BILL NUMBER: SB 1419	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 1, 2012

INTRODUCED BY   Senator Correa

                        FEBRUARY 24, 2012

   An act to amend Section 13943.1 of the Government Code, relating
to the State Board of Equalization.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1419, as amended, Correa. State Board of Equalization:
discharge from accountability.
   Existing law authorizes the State Board of Control to discharge
any state agency or employee from accountability for the collection
of taxes, licenses, fees, or money owing to the state if the debt is
uncollectible or the amount of the debt does not justify the cost of
its collection. Existing law authorizes the Franchise Tax Board to
extinguish an outstanding liability for the payment of any tax, fee,
or other liability deemed uncollectible that is due and owing to the
state, if  certain   at least one of a list of
 conditions are met  , including, among others, that the
Franchise Tax Board has determined that the liable   person
has a permanent financial hardship  .
    This bill would  , instead, provide that in order to qualify
for those provisions at least 2 of a list of conditions must be met.
This bill would  authorize the State Board of Equalization to
extinguish an outstanding liability for the payment of any tax, fee,
or other liability deemed uncollectible that is due and owing to the
state, if certain conditions are met.  This bill would also
define financial hardship for purposes of those provisions. 
   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 13943.1 of the Government Code is amended to
read:
   13943.1.  (a) Except as provided in subdivision (b), a discharge
granted pursuant to this chapter to a state agency or employee does
not release any person from the payment of any tax, license, fee, or
other money that is due and owing to the state.
   (b) A discharge granted pursuant to this chapter to the Franchise
Tax Board or the State Board of Equalization shall release a person
from a liability for the payment of any tax, fee, or other liability
deemed uncollectible that is due and owing to the state and
extinguish that liability, if at least  one  
two  of the following conditions  is   are
 met:
   (1) The liability is for an amount less than five hundred dollars
($500).
   (2) The liable person has been deceased for more than four years
and there is no active probate with respect to that person.
   (3)  (A)    The Franchise Tax Board or the State
Board of Equalization, respectively, has determined that the liable
person has a permanent financial hardship. 
   (B) For purposes of this paragraph, "financial hardship" means
that a liable person is unable to pay any part of the outstanding
liability, and is unable to qualify for an installment payment
arrangement as provided for by Section 6832 or Section 19008 of the
Revenue and Taxation Code. The liable person shall submit any
information, including, but not limited to, information related to
reasonable business and personal expenses, requested by the Franchise
Tax Board or the State Board of Equalization, whichever is
applicable, for purposes of determining whether a financial hardship
exists. 
   (4) The liability has been unpaid for more than 30 years.