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H.B. 260

             1     

CHILDREN'S HEALTH INSURANCE PLAN

             2     
SIMPLIFIED RENEWAL

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Merlynn T. Newbold

             6     
Senate Sponsor: Peter C. Knudson

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill establishes a process for simplified renewal of benefits under the Children's
             11      Health lnsurance Plan.
             12      Highlighted Provisions:
             13          This bill:
             14          .    requires the Children's Health Insurance Plan to apply for grants to fund a simplified
             15      renewal process;
             16          .    if funding is available, requires the Children's Health Insurance Plan to establish a
             17      simplified renewal process in which the eligibility worker may, if the applicant
             18      provides consent, confirm the adjusted gross income of the applicant from the Utah
             19      State Tax Commission; and
             20          .    requires the Utah State Tax Commission to work with the Children's Health
             21      Insurance Program to provide the program with access to an applicant's adjusted
             22      gross income.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:


             28      AMENDS:
             29          26-40-105, as last amended by Laws of Utah 2008, Chapter 386
             30          59-1-403, as last amended by Laws of Utah 2009, Chapters 31, 45, 64, 203, and 251
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 26-40-105 is amended to read:
             34           26-40-105. Eligibility.
             35          (1) A child is eligible to enroll in the program if the child:
             36          (a) is a bona fide Utah resident;
             37          (b) is a citizen or legal resident of the United States;
             38          (c) is under 19 years of age;
             39          (d) does not have access to or coverage under other health insurance, including any
             40      coverage available through a parent or legal guardian's employer;
             41          (e) is ineligible for Medicaid benefits;
             42          (f) resides in a household whose gross family income, as defined by rule, is at or below
             43      200% of the federal poverty level; and
             44          (g) is not an inmate of a public institution or a patient in an institution for mental
             45      diseases.
             46          (2) A child who qualifies for enrollment in the program under Subsection (1) may not
             47      be denied enrollment due to a diagnosis or pre-existing condition.
             48          (3) (a) The department shall determine eligibility and send notification of the eligibility
             49      decision within 30 days after receiving the application for coverage.
             50          (b) If the department cannot reach a decision because the applicant fails to take a
             51      required action, or because there is an administrative or other emergency beyond the
             52      department's control, the department shall:
             53          (i) document the reason for the delay in the applicant's case record; and
             54          (ii) inform the applicant of the status of the application and time frame for completion.
             55          (4) The department may not close enrollment in the program for a child who is eligible
             56      to enroll in the program under the provisions of Subsection (1).
             57          (5) (a) The program shall:
             58          (i) apply for grants to make technology system improvements necessary to implement a


             59      simplified renewal process in accordance with this Subsection (5); and
             60          (ii) if funding is available, implement the simplified renewal process in accordance
             61      with this Subsection (5).
             62          (b) The simplified renewal process:
             63          (i) shall, in accordance with Section 59-1-403 , provide an eligibility worker a process
             64      in which the eligibility worker:
             65          (A) verifies the applicant's identity;
             66          (B) gets consent to obtain the applicant's adjusted gross income from the Utah State
             67      Tax Commission from:
             68          (I) the applicant, if the applicant filed a single tax return; or
             69          (II) both parties to a joint return, if the applicant filed a joint tax return; and
             70          (C) obtains from the Utah State Tax Commission, the adjusted gross income of the
             71      applicant; and
             72          (ii) may not change the eligibility requirements for the program.
             73          Section 2. Section 59-1-403 is amended to read:
             74           59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
             75          (1) (a) Any of the following may not divulge or make known in any manner any
             76      information gained by that person from any return filed with the commission:
             77          (i) a tax commissioner;
             78          (ii) an agent, clerk, or other officer or employee of the commission; or
             79          (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
             80      town.
             81          (b) An official charged with the custody of a return filed with the commission is not
             82      required to produce the return or evidence of anything contained in the return in any action or
             83      proceeding in any court, except:
             84          (i) in accordance with judicial order;
             85          (ii) on behalf of the commission in any action or proceeding under:
             86          (A) this title; or
             87          (B) other law under which persons are required to file returns with the commission;
             88          (iii) on behalf of the commission in any action or proceeding to which the commission
             89      is a party; or


