BILL NUMBER: AB 1560 AMENDED BILL TEXT AMENDED IN ASSEMBLY JULY 3, 2014 AMENDED IN ASSEMBLY APRIL 2, 2014 AMENDED IN ASSEMBLY MARCH 5, 2014 INTRODUCED BY Assembly MemberGorellQuirk-Silva ( Principal coauthors: Assembly Members Gorell, Linder, Muratsuchi, Salas, and Wilk )(Coauthors:Assembly MembersBigelow,Chávez,Donnelly,Hagman,Harkey,Jones,Nestande,and Waldron)(Coauthors:SenatorsBerryhill,Cannella,Gaines,Huff,and Vidak)JANUARY 29, 2014 An act toadd Section 100509 to the Government Code, relating to health care coverage,amend Sections 17059.2 and 23689 of the Revenue and Taxation Code, relating to economic development, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 1560, as amended,GorellQuirk-Silva .California Health Benefit Exchange: confidentiality of personal information.Income taxes: credits: California Competes Tax Credit. Existing law allows a credit against the taxes imposed under the Corporation Tax Law and the Personal Income Tax Law for each taxable year beginning on or after January 1, 2014, and before January 1, 2025, in an amount as provided in a written agreement between the Governor's Office of Business and Economic Development and the taxpayer, agreed upon by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer. Existing law limits the aggregate amount of credits allocated to taxpayers to a specified sum per fiscal year. This bill would reduce this aggregate amount of credits that may be allocated to taxpayers per fiscal year by the phased aggregate amount allowed to taxpayers pursuant to the credit proposed by Assembly Bill 2389 with regard to the manufacture of a new advanced strategic aircraft, and would also authorize the Director of Finance to increase the aggregate amount of the economic development credits that may be allocated to taxpayers each year by $25 million per year through 2019. These provisions would become operative only if AB 2389 is enacted and becomes effective on or before January 1, 2015.Existing law, the federal Patient Protection and Affordable Care Act (PPACA), requires each state to establish an American Health Benefit Exchange by January 1, 2014, that makes available qualified health plans to qualified individuals and small employers. PPACA prohibits an Exchange from using or disclosing the personally identifiable information it creates or collects other than to the extent necessary to carry out specified functions. Existing law also requires an Exchange to establish and implement privacy and security standards that are consistent with specified principles and to require the same or more stringent privacy and security standards as a condition of contract or agreement with individuals or entities. A person who knowingly and willfully uses or discloses information in violation of PPACA is subject to a civil penalty of no more than $25,000 per person or entity, per use or disclosure, in additional to any other penalties prescribed by law.Existing state law establishes the California Health Benefit Exchange within state government, specifies the powers and duties of the board governing the Exchange, and requires the board to facilitate the purchase of qualified health plans through the Exchange by qualified individuals and small employers by January 1, 2014. Existing law requires the board to employ necessary staff and authorizes the board to enter into contracts. Under existing law, the board of the Exchange is required to submit fingerprint images to the Department of Justice for all employees, prospective employees, contractors, subcontractors, volunteers, or vendors of the Exchange whose duties include access to specified personal information for the purposes of obtaining state or federal conviction records, as specified.This bill would prohibit the Exchange from disclosing an individual's personal information, as defined, to 3rd parties for the purpose of determining eligibility for, or enrolling the individual in, health care coverage unless, prior to the disclosure, the individual confirms his or her eligibility for a qualified health plan offered by the Exchange, and receives an estimate for the cost of the qualified health plans he or she may purchase, and the Exchange obtains the individual's written consent to the disclosure, as prescribed. The bill would also require the Exchange to immediately notify the public of any breach of the security of personal information created, collected, or maintained by the Exchange, regardless of the severity of the breach and regardless of whether personal information was acquired by an unauthorized person during the breach.This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 17059.2 of the Revenue and Taxation Code is amended to read: 17059.2. (a) (1) For each taxable year beginning on and after January 1, 2014, and before January 1, 2025, there shall be allowed as a credit against the "net tax," as defined in Section 17039, an amount as determined by the committee pursuant to paragraph (2) and approved pursuant to Section 18410.2. (2) The credit under this section shall