BILL NUMBER: SB 256 CHAPTERED
BILL TEXT
CHAPTER 871
FILED WITH SECRETARY OF STATE OCTOBER 13, 1995
APPROVED BY GOVERNOR OCTOBER 13, 1995
PASSED THE SENATE SEPTEMBER 15, 1995
PASSED THE ASSEMBLY SEPTEMBER 14, 1995
AMENDED IN ASSEMBLY AUGUST 28, 1995
AMENDED IN ASSEMBLY AUGUST 21, 1995
AMENDED IN ASSEMBLY JUNE 19, 1995
AMENDED IN SENATE MAY 30, 1995
AMENDED IN SENATE MARCH 23, 1995
INTRODUCED BY Senator Johnston
(Principal coauthor: Senator Leslie)
(Principal coauthors: Assembly Members Alpert and Kevin Murray)
(Coauthors: Senators Beverly, Dills, Hughes, Mello, Monteith,
Thompson, and Watson)
(Coauthor: Assembly Member Willard Murray)
FEBRUARY 8, 1995
An act to amend Sections 15364.51, 15364.52, 15364.53, and
15364.54 of, to add Chapter 2.2 (commencing with Section 15372.60) to
Part 6.7 of Division 3 of Title 2 of, the Government Code, and to
add Section 19559 to the Revenue and Taxation Code, relating to state
tourism.
LEGISLATIVE COUNSEL'S DIGEST
SB 256, Johnston. California Tourism Marketing Act.
(1) Existing law establishes a California Tourism Commission,
located within the Department of Commerce, subsequently the Trade and
Commerce Agency. The commission is required to adopt and annually
update a tourism marketing plan for the State of California.
Existing law requires the Director of the Office of Tourism, in
its report to the Governor, the Legislature, and the California
Tourism Commission, to among other things, detail the tourism
marketing plan that has been adopted for the upcoming fiscal year.
This bill would enact the California Tourism Marketing Act that
would, among other things, provide procedures for the establishment
of an industry-approved assessment and the creation of a nonprofit
corporation named the California Tourism Marketing Commission
utilizing a referenda process. This bill would provide that the
existing California Tourism Commission shall be inoperative while the
California Tourism Marketing Commission established by this act is
operative, but shall resume operation upon the termination of the
California Tourism Marketing Commission. This bill would provide
that if the California Tourism Commission is inoperative, the
Secretary of Trade and Commerce shall detail the marketing plan.
This bill would provide that certain functions performed by the
Office of Tourism are also to be performed by the California Tourism
Marketing Commission.
This bill would require the Governor to appoint a 25-member
Tourism Selection Committee, as specified, to issue a report listing
specified data related to the tourism industry.
This bill would require the Office of Tourism to establish, upon
approval of an initial tourism industry referendum, the California
Tourism Marketing Commission which would be under the direction of a
board of commissioners and administered by an executive director who
would be an exempt state employee. This bill would authorize the
Office of Tourism to contract with the commission to undertake
marketing activities utilizing state funds. This bill would
prescribe certain duties of the commission, including preparing or
causing to be prepared an annual marketing plan and providing
assessed business with certain information. This bill would declare
the intent of the Legislature with respect to the funding of the
commission.
This bill would prescribe the duties of the Secretary of Trade and
Commerce relative to tourism, including collecting and depositing
assessments, exercising police powers, exercising veto power over the
commission in specified circumstances, and calling referenda. This
bill would prescribe a procedure for the collection of unpaid
assessments and would prescribe specified penalties for the failure
of businesses to pay assessments. This bill would make it a
misdemeanor for a person to provide false information concerning an
assessment. The creation of this new crime would impose a
state-mandated local program.
(2) Existing law authorizes the Franchise Tax Board to provide
specified types of tax information to certain public entities,
subject to specified conditions regarding confidentiality, including
misdemeanor penalties for disclosure, and review of the use of the
information.
This bill would, additionally, authorize the Franchise Tax Board
to provide the Secretary of Trade and Commerce, acting within the
capacity authorized in the California Tourism Marketing Act, with
information relating to specified types of income or franchise tax
returns or other records, subject to these conditions. By creating a
new crime, this bill would impose a state-mandated local program.
(3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 15364.51 of the Government Code is amended to
read:
15364.51. It is the intention of the Legislature in enacting this
part or amending this part to add Chapter 2.2 (commencing with
Section 15372.60) to do all of the following:
(a) Reaffirm a commitment to the fostering of the economic
activity inherent in tourism promotion as delineated as a mandate to
the agency and to the Office of Tourism.
(b) To provide for an effective means of promoting and marketing
the State of California as a destination for tourists on a worldwide
basis, to provide the private sector with a more effective means of
promoting tourism efforts and a forum for removing obstacles to
overall tourism growth in order for California to remain competitive
in the world tourism marketplace.
(c) Optimize the contribution of the tourism-related industries to
the state's economic prosperity and to expand employment
opportunities.
(d) Make the opportunity for, and benefits of, tourism in the
state accessible to its residents and visitors and ensure that
present and future generations are afforded adequate tourism
resources and attractions.
(e) Encourage the preservation and use of California historic and
scenic environments to enhance the state's appeal as a destination
for domestic and international tourism.
(f) Encourage California residents to take maximum advantage of
travel and tourism opportunities within the State of California by
enabling them to obtain accurate, timely, up-to-date travel and
tourism information benefiting both urban and rural travelers in
various regions of the state.
(g) Contribute to personal growth, health, education, and
intercultural appreciation of the geography, history, arts, and
ethnicity of the State of California.
(h) Encourage the free and welcome entry of individuals traveling
to the state in order to enhance international understanding and
goodwill, consistent with immigration laws, the laws protecting the
public health, and laws governing the importation of goods into the
United States and state law.
(i) Encourage investment in new tourism facilities and renovation
of older facilities.
(j) Assist in the collection, analysis, and timely dissemination
of data that accurately measure the economic and social impact of
tourism to, and within, the state in order to facilitate planning in
the public and private sectors.
(k) Harmonize, to the maximum extent possible, all state
activities in support of tourism and recreation with the needs of the
general public, local governments, and the private sector, and to
give leadership to all concerned with tourism in California.
