BILL NUMBER: AB 2530	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Harman

                        FEBRUARY 21, 2002

   An act to amend Section 19545 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2530, as introduced, Harman.  Taxation: administration.
   The Personal Income Tax Law and the Bank and Corporation Tax Law
impose taxes on income.  Existing law allows a tax return or return
information filed under those laws to be disclosed in a judicial or
administrative proceeding pertaining to tax administration under
certain circumstances.
   This bill would also allow tax returns or return information filed
under these laws to be disclosed in a judicial or administrative
proceeding involving any allegation of loss of earnings or earning
capacity by the taxpayer.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 19545 of the Revenue and Taxation Code is
amended to read:
   19545.  A return or return information may be disclosed in a
judicial or administrative proceeding pertaining to tax
administration  or involving any allegation of loss of earnings
or earning capacity by the taxpayer , if any of the following
apply:
   (a) The taxpayer is a party to the proceeding, or the proceeding
arose out of, or in connection with, determining the taxpayer's civil
or criminal liability, or the collection of the taxpayer's civil
liability with respect to any tax imposed under this part.
   (b) The treatment of an item reflected on the return is directly
related to the resolution of an issue in the proceeding.
   (c) The return or return information directly relates to a
transactional relationship between a person who is a party to the
proceeding and the taxpayer  which   that 
directly affects the resolution of an issue in the proceeding.