be allocated by GO-Biz with respect to the 2013-14 fiscal year through and including the 2017-18 fiscal year. The amount of credit allocated to a taxpayer with respect to a fiscal year pursuant to this section shall be as set forth in a written agreement between GO-Biz and the taxpayer and shall be based on the following factors: (A) The number of jobs the taxpayer will create or retain in this state. (B) The compensation paid or proposed to be paid by the taxpayer to its employees, including wages and fringe benefits. (C) The amount of investment in this state by the taxpayer. (D) The extent of unemployment or poverty in the area according to the United States Census in which the taxpayer's project or business is proposed or located. (E) The incentives available to the taxpayer in this state, including incentives from the state, local government, and other entities. (F) The incentives available to the taxpayer in other states. (G) The duration of the proposed project and the duration the taxpayer commits to remain in this state. (H) The overall economic impact in this state of the taxpayer's project or business. (I) The strategic importance of the taxpayer's project or business to the state, region, or locality. (J) The opportunity for future growth and expansion in this state by the taxpayer's business. (K) The extent to which the anticipated benefit to the state exceeds the projected benefit to the taxpayer from the tax credit. (3) The written agreement entered into pursuant to paragraph (2) shall include: (A) Terms and conditions that include the taxable year or years for which the credit allocated shall be allowed, a minimum compensation level, and a minimum job retention period. (B) Provisions indicating whether the credit is to be allocated in full upon approval or in increments based on mutually agreed upon milestones when satisfactorily met by the taxpayer. (C) Provisions that allow the committee to recapture the credit, in whole or in part, if the taxpayer fails to fulfill the terms and conditions of the written agreement. (b) For purposes of this section: (1) "Committee" means the California Competes Tax Credit Committee established pursuant to Section 18410.2. (2) "GO-Biz" means the Governor's Office of Business and Economic Development. (c) For purposes of this section, GO-Biz shall do the following: (1) Give priority to a taxpayer whose project or business is located or proposed to be located in an area of high unemployment or poverty. (2) Negotiate with a taxpayer the terms and conditions of proposed written agreements that provide the credit allowed pursuant to this section to a taxpayer. (3) Provide the negotiated written agreement to the committee for its approval pursuant to Section 18410.2. (4) Inform the Franchise Tax Board of the terms and conditions of the written agreement upon approval of the written agreement by the committee. (5) Inform the Franchise Tax Board of any recapture, in whole or in part, of a previously allocated credit upon approval of the recapture by the committee. (6) Post on its Internet Web site all of the following: (A) The name of each taxpayer allocated a credit pursuant to this section. (B) The estimated amount of the investment by each taxpayer. (C) The estimated number of jobs created or retained. (D) The amount of the credit allocated to the taxpayer. (E) The amount of the credit recaptured from the taxpayer, if applicable. (d) For purposes of this section, the Franchise Tax Board shall do all of the following: (1) (A) Except as provided in subparagraph (B), review the books and records of all taxpayers allocated a credit pursuant to this section to ensure compliance with the terms and conditions of the written agreement between the taxpayer and GO-Biz. (B) In the case of a taxpayer that is a "small business," as defined in Section 17053.73, review the books and records of the taxpayer allocated a credit pursuant to this section to ensure compliance with the terms and conditions of the written agreement between the taxpayer and GO-Biz when, in the sole discretion of the Franchise Tax Board, a review of those books and records is appropriate or necessary in the best interests of the state. (2) Notwithstanding Section 19542: (A) Notify GO-Biz of a possible breach of the written agreement by a taxpayer and provide detailed information regarding the basis for that determination. (B) Provide information to GO-Biz with respect to whether a taxpayer is a "small business," as defined in Section 17053.73. (e) In the case where the credit allowed under this section exceeds the "net tax," as defined in Section 17039, for a taxable year, the excess credit may be carried over to reduce the "net tax" in the following taxable year, and succeeding five taxable years, if necessary, until the credit has been exhausted. (f) Any recapture, in whole or in part, of a credit approved by the committee pursuant to Section 18410.2 shall be treated as a mathematical error appearing on the return. Any amount of tax resulting from that recapture shall