Amended in Senate June 13, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 83

Introduced by Committee on Budget (Blumenfield (Chair), Bloom, Bonilla, begin insert Campos, end insert Chesbro, Daly, Dickinson, Gordon, Jones-Sawyer, Mitchell, Mullin, Muratsuchi, Nazarian, begin delete Rendon, end delete begin insert Skinner, end insert Stone, and Ting)

January 10, 2013

begin delete An act relating to the Budget Act of 2013. end delete begin insert An act to add Section 12009 to, to add Article 4 (commencing with Section 12240) to Chapter 3 of Part 7 of Division 2 of, to add and repeal Section 12207 of, to add and repeal Article 5 (commencing with Section 6174) of Chapter 2 of Part 1 of Division 2 of, and to repeal, add and repeal, and add Sections 12201, 12204, 12251, 12253, 12254, 12257, 12258, 12260, 12301, 12302, 12303, 12304, 12305, 12307, 12412, 12413, 12421, 12422, 12423, 12427, 12428, 12429, 12431, 12433, 12434, 12491, 12493, 12494, 12601, 12602, 12631, 12632, 12636, 12636.5, 12679, 12681, 12801, 12951, 12977, 12983, 12984, and 13108 of, the Revenue and Taxation Code, and to add Section 14301.11 to the Welfare and Institutions Code, relating to health, and making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 83, as amended, Committee on Budget. begin delete Budget Act of 2013. end delete begin insert Public health: Medi-Cal managed care plan taxes. end insert

begin insert

Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which health care services are provided to qualified, low-income persons. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Under existing law, one of the methods by which Medi-Cal services are provided is pursuant to contracts with various types of managed care plans. Existing law imposes a tax on the gross premiums of insurers in lieu of other taxes on insurers, and, until July 1, 2012, imposed a tax on the total operating revenue, of a Medi-Cal managed care plan, as defined. The revenues derived from the tax on Medi-Cal managed care plans are continuously appropriated for specified purposes.

end insert begin insert

This bill would, beginning July 1, 2012, and ending July 1, 2013, impose a tax on the total operating revenue of a Medi-Cal managed care plan, as defined. The proceeds from the tax would be continuously appropriated from the Children’s Health and Human Services Special Fund to the State Department of Health Care Services and the Managed Risk Medical Insurance Board for specified purposes. This bill also would authorize the Controller to loan funds in the Children’s Health and Human Services Special Fund to the General Fund, as provided.

end insert begin insert

Existing law requires every return required to be filed with the State Insurance Commissioner pursuant to provisions governing taxes on the gross premiums of insurers to be signed by the insurer or an executive officer of the insurer and to be made under oath or contain a written declaration that it is made under penalty of perjury.

end insert begin insert

This bill would also require Medi-Cal managed care plans to file returns with the commissioner under oath or with a written declaration that is made under penalty of perjury. By expanding the crime of perjury, this bill would impose a state-mandated local program.

end insert begin insert

The Sales and Use Tax Law imposes a sales tax on retailers for the privilege of selling tangible personal property at retail, measured by the gross receipts from the sale of tangible personal property sold at retail in this state. A violation of specified provisions of this law is a crime.

end insert begin insert

This bill would, on July 1, 2013, and before July 1, 2016, except if specified contingencies occur as provided, and only if and to the extent that federal financial participation is available and necessary federal approvals have been obtained, impose a sales tax on sellers of Medi-Cal managed care plans for the privilege of selling Medi-Cal health care services at retail, measured by the gross receipts from the sale of those services in this state at a specified rate of those gross receipts, as provided. This bill would specify that a seller is a person or entity that enters into a contract with the State Department of Health Care Services to provide for specified health care services, as provided. This bill would provide for the administration of the tax by the State Board of Equalization. This bill would require all revenues, less refunds, derived from the taxes to be deposited into the Children’s Health and Human Services Special Fund. This bill would continuously appropriate the revenues in the fund to the State Department of Health Care Services solely for purposes of funding managed care rates for health care services for children, seniors, persons with disabilities, and duel eligibles in the Medi-Cal program that reflect the cost of services and acuity of the population served. By changing the definition of a crime, the bill would impose a state-mandated local program.

end insert begin insert

This bill would also appropriate $245,000,000 from the Federal Trust Fund to the Managed Risk Medical Insurance Board for the purposes of the Healthy Families Program to be available for expenditure in the 2012-13 fiscal year.

end insert begin insert

 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.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

end insert begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2013.

end delete

Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Article 5 (commencing with Section 6174) is
added to Chapter 2 of Part 1 of Division 2 of the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 5. end insert   Inclusion of Medi-Cal Managed Care Plans in Sales
Tax

 

begin insert 6174. end insert   

For purposes of this article, notwithstanding any
provision of Chapter 1 (commencing with Section 6001), the
following words have the following meanings in extending the
sales tax to sellers of Medi-Cal health care services:

(a) “Gross receipts” means the total amount received by a seller
of a Medi-Cal managed care plan in premium or capitation
payments for the coverage or provision of all health care services,
including, but not limited to, Medi-Cal services. “Gross receipts”
shall not include amounts received by a Medi-Cal managed care
plan pursuant to a subcontract with a Medi-Cal managed care
plan to provide health care services to Medi-Cal beneficiaries.

(b) “Seller” means any person, other than an insurer as
described in Section 12003 or a dental managed care plan as
described in Section 14087.46 of the Welfare and Institutions Code,
or any entity that enters into a contract with the State Department
of Health Care Services pursuant to Article 2.7 (commencing with
Section 14087.3), Article 2.8 (commencing with Section 14087.5),
Article 2.81 (commencing with Section 14087.96), Article 2.82
(commencing with Section 14087.98), Article 2.9 (commencing
with Section 14088), or Article 2.91 (commencing with Section
14089) of Chapter 7 of, or pursuant to Article 1 (commencing with
Section 14200) or Article 7 (commencing with Section 14490) of
Chapter 8 of, Part 3 of Division 9 of the Welfare and Institutions
Code.

(c) “At retail” means a sale for any purpose other than resale.

(d) “Sale” means the provision of a Medi-Cal managed care
plan.

begin insert 6175. end insert   

Notwithstanding any other provisions in this part, for
the privilege of selling Medi-Cal health care services at retail, a
tax is hereby extended to all sellers of Medi-Cal managed care
plans at the rate of 3.9375 percent of the gross receipts of any
seller from the sale of all Medi-Cal managed care plans sold at
retail in this state.

begin insert 6176. end insert   

For the efficient administration of this article and the
collection of tax from sellers, a seller shall register with the State
Board of Equalization and report and pay the tax to the State
Board of Equalization, which shall collect the tax.

begin insert 6177. end insert   

For the efficient administration of this article and the
collection of tax from sellers, Article 1.1 (commencing with Section
6470) of Chapter 5, pertaining to prepayment of taxes, shall not
apply to sellers until no later than three months after the date that
federal financial participation is available and any necessary
federal approvals have been obtained.

begin insert 6178. end insert   

A seller shall file with the board an application pursuant
to Section 6066, which shall state that the applicant will actively
engage in the retail sale of Medi-Cal health care services.

begin insert 6179. end insert   

After compliance by the seller with Section 6178 and by
the seller and the board with Section 6067, the board shall grant
and issue a permit or permits to each applicant pursuant to Section
6067.

begin insert 6180. end insert   

A permit issued pursuant to this article shall be held
only by a seller that is actively engaged in the retail sale of
Medi-Cal health care services. Any seller not so engaged shall
forthwith surrender its permit to the board for cancellation. The
board may revoke the permit of a seller found to be not actively
engaged in the retail sale of Medi-Cal health care services.

begin insert 6181. end insert   

For purposes of Section 6486, a seller is a retailer.

begin insert 6182. end insert   

Every seller shall keep any records, receipts, contracts,
and other pertinent papers in such form as the board may require.

begin insert 6183. end insert   

The board, or any person authorized in writing by the
board, may examine the books, papers, records, and equipment
of any seller, and may investigate the character of the business of
the seller, pursuant to Section 7054.

begin insert 6184. end insert   

Notwithstanding Section 7101, all revenues, less refunds,
derived from the taxes extended by this article shall be deposited
in the State Treasury to the credit of the Children’s Health and
Human Services Special Fund. Funds deposited in the Children’s
Health and Human Services Special Fund pursuant to this section
are hereby continuously appropriated to the State Department of
Health Care Services solely for purposes of funding managed care
rates for health care services for children, seniors, persons with
disabilities, and dual eligibles in the Medi-Cal program that reflect
the cost of services and acuity of the population served. The State
Department of Health Care Services shall provide a quarterly
reconciliation of tax revenue utilization to Medi-Cal managed care
plans including an itemized accounting of the dollars as a part of
the rate setting process.

begin insert 6184.5. end insert   

Notwithstanding the Bradley-Burns Uniform Local
Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)),
the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), and Part 1.7 (commencing with Section 7285), no
county, city, or district shall impose a sales or use tax on the gross
receipts defined in Section 6174.

begin insert 6185. end insert   

Notwithstanding any other law, the Controller may use
the funds in the Children’s Health and Human Services Special
Fund for cashflow loans to the General Fund as provided in
Sections 16310 and 16381 of the Government Code.

begin insert 6186. end insert   

A seller subject to the tax imposed pursuant to this article
shall be assessed the amount the seller will be required to pay, but
the seller shall not be required to pay the tax if the State
Department of Health Care Services has not fulfilled its obligations
to provide actuarially sound, monthly capitation payments to the
seller, which are certified as actuarially sound by State Department
of Health Care Services’ actuaries or contracted actuaries.

begin insert 6187. end insert   

This article shall be implemented only if and to the extent
that federal financial participation under Title XIX of the federal
Social Security Act (42 U.S.C. 1395 et seq.) is available and any
necessary federal approvals have been obtained. This article is
automatically repealed if it is delayed based upon a challenge
under federal law.

begin insert 6188. end insert   

This article shall have no force or effect if there is a final
judicial determination made by any state or federal court that is
not appealed, in any action by any party, or a final determination
by the administrator of the federal Centers for Medicare and
Medicaid Services, that disallows, defers, or alters the
implementation of this article.

begin insert 6189. end insert   

This article shall be operative on July 1, 2013, and shall
become inoperative on July 1, 2016. As of January 1, 2017, this
article is repealed. A tax imposed by this article shall continue to
be due and payable until the tax is paid.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 12009 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12009. end insert   

(a) “Medi-Cal managed care plan” or “plan” means
any individual, organization, or entity, other than an insurer as
described in Section 12003 or a dental managed care plan as
described in Section 14087.46 of the Welfare and Institutions Code,
that enters into a contract with the State Department of Health
Care Services pursuant to Article 2.7 (commencing with Section
14087.3), Article 2.8 (commencing with Section 14087.5), Article
2.81 (commencing with Section 14087.96), Article 2.82
(commencing with Section 14087.98), Article 2.9 (commencing
with Section 14088), or Article 2.91 (commencing with Section
14089) of Chapter 7 of, or pursuant to Article 1 (commencing with
Section 14200) or Article 7 (commencing with Section 14490) of
Chapter 8 of, Part 3 of Division 9 of the Welfare and Institutions
Code.

