BILL NUMBER: SB 1419	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 15, 2012
	AMENDED IN SENATE  MAY 1, 2012

INTRODUCED BY   Senator Correa

                        FEBRUARY 24, 2012

   An act to  amend Section 13943.1 of   add
Section 13945 to  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 at least one of a list of conditions  are 
 is  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   at least 2
of a list of  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 13945 is added to the 
 Government Code   , to read:  
   13945.  (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 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 two of the following conditions 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 State Board of Equalization 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 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 State Board of
Equalization for purposes of determining whether a financial hardship
exists.
   (4) The liability has been unpaid for more than 30 years. 

  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 two of the following
conditions 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.