be assessed by the Franchise Tax Board in the same manner as provided by Section 19051. The amount of tax resulting from the recapture shall be added to the tax otherwise due by the taxpayer for the taxable year in which the committee's recapture determination occurred. (g) (1) The aggregate amount of credit that may be allocated in any fiscal year pursuant to this section and Section 23689 shall be an amount equal to the sum of subparagraphs (A), (B), and (C), less the amount specified insubparagraph (D)subparagraphs (D) and (E), and plus the amount specified in paragraph (f) : (A) Thirty million dollars ($30,000,000) for the 2013-14 fiscal year, one hundred fifty million dollars ($150,000,000) for the 2014-15 fiscal year, and two hundred million dollars ($200,000,000) for each fiscal year from 2015-16 to 2017-18, inclusive. (B) The unallocated credit amount, if any, from the preceding fiscal year. (C) The amount of any previously allocated credits that have been recaptured. (D) The amount estimated by the Director of Finance, in consultation with the Franchise Tax Board and the State Board of Equalization, to be necessary to limit the aggregation of the estimated amount of exemptions claimed pursuant to Section 6377.1 and of the amounts estimated to be claimed pursuant to this section and Sections 17053.73, 23626, and 23689 to no more than seven hundred fifty million dollars ($750,000,000) for either the current fiscal year or the next fiscal year. (i) The Director of Finance shall notify the Chairperson of the Joint Legislative Budget Committee of the estimated annual allocation authorized by this paragraph. Any allocation pursuant to these provisions shall be made no sooner than 30 days after written notification has been provided to the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees of each house of the Legislature that consider appropriation, or not sooner than whatever lesser time the Chairperson of the Joint Legislative Budget Committee, or his or her designee, may determine. (ii) In no event shall the amount estimated in this subparagraph be less than zero dollars ($0). (E) (i) For the 2015-16 fiscal year and each fiscal year thereafter, the aggregate amount of credit that may be allocated pursuant to this section and Section 23689 shall be reduced by the amount of credit allowed to all qualified taxpayers pursuant to subparagraph (A) or subparagraph (B) of paragraph (1) of subdivision (c) of Section 23636. (ii) If the amount available per fiscal year pursuant to this section and Section 23689 is less than the aggregate amount of credit allowed to qualified taxpayers pursuant to subparagraph (A) or subparagraph (B) of paragraph (1) of subdivision (c) of Section 23636, the aggregate amount allowed pursuant to Section 23636 shall not be reduced and, in addition to the reduction required by clause (i), the aggregate amount of credit that may be allocated pursuant to this section and Section 23689 for the next fiscal year shall be reduced by the amount of that deficit. (iii) It is the intent of the Legislature that the reductions specified in this subparagraph of the aggregate amount of credit that may be allocated pursuant to this section and Section 23689 shall continue if the repeal dates of the credits allowed by this section and Section 23689 are removed or extended. (F) In addition to the amounts determined pursuant to paragraph (1), the Director of Finance may increase the aggregate amount by up to twenty-five million dollars ($25,000,000) per year through 2019. The amount of any increase made pursuant to this paragraph, when combined with any increase made pursuant to subparagraph (F) of paragraph (1) of subdivision (g) of Section 23689, shall not exceed twenty-five million dollars ($25,000,000) per year through 2019. (G) It is the intent of the Legislature that the Director of Finance increase the aggregate amount under subparagraph (F) in order to mitigate the reduction of the amount available due to the credit allowed to all qualified taxpayers pursuant to subparagraph (A) or subparagraph (B) of paragraph (1) of subdivision (c) of Section 23636. (H) Subparagraphs (E), (F), and (G) shall become operative only if Assembly Bill 2389 is enacted and becomes effective on or before January 1, 2015, and adds Section 23636. (2) Each fiscal year, 25 percent of the aggregate amount of the credit that may be allocated pursuant to this section and Section 23689 shall be reserved for small business, as defined in Section 17053.73 or 23626. (3) Each fiscal year, no more than 20 percent of the aggregate amount of the credit that may be allocated pursuant to this section shall be allocated to any one taxpayer. (h) GO-Biz may prescribe rules and regulations as necessary to carry out the purposes of this section. Any rule or regulation prescribed pursuant to this section may be by adoption of an emergency regulation in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (i) A written agreement between GO-Biz and a taxpayer with respect to the credit authorized by