SEC. 2. Section 15364.52 of the Government Code is amended to
read:
15364.52. (a) There is hereby created in state government a
California Tourism Commission, located within the Trade and Commerce
Agency, which shall consist of the Secretary of Trade and Commerce
who shall serve as the chairperson of the commission; the Director of
the Office of Tourism, who shall serve as vice chairperson of the
commission and nine other members appointed as follows:
(1) Five members shall be appointed by the Governor who are able
persons, professionally active in the tourism industry representing
diverse segments of that industry.
(2) One Member of the Senate shall be appointed by the Senate
Committee on Rules and one Member of the Assembly shall be appointed
by the Speaker of the Assembly. These members shall be ex officio,
nonvoting members of the commission.
(3) Two members, who are able persons professionally active in the
tourism industry representing diverse segments of that industry,
shall be appointed one each by the Senate Committee on Rules and the
Speaker of the Assembly.
(b) The Assistant Director of the Office of Tourism shall serve as
secretary to the commission, a nonvoting position, and shall keep
the minutes and records of all commission meetings and provide staff
and whatever supportive services necessary to the activities of the
commission.
(c) The commission shall meet quarterly and at other times and
places as the chairperson may designate for the purpose of
transacting the commission's business. Each commission member shall
serve without compensation but shall be reimbursed for traveling and
other expenses necessarily incurred in the performance of duties.
(d) The commission shall, in cooperation with the Office of
Tourism and the agency, adopt, and annually update, a tourism
marketing plan for the State of California that includes both
domestic and international tourism promotion. The plan shall, to the
extent practical and feasible, do all of the following:
(1) Serve as a guide for effectuating the California Tourism
Policy Act, within available resources.
(2) Include an assessment of the activities and accomplishments of
the Office of Tourism.
(3) Outline the intended program of tourism promotion and visitor
service activities for the oncoming year.
(4) Delineate the ways, means, and programs by which tourism shall
be promoted, including any cost-effective marketing methods and
techniques to be employed.
(5) Identify resources as are reasonably necessary, from all
sources both public and private, to accomplish these promotion and
marketing activities.
(6) Identify and articulate cooperative or shared cost programs,
or opportunities for these ventures, with private entities.
(7) Identify licensing opportunities, including licensing agents.
(8) Contain other information, data, or recommendations that may
be germane to the marketing efforts of California pursuant to the
intent of this chapter.
(e) The commission, in cooperation with the Office of Tourism, may
convene committees consisting of qualified professionals and experts
in various segments of the tourism industry that may be required to
aid in the preparation of, or revision of, the marketing plan, or
parts thereof, and as may from time to time be appropriate to further
the purposes of this chapter.
(f) The commission shall work to the maximum extent practicable
with those private associations, nonprofit corporations,
organizations, or other private entities whose purpose includes the
promotion of California tourism.
(g) Members of the California Tourism Commission and the staff of
the Office of Tourism, when traveling to foreign countries or
attending international travel trade shows, shall do so in
cooperation with the California State World Trade Commission to
preserve its ambassadorial function.
(h) The commission established by this chapter shall be
inoperative while the California Tourism Marketing Commission
established pursuant to Chapter 2.2 (commencing with Section
15372.60) is in existence. The commission established by this
chapter shall resume operation on the date the California Tourism
Marketing Commission established by Chapter 2.2 (commencing with
Section 15372.60) terminates.
SEC. 3. Section 15364.53 of the Government Code is amended to
read:
15364.53. In addition to those functions of the Office of Tourism
specified in Section 15334, the Office of Tourism and the California
Tourism Marketing Commission established pursuant to Chapter 2.2
(commencing with Section 15372.60):
(a) Shall take advantage of particular promotional opportunities
as may be presented.
(b) Shall facilitate travel and visitorship to, and within,
California to the maximum extent feasible.
(c) May identify and assist in the development of a user-directed,
computer-based, public-access information system serving the needs
of the traveling and tourist public in urban and rural areas in
California.
(d) Shall develop and publish research to determine sources and
characteristics of present and future visitors to California and
measure the effectiveness of marketing and service programs.
(e) Shall represent the state at domestic and international travel
trade shows that provide an opportunity to promote a significant
amount of travel to, and within, California.
(f) Shall cooperate with the federal government in the development
and the promotion of the United States as a destination for
international tourism.
(g) Shall implement the Tourism Marketing Plan.
SEC. 4. Section 15364.54 of the Government Code is amended to
read:
15364.54. The director shall report on or before March 1 of each
year to the Governor, the Legislature, and the California Tourism
Commission. Each report shall do all of the following:
(a) Detail the tourism marketing plan which has been adopted for
the upcoming fiscal year. If the California Tourism Commission
established pursuant to Section 15364.52 is inoperative, the
secretary shall detail the marketing plan described in Section
15372.75.
(b) Assess the overall benefits and effectiveness of the tourism
marketing and advertising program.
(c) Include documentation of the directly attributable benefits of
the marketing program to all of the following:
(1) California's tourism industry.
(2) Employment in California.
(3) State and local tax revenues.
(4) The state's lesser known and underutilized destinations.
(d) Identify additional data that needs to be collected to assess
further and adequately the benefits of the program.
(e) Establish standardized and accurate methods to measure
annually California's share of the domestic and international tourism
markets and assess the impact of the marketing program in terms of
California's changing market share.
SEC. 5. Chapter 2.2 (commencing with Section 15372.60) is added to
Part 6.7 of Division 3 of Title 2 of the Government Code, to read:
CHAPTER 2.2. CALIFORNIA TOURISM MARKETING ACT
Article 1. Legislative Intent
15372.60. This chapter shall be known and may be cited as the
California Tourism Marketing Act.
15372.61. The Legislature hereby finds and declares all of the
following:
(a) Tourism is among California's biggest industries, annually
contributing over fifty-four billion dollars ($54,000,000,000) to the
state economy, and employing about 700,000 Californians in 1995.
(b) In order to retain and expand the tourism industry in
California, it is necessary to market travel to and within
California.
(c) State funding, while an important component of marketing, has
been unable to generate sufficient funds to meet the threshold levels
of funding necessary to reverse recent losses of California's
tourism market share.
(d) An industry-approved assessment provides a private-sector
financing mechanism that, in partnership with state funding, will
provide the amount of marketing necessary to increase tourism
expenditures within California.
(e) The goal of the assessments is to assess the least amount per
business, in the least intrusive manner, spread across the greatest
practical number of tourism industry segments.