(b) This section shall become operative on July 1, 2012.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 12201 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12201.  

(a) Every insurer doing business in this state shall
annually pay to the state a tax on the bases, at the rates, and subject
to the deductions from the tax hereinafter specified. For purposes
of the tax imposed by this chapter, “insurer” shall be deemed to
include a home protection company as defined in Section 12740
of the Insurance Code.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 12201 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12201. end insert   

(a) Every insurer and Medi-Cal managed care plan
doing business in this state shall annually pay to the state a tax
on the bases, at the rates, and subject to the deductions from the
tax hereinafter specified. For purposes of the tax imposed by this
chapter, “insurer” shall be deemed to include a home protection
company as defined in Section 12740 of the Insurance Code.

(b) The Children’s Health and Human Services Special Fund
shall continue to exist in the State Treasury. Notwithstanding
Section 13340 of the Government Code, the revenues derived from
the imposition of the tax by this chapter on Medi-Cal managed
care plans are hereby continuously appropriated as follows:

(1) A percentage of the revenues that is equal to the difference
between 100 percent and the applicable federal medical assistance
percentage to the State Department of Health Care Services, for
purposes of the Medi-Cal program.

(2) (A) After deducting the revenues appropriated pursuant to
paragraph (1), one hundred twenty-five million dollars
($125,000,000) of the revenues shall be allocated to the Managed
Risk Medical Insurance Board for purposes of the Healthy Families
Program, including, but not limited to, repaying the loan made
under subparagraph (B), and any remaining revenue shall be
allocated to the State Department of Health Care Services for
purposes of funding managed care rates for health care services
for children, seniors, persons with disabilities, and dual eligibles
in the Medi-Cal program.

(B) Notwithstanding Chapter 1 (commencing with Section
18000) of Part 6 of Division 9 of the Welfare and Institutions Code,
for the 2012-13 fiscal year, upon approval by the Department of
Finance, loans not to exceed one hundred twenty-five million
dollars ($125,000,000) in total shall be made available to the
Managed Risk Medical Insurance Board from the General Fund
from funds not otherwise appropriated to cover the costs of the
Healthy Families Program. Any loan amount shall be repaid by
June 30, 2014, using the revenues described in subparagraph (A).

(c) Beginning on the effective date of this act, the Insurance
Commissioner shall report the amount of revenue derived from
the tax imposed on Medi-Cal managed care plans pursuant to this
section to the California Health and Human Services Agency, the
Joint Legislative Budget Committee, and the Department of
Finance.

(d) Notwithstanding any other law, the Controller may use the
funds in the Children’s Health and Human Services Special Fund
for cashflow loans to the General Fund as provided in Sections
16310 and 16381 of the Government Code.

(e) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed. A tax imposed by this section shall continue to
be due and payable until the tax is paid.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 12201 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12201. end insert   

(a) Every insurer doing business in this state shall
annually pay to the state a tax on the bases, at the rates, and
subject to the deductions from the tax hereinafter specified. For
purposes of the tax imposed by this chapter, “insurer” shall be
deemed to include a home protection company as defined in Section
12740 of the Insurance Code.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 12204 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12204.  

(a) The tax imposed on insurers by this chapter is in
lieu of all other taxes and licenses, state, county, and municipal,
upon those insurers and their property, except:

(1) Taxes upon their real estate.

(2) Any retaliatory exactions imposed by paragraph (3) of
subdivision (f) of Section 28 of Article XIII of the California
Constitution.

(3) The tax on ocean marine insurance.

(4) Motor vehicle and other vehicle registration license fees and
any other tax or license fee imposed by the state upon vehicles,
motor vehicles or the operation thereof.

(5) That each corporate or other attorney-in-fact of a reciprocal
or interinsurance exchange shall be subject to all taxes imposed
upon corporations or others doing business in the state, other than
taxes on income derived from its principal business as
attorney-in-fact.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 12204 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12204. end insert   

(a) The tax imposed on insurers by this chapter is in
lieu of all other taxes and licenses, state, county, and municipal,
upon those insurers and their property, except:

(1) Taxes upon their real estate.

(2) Any retaliatory exactions imposed by paragraph (3) of
subdivision (f) of Section 28 of Article XIII of the California
Constitution.

(3) The tax on ocean marine insurance.

(4) Motor vehicle and other vehicle registration license fees
and any other tax or license fee imposed by the state upon vehicles,
motor vehicles or the operation thereof.

(5) That each corporate or other attorney in fact of a reciprocal
or interinsurance exchange shall be subject to all taxes imposed
upon corporations or others doing business in the state, other than
taxes on income derived from its principal business as attorney in
fact.

(b) This section shall not apply to any Medi-Cal managed care
plan and to any tax imposed on that plan by this chapter.

(c) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 12204 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12204. end insert   

(a) The tax imposed on insurers by this chapter is in
lieu of all other taxes and licenses, state, county, and municipal,
upon those insurers and their property, except:

(1) Taxes upon their real estate.

(2) Any retaliatory exactions imposed by paragraph (3) of
subdivision (f) of Section 28 of Article XIII of the California
Constitution.

(3) The tax on ocean marine insurance.

(4) Motor vehicle and other vehicle registration license fees
and any other tax or license fee imposed by the state upon vehicles,
motor vehicles, or the operation thereof.

(5) That each corporate or other attorney-in-fact of a reciprocal
or interinsurance exchange shall be subject to all taxes imposed
upon corporations or others doing business in the state, other than
taxes on income derived from its principal business as
attorney-in-fact.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 12207 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12207. end insert   

(a) Notwithstanding any other provision of this part,
no credit shall be allowed under Section 12206, 12208, or 12209
against the tax imposed on Medi-Cal managed care plans pursuant
to Section 12201.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Article 4 (commencing with Section 12240) is added
to Chapter 3 of Part 7 of Division 2 of the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 4. end insert   Basis of Tax for Medi-Cal Managed Care Plans

 

begin insert 12240. end insert   

In the case of a Medi-Cal managed care plan, the basis
of the tax is, in respect to each year, total operating revenue.

begin insert 12241. end insert   

For purposes of this article, “total operating revenue”
means all amounts received by a Medi-Cal managed care plan in
premium or capitation payments for the coverage or provision of
all health care services, including, but not limited to, Medi-Cal
services. Total operating revenue shall not include amounts
received by a Medi-Cal managed care plan pursuant to a
subcontract with a Medi-Cal managed care plan to provide health
care services to Medi-Cal beneficiaries.

begin insert 12242. end insert   

This article shall be operative on July 1, 2012.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 12251 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12251.  

(a) For the calendar year 1970, and each calendar year
thereafter, insurers transacting insurance in this state and whose
annual tax for the preceding calendar year was five thousand dollars
($5,000) or more shall make prepayments of the annual tax for the
current calendar year imposed by Section 28 of Article XIII of the
California Constitution and this part, provided that no prepayments
shall be made with respect to the tax on ocean marine insurance
underwriting profit or any retaliatory tax.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 12251 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12251. end insert   

(a) For the calendar year 1970, and each calendar
year thereafter, insurers transacting insurance in this state and
whose annual tax for the preceding calendar year was five
thousand dollars ($5,000) or more shall make prepayments of the
annual tax for the current calendar year imposed by Section 28
of Article XIII of the California Constitution and this part, provided
that no prepayments shall be made with respect to the tax on ocean
marine insurance underwriting profit or any retaliatory tax.

(b) Medi-Cal managed care plans shall make prepayments of
the tax imposed by Section 12201 for the current calendar year,
except that no prepayments shall be required prior to the effective
date of the act adding this subdivision, and no penalties and
interest shall be imposed pursuant to Section 12261 for not making
those prepayments.

(c) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 12251 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12251. end insert   

(a) For the calendar year 1970, and each calendar
year thereafter, insurers transacting insurance in this state and
whose annual tax for the preceding calendar year was five
thousand dollars ($5,000) or more shall make prepayments of the
annual tax for the current calendar year imposed by Section 28
of Article XIII of the California Constitution and this part, provided
that no prepayments shall be made with respect to the tax on ocean
marine insurance underwriting profit or any retaliatory tax.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 12253 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12253.  

(a) Each insurer required to make prepayments shall
remit them on or before each of the dates of April 1st, June 1st,
September 1st, and December 1st of the current calendar year.
Remittances for prepayments shall be made payable to the
Controller and shall be delivered to the office of the commissioner,
accompanied by a prepayment form prescribed by the
commissioner.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 12253 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12253. end insert   

(a) Each insurer and Medi-Cal managed care plan
required to make prepayments shall remit them on or before each
of the dates of April 1, June 1, September 1, and December 1 of
the current calendar year. Remittances for prepayments shall be
made payable to the Controller and shall be delivered to the office
of the commissioner, accompanied by a prepayment form
prescribed by the commissioner.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 12253 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12253. end insert   

(a) Each insurer required to make prepayments shall
remit them on or before each of the dates of April 1, June 1,
September 1, and December 1 of the current calendar year.
Remittances for prepayments shall be made payable to the
Controller and shall be delivered to the office of the commissioner,
accompanied by a prepayment form prescribed by the
commissioner.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 12254 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12254.  

(a) The amount of each prepayment shall be 25 percent
of the amount of the annual insurance tax liability reported on the
return of the insurer for the preceding calendar year.

(b) In establishing the prepayment amount of an insurer that
has acquired the business of another insurer, the amount of tax
liability of the acquiring insurer reported for the preceding calendar
year shall be deemed to include the amount of tax liability of the
acquired insurer reported for that year.

