BILL NUMBER: AB 1424 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 2, 2011
AMENDED IN SENATE AUGUST 31, 2011
AMENDED IN SENATE AUGUST 18, 2011
AMENDED IN SENATE AUGUST 15, 2011
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 and 476 of, and to add Section 494.5
to, the Business and Professions Code, to add Section 12419.13 to the
Government Code, to add Section 10295.4 to the Public Contract Code,
to amend Sections 7063, 19195, and 19533 of, to add Sections 6835,
7057, 7057.5, 19377.5, 19571, and 19572 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, and to
add Section 34623.1 to the Vehicle 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,
quarterly, and the Franchise Tax Board, at least twice each calendar
year, to make available a list of the 500 largest tax delinquencies
described above. 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 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 require a state governmental licensing entity,
other than the Department of Motor Vehicles , State Bar of
California, and Alcoholic Beverage Control Board ,
as provided , that issues professional or occupational
licenses, certificates, registrations, or permits, to suspend,
revoke, and refuse to issue a license if the licensee's name is
included on either list of the 500 largest tax delinquencies
described above. This bill would not include the Contractors' State
License Board in the definition of "state governmental licensing
entity." This bill would also require those licensing entities to
collect the social security number or federal taxpayer identification
number of each individual applicant of that entity for the purpose
of matching those applicants to the names on the lists of the 500
largest tax delinquencies, 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 tax obligation and that his or
her license may be suspended if the state tax obligation is not paid.
This bill would also authorize the State Board of Equalization and
the Franchise Tax Board to disclose to state governmental licensing
entities identifying information , as defined, of persons
on the list of 500 largest tax delinquencies, as specified. This bill
would authorize a motor carrier permit of a licensee whose name is
on certified list of tax delinquencies to be suspended, as provided.
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 either list of the 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 a tax measured by income, or a sales
or use tax, or a similar tax, 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
Sales and Use Tax Law, the Personal Income Tax Law, or the
Corporation Tax Law owed to that person or entity, as provided.
Existing law requires, in the event that the debtor has more than
one debt being collected by the Franchise Tax Board and the amount
collected is insufficient to satisfy the total amount owed, the
amount collected to be applied to specified priorities.
This bill would include specified tax delinquencies collected
pursuant to this bill.
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 or applicant whose name appears on a
list of the 500 largest tax delinquencies pursuant to Section 7063 or
19195 of the Revenue and Taxation Code shall be subject to Section
494.5.
(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 tax obligation and that his or her license may be suspended if
the state 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
7280 ), Part 10 (commencing with Section 17001),
and or 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, other than the
Department of Motor Vehicles, shall refuse to issue, reactivate,
reinstate, or renew a license and shall suspend a license if a
licensee's name is included on a certified list. The Department of
Motor Vehicles shall suspend a license if a licensee's name is
included on a certified list. Any reference in this section to the
issuance, renewal, or denial of a license shall not apply to the
Department of Motor Vehicles.
494.5. (a) (1) Except as provided in paragraphs
(2), (3), and (4), a state governmental licensing entity shall refuse
to issue, reactivate, reinstate, or renew a license and shall
suspend a license if a licensee's name is included on a certified
list.
(2) The Department of Motor Vehicles shall suspend a license if a
licensee's name is included on a certified list. Any reference in
this section to the issuance, reactivation, reinstatement, renewal,
or denial of a license shall not apply to the Department of Motor
Vehicles.
(3) The State Bar of California may recommend to refuse to issue,
reactivate, reinstate, or renew a license and may recommend to
suspend a license if a licensee's name is included on a certified
list. The word "may" shall be substituted for the word "shall"
relating to the issuance of a temporary license, refusal to issue,
reactivate, reinstate, renew, or suspend a license in this section
for licenses under the jurisdiction of the California Supreme Court.
(4) The Alcoholic Beverage Control Board may refuse to issue,
reactivate, reinstate, or renew a license, and may suspend a license,
if a licensee's name is included on a certified list.
(b) For purposes of this section:
(1) "Certified list" means either the list provided by
the State Board of Equalization or the list provided by the
Franchise Tax Board of persons whose names appear on the lists
of the 500 largest tax delinquencies pursuant to Section 7063 or
19195 of the Revenue and Taxation Code , as applicable .
(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. "License" excludes a
vehicle registration issued pursuant to Division 3 (commencing with
Section 4000) 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, 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.
"State governmental licensing entity" shall not include the
Contractors' State License Board.
(c) The State Board of Equalization and the Franchise Tax Board
shall each submit its respective certified list to every state
governmental licensing entity. The certified lists shall include the
name, social security number or taxpayer identification number, and
the last known address of the persons identified on the certified
lists.
