BILL NUMBER: AB 63	CHAPTERED  10/14/01

	CHAPTER  915
	FILED WITH SECRETARY OF STATE  OCTOBER 14, 2001
	APPROVED BY GOVERNOR  OCTOBER 14, 2001
	PASSED THE ASSEMBLY  SEPTEMBER 13, 2001
	PASSED THE SENATE  AUGUST 30, 2001
	AMENDED IN SENATE  JUNE 13, 2001

INTRODUCED BY   Assembly Member Cedillo

                        DECEMBER 6, 2000

   An act to add and repeal Section 19551.1 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 63, Cedillo.  Taxation:  disclosure.
   Existing law prohibits the disclosure of any information
concerning any taxpayer by the State Board of Equalization, the
Franchise Tax Board, and the Director of Employment Development to
any person, except as specifically authorized by statute.  It permits
the disclosure of certain information by the Franchise Tax Board to
the Commissioner of Internal Revenue of the United States, other
California tax officials, the Multistate Tax Commission, the tax
officers of another state, and the tax officials of Mexico, under
specified conditions.
   This bill would, until December 31, 2008, additionally permit,
under specified conditions, the disclosure of tax information to tax
officials of any city.  The bill would require that the Franchise Tax
Board be reimbursed its cost of providing this information to a
city, as specified.
   This bill would require the California Research Bureau to make a
report to the Legislature, by December 31, 2005, regarding the impact
and effect of the bill.
   This bill would also provide that it will become operative only if
this bill and AB 205 are both enacted and become effective on or
before January 1, 2002.


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


  SECTION 1.  Section 19551.1 is added to the Revenue and Taxation
Code, to read:
   19551.1.  (a) The Franchise Tax Board may permit the tax officials
of any city to obtain tax information pursuant to subdivision (a) of
Section 19551.
   (b) The information furnished to tax officials of a city under
this section shall be limited as follows:
   (1) When requested pursuant to a written agreement, the taxing
authority of a city may be granted tax information only on taxpayers
with an address as reflected on the Franchise Tax Board's records
within the jurisdictional boundaries of the city who report income
from a trade or business to the Franchise Tax Board.
   (2) The tax information that may be provided by the Franchise Tax
Board to a city is limited to a taxpayer's name, address, social
security or taxpayer identification number, and business activity
code.
   (3) Tax information provided to the taxing authority of a city may
not be furnished to, or used by, any person other than an employee
of that taxing authority.
   (4) Section 19542 applies to this section.
   (5) Section 19542.1 applies to this section.
   (c) The Franchise Tax Board may not provide any information
pursuant to this section until all of the following have occurred:
   (1) An agreement has been executed between a city and the
Franchise Tax Board, that provides that an amount equal to all first
year costs necessary to furnish the city information pursuant to this
section shall be received by the Franchise Tax Board before the
Franchise Tax Board incurs any costs associated with the activity
permitted by this section.  For purposes of this section, first year
costs include costs associated with, but not limited to, the
purchasing of equipment, the development of processes, and labor.
   (2) An agreement has been executed between a city and the
Franchise Tax Board, that provides that the annual costs incurred by
the Franchise Tax Board, as a result of the activity permitted by
this section, shall be reimbursed by the city to the board.
   (3) Pursuant to the agreement described in paragraph (1), the
Franchise Tax Board has received an amount equal to the first year
costs.
   (d) This section does not invalidate any other law.  This section
does not preclude any city or, city and county, from obtaining
information about individual taxpayers, including those taxpayers
exempt from this section, by any other means permitted by state or
federal law.
   (e) This section shall remain in effect only until December 31,
2008, and as of that date, is repealed.
  SEC. 2.  The California Research Bureau shall, by December 31,
2005, report to the Legislature regarding the impact and effect of
Section 1 of this act.
  SEC. 3.  This act shall only become operative if this act and
Assembly Bill 205 of the 2001-02 Regular Session are both enacted and
become effective on or before January 1, 2002.