BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 1411                     HEARING:  7/3/13
          AUTHOR:  Committee on Revenue & TaxationFISCAL:  Yes
          VERSION:  5/23/13                     TAX LEVY:  No
          CONSULTANT:  Grinnell                 

                  FINANCIAL INSTITUTION RECORD MATCH ADDRESSES
          

          Allows FTB to use taxpayer addresses from FIRM for purposes  
          other than collection.


                           Background and Existing Law  

          In 2010, the Legislature enacted the Financial Information  
          Record Match (FIRM) program, modeled after the Financial  
          Information Data Match program for child support collection  
          (SB 86, Committee on Budget).  FIRM directs FTB to match  
          information supplied by financial institutions to its  
          delinquent tax debtors against its customer records, and  
          applies solely to individuals who are delinquent tax  
          debtors on or after the enactment date of the bill.   
          Financial institutions must provide to the FTB on a  
          quarterly basis the name, record address, social security  
          number or taxpayer identification number for each  
          delinquent tax debtor in its customer records.  Financial  
          institutions shall not disclose to a depositor that their  
          name and information has been submitted to FTB except as  
          otherwise required by law.  The Legislature expanded the  
          program to liabilities owed to the Employment Development  
          Department and Board of Equalization in 2011 (SB 1015,  
          Committee on Budget).

          When enacted, the statute limited the use of information  
          solely to collection purposes.  However, FTB has received  
          information as part of FIRM that informs them of a  
          taxpayer's updated address, and current law bars them from  
          using the address information for any other purpose but  
          collection.


                                   Proposed Law  

          Assembly Bill 1411 allows FTB to use information supplied  




          AB 1411 - 5/23/13 -- Page 2



          to them as part of FIRM that is related to a person's  
          address for purposes other than collection.


                               State Revenue Impact
           
          FTB estimates revenue gains of $150,000 annually as they  
          are able to better identify the correct addresses for  
          taxpayers.

                                     Comments  

          1.   Purpose of the bill  .   AB 1411 is an FTB-sponsored  
          measure to improve the timeliness of taxpayer  
          communication.  


                                 Assembly Actions  

          Assembly Revenue & Taxation             6-2
          Assembly Appropriations                      12-5
          Assembly Floor                          52-24


                         Support and Opposition  (6/27/13)

           Support  :  Franchise Tax Board (sponsor).

           Opposition  :  Unknown.