BILL NUMBER: AB 2177	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 26, 2010
	AMENDED IN ASSEMBLY  MAY 3, 2010
	AMENDED IN ASSEMBLY  APRIL 14, 2010
	AMENDED IN ASSEMBLY  MARCH 23, 2010

INTRODUCED BY   Assembly Member Beall
    (   Coauthors:   Assembly Members 
 Blumenfield   and Ma   ) 

                        FEBRUARY 18, 2010

   An act to add and repeal Section 18416.5 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2177, as amended, Beall. Income and corporation taxes:
Franchise Tax Board: administration: electronic communication.
   Existing law, among other things, requires the Franchise Tax Board
to administer the Personal Income Tax Law and the Corporation Tax
Law.
   This bill would authorize the Franchise Tax Board, by regulation,
to implement an alternative communication method that, at the request
of a taxpayer or the taxpayer's authorized representative, would
allow specified electronic communications between the Franchise Tax
Board and the taxpayer. The bill would require the Franchise Tax
Board to advise the taxpayer or the taxpayer's authorized
representative of the ramifications of electing to receive
notifications from the Franchise Tax Board in the manner selected and
of failing to take appropriate action in response to those
notifications prior to the use of the alternative communication
method. The bill would repeal the provisions as of January 1, 2018.
   This bill would require the Franchise Tax Board to ensure
procedural due process requirements are satisfied in the
implementation of the alternative communication method.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 18416.5 is added to the Revenue and Taxation
Code, to read:
   18416.5.  (a) The Franchise Tax Board may, by regulation,
implement an alternative communication method that would allow the
Franchise Tax Board, at the request of the taxpayer or the taxpayer's
authorized representative, to provide notification to the taxpayer
in a preferred electronic communication method designated by the
taxpayer that a notice, statement, bill, or other communication
required or authorized under Part 10 (commencing with Section 17001),
this part, or Part 11 (commencing with Section 23001) is available
for viewing in the taxpayer's limited access secure folder on the
Franchise Tax Board's Internet Web site and would allow the taxpayer
or the taxpayer's authorized representative to file a protest,
notification, and other communication to the Franchise Tax Board in a
secure manner. Prior to obtaining the consent of a taxpayer to
participate in the alternative communication method authorized by
this section, the Franchise Tax Board shall advise the taxpayer or
the taxpayer's authorized representative of the ramifications of
electing to receive notifications from the Franchise Tax Board in the
manner selected and of failing to take appropriate action in
response to one or more of those notifications.
   (b) Sending electronic notification to a taxpayer or the taxpayer'
s authorized representative pursuant to the taxpayer's request made
in accordance with regulations authorized under subdivision (a) shall
not be considered a violation of Section 19542 or 19542.1. Any
electronic notification provided to a taxpayer using the alternative
communication method authorized by this section shall include plain
language advising the taxpayer that a failure to act may cause the
taxpayer to forego procedural or administrative rights to challenge
the proposed action.
   (c) This section shall cease to be operative with respect to a
notice, statement, bill, protest, or other communication between the
Franchise Tax Board and a taxpayer on or after January 1, 2018, and
is, as of that date, repealed. The repeal of this section shall not
be interpreted or applied to invalidate any notice, statement, bill,
protest, or other communication between the Franchise Tax Board and a
taxpayer prior to that date using the alternative communication
method authorized by this section prior to its repeal.
   (d) Notwithstanding any other law regarding the use of United
States mail, any notice, statement, bill, protest, and other
communication from the Franchise Tax Board to a taxpayer or the
taxpayer's authorized representative and from a taxpayer or the
taxpayer's authorized representative to the Franchise Tax Board
pursuant to the alternative communication method authorized by this
section shall be treated as if it were mailed by United States mail,
postage prepaid.
  SEC. 2.  The Legislature finds and declares that Section 18416.5 of
the Revenue and Taxation Code, as added by Section 1 of this act, is
intended to enhance opportunities for alternative means of
communication with taxpayers. The Legislature is  also
 mindful of fundamental requirements of the federal and
state constitutions concerning procedural due process. In prescribing
regulations under Section 18416.5 of the Revenue and Taxation Code,
the Franchise Tax Board shall ensure procedural due process
requirements are satisfied.