BILL NUMBER: AB 1044	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Butler

                        FEBRUARY 18, 2011

   An act to amend Sections 17280.1 and 17280.2 of the Government
Code, relating to registered warrants.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1044, as introduced, Butler. Registered warrants: taxation.
   Existing law authorizes a taxpayer who has a tax liability with
respect to personal income taxes or bank and corporation taxes, and
who is a payee named in a registered warrant to pay the tax
liability, in whole or in part, by a check in an amount not to exceed
the amount of the registered warrant, and prohibits the check from
being drawn until the registered warrant is payable, if the check is
accompanied by a copy of the warrant. Existing law requires, when a
tax liability is paid with a registered warrant that is redeemable at
the time of payment, that interest be credited to the taxpayer's
account.
   This bill would revise and recast these provisions. This bill
would permit a taxpayer who has a tax liability, with respect to
personal income taxes or bank and corporation taxes required to be
remitted to the Franchise Tax Board or a taxpayer, feepayer, or
surcharge payer who has a liability for taxes, fees, or surcharges
required to be remitted to the State Board of Equalization, and who
is a payee named in a registered warrant to pay any tax, fee, or
surcharge liability with a registered warrant, subject to certain
conditions. The bill would prohibit the taxpayer, feepayer, or
surcharge payer submitting a registered warrant from receiving
interest on his or her registered warrant, except as a credit to his
or her account.
   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 17280.1 of the Government Code is amended to
read:
   17280.1.  (a) A taxpayer who has a tax liability, including any
liability for periodic estimated tax payments, with respect to
personal income taxes or bank and corporation taxes  required to
be remitted to the Franchise Tax Board or a taxpayer, feepayer, or
surcharge payer who has a liability for taxes, fees, or surcharges
required to be remitted to the State Board of Equalization  ,
and who is a payee named in a registered warrant as defined in
Section 17221 which is received in payment of an obligation of the
State of California to the taxpayer,  feepayer, or surcharge
payer  may pay any tax , fee, or surcharge  liability
specified above, in whole or in part, by  a check in an
amount not to exceed the amount of the registered warrant, exclusive
of any interest thereon. That check shall not be presented for
payment by the state or paid by the bank on which it is drawn until
the registered warrant payable to the taxpayer is payable upon its
presentation to the Treasurer. The provisions of this section shall
be applicable only if the taxpayer's check in payment of a tax
liability pursuant to this section is accompanied by a copy of the
registered warrant, as specified above, which clearly discloses the
name of the payee, the amount to be paid, the number of the warrant,
and the completed and signed legend as provided for in subdivision
(d).   submitting the original registered warrant,
signed on the reverse side by the payee and endorsed as payable to
the agency to which the liability is owed. 
   (b) Any taxpayer  , feepayer, or surcharge payer 
submitting a  check   registered warrant 
for the payment of taxes pursuant to subdivision (a) shall be
precluded from receiving interest on his or her registered warrant
 from the date the check for the payment of taxes is
submitted.   except as provided in Section 17280.2.
 
   (c) In the event that a taxpayer who submits a check for the
payment of taxes pursuant to subdivision (a) presents his or her
registered warrant to a bank or other institution for payment, the
taxpayer shall make a declaration upon presentment that he or she is
ineligible pursuant to subdivision (b) to receive interest from the
date he or she submitted the check.  
   (d) To facilitate the taxpayer in making the declaration required
by subdivision (c), all registered warrants issued shall bear a
legend on the reverse side in substantially the following form:

 ""In endorsing this warrant, I declare that I 
 have ( ) or have not ( ) 
 (check one) submitted a check on _________________

                                   (date) 
 for the payment of tax liability in an amount not 

 to exceed the 
 amount of this warrant.  I further declare that 
 by submitting that 
 check, I am ineligible for the receipt of 
 interest on this warrant after 
 the above date.'' 


  SEC. 2.  Section 17280.2 of the Government Code is amended to read:

   17280.2.  In the event a tax  , fee, or surcharge 
liability is paid  pursuant to Section 17280.1  , in whole
or in part, with a registered warrant which is redeemable at the time
the tax  , fee, or surcharge  liability is paid, interest
as specified in this article, shall be credited to the 
taxpayer's  account  o   f   the
taxpayer, feepayer, or surcharge payer  .