BILL NUMBER: SB 442	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wyland

                        FEBRUARY 21, 2013

   An act to amend Sections 7096, 9274, 30459.4, 32474, 40214, 41174,
43525, 45870, 46625, 50156.14, 55335, and 60633.1 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 442, as introduced, Wyland. State Board of Equalization:
erroneous charges.
   Existing law requires the State Board of Equalization to
administer the Sales and Use Tax Law, Use Fuel Tax Law, Cigarette and
Tobacco Products Tax Law, Alcoholic Beverage Tax Law, Energy
Resources Surcharge Law, Emergency Telephone Users Surcharge Act,
Hazardous Substances Tax Law, Integrated Waste Management Fee Law,
Oil Spill Response, Prevention, and Administration Fees Law,
Underground Storage Tank Maintenance Fee Law, Fee Collection
Procedures Law, and Diesel Fuel Tax Law, and authorizes the board to
undertake collection action on delinquent accounts, including issuing
a levy or notice to withhold. Under existing sales and use tax laws,
a taxpayer may file a claim with the board for reimbursement of bank
charges or any other reasonable 3rd-party check charge fees incurred
by the taxpayer as a direct result of an erroneous levy or notice to
withhold by the board or erroneous processing or collection action
within 90 days of the date of the board action. Under the other laws,
a taxpayer may only file a claim for those charges or fees incurred
as a direct result of an erroneous levy or notice to withhold.
   This bill would extend to those other laws the authorization for a
taxpayer to also file a reimbursement claim with the board for bank
charges and other reasonable 3rd-party check charge fees incurred as
a direct result of an erroneous processing action or erroneous
collection action by the board within 90-days of the board action.
The bill would authorize the board to waive the 90 day filing period
for reasonable cause.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 7096 of the Revenue and Taxation Code is
amended to read:
   7096.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to withhold, erroneous processing action,
or erroneous collection action by the board. Bank and third-party
charges include a financial institution's or third party's customary
charge for complying with the levy or notice to withhold instructions
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action. The charges are those paid by
the taxpayer and not waived or reimbursed by the financial
institution or third party. Each claimant applying for reimbursement
shall file a claim with the board that shall be in the form as may be
prescribed by the board. In order for the board to grant a claim,
the board shall determine that both of the following conditions have
been satisfied:
   (1) The erroneous levy or notice to withhold, erroneous processing
action, or erroneous collection action was caused by board error.
   (2) Prior to the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action, the taxpayer
responded to all contacts by the board and provided the board with
any requested information or documentation sufficient to establish
the taxpayer's position. This provision may be waived by the board
for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the erroneous levy or notice to withhold, erroneous
processing action, or erroneous collection action.  This
provision may be waived by the board for reasonable cause. 
Within 30 days from the date the claim is received, the board shall
respond to the claim. If the board denies the claim, the taxpayer
shall be notified in writing of the reason or reasons for the denial
of the claim.
  SEC. 2.  Section 9274 of the Revenue and Taxation Code is amended
to read:
   9274.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to  withhold 
withhold, erroneous processing action, or erroneous collection action
 by the board. Bank and third-party charges include a financial
institution's or third party's customary charge for complying with
the levy or notice to withhold instructions and reasonable charges
for overdrafts that are a direct consequence of the erroneous levy or
notice to  withhold.   withhold, erroneous
processing action, or erroneous collection action.  The charges
are those paid by the taxpayer and not waived for reimbursement by
the financial institution or third party. Each claimant applying for
reimbursement shall file a claim with the board that shall be in a
form as may be prescribed by the board. In order for the board to
grant a claim, the board shall determine that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to withhold was caused by board
 error.   error, erroneous processing action, or
erroneous collection action. 
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the taxpayer responded to all contacts by the board and
provided the board with any requested information or documentation
sufficient to establish the taxpayer's position. This provision may
be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to 
withhold.   withhold, erroneous processing action, or
erroneous collection action.   This provision may be waived
by the board for reasonable cause.  Within 30 days from the date
the claim is received, the board shall respond to the claim. If the
board denies the claim, the taxpayer shall be notified in writing of
the reason or reasons for the denial of the claim.
