BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 1159 () - Professions and Vocations: License Applications:
Federal Tax Identification Number
Amended: April 7, 2014 Policy Vote: BP&ED 8-1
Urgency: No Mandate: Yes
Hearing Date: May 5, 2014 Consultant: Robert Ingenito
This bill does not meet the criteria for referral to the
Suspense File.
Bill Summary: SB 1159 would authorize a board, as defined, the
State Bar and the Bureau of Real Estate to accept an
individual's application containing a federal taxpayer
identification number (TIN) for an initial or renewal license in
lieu of a social security number.
Fiscal Impact:
The Department of Consumer Affairs (DCA) indicates that
it would incur one-time costs of up to $130,000 (special
funds) to update forms, publications, and information
technology.
The bill could result in potential costs to DCA's boards
and bureaus to ensure that new applicants using TINs are
complying with child support judgments. The extent of these
costs is unknown.
The bill would result in an increase in individuals
applying for licenses at the various boards and bureaus
within DCA, leading to increased licensing revenues. The
amount of the increase is unknown.
Background: Current law requires that individuals applying for a
license at one of DCA's boards and bureaus provide their social
security number (or a federal employer identification number if
the licensee is a partnership). Any licensee who does not
provide this information shall be reported to the Franchise Tax
Board (FTB) and is subject to a penalty. In addition, a
licensing board may elect not to process original license
applications from applicants who do not provide their federal
SB 1159 (Lara)
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employer identification number or social security number.
The TIN is a tax processing number only available for certain
nonresident and resident aliens, their spouses, and dependents
who cannot get a social security number. It is a 9-digit
number, beginning with the number "9" and is formatted like a
social security number. An individual must apply to the IRS to
obtain a TIN. The form requires documentation substantiating
foreign/alien status and true identity for the individual.
Proposed Law: This bill would do the following:
Provides that each board under DCA, as well as the State
Bar and Bureau of Real Estate shall at the time of issuance
of an initial or renewal license require that the applicant
provide its federal employer identification number, if the
applicant is a partnership, or the applicant's federal
taxpayer identification number or social security number,
if one has been issued, for all other applicants.
Requires that any applicant failing to provide the
federal employer identification number or the federal
taxpayer identification number or social security number,
if one has been issued to the individual, to be reported by
the licensing board to the FTB and provides if the
applicant fails to provide that information they shall be
subject to a penalty.
Provides that in addition to a penalty, a licensing
board may elect to not process any application for an
original license if the applicant or licensee fails to
provide 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.
Requires a licensing board, upon request FTB, to furnish
specified information including the federal employer
identification number if the entity is a partnership, or
the licensee's TIN, if one has been issued to the
individual, for all other licensees.
Staff Comments: This bill is similar to AB 1822 (Berryhill, Ch.
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317, Statutes of 2012), which authorized applicants for an
architecture license to submit an individual TIN or another
identification number, as determined by the California
Architects Board, in place of a social security number where the
applicant is not eligible for a social security number and is
not out of compliance with a child support judgment or order,
among other things.