BILL NUMBER: SB 1159 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 7, 2014
INTRODUCED BY Senator Lara
FEBRUARY 20, 2014
An act to amend Section 494 30 of
the Business and Professions Code, and to amend Section 19528
of the Revenue and Taxation Code, relating to professions and
vocations.
LEGISLATIVE COUNSEL'S DIGEST
SB 1159, as amended, Lara. Professions and vocations: license
suspension or restriction. applicants:
federal tax identification number.
Existing law provides for the licensure and regulation of various
professions and vocations by boards within the Department of Consumer
Affairs, among other entities licensing
bodies . Existing law authorizes a board or an
administrative law judge to, upon petition, issue an interim order
suspending a licensee or imposing license restrictions if the
petition demonstrates that the licensee has engaged in specified
violations of law or has been convicted of a crime related to the
licensed activity and permitting the licensee to continue to practice
would endanger the public requires those licensing
bodies to require a licensee, at the time of issuance of the license,
to provide its federal employer identification number, if the
licensee is a partnership, or his or her social security number for
all other licensees. Existing law requires those licensing bodies to
report to the Franchise Tax Board any licensee who fails to provide
the federal employer identification number or social security number,
and subjects the licensee to a penalty for failing to provide the
information after notification, as specified .
This bill would make technical, nonsubstantive changes to
that provision require those licensing bodies to
require an applicant other than a partnership to provide either a
federal tax identification number or social security number,
if one has been issued to the applicant, and would require the
licensing bodies to report to the Franchise Tax Board, and subject a
licensee to a penalty, for failure to provide that information, as
described above . The bill would make other conforming
changes.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 30 of the Business
and Professions Code is amended to read:
30. (a) Notwithstanding any other law, any board, as defined in
Section 22, and the State Bar and the Bureau of Real Estate shall at
the time of issuance of the an initial or
renewal license require that the licensee
applicant provide its federal employer identification
number, if the licensee applicant is a
partnership, or his or her the applicant's
federal taxpayer identification number or social security
number , if one has been issued, for all others
other applicants .
(b) Any licensee applicant failing
to provide the federal employer identification
number number, or the federal taxpayer
identification number or social security number , if one
has been issued to the individual, shall be reported by the
licensing board to the Franchise Tax Board and, if failing
Board. If the applicant fails to provide
that information after notification pursuant to paragraph (1)
of subdivision (b) of Section 19528 of the Revenue and Taxation Code,
the applicant shall be subject to the penalty provided in
paragraph (2) of subdivision (b) of Section 19528 of the Revenue and
Taxation Code.
(c) In addition to the penalty specified in subdivision (b), a
licensing board may shall not process
any an application for an
original initial license unless the applicant
or licensee provides its federal employer
identification number , or federal taxpayer
identification number or social security number , if one
has been issued to the individual, where requested on the
application.
(d) A licensing board shall, upon request of the Franchise Tax
Board, furnish to the Franchise Tax Board the following information
with respect to every licensee:
(1) Name.
(2) Address or addresses of record.
(3) Federal employer identification number if the entity
licensee is a partnership , or
the licensee's federal taxpayer identification number or social
security number , if one has been issued to the individual,
for all others other licensees .
(4) Type of license.
(5) Effective date of license or a renewal.
(6) Expiration date of license.
(7) Whether license is active or inactive, if known.
(8) Whether license is new or a renewal.
(e) For the purposes of this section:
(1) "Licensee" means any a person or
entity, other than a corporation, authorized by a license,
certificate, registration, or other means to engage in a business or
profession regulated by this code or referred to in Section 1000 or
3600.
(2) "License" includes a certificate, registration, or any other
authorization needed to engage in a business or profession regulated
by this code or referred to in Section 1000 or 3600.
(3) "Licensing board" means any board, as defined in Section 22,
the State Bar, and the Bureau of Real Estate.
(f) The reports required under this section shall be filed on
magnetic media or in other machine-readable form, according to
standards furnished by the Franchise Tax Board.
(g) Licensing boards shall provide to the Franchise Tax Board the
information required by this section at a time that the Franchise Tax
Board may require.
(h) Notwithstanding Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code , the social
security number and a federal employer
identification number , federal taxpayer identification
number, or social security number furnished pursuant to
this section shall not be deemed to be a public record and shall not
be open to the public for inspection.
(i) Any deputy, agent, clerk, officer, or employee of any
licensing board described in subdivision (a), or any former officer
or employee or other individual who in the course of his or her
employment or duty has or has had access to the information required
to be furnished under this section, may not disclose or make known in
any manner that information, except as provided in this section to
the Franchise Tax Board or as provided in subdivision (k).
