Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 880

Introduced by Assembly Member Gomez

February 22, 2013

An act to amend begin delete Section 14000 of the Welfare and Institutions Code, relating to Medi-Cal end delete begin insert Section 19548.5 of the Revenue and Taxation Code, to amend Sections 1088.5 and 1095 of the Unemployment Insurance Code, and to amend Section 11025 of the Welfare and Institutions Code, relating to data collection end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 880, as amended, Gomez. begin delete Medi-Cal. end delete begin insert Data collection. end insert

begin insert

Existing law limits the information that the Franchise Tax Board may, upon request, disclose to specified agencies through information-sharing agreements or data interfaces to verify or determine eligibility of an individual for Medi-Cal benefits, the Healthy Families Program, the Access for Infants and Mothers Program, health benefits, tax credits, health insurance subsidies, or cost-sharing reductions through the California Health Benefit Exchange.

end insert begin insert

This bill would add a state employer identification number, if one has been issued, and an identifying number assigned to the employer under federal law, as specified, to the list of information that may be disclosed by the board.

end insert begin insert

Existing law requires employers to file specified information with the Employment Development Department, upon hiring an employee, that may be used by specified state departments, exchanges, and boards, and county departments and agencies for specified purposes, including verifying or determining the eligibility of an applicant for, or a recipient of, state health subsidy programs, as specified, if the verification or determination is directly connected with, and limited to, the administration of the referenced state health subsidy programs.

end insert begin insert

This bill would expand these provisions to allow the information to be used if the verification or determination is directly connected with, and limited to, the administration or funding of the referenced state health subsidy programs.

end insert begin insert

Existing law authorizes the Director of the Employment Development Department to permit the use of information in his or her possession for specified purposes and to require reimbursement for all direct costs incurred in providing that information. Existing law provides that this information includes information provided to enable federal, state, or local government departments or agencies, subject to federal law, to verify or determine the eligibility or entitlement of an applicant for, or a recipient of, public social services if the verification or determination is directly connected with, and limited to, the administration of public social services.

end insert begin insert

This bill would expand these provisions to allow the information to be used if the verification or determination is directly connected with, and limited to, the administration or funding of the public social services.

end insert begin insert

Existing law also authorizes the director to permit the use of information in his or her possession and to require reimbursement for all direct costs incurred in providing that information to enable specified state departments, exchanges, and boards, and county departments and agencies, to obtain information regarding employee wages, California employer names and account numbers, employer reports of wages and number of employees, and disability insurance and unemployment insurance claim information, for specified purposes.

end insert begin insert

This bill would authorize the director to provide information to enable these entities to obtain information regarding state employer identification numbers.

end insert begin insert

Existing law requires the State Department of Social Services and the State Department of Health Services to make use of the records of the Franchise Tax Board to match unearned income against reported income of applicants for, and recipients of, aid or public social services.

end insert begin insert

This bill would also require each department to use these records to match social security numbers of applicants for, and recipients of, aid or public services with their employer’s state employer identification number, which shall then be forwarded to the appropriate county welfare department or other appropriate state departments for use, as specified.

end insert begin delete

Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, to afford to qualifying individuals health care and related remedial or preventive services. The Medi-Cal program is, in part, governed and funded by federal Medicaid provisions.

end delete begin delete

This bill would make technical, nonsubstantive changes to these provisions.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 19548.5 of the end insert begin insert Revenue and Taxation
Code end insert begin insert is amended to read: end insert

19548.5.  

(a) (1) The Franchise Tax Board may, upon request,
disclose to the California Health Benefit Exchange, the State
Department of Health Care Services, the Managed Risk Medical
Insurance Board, and county departments and agencies, returns or
return information described in paragraph (2) in the records of the
Franchise Tax Board, through information sharing agreements or
data interfaces, to verify or determine eligibility of an individual
for Medi-Cal benefits, the Healthy Families Program, the Access
for Infants and Mothers Program, health benefits, tax credits, health
insurance subsidies, or cost-sharing reductions through the
Exchange.