(c) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 12254 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12254. end insert   

(a) (1) For each insurer, the amount of each
prepayment shall be 25 percent of the amount of the annual
insurance tax liability reported on the return of the insurer for the
preceding calendar year.

(2) For each Medi-Cal managed care plan, the amount of each
prepayment shall be 25 percent of the amount of tax the plan
estimates as the amount of tax imposed by Section 12201 with
respect to the plan.

(b) In establishing the prepayment amount of an insurer that
has acquired the business of another insurer, the amount of tax
liability of the acquiring insurer reported for the preceding
calendar year shall be deemed to include the amount of tax liability
of the acquired insurer reported for that year.

(c) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 12254 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12254. end insert   

(a) The amount of each prepayment shall be 25 percent
of the amount of the annual insurance tax liability reported on the
return of the insurer for the preceding calendar year.

(b) In establishing the prepayment amount of an insurer that
has acquired the business of another insurer, the amount of tax
liability of the acquiring insurer reported for the preceding
calendar year shall be deemed to include the amount of tax liability
of the acquired insurer reported for that year.

(c) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 12257 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12257.  

(a) If the total amount of prepayments for any calendar
year exceeds the amount of annual tax for that year, the excess
shall be treated as an overpayment of annual tax and, at the election
of the insurer, may be credited against the amounts due and payable
for the first prepayment of the following year. Any amount of the
overpayment not so credited shall be allowed as a credit or refund
under Article 2 (commencing with Section 12977) of Chapter 7
of this part.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 12257 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12257. end insert   

(a) If the total amount of prepayments for any calendar
year exceeds the amount of annual tax for that year, the excess
shall be treated as an overpayment of annual tax and, at the
election of the insurer or Medi-Cal managed care plan, may be
credited against the amounts due and payable for the first
prepayment of the following year. Any amount of the overpayment
not so credited shall be allowed as a credit or refund under Article
2 (commencing with Section 12977) of Chapter 7.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 12257 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12257. end insert   

(a) If the total amount of prepayments for any calendar
year exceeds the amount of annual tax for that year, the excess
shall be treated as an overpayment of annual tax and, at the
election of the insurer, may be credited against the amounts due
and payable for the first prepayment of the following year. Any
amount of the overpayment not so credited shall be allowed as a
credit or refund under Article 2 (commencing with Section 12977)
of Chapter 7 of this part.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 12258 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12258.  

(a) Any insurer that fails to pay any prepayment within
the time required shall pay a penalty of 10 percent of the amount
of the required prepayment, plus interest at the modified adjusted
rate per month, or fraction thereof, established pursuant to Section
6591.5, from the due date of the prepayment until the date of
payment but not for any period after the due date of the annual
tax. Assessments of prepayment deficiencies may be made in the
manner provided by deficiency assessments of the annual tax.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 12258 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12258. end insert   

(a) (1) Any insurer or Medi-Cal managed care plan
that fails to pay any prepayment within the time required shall pay
a penalty of 10 percent of the amount of the required prepayment,
plus interest at the modified adjusted rate per month, or fraction
thereof, established pursuant to Section 6591.5, from the due date
of the prepayment until the date of payment but not for any period
after the due date of the annual tax. Assessments of prepayment
deficiencies may be made in the manner provided by deficiency
assessments of the annual tax.

(2) This section shall only apply, with regard to Medi-Cal
managed care plans, to the failure to pay any prepayments that
occur on or after the effective date of the act that added this
section.

(b)  Notwithstanding any other law, 100 percent of the tax due
for total operating revenue, as defined by Section 12241, that a
Medi-Cal managed care plan receives for the service periods from
January 1, 2009, to June 30, 2013, inclusive, not previously paid,
but which continue to be subject to tax, shall be paid no later than
30 days after the effective date of this section. If a Medi-Cal
managed care plan subsequently receives additional amounts
includable in its total operating revenue for the service periods
referenced in this section, 100 percent of the tax shall continue to
be due and shall be paid no later than 30 days after receipt of
those amounts.

(c) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 12258 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12258. end insert   

(a) Any insurer that fails to pay any prepayment within
the time required shall pay a penalty of 10 percent of the amount
of the required prepayment, plus interest at the modified adjusted
rate per month, or fraction thereof, established pursuant to Section
6591.5, from the due date of the prepayment until the date of
payment but not for any period after the due date of the annual
tax. Assessments of prepayment deficiencies may be made in the
manner provided by deficiency assessments of the annual tax.

(b) Notwithstanding any other law, if a Medi-Cal managed care
plan, as defined in subdivision (a) of Section 12009, receives
additional amounts includable in its total operating revenue, as
defined in Section 12241, for the service periods from January 1,
2009, to June 30, 2013, inclusive, those amounts shall continue to
be subject to the tax imposed by Section 12201, as added by Section
4 of the act adding this section, as added by Section 5 of Chapter
157 of the Statutes of 2009, as added by Section 31 of Chapter 717
of the Statutes of 2010, and as added by Section 2 of Chapter 11
of the First Extraordinary Session of the Statutes of 2011, and 100
percent of the tax continues to be due and shall be submitted to
the Department of Insurance no later than 30 days after receipt
of those amounts.

(c) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 26. end insert   

end insert

begin insert Section 12260 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12260.  

(a) Notwithstanding any other provision of this article,
the commissioner may relieve an insurer of its obligation to make
prepayments where the insurer establishes to the satisfaction of
the commissioner that either the insurer has ceased to transact
insurance in this state, or the insurer’s annual tax for the current
year will be less than five thousand dollars ($5,000).

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 27. end insert   

end insert

begin insert Section 12260 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12260. end insert   

(a) Notwithstanding any other provision of this article,
the commissioner may relieve an insurer or Medi-Cal managed
care plan of its obligation to make prepayments where the insurer
or Medi-Cal managed care plan establishes to the satisfaction of
the commissioner that the insurer has ceased to transact insurance
in this state or the Medi-Cal managed care plan has ceased to
operate a plan in this state, or the insurer’s or Medi-Cal managed
care plan’s annual tax for the current year will be less than five
thousand dollars ($5,000).

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 12260 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12260. end insert   

(a) Notwithstanding any other provision of this article,
the commissioner may relieve an insurer of its obligation to make
prepayments where the insurer establishes to the satisfaction of
the commissioner that either the insurer has ceased to transact
insurance in this state, or the insurer’s annual tax for the current
year will be less than five thousand dollars ($5,000).

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 12301 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12301.  

(a) The taxes imposed upon insurers by Section 28 of
Article XIII of the California Constitution and this part, except
with respect to taxes on ocean marine insurance and retaliatory
taxes, are due and payable annually on or before April 1st of the
year following the calendar year in which the insurer engaged in
the business of insurance or transacted insurance in this state. The
taxes imposed with respect to ocean marine insurance are due and
payable on or before June 15th of that year.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 12301 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12301. end insert   

(a) The taxes imposed upon insurers by Section 28 of
Article XIII of the California Constitution and this part, except
with respect to taxes on ocean marine insurance and retaliatory
taxes, are due and payable annually on or before April 1 of the
year following the calendar year in which the insurer engaged in
the business of insurance or transacted insurance in this state.
The taxes imposed with respect to ocean marine insurance are due
and payable on or before June 15 of that year.

(b) With respect to Medi-Cal managed care plans, the taxes
imposed by Section 12201 shall be due and payable on or before
April 1 of the year following the calendar year in which the plan
contracted with the State Department of Health Care Services as
described in Section 12009.

(c) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed. A tax imposed by Section 28 of the California
Constitution and this part shall continue to be due and payable
until the tax is paid.

end insert

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 12301 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12301. end insert   

(a) The taxes imposed upon insurers by Section 28 of
Article XIII of the California Constitution and this part, except
with respect to taxes on ocean marine insurance and retaliatory
taxes, are due and payable annually on or before April 1 of the
year following the calendar year in which the insurer engaged in
the business of insurance or transacted insurance in this state.
The taxes imposed with respect to ocean marine insurance are due
and payable on or before June 15 of that year.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 32. end insert   

end insert

begin insert Section 12302 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12302.  

(a) On or before April 1st (or June 15th with respect
to taxes on ocean marine insurance) every person that is subject
to any tax imposed by Section 28 of Article XIII of the California
Constitution or this part, in respect to the preceding calendar year
shall file, in duplicate, an insurance tax return with the
commissioner in the form as the commissioner may prescribe. The
return shall show that information pertaining to its insurance
business in this state as will reflect the basis of its tax as set forth
in Chapter 2 (commencing with Section 12071) and Chapter 3
(commencing with Section 12201) of this part, the computation
of the amount of tax for the period covered by the return, the total
amount of any tax prepayments made pursuant to Article 5
(commencing with Section 12251) of Chapter 3 of this part, and
any other information as the commissioner may require to carry
out the purposes of this part. Separate returns shall be filed with
respect to the following kinds of insurance:

(1) Life insurance (or life insurance and disability insurance).

(2) Ocean marine insurance.

(3) Title insurance.

(4) Insurance other than life insurance (or life insurance and
disability insurance), ocean marine insurance or title insurance.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Section 12302 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12302. end insert   

(a) On or before April 1 (or June 15 with respect to
taxes on ocean marine insurance) every person that is subject to
any tax imposed by Section 28 of Article XIII of the California
Constitution or this part, in respect to the preceding calendar year
shall file, in duplicate, a tax return with the commissioner in the
form as the commissioner may prescribe. The return shall show
that information pertaining to its insurance business, or in the
case of a Medi-Cal managed care plan, pertaining to contracts
for providing services as described in Section 12009, in this state
as will reflect the basis of its tax as set forth in Chapter 2
(commencing with Section 12071) and Chapter 3 (commencing
with Section 12201), the computation of the amount of tax for the
period covered by the return, the total amount of any tax
prepayments made pursuant to Article 5 (commencing with Section
12251) of Chapter 3, and any other information as the
commissioner may require to carry out the purposes of this part.
Separate returns shall be filed with respect to the following kinds
of insurance:

(1) Life insurance (or life insurance and disability insurance).

(2) Ocean marine insurance.

(3) Title insurance.

