Bill Text: CA AB2676 | 2009-2010 | Regular Session | Enrolled

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Bill Title: State Board of Equalization: administration.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Vetoed) 2010-09-29 - Vetoed by Governor. [AB2676 Detail]

Download: California-2009-AB2676-Enrolled.html

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BILL NUMBER: AB 2676	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 12, 2010
	PASSED THE ASSEMBLY  JUNE 1, 2010
	AMENDED IN ASSEMBLY  APRIL 27, 2010
	AMENDED IN ASSEMBLY  APRIL 6, 2010

INTRODUCED BY   Assembly Member Ma

                        FEBRUARY 19, 2010

   An act to amend Sections 6453 and 6829 of, to add Sections 7984,
9034, 43448.6, 45609.6, 46465, 55210, and 60494 to, and to repeal and
add Sections 6452.1, 6487.3, and 18510 of, the Revenue and Taxation
Code, and to amend Section 1088.5 of the Unemployment Insurance Code,
relating to taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2676, Ma. State Board of Equalization: administration.
   The Sales and Use Tax Law imposes a sales tax on retailers
measured by the gross receipts from the sale of tangible personal
property sold at retail in this state, or a use tax on the storage,
use, or other consumption in this state of tangible personal property
purchased from a retailer for storage, use, or other consumption in
this state, measured by sales price. Every person storing, using, or
otherwise consuming in this state tangible personal property
purchased from a retailer is liable for the use tax and must pay the
tax to the State Board of Equalization, unless he or she has paid the
tax to a retailer registered to collect the use tax.
   Existing law requires retailers, as specified, to register with,
and to obtain a seller's permit or certification of registration-use
tax from, the State Board of Equalization. For taxable years
beginning on or after January 1, 2003, and on December 31, 2009,
persons not otherwise registered with the board may make an
irrevocable election to report qualified use tax, as defined, on that
person's income tax return. The Franchise Tax Board is required to
revise the income tax returns to allow a person to report and remit
qualified use taxes to it and to remit the qualified use taxes
collected to the board.
   This bill would authorize an eligible person to make an
irrevocable election to report qualified use tax, as defined, on that
person's income tax return, for taxable years beginning on and after
January 1, 2010, and would require the Franchise Tax Board to allow
a person to report and remit qualified use taxes to it and to remit
the qualified use taxes collected to the board.
   The Sales and Use Tax Law imposes personal liability for unpaid
taxes, interest, and penalties on specified responsible persons who
willfully fail to pay these amounts, upon the termination,
dissolution, or abandonment of business of the corporation or other
business entity, with the sum due to be collected by deficiency
determination and collection in the manner provided under this law.
   This bill would also impose personal liability under the Sales and
Use Tax Law for unpaid taxes, interest, and penalties on specified
responsible persons who fail to pay these amounts during the time the
rights, powers, and responsibilities of a closely held corporation
or closely held limited liability company are suspended, as
specified.
   This bill would additionally impose responsible person liability
for unpaid taxes or fees, interest, and penalties on specified
responsible persons who willfully fail to pay these amounts, upon the
termination, dissolution, or abandonment of business of the
corporation or other business entity, or who fail to pay these
amounts during the time the rights, powers, and responsibilities of a
closely held corporation or closely held limited liability company
are suspended, as specified, under the Motor Vehicle Fuel Tax Law,
Use Fuel Tax Law, Hazardous Substances Tax Law, Integrated Waste
Management Fee Law, Oil Spill Response, Prevention, and
Administration Fees Law, Fee Collection Procedures Law, and Diesel
Fuel Tax Law.
   Existing law provides for the payment of unemployment compensation
benefits to eligible unemployed individuals, and requires the
Employment Development Department to implement and administer the
unemployment insurance system in the state. Existing law requires
each employer to file with the department a report of wages paid to
his or her workers and to furnish to each employee a written
statement showing, among other things, the total amount of wages, and
total wages subject to personal income tax, as provided. Existing
law also requires each employer to file with the department specified
information on new employees, and authorizes the use of that
information for specified purposes including, among other things,
providing employer or employee information to the Franchise Tax Board
for the purpose of tax enforcement.
   This bill would also authorize the Employment Development
Department to provide employer or employee information to the State
Board of Equalization with information for tax or fee enforcement.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6452.1 of the Revenue and Taxation Code is
repealed.
  SEC. 2.  Section 6452.1 is added to the Revenue and Taxation Code,
to read:
   6452.1.  (a) Notwithstanding Section 6451, every person that
purchases tangible personal property, the storage, use, or other
consumption of which is subject to qualified use tax, as defined in
subdivision (b), that is otherwise required to report and remit that
tax pursuant to this part, may elect to report and remit qualified
use tax on an acceptable tax return.
   (b) (1) A person that reports qualified use tax on an acceptable
tax return is deemed to have made the election authorized by this
section.
   (2) (A) In the case of a married individual filing a separate
California personal income tax return, an election may be made to
report either one-half of the qualified use tax or the entire
qualified use tax on his or her separate California personal income
tax return.
   (B) If an individual elects to report one-half of the qualified
use tax, that election will not be binding with respect to the
remaining one-half of the qualified use tax owed by that individual
and that individual's spouse.
   (c) An election to report qualified use tax on an acceptable tax
return shall be irrevocable. An acceptable tax return that contains
use tax shall be considered a tax return for purposes of this part.
   (d) For purposes of this section:
   (1) "Acceptable tax return" means a timely filed original return
that is filed pursuant to Article 1 (commencing with Section 18501),
Article 2 (commencing with Section 18601), Section 18633, Section
18633.5 of Chapter 2 (commencing with Section 18501) of Part 10.2, or
Article 3 (commencing with Section 23771) of Chapter 4 of Part 11.
   (2) (A) Except as provided in subparagraph (B), "qualified use tax"
means the use tax imposed under this part, Section 35 of Article
XIII of the California Constitution, the Bradley-Burns Uniform Local
Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)), or
the Transactions and Use Tax Law (Part 1.6 (commencing with Section
7251)) that has not been paid to a retailer holding a seller's permit
or certificate of registration-use tax.
   (B) "Qualified use tax" does not include:
   (i) Use tax that applies to a mobilehome or a commercial coach
that is required to be registered annually pursuant to the Health and
Safety Code or use tax that applies to a vehicle subject to
identification under Division 16.5 (commencing with Section 38000) of
the Vehicle Code, or to a vehicle that qualifies under the permanent
trailer identification plate program pursuant to subdivision (a) of
Section 5014.1 of the Vehicle Code.
   (ii) Use tax imposed on a vehicle, vessel, or aircraft.
   (iii) Use tax imposed on a lessee of tangible personal property.
   (e) If a person elects to report qualified use tax on an
acceptable tax return, that person shall comply with all of the
following:
   (1) The qualified use tax shall be reported on and remitted with
an acceptable tax return.
   (2) The qualified use tax shall be reported on and remitted with
an acceptable tax return that is required to be filed for the taxable
year in which the liability for the qualified use tax was incurred.
   (f) (1) The penalties and interest imposed under this part, the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200)), or the Transactions and Use Tax Law
(Part 1.6 (commencing with Section 7251)) shall apply to use tax
reported as qualified use tax on an acceptable return.
   (2) Any claims for refunds or credits of any use tax reported as
qualified use tax on an acceptable tax return shall be made in
accordance with Chapter 7 (commencing with Section 6901) of this
part.
   (3) Qualified use tax shall be considered to be timely reported
and remitted for purposes of this part, the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section
7200)), and the Transactions and Use Tax Law (Part 1.6 (commencing
with Section 7251)), if the qualified use tax is timely reported on
and remitted with an acceptable tax return in accordance with the
provisions of this section.
   (g) Notwithstanding a person's election to remit and to report
qualified use tax on an acceptable tax return, the State Board of
Equalization is not precluded from making any determinations for
understatements of qualified use tax against that person in
accordance with Part 5 (commencing with Section 6451).
   (h) Any payments and credits shown on the return, together with
any other credits associated with that person's account, of a person
that elects to report qualified use tax on an acceptable tax return
shall be applied in the following order:
   (1) Taxes imposed under Part 10 (commencing with Section 17001) or
Part 11 (commencing with Section 23001), including penalties and
interest, if any, imposed under Part 10.2 (commencing with Section
18041).
   (2) Qualified use tax reported on the acceptable tax return in
accordance with this section.
   (i) (1) This section does not apply to a person who is otherwise
required to hold a seller's permit or to register with the State
Board of Equalization pursuant to Part 1 (commencing with Section
6001) of this division.
   (2) This section applies to purchases of tangible personal
property made on or after January 1, 2010, in taxable years beginning
on or after January 1, 2010.
