Howdy James.  Also occured to me state tax agencies get  1099 info when taxpayers file their federal & state tax returns.  If a taxpayer was to leave 1099 income off their state return income wouldn't match their federal return which would be a big red flag.  When filing state returns federal returns are usually attached.  All this explains why CA and probabaly other states don't require employers to send 1099's directly to them.  Kind of obvious when you think about it.  Cheers!