BILL ANALYSIS Ó
SB 1159
Page 1
Date of Hearing: June 24, 2014
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Susan A. Bonilla, Chair
SB 1159 (Lara) - As Amended: June 18, 2014
SENATE VOTE : 32-0
SUBJECT : Professions and vocations: license applicants:
individual tax identification number.
SUMMARY : Authorizes a board, as defined, the State Bar and the
Bureau of Real Estate to accept an application containing an
individual's taxpayer identification number (ITIN) in lieu of a
social security number (SSN) for an initial or renewal license.
Specifically, this bill :
1)Authorizes an applicant to provide his or her ITIN instead of
his or her SSN for purposes of existing law that requires each
board under the Department of Consumer Affairs (DCA), the
State Bar, and Bureau of Real Estate, at the time of issuance
of an initial or renewal license, to require that an
individual applicant to provide his or her SSN.
2)Requires a licensing board to report a licensee who fails to
provide his or her ITIN to be reported by the licensing board
to the Franchise Tax Board (FTB), and makes a licensee who
fails to provide that information after notification to be
subject to a penalty, as specified.
3)Authorizes, in addition to that penalty, a licensing board to
not process an application for an initial license unless the
applicant provides his or her ITIN, where requested on the
application.
4)Requires a licensing board, upon request of the FTB, to
furnish to the FTB specified information, including the
licensee's ITIN.
5)Provides that an ITIN furnished pursuant to this bill is not
deemed a public record and shall not be open to the public for
inspection.
6)Provides that if the board uses a national examination to
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issue a license, and if a reciprocity agreement or comity
exists between the California and the state requesting release
of the ITIN, the licensing board may release the ITIN to an
examination or licensing entity, only for the purpose of
verification of licensure or examination status.
7)For purposes of enforcing child support payment provisions,
requires any board, the State Bar, and the Bureau of Real
Estate to require that each licensee provide the ITIN of each
individual licensed on the license and any person who
qualifies for the license.
8)Authorizes all boards, as specified, to collect an ITIN
instead of a SSN for purposes of existing law that requires
all boards, as specified, to collect SSNs from applicants for
the purposes of matching the names on a certified list,
provided by the Department of Child Support Services (DCSS),
of persons who are found to be out of compliance with a
judgment or order for support, as specified.
9)Authorizes the FTB to require any board, the State Bar, the
Bureau of Real Estate, and the Insurance Commissioner to
provide to the FTB the licensee's ITIN, and to send a notice
to any licensee failing to provide that number that describes
the information that was missing, the penalty associated with
not providing it, and that the failure to provide that
information within 30 days will result in the assessment of a
penalty of $100.
10)Declares Legislative intent and makes other conforming and
technical amendments.
EXISTING STATE LAW:
1)Requires each board under DCA, as well as the State Bar and
Bureau of Real Estate to, at the time of issuance of the
license, require that the licensee provide their federal
employer identification number, if the licensee is a
partnership, or SSN for all others. (Business and Professions
Code (BPC) Section 30 (a))
2)Requires that any licensee who does not provide the federal
identification number or SSN be reported by the licensing
board to the FTB and is subject to a penalty. (BPC 30 (b))
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3)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 SSN where requested on the
application. (BPC 30 (c))
4) Requires a licensing board, upon request of the FTB, to
furnish to the FTB specified information including the
federal employer identification number if the entity is a
partnership, or SSN, for all others. (BPC 30(d); Revenue and
Taxation Code (RTC) 19528)
5) Provides that it is the intent of the Legislature to utilize
the SSN or federal employer identification number for the
purpose of establishing the identification of persons
affected by state tax laws and for purposes of compliance
with current law, as specified and, to that end, the
information furnished pursuant to this section shall be used
exclusively for those purposes. (BPC 30 (j))
6) Provides that DCSS shall maintain a "certified list" that
provides names of persons who are found to be out of
compliance with a judgment or order for support in a case
being enforced under the Social Security Act. (Family Code
(FAM) Section 17520(a)(3))
7) Provides that DCSS shall provide the certified list to each
board that is responsible for the regulation of licenses, as
specified, and that all boards shall collect SSNs from all
applicants for the purposes of matching the names and of
responding to requests for this information made by DCSS.
(FAM 17520(d))
8) Requires that promptly after receiving the certified list
from DCSS, and prior to issuance or renewal of a license,
each board shall determine whether the applicant is on the
most recent certified list provided by DCSS. The board shall
have the authority to withhold issuance or renewal of the
license of any applicant on the list. (FAM 17520(e))
9) Authorizes the FTB to require any board, the State Bar, the
Bureau of Real Estate, and the Insurance Commissioner to
provide to the FTB specified information, including the
licensee's federal employer identification number or SSN; to
send a notice to any licensee failing to provide those
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numbers that describes the information that was missing; the
penalty associated with not providing it; that the failure to
provide that information within 30 days will result in the
assessment of a penalty of $100; and to assess a $100 penalty
for any licensee failing to provide its federal employer
identification number or his or her social security number.
