BILL NUMBER: AB 1424	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 12, 2011
	AMENDED IN SENATE  JUNE 7, 2011
	AMENDED IN SENATE  JUNE 6, 2011
	AMENDED IN ASSEMBLY  MAY 4, 2011

INTRODUCED BY   Assembly Member Perea

                        MARCH 22, 2011

   An act to amend Sections 31, 476, and 7145.5 of, and to add
Section 494.5 to, the Business and Professions Code, to add Section
 12419   12419.13  to the Government Code,
to add Section 10295.4 to the Public Contract Code, and to amend
 Section   Sections 7063 and  19195 of, to
add Sections  6834, 6835, 7057,  19265, 19377.5, and 19571
to,  to add Article 9 (commencing with  Section 6850) to
Chapter 6 of Part 1 of Division 2 of,  and to add Article 7
(commencing with Section 19291) to Chapter 5 of Part 10.2 of Division
2 of, the Revenue and Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1424, as amended, Perea. Franchise Tax Board: delinquent tax
debt.
   The Personal Income Tax Law and the Corporation Tax Law impose
taxes on, or measured by, income. Existing law requires the Franchise
Tax Board to make available as a matter of public record each
calendar year a list of the 250 largest tax delinquencies in excess
of $100,000, and requires the list to include specified information
with respect to each delinquency. Existing law requires every board,
as defined, and the Department of Insurance, upon request of the
Franchise Tax Board, to furnish to the Franchise Tax Board certain
information with respect to every licensee.
   This bill would require the  State Board of Equalization and
the  Franchise Tax Board to  each  make available a
list of the  250   500  largest tax
delinquencies described above at least twice each calendar year. This
bill would require the Franchise Tax Board to include additional
information on the list with respect to each delinquency, including
the type, status, and licence number of any occupational or
professional license held by the person or persons liable for payment
of the tax and the names and titles of the principal officers of the
person liable for payment of the tax if that person is a limited
liability company or corporation. This bill would require a person
whose delinquency appeared on  the   either
 list and whose name has been removed, as provided, to comply
with the terms of the arranged resolution, and would authorize 
the State Board of Equalization and  the Franchise Tax Board, if
the person fails to comply with the terms of the arranged
resolution, to add the person's name to the list without providing
prior written notice, as provided.
   This bill would permit a state governmental licensing entity, that
issues professional or occupational licenses, certificates,
registrations, or permits, to suspend, revoke, or refuse to issue a
license if the licensee's name is included on  the 
 either  list of the  250   500 
largest tax delinquencies described above. This bill would also
require those licensing entities to provide to  the State Board
of Equalization and  the Franchise Tax Board the name and social
security number or federal taxpayer identification number of each
individual licensee of that entity, and would require each
application for a new license or renewal of a license to indicate on
the application that the law allows  the State Board of
Equalization and  the Franchise Tax Board to share taxpayer
information with a board and requires the licensee to pay his or her
state  income  tax obligation and that his or her
license may be suspended if the state  income  tax
obligation is not paid. The bill would require  the State Board
of Equalization and  the Franchise Tax Board, if an individual
licensee appears on  the   either  list of
the  250   500  largest tax delinquencies
described above, and the specified licensing entity has not made a
decision regarding suspension or revocation of the license, to send a
notice of suspension to the licensee. The bill would provide that
the license of a licensee who fails to satisfy the unpaid taxes by a
certain date shall be automatically suspended, except as specified,
and would require  the State   Board of Equalization or
 the Franchise Tax Board to mail a notice of suspension to the
applicable state governmental licensing entity and to the licensee,
and would provide that the suspension be canceled upon compliance
with the tax obligation. The bill would require  the State Board
of Equalization and  the Franchise Tax Board to meet certain
requirements and would make related changes.
   The bill would provide that the release or other use of
information received by a state governmental licensing entity
pursuant to these provisions, except as authorized, is punishable as
a misdemeanor. By creating a new crime, the bill would impose a
state-mandated local program.
   This bill would also prohibit a state agency from entering into
any contract for the acquisition of goods or services with a
contractor whose name appears on  the   either
 list of the  250   500  largest tax
delinquencies described above.
   Existing law authorizes the Franchise Tax Board to collect
specified amounts for the Department of Industrial Relations and
specified amounts imposed by a court pursuant to specified
procedures.
   This bill would authorize  the State Board of Equalization and
 the Franchise Tax Board to enter into an agreement to collect
any delinquent tax debt due to the Internal Revenue Service or any
other state imposing an income tax or tax measured by income pursuant
to specified procedures, provided that the Internal Revenue Service
or that state has entered into an agreement to collect delinquent tax
debts due to  the State Board of Equalization or  the
Franchise Tax Board, and the agreements do not cause the net
displacement of civil service employees, as specified. This bill
would require the Controller, upon execution of a reciprocal
agreement between  the State Board of Equalization,  the
Franchise Tax Board ,  and any other state imposing  a
sales and use   tax, a tax similar to a sales and use tax,
 an income tax  ,  or tax measured by income, to offset
any delinquent tax debt due to that other state from a person or
entity, against any refund under the Personal Income Tax Law or the
Corporation Tax Law owed to that person or entity, as provided. 
   This bill would incorporate additional changes to Section 7145.5
of the Business and Professions Code, proposed by AB 1307, to be
operative as specified. 
   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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 31 of the Business and Professions Code is
amended to read:
   31.  (a) As used in this section, "board" means any entity listed
in Section 101, the entities referred to in Sections 1000 and 3600,
the State Bar, the Department of Real Estate, and any other state
agency that issues a license, certificate, or registration
authorizing a person to engage in a business or profession.
   (b) Each applicant for the issuance or renewal of a license,
certificate, registration, or other means to engage in a business or
profession regulated by a board who is not in compliance with a
judgment or order for support shall be subject to Section 17520 of
the Family Code.
   (c) "Compliance with a judgment or order for support" has the
meaning given in paragraph (4) of subdivision (a) of Section 17520 of
the Family Code.
   (d) Each licensee whose name appears on a list of the  250
  500  largest tax delinquencies pursuant to
Section  7063 or  19195 of the Revenue and Taxation Code
shall be subject to Section 494.5 or 7145.5 or to Section  6834
or  19265 of the Revenue and Taxation Code.
   (e) Each application for a new license or renewal of a license
shall indicate on the application that the law allows  the State
Board of Equalization and  the Franchise Tax Board to share
taxpayer information with a board and requires the licensee to pay
his or her state  income  tax obligation and that
his or her license may be suspended if the state  income
 tax obligation is not paid. 
   (f) For purposes of this section, "tax obligation" means the tax
imposed under, or in accordance with, Part 1 (commencing with Section
6001), Part 1.5 (commencing with Section 7200), Part 1.6 (commencing
with Section 7251), Part 1.7 (commencing with Section 7285), Part 10
(commencing with Section 17001), and Part 11 (commencing with
Section 23001) of Division 2 of the Revenue and Taxation Code. 
  SEC. 2.  Section 476 of the Business and Professions Code is
amended to read:
   476.  (a) Except as provided in subdivision (b), nothing in this
division shall apply to the licensure or registration of persons
pursuant to Chapter 4 (commencing with Section 6000) of Division 3,
or pursuant to Division 9 (commencing with Section 23000) or pursuant
to Chapter 5 (commencing with Section 19800) of Division 8.
