BILL NUMBER: AB 880 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 11, 2013
AMENDED IN ASSEMBLY MARCH 21, 2013
INTRODUCED BY Assembly Member Gomez
FEBRUARY 22, 2013
An act to amend Section 19548.5 of the Revenue and
Taxation Code add Section 230.9 to the Labor Code
, to amend Sections 1088.5 and 1095 of , and to add
Section 976.7 to, the Unemployment Insurance Code, and to amend
Section 11025 of , and to add Article 7 (commencing with
Section 14199) to Chapter 7 of Part 3 of Division 9 of, the
Welfare and Institutions Code, relating to data collection
health care coverage, making an appropriation therefor
.
LEGISLATIVE COUNSEL'S DIGEST
AB 880, as amended, Gomez. Data collection.
Medi-Cal program costs: large employer responsibility.
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. Existing law, the federal Patient Protection and
Affordable Care Act, requires applicable large employers, as
defined, who offer full-time employees and their dependents the
opportunity to enroll in minimum essential coverage and for whom one
full-time employee has been certified as having enrolled in a
qualified health plan for which a premium tax credit or cost-sharing
reduction is allowed or paid, to pay a specified fee.
This bill would require a large employer, as defined, to pay the
Employment Development Department an employer responsibility penalty
for each covered employee, as defined, enrolled in Medi-Cal based on
the average cost of coverage provided by large employers to their
employees, including both the employer's and employee's share of the
premiums, as specified. The bill would establish the Employer
Responsibility for Medi-Cal Trust Fund, which would consist of the
penalty amounts collected pursuant to these provisions and would
require that the moneys in the fund be continuously appropriated to
the State Department of Health Care Services to provide payment for
the nonfederal share of Medi-Cal expenditures for covered employees,
to increase the reimbursement of Medi-Cal providers, to provide
reimbursement to county health systems, community clinics, and other
entities that provide care without expectation of compensation to
those Californians who do not have minimum essential coverage, as
defined, and for all costs to implement the penalty provisions, as
specified.
This bill would make it unlawful for a large employer to, among
other things, designate an employee as an independent contractor or
temporary employee, reduce an employee's hours or work, or terminate
an employee if the purpose is to avoid the imposition of the penalty.
A violation of those provisions would result in a penalty of 200% of
the penalty amount the employer would have paid for the applicable
period of time. The bill would prohibit a large employer from
discharging or taking other action, as specified, against an employee
who enrolls in a public health benefit program or the California
Health Benefit Exchange and would make the willful refusal of the
employer to rehire, promote, or otherwise restore the employee or
former employee a misdemeanor. By establishing a new crime, this bill
would impose a state-mandated local program.
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.
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.
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.
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.
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.
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.
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.
This bill would authorize the director to provide information to
enable these entities to obtain information regarding state employer
identification numbers.
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.
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.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The
Legislature finds and declares all of the following:
(1) Working Californians should have affordable, comprehensive
health insurance coverage.
(2) Most working Californians obtain their health insurance
coverage through their employment, but some working Californians are
covered by Medi-Cal and, commencing in 2014, some will be covered
through Covered California, the California Health Benefit Exchange
(Exchange).
(3) In 2012, more than 7,000,000 Californians lacked health
insurance coverage at some time in the year. The federal Patient
Protection and Affordable Care Act (PPACA) is expected to reduce the
number of Californians without health insurance coverage by providing
coverage through changes to the Medi-Cal program and the creation of
the Exchange.
(4) PPACA sets a standard for what constitutes affordable,
employment-based coverage and imposes penalties on any large employer
whose full-time, nonseasonal employees receive coverage through the
Exchange. Federal law imposes no penalty on large employers whose
employees receive coverage through the taxpayer-funded Medi-Cal
program.
