Req. No. 378 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 58th Legislature (2021) SENATE BILL 260 By: Pemberton AS INTRODUCED An Act relating to the Oklahoma Employment Security Commission; amending 40 O.S. 2011, Section 4-508, as last amended by Section 10, Chapter 251, O.S.L. 2019 (40 O.S. Supp. 2020, Section 4-508), which relates to release of confidential information; authorizing certain entities to receive certain i nformation for certain purpose; authorizing the sharing of confidential information with cer tain agents and contractors for certain purpose; providing an effective date; and declaring an emergency . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 40 O.S. 2011, Section 4-508, as last amended by Section 10, Chapter 251, O.S.L. 2019 (40 O.S. Supp. 2020, Section 4-508), is amended to read as follows: Section 4-508. INFORMATION TO BE KEPT CO NFIDENTIAL - DISCLOSURE. A. Except as otherwise p rovided by law, information obtained from any employing unit or individual pursuant to the a dministration of the Employment Security Act of 1980, any workforc e system program administered or monitored by the Oklahoma Employment Security Commission, and determinations as to the benefit rights of any Req. No. 378 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 individual shall be kept confidential and shall not be disclosed or be open to public inspection in any manner rev ealing the individual's or employing unit's identity. Any claimant or employer, or agent of eithe r as authorized in writing, shall be supplied with information from the records of the Oklah oma Employment Security Commission, to the extent necessary for th e proper presentation of the claim or complaint in any proc eeding under the Employment Security Ac t of 1980, with respect thereto. B. Upon receipt of written request by any employer who maintains a Supplemental Unemployment Benefit (SUB) Plan, the Commission or its designated representative may release to that employer information regarding weekly ben efit amounts paid its workers during a specified te mporary layoff period, provided the Supplemental Unemployment Benefit (SUB) Plan requires benefit payment information before Supplemental Unemployment Benefits can be paid to the workers. Any information disclosed under this provision shall be utilized so lely for the purpose outlined herein and shall be held strictly confidential by the employer. C. The provisions of this section shall not prevent the Commission from disclosing the following information a nd no liability whatsoever, civil or criminal, shal l attach to any member of the Commission or any employee thereof for any error or omission in the disclosure of this information: Req. No. 378 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. The delivery to taxpayer or clai mant a copy of any report or other paper filed by the taxpayer or claimant pursuant to the Employment Security Act of 1980; 2. The disclosure of information to any person for a purpose as authorized by the taxpayer or claimant pursuant to a waiver of confidentiality. The waiver shall be in wr iting and shall be notarized; 3. The Oklahoma Depa rtment of Commerce may have access to dat a obtained pursuant to the Employment Security Act of 1980 pursuan t to rules promulgated by the Commission. The information obtained shall be held confidential by the Department and any of its agents and shall not be disclosed or be open to public inspect ion. The Oklahoma Department of Commerce, however, may release ag gregated data, either by industry or county, provided that the aggregation meets disclosure requir ements of the Commission; 4. The publication of st atistics so classified as to prevent the identification of a particular report and the items thereof; 5. The disclosing of information or evidence to the Attorney General or any district attorney when the information or evidence is to be used by the offic ials or other parties to the proceedings to prosecute or defend allegations of violations of the Employment Security Act of 1980. The information disclosed to the At torney General or any district attorney shall be kept confidential by them and not be disclosed except when presented to a court in a Req. No. 378 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 prosecution of a violation of Section 1 -101 et seq. of this tit le, and a violation by the Attorney General or district att orney by otherwise releasing the inform ation shall be a felony; 6. The furnishing, at the discretion of the Commission, of any information disclosed by the records or files to any official person or body of this state, any other state or of the United Sta tes who is concerned with the administr ation of assessment of any similar tax in this state, any other state or the United States; 7. The furnishing of information to other state agencies for the limited purpose of aiding in the collection of debts owed b y individuals to the requesting agencie s or the Oklahoma Employment Security Commission; 8. The release to employees of the Depart ment of Transportation or any Metropolitan Planning Organization a s defined in 23 U.S.C., Section 134 and 49 U.S.C., Section 5303 of information required for use in federally mandated regional transportation plannin g, which is performed as a part of its of ficial duties; 9. The release to employees of the State Treasurer 's office of information required to verify