  SEC. 3.  Section 6453 of the Revenue and Taxation Code is amended
to read:
   6453.  For purposes of the sales tax, the return shall show the
gross receipts of the seller during the preceding reporting period
and, in the case of a person who is liable for the sales tax and is
not a seller, the gross receipts of such person for the period in
which the liability was incurred. For purposes of the use tax, in
case of a return filed by a retailer, the return shall show the total
sales price of the property sold by him or her, the storage, use, or
consumption of which property became subject to the use tax during
the preceding reporting period; in case of a return filed by a
purchaser, except as provided in Section 6452.1, the return shall
show the total sales price of the property purchased by him or her,
the storage, use, or consumption of which became subject to the use
tax during the preceding reporting period.
   The return shall also show the amount of the taxes for the period
covered by the return and any other information which the board deems
necessary for the proper administration of this part.
  SEC. 4.  Section 6487.3 of the Revenue and Taxation Code is
repealed.
  SEC. 5.  Section 6487.3 is added to the Revenue and Taxation Code,
to read:
   6487.3.  (a) (1) For persons that elect to report qualified use
tax in accordance with Section 6452.1, except in the case of fraud,
intent to avoid this part or authorized rules and regulations issued
by the board, or the gross understatement of qualified use taxes,
every notice of a deficiency determination with respect to the
qualified use tax shall be mailed within three years after the last
day for which an acceptable tax return is due or filed, whichever
occurs later.
   (2) In the case of a gross understatement of qualified use tax,
every notice of a deficiency determination with respect to the
qualified use tax shall be mailed within six years after the last day
for which an acceptable tax return is due or filed, whichever occurs
later.
   (3) For purposes of this subdivision a "gross understatement of
qualified used tax" is a deficiency that is in excess of 25 percent
of the amount of qualified use tax reported on a person's acceptable
tax return. In the case of married individuals filing separate
California personal income tax returns, the total amount of qualified
use tax reported will be considered in determining whether there is
a gross understatement of qualified use tax.
   (4) For purposes of this section "acceptable tax return" means a
timely filed original return that is filed pursuant to Article 1
(commencing with Section 18501), Article 2 (commencing with Section
18601), Section 18633, Section 18633.5 of Chapter 2 (commencing with
Section 18501) of Part 10.2, or Article 3 (commencing with Section
23771) of Chapter 4 of Part 11.
   (b) This section applies to reporting of purchases of tangible
personal property made on or after January 1, 2010, in taxable years
beginning on or after January 1, 2010.
  SEC. 6.  Section 6829 of the Revenue and Taxation Code is amended
to read:
   6829.  (a) Upon the termination, dissolution, or abandonment of
the business of a corporation, partnership, limited partnership,
limited liability partnership, or limited liability company, any
officer, member, manager, partner, or other person having control or
supervision of, or who is charged with the responsibility for the
filing of returns or the payment of tax, or who is under a duty to
act for the corporation, partnership, limited partnership, limited
liability partnership, or limited liability company in complying with
any requirement of this part, shall, notwithstanding any provision
in the Corporations Code to the contrary, be personally liable for
any unpaid taxes and interest and penalties on those taxes, if the
officer, member, manager, partner, or other person willfully fails to
pay or to cause to be paid any taxes due from the corporation,
partnership, limited partnership, limited liability partnership, or
limited liability company pursuant to this part.
   (b) The officer, member, manager, partner, or other person shall
be liable only for taxes that became due during the period he or she
had the control, supervision, responsibility, or duty to act for the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company described in subdivision
(a), plus interest and penalties on those taxes.
   (c) Personal liability may be imposed pursuant to this section,
only if the board can establish that the corporation, partnership,
limited partnership, limited liability partnership, or limited
liability company had included tax reimbursement in the selling price
of, or added tax reimbursement to the selling price of, tangible
personal property sold in the conduct of its business, or when it can
be established that the corporation, partnership, limited
partnership, limited liability partnership, or limited liability
company consumed tangible personal property and failed to pay the tax
to the seller or has included use tax on the billing and collected
the use tax or has issued a receipt for the use tax and failed to
report and pay use tax.
   (d) (1) Upon suspension of a closely held corporation or closely
held limited liability company, a corporate officer, shareholder, or
member with control over operations or management of the closely held
corporation or closely held limited liability company during a time
in which the corporation's or limited liability company's powers,
rights, and privileges are suspended or any responsible person who
fails to pay or to cause to be paid any taxes due from the closely
held corporation or closely held limited liability company during a
time in which the corporation's or limited liability company's
powers, rights, and privileges are suspended shall, notwithstanding
any provision in the Corporations Code to the contrary, be personally
liable under the circumstances set forth below for any unpaid sales
or use tax liability of that suspended corporation or limited
liability company incurred during the period of that suspension. The
corporate officer, shareholder, member, or responsible person shall
be liable for the unpaid tax, and interest and penalties on those
taxes not paid, regardless of the basis for the suspension of the
corporation's or limited liability company's powers, rights, and
privileges.
   (2) Notwithstanding paragraph (1), if the closely held corporation
or closely held limited liability company can establish that it has
taken all actions necessary to qualify for revival within 60 days
from the date the suspension was imposed, no corporate officer,
shareholder, member, or responsible person shall be held to be
personally liable for any unpaid tax, interest, or penalty incurred
by the corporation or limited liability company during that period of
suspension.
   (e) Personal liability under subdivision (d) applies only when the
board establishes that, during the period of suspension, the closely
held corporation or closely held limited liability company did any
of the following:
   (1) Sold tangible personal property in the conduct of its business
and collected sales tax reimbursement on the selling price (whether
separately itemized or included in the selling price) and failed to
remit such tax when due.
   (2) Collected use tax and failed to report and pay the tax.
   (3) Consumed tangible personal property and failed to pay the
applicable tax to the seller or the board.
   (f) For purposes of subdivisions (d) and (e), all of the following
definitions shall apply:
   (1) "Closely held corporation" means a corporation in which
ownership is concentrated in one individual, one family, or a small
number of individuals and the majority stockholders manage the
business or have delegated or assigned the management to the
corporate officers.
   (2) "Closely held limited liability company" means a limited
liability company in which ownership is concentrated in one
individual, one family, or a small number of individuals and the
majority members manage the business or have delegated or assigned
the management to the company officers.
   (3) "Control over operations or management" means the power to
manage or affect day-to-day operations of the business. For the
purposes of subdivisions (d) and (e), it is rebuttably presumed that
a corporate or company officer has control over operations and
management of the closely held corporation or closely held limited
liability company, respectively.
   (4) (i) "Period of suspension" means that period of time,
beginning on the date the suspension is imposed, during which a
closely held corporation or closely held limited liability company
was suspended for any reason.
   (ii) Notwithstanding clause (i), "period of suspension" does not
mean a period of time of 60 consecutive days or less, beginning on
the day the suspension was imposed, during which a closely held
corporation or closely held limited liability company was suspended,
but only if the corporation or limited liability company has taken
all actions necessary to qualify for revival on or before the 60th
day.
   (5) "Responsible person" means any officer, shareholder, or member
who is charged with the responsibility for the filing of returns or
the payment of tax or who has a duty to act for the closely held
corporation or closely held limited liability company in complying
with any provision of this part, and who derives a direct financial
benefit from the failure to pay the tax liability.
   (g) A suspended corporation or limited liability company shall
remain liable for the unpaid tax, interest, and penalties incurred
during the period in which its corporate or limited liability company
powers, rights, and privileges were suspended without regard to any
personal liability determined under subdivisions (d), (e), and (f).
Payments made pursuant to subdivisions (d), (e), and (f) shall be
applied to the liability of the corporation or limited liability
company.
   (h) For purposes of subdivisions (a), (b), and (c), "willfully
fails to pay or to cause to be paid" means that the failure was the
result of an intentional, conscious, and voluntary course of action.
   (i) Except as provided in subdivision (j), the sum due for the
liability under this section may be collected by determination and
collection in the manner provided in Chapter 5 (commencing with
Section 6451) and Chapter 6 (commencing with Section 6701).
   (j) A notice of deficiency determination under this section shall
be mailed within three years after the last day of the calendar month
following the quarterly period in which the board obtains actual
knowledge, through its audit or compliance activities, or by written
communication by the business or its representative, of the
termination, dissolution, or abandonment of the business of the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company, or of the suspension of
the closely held corporation or closely held limited liability
company, or, within eight years after the last day of the calendar
month following the quarterly period in which the corporation,
partnership, limited partnership, limited liability partnership, or
limited liability company business was terminated, dissolved, or
abandoned or in which the closely held corporation or closely held
limited liability company was suspended, whichever period expires
earlier. If a business or its representative files a notice of
termination, dissolution, or abandonment of its business with a state
or local agency other than the board, or if the Secretary of State
or the Franchise Tax Board notifies a closely held corporation or
closely held limited liability company that it is suspended, this
filing shall not constitute actual knowledge by the board under this
section.