(4) Insurance other than life insurance (or life insurance and
disability insurance), ocean marine insurance or title insurance.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 34. end insert   

end insert

begin insert Section 12302 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12302. end insert   

(a) On or before April 1 (or June 15 with respect to
taxes on ocean marine insurance) every person that is subject to
any tax imposed by Section 28 of Article XIII of the California
Constitution or this part, in respect to the preceding calendar year
shall file, in duplicate, an insurance tax return with the
commissioner in the form as the commissioner may prescribe. The
return shall show that information pertaining to its insurance
business in this state as will reflect the basis of its tax as set forth
in Chapter 2 (commencing with Section 12071) and Chapter 3
(commencing with Section 12201) of this part, the computation of
the amount of tax for the period covered by the return, the total
amount of any tax prepayments made pursuant to Article 5
(commencing with Section 12251) of Chapter 3 of this part, and
any other information as the commissioner may require to carry
out the purposes of this part. Separate returns shall be filed with
respect to the following kinds of insurance:

(1) Life insurance (or life insurance and disability insurance).

(2) Ocean marine insurance.

(3) Title insurance.

(4) Insurance other than life insurance (or life insurance and
disability insurance), ocean marine insurance or title insurance.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 35. end insert   

end insert

begin insert Section 12303 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12303.  

(a) Every return required by this article to be filed with
the commissioner shall be signed by the insurer or an executive
officer of the insurer and shall be made under oath or contain a
written declaration that it is made under penalty of perjury. A
return of a foreign insurer may be signed and verified by its
manager residing within this state. A return of an alien insurer may
be signed and verified by the United States manager of the insurer.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 36. end insert   

end insert

begin insert Section 12303 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12303. end insert   

(a) Every return required by this article to be filed
with the commissioner shall be signed by the insurer or Medi-Cal
managed care plan or an executive officer of the insurer or plan
and shall be made under oath or contain a written declaration
that it is made under penalty of perjury. A return of a foreign
insurer may be signed and verified by its manager residing within
this state. A return of an alien insurer may be signed and verified
by the United States manager of the insurer.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 12303 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12303. end insert   

(a) Every return required by this article to be filed
with the commissioner shall be signed by the insurer or an
executive officer of the insurer and shall be made under oath or
contain a written declaration that it is made under penalty of
perjury. A return of a foreign insurer may be signed and verified
by its manager residing within this state. A return of an alien
insurer may be signed and verified by the United States manager
of the insurer.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 38. end insert   

end insert

begin insert Section 12304 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12304.  

(a) Blank forms of returns shall be furnished by the
commissioner on application, but failure to secure the form shall
not relieve any insurer from making or filing a timely return.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 39. end insert   

end insert

begin insert Section 12304 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12304. end insert   

(a) Blank forms of returns shall be furnished by the
commissioner on application, but failure to secure the form shall
not relieve any insurer or Medi-Cal managed care plan from
making or filing a timely return.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 40. end insert   

end insert

begin insert Section 12304 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12304. end insert   

(a) Blank forms of returns shall be furnished by the
commissioner on application, but failure to secure the form shall
not relieve any insurer from making or filing a timely return.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 41. end insert   

end insert

begin insert Section 12305 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12305.  

(a) The insurer required to file a return shall deliver
the return in duplicate, together with a remittance payable to the
Controller, for the amount of tax computed and shown thereon,
less any prepayments made pursuant to Article 5 (commencing
with Section 12251) of Chapter 3 of this part, to the office of the
commissioner.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 42. end insert   

end insert

begin insert Section 12305 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12305. end insert   

(a) The insurer or Medi-Cal managed care plan
required to file a return shall deliver the return in duplicate,
together with a remittance payable to the Controller, for the
amount of tax computed and shown thereon, less any prepayments
made pursuant to Article 5 (commencing with Section 12251) of
Chapter 3, to the office of the commissioner.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 43. end insert   

end insert

begin insert Section 12305 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12305. end insert   

(a) The insurer required to file a return shall deliver
the return in duplicate, together with a remittance payable to the
Controller, for the amount of tax computed and shown thereon,
less any prepayments made pursuant to Article 5 (commencing
with Section 12251) of Chapter 3 of this part, to the office of the
commissioner.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 44. end insert   

end insert

begin insert Section 12307 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12307.  

(a) Any insurer that is granted an extension shall pay,
in addition to the tax, interest at the modified adjusted rate per
month, or fraction thereof, established pursuant to Section 6591.5,
from April 1st until the date of payment.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 45. end insert   

end insert

begin insert Section 12307 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12307. end insert   

(a) Any insurer or Medi-Cal managed care plan to
which an extension is granted shall pay, in addition to the tax,
interest at the modified adjusted rate per month, or fraction thereof,
established pursuant to Section 6591.5, from April 1 until the date
of payment.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 46. end insert   

end insert

begin insert Section 12307 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12307. end insert   

(a) Any insurer that is granted an extension shall pay,
in addition to the tax, interest at the modified adjusted rate per
month, or fraction thereof, established pursuant to Section 6591.5,
from April 1 until the date of payment.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 47. end insert   

end insert

begin insert Section 12412 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12412.  

(a) Upon receipt of the duplicate copy of the return of
an insurer the board shall initially assess the tax in accordance
with the data as reported by the insurer on the return.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 48. end insert   

end insert

begin insert Section 12412 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12412. end insert   

(a) Upon receipt of the duplicate copy of the return of
an insurer or Medi-Cal managed care plan the board shall initially
assess the tax in accordance with the data as reported by the
insurer or Medi-Cal managed care plan on the return.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 49. end insert   

end insert

begin insert Section 12412 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12412. end insert   

(a) Upon receipt of the duplicate copy of the return of
an insurer the board shall initially assess the tax in accordance
with the data as reported by the insurer on the return.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 50. end insert   

end insert

begin insert Section 12413 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12413.  

(a) The board shall promptly transmit notice of its
initial assessment to the commissioner and the Controller, and if
the initial assessment differs from the amount computed by the
insurer, notice shall also be given to the insurer.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 51. end insert   

end insert

begin insert Section 12413 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12413. end insert   

(a) The board shall promptly transmit notice of its
initial assessment to the commissioner and the Controller, and if
the initial assessment differs from the amount computed by the
insurer or Medi-Cal managed care plan, notice shall also be given
to the insurer or Medi-Cal managed care plan.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 52. end insert   

end insert

begin insert Section 12413 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12413. end insert   

(a) The board shall promptly transmit notice of its
initial assessment to the commissioner and the Controller, and if
the initial assessment differs from the amount computed by the
insurer, notice shall also be given to the insurer.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 53. end insert   

end insert

begin insert Section 12421 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12421.  

(a) As soon as practicable after an insurer’s or surplus
line broker’s return is filed, the commissioner shall examine it,
together with any information within his or her possession or that
may come into his or her possession, and he or she shall determine
the correct amount of tax of the insurer or surplus line broker.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 54. end insert   

end insert

begin insert Section 12421 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12421. end insert   

(a) As soon as practicable after an insurer’s, surplus
line broker’s, or Medi-Cal managed care plan’s return is filed,
the commissioner shall examine it, together with any information
within his or her possession or that may come into his or her
possession, and he or she shall determine the correct amount of
tax of the insurer, surplus line broker, or Medi-Cal managed care
plan.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 55. end insert   

end insert

begin insert Section 12421 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12421. end insert   

(a) As soon as practicable after an insurer’s or surplus
line broker’s return is filed, the commissioner shall examine it,
together with any information within his or her possession or that
may come into his or her possession, and he or she shall determine
the correct amount of tax of the insurer or surplus line broker.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 56. end insert   

end insert

begin insert Section 12422 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12422.  

(a) If the commissioner determines that the amount of
tax disclosed by the insurer’s tax return and assessed by the board
is less than the amount of tax disclosed by his or her examination,
he or she shall propose, in writing, to the board a deficiency
assessment for the difference. The proposal shall set forth the basis
for the deficiency assessment and the details of its computation.

(b) If the commissioner determines that the amount of tax
disclosed by the surplus line broker’s tax return is less than the
amount of tax disclosed by his or her examination, he or she shall
propose, in writing, to the board a deficiency assessment for the
difference. The proposal shall set forth the basis for the deficiency
assessment and the details of its computation.

(c) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 57. end insert   

end insert

begin insert Section 12422 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12422. end insert   

(a) If the commissioner determines that the amount of
tax disclosed by the insurer’s tax return and assessed by the board
is less than the amount of tax disclosed by his or her examination,
he or she shall propose, in writing, to the board a deficiency
assessment for the difference. The proposal shall set forth the basis
for the deficiency assessment and the details of its computation.

(b) If the commissioner determines that the amount of tax
disclosed by the surplus line broker’s tax return is less than the
amount of tax disclosed by his or her examination, he or she shall
propose, in writing, to the board a deficiency assessment for the
difference. The proposal shall set forth the basis for the deficiency
assessment and the details of its computation.

(c) If the commissioner determines that the amount of tax
disclosed by the Medi-Cal managed care plan’s tax return is less
than the amount of tax disclosed by his or her examination, he or
she shall propose, in writing, to the board a deficiency assessment
for the difference. The proposal shall set forth the basis for the
deficiency assessment and the details of its computation.

(d) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 58. end insert   

end insert

begin insert Section 12422 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12422. end insert   

(a) If the commissioner determines that the amount of
tax disclosed by the insurer’s tax return and assessed by the board
is less than the amount of tax disclosed by his or her examination,
he or she shall propose, in writing, to the board a deficiency
assessment for the difference. The proposal shall set forth the basis
for the deficiency assessment and the details of its computation.

(b) If the commissioner determines that the amount of tax
disclosed by the surplus line broker’s tax return is less than the
amount of tax disclosed by his or her examination, he or she shall
propose, in writing, to the board a deficiency assessment for the
difference. The proposal shall set forth the basis for the deficiency
assessment and the details of its computation.

(c) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 59. end insert   

end insert

begin insert Section 12423 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12423.  