(2) The returns and return information that may be disclosed
pursuant to this section is limited to the following:

(A) Information necessary to validate or make the eligibility
determination, including wages, withholdings, identifying
information, and credits.

(B) The demographic information of any taxpayer.

(C) Tax refund information of any taxpayer.

begin insert

(D) State employer identification number, if one has been issued,
and identifying number assigned to the employer under Section
6109 of the Internal Revenue Code.

end insert

(3) In addition to the penalties under this article for unauthorized
use or disclosure of the information disclosed pursuant to this
section by any deputy, agent, clerk, officer, or employee of any
agency receiving information pursuant to this section, any
information received from the Franchise Tax Board as a result of
this section shall be subject to the information sharing and
confidentiality requirements in paragraph (8) of subdivision (a) of
Section 100504 of the Government Code.

(b) (1) This section shall not be construed to supersede the
requirements and protections in the California Right to Financial
Privacy Act under Chapter 20 (commencing with Section 7460)
of Division 7 of Title 1 of the Government Code in obtaining
information in possession of any financial institution.

(2) This section shall not be construed to supersede or replace
or in any way modify any privacy and information security
requirements and protections in federal and state law regarding
protected health information or personally identifiable information,
including, but not limited to, the federal Health Insurance
Portability and Accountability Act (HIPAA), the Information
Practices Act of 1977 (Chapter 1 (commencing with Section 1798)
of Title 1.8 of Part 4 of Division 3 of the Civil Code), Section
14100.2 of the Welfare and Institutions Code, and any other state
or federal laws that are intended to, or have the effect of, protecting
individual privacy and information security in any circumstance.

(c) The Franchise Tax Board may require reimbursement for
costs incurred in providing information specified in this Section.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1088.5 of the end insert begin insert Unemployment Insurance Code end insert
begin insert is amended to read: end insert

1088.5.  

(a) In addition to information reported in accordance
with Section 1088, effective July 1, 1998, each employer shall file,
with the department, the information provided for in subdivision
(b) on new employees.

(b) Each employer shall report the hiring of any employee who
works in this state and to whom the employer anticipates paying
wages, and also shall report the hiring of any employee who
previously worked for the employer but had been separated from
that prior employment for at least 60 consecutive days.

(c) (1) This section shall not apply to any department, agency,
or instrumentality of the United States.

(2) State agency employers shall not be required to report
employees performing intelligence or counterintelligence functions,
if the head of the agency has determined that reporting pursuant
to this section would endanger the safety of the employee or
compromise an ongoing investigation or intelligence mission.

(d) (1) Employers shall submit a report as described in
paragraph (4) within 20 days of hiring any employee whom the
employer is required to report pursuant to this section.

(2) Notwithstanding subdivision (a), employers transmitting
reports magnetically or electronically shall submit the report by
two monthly transmissions not less than 12 days and not more
than 16 days apart.

(3) For purposes of this section, an employer that has employees
in two or more states and that transmits reports magnetically or
electronically may designate one state in which the employer has
employees to which the employer will transmit the report described
in paragraph (4). Any employer that transmits reports pursuant to
this paragraph shall notify the Secretary of Health and Human
Services in writing as to which state the employer designates for
the purpose of sending reports.

(4) The report shall contain the following:

(A) The name, address, and social security number of the
employees.

(B) The employer’s name, address, state employer identification
number (if one has been issued), and identifying number assigned
to the employer under Section 6109 of the Internal Revenue Code
of 1986.

(C) The first date the employee worked.

(5) Employers may report pursuant to this section by submitting
a copy of the employee’s W-4 form, a form provided by the
department, or any other hiring document transmitted by first-class
mail, magnetically, or electronically.

(e) For each failure to report the hiring of an employee, as
required and within the time required by this section, unless the
failure is due to good cause, the department may assess a penalty
of twenty-four dollars ($24), or four hundred ninety dollars ($490)
if the failure is the result of conspiracy between the employer and
employee not to supply the required report or to supply a false or
incomplete report.

