BILL NUMBER: SB 1306	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 7, 2010

INTRODUCED BY   Senator Runner

                        FEBRUARY 19, 2010

   An act to add Sections 6830.5 and 6830.6 to the Revenue and
Taxation Code, relating to taxation, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1306, as amended, Runner. Sales and use taxes: collections
agreements: delinquent accounts.
   Existing law authorizes the State Board of Equalization to take
various collection actions to effect the collection of delinquent
amounts due under the Sales and Use Tax Law and also authorizes the
board to contract with a private collection company to identify and
collect  out-of-State   out-of-state  sales
and use tax delinquent accounts.
   This bill would authorize the board to enter into agreements with
one or more persons for the purpose of collecting delinquent 
sales and use tax accounts regardless of where located, as provided
  accounts with respect to amounts assessed  
or imposed under specified statutes requiring the payment of sales
and use taxes, but only if the agreements do not displace, as
defined, civil service employees, and the board has exhausted all
internal procedures to collect on delinquent accounts  . The
bill would require that any amounts received by the board from
collections on delinquent accounts pursuant to those provisions be
deposited into the Delinquent Sales and Use Tax Collection Fund,
which the bill would create in the State Treasury. This bill would
continuously appropriate moneys in the new fund to reimburse the
board for its contracting costs and would prohibit these funds from
being used in place of funds from other sources that are available
for appropriation to the board, as provided.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 6830.5 is added to the Revenue and Taxation
Code, to read:
   6830.5.   (a)    The board may enter into
agreements with one or more persons for the purpose of collecting
delinquent accounts with respect to amounts assessed or imposed under
this part  , but only if the agreements do not displace any
civil service employees and the board has exhausted all internal
procedures to collect on delinquent accounts  . The agreement
may provide for the rate and manner of payment for the contracted
collection services. However, the consideration payable by the board
under the agreement shall not be included in the amounts to be
collected from the tax debtor by the contractor providing collection
services. 
   (b) For purposes of this section, "displace" includes layoff,
demotion, involuntary transfer to a new class, involuntary transfer
to a new location requiring a change of residence, and time base
reduction. "Displace" shall not include any change in shifts or days
off, or reassignment to another position within the same class and
general location. 
  SEC. 2.  Section 6830.6 is added to the Revenue and Taxation Code,
to read:
   6830.6.  (a)  Any   Notwithstanding any other
law, any  amounts received by the board pursuant to Section
6830.5  , notwithstanding any other law,  shall be
deposited into the Delinquent Sales and Use Tax Collection Fund,
which is hereby created in the State Treasury.
   (b) Notwithstanding Section 13340 of the Government Code, there
are hereby continuously appropriated from the Delinquent Sales and
Use Tax Collection Fund to the board those amounts of money necessary
for reimbursement of the board's contracting costs. Any moneys
remaining in the Delinquent Sales and Use Tax Collection Fund after
disbursements to the board shall be transferred to the Retail Sales
Tax Fund by the Controller upon notification by the board.
   (c) The funds generated through this section shall not be used in
place of funds from other sources that are available for
appropriation to the board.