(5) Employers who fail to provide affordable coverage to low-wage
workers who are covered by Medi-Cal shift the cost of health care
coverage from the employer to the taxpayer. Employers can avoid the
employer responsibility penalty of PPACA by reducing wages, hours
worked, or both, so that workers are no longer full-time, full-year
employees within the meaning of PPACA. Workers who face low wages,
work part-time, or both, are too often eligible for taxpayer-funded
Medi-Cal instead of affordable, employer-based coverage.
(6) Persons who are covered by health insurance have better health
outcomes than those who lack coverage. Persons without health
insurance coverage are more likely to be in poor health, more likely
to miss needed medications and treatment, and more likely to have
chronic conditions that are not properly managed.
(7) Persons without health insurance coverage are at risk of
financial ruin. Medical debt is the second most common cause of
personal bankruptcy in the United States.
(8) California provides health insurance coverage to low-income
workers through the Medi-Cal program. The taxpaying public pays the
cost of coverage for those working people who are not provided health
care coverage through employment. The number of working people whose
coverage is provided through the Medi-Cal program is expected to
increase because of PPACA.
(9) Taxpayers, through state and local governments, fund county
hospitals and clinics, community clinics, and other safety net
providers that provide care to those working people whose employers
fail to provide affordable health care coverage to their employees as
well as to other uninsured persons.
(10) Controlling health care costs can be more readily achieved if
a greater share of working people and their families have health
benefits so that cost shifting is minimized.
(11) The social and economic burden created by the lack of health
care coverage for some workers and the coverage of other workers
through the Medi-Cal program creates a burden on other employers, the
state, affected workers, and the families of affected workers who
suffer ill health and risk financial ruin.
(b) It is therefore the intent of the Legislature to do all of the
following:
(1) Ensure that large employers pay a fair share penalty for
health coverage received by their employees through the Medi-Cal
program and to base that penalty on the cost of coverage provided by
other large employers to their employees.
(2) Encourage the provision of affordable employer-based coverage
to low-wage employees who would otherwise be eligible for the
Medi-Cal program and to discourage employers from reducing hours,
wages, or both in order to avoid the employer responsibility penalty
of PPACA by extending an employer responsibility penalty to employers
with employees covered by the Medi-Cal program.
(3) Ensure that employees who receive coverage through the
Medi-Cal program are protected from any possible retaliation by their
employer for seeking or obtaining that coverage.
SEC. 2. Section 230.9 is added to the
Labor Code , to read:
230.9. (a) It shall be unlawful for a large employer, as defined
in Section 14199.1 of the Welfare and Institutions Code, to designate
an employee as an independent contractor or temporary employee,
reduce an employee's hours of work, or terminate an employee if the
purpose of the action is to avoid the employer's obligations under
Article 7 (commencing with Section 14199) of Chapter 7 of Part 3 of
Division 9 of the Welfare and Institutions Code.
(b) A large employer shall not request or otherwise seek to obtain
information concerning income, family income, or other eligibility
requirements for public health benefit programs regarding an
employee, other than that information about the employee's employment
status otherwise known to the employer consistent with state and
federal law and regulation.
(c) A large employer shall not require as a condition of
employment that an employee not enroll in or disenroll from a public
health benefit program, including, but not limited to, the Medi-Cal
program, or the California Health Benefit Exchange.
(d) An employer may not discharge or in any manner discriminate or
retaliate against an employee who enrolls in a public health benefit
program, including, but not limited to, the Medi-Cal program, or the
California Health Benefit Exchange.
(e) Any employee who is discharged, threatened with discharge,
demoted, suspended, or in any other manner discriminated or
retaliated against in the terms and conditions of employment by his
or her employer because the employee has enrolled in a public health
benefit program or the California Health Benefit Exchange shall be
entitled to reinstatement and reimbursement for lost wages and work
benefits caused by the acts of the employer.
(f) A large employer who willfully refuses to rehire, promote, or
otherwise restore an employee or former employee described in this
section who has been determined to be eligible for rehiring or
promotion by a grievance procedure or hearing authorized by law is
guilty of a misdemeanor.