   (b) Section 494.5 shall apply to the licensure of persons
authorized to practice law pursuant to Chapter 4 (commencing with
Section 6000) of Division 3, and the licensure or registration of
persons pursuant to Chapter 5 (commencing with Section 19800) of
Division 8 or pursuant to Division 9 (commencing with Section 23000).

  SEC. 3.  Section 494.5 is added to the Business and Professions
Code, to read:
   494.5.  (a) A state governmental licensing entity may refuse to
issue, reactivate, reinstate, or renew a license or may suspend a
license if a licensee's name is included on a certified list.
   (1) Until the liabilities covered by this section are satisfied,
the qualifying person and any other personnel of record named on a
license who have been suspended under this section shall be
prohibited from serving in any capacity that is subject to licensure,
but shall be permitted to act in the capacity of a nonsupervising
bona fide employee.
   (2) The license of any other renewable licensed entity with any of
the same personnel of record who have been assessed an outstanding
liability covered by this section shall be suspended until the
liability has been satisfied or until the same personnel of record
disassociate themselves from the renewable licensed entity.
   (b) For purposes of this section:
   (1) "Certified list" means  a   either 
list provided by the  State Board of Equalization or the 
Franchise Tax Board of persons whose names appear on  a list
  the lists of the  250   500
 largest tax delinquencies pursuant to Section  7063 or
 19195 of the Revenue and Taxation Code.
   (2) "License" includes a certificate, registration, or any other
authorization to engage in a profession or occupation issued by a
state governmental licensing entity. "License" includes a driver's
license issued pursuant to Chapter 1 (commencing with Section 12500)
of Division 6 of the Vehicle Code.
   (3)  "Licensee" means an individual authorized by a license to
drive a motor vehicle or authorized by a license, certificate,
registration, or other authorization to engage in a profession or
occupation issued by a state governmental licensing entity.
   (4) (A) "State governmental licensing entity" means any entity
listed in Section 101, 1000, or 19420, the office of the Attorney
General, the Department of Insurance, the Department of Motor
Vehicles, the State Bar of California, the Department of Real Estate,
and any other state agency, board, or commission that issues a
license, certificate, or registration authorizing an individual to
engage in a profession or occupation, including any certificate,
business or occupational license, or permit or license issued by the
Department of Motor Vehicles or the Department of the California
Highway Patrol.
   (B) "State governmental licensing entity" shall not include any
entity described in subparagraph (A) that has elected to decline to
exercise the authority provided by this section to suspend or refuse
to issue, reinstate, reactivate, or renew the license of a licensee
for failure to pay the taxes described in subdivision (a). An
election under this subparagraph shall not be valid unless
notification of that election has been provided to  the State
Board of Equalization and  the Franchise Tax Board at the time
and in the manner prescribed by  the State Board of Equalization
and  the Franchise Tax Board.
   (c) The  State Board of Equalization and the  Franchise
Tax Board shall submit a   each submit its
respective  certified list to state governmental licensing
entities.
   (d) Notwithstanding any other law, all state governmental
licensing entities shall collect the social security number or the
federal taxpayer identification number from all applicants for the
purposes of matching the names of the certified  list
  lists  provided by  the State Board of
Equalization and  the Franchise Tax Board to applicants and
licensees.
   (e) (1) Each state governmental licensing entity shall determine
whether an applicant or licensee is on the most recent certified list
provided by  the State Board of Equalization and  the
Franchise Tax Board. The state governmental licensing entity shall
have the authority to withhold issuance or renewal of the license of
any applicant on  the   either  list or to
suspend the license of any licensee on  the  
either  list.
   (2) If an applicant or licensee is on  a certified list
  either of the certified lists  , the state
governmental licensing entity shall immediately provide a preliminary
notice to the applicant or licensee of the entity's intent to
suspend or withhold issuance or renewal of the license. The
preliminary notice shall be delivered personally or by mail to the
applicant's or licensee's last known mailing address on file with the
state governmental licensing entity within 30 days of receipt of the
certified list. Service by mail shall be completed in accordance
with Section 1013 of the Code of Civil Procedure.
   (A) The state governmental licensing entity shall issue a
temporary license valid for a period of 90 days to any applicant
whose name is on a certified list if the applicant is otherwise
eligible for a license.
   (B) The 90-day time period for a temporary license shall not be
extended. Only one temporary license shall be issued during a regular
license term and the term of the temporary license shall coincide
with the first 90 days of the regular license term. A license for the
full term or the remainder of the license term may be issued or
renewed only upon compliance with this section.
   (C) In the event that a license is suspended or an application for
a license or the renewal of a license is denied pursuant to this
section, any funds paid by the applicant or licensee shall not be
refunded by the state governmental licensing entity.
   (f) A state governmental licensing entity shall make a final
determination to refuse to issue or to suspend a license pursuant to
this section no sooner than 30 days and no later than 90 days of the
mailing of the preliminary notice described in paragraph (2) of
subdivision (e). The procedures in the administrative adjudication
provisions of the Administrative Procedure Act (Chapter 4.5
(commencing with Section 11400) and Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code) shall not apply to the revocation or suspension of a license
pursuant to this section.
   (g) Notices shall be developed by each state governmental
licensing entity.  The   For an applicant or
licensee on the State Board of Equalization's certified list, the
notice shall include the address and telephone number of the State
Board of Equalization, and shall emphasize the necessity of obtaining
a release from the State Board of Equalization as a condition for
the issuance, renewal, or continued valid status of a license or
licenses. For an applicant or licensee on the Franchise Tax Board's
certified list, the  notice shall include the address and
telephone number of the Franchise Tax Board, and shall emphasize the
necessity of obtaining a release from the Franchise Tax Board as a
condition for the issuance, renewal, or continued valid status of a
license or licenses.
   (1) The notice shall inform the applicant that the state
governmental licensing entity shall issue a temporary license, as
provided in subparagraph (A) of paragraph (2) of subdivision (e), for
90 calendar days if the applicant is otherwise eligible and that
upon expiration of that time period, the license will be denied
unless the state governmental licensing entity has received a release
from  the State Board of Equalization and  the Franchise
Tax Board.
   (2) The notice shall inform the licensee that any license
suspended under this section will remain suspended unless the state
governmental licensing entity receives a release along with
applications and fees, if applicable, to reinstate the license.
   (3) The notice shall also inform the applicant or licensee that if
an application is denied or a license is suspended pursuant to this
section, any moneys paid by the applicant or licensee shall not be
refunded by the state governmental licensing entity. The state
governmental licensing entity shall also develop a form that the
applicant or licensee shall use to request a release by  the
State Board of Equalization and  the Franchise Tax Board. A copy
of this form shall be included with every notice sent pursuant to
this subdivision.
   (h) If the applicant or licensee wishes to challenge the
submission of his or her name on a certified list, the applicant or
licensee shall make a timely written request for release to  the
State Board of Equalization or  the Franchise Tax 
Board.   Board, whichever is applicable.  The 
State Board of Equalization or the  Franchise Tax Board shall
immediately send a release to the appropriate state governmental
licensing entity and the applicant or licensee, if any of the
following conditions are met:
   (1) The applicant or licensee has complied with the tax
obligation, either by payment of the unpaid taxes or entry into an
installment payment agreement, as described in Section  6832 or
 19008 of the Revenue and Taxation Code, to satisfy the unpaid
taxes.