(f) (1) On and after January 1, 2013, and before January 1,
2019, information collected pursuant to this section may be used
for the following purposes:

(A) Administration of this code, including, but not limited to,
providing employer or employee information to participating
members of the Joint Enforcement Strike Force on the
Underground Economy pursuant to Section 329 for the purposes
of auditing, investigating, and prosecuting violations of tax and
cash-pay reporting laws.

(B) Locating individuals for purposes of establishing paternity
and establishing, modifying, and enforcing child support
obligations.

(C) Administration of employment security and workers’
compensation programs.

(D) Providing employer or employee information to the
Franchise Tax Board and the State Board of Equalization for the
purpose of tax or fee enforcement.

(E) Verification of eligibility of applicants for, or recipients of,
the public assistance programs listed in Section 1320b-7(b) of Title
42 of the United States Code.

(F) Providing employer or employee information to the
Contractors’ State License Board and the State Compensation
Insurance Fund for the purpose of workers’ compensation payroll
reporting.

(G) Providing employer or employee information to the State
Department of Health Care Services, the California Health Benefit
Exchange, the Managed Risk Medical Insurance Board, and county
departments and agencies for the purpose of:

(i) Verifying or determining the eligibility of an applicant for,
or a recipient of, state health subsidy programs, limited to the
Medi-Cal program, provided pursuant to Chapter 7 (commencing
with Section 14000) of Part 3 of Division 9 of the Welfare and
Institutions Code, the Healthy Families Program, provided pursuant
to Part 6.2 (commencing with Section 12693) of Division 2 of the
Insurance Code, and the Access for Infants and Mothers Program,
provided pursuant to Part 6.3 (commencing with Section 12695)
of Division 2 of the Insurance Code, where the verification or
determination is directly connected with, and limited to, the
administration begin insert and funding end insert of the state health subsidy programs
referenced in this clause.

(ii) Verifying or determining the eligibility of an applicant for,
or a recipient of, federal subsidies offered through the California
Health Benefit Exchange, provided pursuant to Title 22
(commencing with Section 100500) of the Government Code,
including federal tax credits and cost-sharing assistance pursuant
to the federal Patient Protection and Affordable Care Act, (Public
Law 111-148), as amended by the federal Health Care and
Education Reconciliation Act of 2010 (Public Law 111-152), where
the verification or determination is directly connected with, and
limited to, the administration of the California Health Benefit
Exchange.

(iii) Verifying or determining the eligibility of employees and
employers for health coverage through the Small Business Health
Options Program, provided pursuant to Section 100502 of the
Government Code, where the verification or determination is
directly connected with, and limited to, the administration of the
Small Business Health Options Program.

(2) On and after January 1, 2019, information collected pursuant
to this section may be used for the following purposes:

(A) Administration of this code.

(B) Locating individuals for purposes of establishing paternity
and establishing, modifying, and enforcing child support
obligations.

(C) Administration of employment security and workers’
compensation programs.

(D) Providing employer or employee information to the
Franchise Tax Board and to the State Board of Equalization for
the purposes of tax or fee enforcement.

(E) Verification of eligibility of applicants for, or recipients of,
the public assistance programs listed in Section 1320b-7(b) of Title
42 of the United States Code.

(F) Providing employer or employee information to the State
Department of Health Care Services, the California Health Benefit
Exchange, the Managed Risk Medical Insurance Board, and county
departments and agencies for the purpose of:

(i) Verifying or determining the eligibility of an applicant for,
or a recipient of, state health subsidy programs, limited to the
Medi-Cal program, provided pursuant to Chapter 7 (commencing
with Section 14000) of Part 3 of Division 9 of the Welfare and
Institutions Code, the Healthy Families Program, provided pursuant
to Part 6.2 (commencing with Section 12693) of Division 2 of the
Insurance Code, and the Access for Infants and Mothers Program,
provided pursuant to Part 6.3 (commencing with Section 12695)
of Division 2 of the Insurance Code, where the verification or
determination is directly connected with, and limited to, the
administration begin insert and funding end insert of the state health subsidy programs
referenced in this clause.