(f) The commission shall target an amount determined to be
sufficient to market effectively California's tourism to and within
the state.
(g) In the course of developing its written marketing plan
pursuant to Section 15372.5, the commission shall, to the maximum
extent feasible, do both of the following:
(1) Seek advice and recommendations from all segments of
California's travel and tourism industry and from all geographic
regions of the state.
(2) Harmonize, as appropriate, its marketing plan with the travel
and tourism marketing activities and objectives of the various
industry segments and geographic regions.
(h) The commission's marketing budget shall be spent predominantly
to bring travelers and tourists into the state, and no more than 15
percent of the commission's assessed funds in any year shall be spent
to promote travel within California, unless approved by at least
two-thirds of the commissioners.
Article 2. Definitions
15372.65. Unless the context otherwise requires, the definitions
in this section govern the construction of this chapter.
(a) "Appointed Commissioner" means a commissioner appointed by the
Governor.
(b) "Assessed business" means a person required to pay an
assessment pursuant to this chapter, and until the first assessment
is levied, any person authorized to vote for the initial referendum.
(c) "Commission" means the California Tourism Marketing
Commission.
(d) "Elected Commissioner" means a commissioner elected pursuant
to subdivision (d) of Section 15372.70.
(e) "Industry category" means the following classifications within
the tourism industry:
(1) Accommodations.
(2) Restaurants and retail.
(3) Attractions and recreation.
(4) Transportation and travel services.
(f) "Industry segment" means a portion of an industry category.
For example, rental cars are an industry segment of the
transportation and travel services industry category.
(g) "Office" means the Office of Tourism within the Trade and
Commerce Agency.
(h) "Person" means an individual, public entity, firm,
corporation, association, or any other business unit.
(i) "Referendum" means any vote by mailed ballot of measures
recommended by the commission and approved by the secretary pursuant
to Section 15372.100, except for the initial referendum, which shall
consist of measures contained in the selection committee report,
discussed in Section 15372.66.
(j) "Secretary" means the Secretary of Trade and Commerce.
(k) "Selection Committee" means the Tourism Selection Committee
described in Article 3 (commencing with Section 15372.66).
Article 3. Tourism Selection Committee
15372.66. (a) The Governor shall appoint a Tourism Selection
Committee based upon recommendations from established industry
associations. The committee shall consist of 25 representatives,
with no fewer than six from each industry category. In selecting the
representatives, the Governor shall, to the extent possible, give
recognition to the diversity within each industry category. The
committee shall select a chairperson from among its members. The
office shall provide staffing for the committee.
(b) The selection committee shall convene on or before March 1,
1996. Not later than 150 days following the initial convening of the
committee, the committee shall issue a report listing the following:
(1) Industry segments that will be included in the initial
referendum.
(2) Percentage of funds to be levied against each industry
category and segment. To the extent possible, the percentages shall
be based upon quantifiable industry data. Funds to be levied against
businesses shall bear an appropriate relationship to the benefit
derived from travel and tourism by those businesses.
(3) Assessment methodology and rate of assessment within each
industry segment, that may include, but is not limited to, a
percentage of gross revenue or a per transaction charge.
(4) Businesses, if any, within a segment to be assessed at a
reduced rate, which may be set at zero, whether temporarily or
permanently, because they do not sufficiently benefit from travel and
tourism.
(5) Initial slate of proposed elected commissioners. The number
of commissioners elected from each industry category shall be
determined by the weighted percentage of assessments from that
category.
(c) Nothing in this section shall preclude the selection committee
from setting the assessment rate for a business within a segment at
a lower rate, which may be set at zero, than a rate applicable to
other businesses within that segment if the selection committee makes
specific findings that the lower rate should apply due to unique
geographical, financial, or other circumstances affecting the
business. No business for which a zero assessment rate is set
pursuant to this subdivision shall be sent a ballot or entitled to
participate in the initial referendum, or in any subsequent
referendum in which its rate of assessment is set at zero.
(d) The committee members for each industry category, also
referred to as a subcommittee, shall prepare a recommendation for the
entire committee on how the items specified in subdivision (b)
should be determined for the industry segments within their industry
category. The recommendations shall not include a discussion of
industry category levies, which shall be determined solely by the
committee. In the event that the subcommittee cannot agree on one or
more of the items specified in subdivision (b), no recommendation
shall be given in that category. The recommendations shall be
presented to the full committee, which shall address each of the
items contained in subdivision (b).
(e) In order to be assessed, an industry segment must be defined
with sufficient clarity to allow for the cost effective
identification of assessed businesses within that segment.
(f) It shall be the responsibility of the office to advertise
widely the selection committee process and to schedule public
meetings for potential assessed businesses to provide input to the
selection committee.
(g) The selection committee process and report are exempt from the
requirements of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1).
Article 4. Commission
15372.70. (a) Upon approval of the initial referendum, the office
shall establish a nonprofit corporation named the California Tourism
Marketing Commission. The commission shall be under the direction
of a board of commissioners, which shall function as the board of
directors for purposes of the Nonprofit Corporation Law.
(b) The board of commissioners shall consist of 37 commissioners
comprising the following:
(1) The secretary, who shall serve as chairperson.
(2) Twelve members, who are professionally active in the tourism
industry, representing each of the 12 officially designated tourism
regions and diverse elements of the industry, shall be appointed by
the Governor. Appointed commissioners are not limited to assessed
businesses.
(3) Twenty-four elected commissioners, including at least one
representative of a travel agency or tour operator that is an
assessed business.
(c) The commission established pursuant to Section 15364.52 shall
be inoperative so long as the commission established pursuant to this
section is in existence.
(d) Elected commissioners shall be elected by industry category in
a referendum. Regardless of the number of ballots received for a
referendum, the nominee for each commissioner slot with the most
weighted votes from assessed businesses within that industry category
shall be elected commissioner. In the event that an elected
commissioner resigns, dies, or is removed from office during his or
her term, the commission shall appoint a replacement from the same
industry category that the commissioner in question represented, and
that commissioner shall fill the remaining term of the commissioner
in question. The number of commissioners elected from each industry
category shall be determined by the weighted percentage of
assessments from that category.
(e) The secretary may remove any elected commissioner following a
hearing at which the commissioner is found guilty of abuse of office
or moral turpitude.