   (k) Notwithstanding subdivision (j), when the board mails
acknowledgment to a closely held corporation or closely held limited
liability company that the closely held corporation or closely held
limited liability company has been suspended and the acknowledgment
is mailed within three years of the date on which the board obtained
actual knowledge as described in subdivision (j) of the suspension of
the closely held corporation or closely held limited liability
company, a notice of deficiency determination under this section
shall be mailed, at the latest, within three years after the last day
of the calendar month following the quarterly period following the
revival of that closely held corporation or closely held limited
liability company.
  SEC. 7.  Section 7984 is added to the Revenue and Taxation Code, to
read:
   7984.  (a) Upon the termination, dissolution, or abandonment of
the business of a corporation, partnership, limited partnership,
limited liability partnership, or limited liability company, any
officer, member, manager, partner, or other person having control or
supervision of, or who is charged with the responsibility for the
filing of returns or the payment of tax under this part, or who is
under a duty to act for the corporation, partnership, limited
partnership, limited liability partnership, or limited liability
company in complying with any requirement of this part, shall,
notwithstanding any provision in the Corporations Code to the
contrary, be personally liable for any unpaid taxes and interest and
penalties on those taxes, if the officer, member, manager, partner,
or other person willfully fails to pay or to cause to be paid any
taxes due from the corporation, partnership, limited partnership,
limited liability partnership, or limited liability company pursuant
to this part.
   (b) The officer, member, manager, partner, or other person shall
be liable only for taxes that became due during the period he or she
had the control, supervision, responsibility, or duty to act for the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company described in subdivision
(a), plus interest and penalties on those taxes.
   (c) Personal liability may be imposed pursuant to this section,
only if the board can establish that the corporation, partnership,
limited partnership, limited liability partnership, or limited
liability company had included the tax in the selling price of, or
added the tax to the selling price of, motor vehicle fuel or aircraft
jet fuel sold in the conduct of its business.
   (d) (1) Upon suspension of a closely held corporation or closely
held limited liability company, a corporate officer, shareholder, or
member with control over operations or management of the closely held
corporation or closely held limited liability company during a time
in which the corporation's or limited liability company's powers,
rights, and privileges are suspended or any responsible person who
fails to pay or to cause to be paid any taxes due from the closely
held corporation or closely held limited liability company during a
time in which the corporation's or limited liability company's
powers, rights, and privileges are suspended shall, notwithstanding
any provision in the Corporations Code to the contrary, be personally
liable under the circumstances set forth below for any unpaid tax
liability of that suspended corporation or limited liability company
incurred during the period of that suspension. The corporate officer,
shareholder, member, or responsible person shall be liable for the
unpaid tax, and interest and penalties on those taxes not paid,
regardless of the basis for the suspension of the corporation's or
limited liability company's powers, rights, and privileges.
   (2) Notwithstanding paragraph (1), if the closely held corporation
or closely held limited liability company can establish that it has
taken all actions necessary to qualify for revival within 60 days
from the date the suspension was imposed, no corporate officer,
shareholder, member, or responsible person shall be held to be
personally liable for any unpaid tax, interest, or penalty incurred
by the corporation or limited liability company during that period of
suspension.
   (e) Personal liability under subdivision (d) applies only when the
board establishes that, during the period of suspension, the closely
held corporation or closely held limited liability company sold
motor vehicle fuel or aircraft jet fuel in the conduct of its
business and collected tax on the selling price (whether separately
itemized or included in the selling price) and failed to remit such
tax when due.
   (f) For purposes of subdivisions (d) and (e), all of the following
definitions shall apply:
   (1) "Closely held corporation" means a corporation in which
ownership is concentrated in one individual, one family, or a small
number of individuals and the majority stockholders manage the
business or have delegated or assigned the management to the
corporate officers.
   (2) "Closely held limited liability company" means a limited
liability company in which ownership is concentrated in one
individual, one family, or a small number of individuals and the
majority members manage the business or have delegated or assigned
the management to the company officers.
   (3) "Control over operations or management" means the power to
manage or affect day-to-day operations of the business. For the
purposes of subdivisions (d) and (e), it is rebuttably presumed that
a corporate or company officer has control over operations and
management of the closely held corporation or closely held limited
liability company, respectively.
   (4) (i) "Period of suspension" means that period of time,
beginning on the date the suspension is imposed, during which a
closely held corporation or closely held limited liability company
was suspended for any reason.
   (ii) Notwithstanding clause (i), "period of suspension" does not
mean a period of time of 60 consecutive days or less, beginning on
the day the suspension was imposed, during which a closely held
corporation or closely held limited liability company was suspended,
but only if the corporation or limited liability company has taken
all actions necessary to qualify for revival on or before the 60th
day.
   (5) "Responsible person" means any officer, shareholder, or member
who is charged with the responsibility for the filing of returns or
the payment of tax or who has a duty to act for the closely held
corporation or closely held limited liability company in complying
with any provision of this part, and who derives a direct financial
benefit from the failure to pay the tax liability.
   (g) A suspended corporation or limited liability company shall
remain liable for the unpaid tax, interest, and penalties incurred
during the period in which its corporate or limited liability company
powers, rights, and privileges were suspended without regard to any
personal liability determined under subdivisions (d), (e), and (f).
Payments made pursuant to subdivisions (d), (e), and (f) shall be
applied to the liability of the corporation or limited liability
company.
   (h) For purposes of subdivisions (a), (b), and (c), "willfully
fails to pay or to cause to be paid" means that the failure was the
result of an intentional, conscious, and voluntary course of action.
   (i) Except as provided in subdivision (j), the sum due for the
liability under this section may be collected by determination and
collection in the manner provided in Chapter 5 (commencing with
Section 7651) and Chapter 6 (commencing with Section 7851).
   (j) A notice of deficiency determination under this section shall
be mailed within three years after the last day of the calendar month
following the quarterly period in which the board obtains actual
knowledge, through its audit or compliance activities, or by written
communication by the business or its representative, of the
termination, dissolution, or abandonment of the business of the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company, or of the suspension of
the closely held corporation or closely held limited liability
company, or, within eight years after the last day of the calendar
month following the quarterly period in which the corporation,
partnership, limited partnership, limited liability partnership, or
limited liability company business was terminated, dissolved, or
abandoned or in which the closely held corporation or closely held
limited liability company was suspended, whichever period expires
earlier. If a business or its representative files a notice of
termination, dissolution, or abandonment of its business with a state
or local agency other than the board, or if the Secretary of State
or the Franchise Tax Board notifies a closely held corporation or
closely held limited liability company that it is suspended, such
filing or notice shall not constitute actual knowledge by the board
under this section.
   (k) Notwithstanding subdivision (j), when the board mails
acknowledgment to a closely held corporation or closely held limited
liability company that the closely held corporation or closely held
limited liability company has been suspended and the acknowledgment
is mailed within three years of the date on which the board obtained
actual knowledge as described in subdivision (j) of the suspension of
the closely held corporation or closely held
                   limited liability company, a notice of deficiency
determination under this section shall be mailed, at the latest,
within three years after the last day of the calendar month following
the quarterly period following the revival of that closely held
corporation or closely held limited liability company.
  SEC. 8.  Section 9034 is added to the Revenue and Taxation Code, to
read:
   9034.  (a) Upon the termination, dissolution, or abandonment of
the business of a corporation, partnership, limited partnership,
limited liability partnership, or limited liability company, any
officer, member, manager, partner, or other person having control or
supervision of, or who is charged with the responsibility for the
filing of returns or the payment of tax under this part, or who is
under a duty to act for the corporation, partnership, limited
partnership, limited liability partnership, or limited liability
company in complying with any requirement of this part, shall,
notwithstanding any provision in the Corporations Code to the
contrary, be personally liable for any unpaid taxes and interest and
penalties on those taxes, if the officer, member, manager, partner,
or other person willfully fails to pay or to cause to be paid any
taxes due from the corporation, partnership, limited partnership,
limited liability partnership, or limited liability company pursuant
to this part.
   (b) The officer, member, manager, partner, or other person shall
be liable only for taxes that became due during the period he or she
had the control, supervision, responsibility, or duty to act for the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company described in subdivision
(a), plus interest and penalties on those taxes.
   (c) Personal liability may be imposed pursuant to this section,
only if the board can establish that the corporation, partnership,
limited partnership, limited liability partnership, or limited
liability company had included the tax in the selling price of, or
added the tax to the selling price of, fuel, as defined in Section
8604, sold in the conduct of its business.
