California Senate Bill SB1419 Latest Draft

 BILL NUMBER: SB 1419AMENDED 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.