(RTC 19528)
EXISTING FEDERAL LAW :
10)Authorizes states to affirmatively provide eligibility for
certain public benefits, such as professional licenses, to
certain categories of individuals not lawfully present in the
United States who would otherwise be prohibited from
receiving those benefits. (8 USC 1621)
FISCAL EFFECT : Unknown
COMMENTS :
1)Purpose of the bill . This bill allows applicants or
licensees to provide an ITIN in lieu of a SSN to a licensing
board. This bill resolves inconsistencies throughout the code
and provides additional identification options to applicants
and licensees, thereby increasing access to California
professional licenses. This bill is author-sponsored.
2)Author's statement . According to the author, "Many immigrants
come to the [US] as children and attend California's public
elementary and secondary schools, as well as public and
private colleges and universities. Despite the high cost of
higher education and limited resources, with hard work, a
strong spirit of determination, and the assistance of state
laws that provide access to nonresident tuition exemptions,
state financial aid, and graduate school admissions tests,
these students are now able to attend, participate in, and
graduate from California colleges and universities.
"Recently, the Legislature has begun to recognize the need to
address arbitrary restrictions on professional licenses with
the passage of SB 1822 (Bill Berryhill) in 2012 and AB 1024
(Gonzalez) in 2013. However, ambiguity in other sections of
state law, in particular [BPC] 30 pertaining to the issuance
of professional licenses has created barriers to access, and
created an artificial wall that deprives many Californians of
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their only effective means of economic mobility and
self-sufficiency.
"Authorizing the use of a social security number or ITIN, if one
has been issued, for the application of a professional license
would ensure the collection and reporting of information to
the [FTB] while clarifying inconsistent laws and removing
arbitrary barriers to professional licenses."
3)Individual Taxpayer Identification Numbers . An ITIN is a tax
processing identification number issued by the US Internal
Revenue Service (IRS) in the administration of tax laws. An
ITIN consists of nine digits, beginning with the number nine
(i.e. 9XX-XX-XXX). Since 1996, the IRS has issued ITINs to
taxpayers and their dependents that are not eligible to obtain
a SSN. The IRS issues ITINs because all wage earners,
regardless of their immigration status, are required to pay
federal taxes. ITINs allow people who are ineligible for a
SSN to comply with tax laws, and are issued regardless of
immigration status. Examples of individuals who need ITINs
include nonresident aliens, a US resident alien, and
dependents or spouses of US citizens or resident aliens, or of
nonresident alien visa holders. To obtain an ITIN, an
individual must complete an IRS form which requires
documentation substantiating an individual's foreign or alien
status and the true identity of the individual.
4)This bill does not affect FTB or DCSS's ability to track
licensees . The purpose of requiring SSN or federal employer
identification numbers is to identify persons with outstanding
tax liabilities or who are out of compliance with child
support orders. Existing law authorizes the suspension of a
delinquent taxpayer's occupational or professional license
once a delinquency is at least five months old, and specified
notices have been issued by the FTB. Existing law also
authorizes license denials and suspensions for failure to pay
court-ordered child support debt. According to both the FTB
and DCSS, this bill would not affect the ability of the FTB or
DCSS to identify persons with outstanding tax liabilities or
child support payments because both entities have the
capability to identify those persons using their ITIN.
5)Suggested technical amendment . This bill amends all relevant
provisions of that law to allow for substitution of the ITIN,
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and amends RTC 19528 to authorize the FTB to require the board
to provide the licensee's ITIN and to send notice that failure
to provide the ITIN will result in a $100 penalty. However,
this bill did not amend paragraph (2) of subdivision (b) of
RTC 19528 to also authorize FTB to assess the $100 penalty for
failing to provide an ITIN. As a result, the author may wish
to ensure all conforming changes are made.
6)Arguments in support . The California Immigrant Policy Center
writes in support, "Without access to a professional license,
many individuals will be limited in their ability to
participate in the workforce or start a business and thereby
limit their economic contributions to the State. It is
estimated that California's labor force includes 1.85 million
undocumented workers and that households headed by
undocumented workers contribute an estimated $2.7 billion in
state taxes. As such, we expect SB 1159 to make an impact on
the economic opportunity of otherwise eligible immigrants."
The National Association of Social Workers, California Chapter,
also writes in support, "It is in the best interest of our
state to support efforts to educate our workforce and enable
our residents, including immigrants to improve their economic
mobility and self-sufficiency, which will increase their
contributions back to the state."
7)Related legislation . AB 1024 (Gonzalez), Chapter 573,
Statutes of 2013, authorized the Supreme Court to admit to the
practice of law an applicant who is not lawfully present in
the United States, upon certification by the committee that
the applicant has fulfilled those requirements for admission,
as specified.
8)Prior legislation . SB 1822 (Bill Berryhill), Chapter 317,
Statutes of 2012, authorized submission of an individual tax
identification number or another identification number, as
determined by the 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, as specified.
AB 664 (Jones), Chapter 610, Statutes of 2005, authorized, in
specified circumstances, submission of a federal tax
identification number or another identification number, as
determined by the State Bar of California, in place of the
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applicant's social security number.
REGISTERED SUPPORT / OPPOSITION :
Support
American Civil Liberties Union of California
California Immigrant Policy Center
California Pan-Ethnic Health Network
Mexican American Legal Defense and Educational Fund (MALDEF)
National Association of Social Workers - California Chapter
Pre-Health Dreamers
United Farm Workers (UFW)
Opposition
None on file.
Analysis Prepared by : Eunie Linden / B.,P. & C.P. / (916)
319-3301