(ii) Verifying or determining the eligibility of an applicant for,
or a recipient of, federal subsidies offered through the California
Health Benefit Exchange, provided pursuant to Title 22
(commencing with Section 100500) of the Government Code,
including federal tax credits and cost-sharing assistance pursuant
to the federal Patient Protection and Affordable Care Act, (Public
Law 111-148), as amended by the federal Health Care and
Education Reconciliation Act of 2010 (Public Law 111-152), where
the verification or determination is directly connected with, and
limited to, the administration of the California Health Benefit
Exchange.

(iii) Verifying or determining the eligibility of employees and
employers for health coverage through the Small Business Health
Options Program, provided pursuant to Section 100502 of the
Government Code, where the verification or determination is
directly connected with, and limited to, the administration of the
Small Business Health Options Program.

(g) For purposes of this section, “employer” includes a labor
union hiring hall.

(h) This section shall become operative on July 1, 1998.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1095 of the end insert begin insert Unemployment Insurance Code end insert begin insert is
amended to read: end insert

1095.  

The director shall permit the use of any information in
his or her possession to the extent necessary for any of the
following purposes and may require reimbursement for all direct
costs incurred in providing any and all information specified in
this section, except information specified in subdivisions (a) to
(e), inclusive:

(a) To enable the director or his or her representative to carry
out his or her responsibilities under this code.

(b) To properly present a claim for benefits.

(c) To acquaint a worker or his or her authorized agent with his
or her existing or prospective right to benefits.

(d) To furnish an employer or his or her authorized agent with
information to enable him or her to fully discharge his or her
obligations or safeguard his or her rights under this division or
Division 3 (commencing with Section 9000).

(e) To enable an employer to receive a reduction in contribution
rate.

(f) To enable federal, state, or local government departments
or agencies, subject to federal law, to verify or determine the
eligibility or entitlement of an applicant for, or a recipient of, public
social services provided pursuant to Division 9 (commencing with
Section 10000) of the Welfare and Institutions Code, or Part A of
Title IV of the Social Security Act, where the verification or
determination is directly connected with, and limited to, the
administration begin insert and funding end insert of public social services.

(g) To enable county administrators of general relief or
assistance, or their representatives, to determine entitlement to
locally provided general relief or assistance, where the
determination is directly connected with, and limited to, the
administration of general relief or assistance.

(h) To enable state or local governmental departments or
agencies to seek criminal, civil, or administrative remedies in
connection with the unlawful application for, or receipt of, relief
provided under Division 9 (commencing with Section 10000) of
the Welfare and Institutions Code or to enable the collection of
expenditures for medical assistance services pursuant to Part 5
(commencing with Section 17000) of Division 9 of the Welfare
and Institutions Code.

(i) To provide any law enforcement agency with the name,
address, telephone number, birth date, social security number,
physical description, and names and addresses of present and past
employers, of any victim, suspect, missing person, potential
witness, or person for whom a felony arrest warrant has been
issued, when a request for this information is made by any
investigator or peace officer as defined by Sections 830.1 and
830.2 of the Penal Code, or by any federal law enforcement officer
to whom the Attorney General has delegated authority to enforce
federal search warrants, as defined under Sections 60.2 and 60.3
of Title 28 of the Code of Federal Regulations, as amended, and
when the requesting officer has been designated by the head of
the law enforcement agency and requests this information in the
course of and as a part of an investigation into the commission of
a crime when there is a reasonable suspicion that the crime is a
felony and that the information would lead to relevant evidence.
The information provided pursuant to this subdivision shall be
provided to the extent permitted by federal law and regulations,
and to the extent the information is available and accessible within
the constraints and configurations of existing department records.
Any person who receives any information under this subdivision
shall make a written report of the information to the law
enforcement agency that employs him or her, for filing under the
normal procedures of that agency.

(1) This subdivision shall not be construed to authorize the
release to any law enforcement agency of a general list identifying
individuals applying for or receiving benefits.

(2) The department shall maintain records pursuant to this
subdivision only for periods required under regulations or statutes
enacted for the administration of its programs.