(f) With the exception of the secretary, no commissioner shall
serve for more than two consecutive terms.
(g) Except for the original commissioners, all commissioners shall
serve four-year terms. One-half of the commissioners originally
appointed or elected shall serve a two-year term, while the remainder
shall serve a four-year term. Every two years thereafter, one-half
of the commissioners shall be appointed or elected by referendum.
(h) The selection committee shall determine the initial slate of
candidates for elected commissioners. Thereafter the commissioners,
by adopted resolution, shall nominate a slate of candidates, and
shall include any additional candidates complying with the procedure
described in Section 15372.102.
(i) The commissioners shall elect a vice chairperson from the
elected commissioners.
(j) The commission may lease space from the office.
(k) The commission and the office shall be the official state
representatives of California tourism.
(l) All commission meetings shall be held in California.
(m) No person shall receive compensation for serving as a
commissioner, but each commissioner shall receive reimbursement for
reasonable expenses incurred while on authorized commission business.
(n) Assessed businesses shall vote only for commissioners
representing their industry category.
(o) Commissioners shall comply with the reporting requirements of
the Fair Political Practices Commission.
(p) Commission meetings shall be subject to the requirements of
the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section
11120) of Chapter 1 of Part 1).
15372.71. The purpose of the commission is to increase the number
of persons traveling to and within California.
15372.72. (a) The commission is a private nonprofit corporation,
and not part of state government. Except as provided in Section
15372.73, the staff of the commission shall not be state employees,
and the procedures adopted by the commission shall not be subject to
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1), nor shall the commission in any other
manner be construed to be a public entity.
(b) Not later than six months following the initial referendum,
the commission shall adopt procedures concerning the operation of the
commission in order to provide due process rights for assessed
businesses.
(c) In the event that the commission fails to adopt the procedures
described in subdivision (b) within the specified timeframe, the
secretary shall adopt procedures for use by the commission until the
commission adopts its own procedures. These procedures shall be
exempt from the Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1), whether adopted by the commission or
secretary.
15372.73. (a) The commission shall be administered by an
executive director. That individual shall be a tourism industry
marketing professional, recommended by a vote of the commissioners
and approved by the Governor. The executive director shall serve at
the pleasure of both the commissioners and the Governor.
(b) The executive director shall report to and receive overall
guidance from the commission, and shall implement the commission's
tourism marketing plan. The executive director shall report to the
secretary for day-to-day managerial and financial responsibilities.
(c) The executive director shall simultaneously serve as the
director of the office, and that individual shall be an exempt
employee, employed by the state. So long as the commission is in
existence, the only director of the office shall be the executive
director of the commission. Notwithstanding any other provision of
law, the executive director may supervise both employees of the
commission and employees of the office, notwithstanding the fact that
the commission employees are not employed by the state.
(d) The salary and benefits of the executive director shall be
determined by the commission, and approved by the secretary, based
upon industry standards for a director of a marketing budget of
similar size. The entire salary and all benefits of the executive
director shall be paid from assessments.
15372.74. (a) The commission shall annually provide to all
assessed businesses a report on the activities and budget of the
commission including, but not limited to, income and expenses, the
fund balance, a summary of the tourism marketing plan, and a report
of progress in achieving the goals set forth in the plan.
(b) The commission shall maintain a report on the percentage
assessment allocation between industry categories and industry
segments. The report shall also specify the reasons and methodology
used for the allocations. This report shall be updated every time
the assessment allocations are amended. The report shall be made
available to any assessed business.
15372.75. (a) The commission shall annually prepare, or cause to
be prepared, a written marketing plan. In developing the plan, the
commission shall utilize, as appropriate, the advice and
recommendations of the industry marketing advisory committee or
committees established pursuant to subdivision (a) of Section
15372.77. The commission may amend the plan at any commission
meeting. All expenditures by the commission shall be consistent with
the marketing plan.
(b) The plan shall promote travel to and within California, and
shall include, but not be limited to, the following:
(1) An evaluation of the previous year's budget and activities.
(2) Review of California tourism trends, conditions, and
opportunities.
(3) Target audiences for tourism marketing expenditures.
(4) Marketing strategies, objectives, and targets.
(5) Budget for the current year.
(c) Before final adoption of the plan, the commission shall
provide each known destination marketing organization in California
notice of the availability of the proposed marketing plan and
suitable opportunity, which may include public meetings, to review
the plan and to comment upon it. The commission shall take into
consideration any recommendations submitted by the destination
marketing organizations, except that the final determination as to
the nature, extent, and substance of the plan shall in all respects
rest solely within the ultimate discretion of the commission.
15372.76. Commissioners and employees of the commission are not
responsible individually in any way whatsoever to any person for
liability for any good faith activity of the commission.
15372.77. (a) The commission shall establish one or more industry
marketing advisory committees, which may include noncommissioners as
members. The industry marketing advisory committees shall be
structured so that, in the aggregate, they include, to the maximum
extent feasible and reasonable, representation from every geographic
region of the state and every segment of the state's travel and
tourism industry. The commission shall establish procedures for the
operation of the industry marketing advisory committees that will
provide appropriate opportunity for every geographic region of the
state and every segment of the travel and tourism industry to offer
advice and recommendations to the commission relative to the
development of its written marketing plan pursuant to Section
15372.75.
(b) The
commission may also establish from time to time any other committees
it deems appropriate, and may appoint noncommissioners to the
committees.
15372.78. If the commission believes that the administration of
the marketing plan will be promoted thereby, the commission may
borrow money, with or without interest, to carry out the provisions
of the marketing plan, and may hypothecate anticipated assessment
collections.
Article 5. Secretary
15372.85. (a) The marketing of California tourism is hereby
declared to be affected with the public interest. This chapter is
enacted in the exercise of the police powers of this state for the
purpose of protecting the health, peace, safety, and general welfare
of the people of this state.
(b) The police powers shall be used to collect assessments not
paid by the deadlines established by the secretary.
15372.86. (a) The following powers shall be the responsibility of
the secretary:
(1) Call referenda in accordance with the procedures set forth in
Article 6 (commencing with Section 15372.100) and certify the
results.
(2) Collect and deposit assessments.
(3) Exercise police powers.
(4) Pursue actions and penalties connected with assessments.
