BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 2433
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          Date of Hearing:   April 28, 2010

                                Felipe Fuentes, Chair

                 AB 2433 (Ruskin) - As Introduced:  February 19, 2010

          Policy Committee:                               

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              


          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. 


           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
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            prevention fees.  

           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081