BILL NUMBER: SB 1185 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Price
FEBRUARY 22, 2012
An act to add Part 12.2 (commencing with Section 15910) to
Division 3 of Title 2 of the Government Code, relating to the
Centralized Intelligence Partnership Act.
LEGISLATIVE COUNSEL'S DIGEST
SB 1185, as introduced, Price. Centralized Intelligence
Partnership Act.
Existing law requires various state entities, including, but not
limited to, the State Board of Equalization, the Franchise Tax Board,
and the Department of Justice, to enforce laws relating to the
taxation and legal operation of businesses throughout the state under
their respective jurisdictions.
This bill would create a multiagency partnership, to be known as
the Centralized Intelligence Partnership, to collaborate in combating
illegal underground operations by, among other activities, providing
a central intake process and organizational structure, with an
administrator and support staff, to document, review, and evaluate
data and complaints. This bill would create an advisory committee,
comprised of one representative from each entity participating in the
partnership, to provide guidance on the activities and operations of
the partnership. This bill would require the partnership, starting
on or before July 1, 2014, to annually report to the Legislature and
entities belonging to the partnership on its activities.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) According to the Employment Development Department's analysis
of findings made by the Internal Revenue Service, the underground
economy in California is estimated to be between $60 billion and $140
billion each year.
(b) According to the State Board of Equalization, an average of $8
billion in corporate, personal, and sales and use taxes goes
uncollected in California each year, with unreported and
underreported economic activity responsible for the vast majority of
that total.
(c) The underground economy hurts all Californians. Revenues to
support government services are lost, workers are forced to go
without basic employment protections, and legitimate businesses are
confronted with unfair competition. Furthermore, the presence of the
underground economy allows human traffickers to operate and victimize
individuals who are trapped into forced labor conditions.
Regrettably, California is reported to be one of the top four human
trafficking destination states in the United States.
(d) Since the activities of many operating in the underground
economy span across multiple jurisdictions, various joint agency
enforcement efforts have been undertaken to combat the underground
economy, including, but not limited to, the creation of the Joint
Enforcement Strike Force in 1993, and the creation of the Economic
and Employment Enforcement Coalition in 2005. Furthermore, various
individual agency efforts have been created, including, but not
limited to, the State Board of Equalization's Statewide Compliance
and Outreach Program and the Contractors' State License Board's
Statewide Investigative Fraud Team. Thus, investigative collaboration
among state agencies is not a new concept in California. Many
collaborative efforts are already under way, pursuant to which
investigators periodically meet to discuss current investigations,
collaborate to conduct sting operations, and develop best practices
policies.
(e) Despite significant statewide efforts, California continues to
lose billions of dollars in annual revenue due to the underground
economy.
(f) The Legislature intends this act to enhance existing efforts
to combat the underground economy by institutionalizing collaboration
among state agencies through a Centralized Intelligence Partnership
that acquires relevant data for collaborative data analysis, economic
threat assessment, strategic planning, and provides a referral
tracking and value-added referral disbursement process. This
collaborative effort to combat the underground economy will, in turn,
further aid the state in its progress toward preventing human
trafficking. The Legislature recognizes that the state needs to
comprehensively address the underground economy and capitalize on
each agency's enforcement efforts and investigative resources by
creating the Centralized Intelligence Partnership. A key element of
this effort is to authorize and facilitate data and intelligence
sharing among the Centralized Intelligence Partnership and state
agencies. It is the intent of the Legislature in enacting this act to
focus on the criminal prosecution of those operating in the
underground economy in flagrant violation of law. Businesses that are
in compliance with state employment, safety, licensing, and tax laws
that are found to have committed minor or inadvertent violations of
existing law are to be addressed through other administrative
procedures.
(g) It is the intent of the Legislature that this act be part of
ongoing efforts by the Legislature to combat the underground economy
in this state through legislation.
SEC. 2. Part 12.2 (commencing with Section 15910) is added to
Division 3 of Title 2 of the Government Code, to read:
PART 12.2. Centralized Intelligence Partnership Act
15910. This part shall be known, and may be cited, as the
Centralized Intelligence Partnership Act.
15912. (a) The Centralized Intelligence Partnership is hereby
established in state government.
(b) For purposes of this part, the term "partnership" shall refer
to the Centralized Intelligence Partnership.
15914. (a) The partnership shall include all of the following
state entities:
(1) California Health and Human Services Agency.
(2) Department of Consumer Affairs.
(3) Department of Industrial Relations.
(4) Department of Insurance.
(5) Department of Justice.
(6) Department of Motor Vehicles.
(7) Employment Development Department.
(8) Franchise Tax Board.
(9) State Board of Equalization.
(b) The Centralized Intelligence Partnership may include any other
state or local entity that chooses to participate.
15916. (a) The advisory committee to the Centralized Intelligence
Partnership is hereby established to provide guidance to, and advice
on, the activities and operations of the partnership.
(b) The advisory committee is comprised of one representative from
each of the entities participating in the partnership. Each
representative shall be appointed by the head of the entity
participating in the partnership and serve at the pleasure of the
appointing authority.
(c) The advisory committee shall meet as needed but at least
quarterly to conduct its business.
15918. (a) To serve the best interests of the state by combating
the underground economy, the partnership shall do all of the
following to combat illegal underground operations:
(1) Provide a central intake process and organizational structure
to document, review, and evaluate data and complaints.
(2) Establish a processing center to receive and analyze data,
share complaints, and research leads from the input of each impacted
agency, including, but not limited to, federal and local law
enforcement agencies.
(3) Provide participating and nonparticipating agencies with
value-added investigative leads where collaboration opportunities
exist for felony-level criminal investigations, including, but not
limited to, referring leads to agencies with appropriate enforcement
jurisdiction.
(4) Provide that each participating and nonparticipating agency
retain jurisdictional authority over whether to pursue partnership
strategies or collaborative investigative leads based upon the
direction of their respective governing structures or available
resources.
(5) Document and provide intake data analysis, analytic data
findings, referrals, collaborative opportunities, outcomes, emerging
evasion trends, lessons learned, as well as additional enforcement,
administrative, and legislative opportunities.
(b) The scope of activities and projects undertaken by the
partnership shall be consistent with the amount of funds appropriated
by the Legislature.
(c) The Department of Justice shall house the processing center
for the partnership.
(d) The partnership may hire an administrator and staff.
15920. Notwithstanding any other law, duly authorized
representatives of members of the partnership may exchange
intelligence, data, documents, information, complaints, or lead
referrals for the purpose of investigating illegal underground
operations. Information exchanged pursuant to this section shall
retain its confidential status.
15922. On or before July 1, 2014, and annually thereafter, the
partnership shall report on its activities and accomplishments to the
Legislature and each participating member entity.