or evaluate the effectiveness of the Oklahoma Small Business Linked Deposit Program on job creation; 10. The release to employees of the Attorney General, the Department of Labor, the Workers ' Compensation Commission, and the Insurance Department for use in investigatio n of workers' compensation fraud; Req. No. 378 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 11. The release to employees of any Oklahoma state, Okl ahoma county, Oklahoma municipal or Oklah oma tribal law enforcement agency for use in criminal investi gations and the location o f missing persons or fugitives from ju stice; 12. The release to employees of the Center of International Trade, Oklahoma State University, of information required for t he development of International Trade for employers doing bus iness in the State of Oklahoma; 13. The release to employees of the Oklahoma State Regents for Higher Education of information required for use in the de fault prevention efforts and/or collectio n of defaulted student loans guaranteed by the Oklahoma Guara nteed Student Loan Program . Any information disclosed under thi s provision shall be utilized solely for the purpose outlined herein and shall be held str ictly confidential by the Oklahoma State Regents for Higher Education; 14. The release to employees o f the Oklahoma Department of Career and Technology Education, the Oklahoma State Regents of Higher Education, the Center for Economic and Management Resea rch of the University of Oklahoma, the Ce nter for Economic and Business Development at Southwestern Oklahom a State University, o r a center of economic and business research or development at a comprehensive or regional higher education institution within T he Oklahoma State System of Higher Educat ion of information required to identify economic trends and to complete performance accountability reports Req. No. 378 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 required by the Workforce Innovation Opportunity Act . The information obtained shal l be kept confidential by the Oklahoma Department of Career and Technology Education , the Oklahoma State Regents of Higher Education , and the higher education institution and shall not be disclosed or be open to public inspection . The Oklahoma Department of Career and Technology Education, the Oklahoma State Regents of Higher Education, and the higher education institution may release aggreg ated data, provided that the aggregation meets disclosure requirements of the Commission . For the limited purpose of completing performance accountability reports required by the federal Workforce Innovation and Opportunity Act, the Oklahoma Department of Career and Technology Education , the Oklahoma State Regents of Higher Education and the higher education institution may contract with a pri vate agent or contractor pursuant to 20 CFR Section 603.5(f) to complete the required reports, and confidential information may be shared with the private agent or contractor to the extent necessary to com plete the required reports; provided, such agent or contractor shall not release, disclose or open for public inspect ion any confidential information re ceived for purposes of completing reports; 15. The release to employe es of the Office of Management and Enterprise Services of information required to ide ntify economic trends. The information obtained shall be kept confidential by the Office of Management and Enterprise Services and shall not be Req. No. 378 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 disclosed or be open to pu blic inspection. The Office of Management and Enterprise Services may release aggreg ate data, provided that the aggregation meets disclosu re requirements of the Commiss ion; 16. The release to employees of the Department of Mental Health and Substance Abuse Services of information required to evaluate the effectiveness of mental health an d substance abuse treatment and state or local program s utilized to divert persons f rom inpatient treatment. The information obtained shall be kept confidential by the Department and shall not be disclosed or be open to public inspection. The Department of Mental Health and Substance Abuse Services, however, may release aggregated data, either by treatment facility, program or larger aggregate units, provided that the aggregation meets disclosure requirements of the Oklahoma Employment Security Commission; 17. The release to employees of the Attorney Genera l, the Oklahoma State Bureau o f Investigation, and the Insurance Department for use in the investigation of insurance fraud and health care fraud; 18. The release to employees of public housing agencie s for purposes of determining eligibility pursuant to 42 U.S.C., Section 503(i); 19. The release of wage and benefit claim information, at the discretion of the Commissio n, to an agency of this state or its political subdivisions that operate a program or activity designated Req. No. 378 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 as a required partner in the Work force Innovation and Opportuni ty Act One-Stop delivery system pursuant to 29 U.S.C.A., Section 3151(b)(1), based on a showing of need made to the Commission and after an agreement concerning the release of information is entered into with the entity receiv ing the information; 20. The release of information to the State Wage Interchange System, at the discretion of the C ommission; 