BILL NUMBER: AB 2300 CHAPTERED BILL TEXT CHAPTER 673 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2008 APPROVED BY GOVERNOR SEPTEMBER 30, 2008 PASSED THE SENATE AUGUST 18, 2008 PASSED THE ASSEMBLY AUGUST 19, 2008 AMENDED IN SENATE AUGUST 4, 2008 AMENDED IN SENATE JUNE 19, 2008 AMENDED IN ASSEMBLY MAY 23, 2008 AMENDED IN ASSEMBLY MARCH 24, 2008 INTRODUCED BY Assembly Member Laird (Coauthor: Assembly Member Garcia) FEBRUARY 21, 2008 An act to amend Section 49561 of, and to add Section 49562 to, the Education Code, and to amend Section 14100.2 of the Welfare and Institutions Code, relating to school meals. LEGISLATIVE COUNSEL'S DIGEST AB 2300, Laird. School lunch and breakfast programs: direct certification. Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which eligible low-income individuals receive basic health care services. Existing law, operative upon receipt of federal funds to assist the state in implementing new direct certification for enrollment in the National School Lunch and School Breakfast Programs, separately requires the State Department of Education to create a computerized data-matching system to directly certify recipients of the Food Stamp Program, the CalWORKs program, and other programs authorized for direct certification under federal law, for enrollment in the National School Lunch and School Breakfast Programs. Medi-Cal benefits, however, are not included within the criteria for direct certification specified in federal law. This bill would delete provisions regarding the inclusion of Medi-Cal benefits within the criteria for direct certification specified in federal law. The bill would permit the State Department of Education, in consultation with the State Department of Health Care Services, to the extent permitted under federal law, and upon the receipt of federal funds for this purpose, to directly certify children into the school meal program. Existing law, subject to certain exceptions, requires all types of information concerning a person, made or kept by any public officer or agency in connection with the administration of the Medi-Cal program, to be confidential. This bill would create an exception to this provision by authorizing the State Department of Health Care Services, in coordination with the State Department of Education, and upon the availability of federal funds and to the extent permitted under federal law, to exercise an option under federal law to exchange the information necessary to perform direct verification of eligibility of children for free or reduced price meals. The bill would also authorize the State Department of Health Care Services, upon the availability of federal funds and to the extent permitted by federal law, to exchange the necessary information to perform direct verification of eligibility of children for, and to perform direct certification for enrolling children to receive, free or reduced price meals, as provided. This bill would authorize, to the extent permitted by state and federal law, the State Department of Health Care Services and the State Department of Education to review the data only for the purposes of improving the effectiveness of the data matches made pursuant to certifying children to receive free or reduced price meals. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) Studies have shown that children who receive meals at school tend to perform better on academic tests, are less likely to be tardy or absent from school, and are more likely to get key nutrients needed for good health. (b) The Medi-Cal program in California provides health care to low-income children throughout the state. With considerable state investment in this program, the Legislature recognizes that it has an interest in ensuring that these children receive proper nutrition in order to avoid the costly health consequences of an inadequate diet. (c) Most children participating in the Medi-Cal program are eligible for free or reduced price school meals yet some are not enrolled. Many more are enrolled, but have had to fill out substantial paperwork at school to prove that they are in need of a free or reduced price meal, even though they have already provided substantial information to demonstrate need to the Medi-Cal program. This redundant paperwork can be a burden for families and for schools. (d) Chapter 361 of the Statutes of 2005 required the State Department of Education to create a computerized data-matching system using databases from the department and from the State Department of Health Care Services to directly certify participants in the Food Stamp Program and CalWORKs program for enrollment in the National School Breakfast Program and the National School Lunch Program. The Medi-Cal program was not included at that time. (e) In California, this computerized matching system is now in place and successfully has been enrolling children from the Food Stamp Program and CalWORKs program into the school meal program. Other states have successfully tested the use of Medicaid data for verifying eligibility for school meals. California can be the first state to test the use of Medicaid data for directly enrolling Medicaid recipient children into school meal programs. (f) Therefore, it is the intent of the Legislature to seek to expand direct certification for school meals by establishing a process to use Medi-Cal data for automatically enrolling needy children into free and reduced price school meal programs. SEC. 2. Section 49561 of the Education Code is amended to read: 49561. (a) The department shall create a computerized data-matching system using existing databases from the department and the State Department of Health Care Services to directly certify recipients of the Food Stamp Program, the California Work Opportunity and Responsibility to Kids program (the CalWORKs program) (Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code), and other programs authorized for direct certification under federal law, for enrollment in the National School Lunch and School Breakfast Programs. (b) The department