(d) Notwithstanding any other law, each state governmental
licensing entity 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 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.
(2) If an applicant or licensee is on 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) (1) A state governmental licensing entity shall refuse to
issue or shall suspend a license pursuant to this section no sooner
than 90 days and no later than 120 days of the mailing of the
preliminary notice described in paragraph (2) of subdivision (e),
unless the state governmental licensing entity has received a release
pursuant to subdivision (h). 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 denial or suspension of, or refusal to
renew, a license or the issuance of a temporary license pursuant to
this section.
(2) Notwithstanding any other law, if a board, bureau, or
commission listed in Section 101, other than the Contractors' State
License Board, fails to take action in accordance with this section,
the Department of Consumer Affairs shall issue a temporary license or
suspend or refuse to issue, reactivate, reinstate, or renew a
license, as appropriate.
(g) Notices shall be developed by each state governmental
licensing entity. 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 or the Franchise Tax Board,
whichever is applicable.
(2) The notice shall inform the licensee that any license
suspended under this section will remain suspended until 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 or 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, 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 is unable to pay the outstanding tax
obligation due to a current financial hardship. "Financial hardship"
means financial hardship as determined by the State Board of
Equalization or the Franchise Tax Board, whichever is applicable,
where the applicant or licensee is unable to pay any part of the
outstanding liability and the applicant or licensee is unable to
qualify for an installment payment arrangement as provided for by
Section 6832 or Section 19008 of the Revenue and Taxation Code. In
order to establish the existence of a financial hardship, the
applicant or licensee shall submit any information, including
information related to reasonable business and personal expenses,
requested by the State Board of Equalization or the Franchise Tax
Board, whichever is applicable, for purposes of making that
determination.
(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
taxes, or entry into an installment payment agreement
, or establishing the existence of a current financial hardship as
defined in paragraph (3) of subdivision (h) , 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, shall notify the state
governmental licensing entity and the licensee in a format prescribed
by the State Board of Equalization or the Franchise Tax Board,
whichever is applicable, 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 or the Franchise Tax Board, whichever is applicable,
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
this subdivision.
(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.
(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.
(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 that the
license was denied or suspended or the temporary license was issued
only because the licensee appeared on a list of the 500 largest tax
delinquencies pursuant to Section 7063 or 19195 of the Revenue and
Taxation Code. 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). Any
state governmental licensing entity that discloses on its Internet
Web site or other publication that the licensee has had a license
denied or suspended under this section or has been granted a
temporary license under this section shall prominently disclose, in
bold and adjacent to the information regarding the status of the
license, that the only reason the license was denied, suspended, or
temporarily issued is because the licensee failed to pay taxes.
(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 denial, refusal to renew, or suspension of a license or
the issuance of a temporary 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) A suspension of, or refusal to renew, a license or issuance of
a temporary license pursuant to this section does not constitute
denial or discipline of a licensee for purposes of any reporting
requirements to the National Practitioner Data Bank and shall not be
reported to the National Practitioner Data Bank or the Healthcare
Integrity and Protection Data Bank.
(3) Upon release from the certified list, the suspension or
revocation of the applicant's or licensee's license shall be purged
from the state governmental licensing entity's Internet Web site or
other publication within three business days. This paragraph
shall not apply to the State Bar of California.
(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) 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.
(u) No provision of this section shall be interpreted to allow a
court to review and prevent the collection of taxes prior to the
payment of those taxes in violation of the California Constitution.
(v) This section shall apply to any licensee whose name appears on
a list of the 500 largest tax delinquencies pursuant to Section 7063
or 19195 of the Revenue and Taxation Code on or afterJuly
after July 1, 2012.
SEC. 4. 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. 5. 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 either list of the 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
July 1, 2012.
SEC. 6. 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. 7. 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 6835, 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 (commencing with Section 7200), or Part 1.6
(commencing with Section 7251), of Division 2.
SEC. 8. Section 7057 is added to the Revenue and Taxation Code, to
read:
7057. (a) The board may disclose to state governmental licensing
entities identifying information of persons appearing on the list of
the 500 largest tax delinquencies pursuant to Section 7063 for
purposes of administering Section 494.5 of the Business and
Professions Code. "Identifying information" means the name,
social security number or taxpayer identification number, and the
last known address of the persons appearing on the list of the 500
largest tax delinquencies.
(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 administer Section 494.5 of the Business and Professions Code or
to inform the public of the denial, refusal to renew, or suspension
of a license or the issuance of a temporary license pursuant to
Section 494.5 of the Business and Professions Code.
(c) For purposes of this section, state governmental licensing
entity means a state governmental licensing entity as defined in
Section 494.5 of the Business and Professions Code.