(3) This subdivision shall not be construed as limiting the
information provided to law enforcement agencies to that pertaining
only to applicants for, or recipients of, benefits.

(4) The department shall notify all applicants for benefits that
release of confidential information from their records will not be
protected should there be a felony arrest warrant issued against
the applicant or in the event of an investigation by a law
enforcement agency into the commission of a felony.

(j) To provide public employee retirement systems in California
with information relating to the earnings of any person who has
applied for or is receiving a disability income, disability allowance,
or disability retirement allowance, from a public employee
retirement system. The earnings information shall be released only
upon written request from the governing board specifying that the
person has applied for or is receiving a disability allowance or
disability retirement allowance from its retirement system. The
request may be made by the chief executive officer of the system
or by an employee of the system so authorized and identified by
name and title by the chief executive officer in writing.

(k) To enable the Division of Labor Standards Enforcement in
the Department of Industrial Relations to seek criminal, civil, or
administrative remedies in connection with the failure to pay, or
the unlawful payment of, wages pursuant to Chapter 1
(commencing with Section 200) of Part 1 of Division 2 of, and
Chapter 1 (commencing with Section 1720) of Part 7 of Division
2 of, the Labor Code.

(l) To enable federal, state, or local governmental departments
or agencies to administer child support enforcement programs
under Title IV of the federal Social Security Act (42 U.S.C. Sec.
651 et seq.).

(m) To provide federal, state, or local governmental departments
or agencies with wage and claim information in its possession that
will assist those departments and agencies in the administration
of the Victims of Crime Program or in the location of victims of
crime who, by state mandate or court order, are entitled to
restitution that has been or can be recovered.

(n) To provide federal, state, or local governmental departments
or agencies with information concerning any individuals who are
or have been:

(1) Directed by state mandate or court order to pay restitution,
fines, penalties, assessments, or fees as a result of a violation of
law.

(2) Delinquent or in default on guaranteed student loans or who
owe repayment of funds received through other financial assistance
programs administered by those agencies. The information released
by the director for the purposes of this paragraph shall not include
unemployment insurance benefit information.

(o) To provide an authorized governmental agency with any or
all relevant information that relates to any specific workers’
compensation insurance fraud investigation. The information shall
be provided to the extent permitted by federal law and regulations.
For the purposes of this subdivision, “authorized governmental
agency” means the district attorney of any county, the office of
the Attorney General, the Contractors’ State License Board, the
Department of Industrial Relations, and the Department of
Insurance. An authorized governmental agency may disclose this
information to the State Bar, the Medical Board of California, or
any other licensing board or department whose licensee is the
subject of a workers’ compensation insurance fraud investigation.
This subdivision shall not prevent any authorized governmental
agency from reporting to any board or department the suspected
misconduct of any licensee of that body.

(p) To enable the Director of the Bureau for Private
Postsecondary Education, or his or her representatives, to access
unemployment insurance quarterly wage data on a case-by-case
basis to verify information on school administrators, school staff,
and students provided by those schools who are being investigated
for possible violations of Chapter 8 (commencing with Section
94800) of Part 59 of Division 10 of Title 3 of the Education Code.

(q) To provide employment tax information to the tax officials
of Mexico, if a reciprocal agreement exists. For purposes of this
subdivision, “reciprocal agreement” means a formal agreement to
exchange information between national taxing officials of Mexico
and taxing authorities of the State Board of Equalization, the
Franchise Tax Board, and the Employment Development
Department. Furthermore, the reciprocal agreement shall be limited
to the exchange of information that is essential for tax
administration purposes only. Taxing authorities of the State of
California shall be granted tax information only on California
residents. Taxing authorities of Mexico shall be granted tax
information only on Mexican nationals.

(r) To enable city and county planning agencies to develop
economic forecasts for planning purposes. The information shall
be limited to businesses within the jurisdiction of the city or county
whose planning agency is requesting the information, and shall
not include information regarding individual employees.