shall design a process using an existing agency database that will conform with data from the State Department of Health Care Services to meet the direct certification requirements of the National School Lunch Act, as amended, pursuant to Chapter 13 (commencing with Section 1751) of Title 42 of the United States Code, and the federal Child Nutrition Act of 1966, as amended, pursuant to Chapter 13A (commencing with Section 1771) of Title 42 of the United States Code. (c) The department shall design a process using computerized data pursuant to subdivision (a) that will maximize enrollment in school meal programs and improve program integrity while ensuring that pupil privacy safeguards remain in place. The State Department of Health Care Services shall conduct the data match of local school records and return a list to the department, including only the data fields submitted by the department and an indicator of program eligibility, as required by federal law. (d) (1) Each state agency identified in subdivision (a) is responsible for the maintenance and protection of data received by their respective agency. The state agency that possesses the data shall follow privacy and confidentiality procedures consistent with all applicable state and federal law. To the extent permitted by state and federal law, the department and the State Department of Health Care Services may review the data only for the purposes of improving the effectiveness of the data matches made pursuant to this section and Section 49562. (2) Notwithstanding Section 10850 of the Welfare and Institutions Code, data that identify applicants for, or recipients of, public social services, may be transferred from existing databases maintained by the State Department of Health Care Services, in order to directly certify recipients of the Food Stamp Program, the CalWORKs program, and other programs authorized for direct certification under federal law, in compliance with subdivision (a). The Legislature hereby finds and declares that this paragraph is declaratory of existing law. (e) The department shall determine the availability of and request or apply for, as appropriate, federal funds to assist the state in implementing new direct certification requirements mandated by federal law. (f) This section shall become operative upon receipt of federal funds to assist the state in implementing new direct certification requirements mandated by federal law. SEC. 3. Section 49562 is added to the Education Code, to read: 49562. (a) The department, in consultation with the State Department of Health Care Services, shall develop and implement a process to use participation data from the Medi-Cal program administered pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, to verify income as established in the federal Child Nutrition and WIC Reauthorization Act of 2004 (P.L. 108-265) and, to the extent permitted under federal law, directly certify children whose families meet the applicable income criteria into the school meal program. (b) In the operation of this process, the department shall limit the information needed from the State Department of Health Care Services to identify families whose income falls below the eligibility cutoff for free or reduced price meals, and the least amount of information needed to facilitate a match of local school records. The State Department of Health Care Services shall conduct the data match of local school records and return a list to the department, including only the data fields submitted by the department and an indicator of program eligibility, as required by federal law. (c) The department and the State Department of Health Care Services shall design this process to maintain pupil privacy and the privacy of Medi-Cal recipients by establishing privacy and confidentiality procedures consistent with all applicable state and federal laws. To the extent permitted by state and federal law, the department and the State Department of Health Care Services may review the data only for the purposes of improving the effectiveness of the data matches made pursuant to this section and Section 49561. (d) The department specifically shall ensure that the process conforms to the federal Health Insurance Portability and Accountability Act of 1996 (P.L. 104-191) by using strategies employed by other states in Medicaid verification projects or by developing a new strategy that ensures conformity. (e) The department shall seek all necessary approvals to establish this process and shall apply for available federal funds to support the work of this process. (f) This section shall become operative upon the receipt of federal funds to assist the state in implementing the provisions of this section. SEC. 4. Section 14100.2 of the Welfare and Institutions Code is amended to read: 14100.2. (a) Except as provided in subdivision (i), all types of information, whether written or oral, concerning a person, made or kept by any public officer or agency in connection with the administration of any provision of this chapter, Chapter 8 (commencing with Section 14200), or Chapter 8.7 (commencing with Section 14520) and for which a grant-in-aid is received by this state from the United States government pursuant to Title XIX of the Social Security Act shall be confidential, and shall not be open to examination other than for purposes directly connected with the administration of the Medi-Cal program. However, in the context of a petition for the appointment of a conservator for a person with respect to whom this information is made or kept, and in the context of a criminal prosecution for a violation of Section 368 of Penal Code with respect to such a person, all of the following shall apply: A public officer or employee of any such agency may answer truthfully, at any proceeding related to the petition or prosecution, when asked if he or she is aware of information that he or she believes is related to the legal mental capacity of that aid recipient or the need for a conservatorship for that aid recipient. If the