SEC. 9. Section 7057.5 is added to the Revenue and Taxation Code,
to read:
7057.5. (a) The board may disclose to state agencies identifying
information of persons appearing on the list of the 500 largest tax
delinquencies pursuant to Section 7063 for purposes of administering
Section 10295.4 of the Public Contract Code. "Identifying
information" means the name, social security number or taxpayer
identification number, and the last known address of the persons
appearing on the list of the 500 largest tax delinquencies.
(b) A state agency, and any officer, employee, or agent, or former
officer, employee, or agent of a state agency, shall not disclose or
use any information obtained from the board, pursuant to this
section, except to administer Section 10295.4 of the Public Contract
Code.
SEC. 10. 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 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. 11. 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 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. The Franchise Tax Board shall refer to the
limited liability company's or the corporation's Statement of
Information filed with the Secretary of State or to the limited
liability company's or the corporation's tax return filed pursuant to
this part to determine the principal officers of the limited
liability company or corporation. Principal officers appearing on a
list solely pursuant to this paragraph shall not be subject to
Section 494.5 of the Business and Professions Code, or Section
10295.4 of the Public Contract Code.
(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. 12. 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. 13. 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. 14. Section 19533 of the Revenue and Taxation Code is amended
to read:
19533. In the event the debtor has more than one debt being
collected by the Franchise Tax Board and the amount collected by the
Franchise Tax Board is insufficient to satisfy the total amount
owing, the amount collected shall be applied in the following
priority:
(a) Payment of any delinquencies transferred for collection under
Article 5 (commencing with Section 19270) of Chapter 5.
(b) Payment of any taxes, additions to tax, penalties, interest,
fees, or other amounts due and payable under Part 7.5 (commencing
with Section 13201), Part 10 (commencing with Section 17001), Part 11
(commencing with Section 23001), or this part, and amounts
authorized to be collected under Section 19722.
(c) Payment of delinquent wages collected pursuant to the Labor
Code.
(d) Payment of delinquencies collected under Section 10878.
(e) Payment of any amounts due that are referred for collection
under Article 5.5 (commencing with Section 19280) of Chapter 5.
(f) Payment of any amounts that are referred for collection
pursuant to Section 62.9 of the Labor Code.
(g) Payment of delinquent penalties collected for the Department
of Industrial Relations pursuant to the Labor Code.
(h) Payment of delinquent fees collected for the Department of
Industrial Relations pursuant to the Labor Code.
(i) Payment of delinquencies referred by the Student Aid
Commission.
(j) Payment of any delinquencies referred for collection under
Article 7 (commencing with Section 19291) of Chapter 5.
(k) Notwithstanding the payment priority established by this
section, voluntary payments designated by the taxpayer as payment for
a personal income tax liability or as a payment on amounts
authorized to be collected under Section 19722, shall not be applied
pursuant to this priority, but shall instead be applied as
designated.
SEC. 15. 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 identifying information of persons
appearing on the list of 500 largest tax delinquencies pursuant to
Section 19195 for purposes of administering Section 494.5 of the
Business and Professions Code. "Identifying information" means
the name, social security number or taxpayer identification number,
and the last known address of the persons appearing on the list of
the 500 largest tax delinquencies.
(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 administer Section 494.5 of the Business and
Professions Code or to inform the public of the denial, refusal to
renew, or suspension of a license or the issuance of a temporary
license pursuant to Section 494.5 of the Business and Professions
Code.
(c) For purposes of this section, state governmental licensing
entity means a state governmental licensing entity as defined in
Section 494.5 of the Business and Professions Code.
SEC. 16. Section 19572 is added to the Revenue and Taxation Code,
to read:
19572. (a) The Franchise Tax Board may disclose to state agencies
identifying information of persons appearing on the list of the 500
largest tax delinquencies pursuant to Section 19195 for purposes of
administering Section 10295.4 of the Public Contract Code.
"Identifying information" means the name, social security number or
taxpayer identification number, and the last known address of the
persons appearing on the list of the 500 largest tax delinquencies.
(b) A state agency, and any officer, employee, or agent, or former
officer, employee, or agent of a state agency, shall not disclose or
use any information obtained from the Franchise Tax Board, pursuant
to this section, except to administer Section 10295.4 of Public
Contract Code.
SEC. 17. Section 34623.1 is added to the Vehicle Code, to read:
34623.1. The motor carrier permit of a licensee may be suspended
pursuant to Section 494.5 of the Business and Professions Code if a
licensee's name is included on a certified list of tax delinquencies
provided by the State Board of Equalization or the Franchise Tax
Board pursuant to Section 7063 or Section 19195, respectively of the
Revenue and Taxation Code.
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.