             90          (iv) on behalf of any party to any action or proceeding under this title if the report or
             91      facts shown by the return are directly involved in the action or proceeding.
             92          (c) Notwithstanding Subsection (1)(b), a court may require the production of, and may
             93      admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
             94      pertinent to the action or proceeding.
             95          (2) This section does not prohibit:
             96          (a) a person or that person's duly authorized representative from receiving a copy of
             97      any return or report filed in connection with that person's own tax;
             98          (b) the publication of statistics as long as the statistics are classified to prevent the
             99      identification of particular reports or returns; and
             100          (c) the inspection by the attorney general or other legal representative of the state of the
             101      report or return of any taxpayer:
             102          (i) who brings action to set aside or review a tax based on the report or return;
             103          (ii) against whom an action or proceeding is contemplated or has been instituted under
             104      this title; or
             105          (iii) against whom the state has an unsatisfied money judgment.
             106          (3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
             107      commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
             108      Rulemaking Act, provide for a reciprocal exchange of information with:
             109          (i) the United States Internal Revenue Service; or
             110          (ii) the revenue service of any other state.
             111          (b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
             112      corporate franchise tax, the commission may by rule, made in accordance with Title 63G,
             113      Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and
             114      other written statements with the federal government, any other state, any of the political
             115      subdivisions of another state, or any political subdivision of this state, except as limited by
             116      Sections 59-12-209 and 59-12-210 , if the political subdivision, other state, or the federal
             117      government grant substantially similar privileges to this state.
             118          (c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
             119      corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3,
             120      Utah Administrative Rulemaking Act, provide for the issuance of information concerning the


             121      identity and other information of taxpayers who have failed to file tax returns or to pay any tax
             122      due.
             123          (d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
             124      Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , as
             125      requested by the executive secretary, any records, returns, or other information filed with the
             126      commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5
             127      regarding the environmental assurance program participation fee.
             128          (e) Notwithstanding Subsection (1), at the request of any person the commission shall
             129      provide that person sales and purchase volume data reported to the commission on a report,
             130      return, or other information filed with the commission under:
             131          (i) Chapter 13, Part 2, Motor Fuel; or
             132          (ii) Chapter 13, Part 4, Aviation Fuel.
             133          (f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
             134      as defined in Section 59-22-202 , the commission shall report to the manufacturer:
             135          (i) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
             136      manufacturer and reported to the commission for the previous calendar year under Section
             137      59-14-407 ; and
             138          (ii) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
             139      manufacturer for which a tax refund was granted during the previous calendar year under
             140      Section 59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
             141          (g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
             142      distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
             143      from selling cigarettes to consumers within the state under Subsection 59-14-210 (2).
             144          (h) Notwithstanding Subsection (1), the commission may:
             145          (i) provide to the Division of Consumer Protection within the Department of
             146      Commerce and the attorney general data:
             147          (A) reported to the commission under Section 59-14-212 ; or
             148          (B) related to a violation under Section 59-14-211 ; and
             149          (ii) upon request provide to any person data reported to the commission under
             150      Subsections 59-14-212 (1)(a) through (c) and Subsection 59-14-212 (1)(g).
             151          (i) Notwithstanding Subsection (1), the commission shall, at the request of a committee


             152      of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of Planning
             153      and Budget, provide to the committee or office the total amount of revenues collected by the
             154      commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period
             155      specified by the committee or office.
             156          (j) Notwithstanding Subsection (1), the commission shall make the directory required
             157      by Section 59-14-603 available for public inspection.
             158          (k) Notwithstanding Subsection (1), the commission may share information with
             159      federal, state, or local agencies as provided in Subsection 59-14-606 (3).
             160          (l) (i) Notwithstanding Subsection (1), the commission shall provide the Office of
             161      Recovery Services within the Department of Human Services any relevant information
             162      obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer
             163      who has become obligated to the Office of Recovery Services.
             164          (ii) The information described in Subsection (3)(l)(i) may be provided by the Office of
             165      Recovery Services to any other state's child support collection agency involved in enforcing
             166      that support obligation.
             167          (m) (i) Notwithstanding Subsection (1), upon request from the state court
             168      administrator, the commission shall provide to the state court administrator, the name, address,
             169      telephone number, county of residence, and Social Security number on resident returns filed
             170      under Chapter 10, Individual Income Tax Act.
             171          (ii) The state court administrator may use the information described in Subsection
             172      (3)(m)(i) only as a source list for the master jury list described in Section 78B-1-106 .
             173          (n) Notwithstanding Subsection (1), the commission shall at the request of a
             174      committee, commission, or task force of the Legislature provide to the committee, commission,
             175      or task force of the Legislature any information relating to a tax imposed under Chapter 9,
             176      Taxation of Admitted Insurers, relating to the study required by Section 59-9-101 .
             177          (o) (i) As used in this Subsection (3)(o), "office" means the:
             178          (A) Office of the Legislative Fiscal Analyst; or
             179          (B) Office of Legislative Research and General Counsel.
             180          (ii) Notwithstanding Subsection (1) and except as provided in Subsection (3)(o)(iii),
             181      the commission shall at the request of an office provide to the office all information:
             182          (A) gained by the commission; and