   (d) (1) Upon suspension of a closely held corporation or closely
held limited liability company, a corporate officer, shareholder, or
member with control over operations or management of the closely held
corporation or closely held limited liability company during a time
in which the corporation's or limited liability company's powers,
rights, and privileges are suspended or any responsible person who
fails to pay or to cause to be paid any taxes due from the closely
held corporation or closely held limited liability company during a
time in which the corporation's or limited liability company's
powers, rights, and privileges are suspended shall, notwithstanding
any provision in the Corporations Code to the contrary, be personally
liable under the circumstances set forth below for any unpaid tax
liability of that suspended corporation or limited liability company
incurred during the period of that suspension. The corporate officer,
shareholder, member, or responsible person shall be liable for the
unpaid tax, and interest and penalties on those taxes not paid,
regardless of the basis for the suspension of the corporation's or
limited liability company's powers, rights, and privileges.
   (2) Notwithstanding paragraph (1), if the closely held corporation
or closely held limited liability company can establish that it has
taken all actions necessary to qualify for revival within 60 days
from the date the suspension was imposed, no corporate officer,
shareholder, member, or responsible person shall be held to be
personally liable for any unpaid tax, interest, or penalty incurred
by the corporation or limited liability company during that period of
suspension.
   (e) Personal liability under subdivision (d) applies only when the
board establishes that, during the period of suspension, the closely
held corporation or closely held limited liability company sold
fuel, as defined in Section 8604, in the conduct of its business and
collected tax on the selling price (whether separately itemized or
included in the selling price) and failed to remit such tax when due.

   (f) For purposes of subdivisions (d) and (e), all of the following
definitions shall apply:
   (1) "Closely held corporation" means a corporation in which
ownership is concentrated in one individual, one family, or a small
number of individuals and the majority stockholders manage the
business or have delegated or assigned the management to the
corporate officers.
   (2) "Closely held limited liability company" means a limited
liability company in which ownership is concentrated in one
individual, one family, or a small number of individuals and the
majority members manage the business or have delegated or assigned
the management to the company officers.
   (3) "Control over operations or management" means the power to
manage or affect day-to-day operations of the business. For the
purposes of subdivisions (d) and (e), it is rebuttably presumed that
a corporate or company officer has control over operations and
management of the closely held corporation or closely held limited
liability company, respectively.
   (4) (i) "Period of suspension" means that period of time,
beginning on the date the suspension is imposed, during which a
closely held corporation or closely held limited liability company
was suspended for any reason.
   (ii) Notwithstanding clause (i), "period of suspension" does not
mean a period of time of 60 consecutive days or less, beginning on
the day the suspension was imposed, during which a closely held
corporation or closely held limited liability company was suspended,
but only if the corporation or limited liability company has taken
all actions necessary to qualify for revival on or before the 60th
day.
   (5) "Responsible person" means any officer, shareholder, or member
who is charged with the responsibility for the filing of returns or
the payment of tax or who has a duty to act for the closely held
corporation or closely held limited liability company in complying
with any provision of this part, and who derives a direct financial
benefit from the failure to pay the tax liability.
   (g) A suspended corporation or limited liability company shall
remain liable for the unpaid tax, interest, and penalties incurred
during the period in which its corporate or limited liability company
powers, rights, and privileges were suspended without regard to any
personal liability determined under subdivisions (d), (e), and (f).
Payments made pursuant to subdivisions (d), (e), and (f) shall be
applied to the liability of the corporation or limited liability
company.
   (h) For purposes of subdivisions (a), (b), and (c), "willfully
fails to pay or to cause to be paid" means that the failure was the
result of an intentional, conscious, and voluntary course of action.
   (i) Except as provided in subdivision (j), the sum due for the
liability under this section may be collected by determination and
collection in the manner provided in Chapter 4 (commencing with
Section 8751) and Chapter 5 (commencing with Section 8951).
   (j) A notice of deficiency determination under this section shall
be mailed within three years after the last day of the calendar month
following the quarterly period in which the board obtains actual
knowledge, through its audit or compliance activities, or by written
communication by the business or its representative, of the
termination, dissolution, or abandonment of the business of the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company, or of the suspension of
the closely held corporation or closely held limited liability
company, or, within eight years after the last day of the calendar
month following the quarterly period in which the corporation,
partnership, limited partnership, limited liability partnership, or
limited liability company business was terminated, dissolved, or
abandoned or in which the closely held corporation or closely held
limited liability company was suspended, whichever period expires
earlier. If a business or its representative files a notice of
termination, dissolution, or abandonment of its business with a state
or local agency other than the board, or if the Secretary of State
or the Franchise Tax Board notifies a closely held corporation or
closely held limited liability company that it is suspended, such
filing or notice shall not constitute actual knowledge by the board
under this section.
   (k) Notwithstanding subdivision (j), when the board mails
acknowledgment to a closely held corporation or closely held limited
liability company that the closely held corporation or closely held
limited liability company has been suspended and the acknowledgment
is mailed within three years of the date on which the board obtained
actual knowledge as described in subdivision (j) of the suspension of
the closely held corporation or closely held limited liability
company, a notice of deficiency determination under this section
shall be mailed, at the latest, within three years after the last day
of the calendar month following the quarterly period following the
revival of that closely held corporation or closely held limited
liability company.
  SEC. 9.  Section 18510 of the Revenue and Taxation Code is
repealed.
  SEC. 10.  Section 18510 is added to the Revenue and Taxation Code,
to read:
   18510.  (a) (1) The Franchise Tax Board shall revise the returns
required to be filed pursuant to this article, Article 2 (commencing
with Section 18601), Section 18633, Section 18633.5, and Article 3
(commencing with Section 23771) of Chapter 4 of Part 11 in a form and
manner approved by the State Board of Equalization, to allow a
person to report and pay qualified use tax in accordance with the
provisions of Section 6452.1.
   (2) Within 10 working days of receiving from the Franchise Tax
Board the returns described in paragraph (1), the State Board of
Equalization shall do either of the following:
   (A) Approve the form and manner of the returns and notify the
Franchise Tax Board of this approval.
   (B) Submit comments to the Franchise Tax Board regarding changes
to the returns that shall be incorporated before the State Board of
Equalization approves the form and manner of the returns.
   (b) Any payments and credits shown on the return, together with
any other credits associated with that person's account, of a person
that elects to report qualified use tax on an acceptable tax return
shall be applied in the following order:
   (1) Taxes imposed under Part 10 (commencing with Section 17001) or
Part 11 (commencing with Section 23001), including penalties and
interest, if any, imposed under this part.
   (2) Qualified use tax as reported on the acceptable tax return, in
accordance with Section 6452.1.
   (c) The Franchise Tax Board shall transfer the qualified use tax
received pursuant to Section 6452.1, and any information the State
Board of Equalization deems necessary for its administration of the
use tax, to the State Board of Equalization within 60 days from the
date the use tax is received or the acceptable tax return is
processed, whichever is later.
   (d) This section shall be operative for returns filed for taxable
years beginning on and after January 1, 2010.
  SEC. 11.  Section 43448.6 is added to the Revenue and Taxation
Code, to read:
   43448.6.  (a) Upon the termination, dissolution, or abandonment of
the business of a corporation, partnership, limited partnership,
limited liability partnership, or limited liability company, any
officer, member, manager, partner, or other person having control or
supervision of, or who is charged with the responsibility for the
filing of returns or the payment of tax or fees under Sections 43051
and 43151 of this part, or who is under a duty to act for the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company in complying with any
requirement of this part pertaining to the tax or fee imposed
pursuant to Sections 43051 and 43151, shall, notwithstanding any
provision in the Corporations Code to the contrary, be personally
liable for any unpaid taxes or fees and interest and penalties on
those taxes or fees, if the officer, member, manager, partner, or
other person willfully fails to pay or to cause to be paid any taxes
or fees due from the corporation, partnership, limited partnership,
limited liability partnership, or limited liability company pursuant
to Sections 43051 and 43151 of this part.
   (b) The officer, member, manager, partner, or other person shall
be liable only for taxes or fees that became due during the period he
or she had the control, supervision, responsibility, or duty to act
for the corporation, partnership, limited partnership, limited
liability partnership, or limited liability company described in
subdivision (a), plus interest and penalties on those taxes or fees.
   (c) Personal liability may be imposed pursuant to this section,
only if the board can establish that the corporation, partnership,
limited partnership, limited liability partnership, or limited
liability company had collected the tax or fee on the hazardous waste
submitted to it, pursuant to Section 25174.1 of the Health and
Safety Code, in the conduct of its business.
