BILL NUMBER: AB 756	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Chang

                        FEBRUARY 25, 2015

    An act relating to state government.   An
act to add Section 42 to the Revenue and Taxation Code, relating to
small businesses. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 756, as amended, Chang. Small businesses:  state
agencies:  civil fines and  penalties  
penalties. penalties: waiver  . 
   Existing law imposes various taxes and fees that are administered
by the State Board of Equalization, the Franchise Tax Board, and the
Employment Development Department. Existing law authorizes these
state agencies to impose fines and penalties for violations of those
laws imposing the tax or fee. Under existing law, if the Director of
Employment Development finds that any employer, in submitting facts
concerning the termination of a specified claimant's employment
concerning unemployment compensation, among other things, willfully
makes a false statement or representation, the director is required
to assess a penalty against the employer of that claimant in a
specified amount.  
   This bill would require the State Board of Equalization, the
Franchise Tax Board, and the Employment Development Department to
waive any fine or penalty for violations of the laws that impose a
tax or fee, assessed against a small business, as defined, within its
first 120 days of operation if certain requirements are met. 

   Generally, existing law authorizes state agencies to assess
administrative fines or recover civil penalties in enforcement
actions against business establishments for violating various state
laws. Existing law prohibits a state agency from imposing any civil
fine on a small business, as defined, for a violation of an
administrative rule or regulation or a noncriminal statute as a
result of a Year 2000 Problem, as defined, suffered by the small
business if certain requirements are met.  
   This bill would declare the intent of the Legislature to enact
legislation that would authorize certain state agencies to waive
penalties for small businesses within their first 120 days of
operation if certain requirements are met. 
   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 42 is added to the  
Revenue and Taxation Code   , to read:  
   42.  (a) The board, Franchise Tax Board, and the Employment
Development Department, with respect to the laws administered by them
that impose a tax or fee, shall waive any fine or penalty for
violations of those laws assessed against a small business within its
first 120 days of operation if the violation does not create a
threat to health or safety, does not violate any provision of the
Labor Code, and was not done intentionally.
   (b) For the purposes of this section, a "small business" is a
business with 100 or fewer employees.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation that would authorize certain state agencies to
waive penalties for small businesses within their first 120 days of
operation if the violation does not create a threat to health or
safety, does not violate any provision of the Labor Code, and was not
done intentionally.