(s) To provide the State Department of Developmental Services
with wage and employer information that will assist in the
collection of moneys owed by the recipient, parent, or any other
legally liable individual for services and supports provided pursuant
to Chapter 9 (commencing with Section 4775) of Division 4.5 of,
and Chapter 2 (commencing with Section 7200) and Chapter 3
(commencing with Section 7500) of Division 7 of, the Welfare
and Institutions Code.

(t) To provide the State Board of Equalization with employment
tax information that will assist in the administration of tax
programs. The information shall be limited to the exchange of
employment tax information essential for tax administration
purposes to the extent permitted by federal law and regulations.

(u) Nothing in this section shall be construed to authorize or
permit the use of information obtained in the administration of this
code by any private collection agency.

(v) The disclosure of the name and address of an individual or
business entity that was issued an assessment that included
penalties under Section 1128 or 1128.1 shall not be in violation
of Section 1094 if the assessment is final. The disclosure may also
include any of the following:

(1) The total amount of the assessment.

(2) The amount of the penalty imposed under Section 1128 or
1128.1 that is included in the assessment.

(3) The facts that resulted in the charging of the penalty under
Section 1128 or 1128.1.

(w) To enable the Contractors’ State License Board to verify
the employment history of an individual applying for licensure
pursuant to Section 7068 of the Business and Professions Code.

(x) To provide any peace officer with the Division of
Investigation in the Department of Consumer Affairs information
pursuant to subdivision (i) when the requesting peace officer has
been designated by the Chief of the Division of Investigation and
requests this information in the course of and as part of an
investigation into the commission of a crime or other unlawful act
when there is reasonable suspicion to believe that the crime or act
may be connected to the information requested and would lead to
relevant information regarding the crime or unlawful act.

(y) To enable the Labor Commissioner of the Division of Labor
Standards Enforcement in the Department of Industrial Relations
to identify, pursuant to Section 90.3 of the Labor Code, unlawfully
uninsured employers. The information shall be provided to the
extent permitted by federal law and regulations.

(z) To enable the Chancellor of the California Community
Colleges, in accordance with the requirements of Section 84754.5
of the Education Code, to obtain quarterly wage data, commencing
January 1, 1993, on students who have attended one or more
community colleges, to assess the impact of education on the
employment and earnings of students, to conduct the annual
evaluation of district-level and individual college performance in
achieving priority educational outcomes, and to submit the required
reports to the Legislature and the Governor. The information shall
be provided to the extent permitted by federal statutes and
regulations.

(aa) To enable the Public Employees’ Retirement System to
seek criminal, civil, or administrative remedies in connection with
the unlawful application for, or receipt of, benefits provided under
Part 3 (commencing with Section 20000) of Division 5 of Title 2
of the Government Code.

(ab) To enable the State Department of Education, the University
of California, the California State University, and the Chancellor
of the California Community Colleges, pursuant to the
requirements prescribed by the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), to obtain quarterly
wage data, commencing July 1, 2010, on students who have
attended their respective systems to assess the impact of education
on the employment and earnings of those students, to conduct the
annual analysis of district-level and individual district or
postsecondary education system performance in achieving priority
educational outcomes, and to submit the required reports to the
Legislature and the Governor. The information shall be provided
to the extent permitted by federal statutes and regulations.

(ac) To provide the Agricultural Labor Relations Board with
employee, wage, and employer information, for use in the
investigation or enforcement of the
Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations
Act of 1975 (Part 3.5 (commencing with Section 1140) of Division
2 of the Labor Code). The information shall be provided to the
extent permitted by federal statutes and regulations.

