SB1284 - Medi-Cal benefits: employer reports.

Amended IN Senate May 14, 2026 Amended IN Senate April 23, 2026 Amended IN Senate March 25, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 1284 Introduced by Senator Smallwood-Cuevas (Coauthors: Senators Arreguín, Becker, Cortese, Durazo, Gonzalez, McNerney, and Weber Pierson) February 20, 2026 An act to add Section 230.9 to the Labor Code, to amend Section 1095 of the Unemployment Insurance Code, and to add Section 11024.5 to, and to repeal Section 11026.5 of, the Welfare and Institutions Code, relating to medical benefits. LEGISLATIVE COUNSEL'S DIGEST SB 1284, as amended, Smallwood-Cuevas. Medi-Cal benefits: employer reports. Existing law establishes the California Health and Human Services Agency, headed by the Secretary of California Health and Human Services. Existing law further establishes, within the agency, a number of departments and other entities, including the State Department of Health Care Services. Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, and under which qualified low-income persons receive health care benefits. This bill would require the State Department of Health Care Services, after obtaining specified information from the Employment Development Department (EDD), to prepare a report that includes information regarding employers in California that employ 100 or more employees and have any employees who receive benefits from the Medi-Cal program, including, among other things, the annual cost to the Medi-Cal program provided to each identified employer’s employees and their dependents enrolled in the Medi-Cal program, the estimated total annual cost of Medi-Cal services provided to employees, and the dependents of those employees, of each employer, and submit that report to the Legislature no later than July September 1, 2027, and annually thereafter. The bill would provide that individually identifiable information about employees or Medi-Cal enrollees contained in the report is exempt from disclosure under the California Public Records Act, and would authorize the department and EDD to enter into data-sharing agreements, as provided. The bill would also repeal an obsolete reporting requirement. Under existing law, the information obtained in the administration of the Unemployment Insurance Code is for the exclusive use and information of the Director of Employment Development in the discharge of their duties and is not open to the public. However, existing law permits the use of the information for specified purposes, and allows the director to require reimbursement for direct costs incurred. Existing law provides that a person who knowingly accesses, uses, or discloses this confidential information without authorization is guilty of a misdemeanor. The bill would require the Director of Employment Development to permit the use of specified information in their possession by the State Department of Health Care Services to prepare and submit the above-described report. By requiring this information to be provided to the department for these purposes, this bill would expand the crime of unauthorized access, use, or disclosure of this information, and would impose a state-mandated local program. Existing law, subject to certain exceptions, also requires all types of information concerning a person, made or kept by any public officer or agency in connection with the administration of the Medi-Cal program, to be confidential, and makes knowingly releasing or possessing this confidential information punishable as a misdemeanor. The bill would make individually identifiable information about employees or Medi-Cal enrollees contained in the above-described report subject to these confidentiality requirements. By expanding the scope of an existing crime, this bill would impose a state-mandated local program. Existing law establishes within the Department of Industrial Relations the Division of Labor Standards Enforcement, headed by the Labor Commissioner, for the purposes of enforcing labor laws. Existing law prohibits an employer from discharging or in any manner discriminating against an employee for specified actions, including, among other things, taking time off to serve on a jury or because of an employee’s status as a victim of crime or abuse, as specified. This bill would additionally prohibit an employer from discharging or in any manner discriminating or retaliating against an employee who applies for, or is enrolled in, the Medi-Cal program. The bill would also prohibit an employer from refusing to hire a person because that person is enrolled in the Medi-Cal program. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. 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. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 230.9 is added to the Labor Code, to read: 230.9. (a) An employer shall not discharge or in any manner discriminate or retaliate against an employee who applies for, or is enrolled in, the Medi-Cal program (Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code). (b) An employer shall not refuse to hire a person because that person is enrolled in the Medi-Cal program. SEC. 2. Section 1095 of the Unemployment Insurance Code is amended to read: 1095. The director shall permit the use of any information in the director’s 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 the director’s representative to carry out their responsibilities under this code. (b) To properly present a claim for benefits. (c) To acquaint a worker or their authorized agent with the worker’s existing or prospective right to benefits. (d) To furnish an employer or their authorized agent with information to enable the employer to fully discharge their obligations or safeguard their 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 governmental 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 Subchapter IV of the federal Social Security Act (42 U.S.C. Sec. 601 et seq.), and state or federal subsidies offered through the California Health Benefit Exchange provided pursuant to Title 22 (commencing with Section 100500) of the Government Code, when the verification or determination is directly connected with, and limited to, the administration 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, when 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 the person, 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 Part D of 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 and 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 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 of California, 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 Consumer Affairs, or the director’s representative, 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 [Text truncated for display. Full text available on Congress.gov.]