BILL ANALYSIS
AB 1530
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1530 (Skinner)
As Amended June 30, 2010
Majority vote
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|ASSEMBLY: | |(June 1, 2009) |SENATE: |30-2 |(August 24, |
| | | | | |2010) |
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(vote not relevant)
Original Committee Reference: NAT. RES.
SUMMARY : Authorizes the Franchise Tax Board (FTB) to collect
restitution orders and any other amounts imposed by a court for
criminal offenses, as provided. Allows FTB to retain specified
amounts for costs of investigation incurred by the FTB, and
revises provisions establishing a priority for application of
amounts collected by the FTB when a debtor has more than one
debt and the amount collected is insufficient to satisfy the
total amount owing.
The Senate amendments delete the Assembly version of this bill
and instead:
1)Allow FTB to collect restitution orders or any other amounts
awarded to FTB by a court of competent jurisdiction in
criminal proceedings in the same way that it collects tax
liabilities.
2)Specify that the provisions of the Personal Income Tax (PIT)
Law, the Administration of the Franchise and Income Tax Law,
the Taxpayers' Bill of Rights, and the Corporation Tax (CT)
Law shall apply to amounts collected under this bill, unless a
conflict exists.
3)Allow taxpayers, notwithstanding the payment priority
established under existing law, to designate voluntary
restitution payments as payments for a PIT liability or
amounts authorized to be collected by the FTB under this bill.
4)Provide that for all amounts authorized to be collected
before, on, or after January 1, 2011, all of the following
shall apply:
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a) Interest accrues for the above collections at the
greater rate of restitution orders (10% per year) or tax
penalties, which are computed according to a statutory
formula;
b) Collection amounts are not bound by statutes of
limitation;
c) The FTB may file Notices of State Tax Lien at any time
until the amount is paid in full; and,
d) The FTB may retain an amount to compensate for its
investigatory costs out of the restitution amount.
EXISTING LAW :
1)Authorizes the FTB to administer the PIT Law and CT Law. The
FTB may refer cases for criminal prosecution for certain
offenses, and the court may require the restitution, for the
following crimes:
a) Failure to file returns;
b) Forging a spouse's signature;
c) False, fraudulent, or deceptive conduct;
d) Tax evasion;
e) Conversion of a taxpayer refund by a tax preparer; and,
f) Employer's failure to collect or deposit tax.
2)Authorizes the FTB to file an action in civil court for a
civil judgment under the Code of Civil Procedure.
3)Allows the FTB to collect criminal restitution fines under the
Court Ordered Debt (COD) program, in addition to fines, state
or local penalties, and forfeitures, in amounts that exceed
$100 in the aggregate and are more than 90 days delinquent.
Restitution orders must be imposed by a governmental entity
that:
a) Is authorized to collect on behalf of the state or
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victim;
b) Is responsible for distributing the restitution order
collections; and,
c) Ensures that it coordinates with any other related
collection activities that may occur during that debt.
4)Allows FTB to collect these amounts using wage garnishments,
bank levies, and Notices of State Tax Liens when an amount is
due and payable, and the taxpayer has not paid. Garnishments
and levies are treated like warrants issued as part of the
civil process.
5)Establishes a priority for payment of debts when multiple
debts are owed by the same taxpayer and are collected by the
FTB in the following order:
a) Child support delinquencies;
b) Payment of taxes, additions to tax, penalties and
interest;
c) Delinquent wages;
d) Delinquent vehicle license fees;
e) Amounts due under the COD program;
f) Amounts referred for collection under the Cal-OSHA
targeted inspection program;
g) Delinquent penalties collected for the Department of
Industrial Relations;
h) Delinquent fees collected for the Department of
Industrial Relations; and,
i) Delinquencies referred by the Student Aid Commission.
AS PASSED BY THE ASSEMBLY , this bill required the Air Resources
Board to adopt protocols for the evaluation, measurement, and
verification of any greenhouse gas reduction measure that relies
on energy efficiency, in consultation with the Public Utilities
Commission, California Energy Commission, and energy efficiency
experts.
AB 1530
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FISCAL EFFECT : The FTB staff estimates that, as a result of
this bill, the collections by FTB will increase by $50,000 in
fiscal year (FY) 2009-10, $100,000 in FY 2010-11, and $100,000
in FY 2011-12.
COMMENTS : This bill was substantially amended in the Senate
where the Assembly-approved provisions of this bill were
deleted. The subject matter of this bill, as amended in the
Senate, was not heard in any Assembly policy committee in this
legislative session. Thus, the latest amended version of this
bill is inconsistent with Assembly actions.
Analysis Prepared by : Oksana Jaffe / REV. & TAX. / (916)
319-2098
FN: 0005699