(b) Except as otherwise specified in this chapter, the secretary
shall have veto power over the actions of the commission, following
consultation with the commission, only under the following
circumstances:
(1) Travel and expense costs.
(2) Situations where the secretary determines a conflict of
interest exists, as defined by the Fair Political Practices
Commission.
(3) The use of any state funds.
(4) Any contracts entered into between the commission and a
commissioner.
15372.87. (a) Except as otherwise specified in Section 15372.111,
the commission may be terminated at any time after the initial four
years of operation by referendum of the assessed businesses.
(b) Notice of the termination shall be mailed to all assessed
businesses.
(c) Upon termination, the commission shall continue its existence
as a nonprofit corporation for purposes of winding up its affairs and
dissolution.
(d) Upon termination of the commission established pursuant to
this chapter, the California Tourism Commission authorized pursuant
to Section 15364.52 shall advise the office, and conduct all other
tasks authorized by the California Tourism Policy Act.
15372.88. The secretary may require any and all assessed
businesses to maintain books and records that reflect their income or
sales as reflected in the assessment, and to furnish the secretary
with any information that may, from time-to-time, be requested by the
secretary, and to permit the inspection by the secretary of portions
of books and records that relate to the amount of assessment.
15372.89. Information pertaining to assessed businesses obtained
by the secretary pursuant to this chapter is confidential and shall
not be disclosed except to a person with the right to obtain the
information, any attorney hired by the secretary who is employed to
give legal advice upon it, or by court order. Information obtained
by the secretary in order to determine the assessment level for an
assessed business is exempt from the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title
1).
15372.90. For the purpose of carrying out Section 15372.86, the
secretary may hold hearings, take testimony, administer oaths,
subpoena witnesses, and issue subpoenas for the production of books,
records, or documents of any kind.
15372.91. A person shall not be excused from attending and
testifying, or from producing documentary evidence, before the
secretary in obedience to the subpoena of the secretary pursuant to
the authority granted in Section 15372.90 on the ground, or for the
reason, that the testimony or evidence, documentary or otherwise,
which is required of him or her may tend to incriminate the person or
subject that person to a penalty. A natural person shall not,
however, be prosecuted or subjected to any penalty on account of any
transaction, matter, or thing concerning which he or she may be
required to testify, or produce evidence, documentary or otherwise,
before the secretary in obedience to a subpoena. A natural person
testifying shall not, however, be exempt from prosecution and
punishment for perjury committed in so testifying.
15372.92. Any funds appropriated to the office may be used to
implement the tourism marketing plan specified in Section 15372.75
or, if the commission is not in existence, Section 15364.52. In
addition to any other authority for the office to spend funds, state
funds may be used for the following: research, conducting and
advertising referenda, administration of state funds, policing,
collection of assessments, and contracting for assistance in
obtaining information on businesses to be assessed.
15372.93. The office may contract with the commission in order
for the commission to undertake marketing activities utilizing state
funds, and Section 10295, and Article 4 (commencing with Section
10335) and Article 5 (commencing with Section 10355) of Chapter 2 of
Part 2 of Division 2 of the Public Contract Code shall not apply to
those agreements.
Article 6. Referendum
15372.100. (a) A referendum shall be called every two years,
commencing on the second anniversary of the initial referendum.
(b) The first referendum following the initial referendum shall
solely determine the new set of commissioners by adopted resolution.
At that referendum, the assessment target shall be twenty-five
million dollars ($25,000,000). The assessment formula shall remain
the same and the commission shall continue its existence. As used in
this article and Article 7 (commencing with Section 15372.105)
"assessment level" means the estimated gross dollar amount received
by assessment from all assessed businesses on an annual basis, and
"assessment formula" means the allocation method used within each
industry segment (for example, percentage of gross revenue).
(c) Commencing with the third referendum, the commission shall, by
adopted resolution, determine the slate of individuals who will run
for commissioner. The resolution may also include: the proposed
assessment levels, assessment formulae, and whether the commission
shall continue in existence. The commission may specify in the
resolution that a special, lower assessment rate that was set
pursuant to subdivision (c) of Section 15372.66 for a particular
business will no longer apply due to changes in the unique
circumstance that originally justified the lower rate. The
resolution may include up to three possible assessment levels, from
which the assessed businesses will select one assessment level by
plurality weighted vote.
(d) The commission shall deliver to the secretary the resolution
described in subdivision (b) or (c). The secretary shall call a
referendum containing the information required by subdivision (b) or
(c) plus any additional matters complying with the procedures of
subdivision (b) of Section 15372.102.
(e) When the secretary calls a referendum, all assessed businesses
shall be sent a ballot for the referendum. Every ballot that the
secretary receives by the ballot deadline shall be counted, utilizing
the weighted formula adopted initially by the selection committee,
and subsequently amended by referendum.
(f) If the referendum includes more than one possible assessment
rate, the rate with the plurality of weighted votes shall be adopted.
(g) The initial referendum shall, if possible, be held within 180
days of receipt by the Governor of the selection committee report.
The secretary shall call the referendum.
(h) Referenda can cover one or more of the following subjects:
(1) Assessment level, based upon specified assessment formulae.
(2) Amended industry segment allocation formula.
(3) Percentage allocation of assessments between industry
categories and segments.
(4) Election of commissioners.
(5) Termination of the commission.
(6) For the initial referendum, whether to have an assessment.
15372.101. (a) The costs of marketing and promoting the initial
referendum shall be provided by private payments. The office shall
coordinate the marketing and promotion. The costs of the initial
referendum shall be paid by the office. The office shall coordinate
the referendum to ensure that it is unbiased and factually correct.
In the event that the initial referendum fails in the first attempt
at passage, subsequent attempts at passage of the initial referendum
shall be permitted, except that the costs of conducting the
subsequent attempts at passage, along with the costs of marketing and
promoting those attempts at passage, shall be provided by private
payments. Subsequent attempts at passage shall be conducted in the
manner specified in this subdivision. In the event that the initial
referendum passes, whether on the first attempt at passage or a
subsequent attempt at passage, the private payers and the office
shall be reimbursed for all of their respective initial referendum
costs from assessments first received.
(b) The ongoing referendum costs shall be paid by the commission.
15372.102. (a) Commencing with the third referendum, assessed
businesses may place on a referendum additional candidates for
commissioner, a different assessment level, or both.
