BILL ANALYSIS
AB 2332
Page 1
ASSEMBLY THIRD READING
AB 2332 (Eng)
As Introduced February 19, 2010
Majority vote
BUSINESS AND PROFESSIONS 7-2APPROPRIATIONS 12-5
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|Ayes:|Hayashi, Eng, Hernandez, |Ayes:|Fuentes, Ammiano, Bradford, |
| |Hill, Ma, Nava, Ruskin | | |
| | | |Charles Calderon, Coto, |
| | | |Davis, Nava, Hall, Skinner, |
| | | |Solorio, Torlakson, Torrico |
| | | | |
|-----+--------------------------+-----+----------------------------|
|Nays:|Emmerson, Smyth |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, Norby |
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SUMMARY : Authorizes the Contractors State License Board (CSLB) to
suspend or deny a contractor's license to a licensee who fails to
resolve tax liabilities assessed by the Board of Equalization (BOE).
EXISTING LAW authorizes CSLB to suspend or deny a contractor's
license to a licensee who fails to resolve tax liabilities assessed
by the Department of Industrial Relations (DIR), the Employment
Development Department (EDD), or the Franchise Tax Board (FTB).
FISCAL EFFECT : According to the Assembly Appropriations Committee:
1)Costs associated with this legislation would be minor and
absorbable within the CSLB and BOE budgets.
2)Unknown revenue increases to the extent this authority allows BOE
to collect a portion of the $68 million in outstanding tax
liabilities.
COMMENTS : According to the author's office, "Current law does not
authorize BOE to request CSLB to suspend a contractor's license for
failure to pay any outstanding taxes, penalties, interest, or fees.
By authorizing BOE to request CSLB to deny or suspend a contractor's
license for failure to resolve any outstanding final tax or fee
liabilities, we would place the agency on equal footing with FTB and
EDD, in addition to promoting joint enforcement action among the
three tax collection agencies."
CSLB issues licenses to contractors who meet safety and experience
requirements within their field. There are more than 316,000
AB 2332
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licensed contractors in the state, in 43 different licensing
classifications. Current law authorizes CSLB to suspend or deny a
contractor's license to a licensee who has unpaid tax liabilities
with FTB, EDD, or DIR.
BOE currently has approximately 2,469 delinquent accounts for
construction contractors representing outstanding final tax
liabilities over $68 million. Current state law authorizes BOE to
use several collection tools to collect delinquent tax liabilities,
including the issuance of: orders to withhold funds to third parties
in possession of the debtor's funds or property; wage garnishments
against the debtor; and, warrants against the debtor to seize
property. A BOE analysis states that the suspension or denial of a
contractor's license would be used as a last resort for collecting
tax liabilities.
Current state law also provides that an alcoholic beeverage license
may be suspended, or a vehicle dealer's license may be revoked, for
unpaid tax liabilities.
Analysis Prepared by : Joanna Gin / B.,P. & C.P / (916) 319-3301
FN: 0003983