             183          (B) required to be attached to or included in returns filed with the commission.
             184          (iii) (A) An office may not request and the commission may not provide to an office a
             185      person's:
             186          (I) address;
             187          (II) name;
             188          (III) Social Security number; or
             189          (IV) taxpayer identification number.
             190          (B) The commission shall in all instances protect the privacy of a person as required by
             191      Subsection (3)(o)(iii)(A).
             192          (iv) An office may provide information received from the commission in accordance
             193      with this Subsection (3)(o) only:
             194          (A) as:
             195          (I) a fiscal estimate;
             196          (II) fiscal note information; or
             197          (III) statistical information; and
             198          (B) if the information is classified to prevent the identification of a particular return.
             199          (v) (A) A person may not request information from an office under Title 63G, Chapter
             200      2, Government Records Access and Management Act, or this section, if that office received the
             201      information from the commission in accordance with this Subsection (3)(o).
             202          (B) An office may not provide to a person that requests information in accordance with
             203      Subsection (3)(o)(v)(A) any information other than the information the office provides in
             204      accordance with Subsection (3)(o)(iv).
             205          (p) Notwithstanding Subsection (1), the commission may provide to the governing
             206      board of the agreement or a taxing official of another state, the District of Columbia, the United
             207      States, or a territory of the United States:
             208          (i) the following relating to an agreement sales and use tax:
             209          (A) information contained in a return filed with the commission;
             210          (B) information contained in a report filed with the commission;
             211          (C) a schedule related to Subsection (3)(p)(i)(A) or (B); or
             212          (D) a document filed with the commission; or
             213          (ii) a report of an audit or investigation made with respect to an agreement sales and


             214      use tax.
             215          (q) Notwithstanding Subsection (1), the commission may provide information
             216      concerning a taxpayer's state income tax return or state income tax withholding information to
             217      the Driver License Division if the Driver License Division:
             218          (i) requests the information; and
             219          (ii) provides the commission with a signed release form from the taxpayer allowing the
             220      Driver License Division access to the information.
             221          (r) Notwithstanding Subsection (1), the commission shall provide to the Utah State 911
             222      Committee the information requested by the Utah State 911 Committee under Subsection
             223      53-10-602 (3).
             224          (s) Notwithstanding Subsection (1), the commission may provide to the Utah
             225      Educational Savings Plan Trust information related to a resident or nonresident individual's
             226      contribution to a Utah Educational Savings Plan account as designated on the resident or
             227      nonresident's individual income tax return under Section 59-10-1313 .
             228          (t) Notwithstanding Subsection (1), the commission shall provide an eligibility worker
             229      with the Children's Health Insurance Program with the adjusted gross income of an individual
             230      if:
             231          (i) an eligibility worker with the Children's Health Insurance Program requests the
             232      information from the Utah State Tax Commission; and
             233          (ii) the eligibility worker has complied with the identity verification and consent
             234      provisions of Section 26-40-105 .
             235          (4) (a) Reports and returns shall be preserved for at least three years.
             236          (b) After the three-year period provided in Subsection (4)(a) the commission may
             237      destroy a report or return.
             238          (5) (a) Any person who violates this section is guilty of a class A misdemeanor.
             239          (b) If the person described in Subsection (5)(a) is an officer or employee of the state,
             240      the person shall be dismissed from office and be disqualified from holding public office in this
             241      state for a period of five years thereafter.
             242          (c) Notwithstanding Subsection (5)(a) or (b), an office that requests information in
             243      accordance with Subsection (3)(o)(iii) or a person that requests information in accordance with
             244      Subsection (3)(o)(v):


             245          (i) is not guilty of a class A misdemeanor; and
             246          (ii) is not subject to:
             247          (A) dismissal from office in accordance with Subsection (5)(b); or
             248          (B) disqualification from holding public office in accordance with Subsection (5)(b).
             249          (6) Except as provided in Section 59-1-404 , this part does not apply to the property tax.




Legislative Review Note
    as of 1-27-10 10:58 AM


Office of Legislative Research and General Counsel


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