officer or employee states that he or she is aware of this information, the court may order the officer or employee to testify about his or her observations and to disclose any relevant agency records if the court has an other independent reason to believe that the officer or employee has information that would facilitate the resolution of the matter. (b) Except as provided in this section, and to the extent permitted by federal law or regulation, all information about applicants and recipients as provided for in subdivision (a) to be safeguarded includes, but is not limited to, names and addresses, medical services provided, social and economic conditions or circumstances, agency evaluation of personal information, and medical data, including diagnosis and past history of disease or disability. (c) Purposes directly connected with the administration of the Medi-Cal program, Chapter 8 (commencing with Section 14200), or Chapter 8.7 (commencing with Section 14520) encompass those administrative activities and responsibilities in which the department and its agents are required to engage to insure effective program operations. These activities include, but are not limited to: establishing eligibility and methods of reimbursement; determining the amount of medical assistance; providing services for recipients; conducting or assisting an investigation, prosecution, or civil or criminal proceeding related to the administration of the Medi-Cal program; and conducting or assisting a legislative investigation or audit related to the administration of the Medi-Cal program. (d) Any officer, agent, or employee of the department or of any public agency shall provide the Joint Legislative Audit Committee and the State Auditor with any and all the information described in subdivision (b) within a reasonable period of time as determined by the committee in consultation with the department, after receipt of a request from the committee approved by a majority of the members of the committee. The Joint Legislative Audit Committee and the State Auditor may use that information only for the purpose of investigating or auditing the administration of the Medi-Cal program, Chapter 8 (commencing with Section 14200), or Chapter 8.7 (commencing with Section 14520), and shall not use that information for commercial or political purposes. In any case where disclosure of information is authorized by this section, the Joint Legislative Audit Committee or the State Auditor shall not disclose the identity of any applicant or recipient, except in the case of a criminal or civil proceeding conducted in connection with the administration of the Medi-Cal program. (e) The access to information provided in subdivision (d) shall be permitted only to the extent and under the conditions provided by federal law and regulations governing the release of such information. (f) The department may make rules and regulations governing the custody, use, and preservation of all records, papers, files, and communications pertaining to the administration of the laws relating to the Medi-Cal program, Chapter 8 (commencing with Section 14200), or Chapter 8.7 (commencing with Section 14520). The rules and regulations shall be binding on all departments, officials, and employees of the state, or of any political subdivision of the state and may provide for giving information to or exchanging information with agencies, public, or political subdivisions of the state, and may provide for giving information to or exchanging information with agencies, public or private, which are engaged in planning, providing, or securing such services for or in behalf of recipients or applicants; and for making case records available for research purposes, provided that that research will not result in the disclosure of the identity of applicants for or recipients of those services. (g) Upon request, the department shall release to the negotiator established pursuant to Article 2.6 (commencing with Section 14081) all computer tapes and any modifications thereto, including paid claims, connected with the administration of the Medi-Cal program which are in the possession or under the control of the department, including tapes prepared prior to the effective date of this section. To ensure compliance with federal law and regulations, the department shall make the minimum necessary modifications to its computer tapes prior to releasing the tapes to the negotiator in order to assure the confidentiality of the identity of all applicants for, or recipients of, those services. The department shall not make any modifications to paid claims tapes that affect information regarding beneficiaries' aid categories or counties of origin. (h) Any person who knowingly releases or possesses confidential information concerning persons who have applied for or who have been granted any form of Medi-Cal benefits or benefits under Chapter 8 (commencing with Section 14200) or Chapter 8.7 (commencing with Section 14520) for which state or federal funds are made available in violation of this section is guilty of a misdemeanor. (i) (1) To the extent federal funds are made available from the United States Department of Agriculture, the department may do both of the following: (A) To the extent permitted by federal law, exercise its option under Section 1396a(a)(7)(B) of Title 42 of the United States Code, in coordination with the State Department of Education, to exchange the information necessary to perform direct verification of the eligibility of children for free or reduced price meals. (B) To the extent permitted by federal law, in coordination with the State Department of Education, exchange the information necessary to perform direct certification for enrolling children to receive free or reduced price meals. (2) To the extent permitted by state and federal law, the department and the State Department of Education may review the data only for the purposes of improving the effectiveness of the data matches made pursuant to Sections 49561 and 49562 of the Education Code.