   (d) (1) Upon suspension of a closely held corporation or closely
held limited liability company, a corporate officer, shareholder, or
member with control over operations or management of the closely held
corporation or closely held limited liability company during a time
in which the corporation's or limited liability company's powers,
rights, and privileges are suspended or any responsible person who
fails to pay or to cause to be paid any taxes or fees due from the
closely held corporation or closely held limited liability company
during a time in which the corporation's or limited liability company'
s powers, rights, and privileges are suspended shall, notwithstanding
any provision in the Corporations Code to the contrary, be
personally liable under the circumstances set forth below for any
unpaid tax or fee liability of that suspended corporation or limited
liability company incurred during the period of that suspension. The
corporate officer, shareholder, member, or responsible person shall
be liable for the unpaid tax or fees, and interest and penalties on
those taxes or fees not paid, regardless of the basis for the
suspension of the corporation's or limited liability company's
powers, rights, and privileges.
   (2) Notwithstanding paragraph (1), if the closely held corporation
or closely held limited liability company can establish that it has
taken all actions necessary to qualify for revival within 60 days
from the date the suspension was imposed, no corporate officer,
shareholder, member, or responsible person shall be held to be
personally liable for any unpaid tax or fees, interest, or penalty
incurred by the corporation or limited liability company during that
period of suspension.
   (e) Personal liability under subdivision (d) applies only when the
board establishes that, during the period of suspension, the closely
held corporation or closely held limited liability company collected
the tax or fee on the hazardous waste submitted to it, pursuant to
Section 25174.1 of the Health and Safety Code, in the conduct of its
business and failed to remit such tax or fee when due.
   (f) For purposes of subdivisions (d) and (e), all of the following
definitions shall apply:
   (1) "Closely held corporation" means a corporation in which
ownership is concentrated in one individual, one family, or a small
number of individuals and the majority stockholders manage the
business or have delegated or assigned the management to the
corporate officers.
   (2) "Closely held limited liability company" means a limited
liability company in which ownership is concentrated in one
individual, one family, or a small number of individuals and the
majority members manage the business or have delegated or assigned
the management to the company officers.
   (3) "Control over operations or management" means the power to
manage or affect day-to-day operations of the business. For the
purposes of subdivisions (d) and (e), it is rebuttably presumed that
a corporate or company officer has control over operations and
management of the closely held corporation or closely held limited
liability company, respectively.
   (4) (i) "Period of suspension" means that period of time,
beginning on the date the suspension is imposed, during which a
closely held corporation or closely held limited liability company
was suspended for any reason.
   (ii) Notwithstanding clause (i), "period of suspension" does not
mean a period of time of 60 consecutive days or less, beginning on
the day the suspension was imposed, during which a closely held
corporation or closely held limited liability company was suspended,
but only if the corporation or limited liability company has taken
all actions necessary to qualify for revival on or before the 60th
day.
   (5) "Responsible person" means any officer, shareholder, or member
who is charged with the responsibility for the filing of returns or
the payment of tax or fees or who has a duty to act for the closely
held corporation or closely held limited liability company in
complying with any provision of this part, and who derives a direct
financial benefit from the failure to pay the tax or fee liability.
   (g) A suspended corporation or limited liability company shall
remain liable for the unpaid tax or fees, interest, and penalties
incurred during the period in which its corporate or limited
liability company powers, rights, and privileges were suspended
without regard to any personal liability determined under
subdivisions (d), (e), and (f). Payments made pursuant to
subdivisions (d), (e), and (f) shall be applied to the liability of
the corporation or limited liability company.
   (h) For purposes of subdivisions (a), (b), and (c), "willfully
fails to pay or to cause to be paid" means that the failure was the
result of an intentional, conscious, and voluntary course of action.
   (i) Except as provided in subdivision (j), the sum due for the
liability under this section may be collected by determination and
collection in the manner provided in Chapter 3 (commencing with
Section 43151) and Chapter 4 (commencing with Section 43401), as they
pertain to the tax or fee imposed pursuant to Sections 43051 and
43151.
   (j) A notice of deficiency determination under this section shall
be mailed within three years after the last day of the calendar month
following the quarterly period in which the board obtains actual
knowledge, through its audit or compliance activities, or by written
communication by the business or its representative, of the
termination, dissolution, or abandonment of the business of the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company, or of the suspension of
the closely held corporation or closely held limited liability
company, or, within eight years after the last day of the calendar
month following the quarterly period in which the corporation,
partnership, limited partnership, limited liability partnership, or
limited liability company business was terminated, dissolved, or
abandoned or in which the closely held corporation or closely held
limited liability company was suspended, whichever period expires
earlier. If a business or its representative files a notice of
termination, dissolution, or abandonment of its business with a state
or local agency other than the board, or if the Secretary of State
or the Franchise Tax Board notifies a closely held corporation or
closely held limited liability company that it is suspended, such
filing or notice shall not constitute actual knowledge by the board
under this section.
   (k) Notwithstanding subdivision (j), when the board mails
acknowledgment to a closely held corporation or closely held limited
liability company that the closely held corporation or closely held
limited liability company has been suspended and the acknowledgment
is mailed within three years of the date on which the board obtained
actual knowledge as described in subdivision (j) of the suspension of
the closely held corporation or closely held limited liability
company, a notice of deficiency determination under this section
shall be mailed, at the latest, within three years after the last day
of the calendar month following the quarterly period following the
revival of that closely held corporation or closely held limited
liability company.
  SEC. 12.  Section 45609.6 is added to the Revenue and Taxation
Code, to read:
   45609.6.  (a) Upon the termination, dissolution, or abandonment of
the business of a corporation, partnership, limited partnership,
limited liability partnership, or limited liability company, any
officer, member, manager, partner, or other person having control or
supervision of, or who is charged with the responsibility for the
filing of returns or the payment of fees under this part, or who is
under a duty to act for the corporation, partnership, limited
partnership, limited liability partnership, or limited liability
company in complying with any requirement of this part, shall,
notwithstanding any provision in the Corporations Code to the
contrary, be personally liable for any unpaid fees and interest and
penalties on those fees, if the officer, member, manager, partner, or
other person willfully fails to pay or to cause to be paid any fees
due from the corporation, partnership, limited partnership, limited
liability partnership, or limited liability company pursuant to this
part.
   (b) The officer, member, manager, partner, or other person shall
be liable only for fees that became due during the period he or she
had the control, supervision, responsibility, or duty to act for the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company described in subdivision
(a), plus interest and penalties on those fees.
   (c) Personal liability may be imposed pursuant to this section,
only if the board can establish that the corporation, partnership,
limited partnership, limited liability partnership, or limited
liability company had collected the fee on the solid waste disposed
of at each disposal site, pursuant to Section 48000 of the Public
Resources Code, in the conduct of its business.
   (d) (1) Upon suspension of a closely held corporation or closely
held limited liability company, a corporate officer, shareholder, or
member with control over operations or management of the closely held
corporation or closely held limited liability company during a time
in which the corporation's or limited liability company's powers,
rights, and privileges are suspended or any responsible person who
fails to pay or to cause to be paid any fees due from the closely
held corporation or closely held limited liability company during a
time in which the corporation's or limited liability company's
powers, rights, and privileges are suspended shall, notwithstanding
any provision in the Corporations Code to the contrary, be personally
liable under the circumstances set forth below for any unpaid fee
liability of that suspended corporation or limited liability company
incurred during the period of that suspension. The corporate officer,
shareholder, member, or responsible person shall be liable for the
unpaid fees, and interest and penalties on those fees not paid,
regardless of the basis for the suspension of the corporation's or
limited liability company's powers, rights, and privileges.
   (2) Notwithstanding paragraph (1), if the closely held corporation
or closely held limited liability company can establish that it has
taken all actions necessary to qualify for revival within 60 days
from the date the suspension was imposed, no corporate officer,
shareholder, member, or responsible person shall be held to be
personally liable for any unpaid fees, interest, or penalty incurred
by the corporation or limited liability company during that period of
suspension.
   (e) Personal liability under subdivision (d) applies only when the
board establishes that, during the period of suspension, the closely
held corporation or closely held limited liability company collected
the fee on the solid waste disposed of at each disposal site,
pursuant to Section 48000 of the Public Resources Code, in the
conduct of its business and failed to remit such fee when due.
   (f) For purposes of subdivisions (d) and (e), all of the following
definitions shall apply:
   (1) "Closely held corporation" means a corporation in which
ownership is concentrated in one individual, one family, or a small
number of individuals and the majority stockholders manage the
business or have delegated or assigned the management to the
corporate officers.
   (2) "Closely held limited liability company" means a limited
liability company in which ownership is concentrated in one
individual, one family, or a small number of individuals and the
majority members manage the business or have delegated or assigned
the management to the company officers.
   (3) "Control over operations or management" means the power to
manage or affect day-to-day operations of the business. For the
purposes of subdivisions (d) and (e), it is rebuttably presumed that
a corporate or company officer has control over operations and
management of the closely held corporation or closely held limited
liability company, respectively.
