BILL NUMBER: AB 2177	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2010
	AMENDED IN ASSEMBLY  MARCH 23, 2010

INTRODUCED BY   Assembly Member Beall

                        FEBRUARY 18, 2010

   An act to add  and repeal  Section 18416.5  to
  of  the Revenue and Taxation Code, relating to
taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2177, as amended, Beall. Income and corporation taxes:
Franchise Tax Board: administration: electronic communication.
   Existing law, among other things, requires the Franchise Tax Board
to administer the Personal Income Tax Law and the Corporation Tax
Law.
   This bill would authorize the Franchise Tax Board, by regulation,
to implement an alternative communication method that, at the request
of a taxpayer  or the taxpayer's authorized representative 
, would allow specified electronic communications between the
Franchise Tax Board and the taxpayer.  The bill would require
specified notices to the taxpayer prior to the use of the alternative
communication method. The bill would repeal the provisions as of
January 1, 2018.  
   This bill would require the Franchise Tax Board to ensure
procedural due process requirements are satisfied in the
implementation of the alternative communication method. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 18416.5 is added to the Revenue and Taxation
Code, to read:
   18416.5.  (a) The Franchise Tax Board may, by regulation,
implement an alternative communication method that would allow the
Franchise Tax Board, at the request of the taxpayer  or the
taxpayer's authorized representative  , to provide notification
to the taxpayer in a preferred electronic communication method
designated by the taxpayer that a notice, statement, bill, or other
communication required or authorized under Part 10 (commencing with
Section 17001), this part, or Part 11 (commencing with Section 23001)
is available for viewing in the taxpayer's limited access secure
folder on the Franchise Tax Board's Internet Web site and would allow
the taxpayer  or the taxpayer's authorized representative 
to file a protest, notification, and other communication to the
Franchise Tax Board in a secure manner.  Prior to obtaining the
consent of a taxpayer to participate in the alternative communication
method authorized by this section, the Franchise Tax Board shall
advise the taxpayer or the taxpayer's authorized representative of
the ramifications of electing to receive notifications from the
Franchise Tax Board in the manner selected. 
   (b) Sending electronic notification to a taxpayer  or the
taxpayer's authorized representative  pursuant to the taxpayer's
request made in accordance with regulations authorized under
subdivision (a) shall not be considered a violation of Section 19542
or 19542.1.  Any electronic notification provided to a taxpayer
using the alternative communication method authorized by this section
shall include plain language advising the taxpayer that a failure to
act may cause the taxpayer to forego procedural or administrative
rights to challenge the proposed action.  
   (c) The alternative communication method authorized by this
section shall not apply to any notice, statement, bill, protest, or
other communication between the Franchise Tax Board and a taxpayer
prior to January 1, 2013, or successful implementation of the
Taxpayer Folder as a component of the Enterprise Data to Revenue
project of the Franchise Tax Board, whichever is later. 

   (c) This section shall cease to be operative with respect to a
notice, statement, bill, protest, or other communication between the
Franchise Tax Board and a taxpayer on or after January 1, 2018, and
is, as of that date, repealed. The repeal of this section shall not
be interpreted or applied to invalidate any notice, statement, bill,
protest, or other communication between the Franchise Tax Board and a
taxpayer prior to that date using the alternative communication
method authorized by this section prior to its repeal. 
   (d) Notwithstanding any other law regarding the use of United
States mail, any notice, statement, bill, protest, and other
communication from the Franchise Tax Board to a taxpayer  or the
taxpayer's authorized representative  and from a taxpayer 
or the taxpayer's authorized representative  to the Franchise
Tax Board pursuant to the alternative communication method authorized
by this section shall be treated as if it were mailed by United
States mail, postage prepaid.
   SEC. 2.    The Legislature finds and declares that
Section 18416.5 of the Revenue and Taxation Code, as added by Section
1 of this act, is intended to enhance opportunities for alternative
means of communication with taxpayers. The Legislature is also
mindful of fundamental requirements of the federal and state
constitutions concerning procedural due process. In prescribing
regulations under Section 18416.5 of the Revenue and Taxation Code,
the Franchise Tax Board shall ensure procedural due process
requirements are satisfied.