(b) Except for the referendum that occurs four years from the
initial referendum, a minimum of 20 percent of the assessed
businesses (calculated by weighted percentages) must signify their
agreement to add different assessment levels to the items included in
the referendum. For the referendum occurring four years from the
initial referendum, a minimum of 10 percent of the assessed
businesses (calculated by weighted percentages) must signify
agreement.
(c) A minimum of 10 percent of the assessed businesses (calculated
by weighted percentages) must signify their agreement to add
candidates for commissioner to the items included in the referendum.
15372.103. (a) Upon receipt of the resolution required by Section
15372.100, including any assessed business referendum request
pursuant to Section 15372.102, the secretary shall establish a
referendum period not to exceed 60 days. If the secretary determines
that the referendum period so established does not provide
sufficient time for the balloting, the secretary may extend the
referendum period not more than 15 additional days. At the close of
the referendum period, the secretary shall count and tabulate the
ballots filed during the referendum period.
(b) The secretary shall establish a deadline for adoption of the
resolution described in subdivision (a). If the commission fails to
meet this deadline, or if the adopted resolution fails to meet the
requirements of this chapter, then assessed businesses may present a
slate of candidates to the secretary not later than 60 days following
the deadline established for the commission resolution. A minimum
of 10 percent of weighted voters must sign the document presenting
the slate.
(c) In the event that the secretary does not receive a resolution
required by Section 15372.100 from the commission by the deadline
established pursuant to subdivision (b) or the resolution does not
comply with the requirements of this chapter and the assessed
businesses fail to present a slate pursuant to subdivision (b), then
the secretary shall select a slate of commissioners and this slate,
added to any assessed business referendum requests pursuant to
Section 15372.102, shall constitute the items included in the
referendum.
15372.104. (a) Each assessed business is entitled to a weighted
vote in each referendum. In calculating weighted votes, each assessed
business receives a vote equal to the relative assessment paid by
that business. An assessed business paying nine hundred dollars
($900) in annual assessments has three times the weighted vote of a
business paying three hundred dollars ($300). Weighted votes are
used to determine all issues on the referendum. The initial
referendum, and any referendum item to terminate the commission, must
be approved by a majority of the weighted votes cast at the
referendum. The amount of assessment and selection of commissioners
is determined by the most weighted votes, whether or not there is a
majority.
(b) Each assessed business is part of one industry category and
one industry segment. A business with revenue in more than one
industry category or industry segment shall be included in the
category and segment in which it earns the most gross revenue.
(c) Each assessed business is eligible to vote for each item on
the referendum, except that an assessed business can only vote for
commissioners representing its industry category, and industry
segment formulae for its industry segment.
(d) A business is not eligible to vote unless it has paid all
assessments and fines outstanding as of a date established by the
secretary.
Article 7. Assessments
15372.105. (a) Each industry category shall establish a committee
to determine the following within its industry category: industry
segments, assessment formula for each industry segment, and any types
of business exempt from assessment. The initial segment committees
shall consist of the subcommittee for that category as described in
subdivision (c) of Section 15372.66. Following approval of the
assessment by referendum, the committees shall be selected by the
commission, based upon recommendations from the tourism industry.
Committee members need not be commission members.
(b) The committee recommendations shall be presented to the
commission or selection committee, as applicable. The selection
committee may adopt a resolution specifying some or all of the items
listed in subdivision (a), plus an allocation of the overall
assessment among industry categories. The commission may adopt a
resolution specifying one or more of the items listed in subdivision
(a), plus an allocation of the proposed assessment. The selection
committee and commission are not required to adopt the findings of
any committee.
(c) The initial industry category and industry segment allocations
shall be included in the selection committee report required by
subdivision (b) of Section 15372.66. Changes to the industry segment
allocation formula may be recommended to the commission by a segment
committee at the biennial commission meeting scheduled to approve
the referendum resolution pursuant to Section 15372.100. At the same
meeting, the commission may amend the percentage allocations among
industry categories. Any item discussed in this section that is
approved by resolution of the commission, except amendments to the
percentage allocations among industry categories, shall be placed on
the next referendum, and adopted if approved by the weighted majority
of votes cast.
(d) Upon approval by referendum, the office shall calculate the
assessments due by each assessed business, and mail an assessment
bill to each assessed business. The secretary shall determine how
often assessments are collected, based upon available staffing
resources. The secretary may stagger the assessment collection
throughout the year, and charge businesses a prorated amount of
assessment because of the staggered assessment period. The secretary
and office shall not divulge the amount of assessment or weighted
votes of any assessed businesses, except as part of an assessment
action.
(e) An assessed business may appeal an assessment to the secretary
based upon the fact that the business does not meet the definition
established for an assessed business within its industry segment or
that the level of assessment is incorrect. If the error is based
upon failure of the business to provide the required information in a
timely manner, the secretary may fine the business as a condition of
correcting the assessment.
(f) Notwithstanding any other provision of law, an assessed
business may pass on some or all of the assessment to customers. An
assessed business that is passing on the assessment may, but shall
not be required to, separately identify or itemize the assessment on
any document provided to a customer. Assessments levied pursuant to
this chapter are not part of gross receipts or gross revenue for any
purpose, including the calculation of sales or use tax and income
pursuant to any lease; however, assessments that are passed on to
customers shall be included in gross receipts for purposes of income
and franchise taxes.
15372.106. If approved by referendum, the initial assessment
level shall be approximately twenty-five million dollars
($25,000,000). This figure is a target, and shall serve as the basis
for setting assessment formulae, but the actual amount of collected
assessments may be more or less than the assessment level.
15372.107. Assessments may be used in furtherance of the purposes
set forth in Section 15372.71, or to fund the costs pursuant to
Section 15372.92. Assessments may be used to fund these costs
regardless of whether the work was performed by the office or
commission.
15372.108. Notwithstanding any other provision of law, the
secretary may utilize any and all records held by the state in order
to establish and maintain an accurate list of businesses to be
assessed, including information necessary to determine the amount of
assessment owed by a business.
15372.109. (a) The secretary shall establish a list of businesses
to be assessed and the amount of assessment owed by each. The
secretary shall collect the assessment from all assessed businesses,
and in collecting the assessment the secretary may exercise the
police powers and bring enforcement actions.
(b) Funds collected by the secretary shall be deposited into the
account of the commission. This account shall not be an account of
the state government.