(j) It is the intent of the Legislature in enacting this section
to utilize the social security account number or
federal employer identification number , federal taxpayer
identification number, or social security number for the
purpose of establishing the identification of persons affected by
state tax laws and for purposes of compliance with Section 17520 of
the Family Code and, to that end, the information furnished pursuant
to this section shall be used exclusively for those purposes.
(k) If the board utilizes a national examination to issue a
license, and if a reciprocity agreement or comity exists between the
State of California and the state requesting release of the
federal taxpayer identification number or social security
number, any deputy, agent, clerk, officer, or employee of any
licensing board described in subdivision (a) may release a fe
deral taxpayer identification number or social
security number to an examination or licensing entity, only for the
purpose of verification of licensure or examination status.
( l ) For the purposes of enforcement of Section 17520
of the Family Code, and notwithstanding any other provision
of law, any board, as defined in Section 22, and the State
Bar and the Bureau of Real Estate shall at the time of issuance of
the license require that each licensee provide the federal
taxpayer identification number or social security number ,
if any has been issued to the licensee, of each individual
listed on the license and any person who qualifies the license. For
the purposes of this subdivision, "licensee" means any entity that is
issued a license by any board, as defined in Section 22, the State
Bar, the Bureau of Real Estate, and the Department of Motor Vehicles.
SEC. 2. Section 19528 of the Revenue
and Taxation Code is amended to read:
19528. (a) Notwithstanding any other provision of
law, the Franchise Tax Board may require any board, as
defined in Section 22 of the Business and Professions Code, and the
State Bar, the Bureau of Real Estate, and the Insurance Commissioner
(hereinafter referred to as licensing board) to provide to the
Franchise Tax Board the following information with respect to every
licensee:
(1) Name.
(2) Address or addresses of record.
(3) Federal employer identification number (if the entity
is a partnership) or social security number (for all others)
, if the licensee is a partnership, or the
licensee's federal taxpayer identification number or social security
number, if any has been issued, of all other licensees .
(4) Type of license.
(5) Effective date of license or renewal.
(6) Expiration date of license.
(7) Whether license is active or inactive, if known.
(8) Whether license is new or renewal.
(b) The Franchise Tax Board may do the following:
(1) Send a notice to any licensee failing to provide the
federal employer identification number , federal taxpayer
identification number, or social security number as required by
subdivision (a) of Section 30 of the Business and Professions Code
and subdivision (a) of Section 1666.5 of the Insurance Code,
describing the information that was missing, the penalty associated
with not providing it, and that failure to provide the information
within 30 days will result in the assessment of the penalty.
(2) After 30 days following the issuance of the notice described
in paragraph (1), assess a one hundred dollar ($100) penalty, due and
payable upon notice and demand, for any licensee failing to provide
either its federal employer identification number (if the licensee is
a partnership) or his or her social security number (for all others)
as required in Section 30 of the Business and Professions Code and
Section 1666.5 of the Insurance Code.
(c) Notwithstanding Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code, the information
furnished to the Franchise Tax Board pursuant to Section 30 of the
Business and Professions Code or Section 1666.5 of the Insurance Code
shall not be deemed to be a public record and shall not be open to
the public for inspection.
SECTION 1. Section 494 of the Business and
Professions Code is amended to read:
494. (a) A board or an administrative law judge sitting alone, as
provided in subdivision (h), may, upon petition, issue an interim
order suspending a licensee or imposing license restrictions,
including, but not limited to, mandatory biological fluid testing,
supervision, or remedial training. The petition shall include
affidavits that demonstrate, to the satisfaction of the board, both
of the following:
(1) The licensee has engaged in acts or omissions constituting a
violation of this code or has been convicted of a crime substantially
related to the licensed activity.
(2) Permitting the licensee to continue to engage in the licensed
activity, or permitting the licensee to continue in the licensed
activity without restrictions, would endanger the public health,
safety, or welfare.
(b) An interim order provided for in this section shall not be
issued without notice to the licensee unless it appears from the
petition and supporting documents that serious injury would result to
the public before the matter could be heard on notice.
(c) Except as provided in subdivision (b), the licensee shall be
given at least 15 days' notice of the hearing on the petition for an
interim order. The notice shall include documents submitted to the
board in support of the petition. If the order was initially issued
without notice as provided in subdivision (b), the licensee shall be
entitled to a hearing on the petition within 20 days of the issuance
of the interim order without notice. The licensee shall be given
notice of the hearing within two days after issuance of the initial
interim order, and shall receive all documents in support of the
petition. The failure of the board to provide a hearing within 20
days following the issuance of the interim order without notice,
unless the licensee waives his or her right to the hearing, shall
result in the dissolution of the interim order by operation of law.