(g) An employer who violates this section shall be charged a
penalty of 200 percent of the amount of any fee that would have
otherwise been paid by the employer for the period for covered
employees under Article 7 (commencing with Section 14199) of Chapter
7 of Part 3 of Division 9.
SEC. 3. Section 976.7 is added to the
Unemployment Insurance Code , to read:
976.7. (a) In addition to other contributions required by this
division and consistent with the requirements of Article 7
(commencing with Section 14199) of Chapter 7 of Part 3 of Division 9
of the Welfare and Institutions Code, a large employer, as defined in
Section 14199.1 of the Welfare and Institution Code, shall pay to
the department, for deposit into the Employer Responsibility for
Medi-Cal Trust Fund, any penalties imposed pursuant to Article 7
(commencing with Section 14199) of Chapter 7 of Part 3 of Division 9
of the Welfare and Institutions Code. The penalty shall be collected
in the same manner and at the same time as any contributions required
under Sections 976 and 1088.
(b) A large employer shall provide information to all newly hired
and existing employees regarding the availability of Medi-Cal
coverage for low-income employees, including the availability of
Medi-Cal premium assistance as well as Medi-Cal coverage for persons
whose income is less than the modified adjusted gross income
threshold established for the Medi-Cal program 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). The department, in
consultation with the State Department of Health Care Services, shall
develop a simple, uniform notice containing that information.
SECTION 1. Section 19548.5 of the Revenue and
Taxation Code is amended to read:
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.
(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.
(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.
SEC. 2. SEC. 4. Section 1088.5 of
the Unemployment Insurance Code is amended to read:
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 and funding 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 and funding 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.
SEC. 3. SEC. 5. Section 1095 of the
Unemployment Insurance Code is amended to read:
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 and funding 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
state employer identification 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 and funding 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.
SEC. 4. SEC. 6. Section 11025 of the
Welfare and Institutions Code is amended to read:
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 and
to match social security numbers of applicants for and recipients of
aid or public services with their employer's state employer
identification number under this division. The matching information
shall then be forwarded to the appropriate county welfare department
or other appropriate state departments 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.
SEC. 7. Article 7 (commencing with Section 14199)
is added to Chapter 7 of Part 3 of Division 9 of the
Welfare and Institutions Code , to read:
Article 7. Employer Responsibility for Cost of Employees
Covered under the Medi-Cal program
14199. This article shall be known, and may be cited, as the
Employer Responsibility for Medi-Cal Cost of Employees Act of 2013.
14199.1. For purposes of this article, the following definitions
shall apply:
(a) (1) "Covered employee" means an individual who meets all of
the following:
(A) He or she is an employee of a large employer.
(B) He or she is enrolled in Medi-Cal on the basis of his or her
modified adjusted gross income in accordance with PPACA.
(C) He or she is not a person who is enrolled in Medi-Cal by
reason of disability or being over 65 years of age.
(D) He or she works more than eight hours per week for the
employer.
(2) A "covered employee" includes a leased employee or other
individual under the direction and control of the employer.
(b) "Department" means the State Department of Health Care
Services.
(c) "Employer" means an employing unit as defined in Section 135
of the Unemployment Insurance Code. For purposes of this article, an
employer includes all of the members of a controlled group of
corporations. A "controlled group of corporations" means controlled
group of corporations as defined in Section 1563(a) of the Internal
Revenue Code, except that "more than 50 percent" shall be substituted
for "at least 80 percent" each place it appears in Section 1563(a)
(1) of the Internal Revenue Code, and the determination shall be made
without regard to Sections 1563(a)(4) and 1563(e)(3)(C) of the
Internal Revenue Code.
(d) "Fund" means a the Employer Responsibility for Medi-Cal Trust
Fund, established pursuant to Section 14199.12.
(e) (1) "Large employer" means an employer employing for wages or
salary 500 or more persons to work in this state.
(2) For purposes of this article only, "large employer" shall not
include a state, city, county, city and county, district or any other
governmental employer.