this section shall comply with existing law on the date the agreement is executed. (j) (1) Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each fiscal year from the 2013-14 fiscal year to the 2024-25 fiscal year, inclusive. (2) The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report of the total dollar amount of the credits claimed under this section with respect to the relevant fiscal year. The report shall compare the total dollar amount of credits claimed under this section with respect to that fiscal year with the department's estimate with respect to that same fiscal year. If the total dollar amount of credits claimed for the fiscal year is less than the estimate for that fiscal year, the report shall identify options for increasing annual claims of the credit so as to meet estimated amounts. (k) This section is repealed on December 1, 2025. SEC. 2. Section 23689 of the Revenue and Taxation Code is amended to read: 23689. (a) (1) For each taxable year beginning on and after January 1, 2014, and before January 1, 2025, there shall be allowed as a credit against the "tax," as defined in Section 23036, an amount as determined by the committee pursuant to paragraph (2) and approved pursuant to Section 18410.2. (2) The credit under this section shall be allocated by GO-Biz with respect to the 2013-14 fiscal year through and including the 2017-18 fiscal year. The amount of credit allocated to a taxpayer with respect to a fiscal year pursuant to this section shall be as set forth in a written agreement between GO-Biz and the taxpayer and shall be based on the following factors: (A) The number of jobs the taxpayer will create or retain in this state. (B) The compensation paid or proposed to be paid by the taxpayer to its employees, including wages and fringe benefits. (C) The amount of investment in this state by the taxpayer. (D) The extent of unemployment or poverty in the area according to the United States Census in which the taxpayer's project or business is proposed or located. (E) The incentives available to the taxpayer in the state, including incentives from the state, local government and other entities. (F) The incentives available to the taxpayer in other states. (G) The duration of the proposed project and the duration the taxpayer commits to remain in this state. (H) The overall economic impact in this state of the taxpayer's project or business. (I) The strategic importance of the taxpayer's project or business to the state, region, or locality. (J) The opportunity for future growth and expansion in this state by the taxpayer's business. (K) The extent to which the anticipated benefit to the state exceeds the projected benefit to the taxpayer from the tax credit. (3) The written agreement entered into pursuant to paragraph (2) shall include: (A) Terms and conditions that include the taxable year or years for which the credit allocated shall be allowed, a minimum compensation level, and a minimum job retention period. (B) Provisions indicating whether the credit is to be allocated in full upon approval or in increments based on mutually agreed upon milestones when satisfactorily met by the taxpayer. (C) Provisions that allow the committee to recapture the credit, in whole or in part, if the taxpayer fails to fulfill the terms and conditions of the written agreement. (b) For purposes of this section: (1) "Committee" means the California Competes Tax Credit Committee established pursuant to Section 18410.2. (2) "GO-Biz" means the Governor's Office of Business and Economic Development. (c) For purposes of this section, GO-Biz shall do the following: (1) Give priority to a taxpayer whose project or business is located or proposed to be located in an area of high unemployment or poverty. (2) Negotiate with a taxpayer the terms and conditions of proposed written agreements that provide the credit allowed pursuant to this section to a taxpayer. (3) Provide the negotiated written agreement to the committee for its approval pursuant to Section 18410.2. (4) Inform the Franchise Tax Board of the terms and conditions of the written agreement upon approval of the written agreement by the committee. (5) Inform the Franchise Tax Board of any recapture, in whole or in part, of a previously allocated credit upon approval of the recapture by the committee. (6) Post on its Internet Web site all of the following: (A) The name of each taxpayer allocated a credit pursuant to this section. (B) The estimated amount of the investment by each taxpayer. (C) The estimated number of jobs created or retained. (D) The amount of the credit allocated to the taxpayer. (E) The amount of the credit recaptured from the taxpayer, if applicable. (d) For purposes of this section, the Franchise Tax Board shall do all of the following: (1) (A) Except as provided in subparagraph (B), review the books and records of all taxpayers allocated a credit pursuant to this section to ensure compliance with the terms and conditions of the written agreement between the taxpayer and GO-Biz. (B) In the