(a) If an insurer or surplus line broker fails to file a
return, the commissioner may require a return by mailing notice
to the insurer or surplus line broker to file a return by a specified
date or he or she may without requiring a return, or upon no return
having been filed pursuant to the demand therefor, make an
estimate of the amount of tax due for the calendar year or years in
respect to which the insurer or surplus line broker failed to file the
return. The estimate shall be made from any available information
which is in the commissioner’s possession or may come into his
or her possession, and the commissioner shall propose, in writing,
to the board a deficiency assessment for the amount of the
estimated tax. The proposal shall set forth the basis of the estimate
and the details of the computation of the tax.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 60. end insert   

end insert

begin insert Section 12423 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12423. end insert   

(a) If an insurer, surplus line broker, or Medi-Cal
managed care plan fails to file a return, the commissioner may
require a return by mailing notice to the insurer, surplus line
broker, or Medi-Cal managed care plan to file a return by a
specified date or he or she may without requiring a return, or upon
no return having been filed pursuant to the demand therefor, make
an estimate of the amount of tax due for the calendar year or years
in respect to which the insurer, surplus line broker, or Medi-Cal
managed care plan failed to file the return. The estimate shall be
made from any available information which is in the
commissioner’s possession or may come into his or her possession,
and the commissioner shall propose, in writing, to the board a
deficiency assessment for the amount of the estimated tax. The
proposal shall set forth the basis of the estimate and the details of
the computation of the tax.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 61. end insert   

end insert

begin insert Section 12423 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12423. end insert   

(a) If an insurer or surplus line broker fails to file a
return, the commissioner may require a return by mailing notice
to the insurer or surplus line broker to file a return by a specified
date or he or she may without requiring a return, or upon no return
having been filed pursuant to the demand therefor, make an
estimate of the amount of tax due for the calendar year or years
in respect to which the insurer or surplus line broker failed to file
the return. The estimate shall be made from any available
information which is in the commissioner’s possession or may
come into his or her possession, and the commissioner shall
propose, in writing, to the board a deficiency assessment for the
amount of the estimated tax. The proposal shall set forth the basis
of the estimate and the details of the computation of the tax.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 62. end insert   

end insert

begin insert Section 12427 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12427.  

(a) The board shall promptly notify the insurer or
surplus line broker of a deficiency assessment made against the
insurer or surplus line broker.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 63. end insert   

end insert

begin insert Section 12427 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12427. end insert   

(a) The board shall promptly notify the insurer, surplus
line broker, or Medi-Cal managed care plan of a deficiency
assessment made against the insurer, surplus line broker, or
Medi-Cal managed care plan.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 64. end insert   

end insert

begin insert Section 12427 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12427. end insert   

(a) The board shall promptly notify the insurer or
surplus line broker of a deficiency assessment made against the
insurer or surplus line broker.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 65. end insert   

end insert

begin insert Section 12428 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12428.  

(a) An insurer or surplus line broker against which a
deficiency assessment is made under Section 12424 or 12425 may
petition for redetermination of the deficiency assessment within
30 days after service upon the insurer or surplus line broker of the
notice thereof, by filing with the board a written petition setting
forth the grounds of objection to the deficiency assessment and
the correction sought. At the time the petition is filed with the
board, a copy of the petition shall be filed with the commissioner.

If a petition for redetermination is not filed within the period
prescribed by this section, the deficiency assessment becomes final
and due and payable at the expiration of that period.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 66. end insert   

end insert

begin insert Section 12428 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12428. end insert   

(a) An insurer, surplus line broker, or Medi-Cal
managed care plan against which a deficiency assessment is made
under Section 12424 or 12425 may petition for redetermination
of the deficiency assessment within 30 days after service upon the
insurer, surplus line broker, or Medi-Cal managed care plan of
the notice thereof, by filing with the board a written petition setting
forth the grounds of objection to the deficiency assessment and
the correction sought. At the time the petition is filed with the
board, a copy of the petition shall be filed with the commissioner.

If a petition for redetermination is not filed within the period
prescribed by this section, the deficiency assessment becomes final
and due and payable at the expiration of that period.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 67. end insert   

end insert

begin insert Section 12428 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12428. end insert   

(a) An insurer or surplus line broker against which a
deficiency assessment is made under Section 12424 or 12425 may
petition for redetermination of the deficiency assessment within
30 days after service upon the insurer or surplus line broker of
the notice thereof, by filing with the board a written petition setting
forth the grounds of objection to the deficiency assessment and
the correction sought. At the time the petition is filed with the
board, a copy of the petition shall be filed with the commissioner.

If a petition for redetermination is not filed within the period
prescribed by this section, the deficiency assessment becomes final
and due and payable at the expiration of that period.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 68. end insert   

end insert

begin insert Section 12429 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12429.  

(a) If a petition for redetermination of a deficiency
assessment is filed within the time allowed under Section 12428,
the board shall reconsider the deficiency assessment and, if the
insurer or surplus line broker has so requested in the petition, shall
grant an oral hearing for the presentation of evidence and argument
before the board or its authorized representative. The board shall
give the petitioner and the commissioner at least 20 days’ notice
of the time and place of hearing. The hearing may be continued
from time to time as may be necessary.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 69. end insert   

end insert

begin insert Section 12429 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12429. end insert   

(a) If a petition for redetermination of a deficiency
assessment is filed within the time allowed under Section 12428,
the board shall reconsider the deficiency assessment and, if the
insurer, surplus line broker, or Medi-Cal managed care plan has
so requested in the petition, shall grant an oral hearing for the
presentation of evidence and argument before the board or its
authorized representative. The board shall give the petitioner and
the commissioner at least 20 days’ notice of the time and place of
hearing. The hearing may be continued from time to time as may
be necessary.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 70. end insert   

end insert

begin insert Section 12429 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12429. end insert   

(a) If a petition for redetermination of a deficiency
assessment is filed within the time allowed under Section 12428,
the board shall reconsider the deficiency assessment and, if the
insurer or surplus line broker has so requested in the petition,
shall grant an oral hearing for the presentation of evidence and
argument before the board or its authorized representative. The
board shall give the petitioner and the commissioner at least 20
days’ notice of the time and place of hearing. The hearing may be
continued from time to time as may be necessary.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 71. end insert   

end insert

begin insert Section 12431 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12431.  

(a) The order or decision of the board upon a petition
for redetermination of a deficiency assessment becomes final 30
days after service on the insurer or surplus line broker of a notice
thereof, and any resulting deficiency assessment is due and payable
at the time the order or decision becomes final.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 72. end insert   

end insert

begin insert Section 12431 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12431. end insert   

(a) The order or decision of the board upon a petition
for redetermination of a deficiency assessment becomes final 30
days after service on the insurer, surplus line broker, or Medi-Cal
managed care plan of a notice thereof, and any resulting deficiency
assessment is due and payable at the time the order or decision
becomes final.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 73. end insert   

end insert

begin insert Section 12431 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12431. end insert   

(a) The order or decision of the board upon a petition
for redetermination of a deficiency assessment becomes final 30
days after service on the insurer or surplus line broker of a notice
thereof, and any resulting deficiency assessment is due and payable
at the time the order or decision becomes final.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 74. end insert   

end insert

begin insert Section 12433 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12433.  

(a) If before the expiration of the time prescribed in
Section 12432 for giving of a notice of deficiency assessment the
insurer or surplus line broker has consented in writing to the giving
of the notice after that time, the notice may be given at any time
prior to the expiration of the time agreed upon. The period so
agreed upon may be extended by subsequent agreements in writing
made before the expiration of the period previously agreed upon.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 75. end insert   

end insert

begin insert Section 12433 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12433. end insert   

(a) If before the expiration of the time prescribed in
Section 12432 for giving of a notice of deficiency assessment the
insurer, surplus line broker, or Medi-Cal managed care plan has
consented in writing to the giving of the notice after that time, the
notice may be given at any time prior to the expiration of the time
agreed upon. The period so agreed upon may be extended by
subsequent agreements in writing made before the expiration of
the period previously agreed upon.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 76. end insert   

end insert

begin insert Section 12433 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12433. end insert   

(a) If before the expiration of the time prescribed in
Section 12432 for giving of a notice of deficiency assessment the
insurer or surplus line broker has consented in writing to the giving
of the notice after that time, the notice may be given at any time
prior to the expiration of the time agreed upon. The period so
agreed upon may be extended by subsequent agreements in writing
made before the expiration of the period previously agreed upon.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 77. end insert   

end insert

begin insert Section 12434 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12434.  

(a) Any notice required by this article shall be placed
in a sealed envelope, with postage paid, addressed to the insurer
or surplus line broker at its address as it appears in the records of
the commissioner or the board. The giving of notice shall be
deemed complete at the time of deposit of the notice in the United
States Post Office, or a mailbox, subpost office, substation or mail
chute or other facility regularly maintained or provided by the
United States Postal Service, without extension of time for any
reason. In lieu of mailing, a notice may be served personally by
delivering to the person to be served and service shall be deemed
complete at the time of the delivery. Personal service to a
corporation may be made by delivery of a notice to any person
designated in the Code of Civil Procedure to be served for the
corporation with summons and complaint in a civil action.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 78. end insert   

end insert

begin insert Section 12434 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12434. end insert   

(a) Any notice required by this article shall be placed
in a sealed envelope, with postage paid, addressed to the insurer,
surplus line broker, or Medi-Cal managed care plan at its address
as it appears in the records of the commissioner or the board. The
giving of notice shall be deemed complete at the time of deposit
of the notice in the United States Post Office, or a mailbox, subpost
office, substation or mail chute or other facility regularly
maintained or provided by the United States Postal Service, without
extension of time for any reason. In lieu of mailing, a notice may
be served personally by delivering to the person to be served and
service shall be deemed complete at the time of the delivery.
Personal service to a corporation may be made by delivery of a
notice to any person designated in the Code of Civil Procedure to
be served for the corporation with summons and complaint in a
civil action.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 79. end insert   

end insert

begin insert Section 12434 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12434. end insert   

(a) Any notice required by this article shall be placed
in a sealed envelope, with postage paid, addressed to the insurer
or surplus line broker at its address as it appears in the records
of the commissioner or the board. The giving of notice shall be
deemed complete at the time of deposit of the notice in the United
States Post Office, or a mailbox, subpost office, substation or mail
chute or other facility regularly maintained or provided by the
United States Postal Service, without extension of time for any
reason. In lieu of mailing, a notice may be served personally by
delivering to the person to be served and service shall be deemed
complete at the time of the delivery. Personal service to a
corporation may be made by delivery of a notice to any person
designated in the Code of Civil Procedure to be served for the
corporation with summons and complaint in a civil action.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 80. end insert   

end insert

begin insert Section 12491 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12491.  

(a) Every tax levied upon an insurer under the
provisions of Article XIII of the California Constitution and of
this part is a lien upon all property and franchises of every kind
and nature belonging to the insurer, and has the effect of a
judgment against the insurer.

(b) (1) Every tax levied upon a surplus line broker under the
provisions of Part 7.5 (commencing with Section 13201) of
Division 2 is a lien upon all property and franchises of every kind
and nature belonging to the surplus line broker, and has the effect
of a judgment against the surplus line broker.