  SEC. 3.  Section 30459.4 of the Revenue and Taxation Code is
amended to read:
   30459.4.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to  withhold  
withhold, erroneous processing action, or erroneous collection action
 by the board. Bank and third-party charges include a financial
institution's or third party's customary charge for complying with
the levy or notice to withhold instructions and reasonable charges
for overdrafts that are a direct consequence of the erroneous levy or
notice to  withhold.   withhold, erroneous
processing action, or erroneous collection action.  The charges
are those paid by the taxpayer and not waived for reimbursement by
the financial institution or third party. Each claimant applying for
reimbursement shall file a claim with the board that shall be in a
form as may be prescribed by the board. In order for the board to
grant a claim, the board shall determine that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to  withhold 
 withhold, erroneous processing action, or erroneous collection
action  was caused by board error.
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the taxpayer responded to all contacts by the board and
provided the board with any requested information or documentation
sufficient to establish the taxpayer's position. This provision may
be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to 
withhold.   withhold, erroneous processing action, or
erroneous collection action.   This provision may be waived
by the board for reasonable cause.  Within 30 days from the date
the claim is received, the board shall respond to the claim. If the
board denies the claim, the taxpayer shall be notified in writing of
the reason or reasons for the denial of the claim.
  SEC. 4.  Section 32474 of the Revenue and Taxation Code is amended
to read:
   32474.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to  withhold  
withhold, erroneous processing action, or erroneous collection action
 by the board. Bank and third-party charges include a financial
institution's or third party's customary charge for complying with
the levy or notice to withhold instructions and reasonable charges
for overdrafts that are a direct consequence of the erroneous levy or
notice to  withhold.   withhold, erroneous
processing action, or erroneous collection action.  The charges
are those paid by the taxpayer and not waived for reimbursement by
the financial institution or third party. Each claimant applying for
reimbursement shall file a claim with the board that shall be in a
form as may be prescribed by the board. In order for the board to
grant a claim, the board shall determine that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to  withhold 
 withhold, erroneous processing action, or erroneous collection
action  was caused by board error.
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the taxpayer responded to all contacts by the board and
provided the board with any requested information or documentation
sufficient to establish the taxpayer's position. This provision may
be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to 
withhold.   withhold, erroneous processing action, or
erroneous collection action.   This provision may be waived
by the board for reasonable cause.  Within 30 days from the date
the claim is received, the board shall respond to the claim. If the
board denies the claim, the taxpayer shall be notified in writing of
the reason or reasons for the denial of the claim.
  SEC. 5.  Section 40214 of the Revenue and Taxation Code is amended
to read:
   40214.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to  withhold  
withhold, erroneous processing action, or erroneous collection action
 by the board. Bank and third-party charges include a financial
institution's or third party's customary charge for complying with
the levy or notice to withhold instructions and reasonable charges
for overdrafts that are a direct consequence of the erroneous levy or
notice to  withhold.   withhold, erroneous
processing action, or erroneous collection action.  The charges
are those paid by the taxpayer and not waived for reimbursement by
the financial institution or third party. Each claimant applying for
reimbursement shall file a claim with the board that shall be in a
form as may be prescribed by the board. In order for the board to
grant a claim, the board shall determine that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to  withhold 
 withhold, erroneous processing action, or erroneous collection
action  was caused by board error.
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the taxpayer responded to all contacts by the board and
provided the board with any requested information or documentation
sufficient to establish the taxpayer's position. This provision may
be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to 
withhold.   withhold, erroneous processing action, or
erroneous collection action.   This provision may be waived
by the board for reasonable cause.  Within 30 days from the date
the claim is received, the board shall respond to the claim. If the
board denies the claim, the taxpayer shall be notified in writing of
the reason or reasons for the denial of the claim.
  SEC. 6.  Section 41174 of the Revenue and Taxation Code is amended
to read:
   41174.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to  withhold  
withhold, erroneous processing action, or erroneous collection action
 by the board. Bank and third-party charges include a financial
institution's or third party's customary charge for complying with
the levy or notice to withhold instructions and reasonable charges
for overdrafts that are a direct consequence of the erroneous levy or
notice to  withhold.   withhold, erroneous
processing action, or erroneous collection action.  The charges
are those paid by the taxpayer and not waived for reimbursement by
the financial institution or third party. Each claimant applying for
reimbursement shall file a claim with the board that shall be in a
form as may be prescribed by the board. In order for the board to
grant a claim, the board shall determine that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to  withhold 
 withhold, erroneous processing action, or erroneous collection
action  was caused by board error.
