California Senate Bill SB901 Amended / Bill

 BILL NUMBER: SB 901AMENDED BILL TEXT AMENDED IN ASSEMBLY AUGUST 29, 2012 AMENDED IN ASSEMBLY AUGUST 22, 2012 INTRODUCED BY Senator Steinberg (Principal coauthor: Senator Padilla) (Principal coauthor: Assembly Member Fuentes) FEBRUARY 18, 2011 An act to add and repeal Article 1.5 (commencing with Section 19535) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGEST SB 901, as amended, Steinberg. Taxation: undocumented immigrants. Existing law creates within state government the Department of Justice. Existing law provides that the department is under the direction and control of the Attorney General. Existing law requires the Franchise Tax Board to, among other things, administer personal and corporation income tax laws and certain other nontax programs, including the collection of specified delinquent debt. This bill would ,   until January 1, 2020,  establish a program  until January 1, 2020,  that would require the Department of Justice, until January 1, 2018, to report to the Franchise Tax Board information on a qualified person, defined as, among others, a person who is not eligible to receive a social security number, but who has filed a state income tax return with a valid individual taxpayer identification number. The bill would require the Franchise Tax Board to submit an annual report to the Legislature, until January 1, 2019, that details the tax receipts collected from qualified persons who participate in the program. The bill would provide that information collected under the program is confidential and not subject to public disclosure under the California Public Records Act, except for purposes authorized under the act. The bill would require the destruction of all records collected under the act, as specified. The California Constitution provides that the powers of state government are legislative, executive, and judicial. Existing law requires that the Governor see that the law is faithfully executed. Existing law provides that the Governor is the sole official organ of communication between the state and the government of any other state or of the United States. Existing federal law regulates immigration. This bill would require the Governor to request that the President of the United States direct the Department of Homeland Security, the United States Immigration and Customs Enforcement (ICE), and other relevant federal agencies to not expend resources during the term of the program to apprehend, detain, or remove any qualified person participating in the program, or to prosecute any individual employing a qualified person. 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. This act shall be known and may be cited as the California Opportunity and Prosperity Act. SEC. 2. Article 1.5 (commencing with Section 19535) is added to Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code, to read: Article 1.5. Undocumented Immigrants: State Income Taxes 19535. As used in this article: (a) "Qualified person" means a natural person who meets all of the following criteria: (1) Is not eligible to receive a social security number. (2) Filed a state income tax return with a valid individual taxpayer identification number for the most recent taxable year that a return was required to be made with respect to taxes imposed under Part 10 (commencing with Section 17001). (3) Is not employed by a public entity, including, but not limited to, the federal government, the State of California, any administrative subunit of the state, or any political subdivision of the state, including any city, city and county, county, district, or other local governmental agency or public agency authorized by law. (4) Declares that he or she is able to speak and understand the English language or is enrolled in, or has applied to enroll in, an English-as-a-second-language class. (5) Has not been convicted of a felony under the laws of  the United States,  the State of California  , or any other state  .  (6) Is not a member or suspected member of a terrorist organization and has not engaged and is not expected to engage in terrorist activities as those terms are defined in Section 1182(a)(3) (B) of Title 8 of the United States Code.   (7)   (6)  Is not a public charge within the meaning of Section 1182(a)(4) of Title 8 of the United States Code.  (8)   (7)  Declares that he or she has been a resident of California continuously since at least January 1, 2008.  (9)   (8)  Consents to a  fingerprint  background check and the disclosure of any information necessary to confirm eligibility for the program.  (10)   (9)  Consents to the disclosure of his or her name and federal individual taxpayer identification number to the Franchise Tax Board in accordance with Section 19539. (b) The language requirement in paragraph (4) of subdivision (a) shall not apply to any person who meets any of the following criteria: (1) Is unable because of physical or developmental disability or mental impairment to speak and understand English. (2) Is over 50 years of age and has been living in the United States for at least 20 years. (3) Is over 55 years of age and has been living in the United States for at least 15 years. (c) "Program" means the program created by this article. 19536. There is hereby established a voluntary program to be administered by the Department of Justice until January 1, 2018. A qualified person may participate in the program under the requirements set forth in this article. 19537. (a)  A   On or after January 1, 2014, a  written application for admission to the program by a qualified person shall be made in the form prescribed by the Department of Justice.  The application shall require that an applicant provide a photograph or other electronically transmissible image of the applicant.   (b) (1) The applicant shall electronically submit to the Department of Justice fingerprint images and related information in the form prescribed by the Department of Justice, for the purpose of obtaining information relating to the existence and content of both of the following:   (A) A record of state arrests and state convictions.   (B) State arrests for which the Department of Justice establishes that the person is free on bail or on his or her own recognizance pending trial or an appeal.   (2) The Department of Justice shall do all of the following for each person who submits fingerprint images and related information pursuant to paragraph (1):   (A) Obtain the information described in paragraph (1) of subdivision (l) of Section 11105 of the Penal Code.   (B) Obtain subsequent arrest notification, as provided pursuant to Section 11105.2 of the Penal Code.   (C) Charge a fee sufficient to cover the reasonable costs of processing the fingerprint images and related information.   (b)   (c)  (1) Upon receipt of an application for admission to the program and the fee provided for in Section 19538, the Department of Justice shall cause an investigation to be made to determine whether the applicant meets the definition of a qualified person. (2) If the Department of Justice determines that an applicant meets the definition of a qualified person, the Department of Justice shall admit the applicant into the program and shall provide the applicant with a confirmation of admission, which shall be valid for one year from the date of issue. (3) The Department of Justice shall renew a person's admission into the program on an annual basis upon payment of the renewal application fee provided for in Section 19538 and a demonstration that the person continues to meet the definition of a qualified person. 19538. The Department of Justice shall charge each applicant for the program a fee or annual renewal fee in an amount that allows the agency to recover all reasonable costs incurred by it in administering the program, including startup costs and costs associated with confirming eligibility for the program. 19539. On or before December 31,  2013   2014  , and on or before December 31 of each successive year, until January 1, 2018, the Department of Justice shall provide the Franchise Tax Board with the name and federal individual taxpayer identification number of each qualified person who was admitted into the program during that calendar year. The Franchise Tax Board shall use the information solely to prepare the report required by Section 19539.5 and shall not disclose the information for any purpose, unless expressly provided for in this article. 19539.5. On or before December 31,  2014   2015  , and on or before December 31 of each successive year, until January 1, 2019, the Franchise Tax Board shall submit a report to the Legislature that details the tax receipts collected  during   with respect to  the immediately preceding taxable year from qualified persons who participated in the program. The report submitted by the Franchise Tax Board pursuant to this section shall not contain any information that identifies any specific qualified person who participated in the program. 19540. (a) Any information disclosed by an applicant for, or qualified person in, the program shall be used solely to administer the program and shall not be used for any other purpose, unless expressly provided for in this article. (b) Any record containing any identifying information of an applicant for, or qualified person in, the program shall not be disclosed for any purpose, except as provided for in this article, to the extent that the information is necessary to enforce a liability that arises out of the Revenue and Taxation Code or the Family Code, or as otherwise required by state or federal law. If identifying information of an applicant for, or qualified person in, the program is disclosed for a purpose authorized by this subdivision, the recipient shall use the information solely for that purpose and shall not disseminate the information any further. (c) All identifying information of an applicant for, or qualified person in, the program shall be confidential and exempt from disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). 19540.5. Unless expressly authorized or required by federal law, this article shall not grant a qualified person any right or privilege in any other state and shall not be used for any purpose in any other state. 19540.6. The Department of Justice and the Franchise Tax Board may adopt regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to implement this article. 19540.7. On January 1, 2019, or as soon as practicable thereafter, all records relating to the program that contain any identifying information of applicants for, or qualified persons who participated in, the program shall be destroyed including, without limitation, any applications for the program and records provided to the Franchise Tax Board pursuant to Section 19540. This section shall not obligate the Franchise Tax Board to destroy any tax returns or other records that are necessary to conduct an audit or appeal pursuant to the Revenue and Taxation Code or to process any taxpayer claim for refund. 19540.8. This article shall remain in effect only until January 1, 2020, and as of that date is repealed. SEC. 3. (a) On or after July 1, 2013, the Governor is authorized and directed to submit, as a ministerial act on behalf of the state, a request to the President of the United States asking that the President direct the Department of Homeland Security, the United States Immigration and Customs Enforcement (ICE), and other relevant federal agencies not to expend resources during the term of the program established by Article 1.5 (commencing with Section 19535) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code  of   on  either of the following: (1) The apprehension, detention, or removal of a qualified person in the program or the qualified person's spouse or eligible dependent, unless the qualified person, spouse, or eligible dependent meets one of the priority enforcement criteria set forth in the then-existing ICE policy on civil immigration enforcement. (2) The prosecution of a person for employing a qualified person pursuant to Section 1324a of Title 8 of the United States Code. (b) On or after July 1, 2013, the Governor is further authorized and directed, as a ministerial act on behalf of the state, to request that the President provide any available waivers, exemptions, or authorizations necessary to provide a safe harbor for individuals and businesses from federal civil and criminal liability arising out of a qualified person's participation in the program or the employment of a qualified person during the term of the program. SEC. 4. Section 19540 of the Revenue and Taxation Code, as added by this act, imposes a limitation on the public's right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the people of California make the following finding to demonstrate the interest protected by this limitation and the need to protect that interest: In order to protect the confidentiality and safety of a person who participates in the program created by this act, it is necessary for any identifying information that relates to that person to be exempt from disclosure. SEC. 5. The provisions of this measure are severable. If any provision of this measure or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.