BILL ANALYSIS AB 2433 Page 1 Date of Hearing: April 28, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 2433 (Ruskin) - As Introduced: February 19, 2010 Policy Committee: InsuranceVote:12-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill authorizes the Employment Development Department to share employment tax information to assist in the administration of tax programs. This bill specifies the sharing of tax information must be limited to the exchange of information permitted by federal law. FISCAL EFFECT Minor absorbable workload to the Employment Development Department (EDD) to share employment tax data with the Board of Equalization (BOE). Under current law these two entities share information via a memorandum of understanding. COMMENTS 1)Rationale . This bill authorizes EDD to share information with BOE for a variety of enforcement purposes. Under current law the sharing of tax data has been by agreement, but recently EDD has shown concern about not having express authority to share this kind of data. This bill clarifies current law to make that express authority available to EDD. 2)Background . Under current law EDD tax-related data is used for a variety of purposes such as determining beneficiary access public benefits, investigating disability income, administering child support programs, investigating workers' compensation insurance fraud, and verifying employment history. In addition, the BOE uses EDD confidential tax information to verify the reported number of employees by calculations related to environmental and lead poisoning AB 2433 Page 2 prevention fees. Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081