   (2) The applicant or licensee has submitted a request for release
not later than 45 days after the applicant's or licensee's receipt of
a preliminary notice described in paragraph (2) of subdivision (e),
but  the State Board of Equalization or  the Franchise Tax
Board  , whichever is applicable,  will be unable to
complete the release review and send notice of its findings to the
applicant or licensee and state governmental licensing entity within
45 days after  the State Board of Equalization's or  the
Franchise Tax Board's receipt of the applicant's or licensee's
request for release. Whenever a release is granted under this
paragraph, and, notwithstanding that release, the applicable license
or licenses have been suspended erroneously, the state governmental
licensing entity shall reinstate the applicable licenses with
retroactive effect back to the date of the erroneous suspension and
that suspension shall not be reflected on any license record.
   (3) The applicant or licensee  that is on the certified list
provided by the Franchise Tax Board  is unable to pay the
outstanding liability due to a current financial hardship, as
determined by the Franchise Tax Board.
   (i) An applicant or licensee is required to act with diligence in
responding to notices from the state governmental licensing entity
and  the State Board of Equalization or  the Franchise Tax
Board with the recognition that the temporary license will lapse or
the license suspension will go into effect after 90 days and that
 the State Board of Equalization or  the Franchise Tax Board
must have time to act within that period. An applicant's or licensee'
s delay in acting, without good cause, which directly results in the
inability of  the State Board of Equalization or the
Franchise Tax Board  , whichever is applicable,  to complete
a review of the applicant's or licensee's request for release shall
not constitute the diligence required under this section which would
justify the issuance of a release. An applicant or licensee shall
have the burden of establishing that he or she diligently responded
to notices from the state governmental licensing entity or  the
State Board of Equalization or  the Franchise Tax Board and that
any delay was not without good cause.
   (j) The  State Board of Equalization or the  Franchise
Tax Board shall create release forms for use pursuant to this
section. When the applicant or licensee has complied with the tax
obligation, either by payment of the unpaid taxes or entry into an
installment payment agreement,  the State Board of Equalization
or  the Franchise Tax Board  , whichever is applicable,
 shall mail a release form to the applicant or licensee and
provide a release to the appropriate state governmental licensing
entity. Any state governmental licensing entity that has received a
release from  the State Board of Equalization and  the
Franchise Tax Board pursuant to this subdivision shall process the
release within five business days of its receipt. If  the State
Board of Equalization or  the Franchise Tax Board determines
subsequent to the issuance of a release that the licensee has not
complied with their installment payment agreement,  the State
Board of Equalization or  the Franchise Tax Board  ,
whichever is applicable,  may notify the state governmental
licensing entity and the licensee in a format prescribed by  the
State Board of Equalization and  the Franchise Tax Board that
the licensee is not in compliance and the release shall be rescinded.
The  State Board of Equalization and the  Franchise Tax
Board may, when it is economically feasible for the state
governmental licensing entity to develop an automated process for
complying with this subdivision, notify the state governmental
licensing entity in a manner prescribed by  the State Board of
Equalization and  the Franchise Tax Board, that the licensee has
not complied with the installment payment agreement. Upon receipt of
this notice, the state governmental licensing entity shall
immediately notify the licensee on a form prescribed by the state
governmental licensing entity that the licensee's license will be
suspended on a specific date, and this date shall be no longer than
30 days from the date the form is mailed. The licensee shall be
further notified that the license will remain suspended until a new
release is issued in accordance with subdivision (h).
   (k) The  State Board of Equalization and the  Franchise
Tax Board may enter into interagency agreements with the state
governmental licensing entities necessary to implement this section,
to the extent that it is cost effective to implement this section.
   (l) Notwithstanding any other law, a state governmental licensing
entity, with the approval of the appropriate department director or
governing body, may impose a fee on a licensee whose license has been
suspended pursuant to this section. The fee shall not exceed the
amount necessary for the state governmental licensing entity to cover
its costs in carrying out the provisions of this section. Fees
imposed pursuant to this section shall be deposited in the fund in
which other fees imposed by the state governmental licensing entity
are deposited and shall be available to that entity upon
appropriation in the annual Budget Act.
   (m) The process described in subdivision (h) shall constitute the
sole administrative remedy for contesting the issuance of a temporary
license or the denial or suspension of a license under this section.
The procedures specified in the administrative adjudication
provisions of the Administrative Procedure Act (Chapter 4.5
(commencing with Section 11400) and Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code) shall not apply to the denial, suspension, or failure to issue
or renew a license or the issuance of a temporary license pursuant to
this section.
   (n) Any state governmental licensing entity receiving an inquiry
as to the licensed status of an applicant or licensee who has had a
license denied or suspended under this section or who has been
granted a temporary license under this section shall respond only
that the license was denied or suspended or the temporary license was
issued pursuant to this section. Information collected pursuant to
this section by any state agency, board, or department shall be
subject to the Information Practices Act of 1977 (Chapter 1
(commencing with Section 1798) of Title 1.8 of Part 4 of Division 3
of the Civil Code).
   (o) Any rules and regulations issued pursuant to this section by
any state agency, board, or department may be adopted as emergency
regulations in accordance with the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
The adoption of these regulations shall be deemed an emergency and
necessary for the immediate preservation of the public peace, health,
and safety, or general welfare. The regulations shall become
effective immediately upon filing with the Secretary of State.
   (p) The  State Board of Equalization, the  Franchise Tax
Board  ,  and state governmental licensing entities, as
appropriate, shall adopt regulations as necessary to implement this
section.
   (q) (1) Neither the state governmental licensing entity, nor any
officer, employee, or agent, or former officer, employee, or agent of
a state governmental licensing entity, may disclose or use any
information obtained from  the State Board of Equalization or
 the Franchise Tax Board, pursuant to this section, except to
inform the public of the suspension of a license pursuant to this
section. The release or other use of information received by a state
governmental licensing entity pursuant to this section, except as
authorized by this section, is punishable as a misdemeanor. This
subdivision may not be interpreted to prevent the State Bar of
California from filing a request with the Supreme Court of California
to suspend a member of the bar pursuant to this section.
   (2) To the extent permitted under federal law, a suspension or
revocation of a license pursuant to this section shall not be
reported to the National Practitioner Data Bank.
   (r) If any provision of this section or the application thereof to
any person or circumstance is held invalid, that invalidity shall
not affect other provisions or applications of this section that can
be given effect without the invalid provision or application, and to
this end the provisions of this section are severable.
   (s) All rights to review afforded by this section to an applicant
shall also be afforded to a licensee.
   (t) (1) If the state governmental licensing entity, as defined in
Section  6834 or  19265 of the Revenue and Taxation Code,
does not suspend, revoke, or deny renewal of a license within 90 days
of the mailing of preliminary notice as described in subdivision
(f),  the State Board of Equalization or  the Franchise Tax
Board  , whichever is applicable,  is authorized to suspend
the license pursuant to Section  6834 or  19265 of the
Revenue and Taxation Code.
   (2) If the state governmental licensing entity has not suspended,
revoked, or denied the renewal of a license within 90 days of the
mailing of the preliminary notice as described in subdivision (e),
the state governmental licensing entity shall promptly notify 
the State Board of Equalization or  the Franchise Tax Board 
, whichever is applicable,  and the licensee. The notification
shall include the reason why no action was taken by the state
governmental licensing entity.