(2) A lien levied pursuant to this subdivision shall not exceed
the amount of unpaid tax collected by the surplus line broker.

(c) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 81. end insert   

end insert

begin insert Section 12491 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12491. end insert   

(a) Every tax levied upon an insurer under Article XIII
of the California Constitution and this part is a lien upon all
property and franchises of every kind and nature belonging to the
insurer, and has the effect of a judgment against the insurer.

(b) (1) Every tax levied upon a surplus line broker under Part
7.5 (commencing with Section 13201) of Division 2 is a lien upon
all property and franchises of every kind and nature belonging to
the surplus line broker, and has the effect of a judgment against
the surplus line broker.

(2) A lien levied pursuant to this subdivision shall not exceed
the amount of unpaid tax collected by the surplus line broker.

(c) (1) Every tax levied upon a Medi-Cal managed care plan
under Chapter 1 (commencing with Section 12001) is a lien upon
all property and franchises of every kind and nature belonging to
the Medi-Cal managed care plan, and has the effect of a judgment
against the Medi-Cal managed care plan.

(2) A lien levied pursuant to this subdivision shall not exceed
the amount of unpaid tax collected by the Medi-Cal managed care
plan.

(d) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 82. end insert   

end insert

begin insert Section 12491 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12491. end insert   

(a) Every tax levied upon an insurer under the
provisions of Article XIII of the California Constitution and of this
part is a lien upon all property and franchises of every kind and
nature belonging to the insurer, and has the effect of a judgment
against the insurer.

(b) (1) Every tax levied upon a surplus line broker under the
provisions of Part 7.5 (commencing with Section 13201) of Division
2 is a lien upon all property and franchises of every kind and
nature belonging to the surplus line broker, and has the effect of
a judgment against the surplus line broker.

(2) A lien levied pursuant to this subdivision shall not exceed
the amount of unpaid tax collected by the surplus line broker.

(c) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 83. end insert   

end insert

begin insert Section 12493 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12493.  

(a) Every lien has the effect of an execution duly levied
against all property of a delinquent insurer or surplus line broker.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 84. end insert   

end insert

begin insert Section 12493 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12493. end insert   

(a) Every lien has the effect of an execution duly levied
against all property of a delinquent insurer, surplus line broker,
or Medi-Cal managed care plan.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 85. end insert   

end insert

begin insert Section 12493 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12493. end insert   

(a) Every lien has the effect of an execution duly levied
against all property of a delinquent insurer or surplus line broker.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 86. end insert   

end insert

begin insert Section 12494 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12494.  

(a) No judgment is satisfied nor lien removed until
either:

(1) The taxes, interest, penalties, and costs are paid.

(2) The insurer’s or surplus line broker’s property is sold for
the payment thereof.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 87. end insert   

end insert

begin insert Section 12494 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12494. end insert   

(a) No judgment is satisfied nor lien removed until
either:

(1) The taxes, interest, penalties, and costs are paid.

(2) The insurer’s, surplus line broker’s, or Medi-Cal managed
care plan’s property is sold for the payment thereof.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 88. end insert   

end insert

begin insert Section 12494 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12494. end insert   

(a) No judgment is satisfied nor lien removed until
either:

(1) The taxes, interest, penalties, and costs are paid.

(2) The insurer’s or surplus line broker’s property is sold for
the payment thereof.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 89. end insert   

end insert

begin insert Section 12601 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12601.  

(a) Amounts of taxes, interest, and penalties not
remitted to the commissioner with the original return of the insurer
shall be payable to the Controller.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 90. end insert   

end insert

begin insert Section 12601 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12601. end insert   

(a) Amounts of taxes, interest, and penalties not
remitted to the commissioner with the original return of the insurer
or Medi-Cal managed care plan shall be payable to the Controller.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 91. end insert   

end insert

begin insert Section 12601 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12601. end insert   

(a) Amounts of taxes, interest, and penalties not
remitted to the commissioner with the original return of the insurer
shall be payable to the Controller.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 92. end insert   

end insert

begin insert Section 12602 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12602.  

(a) On and after January 1, 1994, and before January
1, 1995, each insurer whose annual taxes exceed fifty thousand
dollars ($50,000) shall make payment by electronic funds transfer,
as defined by Section 45 of the Insurance Code. On and after
January 1, 1995, each insurer whose annual taxes exceed twenty
thousand dollars ($20,000) shall make payment by electronic funds
transfer. The insurer shall choose one of the acceptable methods
described in Section 45 of the Insurance Code for completing the
electronic funds transfer.

(b) Payment shall be deemed complete on the date the electronic
funds transfer is initiated, if settlement to the state’s demand
account occurs on or before the banking day following the date
the transfer is initiated. If settlement to the state’s demand account
does not occur on or before the banking day following the date the
transfer is initiated, payment shall be deemed to occur on the date
settlement occurs.

(c) (1) Any insurer required to remit taxes by electronic funds
transfer pursuant to this section that remits those taxes by means
other than an appropriate electronic funds transfer, shall be assessed
a penalty in an amount equal to 10 percent of the taxes due at the
time of the payment.

(2) If the Department of Insurance finds that an insurer’s failure
to make payment by an appropriate electronic funds transfer in
accordance with subdivision (a) is due to reasonable cause or
circumstances beyond the insurer’s control, and occurred
notwithstanding the exercise of ordinary care and in the absence
of willful neglect, that insurer shall be relieved of the penalty
provided in paragraph (1).

(3) Any insurer seeking to be relieved of the penalty provided
in paragraph (1) shall file with the Department of Insurance a
statement under penalty of perjury setting forth the facts upon
which the claim for relief is based.

(d) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 93. end insert   

end insert

begin insert Section 12602 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12602. end insert   

(a) (1) On and after January 1, 1994, and before
January 1, 1995, each insurer whose annual taxes exceed fifty
thousand dollars ($50,000) shall make payment by electronic funds
transfer, as defined by Section 45 of the Insurance Code. On and
after January 1, 1995, each insurer whose annual taxes exceed
twenty thousand dollars ($20,000) shall make payment by
electronic funds transfer. The insurer shall choose one of the
acceptable methods described in Section 45 of the Insurance Code
for completing the electronic funds transfer.

(2) Each Medi-Cal managed care plan shall make payment by
electronic funds transfer, as defined by Section 45 of the Insurance
Code. The plan shall choose one of the acceptable methods
described in Section 45 of the Insurance Code for completing the
electronic funds transfer.

(b) Payment shall be deemed complete on the date the electronic
funds transfer is initiated, if settlement to the state’s demand
account occurs on or before the banking day following the date
the transfer is initiated. If settlement to the state’s demand account
does not occur on or before the banking day following the date
the transfer is initiated, payment shall be deemed to occur on the
date settlement occurs.

(c) (1) Any insurer or Medi-Cal managed care plan required
to remit taxes by electronic funds transfer pursuant to this section
that remits those taxes by means other than an appropriate
electronic funds transfer, shall be assessed a penalty in an amount
equal to 10 percent of the taxes due at the time of the payment.

(2) If the Department of Insurance finds that an insurer’s or
Medi-Cal managed care plan’s failure to make payment by an
appropriate electronic funds transfer in accordance with
subdivision (a) is due to reasonable cause or circumstances beyond
the insurer’s or Medi-Cal managed care plan’s control, and
occurred notwithstanding the exercise of ordinary care and in the
absence of willful neglect, that insurer or Medi-Cal managed care
plan shall be relieved of the penalty provided in paragraph (1).

(3) Any insurer or Medi-Cal managed care plan seeking to be
relieved of the penalty provided in paragraph (1) shall file with
the Department of Insurance a statement under penalty of perjury
setting forth the facts upon which the claim for relief is based.

(d) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 94. end insert   

end insert

begin insert Section 12602 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12602. end insert   

(a) On and after January 1, 1994, and before January
1, 1995, each insurer whose annual taxes exceed fifty thousand
dollars ($50,000) shall make payment by electronic funds transfer,
as defined by Section 45 of the Insurance Code. On and after
January 1, 1995, each insurer whose annual taxes exceed twenty
thousand dollars ($20,000) shall make payment by electronic funds
transfer. The insurer shall choose one of the acceptable methods
described in Section 45 of the Insurance Code for completing the
electronic funds transfer.

(b) Payment shall be deemed complete on the date the electronic
funds transfer is initiated, if settlement to the state’s demand
account occurs on or before the banking day following the date
the transfer is initiated. If settlement to the state’s demand account
does not occur on or before the banking day following the date
the transfer is initiated, payment shall be deemed to occur on the
date settlement occurs.

(c) (1) Any insurer required to remit taxes by electronic funds
transfer pursuant to this section that remits those taxes by means
other than an appropriate electronic funds transfer, shall be
assessed a penalty in an amount equal to 10 percent of the taxes
due at the time of the payment.

(2) If the Department of Insurance finds that an insurer’s failure
to make payment by an appropriate electronic funds transfer in
accordance with subdivision (a) is due to reasonable cause or
circumstances beyond the insurer’s control, and occurred
notwithstanding the exercise of ordinary care and in the absence
of willful neglect, that insurer shall be relieved of the penalty
provided in paragraph (1).

(3) Any insurer seeking to be relieved of the penalty provided
in paragraph (1) shall file with the Department of Insurance a
statement under penalty of perjury setting forth the facts upon
which the claim for relief is based.

(d) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 95. end insert   

end insert

begin insert Section 12631 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12631.  

(a) Any insurer that fails to pay any tax, except a tax
determined as a deficiency assessment by the board under Article
3 (commencing with Section 12421) of Chapter 4, within the time
required, shall pay a penalty of 10 percent of the amount of the
tax in addition to the tax, plus interest at the modified adjusted rate
per month, or fraction thereof, established pursuant to Section
6591.5, from the due date of the tax until the date of payment.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 96. end insert   

end insert

begin insert Section 12631 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12631. end insert   

(a) Any insurer or Medi-Cal managed care plan that
fails to pay any tax, except a tax determined as a deficiency
assessment by the board under Article 3 (commencing with Section
12421) of Chapter 4, within the time required, shall pay a penalty
of 10 percent of the amount of the tax in addition to the tax, plus
interest at the modified adjusted rate per month, or fraction thereof,
established pursuant to Section 6591.5, from the due date of the
tax until the date of payment.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 97. end insert   

end insert

begin insert Section 12631 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12631. end insert   

(a) Any insurer that fails to pay any tax, except a tax
determined as a deficiency assessment by the board under Article
3 (commencing with Section 12421) of Chapter 4, within the time
required, shall pay a penalty of 10 percent of the amount of the
tax in addition to the tax, plus interest at the modified adjusted
rate per month, or fraction thereof, established pursuant to Section
6591.5, from the due date of the tax until the date of payment.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 98. end insert   

end insert

begin insert Section 12632 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
repealed. end insert

begin delete

12632.  

