BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 1530
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          AB 1530 (Skinner)
          As Amended  June 30, 2010
          Majority vote
          |ASSEMBLY:  |     |(June 1, 2009)  |SENATE: |30-2 |(August 24,    |
          |           |     |                |        |     |2010)          |
                                 (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  

          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  

             b)   Collection amounts are not bound by statutes of  

             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  

             a)   Is authorized to collect on behalf of the state or  


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             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  

             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  


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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)  

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