(c) Any costs relating to the collection of assessments incurred
by the state shall be reimbursed by the commission.
15372.110. (a) The office shall develop a list of California
businesses within each segment included within the report required by
subdivision (b) of Section 15372.66, periodically updated. Other
state agencies shall assist the office in obtaining the names and
addresses of these businesses.
(b) The office shall mail to each business identified pursuant to
subdivision (a) a form requesting information necessary to determine
the assessment for that business. Any business failing to provide
this information in a timely manner shall be assessed an amount
determined by the secretary to represent the upper assessment level
for that segment.
(c) Subject to approval by the commission, the office shall
establish by regulation the procedure for assessment collection.
15372.111. (a) Funding for the commission is a cooperative
venture. It is the intent of the Legislature that the state shall be
responsible for appropriating a minimum of seven million three
hundred thousand dollars ($7,300,000) each fiscal year to tourism,
and the industry shall be responsible for targeting the level of
assessments for each fiscal year at twenty-five million dollars
($25,000,000) or more pursuant to Section 15372.106. The industry
may terminate the commission by referendum at any time, including
during the initial four years, if the state fails to appropriate
seven million three hundred thousand dollars ($7,300,000) in any
fiscal year, and the state may decide not to appropriate funding in
the event that the commission fails to target its annual assessment
level at or above the level set for the initial referendum in any
fiscal year. Termination of the commission by the industry shall
require an adopted resolution of the commission to either include
this issue in a regularly scheduled referendum, or to call a special
referendum to decide the issue.
(b) The assessed funds shall be audited annually.
(c) The assessed funds shall be under the control of the
commission, which shall spend the funds consistent with commission
policies and the tourism marketing plan. The state shall have no
interest in the fund except the general state interest that the state
has in nonprofit corporations.
15372.112. Any assessment levied as provided in this chapter is a
personal debt of every person so assessed and shall be due and
payable to the secretary. If any assessed person fails to pay any
assessment, the secretary may file a complaint against the person in
a state court of competent jurisdiction for the collection of the
assessment.
15372.113. If any assessed business that is duly assessed
pursuant to this chapter fails to pay to the secretary the assessed
amount by the due date, the secretary may add to the unpaid
assessment an amount not to exceed 10 percent of the unpaid
assessment to defray the cost of enforcing the collection of the
unpaid assessment. In addition to payment for the cost of enforcing
a collection, the assessed business shall pay to the secretary a
penalty equivalent to the lesser of either the maximum amount
authorized by Section 1 of Article XV of the California Constitution
or 5 percent for each 30 days the assessment is unpaid, prorated over
the days unpaid, commencing 30 days after the notice has been given
to the assessed business of his or her failure to pay the assessment
on the date required, unless the secretary determines, to his or her
satisfaction, that the failure to pay is due to reasonable cause
beyond the control of the assessed business.
15372.114. The secretary may require assessed businesses to
deposit with him or her in advance the following amounts:
(a) An amount for necessary expenses.
(b) An amount that shall not exceed 25 percent of the assessment
to cover costs that are incurred prior to the receipt of sufficient
funds from the assessment.
(c) The amount of any deposit that is required by the secretary
shall be based upon the estimated assessment for the assessed
business.
15372.115. In lieu of requiring advance deposits pursuant to
Section 15372.114, or in order generally to provide funds for
defraying administrative expenses or the expenses of implementing the
tourism marketing plan until the time that sufficient moneys are
collected for this purpose from the payment of the assessments that
are established pursuant to this chapter, the secretary may receive
and disburse for the express purposes contributions that are made by
assessed businesses. If, however, collections from the payment of
established assessments are sufficient to so warrant, the secretary
shall authorize the repayment of contributions, or authorize the
application of the contributions to the assessment obligations of
persons that made the contributions.
15372.116. Upon termination of the commission, any remaining
funds that are not required by the secretary to defray commission
expenses shall be returned by the secretary upon a pro rata basis, to
all persons from whom the assessments were collected unless the
secretary finds that the amounts to be returned are so small as to
make impractical the computation and remitting of the pro rata refund
to the appropriate persons. If the secretary makes a finding that
returning the remaining funds would be impractical, he or she may use
the moneys in the fund to defray the costs of the office.
15372.117. Any check or warrant that is drawn against the funds
of the commission that remains unclaimed or uncashed for a period of
six months from the date of issuance shall be canceled and the money
retained for disbursement to the original payee or claimant upon
satisfactory identification for a period of one year from the time
the check or warrant is canceled. The money so retained, if not
claimed within the period of one year, shall be used for
administration of the commission, and in furtherance of the tourism
marketing plan.
15372.118. A business is exempt from the assessments provided for
in this chapter if the business is a travel agency or tour operator
that derives less than 20 percent of its gross revenue from travel
and tourism occurring within the state. A travel agency or tour
operator that qualifies for this exemption may pay the assessment by
filing a written request with the secretary indicating its desire to
be categorized as an assessed business.
Article 8. Actions and Penalties
15372.120. Any action for any penalty or other remedy that is
prescribed under any provision of this chapter shall be commenced
within three years from the date of the alleged violation.
15372.121. Every person who provides false information concerning
an assessment or pursuant to Section 15372.124 is guilty of a
misdemeanor, and upon conviction shall be punished by a fine of not
less than one thousand dollars ($1,000) nor more than ten thousand
dollars ($10,000) or by imprisonment of not less than 10 days nor
more than six months, or by both the fine and imprisonment.
15372.122. Any person who files false information concerning an
assessment is civilly liable in an amount of not more than ten
thousand dollars ($10,000), in addition to any amount owed as the
assessment.
15372.123. (a) When the secretary makes a determination that an
assessment is deficient as to the payment due, the secretary may
determine the amount of the deficiency, including any applicable
penalty, as provided in this chapter. After giving notice that a
deficiency determination is proposed and an opportunity to file a
report or provide supplemental information is provided, the secretary
may make one or more deficiency determinations of the amount due for
any reporting period based on information in the secretary's
possession. When an assessed business is discontinued, a deficiency
determination may be made at anytime thereafter as to the liability
arising out of the operation of that business.
(b) The secretary shall give notice of the proposed deficiency
determination and the notice of deficiency determination by mailing a
copy of the deficiency to the assessed business at the current
address for that business on file with the secretary. The giving of
notice is complete at the time of deposit in the United States mail.