   (3) If the election described in subparagraph (B) of paragraph (4)
of subdivision (b) has been made,  the State Board of
Equalization or  the Franchise Tax Board  , whichever is
applicable,  is authorized to suspend, pursuant to Section 
6834 or  19265 of the Revenue and Taxation Code, the license of
a licensee subject to the jurisdiction of the entity that made that
election.
   (u) Unless otherwise provided in this section, the policies,
practices, and procedures of a state governmental licensing entity
with respect to license suspensions under this section shall be the
same as those applicable with respect to suspensions pursuant to
Section 17520 of the Family Code.
   (v) No provision of this section shall be interpreted to allow a
court to review and prevent the collection of  income
 taxes prior to the payment of those taxes in violation of
the California Constitution.
   (w) This section shall apply to any licensee whose name appears on
 a list   the lists  of the  250
  500  largest tax delinquencies pursuant to
 Section   Sections 7063 and  19195 of the
Revenue and Taxation Code on or after January 1, 2012.
  SEC. 4.  Section 7145.5 of the Business and Professions Code is
amended to read:
   7145.5.  (a) The registrar may refuse to issue, reinstate,
reactivate, or renew a license or may suspend a license for the
failure of a licensee to resolve all outstanding final liabilities,
which include taxes, additions to tax, penalties, interest, and any
fees that may be assessed by the board, the Department of Industrial
Relations, the Employment Development Department, or the Franchise
Tax Board.
   (1) Until the debts covered by this section are satisfied, the
qualifying person and any other personnel of record named on a
license that has been suspended under this section shall be
prohibited from serving in any capacity that is subject to licensure
under this chapter, but shall be permitted to act in the capacity of
a nonsupervising bona fide employee.
   (2) The license of any other renewable licensed entity with any of
the same personnel of record that have been assessed an outstanding
liability covered by this section shall be suspended until the debt
has been satisfied or until the same personnel of record disassociate
themselves from the renewable licensed entity.
   (b) The refusal to issue a license or the suspension of a license
as provided by this section shall be applicable only if the registrar
has mailed a notice preliminary to the refusal or suspension that
indicates that the license will be refused or suspended by a date
certain. This preliminary notice shall be mailed to the licensee at
least 60 days before the date certain.
   (c) In the case of outstanding final liabilities assessed by the
Franchise Tax Board, this section shall be operative within 60 days
after the Contractors' State License Board has provided the Franchise
Tax Board with the information required under Section 30, relating
to licensing information that includes the federal employee
identification number or social security number.
   (d) All versions of the application for contractors' licenses
shall include, as part of the application, an authorization by the
applicant, in the form and manner mutually agreeable to the Franchise
Tax Board and the board, for the Franchise Tax Board to disclose the
tax information that is required for the registrar to administer
this section. The Franchise Tax Board may from time to time audit
these authorizations.
   (e) This section shall not be interpreted to conflict with the
suspension of a license pursuant to Section 494.5 of this code or
Section 19265 of the Revenue and Taxation Code.
   SEC. 4.5.    Section 7145.5 of the  
Business and Professions Code   is amended to read: 
   7145.5.  (a) The registrar may refuse to issue, reinstate,
reactivate, or renew a license or may suspend a license for the
failure of a licensee to resolve all outstanding final liabilities,
which include taxes, additions to tax, penalties, interest, and any
fees that may be assessed by the board, the Department of Industrial
Relations, the Employment Development Department,  or
 the Franchise Tax Board  , or the State Board of
Equalization  .
   (1) Until the debts covered by this section are satisfied, the
qualifying person and any other personnel of record named on a
license that has been suspended under this section shall be
prohibited from serving in any capacity that is subject to licensure
under this chapter, but shall be permitted to act in the capacity of
a nonsupervising bona fide employee.
   (2) The license of any other renewable licensed entity with any of
the same personnel of record that have been assessed an outstanding
liability covered by this section shall be suspended until the debt
has been satisfied or until the same personnel of record disassociate
themselves from the renewable licensed entity.
   (b) The refusal to issue a license or the suspension of a license
as provided by this section shall be applicable only if the registrar
has mailed a notice preliminary to the refusal or suspension that
indicates that the license will be refused or suspended by a date
certain. This preliminary notice shall be mailed to the licensee at
least 60                                             days before the
date certain.
   (c) In the case of outstanding final liabilities assessed by the
Franchise Tax Board, this section shall be operative within 60 days
after the Contractors' State License Board has provided the Franchise
Tax Board with the information required under Section 30, relating
to licensing information that includes the federal employee
identification number or social security number.
   (d) All versions of the application for contractors' licenses
shall include, as part of the application, an authorization by the
applicant, in the form and manner mutually agreeable to the Franchise
Tax Board and the board, for the Franchise Tax Board to disclose the
tax information that is required for the registrar to administer
this section. The Franchise Tax Board may from time to time audit
these authorizations. 
   (e) In the case of outstanding final liabilities assessed by the
State Board of Equalization, this section shall not apply to any
outstanding final liability if the licensee has entered into an
installment payment agreement for that liability with the State Board
of Equalization and is in compliance with the terms of that
agreement.  
   (f) This section shall not be interpreted to conflict with the
suspension of a license pursuant to Section 494.5 of this code or
Section 6834 or 19265 of the Revenue and Taxation Code. 
  SEC. 5.  Section 12419.13 is added to the Government Code, to read:

   12419.13.  (a) (1) The Controller shall, upon execution of a
reciprocal agreement between  the State Board of Equalization or
 the Franchise Tax Board  ,  and any other state
imposing  a sales and use tax,  an income tax  , 
or tax measured by income, offset any delinquent tax debt due to that
other state from a person or entity, against any refund under 
the Sales and Use Tax Law,  the Personal Income Tax Law  ,
 or the Corporation Tax Law owed to that person or entity.
   (2) Standards and procedures for submission of requests for
offsets shall be as prescribed by the Controller.
   (3) Payment of the offset amount shall occur only after other
offset requests for debts owed by a person or entity to this state or
the federal government have been satisfied in accordance with the
priority established under Section 12419.3.
   (b) The reciprocal agreement identified in subdivision (a) shall
prescribe the manner in which the administrative costs of the
Controller  , the State Board of Equalization,  and the
Franchise Tax Board shall be reimbursed.
  SEC. 6.  Section 10295.4 is added to the Public Contract Code, to
read:
   10295.4.  (a) Notwithstanding any other law, a state agency shall
not enter into any contract for the acquisition of goods or services
with a contractor whose name appears on  the  
either  list of the  250   500 
largest tax delinquencies pursuant to Section  7063 or 
19195 of the Revenue and Taxation Code. Any contract entered into in
violation of this subdivision is void and unenforceable.
   (b) This section shall apply to any contract executed on or after
January 1, 2012.
   SEC. 7.    Section 6834 is added to the  
Revenue and Taxation Code   , to read:  
   6834.  (a) (1) All state governmental licensing entities issuing
professional or occupational licenses, certificates, registrations,
or permits shall provide to the board the name and social security
number or federal taxpayer identification number, as applicable, of
each licensee of that state governmental licensing entity.