(a) An insurer that fails to pay any deficiency
assessment when it becomes due and payable shall, in addition to
the deficiency assessment, pay a penalty of 10 percent of the
amount of the deficiency assessment, exclusive of interest and
penalties. The amount of any deficiency assessment, exclusive of
penalties, shall bear interest at the modified adjusted rate per
month, or fraction thereof, established pursuant to Section 6591.5,
from the date on which the amount, or any portion thereof, would
have been payable if properly reported and assessed until the date
of payment.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 99. end insert   

end insert

begin insert Section 12632 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12632. end insert   

(a) An insurer or Medi-Cal managed care plan that
fails to pay any deficiency assessment when it becomes due and
payable shall, in addition to the deficiency assessment, pay a
penalty of 10 percent of the amount of the deficiency assessment,
exclusive of interest and penalties. The amount of any deficiency
assessment, exclusive of penalties, shall bear interest at the
modified adjusted rate per month, or fraction thereof, established
pursuant to Section 6591.5, from the date on which the amount,
or any portion thereof, would have been payable if properly
reported and assessed until the date of payment.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 100. end insert   

end insert

begin insert Section 12632 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12632. end insert   

(a) An insurer that fails to pay any deficiency
assessment when it becomes due and payable shall, in addition to
the deficiency assessment, pay a penalty of 10 percent of the
amount of the deficiency assessment, exclusive of interest and
penalties. The amount of any deficiency assessment, exclusive of
penalties, shall bear interest at the modified adjusted rate per
month, or fraction thereof, established pursuant to Section 6591.5,
from the date on which the amount, or any portion thereof, would
have been payable if properly reported and assessed until the date
of payment.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 101. end insert   

end insert

begin insert Section 12636 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is repealed. end insert

begin delete

12636.  

(a) If the board finds that an insurer’s failure to make
a timely return or payment is due to reasonable cause and to
circumstances beyond the insurer’s control, and which occurred
despite the exercise of ordinary care and in the absence of willful
neglect, the insurer may be relieved of the penalty provided by
Section 12258, 12282, 12287, 12631, 12632, or 12633.

Any insurer seeking to be relieved of the penalty shall file with
the board a statement under penalty of perjury setting forth the
facts upon which the claim for relief is based.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 102. end insert   

end insert

begin insert Section 12636 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12636. end insert   

(a) If the board finds that an insurer’s or Medi-Cal
managed care plan’s failure to make a timely return or payment
is due to reasonable cause and to circumstances beyond the
insurer’s or Medi-Cal managed care plan’s control, and which
occurred despite the exercise of ordinary care and in the absence
of willful neglect, the insurer or Medi-Cal managed care plan may
be relieved of the penalty provided by Section 12258, 12282,
12287, 12631, 12632, or 12633.

(b) Any insurer or Medi-Cal managed care plan seeking to be
relieved of the penalty shall file with the board a statement under
penalty of perjury setting forth the facts upon which the claim for
relief is based.

(c) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 103. end insert   

end insert

begin insert Section 12636 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12636. end insert   

(a) If the board finds that an insurer’s failure to make
a timely return or payment is due to reasonable cause and to
circumstances beyond the insurer’s control, and which occurred
despite the exercise of ordinary care and in the absence of willful
neglect, the insurer may be relieved of the penalty provided by
Section 12258, 12282, 12287, 12631, 12632, or 12633.

Any insurer seeking to be relieved of the penalty shall file with
the board a statement under penalty of perjury setting forth the
facts upon which the claim for relief is based.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 104. end insert   

end insert

begin insert Section 12636.5 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is repealed. end insert

begin delete

12636.5.  

(a) Every payment on an insurer’s or surplus line
broker’s delinquent annual tax shall be applied as follows:

(1) First, to any interest due on the tax.

(2) Second, to any penalty imposed by this part.

(3) The balance, if any, to the tax itself.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 105. end insert   

end insert

begin insert Section 12636.5 is added to the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

begin insert

begin insert 12636.5. end insert   

(a) Every payment on an insurer’s, surplus line
broker’s, or Medi-Cal managed care plan’s delinquent annual tax
shall be applied as follows:

(1) First, to any interest due on the tax.

(2) Second, to any penalty imposed by this part.

(3) The balance, if any, to the tax itself.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 106. end insert   

end insert

begin insert Section 12636.5 is added to the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

begin insert

begin insert 12636.5. end insert   

(a) Every payment on an insurer’s or surplus line
broker’s delinquent annual tax shall be applied as follows:

(1) First, to any interest due on the tax.

(2) Second, to any penalty imposed by this part.

(3) The balance, if any, to the tax itself.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 107. end insert   

end insert

begin insert Section 12679 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is repealed. end insert

begin delete

12679.  

(a) If an insurer’s right to do business has been forfeited
or its corporate powers suspended, service of summons may be
made upon the persons designated by law to be served as agents
or officers of the insurer, and these persons are the agents of the
insurer for all purposes necessary in order to prosecute the action.
In the case of corporations whose powers have been suspended,
the persons constituting the board of directors may defend the
action.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 108. end insert   

end insert

begin insert Section 12679 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12679. end insert   

(a) If an insurer’s or Medi-Cal managed care plan’s
right to do business has been forfeited or its corporate powers
suspended, service of summons may be made upon the persons
designated by law to be served as agents or officers of the insurer
or Medi-Cal managed care plan, and these persons are the agents
of the insurer or Medi-Cal managed care plan for all purposes
necessary in order to prosecute the action. In the case of
corporations whose powers have been suspended, the persons
constituting the board of directors may defend the action.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 109. end insert   

end insert

begin insert Section 12679 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12679. end insert   

(a) If an insurer’s right to do business has been
forfeited or its corporate powers suspended, service of summons
may be made upon the persons designated by law to be served as
agents or officers of the insurer, and these persons are the agents
of the insurer for all purposes necessary in order to prosecute the
action. In the case of corporations whose powers have been
suspended, the persons constituting the board of directors may
defend the action.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 110. end insert   

end insert

begin insert Section 12681 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is repealed. end insert

begin delete

12681.  

(a) In the action, a certificate of the Controller or of
the secretary of the board, showing unpaid taxes against an insurer
is prima facie evidence of:

(1) The assessment of the taxes.

(2) The delinquency.

(3) The amount of the taxes, interest, and penalties due and
unpaid to the state.

(4) That the insurer is indebted to the state in the amount of
taxes, interest, and penalties appearing unpaid.

(5) That there has been compliance with all the requirements
of law in relation to the assessment of the taxes.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 111. end insert   

end insert

begin insert Section 12681 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12681. end insert   

(a) In the action, a certificate of the Controller or of
the secretary of the board, showing unpaid taxes against an insurer
or Medi-Cal managed care plan is prima facie evidence of:

(1) The assessment of the taxes.

(2) The delinquency.

(3) The amount of the taxes, interest, and penalties due and
unpaid to the state.

(4) That the insurer or Medi-Cal managed care plan is indebted
to the state in the amount of taxes, interest, and penalties appearing
unpaid.

(5) That there has been compliance with all the requirements
of law in relation to the assessment of the taxes.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 112. end insert   

end insert

begin insert Section 12681 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12681. end insert   

(a) In the action, a certificate of the Controller or of
the secretary of the board, showing unpaid taxes against an insurer
is prima facie evidence of:

(1) The assessment of the taxes.

(2) The delinquency.

(3) The amount of the taxes, interest, and penalties due and
unpaid to the state.

(4) That the insurer is indebted to the state in the amount of
taxes, interest, and penalties appearing unpaid.

(5) That there has been compliance with all the requirements
of law in relation to the assessment of the taxes.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 113. end insert   

end insert

begin insert Section 12801 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is repealed. end insert

begin delete

12801.  

(a) Annually, between December 10th and 15th, the
Controller shall transmit to the commissioner a statement showing
the names of all insurers that failed to pay on or before December
10th the whole or any portion of the tax that became delinquent
in the preceding June or which has been unpaid for more than 30
days from the date it became due and payable as a deficiency
assessment under this part or the whole or any part of the interest
or penalties due with respect to the tax. The statement shall show
the amount of the tax, interest, and penalties due from each insurer.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 114. end insert   

end insert

begin insert Section 12801 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12801. end insert   

(a) Annually, between December 10 and 15, the
Controller shall transmit to the commissioner a statement showing
the names of all insurers and Medi-Cal managed care plans that
failed to pay on or before December 10 the whole or any portion
of the tax that became delinquent in the preceding June or which
has been unpaid for more than 30 days from the date it became
due and payable as a deficiency assessment under this part or the
whole or any part of the interest or penalties due with respect to
the tax. The statement shall show the amount of the tax, interest,
and penalties due from each insurer or Medi-Cal managed care
plan.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 115. end insert   

end insert

begin insert Section 12801 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12801. end insert   

(a) Annually, between December 10th and 15th, the
Controller shall transmit to the commissioner a statement showing
the names of all insurers that failed to pay on or before December
10th the whole or any portion of the tax that became delinquent
in the preceding June or which has been unpaid for more than 30
days from the date it became due and payable as a deficiency
assessment under this part or the whole or any part of the interest
or penalties due with respect to the tax. The statement shall show
the amount of the tax, interest, and penalties due from each insurer.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 116. end insert   

end insert

begin insert Section 12951 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is repealed. end insert

begin delete

12951.  

