BILL NUMBER: AB 2195	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 5, 2010
	PASSED THE ASSEMBLY  MAY 13, 2010
	AMENDED IN ASSEMBLY  APRIL 21, 2010

INTRODUCED BY   Assembly Member Silva

                        FEBRUARY 18, 2010

   An act to add Section 524 to the Evidence Code, relating to
taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2195, Silva. Taxation: State Board of Equalization:penalty:
burden of proof.
   Existing law imposes various taxes and fees that are administered
and collected by the State Board of Equalization. Existing law
provides that the taxpayer has the burden of proof in court
proceedings for a refund of tax, while the state agency has the
burden of proof with respect to its assertion of fraud or intent to
evade penalties.
   This bill would provide, for purposes of the taxes and fees
administered by the State Board of Equalization, that the board shall
have the burden of proof, by clear and convincing evidence, in
sustaining its assertion of penalties for intent to evade or fraud in
a civil proceeding.
   This bill would also provide that its provisions shall not subject
a taxpayer to unreasonable search or access to records in violation
of the law, as provided.


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

  SECTION 1.  Section 524 is added to the Evidence Code, to read:
   524.  (a) Notwithstanding any other provision of law, in a civil
proceeding to which the State Board of Equalization is a party, that
board shall have the burden of proof by clear and convincing evidence
in sustaining its assertion of a penalty for intent to evade or
fraud against a taxpayer, with respect to any factual issue relevant
to ascertaining the liability of a taxpayer.
   (b) Nothing in this section shall be construed to override any
requirement for a taxpayer to substantiate any item on a return or
claim filed with the State Board of Equalization.
   (c) Nothing in this section shall subject a taxpayer to
unreasonable search or access to records in violation of the United
States Constitution, the California Constitution, or any other law.
   (d) For purposes of this section, "taxpayer" includes a person on
whom fees administered by the State Board of Equalization are
imposed.