   (2) If any licensee appears on a list of the 500 largest tax
delinquencies pursuant to Section 7063, and the license of that
licensee has not been suspended, revoked, or denied by the applicable
state governmental licensing entity pursuant to Section 494.5 of the
Business and Professions Code, then the board shall mail a
preliminary notice of suspension to the licensee indicating that the
license will be suspended by a date certain, which shall be at least
60 days after the mailing of the preliminary notice, unless prior to
the date certain the licensee pays the unpaid taxes or enters into an
installment payment agreement, as described in Section 6832, to
satisfy the unpaid taxes. The preliminary notice shall also advise
the licensee of the opportunity to request deferral or cancellation
of a suspension pursuant to subdivision (b).
   (3) If any licensee subject to paragraph (2) fails to pay the
unpaid taxes or to enter into an installment payment agreement, as
described in Section 6832, to satisfy the unpaid taxes prior to the
date certain listed in the preliminary notice of suspension, his or
her license shall be automatically suspended by operation of this
section, except as provided in subdivision (b), and the board shall
provide a notice of suspension to the applicable state governmental
licensing entity and shall mail a notice of suspension to the
licensee. The rights, powers, and privileges of any licensee whose
license to drive a motor vehicle, professional or occupational
license, certificate, registration, or permit has been suspended
pursuant to this section shall be subject to the same prohibitions,
limitations, and restrictions as if the license to drive a motor
vehicle, professional or occupational license, certificate,
registration, or permit were suspended by the state governmental
licensing entity that issued the professional or occupational
license, certificate, registration, or permit.
   (4) (A) Upon compliance by the licensee with the tax obligation,
either by payment of the unpaid taxes or entry into an installment
payment agreement, as described in Section 6832, to satisfy the
unpaid taxes, a suspension pursuant to this subdivision shall be
canceled. The board shall, within 10 business days of compliance by
the licensee with the tax obligation, notify both the state
governmental licensing entity and the licensee that the unpaid taxes
have been paid or that an installment payment agreement, as described
in Section 6832, has been entered into to satisfy the unpaid taxes
and that the suspension has been canceled.
   (B) Whenever a suspension is canceled under this paragraph and the
applicable license or licenses have been suspended in error, the
board shall notify the state governmental licensing entity to
reinstate all applicable licenses back to the date of suspension and
expunge any notation of that suspension from the licensee's record.
   (5) If a license is not suspended, or if the suspension of a
license is canceled, based on the licensee entering into an
installment payment agreement as described in Section 6832, and the
licensee fails to comply with the terms of the installment payment
agreement, that license shall be suspended as of the date that is 30
days after the date of termination of that installment payment
agreement. If a license is suspended pursuant to this paragraph, the
board shall provide notice of suspension to the applicable state
governmental licensing entity and mail a notice of suspension to the
licensee.
   (6) State governmental licensing entities shall provide to the
board the information required by this subdivision at a time that the
board may require.
   (b) (1) The board may defer or cancel any suspension authorized by
this section if a licensee is unable to pay the liability due to a
current financial hardship. The board shall, if requested by the
licensee in writing, provide for an administrative hearing to
determine if the licensee is unable to pay the liability due to a
current financial hardship.
   (2) The request for a hearing specified in paragraph (1) shall be
made in writing within 30 days from the mailing date of the
preliminary notice described in subdivision (a).
   (3) The board shall conduct a hearing within 30 days after receipt
of a request pursuant to paragraph (1), unless the board postpones
the hearing, upon a showing of good cause by the licensee, in which
case a suspension pursuant to subdivision (a) shall be deferred until
the hearing has been completed.
   (4) A licensee seeking relief under this subdivision shall only be
entitled to relief described in paragraph (1) if the licensee
provides the board with financial documents that substantiate a
financial hardship, and agrees to an acceptable payment arrangement.
   (5) If the deferral of a suspension of a license under this
subdivision is no longer operative, that license shall be suspended
as of the date that is 30 days after the date the deferral is no
longer operative. If a license is suspended pursuant to this
paragraph, the board shall provide notice of suspension to the
applicable state governmental licensing entity and mail a notice of
suspension to the licensee.
   (c) For purposes of this section and Section 7057, the following
definitions shall apply:
   (1) "Financial hardship" means financial hardship, as determined
by the board, where the licensee is financially unable to pay any
part of the amount described in subdivision (a). In order to
establish the existence of a financial hardship, the licensee shall
submit any information, including information related to reasonable
business and personal expenses, requested by the board for the
purpose of making that determination.
   (2) "License" includes a certificate, registration, or any other
authorization to engage in a profession or occupation issued by a
state governmental licensing entity. "License" includes a driver's
license issued pursuant to Chapter 1 (commencing with Section 12500)
of Division 6 of the Vehicle Code.
   (3) "Licensee" means an individual authorized by a license to
drive a motor vehicle or authorized by a license, certificate,
registration, or other authorization to engage in a profession or
occupation issued by a state governmental licensing entity.
   (4) "State governmental licensing entity" means any entity listed
in Section 101, 1000, or 19420 of the Business and Professions Code,
the office of the Attorney General, the Department of Insurance, the
Department of Motor Vehicles, the Department of Real Estate, and any
other state agency, board, or commission that issues a license,
certificate, or registration authorizing an individual to engage in a
profession or occupation, including any certificate, business or
occupational license, or permit or license issued by the Department
of Motor Vehicles or the Department of the California Highway Patrol.
"State governmental licensing entity" shall not include the
Department of Alcoholic Beverage Control or the State Bar of
California.
   (d) Notwithstanding any other law, a state governmental licensing
entity may, with the approval of the appropriate department director
or governing body, impose a fee on licensees whose license has been
suspended as described in subdivision (a). The fee shall not exceed
the amount necessary for the state governmental licensing entity to
cover its costs in carrying out the provisions of this section. Fees
imposed pursuant to this section shall be deposited in the fund in
which other fees imposed by the state governmental licensing entity
are deposited and shall be available to that entity upon
appropriation in the annual Budget Act.
   (e) The process described in subdivision (b) shall constitute the
sole administrative remedy for contesting the suspension of a license
under this section. The procedures in the administrative
adjudication provisions of the Administrative Procedure Act (Chapter
4.5 (commencing with Section 11400) and Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code) shall not apply to the suspension of a license pursuant to this
section.
   (f) This section shall apply to any licensee whose name appears on
a list of the 500 largest tax delinquencies pursuant to Section 7063
on or after January 1, 2012. 
   SEC. 8.    Section 6835 is added to the 
Revenue and Taxation Code   , to read:  
   6835.  (a) The board may enter into an agreement with the Internal
Revenue Service or any other state imposing a sales and use tax, or
a similar tax, for the purpose of collecting delinquent tax debts
with respect to amounts assessed or imposed under this part, provided
the agreements do not cause the net displacement of civil service
employees. The agreement may provide, at the discretion of the board,
the rate of payment and the manner in which compensation for
services shall be paid.
   (b) At the discretion of the board, the Internal Revenue Service
or the other state collecting the tax debt pursuant to subdivision
(a) may, as part of the collection process, refer the tax debt for
litigation by its legal representatives in the name of the board.