(d) At the hearing on the petition for an interim order, the
licensee may do all of the following:
(1) Be represented by counsel.
(2) Have a record made of the proceedings, copies of which shall
be available to the licensee upon payment of costs computed in
accordance with the provisions for transcript costs for judicial
review contained in Section 11523 of the Government Code.
(3) Present affidavits and other documentary evidence.
(4) Present oral argument.
(e) The board, or an administrative law judge sitting alone as
provided in subdivision (h), shall issue a decision on the petition
for interim order within five business days following submission of
the matter. The standard of proof required to obtain an interim order
pursuant to this section shall be a preponderance of the evidence
standard. If the interim order was previously issued without notice,
the board shall determine whether the order shall remain in effect,
be dissolved, or modified.
(f) The board shall file an accusation within 15 days of the
issuance of an interim order. In the case of an interim order issued
without notice, the time shall run from the date of the order issued
after the noticed hearing. If the licensee files a Notice of Defense,
the hearing shall be held within 30 days of the agency's receipt of
the Notice of Defense. A decision shall be rendered on the accusation
no later than 30 days after submission of the matter. Failure to
comply with any of the requirements in this subdivision shall
dissolve the interim order by operation of law.
(g) Interim orders shall be subject to judicial review pursuant to
Section 1094.5 of the Code of Civil Procedure and shall be heard
only in the superior court in and for the Counties of Sacramento, San
Francisco, Los Angeles, or San Diego. The review of an interim order
shall be limited to a determination of whether the board abused its
discretion in the issuance of the interim order. Abuse of discretion
is established if the respondent board has not proceeded in the
manner required by law, or if the court determines that the interim
order is not supported by substantial evidence in light of the whole
record.
(h) The board may, in its sole discretion, delegate the hearing on
a petition for an interim order to an administrative law judge in
the Office of Administrative Hearings. If the board hears the noticed
petition itself, an administrative law judge shall preside at the
hearing, rule on the admission and exclusion of evidence, and advise
the board on matters of law. The board shall exercise all other
powers relating to the conduct of the hearing but may delegate any or
all of them to the administrative law judge. When the petition has
been delegated to an administrative law judge, he or she shall sit
alone and exercise all of the powers of the board relating to the
conduct of the hearing. A decision issued by an administrative law
judge sitting alone shall be final when it is filed with the board.
If the administrative law judge issues an interim order without
notice, he or she shall preside at the noticed hearing, unless
unavailable, in which case another administrative law judge may hear
the matter. The decision of the administrative law judge sitting
alone on the petition for an interim order is final, subject only to
judicial review in accordance with subdivision (g).
(i) Failure to comply with an interim order issued pursuant to
subdivision (a) or (b) shall constitute a separate cause for
disciplinary action against a licensee, and may be heard at, and as a
part of, the noticed hearing provided for in subdivision (f).
Allegations of noncompliance with the interim order may be filed at
any time prior to the rendering of a decision on the accusation.
Violation of the interim order is established upon proof that the
licensee was on notice of the interim order and its terms, and that
the order was in effect at the time of the violation. The finding of
a violation of an interim order made at the hearing on the accusation
shall be reviewed as a part of any review of a final decision of the
agency.
If the interim order issued by the agency provides for anything
less than a complete suspension of the licensee from his or her
business or profession, and the licensee violates the interim order
prior to the hearing on the accusation provided for in subdivision
(f), the agency may, upon notice to the licensee and proof of
violation, modify or expand the interim order.
(j) A plea or verdict of guilty or a conviction after a plea of
nolo contendere is deemed to be a conviction within the meaning of
this section. A certified record of the conviction shall be
conclusive evidence of the fact that the conviction occurred. A board
may take action under this section notwithstanding the fact that an
appeal of the conviction may be taken.
(k) The interim orders provided for by this section shall be in
addition to, and not a limitation on, the authority to seek
injunctive relief provided in any other provision of law.
( l ) In the case of a board, a petition for an
interim order may be filed by the executive officer. In the case of
a bureau or program, a petition may be filed by the chief or program
administrator, as the case may be.
(m) "Board," as used in this section, shall include any agency
described in Section 22, and any allied health agency within the
jurisdiction of the Medical Board of California. Board shall also
include the Osteopathic Medical Board of California and the State
Board of Chiropractic Examiners. The provisions of this section shall
not apply to the Medical Board of California, the Board of Podiatric
Medicine, or the State Athletic Commission.