Bill Text: CA SB1036 | 2009-2010 | Regular Session | Amended
Bill Title: Tax administration: disclosure information: Franchise
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2010-06-28 - Set, first hearing. Failed passage in committee. Reconsideration granted. [SB1036 Detail]
Download: California-2009-SB1036-Amended.html
BILL NUMBER: SB 1036 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 20, 2010
AMENDED IN SENATE APRIL 6, 2010
INTRODUCED BY Senator Cedillo
(Coauthor: Assembly Member Huffman)
FEBRUARY 12, 2010
An act to amend Section 19551.1 of the Revenue and Taxation Code,
relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1036, as amended, Cedillo. Tax administration: disclosure
information: Franchise Tax Board and cities.
Existing law authorizes a city that has entered into a reciprocal
agreement, as defined, with the Franchise Tax Board to exchange tax
information, as provided, but limits the use of that information to
employees of the taxing authority of a city.
This bill would expand that limitation by authorizing any agent
designated by resolution of the city to examine all of the tax
information, provided that the resolution certifies that the
designated agent satisfies specified conditions.
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. Section 19551.1 of the Revenue and Taxation Code is
amended to read:
19551.1. (a) (1) The Franchise Tax Board may permit the tax
officials of any city to enter into a reciprocal agreement with the
Franchise Tax Board to obtain tax information from the Franchise Tax
Board, as specified in subdivision (b).
(2) For purposes of this section, "reciprocal agreement" means a
formal agreement to exchange information for tax administration
purposes between tax officials of a city and the Franchise Tax Board.
(b) The information furnished to tax officials of a city under
this section shall be limited as follows:
(1) The tax officials of a city are authorized to receive
information only with respect to taxpayers with an address as
reflected on the Franchise Tax Board's records within the
jurisdictional boundaries of the city who report income from a trade
or business to the Franchise Tax Board.
(2) The tax information that may be provided by the Franchise Tax
Board to a city is limited to a taxpayer's name, address, social
security or taxpayer identification number, and business activity
code.
(3) (A) Tax information provided to the taxing authority of a city
may not be furnished to, or used by, any person other than an
employee of that taxing authority or agent designated by resolution
of the city, to examine all of the tax information.
(B) The resolution shall certify that an agent designated by the
resolution, meets all of the following conditions:
(i) Has an existing contract with the city to examine those tax
records.
(ii) Is required by that contract to disclose information
contained in, or derived from, those tax records only to an employee
of the city or agent who is authorized by the resolution to examine
the information.
(iii) Is prohibited by that contract from performing consulting
services for private industry during the term of that contract.
(iv) Is prohibited by that contract from retaining the information
contained in, or derived from, those tax records, after that
contract has expired.
(v) Has executed a confidentiality statement, as provided by the
Franchise Tax Board. Each executed confidentiality statement shall be
retained by the city and made available to the Franchise Tax Board
during its disclosure review of the city or as otherwise requested by
the Franchise Tax Board. The confidentiality statement shall be
executed by each agent authorized under this paragraph.
(4) The information provided to the tax officials of the city by
the Franchise Tax Board under this section is subject to Section
19542, and may not be used for any purpose other than the city's tax
enforcement, or as otherwise authorized by state or federal law.
(5) Section 19542.1 applies to this section.
(c) The Franchise Tax Board may not provide any information
pursuant to this section until all of the following have occurred:
(1) An agreement has been executed between a city and the
Franchise Tax Board, that provides that an amount equal to all first
year costs necessary to furnish the city information pursuant to this
section shall be received by the Franchise Tax Board before the
Franchise Tax Board incurs any costs associated with the activity
permitted by this section. For purposes of this section, first year
costs include costs associated with, but not limited to, the
purchasing of equipment, the development of processes, and labor.
(2) An agreement has been executed between a city and the
Franchise Tax Board, that provides that the annual costs incurred by
the Franchise Tax Board, as a result of the activity permitted by
this section, shall be reimbursed by the city to the Franchise Tax
Board.
(3) Pursuant to the agreement described in paragraph (1), the
Franchise Tax Board has received an amount equal to the first year
costs.
(d) Any information, other than the type of tax information
specified in subdivision (b), may be requested by the tax officials
of a city from the Franchise Tax Board by affidavit. At the time a
tax official makes the request, he or she shall provide the person
whose information is the subject of the request, with a copy of the
affidavit and, upon request, make the information obtained available
to that person.
(e) This section does not invalidate any other law. This section
does not preclude any city or county from obtaining information about
individual taxpayers, including those taxpayers not subject to this
section, by any other means permitted by state or federal law.
(f) Nothing in this section shall be construed to affect any
obligations, rights, or remedies regarding personal information
provided under state or federal law.
(g) Notwithstanding subdivision (c), the Franchise Tax Board shall
waive a city's reimbursement of the Franchise Tax Board's cost if a
city enters into a reciprocal agreement as defined in paragraph (2)
of subdivision (a). The reciprocal agreement shall specify that each
party shall bear its own costs to furnish the data involved in the
exchange authorized by this section and Section 19551.5, and a city
shall be precluded from obtaining reimbursement as specified under
Section 5 of the act adding this subdivision.
(h) This section shall remain in effect through and including
December 31, 2013, and shall be repealed on January 1, 2014.
