuse or
             132      improper disclosure of the information as employees of the division.
             133          (b) Use of private information obtained from the department by a person or for a
             134      purpose other than one authorized in Subsection (4) or (5) violates Subsection 76-8-1301 (4).
             135          Section 2. Section 35A-4-314 is enacted to read:
             136          35A-4-314. Disclosure of information for debt collection -- Court order --
             137      Procedures -- Use of information restrictions -- Penalties.
             138          (1) The division shall disclose to a creditor who has obtained judgment against a debtor
             139      the name and address of the last known employer of the debtor if:
             140          (a) the judgment creditor obtains a court order requiring disclosure of the information
             141      as described in Subsection (2); and
             142          (b) the judgment creditor completes the requirements described in Subsection (3),
             143      including entering into a written agreement with the division.
             144          (2) (a) A court shall grant an order to disclose the information described in Subsection
             145      (1) if, under the applicable Utah Rules of Civil Procedure:
             146          (i) the judgment creditor files a motion with the court, which includes a copy of the
             147      judgment, and serves a copy of the motion to the judgment debtor and the division;
             148          (ii) the judgment debtor and the division have the opportunity to respond to the motion;
             149      and
             150          (iii) the court denies or overrules any objection to disclosure in the judgment debtor's
             151      and the division's response.


             152          (b) A court may not grant an order to disclose the information described in Subsection
             153      (1), if the court finds that the division has established that disclosure will have a negative effect
             154      on:
             155          (i) the willingness of employers to report wage and employment information; or
             156          (ii) the willingness of individuals to file claims for unemployment benefits.
             157          (c) The requirements of Subsection 63G-2-202 (7) and Section 63G-2-207 do not apply
             158      to information sought through a court order as described in this section.
             159          (3) If a court order is granted in accordance with this section, a judgment creditor shall:
             160          (a) provide to the division a copy of the order requiring the disclosure;
             161          (b) enter into a written agreement with the division, in a form approved by the division;
             162          (c) pay the division a reasonable fee that reflects the cost for processing the request as
             163      established by department rule; and
             164          (d) comply with the data safeguard and security measures described in 20 C.F.R. Sec.
             165      603.9 with respect to information received from the division under this section.
             166          (4) If a judgment creditor complies with Subsection (3), the division shall provide the
             167      information to the judgment creditor within 14 business days after the day on which the
             168      creditor complies with Subsection (3).
             169          (5) A judgment creditor may not:
             170          (a) use the information obtained under this section for a purpose other than satisfying
             171      the judgment between the creditor and debtor; or
             172          (b) disclose or share the information with any other person.
             173          (6) The division may audit a judgment creditor or other party receiving information
             174      under this section for compliance with the data safeguard and security measures described in 20
             175      C.F.R. Sec. 603.9.
             176          (7) If a judgment creditor or other party fails to comply with the data safeguard and
             177      security measures under 20 C.F.R. Sec. 603.9, the judgment creditor or other party is subject to
             178      a civil penalty of no more than $10,000 enforceable by the Utah Office of the Attorney
             179      General.





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    as of 3-4-13 1:06 PM


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