case of a taxpayer that is a "small business," as defined in Section 23626, review the books and records of the taxpayer allocated a credit pursuant to this section to ensure compliance with the terms and conditions of the written agreement between the taxpayers and GO-Biz when, in the sole discretion of the Franchise Tax Board, a review of those books and records is appropriate or necessary in the best interests of the state. (2) Notwithstanding Section 19542: (A) Notify GO-Biz of a possible breach of the written agreement by a taxpayer and provide detailed information regarding the basis for that determination. (B) Provide information to GO-Biz with respect to whether a taxpayer is a "small business," as defined in Section 23626. (e) In the case where the credit allowed under this section exceeds the "tax," as defined in Section 23036, for a taxable year, the excess credit may be carried over to reduce the "tax" in the following taxable year, and succeeding five taxable years, if necessary, until the credit has been exhausted. (f) Any recapture, in whole or in part, of a credit approved by the committee pursuant to Section 18410.2 shall be treated as a mathematical error appearing on the return. Any amount of tax resulting from that recapture shall be assessed by the Franchise Tax Board in the same manner as provided by Section 19051. The amount of tax resulting from the recapture shall be added to the tax otherwise due by the taxpayer for the taxable year in which the committee's recapture determination occurred. (g) (1) The aggregate amount of credit that may be allocated in any fiscal year pursuant to this section and Section 17059.2 shall be an amount equal to the sum of subparagraphs (A), (B), and (C), less the amount specified insubparagraph (D)subparagraphs (D) and (E), and plus the amount specified in subparagraph (F) : (A) Thirty million dollars ($30,000,000) for the 2013-14 fiscal year, one hundred fifty million dollars ($150,000,000) for the 2014-15 fiscal year, and two hundred million dollars ($200,000,000) for each fiscal year from 2015-16 to 2017-18, inclusive. (B) The unallocated credit amount, if any, from the preceding fiscal year. (C) The amount of any previously allocated credits that have been recaptured. (D) The amount estimated by the Director of Finance, in consultation with the Franchise Tax Board and the State Board of Equalization, to be necessary to limit the aggregation of the estimated amount of exemptions claimed pursuant to Section 6377.1 and of the amounts estimated to be claimed pursuant to this section and Sections 17053.73, 17059.2, and 23626 to no more than seven hundred fifty million dollars ($750,000,000) for either the current fiscal year or the next fiscal year. (i) The Director of Finance shall notify the Chairperson of the Joint Legislative Budget Committee of the estimated annual allocation authorized by this paragraph. Any allocation pursuant to these provisions shall be made no sooner than 30 days after written notification has been provided to the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees of each house of the Legislature that consider appropriation, or not sooner than whatever lesser time the Chairperson of the Joint Legislative Budget Committee, or his or her designee, may determine. (ii) In no event shall the amount estimated in this subparagraph be less than zero dollars ($0). (E) (i) For the 2015-16 fiscal year and each fiscal year thereafter, the aggregate amount of credit that may be allocated pursuant to this section and Section 17059.2 shall be reduced by the amount of credit allowed to all qualified taxpayers pursuant to subparagraph (A) or subparagraph (B) of paragraph (1) of subdivision (c) of Section 23636. (ii) If the amount available per fiscal year pursuant to this section and Section 17059.2 is less than the aggregate amount allowed to qualified taxpayers pursuant to subparagraph (A) or subparagraph (B) of paragraph (1) of subdivision (c) of Section 23636, the aggregate amount allowed pursuant to Section 23636 shall not be reduced and, in addition to the reduction required by clause (i), the aggregate amount available pursuant to this section and Section 17059.2 for the next fiscal year shall be reduced by the amount of that deficit. (iii) It is the intent of the Legislature that the reductions specified in this subparagraph of the aggregate amount of credit that may be allocated pursuant to this section and Section 17059.2 shall continue if the repeal dates of the credits allowed by this section and Section 17059.2 are removed or extended. (F) In addition to the amounts determined pursuant to paragraph (1), the Director of Finance may increase the aggregate amount by up to twenty-five million dollars ($25,000,000) per year through 2019. The amount of any increase made pursuant to this paragraph, when combined with any increase made pursuant to subparagraph (F) of paragraph (1) of subdivision (g) of Section 17059.2, shall not exceed twenty-five million dollars ($25,000,000) per year through 