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the taxpayer responded to all contacts by the board and
provided the board with any requested information or documentation
sufficient to establish the taxpayer's position. This provision may
be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to 
withhold.   withhold, erroneous processing action, or
erroneous collection action.   This provision may be waived
by the board for reasonable cause.  Within 30 days from the date
the claim is received, the board shall respond to the claim. If the
board denies the claim, the taxpayer shall be notified in writing of
the reason or reasons for the denial of the claim.
  SEC. 7.  Section 43525 of the Revenue and Taxation Code is amended
to read:
   43525.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to  withhold  
withhold, erroneous processing action, or erroneous collection action
 by the board. Bank and third-party charges include a financial
institution's or third party's customary charge for complying with
the levy or notice to withhold instructions and reasonable charges
for overdrafts that are a direct consequence of the erroneous levy or
notice to  withhold.   withhold, erroneous
processing action, or erroneous collection action.  The charges
are those paid by the taxpayer and not waived for reimbursement by
the financial institution or third party. Each claimant applying for
reimbursement shall file a claim with the board that shall be in a
form as may be prescribed by the board. In order for the board to
grant a claim, the board shall determine that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to  withhold 
 withhold, erroneous processing action, or erroneous collection
action  was caused by board error.
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the taxpayer responded to all contacts by the board and
provided the board with any requested information or documentation
sufficient to establish the taxpayer's position. This provision may
be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to 
withhold.   withhold, erroneous processing action, or
erroneous collection action.   This provision may be waived
by the board for reasonable cause.  Within 30 days from the date
the claim is received, the board shall respond to the claim. If the
board denies the claim, the taxpayer shall be notified in writing of
the reason or reasons for the denial of the claim.
  SEC. 8.  Section 45870 of the Revenue and Taxation Code is amended
to read:
   45870.  (a) A feepayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to  withhold  
withhold, erroneous processing action, or erroneous collection action
 by the board. Bank and third-party charges include a financial
institution's or third party's customary charge for complying with
the levy or notice to withhold instructions and reasonable charges
for overdrafts that are a direct consequence of the erroneous levy or
notice to  withhold.   withhold, erroneous
processing action, or erroneous collection action.  The charges
are those paid by the feepayer and not waived for reimbursement by
the financial institution or third party. Each claimant applying for
reimbursement shall file a claim with the board that shall be in a
form as may be prescribed by the board. In order for the board to
grant a claim, the board shall determine that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to  withhold 
 withhold, erroneous processing action, or erroneous collection
action  was caused by board error.
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the feepayer responded to all contacts by the board and
provided the board with any requested information or documentation
sufficient to establish the feepayer's position. This provision may
be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to 
withhold.   withhold, erroneous processing action, or
erroneous collection action.   This provision may be waived
by the board for reasonable cause.  Within 30 days from the date
the claim is received, the board shall respond to the claim. If the
board denies the claim, the feepayer shall be notified in writing of
the reason or reasons for the denial of the claim.
  SEC. 9.  Section 46625 of the Revenue and Taxation Code is amended
to read:
   46625.  (a) A feepayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees that are incurred by the feepayer as the direct
result of an erroneous levy or notice to  withhold 
 withhold, erroneous processing action, or erroneous collection
action  by the board. Bank and third-party charges include a
financial institution's or third party's customary charge for
complying with either a levy or instructions in a notice to withhold,
and reasonable charges for overdrafts that are a direct consequence
of the erroneous levy or notice to  withhold.  
withhold, erroneous processing action, or erroneous collection
action.  Bank charges include only those charges that are paid
by the feepayer and not waived for reimbursement by the financial
institution or third party. Each claimant applying for reimbursement
pursuant to this section shall file a claim with the board that shall
be in the form as may be prescribed by the board. The board shall
not grant a claim unless it determines that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to  withhold 
 withhold, erroneous processing action, or erroneous collection
action  resulted from board error.
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the feepayer responded to all contacts by the board and
provided the board with any requested information or documentation
that was sufficient to establish the feepayer's position. The
requirement of this paragraph may be waived by the board for
reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to 
withhold that is asserted to be erroneous.   withhold,
erroneous processing action, or erroneous collection action. 
 This provision may be waived by the board for reasonable cause.
 The board shall respond to a claim filed pursuant to this
section within 30 days of receipt. If the board denies a claim, the
taxpayer shall be notified in writing of the reason or reasons for
denial.