(a) If any amount has been illegally assessed, the board
shall set forth that fact in its records, certify the amount determined
to be assessed in excess of the amount legally assessed and the
insurer or surplus line broker against which the assessment was
made, and authorize the cancellation of the amount upon the
records of the Controller and the board. The board shall mail a
notice to the insurer or surplus line broker of any cancellation
authorized. Any proposed determination by the board pursuant to
this section with respect to an amount in excess of fifty thousand
dollars ($50,000) shall be available as a public record for at least
10 days prior to the effective date of that determination.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 117. end insert   

end insert

begin insert Section 12951 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12951. end insert   

(a) If any amount has been illegally assessed, the board
shall set forth that fact in its records, certify the amount determined
to be assessed in excess of the amount legally assessed and the
insurer, surplus line broker, or Medi-Cal managed care plan
against which the assessment was made, and authorize the
cancellation of the amount upon the records of the Controller and
the board. The board shall mail a notice to the insurer, surplus
line broker, or Medi-Cal managed care plan of any cancellation
authorized. Any proposed determination by the board pursuant to
this section with respect to an amount in excess of fifty thousand
dollars ($50,000) shall be available as a public record for at least
10 days prior to the effective date of that determination.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 118. end insert   

end insert

begin insert Section 12951 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12951. end insert   

(a) If any amount has been illegally assessed, the board
shall set forth that fact in its records, certify the amount determined
to be assessed in excess of the amount legally assessed and the
insurer or surplus line broker against which the assessment was
made, and authorize the cancellation of the amount upon the
records of the Controller and the board. The board shall mail a
notice to the insurer or surplus line broker of any cancellation
authorized. Any proposed determination by the board pursuant to
this section with respect to an amount in excess of fifty thousand
dollars ($50,000) shall be available as a public record for at least
10 days prior to the effective date of that determination.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 119. end insert   

end insert

begin insert Section 12977 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is repealed. end insert

begin delete

12977.  

(a) If the board determines that any tax, interest, or
penalty has been paid more than once or has been erroneously or
illegally collected or computed, the board shall set forth that fact
in its records of the board, certify the amount of the taxes, interest,
or penalties collected in excess of what was legally due, and from
whom they were collected or by whom paid, and certify the excess
to the Controller for credit or refund.

(b) The Controller upon receipt of a certification for credit or
refund shall credit the excess on any amounts then due and payable
from the insurer or surplus line broker under this part and refund
the balance.

(c) Any proposed determination by the board pursuant to this
section with respect to an amount in excess of fifty thousand dollars
($50,000) shall be available as a public record for at least 10 days
prior to the effective date of that determination.

(d) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 120. end insert   

end insert

begin insert Section 12977 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12977. end insert   

(a) If the board determines that any tax, interest, or
penalty has been paid more than once or has been erroneously or
illegally collected or computed, the board shall set forth that fact
in its records of the board, certify the amount of the taxes, interest,
or penalties collected in excess of what was legally due, and from
whom they were collected or by whom paid, and certify the excess
to the Controller for credit or refund.

(b) The Controller upon receipt of a certification for credit or
refund shall credit the excess on any amounts then due and payable
from the insurer, surplus line broker, or Medi-Cal managed care
plan under this part and refund the balance.

(c) Any proposed determination by the board pursuant to this
section with respect to an amount in excess of fifty thousand dollars
($50,000) shall be available as a public record for at least 10 days
prior to the effective date of that determination.

(d) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 121. end insert   

end insert

begin insert Section 12977 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12977. end insert   

(a) If the board determines that any tax, interest, or
penalty has been paid more than once or has been erroneously or
illegally collected or computed, the board shall set forth that fact
in its records of the board, certify the amount of the taxes, interest,
or penalties collected in excess of what was legally due, and from
whom they were collected or by whom paid, and certify the excess
to the Controller for credit or refund.

(b) The Controller upon receipt of a certification for credit or
refund shall credit the excess on any amounts then due and payable
from the insurer or surplus line broker under this part and refund
the balance.

(c) Any proposed determination by the board pursuant to this
section with respect to an amount in excess of fifty thousand dollars
($50,000) shall be available as a public record for at least 10 days
prior to the effective date of that determination.

(d) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 122. end insert   

end insert

begin insert Section 12983 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is repealed. end insert

begin delete

12983.  

(a) Interest shall be allowed upon the amount of any
overpayment of tax by an insurer pursuant to this part at the
modified adjusted rate per month established pursuant to Section
6591.5, from the first day of the monthly period following the
period during which the overpayment was made. For purposes of
this section, “monthly period” means the month commencing on
the day after the due date of the payment through the same date
as the due date in each successive month. In addition, a refund or
credit shall be made of any interest imposed upon the claimant
with respect to the amount being refunded or credited.

The interest shall be paid as follows:

(1) In the case of a refund, to the last day of the calendar month
following the date upon which the claimant is notified in writing
that a claim may be filed or the date upon which the claim is
approved by the board, whichever date is the earlier.

(2) In the case of a credit, to the same date as that to which
interest is computed on the tax or amount against which the credit
is applied.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 123. end insert   

end insert

begin insert Section 12983 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12983. end insert   

(a) Interest shall be allowed upon the amount of any
overpayment of tax by an insurer or Medi-Cal managed care plan
pursuant to this part at the modified adjusted rate per month
established pursuant to Section 6591.5, from the first day of the
monthly period following the period during which the overpayment
was made. For purposes of this section, “monthly period” means
the month commencing on the day after the due date of the payment
through the same date as the due date in each successive month.
In addition, a refund or credit shall be made of any interest
imposed upon the claimant with respect to the amount being
refunded or credited.

(b) The interest shall be paid as follows:

(1) In the case of a refund, to the last day of the calendar month
following the date upon which the claimant is notified in writing
that a claim may be filed or the date upon which the claim is
approved by the board, whichever date is the earlier.

(2) In the case of a credit, to the same date as that to which
interest is computed on the tax or amount against which the credit
is applied.

(c) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 124. end insert   

end insert

begin insert Section 12983 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12983. end insert   

(a) Interest shall be allowed upon the amount of any
overpayment of tax by an insurer pursuant to this part at the
modified adjusted rate per month established pursuant to Section
6591.5, from the first day of the monthly period following the
period during which the overpayment was made. For purposes of
this section, “monthly period” means the month commencing on
the day after the due date of the payment through the same date
as the due date in each successive month. In addition, a refund or
credit shall be made of any interest imposed upon the claimant
with respect to the amount being refunded or credited.

(b) The interest shall be paid as follows:

(1) In the case of a refund, to the last day of the calendar month
following the date upon which the claimant is notified in writing
that a claim may be filed or the date upon which the claim is
approved by the board, whichever date is the earlier.

(2) In the case of a credit, to the same date as that to which
interest is computed on the tax or amount against which the credit
is applied.

(c) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 125. end insert   

end insert

begin insert Section 12984 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is repealed. end insert

begin delete

12984.  

(a) If the board determines that any overpayment has
been made intentionally or made not incident to a bona fide and
orderly discharge of a liability reasonably assumed by the insurer
or surplus line broker to be imposed by law, no interest shall be
allowed on the overpayment.

(b) If any insurer or surplus line broker which has filed a claim
for refund requests the board to defer action on its claim, the board,
as a condition to deferring action, may require the claimant to
waive interest for the period during which the insurer or surplus
line broker requests the board to defer action on the claim.

(c) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 126. end insert   

end insert

begin insert Section 12984 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12984. end insert   

(a) If the board determines that any overpayment has
been made intentionally or made not incident to a bona fide and
orderly discharge of a liability reasonably assumed by the insurer,
surplus line broker, or Medi-Cal managed care plan to be imposed
by law, no interest shall be allowed on the overpayment.

(b) If any insurer, surplus line broker, or Medi-Cal managed
care plan that has filed a claim for refund requests the board to
defer action on its claim, the board, as a condition to deferring
action, may require the claimant to waive interest for the period
during which the insurer, surplus line broker, or Medi-Cal
managed care plan requests the board to defer action on the claim.

(c) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 127. end insert   

end insert

begin insert Section 12984 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 12984. end insert   

(a) If the board determines that any overpayment has
been made intentionally or made not incident to a bona fide and
orderly discharge of a liability reasonably assumed by the insurer
or surplus line broker to be imposed by law, no interest shall be
allowed on the overpayment.

(b) If any insurer or surplus line broker which has filed a claim
for refund requests the board to defer action on its claim, the
board, as a condition to deferring action, may require the claimant
to waive interest for the period during which the insurer or surplus
line broker requests the board to defer action on the claim.

(c) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 128. end insert   

end insert

begin insert Section 13108 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is repealed. end insert

begin delete

13108.  

(a) A judgment shall not be rendered in favor of the
plaintiff when the action is brought by or in the name of an assignee
of the insurer paying the tax, interest, or penalties, or by any person
other than the insurer that has paid the tax, interest, or penalties.

(b) This section shall become operative on July 1, 2012.

end delete

begin insert

begin insert SEC. 129. end insert   

end insert

begin insert Section 13108 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 13108. end insert   

(a) A judgment shall not be rendered in favor of the
plaintiff when the action is brought by or in the name of an
assignee of the insurer or Medi-Cal managed care plan paying
the tax, interest, or penalties, or by any person other than the
insurer or Medi-Cal managed care plan that has paid the tax,
interest, or penalties.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 130. end insert   

end insert

begin insert Section 13108 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 13108. end insert   

(a) A judgment shall not be rendered in favor of the
plaintiff when the action is brought by or in the name of an
assignee of the insurer paying the tax, interest, or penalties, or by
any person other than the insurer that has paid the tax, interest,
or penalties.

(b) This section shall become operative on July 1, 2013.

end insert

begin insert

begin insert SEC. 131. end insert   

end insert

begin insert Section 14301.11 is added to the end insert begin insert Welfare and
Institutions Code end insert begin insert , to read: end insert

begin insert

begin insert 14301.11. end insert   

(a) The department shall use funds attributable to
the tax on Medi-Cal managed care plans imposed by Section 12201
of the Revenue and Taxation Code for the purpose specified in
subdivision (b) of Section 12201 of the Revenue and Taxation
Code.

(b) This section shall be operative on July 1, 2012, and become
inoperative on July 1, 2013. As of January 1, 2015, this section
shall be repealed.

end insert

begin insert

begin insert SEC. 132. end insert   

end insert begin insert

There is hereby appropriated to the Managed Risk
Medical Insurance Board for the purposes of the Healthy Families
Program, to be available for expenditure in the 2012-13 fiscal
year, the sum of two hundred forty-five million dollars
($245,000,000) from the Federal Trust Fund.

end insert

begin insert

begin insert SEC. 133. end insert   

end insert begin insert

 No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution because
the only 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.

end insert

begin insert

begin insert SEC. 134. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

end insert begin insert

In order to make funding available to the Managed Risk Medical
Insurance Board for purposes of the Healthy Families Program
for the 2012--13 fiscal year, it is necessary that this act go into
effect immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2013.

end delete