   (4) (i) "Period of suspension" means that period of time,
beginning on the date the suspension is imposed, during which a
closely held corporation or closely held limited liability company
was suspended for any reason.
   (ii) Notwithstanding clause (i), "period of suspension" does not
mean a period of time of 60 consecutive days or less, beginning on
the day the suspension was imposed, during which a closely held
corporation or closely held limited liability company was suspended,
but only if the corporation or limited liability company has taken
all actions necessary to qualify for revival on or before the 60th
day.
   (5) "Responsible person" means any officer, shareholder, or member
who is charged with the responsibility for the filing of returns or
the payment of fees or who has a duty to act for the closely held
corporation or closely held limited liability company in complying
with any provision of this part, and who derives a direct financial
benefit from the failure to pay the fee liability.
                                                              (g) A
suspended corporation or limited liability company shall remain
liable for the unpaid fees, interest, and penalties incurred during
the period in which its corporate or limited liability company
powers, rights, and privileges were suspended without regard to any
personal liability determined under subdivisions (d), (e), and (f).
Payments made pursuant to subdivisions (d), (e), and (f) shall be
applied to the liability of the corporation or limited liability
company.
   (h) For purposes of subdivisions (a), (b), and (c), "willfully
fails to pay or to cause to be paid" means that the failure was the
result of an intentional, conscious, and voluntary course of action.
   (i) Except as provided in subdivision (j), the sum due for the
liability under this section may be collected by determination and
collection in the manner provided in Chapter 3 (commencing with
Section 45151) and Chapter 4 (commencing with Section 45401).
   (j) A notice of deficiency determination under this section shall
be mailed within three years after the last day of the calendar month
following the quarterly period in which the board obtains actual
knowledge, through its audit or compliance activities, or by written
communication by the business or its representative, of the
termination, dissolution, or abandonment of the business of the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company, or of the suspension of
the closely held corporation or closely held limited liability
company, or, within eight years after the last day of the calendar
month following the quarterly period in which the corporation,
partnership, limited partnership, limited liability partnership, or
limited liability company business was terminated, dissolved, or
abandoned or in which the closely held corporation or closely held
limited liability company was suspended, whichever period expires
earlier. If a business or its representative files a notice of
termination, dissolution, or abandonment of its business with a state
or local agency other than the board, or if the Secretary of State
or the Franchise Tax Board notifies a closely held corporation or
closely held limited liability company that it is suspended, such
filing or notice shall not constitute actual knowledge by the board
under this section.
   (k) Notwithstanding subdivision (j), when the board mails
acknowledgment to a closely held corporation or closely held limited
liability company that the closely held corporation or closely held
limited liability company has been suspended and the acknowledgment
is mailed within three years of the date on which the board obtained
actual knowledge as described in subdivision (j) of the suspension of
the closely held corporation or closely held limited liability
company, a notice of deficiency determination under this section
shall be mailed, at the latest, within three years after the last day
of the calendar month following the quarterly period following the
revival of that closely held corporation or closely held limited
liability company.
  SEC. 13.  Section 46465 is added to the Revenue and Taxation Code,
to read:
   46465.  (a) Upon the termination, dissolution, or abandonment of
the business of a corporation, partnership, limited partnership,
limited liability partnership, or limited liability company, any
officer, member, manager, partner, or other person having control or
supervision of, or who is charged with the responsibility for the
filing of returns or the payment of fees under this part, or who is
under a duty to act for the corporation, partnership, limited
partnership, limited liability partnership, or limited liability
company in complying with any requirement of this part, shall,
notwithstanding any provision in the Corporations Code to the
contrary, be personally liable for any unpaid fees and interest and
penalties on those fees, if the officer, member, manager, partner, or
other person willfully fails to pay or to cause to be paid any fees
due from the corporation, partnership, limited partnership, limited
liability partnership, or limited liability company pursuant to this
part.
   (b) The officer, member, manager, partner, or other person shall
be liable only for fees that became due during the period he or she
had the control, supervision, responsibility, or duty to act for the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company described in subdivision
(a), plus interest and penalties on those fees.
   (c) Personal liability may be imposed pursuant to this section,
only if the board can establish that the corporation, partnership,
limited partnership, limited liability partnership, or limited
liability company had collected the fees on crude oil and petroleum
products, pursuant to Sections 8670.40 and 8670.48 of the Government
Code, in the conduct of its business.
   (d) (1) Upon suspension of a closely held corporation or closely
held limited liability company, a corporate officer, shareholder, or
member with control over operations or management of the closely held
corporation or closely held limited liability company during a time
in which the corporation's or limited liability company's powers,
rights, and privileges are suspended or any responsible person who
fails to pay or to cause to be paid any fees due from the closely
held corporation or closely held limited liability company during a
time in which the corporation's or limited liability company's
powers, rights, and privileges are suspended shall, notwithstanding
any provision in the Corporations Code to the contrary, be personally
liable under the circumstances set forth below for any unpaid fee
liability of that suspended corporation or limited liability company
incurred during the period of that suspension. The corporate officer,
shareholder, member, or responsible person shall be liable for the
unpaid fees, and interest and penalties on those fees not paid,
regardless of the basis for the suspension of the corporation's or
limited liability company's powers, rights, and privileges.
   (2) Notwithstanding paragraph (1), if the closely held corporation
or closely held limited liability company can establish that it has
taken all actions necessary to qualify for revival within 60 days
from the date the suspension was imposed, no corporate officer,
shareholder, member, or responsible person shall be held to be
personally liable for any unpaid fees, interest, or penalty incurred
by the corporation or limited liability company during that period of
suspension.
   (e) Personal liability under subdivision (d) applies only when the
board establishes that, during the period of suspension, the closely
held corporation or closely held limited liability company collected
the fees on crude oil and petroleum products, pursuant to Sections
8670.40 and 8670.48 of the Government Code, in the conduct of its
business and failed to remit such fee when due.
   (f) For purposes of subdivisions (d) and (e), all of the following
definitions shall apply:
   (1) "Closely held corporation" means a corporation in which
ownership is concentrated in one individual, one family, or a small
number of individuals and the majority stockholders manage the
business or have delegated or assigned the management to the
corporate officers.
   (2) "Closely held limited liability company" means a limited
liability company in which ownership is concentrated in one
individual, one family, or a small number of individuals and the
majority members manage the business or have delegated or assigned
the management to the company officers.
   (3) "Control over operations or management" means the power to
manage or affect day-to-day operations of the business. For the
purposes of subdivisions (d) and (e), it is rebuttably presumed that
a corporate or company officer has control over operations and
management of the closely held corporation or closely held limited
liability company, respectively.
   (4) (i) "Period of suspension" means that period of time,
beginning on the date the suspension is imposed, during which a
closely held corporation or closely held limited liability company
was suspended for any reason.
   (ii) Notwithstanding clause (i), "period of suspension" does not
mean a period of time of 60 consecutive days or less, beginning on
the day the suspension was imposed, during which a closely held
corporation or closely held limited liability company was suspended,
but only if the corporation or limited liability company has taken
all actions necessary to qualify for revival on or before the 60th
day.
   (5) "Responsible person" means any officer, shareholder, or member
who is charged with the responsibility for the filing of returns or
the payment of fees or who has a duty to act for the closely held
corporation or closely held limited liability company in complying
with any provision of this part, and who derives a direct financial
benefit from the failure to pay the fee liability.
   (g) A suspended corporation or limited liability company shall
remain liable for the unpaid fees, interest, and penalties incurred
during the period in which its corporate or limited liability company
powers, rights, and privileges were suspended without regard to any
personal liability determined under subdivisions (d), (e), and (f).
Payments made pursuant to subdivisions (d), (e), and (f) shall be
applied to the liability of the corporation or limited liability
company.
   (h) For purposes of subdivisions (a), (b), and (c), "willfully
fails to pay or to cause to be paid" means that the failure was the
result of an intentional, conscious, and voluntary course of action.
   (i) Except as provided in subdivision (j), the sum due for the
liability under this section may be collected by determination and
collection in the manner provided in Chapter 3 (commencing with
Section 46151) and Chapter 4 (commencing with Section 46401).
   (j) A notice of deficiency determination under this section shall
be mailed within three years after the last day of the calendar month
following the quarterly period in which the board obtains actual
knowledge, through its audit or compliance activities, or by written
communication by the business or its representative, of the
termination, dissolution, or abandonment of the business of the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company, or of the suspension of
the closely held corporation or closely held limited liability
company, or, within eight years after the last day of the calendar
month following the quarterly period in which the corporation,
partnership, limited partnership, limited liability partnership, or
limited liability company business was terminated, dissolved, or
abandoned or in which the closely held corporation or closely held
limited liability company was suspended, whichever period expires
earlier. If a business or its representative files a notice of
termination, dissolution, or abandonment of its business with a state
or local agency other than the board, or if the Secretary of State
or the Franchise Tax Board notifies a closely held corporation or
closely held limited liability company that it is suspended, such
filing or notice shall not constitute actual knowledge by the board
under this section.