  SEC. 10.  Section 50156.14 of the Revenue and Taxation Code is
amended to read:
   50156.14.  (a) A feepayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to  withhold  
withhold, erroneous processing action, or erroneous collection action
 by the board. Bank and third-party charges include a financial
institution's or third party's customary charge for complying with
the levy or notice to withhold instructions and reasonable charges
for overdrafts that are a direct consequence of the erroneous levy or
notice to  withhold.  withhold, erroneous
processing action, or erroneous collection action.  The charges
are those paid to the feepayer and not waived for reimbursement by
the financial institution or third party. Each claimant applying for
reimbursement shall file a claim with the board that shall be in a
form as may be prescribed by the board. In order for the board to
grant a claim, the board shall determine that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to  withhold 
 withhold, erroneous processing action, or erroneous collection
action  was caused by board error.
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the feepayer responded to all contacts by the board and
provided the board with any requested information or documentation
sufficient to establish the feepayer's position. This provision may
be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to 
withhold.   withhold, erroneous processing action, or
erroneous collection action.   This provision may be waived
by the board for reasonable cause.  Within 30 days from the date
the claim is received, the board shall respond to the claim. If the
board denies the claim, the feepayer shall be notified in writing of
the reason or reasons for the denial of the claim.
  SEC. 11.  Section 55335 of the Revenue and Taxation Code is amended
to read:
   55335.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to  withhold  
withhold, erroneous processing action, or erroneous collection action
 by the board. Bank and third-party charges include a financial
institution's or third party's customary charge for complying with
the levy or notice to withhold instructions and reasonable charges
for overdrafts that are a direct consequence of the erroneous levy or
notice to  withhold.   withhold, erroneous
processing action, or erroneous collection action.  The charges
are those paid by the taxpayer and not waived for reimbursement by
the financial institution or third party. Each claimant applying for
reimbursement shall file a claim with the board that shall be in a
form as may be prescribed by the board. In order for the board to
grant a claim, the board shall determine that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to  withhold 
 withhold, erroneous processing action, or erroneous collection
action  was caused by board error.
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the taxpayer responded to all contacts by the board and
provided the board with any requested information or documentation
sufficient to establish the taxpayer's position. This provision may
be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to 
withhold.   withhold, erroneous processing action, or
erroneous collection action.   This provision may be waived
by the board for reasonable cause.  Within 30 days from the date
the claim is received, the board shall respond to the claim. If the
board denies the claim, the taxpayer shall be notified in writing of
the reason or reasons for the denial of the claim.
  SEC. 12.  Section 60633.1 of the Revenue and Taxation Code is
amended to read:
   60633.1.  (a) A taxpayer may file a claim with the board for
reimbursement of bank charges and any other reasonable third-party
check charge fees incurred by the taxpayer as the direct result of an
erroneous levy or notice to  withhold  
withhold, erroneous processing action, or erroneous collection action
 by the board. Bank and third-party charges include a financial
institution's or third party's customary charge for complying with
the levy or notice to withhold instructions and reasonable charges
for overdrafts that are a direct consequence of the erroneous levy or
notice to  withhold.   withhold, erroneous
processing action, or erroneous collection action.  The charges
are those paid by the taxpayer and not waived for reimbursement by
the financial institution or third party. Each claimant applying for
reimbursement shall file a claim with the board that shall be in a
form as may be prescribed by the board. In order for the board to
grant a claim, the board shall determine that both of the following
conditions have been satisfied:
   (1) The erroneous levy or notice to  withhold 
 withhold, erroneous processing action, or erroneous collection
action  was caused by board error.
   (2) Prior to the  erroneous  levy or notice to withhold,
 erroneous processing action, or erroneous collection action,
 the taxpayer responded to all contacts by the board and
provided the board with any requested information or documentation
sufficient to establish the taxpayer's position. This provision may
be waived by the board for reasonable cause.
   (b) Claims pursuant to this section shall be filed within 90 days
from the date of the  erroneous  levy or notice to 
withhold.   withhold, erroneous processing action, or
erroneous collection action.   This provision may be waived
by the board for reasonable cause.  Within 30 days from the date
the claim is received, the board shall respond to the claim. If the
board denies the claim, the taxpayer shall be notified in writing of
the reason or reasons for the denial of the claim.