In lieu of mailing, a notice may be served personally by delivering
it to the person to be served.
(c) Except in the case of fraud or failure to file required
information, a notice of a deficiency determination shall be given
within four years of the accrual of the deficiency.
(d) The person against whom a deficiency determination is made
may petition the secretary for redetermination within 30 days after
the serving of the notice of deficiency determination. If a petition
is not filed within 30 days, the deficiency determination shall
become final.
(e) A petition for redetermination shall be in writing, state the
specific grounds upon which it is based, and be supported by
applicable records and declarations under penalty of perjury that the
information supporting the petition is accurate and complete. If a
petition for redetermination is duly filed, the secretary shall
reconsider the deficiency determination and may grant a hearing
thereon. The secretary shall, as soon as practicable, make an order
on redetermination, which shall become final 30 days after service of
notice of the order of redetermination upon the petitioner. The
notice of the order shall be served in the same manner as the notice
of the original deficiency determination.
(f) If any amount required to be paid pursuant to a deficiency
determination or redetermination is not paid within the time
specified in the notice thereof, the secretary may, within four years
thereafter, file in the Superior Court in the County of Sacramento,
or the superior court in any other county, a certificate specifying
the amount required to be paid, the name and address of the person
liable as it appears on the records of the secretary, and a request
that judgment be entered against the person in that amount 30 days
after the filing. Notice of the filing shall be given in the same
manner as for the notice of deficiency determination. The court
shall enter a judgment in conformance with the secretary's
certificate 30 days after its filing, unless a petition for judicial
review has been filed within the 30-day period.
(g) An abstract of the judgment, or a copy thereof, may be filed
with the county recorder of any county. From the time of filing of
the judgment, the amount of the judgment constitutes a lien upon all
of the property in the county owned by the judgment debtor. The lien
has the force, effect and priority of a judgment lien and shall
continue for 10 years from the date of the judgment, unless sooner
released or otherwise discharged. The lien imposed by this section
is not valid insofar as personal property is concerned against a
purchaser of value without actual knowledge of the lien.
(h) Execution shall issue upon the judgment upon request of the
secretary in the same manner as execution may issue upon other
judgments, and sales shall be held under execution as prescribed in
the Code of Civil Procedure.
(i) The person named in a notice of deficiency determination or
redetermination may, within 30 days of the notice of filing with the
superior court, file an action for judicial review thereof, as
provided herein, in the Superior Court in the County of Sacramento
or, with the secretary's consent, the superior court in any other
county. As a condition of staying entry of judgment or granting
other relief, the court shall require the filing of a corporate
surety bond with the secretary in the amount of the deficiency stated
in the certificate. In any court proceeding, the certificate of the
secretary determining the deficiency shall be prima facie evidence
of the fee and the amount due and unpaid.
(j) The provisions of this section are supplemental to any other
procedures for collection and imposition of fees and penalties
provided by this chapter.
(k) In lieu of proceeding pursuant to this section, the secretary
may file a complaint for collection of unpaid assessments as provided
by law.
15372.124. It is a violation of this chapter for any person to
willfully render or furnish a false or fraudulent report, statement,
or record that is required by the secretary pursuant to any provision
of this chapter.
15372.125. Any suit brought by the secretary to enforce any
provision of this chapter, or any regulation, or rule and regulation,
that is issued by the secretary shall provide that the defendant pay
to the secretary the costs that were incurred by the secretary and
by the commission in the prosecution of the action in the event the
secretary prevails in the action. Any money that is recovered shall
reimburse the account or accounts used to pay the costs.
Article 9. Miscellaneous
15372.130. In any civil or criminal action or proceeding for
violation of any of the following, proof that the act that is
complained of was done in compliance with the provisions of this
chapter is a complete defense to the action or proceeding:
(a) The Cartwright Act, Chapter 2 (commencing with Section 16700)
of Part 2 of Division 7 of the Business and Professions Code.
(b) The Unfair Practices Act, Chapter 4 (commencing with Section
17000) of Part 2 of Division 7 of the Business and Professions Code.
(c) Any rule of statutory or common law against monopolies or
combinations in restraint of trade.
15372.131. If any section, sentence, clause, or part of this
chapter or the application thereof to any person or circumstance is
for any reason held to be invalid, that invalidity shall not affect
the remaining provisions or applications of this chapter that can be
given effect without the invalid provision or application, and to
this end the provisions of this act are severable. The Legislature
hereby declares that it would have passed this chapter and each
section, sentence, clause, and part of this chapter despite the fact
that one or more sections, sentences, clauses, or parts of this
chapter is declared invalid.
SEC. 6. Section 19559 is added to the Revenue and Taxation Code,
to read:
19559. (a) Subject to the limitations of this section and federal
law, the Franchise Tax Board may provide the Secretary of Trade and
Commerce, when that person is acting in any capacity authorized by
Chapter 2.2 (commencing with Section 15372.60) of Part 6.7 of
Division 3 of Title 2 of the Government Code, with all of the
following:
(1) The names and addresses or other identification or location
information from income or franchise tax returns or other records
required under Part 10 (commencing with Section 17001), Part 11
(commencing with Section 23001), or this part, solely for the
purposes of establishing and maintaining an accurate list of
businesses to be assessed pursuant to Chapter 2.2 (commencing with
Section 15372.60) of Part 6.7 of Division 3 of Title 2 of the
Government Code.
(2) Sufficient financial data from income and franchise tax
returns solely for purposes of verifying the base upon which the
assessment is determined.
(b) Neither the Trade and Commerce Agency, nor its agents, nor any
of its current or former officers or employees, nor any current or
former members, employees, or agents of the California Tourism
Marketing Commission, shall disclose or use any information obtained
pursuant to this section except as provided in this section. Any
disclosure not authorized by this section is a misdemeanor.
(c) The Franchise Tax Board may from time to time review the use
of information provided to the Secretary of Trade and Commerce
pursuant to this section and the Secretary of Trade and Commerce
shall provide the Franchise Tax Board with access for that purpose.
The reviews shall be limited to ensuring that the Secretary of Trade
and Commerce uses the information provided by the Franchise Tax Board
only in the manner specified in subdivision (a). The Franchise Tax
Board shall report all findings to the Secretary of Trade and
Commerce.
SEC. 7. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.