   (k) Notwithstanding subdivision (j), when the board mails
acknowledgment to a closely held corporation or closely held limited
liability company that the closely held corporation or closely held
limited liability company has been suspended and the acknowledgment
is mailed within three years of the date on which the board obtained
actual knowledge as described in subdivision (j) of the suspension of
the closely held corporation or closely held limited liability
company, a notice of deficiency determination under this section
shall be mailed, at the latest, within three years after the last day
of the calendar month following the quarterly period following the
revival of that closely held corporation or closely held limited
liability company.
  SEC. 14.  Section 55210 is added to the Revenue and Taxation Code,
to read:
   55210.  (a) Upon the termination, dissolution, or abandonment of
the business of a corporation, partnership, limited partnership,
limited liability partnership, or limited liability company, any
officer, member, manager, partner, or other person having control or
supervision of, or who is charged with the responsibility for the
filing of returns or the payment of fees under Sections 42464,
42464.4, 42885, 42886, and 42886.1 of the Public Resources Code, or
who is under a duty to act for the corporation, partnership, limited
partnership, limited liability partnership, or limited liability
company in complying with any requirement of this part pertaining to
the fees imposed pursuant to Sections 42464, 42464.4, 42885, 42886,
and 42886.1 of the Public Resources Code, shall, notwithstanding any
provision in the Corporations Code to the contrary, be personally
liable for any unpaid fees and interest and penalties on those fees,
if the officer, member, manager, partner, or other person willfully
fails to pay or to cause to be paid any fees due from the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company pursuant to Sections 42464,
42464.4, 42885, 42886, and 42886.1 of the Public Resources Code.
   (b) The officer, member, manager, partner, or other person shall
be liable only for fees that became due during the period he or she
had the control, supervision, responsibility, or duty to act for the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company described in subdivision
(a), plus interest and penalties on those fees.
   (c) Personal liability may be imposed pursuant to this section,
only if the board can establish that the corporation, partnership,
limited partnership, limited liability partnership, or limited
liability company had included the fee in the selling price of, or
added the fee to the selling price of, covered electronic devices,
pursuant to Section 42464 of the Public Resources Code, or new tires,
pursuant to Section 42885 of the Public Resources Code, sold to
consumers in the conduct of its business.
   (d) (1) Upon suspension of a closely held corporation or closely
held limited liability company, a corporate officer, shareholder, or
member with control over operations or management of the closely held
corporation or closely held limited liability company during a time
in which the corporation's or limited liability company's powers,
rights, and privileges are suspended or any responsible person who
fails to pay or to cause to be paid any fees due from the closely
held corporation or closely held limited liability company during a
time in which the corporation's or limited liability company's
powers, rights, and privileges are suspended shall, notwithstanding
any provision in the Corporations Code to the contrary, be personally
liable under the circumstances set forth below for any unpaid fee
liability of that suspended corporation or limited liability company
incurred during the period of that suspension. The corporate officer,
shareholder, member, or responsible person shall be liable for the
unpaid fees, and interest and penalties on those fees not paid,
regardless of the basis for the suspension of the corporation's or
limited liability company's powers, rights, and privileges.
   (2) Notwithstanding paragraph (1), if the closely held corporation
or closely held limited liability company can establish that it has
taken all actions necessary to qualify for revival within 60 days
from the date the suspension was imposed, no corporate officer,
shareholder, member, or responsible person shall be held to be
personally liable for any unpaid fees, interest, or penalty incurred
by the corporation or limited liability company during that period of
suspension.
   (e) Personal liability under subdivision (d) applies only when the
board establishes that, during the period of suspension, the closely
held corporation or closely held limited liability company sold
covered electronic devices, pursuant to Section 42464 of the Public
Resources Code, or new tires, pursuant to Section 42885 of the Public
Resources Code, in the conduct of its business and collected the fee
imposed with respect to the covered electronic devices or new tires
(whether separately itemized or included in the selling price) and
failed to remit such fee when due.
   (f) For purposes of subdivisions (d) and (e), all of the following
definitions shall apply:
   (1) "Closely held corporation" means a corporation in which
ownership is concentrated in one individual, one family, or a small
number of individuals and the majority stockholders manage the
business or have delegated or assigned the management to the
corporate officers.
   (2) "Closely held limited liability company" means a limited
liability company in which ownership is concentrated in one
individual, one family, or a small number of individuals and the
majority members manage the business or have delegated or assigned
the management to the company officers.
   (3) "Control over operations or management" means the power to
manage or affect day-to-day operations of the business. For the
purposes of subdivisions (d) and (e), it is rebuttably presumed that
a corporate or company officer has control over operations and
management of the closely held corporation or closely held limited
liability company, respectively.
   (4) (i) "Period of suspension" means that period of time,
beginning on the date the suspension is imposed, during which a
closely held corporation or closely held limited liability company
was suspended for any reason.
   (ii) Notwithstanding clause (i), "period of suspension" does not
mean a period of time of 60 consecutive days or less, beginning on
the day the suspension was imposed, during which a closely held
corporation or closely held limited liability company was suspended,
but only if the corporation or limited liability company has taken
all actions necessary to qualify for revival on or before the 60th
day.
   (5) "Responsible person" means any officer, shareholder, or member
who is charged with the responsibility for the filing of returns or
the payment of fees or who has a duty to act for the closely held
corporation or closely held limited liability company in complying
with any provision of this part, and who derives a direct financial
benefit from the failure to pay the fee liability.
   (g) A suspended corporation or limited liability company shall
remain liable for the unpaid fees, interest, and penalties incurred
during the period in which its corporate or limited liability company
powers, rights, and privileges were suspended without regard to any
personal liability determined under subdivisions (d), (e), and (f).
Payments made pursuant to subdivisions (d), (e), and (f) shall be
applied to the liability of the corporation or limited liability
company.
   (h) For purposes of subdivisions (a), (b), and (c), "willfully
fails to pay or to cause to be paid" means that the failure was the
result of an intentional, conscious, and voluntary course of action.
   (i) Except as provided in subdivision (j), the sum due for the
liability under this section may be collected by determination and
collection in the manner provided in Sections 42464.2 and 42464.4 or
42886 and 42886.1 of the Public Resources Code and Chapter 3
(commencing with Section 55040) and Chapter 4 (commencing with
Section 55121) of this part, as they pertain to the fees imposed
pursuant to Sections 42464 or 42885 of the Public Resources Code.
   (j) A notice of deficiency determination under this section shall
be mailed within three years after the last day of the calendar month
following the quarterly period in which the board obtains actual
knowledge, through its audit or compliance activities, or by written
communication by the business or its representative, of the
termination, dissolution, or abandonment of the business of the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company, or of the suspension of
the closely held corporation or closely held limited liability
company, or, within eight years after the last day of the calendar
month following the quarterly period in which the corporation,
partnership, limited partnership, limited liability partnership, or
limited liability company, business was terminated, dissolved, or
abandoned or in which the closely held corporation or closely held
limited liability company was suspended, whichever period expires
earlier. If a business or its representative files a notice of
termination, dissolution, or abandonment of its business with a state
or local agency other than the board, or if the Secretary of State
or the Franchise Tax Board notifies a closely held corporation or
closely held limited liability company that it is suspended, such
filing or notice shall not constitute actual knowledge by the board
under this section.
   (k) Notwithstanding subdivision (j), when the board mails
acknowledgment to a closely held corporation or closely held limited
liability company that the closely held corporation or closely held
limited liability company has been suspended and the acknowledgment
is mailed within three years of the date on which the board obtained
actual knowledge as described in subdivision (j) of the suspension of
the closely held corporation or closely held limited liability
company, a notice of deficiency determination under this section
shall be mailed, at the latest, within three years after the last day
of the calendar month following the quarterly period following the
revival of that closely held corporation or closely held limited
liability company.
  SEC. 15.  Section 60494 is added to the Revenue and Taxation Code,
to read:
   60494.  (a) Upon the termination, dissolution, or abandonment of
the business of a corporation, partnership, limited partnership,
limited liability partnership, or limited liability company, any
officer, member, manager, partner, or other person having control or
supervision of, or who is charged with the responsibility for the
filing of returns or the payment of tax due under this part, or who
is under a duty to act for the corporation, partnership, limited
partnership, limited liability partnership, or limited liability
company in complying with any requirement of this part, shall,
notwithstanding any provision in the Corporations Code to the
contrary, be personally liable for any unpaid taxes and interest and
penalties on those taxes, if the officer, member, manager, partner,
or other person willfully fails to pay or to cause to be paid any
taxes due from the corporation, partnership, limited partnership,
limited liability partnership, or limited liability company pursuant
to this part.