   (c) For purposes of this section, "displacement" includes layoff,
demotion, involuntary transfer to a new class, involuntary transfer
to a new location requiring a change of residence, and time base
reductions. "Displacement" does not include changes in shifts or days
off, nor does it include reassignment to any other position within
the same class and general location. 
   SEC. 9.    Article 9 (commencing with Section 6850)
is added to Chapter 6 of Part 1 of Division 2 of the  
Revenue and Taxation Code   , to read:  

      Article 9.  Collection of Tax Debts Due to the Internal Revenue
Services or Other States


   6850.  (a) The board may enter into an agreement to collect any
delinquent tax debt due to the Internal Revenue Service or any other
state imposing a sales and use tax, or similar tax, if, pursuant to
Section 6851, the Internal Revenue Service or such a state has
entered into an agreement to collect delinquent tax debts due to the
board.
   (b) Upon written notice to the debtor from the board, any amount
referred to the board under subdivision (a) shall be treated as final
and due and payable to the State of California, and shall be
collected from the debtor by the board in any manner authorized under
the law for collection of a delinquent sales and use tax liability,
including, but not limited to, the recording of a notice of state tax
lien under Article 2 (commencing with Section 7170) of Chapter 14 of
Division 7 of Title 1 of the Government Code, and the issuance of an
order and levy under Article 4 (commencing with Section 706.070) of
Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure in the manner provided for earnings withholding orders for
taxes.
   (c) This part shall apply to amounts referred under this section
in the same manner and with the same force and effect and to the full
extent as if the language of those laws had been incorporated in
full into this section, except to the extent that any provision is
either inconsistent with this section or is not relevant to this
section.
   (d) The activities required to implement and administer this
section shall not interfere with the primary mission of the board to
administer this part.
   (e) In no event shall a collection under this section be construed
as a payment of sales and use taxes imposed under this part, or in
accordance with Part 1.5 or Part 1.6. 
   SEC. 10.    Section 7057 is added to the  
Revenue and Taxation Code   , to read:  
   7057.  (a) The board may disclose to state governmental licensing
entities information regarding suspension of a license pursuant to
Section 6834 of this code or Section 494.5 or 7145.5 of the Business
and Professions Code.
   (b) Neither the state governmental licensing entity, nor any
officer, employee, or agent, or former officer, employee, or agent of
a state governmental licensing entity, may disclose or use any
information obtained from the board, pursuant to this section, except
to inform the public of the suspension of a license pursuant to
Section 6834 of this code or Section 494.5 or 7145.5 of the Business
and Professions Code.
   (c) For purposes of this section, the definitions in Section 6834
shall apply. 
   SEC. 11.    Section 7063 of the   Revenue
and Taxation Code   is amended to read: 
   7063.  (a) Notwithstanding any other provision of law, the board
shall make available as a matter of public record each quarter a list
of the  250   500  largest tax
delinquencies in excess of one hundred thousand dollars ($100,000)
under this part. For purposes of compiling the list, a tax
delinquency means an amount owed to the board which is all of the
following:
   (1) Based on a determination made under Article 2 (commencing with
Section 6481) or Article 3 (commencing with Section 6511) of Chapter
5 deemed final pursuant to Article 5 (commencing with Section 6561)
of Chapter 5, or that is "due and payable" under Article 4
(commencing with Section 6536) of Chapter 5, or self-assessed by the
taxpayer.
   (2) Recorded as a notice of state tax lien pursuant to Chapter 14
(commencing with Section 7150) of Division 7 of Title 1 of the
Government Code, in any county recorder's office in this state.
   (3) For an amount of tax delinquent for more than 90 days.
   (b) For purposes of the list, a tax delinquency does not include
any of the following and may not be included on the list:
   (1) A delinquency that is under litigation in a court of law.
   (2) A delinquency for which payment arrangements have been agreed
to by both the taxpayer and the board and the taxpayer is in
compliance with the arrangement.
   (3) A delinquency for which the taxpayer has filed for bankruptcy
protection pursuant to Title 11 of the United States Code.
   (c) Each quarterly list shall, with respect to each delinquency,
include all the following:
   (1) The name of the person or persons liable for payment of the
tax and that person's or persons' last known address.
   (2) The amount of tax delinquency as shown on the notice or
notices of state tax lien and any applicable interest or penalties,
less any amounts paid.
   (3) The earliest date that a notice of state tax lien was filed.
   (4) The type of tax that is delinquent.
   (d) Prior to making a tax delinquency a matter of public record as
required by this section, the board shall provide a preliminary
written notice to the person or persons liable for the tax by
certified mail, return receipt requested. If within 30 days after
issuance of the notice, the person or persons do not remit the amount
due or make arrangements with the board for payment of the amount
due, the tax delinquency shall be included on the list.
   (e) The quarterly list described in subdivision (a) shall include
the following:
   (1) The telephone number and address of the board office to
contact if a person believes placement of his or her name on the list
is in error.
   (2) The aggregate number of persons that have appeared on the list
who have satisfied their delinquencies in their entirety and the
dollar amounts, in the aggregate, that have been paid attributable to
those delinquencies.
   (f) As promptly as feasible, but no later than 5 business days
from the occurrence of any of the following, the board shall remove
that taxpayer's name from the list of tax delinquencies:
   (1) Tax delinquencies for which the person liable for the tax has
contacted the board and resolution of the delinquency has been
arranged.
   (2) Tax delinquencies for which the board has verified that an
active bankruptcy proceeding has been initiated.
   (3) Tax delinquencies for which the board has verified that a
bankruptcy proceeding has been completed and there are no assets
available with which to pay the delinquent amount or amounts.
   (4) Tax delinquencies that the board has determined to be
uncollectible.
   (g) A person whose delinquency appears on the quarterly list, and
who satisfies that delinquency in whole or in part, may request the
board to include in its quarterly list any payments that person made
to satisfy the delinquency. Upon receipt of that request, the board
shall include those payments on the list as promptly as feasible.
   (h) Notwithstanding subdivision (a), a person whose delinquency
appeared on the quarterly list and whose name has been removed
pursuant to paragraph (1) of subdivision (f) shall comply with the
terms of the arranged resolution. If a person fails to do so, the
board shall add that person's name to the list of delinquencies
without providing the prior written notice required by subdivision
(d).
   SEC. 7.   SEC. 12.   Section 19195 of
the Revenue and Taxation Code is amended to read:
   19195.  (a) Notwithstanding any other provision of law, including
Section 6254.21 of the Government Code, the Franchise Tax Board shall
make available as a matter of public record at least twice each
calendar year a list of the  250   500 
largest tax delinquencies in excess of one hundred thousand dollars
($100,000) under Part 10 and Part 11 of this division. For purposes
of compiling the list, a tax delinquency means the total amount owed
by a taxpayer to the State of California for which a notice of state
tax lien has been recorded in any county recorder's office in this
state, pursuant to Chapter 14 (commencing with Section 7150) of
Division 7 of Title 1 of the Government Code.
   (b) For purposes of the list, a tax delinquency does not include
any of the following and may not be included on the list:
   (1) A delinquency for which payment arrangements have been agreed
to by both the taxpayer and the Franchise Tax Board and the taxpayer
is in compliance with the arrangement.
   (2) A delinquency for which the taxpayer has filed for bankruptcy
protection pursuant to Title 11 of the United States Code.