(3) For purposes of this article only, "large employer" shall
include employers who are nonprofit entities for purposes of state or
federal corporate income taxes, for purposes of state or local
property taxes, or for any other tax purpose.
(f) "PPACA" means 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).
(g) "Wages" means wages as defined in subdivision (a) of Section
200 of the Labor Code paid directly to an individual by his or her
employer.
14199.8. (a) Except as otherwise provided in this article, every
large employer shall pay an employer responsibility penalty, as
determined pursuant to Section 14199.9.
(b) An employer responsibility penalty shall not be incurred by a
state, county, city, city and county, district, or any other
governmental entity.
(c) A large employer shall pay an employer responsibility penalty
for each covered employee as defined in this article.
14199.9. (a) (1) The amount of the employer responsibility
penalty shall be based on the average cost of health care coverage
provided by large employers to their employees, including both the
employer and employee share of premium.
(2) The amount of the employer responsibility penalty shall be set
at 110 percent of the average cost of coverage as determined
pursuant to subdivision (b) to cover the necessary costs of
administration incurred by the State Department of Health Care
Services, the Employment Development Department, the Franchise Tax
Board, or any other state government agency.
(b) (1) The average cost of health care coverage provided by large
employers shall be determined using the information provided by
health plans pursuant to Section 1385.04 of the Health and Safety
Code and by health insurers pursuant to Section 10181.4 of the
Insurance Code.
(2) If information about the average cost of large employer health
care coverage is not provided by the department that regulates the
majority of large employer plans or policies, the average cost shall
be determined using a statistically valid, scientifically reliable
survey of large employers, which may be conducted by a nonprofit
foundation established as a result of the conversion of a health care
service plan from a nonprofit to for-profit tax status.
(c) The employer responsibility penalty shall be determined by
multiplying the amount described in paragraph (2) of subdivision (a)
by a fraction, the numerator of which is the employer's total annual
wage payments to all covered employees and the denominator of which
is the employer's total annual payroll.
(d) The department shall obtain the information necessary to
determine this penalty from the Employment Development Department.
14199.10. The department shall provide notice to the Employment
Development Department of the amount of the employer responsibility
penalty in a time and manner that permits the Employment Development
Department to provide notice to all large employers of the estimated
penalty for the budget year pursuant to Section 976.7 of the
Unemployment Insurance Code.
14199.11. All moneys collected pursuant to this article shall be
deposited in the Employer Responsibility for Medi-Cal Trust Fund
created pursuant to Section 14199.12.
14199.12. (a) The Employer Responsibility for Medi-Cal Trust Fund
is hereby created in the State Treasury.
(b) The fund shall consist of moneys collected pursuant to this
article.
(c) Notwithstanding Section 13340 of the Government Code, moneys
in the fund are continuously appropriated to the State Department of
Health Care Services for the following purposes:
(1) To provide payment for the nonfederal share of Medi-Cal costs
for covered employees.
(2) To increase reimbursement of providers of care for covered
employees.
(3) To provide reimbursement to county health systems, community
clinics, and other entities that provide care without expectation of
compensation to those Californians who do not have minimum essential
coverage as defined in Section 5000A of Title 26 of the United States
Code.
(d) All costs to implement this article shall be paid from moneys
deposited in the Employer Responsibility for Medi-Cal Trust Fund,
including any necessary costs incurred by the department, the
Employment Development Department, the Franchise Tax Board, or any
other state government agency.
14199.13. (a) The department shall match social security numbers
of low-income individuals covered by the Medi-Cal program with
information provided by the Employment Development Department and, if
necessary, the Franchise Tax Board to determine whether the
individuals are covered employees within the meaning of this article.
(b) The department shall provide information about covered
employees to the Franchise Tax Board in order to permit the
collection of the employer responsibility penalty imposed pursuant to
this article.
(c) Any and all documents and records that result from the
matching of records with the Franchise Tax Board and Employment
Development Department shall be subject to the confidentiality
requirements of Section 14100.2.
(d) 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.
SEC. 8. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.