BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1352
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1352 (Logue)
          As Amended  August 30, 2011
          Majority vote
           
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          |ASSEMBLY:  |     |(May 19, 2011)  |SENATE: |34-0 |(August 31,    |
          |           |     |                |        |     |2011)          |
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                (vote not relevant)

          Original Committee Reference:   REV. & TAX.  

           SUMMARY  :  Provides that "designated vehicle license fee (VLF) 
          revenues" shall not be deemed VLF revenues as defined in 
          subdivision (a) of Section 15 of Article XI of the California 
          Constitution or the VLF Law, for purposes of a specified Nevada 
          County ordinance.      

           The Senate amendments  delete the Assembly version of this bill, 
          and instead:

          1)Provide that "designated VLF revenues" shall not be deemed VLF 
            revenues as defined in subdivision (a) of Section 15 of 
            Article XI of the California Constitution or the VLF Law for 
            purposes of a Nevada County ordinance that requires that any 
            revenues derived under the VLF Law be expended for any 
            specified purpose.  

          2)Define "designated VLF revenues" to mean vehicle license 
            revenues that are collected under the VLF Law and are required 
            to be deposited into the Local Law Enforcement Services 
            Account in the Local Revenue Fund 2011.

          3)Contain legislative findings noting that a special law is 
            necessary because of the unique circumstances relating to a 
            local ordinance governing the expenditure of VLF funds 
            received by Nevada County.    

           EXISTING LAW  :

          1)Establishes an annual license fee for any vehicle subject to 
            registration in this state in the amount of 0.65% of the 
            vehicle's market value, as provided.  









                                                                  AB 1352
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          2)Requires a portion of VLF revenues to be deposited into the 
            Local Law Enforcement Services Account in the Local Revenue 
            Fund 2011, as provided.  

           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Provided that if the State Board of Equalization (BOE) finds 
            in its discretion that a person's failure to make a timely 
            payment was due to "extraordinary circumstances" and that it 
            is inequitable to compute interest in accordance with the 
            Sales and Use Tax (SUT) Law, then the BOE may relieve all or 
            part of the interest imposed on that payment if all of the 
            following occur:

             a)   The person was granted relief from all penalties that 
               applied to that payment;

             b)   The person has made the payment on which the interest 
               was imposed.  (In the case of interest attributable to an 
               unpaid liability for which the person has filed a petition 
               for redetermination, the person must make the underlying 
               payment within 30 days of being served with a final BOE 
               decision on that petition);

             c)   The person files a request for an oral hearing before 
               the BOE; and, 

             d)   The person files with the BOE a statement under penalty 
               of perjury setting forth the facts upon which the claim for 
               relief is based, along with any other information the BOE 
               requires. 

          2)Limited the aggregate amount of relief granted to all persons 
            to $50,000 in a 12-month period but specified that the $50,000 
            limitation does not apply to relief of interest granted by the 
            BOE pursuant to Revenue and Taxation Code Section 6593, 
            related to disasters. 

          3)Defined "extraordinary circumstances" as any of the following:

             a)   The occurrence of a death or medical incapacity of the 
               person, or person's next of kin, that caused the person's 
               failure to make a timely payment;

             b)   The occurrence of an emergency, as defined in Government 








                                                                  AB 1352
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               Code Section 8558, that caused the person's failure to make 
               a timely payment; or,

             c)   Criminal misconduct by a person, other than the person 
               that failed to make a timely payment, that caused the 
               person's failure to make a timely payment. 

          4)Provided that payment includes any of the following:

             a)   A payment of tax;

             b)   A prepayment of tax on which interest is imposed under 
               the SUT Law; or, 

             c)   A payment of an amount of tax required to be collected 
               and paid to the state.  

          5)Provided that any relief granted may be rescinded, and all 
            interest reestablished, without regard to any statute of 
            limitations, if a person fails to comply with the requirement 
            to make the underlying payment.  

          6)Provided that no reimbursement is required under the 
            California Constitution because the only costs that may be 
            incurred by a local agency will be incurred because this act 
            creates a new crime or infraction.  

           FISCAL EFFECT  :  Unknown   

           COMMENTS  :  This bill was substantially amended in the Senate and 
          the Assembly-approved provisions of this bill were deleted.  
          This bill, as amended in the Senate, is inconsistent with 
          Assembly actions.  
           

          Analysis Prepared by  :    M. David Ruff / REV. & TAX. / (916) 
          319-2098 
                                                               FN: 0002493