   (3) A delinquency for which the person or persons liable for the
tax have contacted the Franchise Tax Board and for which resolution
of the tax delinquency has been accepted by the Franchise Tax Board.
   (c) Each list shall, with respect to each delinquency, include all
the following:
   (1) The name of the person or persons liable for payment of the
tax and that person's or persons' address.
   (2) The amount of tax delinquency as shown on the notice or
notices of state tax lien and any applicable interest or penalties,
less any amounts paid.
   (3) The earliest date that a notice of state tax lien was filed.
   (4) The type of tax that is delinquent.
   (5) The type, status, and license number of any occupational or
professional license held by the person or persons liable for payment
of the tax.
   (6) The names and titles of the principal officers of the person
liable for payment of the tax if that person is a limited liability
company or corporation.
   (d) Prior to making a tax delinquency a matter of public record as
required by this section, the Franchise Tax Board shall provide a
preliminary written notice to the person or persons liable for the
tax by certified mail, return receipt requested. If within 30 days
after issuance of the notice, the person or persons do not remit the
amount due or make arrangements with the Franchise Tax Board for
payment of the amount due, the tax delinquency shall be included on
the list.
   (e) The list described in subdivision (a) shall include the
following:
   (1) The telephone number and address of the Franchise Tax Board
office to contact if a person believes placement of his or her name
on the list is in error.
   (2) The aggregate number of persons that have appeared on the list
who have satisfied their delinquencies in their entirety and the
dollar amounts, in the aggregate, that have been paid attributable to
those delinquencies.
   (f) As promptly as feasible, but no later than five business days
from the occurrence of any of the following, the Franchise Tax Board
shall remove that taxpayer's name from the list of tax delinquencies:

   (1) Tax delinquencies for which the person liable for the tax has
contacted the Franchise Tax Board and resolution of the delinquency
has been arranged.
   (2) Tax delinquencies for which the Franchise Tax Board has
verified that an active bankruptcy proceeding has been initiated.
   (3) Tax delinquencies for which the Franchise Tax Board has
verified that a bankruptcy proceeding has been completed and there
are no assets available with which to pay the delinquent amount or
amounts.
   (4) Tax delinquencies that the Franchise Tax Board has determined
to be uncollectible.
   (g) A person whose delinquency appears on the list, and who
satisfies that delinquency in whole or in part, may request the
Franchise Tax Board to include in its list any payments that person
made to satisfy the delinquency. Upon receipt of that request, the
Franchise Tax Board shall include those payments on the list as
promptly as feasible.
   (h) Notwithstanding subdivision (a), a person whose delinquency
appeared on the list and whose name has been removed pursuant to
paragraph (1) of subdivision (f) shall comply with the terms of the
                                                arranged resolution.
If the person fails to do so, the Franchise Tax Board may add that
person's name to the list of delinquencies without providing the
prior written notice otherwise required by subdivision (d).
   SEC. 8.   SEC. 13.   Section 19265 is
added to the Revenue and Taxation Code, to read:
   19265.  (a) (1) All state governmental licensing entities issuing
professional or occupational licenses, certificates, registrations,
or permits shall provide to the Franchise Tax Board the name and
social security number or federal taxpayer identification number, as
applicable, of each licensee of that state governmental licensing
entity.
   (2) If any licensee appears on a list of the  250
  500  largest tax delinquencies pursuant to
Section 19195, and the license of that licensee has not been
suspended, revoked, or denied by the applicable state governmental
licensing entity pursuant to Section 494.5 of the Business and
Professions Code, then the Franchise Tax Board shall mail a
preliminary notice of suspension to the licensee indicating that the
license will be suspended by a date certain, which shall be at least
60 days after the mailing of the preliminary notice, unless prior to
the date certain the licensee pays the unpaid taxes or enters into an
installment payment agreement, as described in Section 19008, to
satisfy the unpaid taxes. The preliminary notice shall also advise
the licensee of the opportunity to request deferral or cancellation
of a suspension pursuant to subdivision (b).
   (3) If any licensee subject to paragraph (2) fails to pay the
unpaid taxes or to enter into an installment payment agreement, as
described in Section 19008, to satisfy the unpaid taxes prior to the
date certain listed in the preliminary notice of suspension, his or
her license shall be automatically suspended by operation of this
section, except as provided in subdivision (b), and the Franchise Tax
Board shall provide a notice of suspension to the applicable state
governmental licensing entity and shall mail a notice of suspension
to the licensee. The rights, powers, and privileges of any licensee
whose license to drive a motor vehicle, professional or occupational
license, certificate, registration, or permit has been suspended
pursuant to this section shall be subject to the same prohibitions,
limitations, and restrictions as if the license to drive a motor
vehicle, professional or occupational license, certificate,
registration, or permit were suspended by the state governmental
licensing entity that issued the professional or occupational
license, certificate, registration, or permit.
   (4) (A) Upon compliance by the licensee with the tax obligation,
either by payment of the unpaid taxes or entry into an installment
payment agreement, as described in Section 19008, to satisfy the
unpaid taxes, a suspension pursuant to this subdivision shall be
canceled. The Franchise Tax Board shall, within 10 business days of
compliance by the licensee with the tax obligation, notify both the
state governmental licensing entity and the licensee that the unpaid
taxes have been paid or that an installment payment agreement, as
described in Section 19008, has been entered into to satisfy the
unpaid taxes and that the suspension has been canceled.
   (B) Whenever a suspension is canceled under this paragraph and the
applicable license or licenses have been suspended in error, the
Franchise Tax Board shall notify the state governmental licensing
entity to reinstate all applicable licenses back to the date of
suspension and expunge any notation of that suspension from the
licensee's record.
   (5) If a license is not suspended, or if the suspension of a
license is canceled, based on the licensee entering into an
installment payment agreement as described in Section 19008, and the
licensee fails to comply with the terms of the installment payment
agreement, that license shall be suspended as of the date that is 30
days after the date of termination of that installment payment
agreement. If a license is suspended pursuant to this paragraph, the
Franchise Tax Board shall provide notice of suspension to the
applicable state governmental licensing entity and mail a notice of
suspension to the licensee.
   (6) State governmental licensing entities shall provide to the
Franchise Tax Board the information required by this subdivision at a
time that the Franchise Tax Board may require.
   (b) (1) The Franchise Tax Board may defer or cancel any suspension
authorized by this section if a licensee is unable to pay the
liability due to a current financial hardship. The Franchise Tax
Board shall, if requested by the licensee in writing, provide for an
administrative hearing to determine if the licensee is unable to pay
the liability due to a current financial hardship.
   (2) The request for a hearing specified in paragraph (1) shall be
made in writing within 30 days from the mailing date of the
preliminary notice described in subdivision (a).
   (3) The Franchise Tax Board shall conduct a hearing within 30 days
after receipt of a request pursuant to paragraph (1), unless the
board postpones the hearing, upon a showing of good cause by the
licensee, in which case a suspension pursuant to subdivision (a)
shall be deferred until the hearing has been completed.
   (4) A licensee seeking relief under this subdivision shall only be
entitled to relief described in paragraph (1) if the licensee
provides the Franchise Tax Board with financial documents that
substantiate a financial hardship, and agrees to an acceptable
payment arrangement.
