BILL NUMBER: SB 884	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Calderon

                        FEBRUARY 18, 2011

   An act relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 884, as introduced, Calderon. Tax administration: Franchise Tax
Board and the State Board of Equalization: sale of tax liabilities.
   The Personal Income Tax Law and the Corporation Tax Law impose
taxes on, or measured by, income. The Franchise Tax Board administers
the Personal Income Tax Law and the Corporation Tax Law. Existing
law requires the Franchise Tax Board to administer specified taxes
and collect those taxes from taxpayers.
   Existing law requires the State Board of Equalization to
administer specified taxes, including sales and use taxes, fuel
taxes, and alcoholic beverage taxes, and to collect those taxes from
taxpayers.
   This bill would declare the intent of the Legislature to enact
legislation authorizing the boards to make a sale to private
investors of specified tax liabilities that are subject to an
automatic stay on collection of taxes pursuant to a bankruptcy
proceeding, and requiring the resulting revenues to be transmitted to
the General Fund, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  It is the intent of the Legislature to enact
legislation that does both of the following:
   (a) Authorizes the Franchise Tax Board and the State Board of
Equalization to sell to private investors those tax liabilities under
the jurisdiction of the boards that are subject to an automatic stay
on collection of taxes pursuant to a bankruptcy proceeding under
Title 11 of the United States Code.
   (b) Requires the revenue from the sale of the tax liabilities
described in subdivision (a) to be immediately transmitted to the
General Fund upon receipt.