BILL ANALYSIS
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CONSENT
Bill No: AB 2433
Author: Ruskin (D)
Amended: As introduced
Vote: 21
SENATE LABOR & INDUST. RELATIONS COMMITTEE : 4-0, 6/9/10
AYES: DeSaulnier, Ducheny, Leno, Yee
NO VOTE RECORDED: Wyland, Hollingsworth
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 74-0, 5/6/10 (Consent) - See last page for
vote
SUBJECT : Unemployment insurance: use of information for
tax
purposes
SOURCE : Board of Equalization
DIGEST : This bill authorizes the Employment Development
Department to share employment tax information to assist in
the administration of tax programs. This bill specifies
the sharing of tax information must be limited to the
exchange of information permitted by federal law.
ANALYSIS :
Existing law:
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1. Authorizes the Employment Development Department (EDD)
to collect personal income taxes required to be withheld
by employers.
2. Requires employers to remit unemployment insurance (UI)
contributions and to collect the employee wage
deductions to the Disability Fund. EDD uses these funds
to finance the UI and disability insurance (DI)
programs.
3. Requires that, unless specifically provided in this
code, the information obtained in the administration of
the UI Program and DI Program are confidential and must
be used for the exclusive use and information of the
director of EDD in discharge of his/her duties. Any
person violating the confidentiality of this information
is guilty of a misdemeanor.
4. Permits the Director of EDD to provide unemployment
insurance tax and benefit information to certain
governmental entities specified in law.
This bill authorizes the Director of EDD to provide the
Board of Equalization (BOE) with employment tax information
that will assist in the administration of tax programs.
This bill also specifies that the information provided must
be limited to the exchange of employment tax information
essential for tax administration purposes to the extent
permitted by federal law and regulations.
Prior Legislation
AB 604 (Kuykendall), Chapter 766, Statutes of 1998,
required that the information obtained in the
administration of the UI Program and DI Program is
confidential and must be used for the exclusive use and
information of the Director of EDD in discharge of his/her
duties.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/29/10)
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Board of Equalization (source)
ARGUMENTS IN SUPPORT : The author and the BOE state that
in the past BOE relied upon interagency agreements with EDD
in which BOE believed the EDD information could be used in
"any action or special proceeding," as long as it was
presented in summary form. Recently, the EDD reiterated to
BOE staff that statute specifies that the confidential
information released to authorized entities cannot be
admitted as evidence in "any action or special proceeding"
unless specifically authorized by law.
The author and BOE note that EDD's information is necessary
to arriving at the correct resolution of a fee dispute
heard by BOE in an administrative hearing or litigated in a
court proceeding. Also, this bill will ease the compliance
burden on employers, as the use of EDD information is less
burdensome than providing access to their payroll records.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De
Leon, DeVore, Emmerson, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,
Garrick, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue,
Bonnie Lowenthal, Ma, Miller, Monning, Nava, Nestande,
Niello, Nielsen, Norby, V. Manuel Perez, Portantino,
Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio,
Audra Strickland, Swanson, Torlakson, Torres, Torrico,
Tran, Villines, Yamada, John A. Perez
NO VOTE RECORDED: Bass, Block, De La Torre, Gilmore,
Mendoza, Vacancy
PQ:mw 6/30/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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