(ad) (1) To enable the State Department of Health Care
Services, the California Health Benefit Exchange, the Managed
Risk Medical Insurance Board, and county departments and
agencies to obtain information regarding employee wages,
California employer names and begin delete account end delete begin insert state employer
identification end insert numbers, employer reports of wages and number of
employees, and disability insurance and unemployment insurance
claim information, for the purpose of:

(A) Verifying or determining the eligibility of an applicant for,
or a recipient of, state health subsidy programs, limited to the
Medi-Cal Program, provided pursuant to Chapter 7 (commencing
with Section 14000) of Part 3 of Division 9 of the Welfare and
Institutions Code, the Healthy Families Program, provided pursuant
to Part 6.2 (commencing with Section 12693) of Division 2 of the
Insurance Code, and the Access for Infants and Mothers Program,
provided pursuant to Part 6.3 (commencing with Section 12695)
of Division 2 of the Insurance Code, where the verification or
determination is directly connected with, and limited to, the
administration begin insert and funding end insert of the state health subsidy programs
referenced in this subparagraph.

(B) Verifying or determining the eligibility of an applicant for,
or a recipient of, federal subsidies offered through the California
Health Benefit Exchange, provided pursuant to Title 22
(commencing with Section 100500) of the Government Code,
including federal tax credits and cost-sharing assistance pursuant
to the federal Patient Protection and Affordable Care Act (Public
Law 111-148), as amended by the federal Health Care and
Education Reconciliation Act of 2010 (Public Law 111-152), where
the verification or determination is directly connected with, and
limited to, the administration of the California Health Benefit
Exchange.

(C) Verifying or determining the eligibility of employees and
employers for health coverage through the Small Business Health
Options Program, provided pursuant to Section 100502 of the
Government Code, where the verification or determination is
directly connected with, and limited to, the administration of the
Small Business Health Options Program.

(2) The information provided under this subdivision shall be
subject to the requirements of, and provided to the extent permitted
by, federal law and regulations, including Part 603 of Title 20 of
the Code of Federal Regulations.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 11025 of the end insert begin insert Welfare and Institutions Code end insert begin insert is
amended to read: end insert

11025.  

(a) The State Department of Social Services and the
State Department of Health Services shall utilize the records of
the Franchise Tax Board to match unearned income against
reported income of applicants for and recipients of aid or public
social services begin insert and to match social security numbers of applicants
for and recipients of aid or public services with their employer’s
state employer identification number end insert under this division. The
matching information shall then be forwarded to the appropriate
county welfare department begin insert or other appropriate state departments end insert
for use in determining the eligibility of, and proper grant amount
for, applicants for, and recipients of, aid or public social services
under this division. Any and all documents and records that result
from the matching of records with the Franchise Tax Board shall
be subject to the confidentiality requirements of Section 10850.

(b) This section shall not be construed to supersede the
requirements and protections in the California Right to Financial
Privacy Act under Chapter 20 (commencing with Section 7460)
of Division 7 of Title 1 of the Government Code in obtaining
information in possession of any financial institution.

(c) This section shall be implemented only to the extent it is
funded in the annual Budget Act.

begin delete

SECTION 1.  

Section 14000 of the Welfare and Institutions
Code is amended to read:

14000.  

(a) The purpose of this chapter is to afford to qualifying
individuals health care and related remedial or preventive services,
including related social services that are necessary for those
receiving health care under this chapter.

(b) The intent of the Legislature is to provide, to the extent
practicable, through the provisions of this chapter, for health care
for those aged and other persons, including family persons who
lack sufficient annual income to meet the costs of health care, and
whose other assets are so limited that their application toward the
costs of such care would jeopardize the person or family’s future
minimum self-maintenance and security. It is intended that
whenever possible and feasible:

(1) The means employed shall allow, to the extent practicable,
eligible persons to secure health care in the same manner employed
by the public generally, and without discrimination or segregation
based purely on their economic disability. The means employed
shall include an emphasis on efforts to arrange and encourage
access to health care through enrollment in organized, managed
care plans of the type available to the general public.

(2) The benefits available under this chapter shall not duplicate
those provided under other federal or state laws or under other
contractual or legal entitlements of the person or persons receiving
them.

(3) In the administration of this chapter and in establishing the
means to be used to provide access to health care to persons eligible
under this chapter, the department shall emphasize and take
advantage of both the efficient organization and ready accessibility
and availability of health care facilities and resources through
enrollment in managed health care plans and new and innovative
fee-for-service managed health care plan approaches to the delivery
of health care services.

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