   (5) If the deferral of a suspension of a license under this
subdivision is no longer operative, that license shall be suspended
as of the date that is 30 days after the date the deferral is no
longer operative. If a license is suspended pursuant to this
paragraph, the Franchise Tax Board shall provide notice of suspension
to the applicable state governmental licensing entity and mail a
notice of suspension to the licensee.
   (c) For purposes of this section and Section 19571, the following
definitions shall apply:
   (1) "Financial hardship" means financial hardship within the
meaning of Section 19008, as determined by the Franchise Tax Board,
where the licensee is financially unable to pay any part of the
amount described in subdivision (a) and the licensee is unable to
qualify for an installment payment arrangement as provided for by
Section 19008. In order to establish the existence of a financial
hardship, the licensee shall submit any information, including
information related to reasonable business and personal expenses,
requested by the Franchise Tax Board for the purpose of making that
determination.
   (2) "License" includes a certificate, registration, or any other
authorization to engage in a profession or occupation issued by a
state governmental licensing entity. "License" includes a driver's
license issued pursuant to Chapter 1 (commencing with Section 12500)
of Division 6 of the Vehicle Code.
   (3) "Licensee" means an individual authorized by a license to
drive a motor vehicle or authorized by a license, certificate,
registration, or other authorization to engage in a profession or
occupation issued by a state governmental licensing entity.
   (4) "State governmental licensing entity" means any entity listed
in Section 101, 1000, or 19420 of the Business and Professions Code,
the office of the Attorney General, the Department of Insurance, the
Department of Motor Vehicles, the Department of Real Estate, and any
other state agency, board, or commission that issues a license,
certificate, or registration authorizing an individual to engage in a
profession or occupation, including any certificate, business or
occupational license, or permit or license issued by the Department
of Motor Vehicles or the Department of the California Highway Patrol.
"State governmental licensing entity" shall not include the
Department of Alcoholic Beverage Control or the State Bar of
California.
   (d) Notwithstanding any other law, a state governmental licensing
entity may, with the approval of the appropriate department director
or governing body, impose a fee on licensees whose license has been
suspended as described in subdivision (a). The fee shall not exceed
the amount necessary for the state governmental licensing entity to
cover its costs in carrying out the provisions of this section. Fees
imposed pursuant to this section shall be deposited in the fund in
which other fees imposed by the state governmental licensing entity
are deposited and shall be available to that entity upon
appropriation in the annual Budget Act.
   (e) The process described in subdivision (b) shall constitute the
sole administrative remedy for contesting the suspension of a license
under this section. The procedures in the administrative
adjudication provisions of the Administrative Procedure Act (Chapter
4.5 (commencing with Section 11400) and Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code) shall not apply to the suspension of a license pursuant to this
section.
   (f)  This section shall apply to any licensee whose name appears
on a list of the  250   500  largest tax
delinquencies pursuant to Section 19195 on or after January 1, 2012.
   SEC. 9.   SEC. 14.   Article 7
(commencing with Section 19291) is added to Chapter 5 of Part 10.2 of
Division 2 of the Revenue and Taxation Code, to read:

      Article 7.  Collection of Tax Debts Due to the Internal Revenue
Service or Other States


   19291.  (a) The Franchise Tax Board may enter into an agreement to
collect any delinquent tax debt due to the Internal Revenue Service
or any other state imposing an income tax or tax measured by income
if, pursuant to Section 19377.5, the Internal Revenue Service or that
state has entered into an agreement to collect delinquent tax debts
due the Franchise Tax Board.
   (b) Upon written notice to the debtor from the Franchise Tax
Board, any amount referred to the Franchise Tax Board under
subdivision (a) shall be treated as final and due and payable to the
State of California, and shall be collected from the debtor by the
Franchise Tax Board in any manner authorized under the law for
collection of a delinquent income tax liability, including, but not
limited to, the recording of a notice of state tax lien under Article
2 (commencing with Section 7170) of Chapter 14 of Division 7 of
Title 1 of the Government Code, and the issuance of an order and levy
under Article 4 (commencing with Section 706.070) of Chapter 5 of
Division 2 of Title 9 of Part 2 of the Code of Civil Procedure in the
manner provided for earnings withholding orders for taxes.
   (c) Part 10 (commencing with Section 17001), this part, Part 10.7
(commencing with Section 21001), and Part 11 (commencing with Section
23001) shall apply to amounts referred under this section in the
same manner and with the same force and effect and to the full extent
as if the language of those laws had been incorporated in full into
this section, except to the extent that any provision is either
inconsistent with this section or is not relevant to this section.
   (d) The activities required to implement and administer this
section shall not interfere with the primary mission of the Franchise
Tax Board to administer Part 10 (commencing with Section 17001) and
Part 11 (commencing with Section 23001).
   (e) In no event shall a collection under this section be construed
as a payment of income taxes imposed under Part 10 (commencing with
Section 17001) or Part 11 (commencing with Section 23001).
   SEC. 10.   SEC. 15.   Section 19377.5 is
added to the Revenue and Taxation Code, to read:
   19377.5.  (a) The Franchise Tax Board may enter into an agreement
with the Internal Revenue Service or any other state imposing an
income tax or tax measured by income for the purpose of collecting
delinquent tax debts with respect to amounts assessed or imposed
under Part 10 (commencing with Section 17001), this part, or Part 11
(commencing with Section 23001), provided the agreements do not cause
the net displacement of civil service employees. The agreement may
provide, at the discretion of the Franchise Tax Board, the rate of
payment and the manner in which compensation for services shall be
paid.
   (b) At the discretion of the Franchise Tax Board, the Internal
Revenue Service or the other state collecting the tax debt pursuant
to subdivision (a) may, as part of the collection process, refer the
tax debt for litigation by its legal representatives in the name of
the Franchise Tax Board.
   (c) For purposes of this section, "displacement" includes layoff,
demotion, involuntary transfer to a new class, involuntary transfer
to a new location requiring a change of residence, and time base
reductions. "Displacement" does not include changes in shifts or days
off, nor does it include reassignment to any other position within
the same class and general location.
   SEC. 11.   SEC. 16.   Section 19571 is
added to the Revenue and Taxation Code, to read:
   19571.  (a) The Franchise Tax Board may disclose to state
governmental licensing entities information regarding suspension of a
license pursuant to Section 19265 of this code or Sections 494.5 or
7145.5 of the Business and Professions Code.
   (b) Neither the state governmental licensing entity, nor any
officer, employee, or agent, or former officer, employee, or agent of
a state governmental licensing entity, may disclose or use any
information obtained from the Franchise Tax Board, pursuant to this
section, except to inform the public of the suspension of a license
pursuant to Section 19265 of this code or Sections 494.5 or 7145.5 of
the Business and Professions Code.
   (c) For purposes of this section, the definitions in Section 19265
shall apply.
   SEC. 17.    Section 4.5 of this bill incorporates
amendments to Section 7145.5 of the Business and Professions Code
proposed by both this bill and A.B. 1307. It shall only become
operative if (1) both bills are enacted and become effective on or
before January 1, 2012, (2) each bill amends Section 7145.5 of the
Business and Professions Code, and (3) this bill is enacted after
A.B. 1307, in which case Section 4 of this bill shall not become
operative. 
   SEC. 12.   SEC. 18.   No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because a local agency or school district
has the authority to levy service charges, fees, or assessments
sufficient to pay for the program or level of service mandated by
this act or because 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.