21. The release of information to the Bureau of the Census of the U.S. Department of Commerce for the purpose of economic and statistical research; 22. The release of employer tax information and benefit claim information to the Oklahoma Healt h Care Authority for use in determining eligibility for a program that will provide s ubsidies for health insurance premiums for qualified e mployers, employees, self-employed persons, and unemployed persons; 23. The release of employer tax information and benefit claim information to the State Department of Rehabilitation Services for use in assessing results and outcomes of clients served; 24. The release of information to any state or federal law enforcement authority when necessary in the investigation of any crime in which the Commission is a victim. Information that is confidential under this section shall be held confidential by the law enforcement authority unless and until it is required for use in court in the prosecution of a defendant in a crimi nal prosecution; Req. No. 378 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25. The release of information to vendors that contract with the Oklahoma Employment Security Commission to provide for t he issuance of debit cards, to conduct electronic fund transfers, to perform computer programming operations, or to p erform computer maintenance or replacement operations; provided the vendor agrees to protect and safeguard the information it receives and to destroy the information when no longer needed for the purposes set out in the contract; 26. The release to employ ees of the Office of Juvenile Affairs of information for use in assessing results and outcomes of clients served as well as the effectivene ss of state and local juvenile and justice programs including prevention and treatment programs. The information obtained shall be kept confidential by the Office of Juvenile Affairs and shall not be d isclosed or be open to public inspection. The Office of Juvenile Affairs may releas e aggregated data for programs or larger aggregate units, provided that the aggregation meets disclosure requirements of the Oklahoma Employment Security Commission; 27. The release of information to vendors that contract wit h the State of Oklahoma for th e purpose of providing a public electronic labor exchange system that will support the Oklahoma Employment Security Commission's operation of an employment service system to connect employers with job seekers and military vete rans. This labor exchange sys tem would enhance the stability and security Req. No. 378 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of Oklahoma's economy as well as support t he provision of veterans' priority of service. The vendors may perform computer prog ramming operations, perform computer maintenance or re placement operations, or host the electronic solution; provided, each vendor agrees to protect and safeguard all info rmation received, that no information shall be disclosed to any third party, that the use of the information shall be restricted to the sco pe of the contract, and that the vendor shall properly dispose of all information when no longer needed for the purpo ses set out in the contract; or 28. The release of employer tax information and bene fit claim information to employees of a county public defender's office in the State of Oklahoma and the Oklahoma Indigent Defense System for the purpose of determining fi nancial eligibility for the services provided by such entities. D. Subpoenas to comp el disclosure of information made confidential by this statute shall not be valid, e xcept for administrative subpoenas issued by federal, state, or local governmental agencies that have been granted subpoena power by statute or ordinance. Confidential inf ormation maintained by the Commission can be obtained by order of a court of record that authorizes the release of the records in writing. All administrative subpoenas or court orders for production of documents must provide a minimum of twenty (20) days from the date it is served for the Commission to produ ce the documents. If the date on Req. No. 378 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 which production of the documents is required is less than twenty (20) days from the date of service, the subpoena or order shall be considered void on its face as an u ndue burden or hardship on the Commission. All admini strative subpoenas, court orde rs or notarized waivers of confidentiality authorized by paragraph 2 of subsection C of this section shall be presented with a request for records within ninety (90) days of the date the document is issued or signed, and the document can only be used one t ime to obtain records. E. Should any of the disclosures provided for in this section require more than casual or incidental staff time, the Commission shall charge the cos t of the staff time to the party requesting the information. F. It is further provi ded that the provisions of this section shall be strictly interpreted and shall not be construed as permitting the disclosure of any other information contained in the records and files of the Commission. SECTION 2. This act shall become effective July 1, 2021. SECTION 3. It being immediately necessary for t he preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect an d be in full force from and after its pass age and approval. 58-1-378 NP 1/4/2021 10:31:43 PM