BILL NUMBER: AB 986	CHAPTERED  09/29/03

	CHAPTER  569
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2003
	APPROVED BY GOVERNOR  SEPTEMBER 28, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 2, 2003
	PASSED THE SENATE  AUGUST 27, 2003
	AMENDED IN SENATE  JULY 21, 2003
	AMENDED IN SENATE  JULY 15, 2003

INTRODUCED BY   Assembly Member Jerome Horton

                        FEBRUARY 20, 2003

   An act to add Section 38 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 986, Jerome Horton.  Tax collections:  consolidation.
   Existing law imposes various taxes that are administered by the
Franchise Tax Board, the State Board of Equalization, and the
Employment Development Department.
   This bill would require the Legislative Analyst to submit a report
to the Legislature by November 1, 2004, regarding the possible
consolidation of the remittance processing and cashiering functions
and the mail processing operations, of the Franchise Tax Board, the
State Board of Equalization, and the Employment Development
Department, based upon specified criteria.
   This bill would require the Franchise Tax Board, the State Board
of Equalization, and the Employment Development Department to assist
the Legislative Analyst, as specified, in the preparation of the
report required by this bill.


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


  SECTION 1.  Section 38 is added to the Revenue and Taxation Code,
to read:
   38.  (a) The Legislative Analyst shall submit a report to the
Legislature regarding the possible consolidation of the remittance
processing and cashiering functions and the mail processing
operations, of the Franchise Tax Board, the State Board of
Equalization, and the Employment Development Department.
   (b) The Franchise Tax Board, the State Board of Equalization, and
the Employment Development Department shall provide the Legislative
Analyst all data and information that the Legislative Analyst
identifies as necessary for completing the report and shall assist
the Legislative Analyst in the preparation of the report.  The
information provided to the Legislative Analyst shall include, but
not be limited to, an evaluation of the short- and long-term fiscal
and budgetary advantages and disadvantages that would result from the
proposed consolidation of the remittance processing and cashiering
functions and the mail processing functions of, the Franchise Tax
Board, the State Board of Equalization, and the Employment
Development Department.  Any data and information requested by the
Legislative Analyst shall be submitted on or before July 1, 2004.
   (c) The purpose of the report required by this section is to
determine, to the extent possible and based on available information
and reasonable assumptions, if there are any benefits to the
consolidation of the management and control of these operations based
on all of the following criteria:
   (1) The elimination of duplicative functions and fragmented
responsibilities.
   (2) Increased operational efficiencies due to the use of improved
technologies and economies of scale.
   (3) Additional interest earnings for the state.
   (d) For purposes of this section, "remittance processing and
cashiering" means receiving, batching, balancing, and depositing
remittances.
   (e) The Legislative Analyst shall provide to the Legislature its
report and any recommendations and considerations with regard to the
possible consolidation of these functions by November 1, 2004.