2019. (G) It is the intent of the Legislature that the Director of Finance increase the aggregate amount under subparagraph (F) in order to mitigate the reduction of the amount available due to the credit allowed to all qualified taxpayers pursuant to subparagraph (A) or Subparagraph (B) of paragraph (1) of subdivision (c). (H) Subparagraphs (E), (F), and (G) shall become operative only if Assembly Bill 2389 is enacted and becomes effective on or before January 1, 2015, and adds Section 23636. (2) Each fiscal year, 25 percent of the aggregate amount of the credit that may be allocated pursuant to this section and Section 17059.2 shall be reserved for "small business," as defined in Section 17053.73 or 23626. (3) Each fiscal year, no more than 20 percent of the aggregate amount of the credit that shall be allocated pursuant to this section may be allocated to any one taxpayer. (h) GO-Biz may prescribe rules and regulations as necessary to carry out the purposes of this section. Any rule or regulation prescribed pursuant to this section may be by adoption of an emergency regulation in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (i) (1) A written agreement between GO-Biz and a taxpayer with respect to the credit authorized by this section shall not restrict, broaden, or otherwise alter the ability of the taxpayer to assign that credit or any portion thereof in accordance with Section 23663. (2) A written agreement between GO-Biz and a taxpayer with respect to the credit authorized by this section must comply with existing law on the date the agreement is executed. (j) (1) Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each fiscal year from the 2013-14 fiscal year to the 2024-25 fiscal year, inclusive. (2) The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report of the total dollar amount of the credits claimed under this section with respect to the relevant fiscal year. The report shall compare the total dollar amount of credits claimed under this section with respect to that fiscal year with the department's estimate with respect to that same fiscal year. If the total dollar amount of credits claimed for the fiscal year is less than the estimate for that fiscal year, the report shall identify options for increasing annual claims of the credit so as to meet estimated amounts. (k) This section is repealed on December 1, 2025.SECTION 1.Section 100509 is added to the Government Code, to read: 100509. (a) The Exchange shall not disclose an individual's personal information to third parties for the purpose of determining eligibility for, or enrolling the individual in, health care coverage unless both of the following requirements are satisfied prior to the disclosure: (1) The individual, through communication with the Exchange, including the Internet Web site of the Exchange, confirms his or her eligibility for a qualified health plan offered by the Exchange and receives an estimate of the cost of the qualified health plans offered by the Exchange that he or she may purchase. (2) After paragraph (1) has been satisfied, the Exchange obtains written consent from the individual on a stand-alone item in 12-point font that requests the individual's consent for disclosure of personal information to third parties for the purposes of determining eligibility for, or enrolling the individual in, health care coverage. (b) The Exchange shall immediately notify the public of any breach of the security of personal information, regardless of the severity of the breach and regardless of whether personal information was acquired by an unauthorized person during the breach. This subdivision shall apply in addition to any other disclosure requirements applicable to the Exchange, including, but not limited to, Section 1798.29 of the Civil Code. (c) For purposes of this section, the following definitions shall apply: (1) "Exchange" includes an employee of the Exchange or a member of the board of the Exchange. (2) "Personal information" means any information that is created, collected, or maintained by the Exchange that identifies or describes an individual, including, but not limited to, his or her name, social security number, physical description, home address, home telephone number, education, financial matters, and medical or employment history. "Personal information" includes statements made by, or attributed to, the individual. (3) "Third party" means a person or entity other than the Exchange.SEC. 2.SEC. 3. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:The California Health Benefit Exchange is currently releasing to third parties the personal information of individuals using the Covered California Internet Web site without their knowledge. In order to protect the privacy rights of individuals applying for health care coverage through the Exchange,In order to ensure the public good by providing certainty regarding the incentives available for attracting and retaining jobs in economically distressed areas of the state, it is necessary that this act take effect immediately.