BILL NUMBER: SB 1374	CHAPTERED  09/27/06

	CHAPTER  513
	FILED WITH SECRETARY OF STATE  SEPTEMBER 27, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 27, 2006
	PASSED THE SENATE  AUGUST 22, 2006
	PASSED THE ASSEMBLY  AUGUST 10, 2006
	AMENDED IN ASSEMBLY  JUNE 21, 2006
	AMENDED IN SENATE  MAY 17, 2006
	AMENDED IN SENATE  APRIL 17, 2006
	AMENDED IN SENATE  APRIL 6, 2006

INTRODUCED BY   Senator Cedillo

                        FEBRUARY 21, 2006

   An act to amend Section 19551.1 of the Revenue and Taxation Code,
relating to tax administration.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1374, Cedillo  Tax administration: taxpayer information:
disclosure.
   Existing law authorizes the Franchise Tax Board, until December
31, 2008, to disclose to tax officials of any city, subject to
certain specified requirements, a taxpayer's name, address, social
security or taxpayer identification number, and business activity
code, as provided, but limits the use of that information to
employees of the taxing authority of a city.
   Existing law specifies that a person that makes an unauthorized
disclosure of this information or that makes an unauthorized
inspection of this information is guilty of a misdemeanor.
   This bill would extend, until December 31, 2011, the Franchise Tax
Board's authorization to disclose this information.
   By extending the repeal date of an existing crime, this bill would
impose a state-mandated local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


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


  SECTION 1.  Section 19551.1 of the Revenue and Taxation Code is
amended 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 with respect
to 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,
2011, and as of that date is repealed.
   (f) Nothing in this section shall be construed to affect any
obligations, rights, or remedies regarding personal information
provided under state or federal law.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.