   (b) The officer, member, manager, partner, or other person shall
be liable only for taxes that became due during the period he or she
had the control, supervision, responsibility, or duty to act for the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company described in subdivision
(a), plus interest and penalties on those taxes.
   (c) Personal liability may be imposed pursuant to this section,
only if the board can establish that the corporation, partnership,
limited partnership, limited liability partnership, or limited
liability company had included the tax in the selling price of, or
added the tax to the selling price of, diesel fuel sold in the
conduct of its business.
   (d) (1) Upon suspension of a closely held corporation or closely
held limited liability company, a corporate officer, shareholder, or
member with control over operations or management of the closely held
corporation or closely held limited liability company during a time
in which the corporation's or limited liability company's powers,
rights, and privileges are suspended or any responsible person who
fails to pay or to cause to be paid any taxes due from the closely
held corporation or closely held limited liability company during a
time in which the corporation's or limited liability company's
powers, rights, and privileges are suspended shall, notwithstanding
any provision in the Corporations Code to the contrary, be personally
liable under the circumstances set forth below for any unpaid tax
liability of that suspended corporation or limited liability company
incurred during the period of that suspension. The corporate officer,
shareholder, member, or responsible person shall be liable for the
unpaid tax, and interest and penalties on those taxes not paid,
regardless of the basis for the suspension of the corporation's or
limited liability company's powers, rights, and privileges.
   (2) Notwithstanding paragraph (1), if the closely held corporation
or closely held limited liability company can establish that it has
taken all actions necessary to qualify for revival within 60 days
from the date the suspension was imposed, no corporate officer,
shareholder, member, or responsible person shall be held to be
personally liable for any unpaid tax, interest, or penalty incurred
by the corporation or limited liability company during that period of
suspension.
   (e) Personal liability under subdivision (d) applies only when the
board establishes that, during the period of suspension, the closely
held corporation or closely held limited liability company sold
diesel fuel in the conduct of its business and collected tax on the
selling price (whether separately itemized or included in the selling
price) and failed to remit such tax when due.
   (f) For purposes of subdivisions (d) and (e), all of the following
definitions shall apply:
   (1) "Closely held corporation" means a corporation in which
ownership is concentrated in one individual, one family, or a small
number of individuals and the majority stockholders manage the
business or have delegated or assigned the management to the
corporate officers.
   (2) "Closely held limited liability company" means a limited
liability company in which ownership is concentrated in one
individual, one family, or a small number of individuals and the
majority members manage the business or have delegated or assigned
the management to the company officers.
   (3) "Control over operations or management" means the power to
manage or affect day-to-day operations of the business. For the
purposes of subdivisions (d) and (e), it is rebuttably presumed that
a corporate or company officer has control over operations and
management of the closely held corporation or closely held limited
liability company,
respectively.
   (4) (i) "Period of suspension" means that period of time,
beginning on the date the suspension is imposed, during which a
closely held corporation or closely held limited liability company
was suspended for any reason.
   (ii) Notwithstanding clause (i), "period of suspension" does not
mean a period of time of 60 consecutive days or less, beginning on
the day the suspension was imposed, during which a closely held
corporation or closely held limited liability company was suspended,
but only if the corporation or limited liability company has taken
all actions necessary to qualify for revival on or before the 60th
day.
   (5) "Responsible person" means any officer, shareholder, or member
who is charged with the responsibility for the filing of returns or
the payment of tax or who has a duty to act for the closely held
corporation or closely held limited liability company in complying
with any provision of this part, and who derives a direct financial
benefit from the failure to pay the tax liability.
   (g) A suspended corporation or limited liability company shall
remain liable for the unpaid tax, interest, and penalties incurred
during the period in which its corporate or limited liability company
powers, rights, and privileges were suspended without regard to any
personal liability determined under subdivisions (d), (e), and (f).
Payments made pursuant to subdivisions (d), (e), and (f) shall be
applied to the liability of the corporation or limited liability
company.
   (h) For purposes of subdivisions (a), (b), and (c), "willfully
fails to pay or to cause to be paid" means that the failure was the
result of an intentional, conscious, and voluntary course of action.
   (i) Except as provided in subdivision (j), the sum due for the
liability under this section may be collected by determination and
collection in the manner provided in Chapter 6 (commencing with
Section 60201) and Chapter 7 (commencing with Section 60401).
   (j) A notice of deficiency determination under this section shall
be mailed within three years after the last day of the calendar month
following the quarterly period in which the board obtains actual
knowledge, through its audit or compliance activities, or by written
communication by the business or its representative, of the
termination, dissolution, or abandonment of the business of the
corporation, partnership, limited partnership, limited liability
partnership, or limited liability company, or of the suspension of
the closely held corporation or closely held limited liability
company, or, within eight years after the last day of the calendar
month following the quarterly period in which the corporation,
partnership, limited partnership, limited liability partnership, or
limited liability company business was terminated, dissolved, or
abandoned or in which the closely held corporation or closely held
limited liability company was suspended, whichever period expires
earlier. If a business or its representative files a notice of
termination, dissolution, or abandonment of its business with a state
or local agency other than the board, or if the Secretary of State
or the Franchise Tax Board notifies a closely held corporation or
closely held limited liability company that it is suspended, such
filing or notice shall not constitute actual knowledge by the board
under this section.
   (k) Notwithstanding subdivision (j), when the board mails
acknowledgment to a closely held corporation or closely held limited
liability company that the closely held corporation or closely held
limited liability company has been suspended and the acknowledgment
is mailed within three years of the date on which the board obtained
actual knowledge as described in subdivision (j) of the suspension of
the closely held corporation or closely held limited liability
company, a notice of deficiency determination under this section
shall be mailed, at the latest, within three years after the last day
of the calendar month following the quarterly period following the
revival of that closely held corporation or closely held limited
liability company.
  SEC. 16.  Section 1088.5 of the Unemployment Insurance Code is
amended to read:
   1088.5.  (a) In addition to information reported in accordance
with Section 1088, effective July 1, 1998, each employer shall file,
with the department, the information provided for in subdivision (b)
on new employees.
   (b) Each employer shall report the hiring of any employee who
works in this state and to whom the employer anticipates paying
wages.
   (c) (1) This section shall not apply to any department, agency, or
instrumentality of the United States.
   (2) State agency employers shall not be required to report
employees performing intelligence or counterintelligence functions,
if the head of the agency has determined that reporting pursuant to
this section would endanger the safety of the employee or compromise
an ongoing investigation or intelligence mission.
   (d) (1) Employers shall submit a report as described in paragraph
(4) within 20 days of hiring any employee whom the employer is
required to report pursuant to this section.
   (2) Notwithstanding subdivision (a), employers transmitting
reports magnetically or electronically shall submit the report by two
monthly transmissions not less than 12 days no more than 16 days
apart.
   (3) For purposes of this section, an employer that has employees
in two or more states and that transmits reports magnetically or
electronically may designate one state in which the employer has
employees to which the employer will transmit the report described in
paragraph (4). Any employer that transmits reports pursuant to this
paragraph shall notify the Secretary of Health and Human Services in
writing as to which state the employer designates for the purpose of
sending reports.
   (4) The report shall contain the following:
   (A) The name, address, and social security number of the
employees.
   (B) The employer's name, address, state employer identification
number (if one has been issued), and identifying number assigned to
the employer under Section 6109 of the Internal Revenue Code of 1986.

   (C) The first date the employee worked.
   (5) Employers may report pursuant to this section by submitting a
copy of the employee's W-4 form, a form provided by the department,
or any other hiring document transmitted by first-class mail,
magnetically, or electronically.
   (e) For each failure to report the hiring of an employee, as
required and within the time required by this section, unless the
failure is due to good cause, the department may assess a penalty of
twenty-four dollars ($24), or four hundred ninety dollars ($490) if
the failure is the result of conspiracy between the employer and
employee not to supply the required report or to supply a false or
incomplete report.
   (f) Information collected pursuant to this section may be used for
the following purposes:
   (1) Administration of this code.
   (2) Locating individuals for purposes of establishing paternity
and establishing, modifying, and enforcing child support obligations.

   (3) Administration of employment security and workers'
compensation programs.
   (4) Providing employer or employee information to the Franchise
Tax Board and the State Board of Equalization for the purpose of tax
or fee enforcement.
   (5) Verification of eligibility of applicants for, or recipients
of, the public assistance programs listed in Section 1320b-7(b) of
Title 42 of the United States Code.
   (g) For purposes of this section, "employer" includes a labor
union hiring hall.
   (h) This section shall become operative on July 1, 1998.